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7 January 2025
Michigan Farmer to Pay $87,500 to Settle Allegations He Wrongfully Obtained Crop Insurance and Farm BenefitsRead the Press Release
GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that David G. Zelmer of Niles, Michigan, has agreed to pay $87,500 to resolve allegations that he violated the False Claims Act by obtaining federal crop insurance coverage and Farm Service Agency (FSA) benefit payments for crops he did not farm.
“Michigan farmers depend on federal programs to provide economic security,” said U.S. Attorney Mark Totten. “But the wellbeing of these programs depends on farmers telling the truth and playing by the rules. My office is committed to working with our law enforcement partners to investigate allegations of false claims to these federal programs.”
The United States alleges that Zelmer owned and farmed land in Berrien County but entered into a lease agreement with another farmer in 2015 in which he leased certain tracts of that land to the other individual to farm. This lease agreement continued through 2017. The United States alleges that, despite leasing those farm tracts to the other farmer, Zelmer certified that he was the sole producer of the crops on those farm tracts when seeking benefit payments from the FSA in crop years 2015, 2016, and 2017, when he was not. The United States further alleges that Zelmer certified that he was the sole producer of the crops on those same farm tracts when obtaining federal crop insurance coverage from the Federal Crop Insurance Corporation, when he was not.
“The U.S. Department of Agriculture, Office of Inspector General is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act,” said Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General. “Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from which they were intended. We are thankful to the U.S. Attorney’s Office and USDA’s Risk Management Agency for their partnership on this joint investigation, and OIG will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.”
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and USDA-OIG and USDA’s Risk Management Agency.
Assistant United States Attorney Andrew J. Hull prosecuted this case.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Massachusetts Man Sentenced to 46 Months in Federal Prison for Role in Massachusetts-Based Drug Trafficking OrganizationRead the Press Release
CONCORD – A Massachusetts man was sentenced today in federal court for his role in an organization trafficking drugs into New Hampshire, U.S. Attorney Jane E. Young announces.
Osvaldo Soto Jimenez, age 30, was sentenced by U.S. District Court Judge Samantha Elliott to 46 months in federal prison and 3 years of supervised release. In August 2024, Soto Jimenez pleaded guilty to one count of conspiracy to distribute controlled substances. He is the eighth of 21 charged defendants in the drug trafficking organization to be sentenced.
“As the manager of the dispatch operation that arranged the purchases and deliveries of fentanyl and cocaine, the defendant enabled this organization to traffic dangerous narcotics from Massachusetts and into our communities,” said U.S. Attorney Jane E. Young. “The defendant will now face the consequences of his criminal conduct by serving 46 months in federal prison. Other drug traffickers should be on notice that they will face the same consequences if they dare to traffic poison into our communities.”
“Osvaldo Soto Jimenez took part in a conspiracy led by his father that saw vast amounts of deadly fentanyl and cocaine brought here to Manchester, with no regard for the harm he caused in this community,” said Jodi Cohen, Special Agent in Charge of the FBI’s Boston Division. “Today’s sentence is a win for the FBI and all our partners as we work together to get dangerous drugs and criminals off the street.”
“Fentanyl and cocaine are causing tremendous damage to our communities in New Hampshire,” said Acting Special Agent in Charge Stephen Belleau, New England Field Division. “Those who distribute these drugs are endangering the safety of the citizens of the Granite State. The DEA will continue to work each day alongside our law enforcement partners to identify and investigate those who are responsible for distributing deadly drugs.”
The defendant was part of a Massachusetts-based drug trafficking organization that was distributing significant quantities of fentanyl and cocaine in New Hampshire, primarily in Manchester. The organization used a dispatch operation to sell drugs. Customers called a phone line to purchase narcotics, where they would speak to the defendant. The defendant would then send a runner to conduct the drug sale at an arranged meeting location. The defendant arranged runners to conduct these drug sales on three occasions and personally delivered drugs himself on two other occasions. A search of the defendant’s shared Massachusetts-based residence yielded approximately $15,000 and drug ledgers in his bedroom, and firearms in a common area. A search of a vehicle used by the defendant yielded roughly 94 grams of fentanyl and 196 grams of crack cocaine packaged in small baggies for distribution.
The Federal Bureau of Investigation and the Drug Enforcement Administration led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande and Jarad Hodes are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Marketers and Healthcare Providers in Texas, Virginia and South Carolina Agree to Pay over $1.1M to Settle Laboratory Kickback AllegationsRead the Press Release
Two laboratory marketers — Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; three physicians — Dr. Abbesalom Ghermay, of Plano, Texas; Dr. Daniel Theesfeld, of Longview, Texas; and Dr. James Cook, of Richmond, Virginia; and medical practice owner Troy Belton, of Columbia, South Carolina, and associated entities, have agreed to pay a total of $1,137,914 to resolve False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute. The parties have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged schemes.
“Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia and Texas.
Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey; Dallas, Texas; and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the health care providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for 10 years.
John Bello and his marketing company, RiteRx4U LLC, agreed to pay $140,000 to resolve allegations that, from February 1, 2019, through February 28, 2021, they paid Dr. James Cook, of Richmond, Virginia, thousands of dollars in kickbacks to induce Dr. Cook to order testing from two clinical laboratories in Kenilworth, New Jersey, and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Dr. Cook’s referrals to these laboratories.
The Healthcare Provider Settlements
The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia and Texas.
Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Dr. James Cook and his medical practice, Family Medical Centers, P.C., agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey, and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories.
Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC, agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Advantage Medical Group, an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton, agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey; Dallas, Texas; and Denton, Texas.
“Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.”
“Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlements.
The United States has recovered over $53 million relating to conduct involving MSO kickbacks to health care providers, including False Claims Act settlements with 48 physicians. The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only. There has been no determination of liability.
View the Naghshbandi Settlement here.
View the Bello Settlement here.
View the Cook Settlement here.
View the AMG Settlement here.
View the Theesfeld Settlement here.
View the Ghermay Settlement here.
Marketers and Healthcare Providers in Texas, Virginia, and South Carolina Agree to Pay over $1.1 Million to Settle Laboratory Kickback AllegationsRead the Press Release
NEWARK, N.J. – Two laboratory marketers, three healthcare providers, an outpatient clinic, and associated entities have agreed to pay a $1.14 million to resolve violations of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today.
Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; and three physicians – Abbesalom Ghermay, of Plano, Texas, Daniel Theesfeld, of Longview, Texas, and James Cook, of Richmond, Virginia – and medical practice owner Troy Belton, of Columbia, South Carolina, agreed to settle False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute.
“Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions. Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.”
U.S. Attorney Philip R. Sellinger
“Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division said. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.”
“Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act.
The Marketer Settlements
The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia, and Texas.
Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey, Dallas, Texas, and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the healthcare providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for ten years.
John Bello and his marketing company, RiteRx4U LLC, agreed to pay $140,000 to resolve allegations that, from February 1, 2019 through February 28, 2021, they paid Dr. James Cook, of Richmond. Virginia, thousands of dollars in kickbacks to induce Cook to order testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Cook’s referrals to these laboratories.
The Healthcare Provider Settlements
The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia, and Texas.
Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Dr. James Cook and his medical practice, Family Medical Centers, P.C., agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories.
Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC, agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas.
Advantage Medical Group, an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton, agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey, Dallas, Texas, and Denton, Texas.
The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes.
The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
naghshbandi.settlementagreement.pdf ghermay.settlementagreement.pdf cook.settlementagreement.pdf bello.settlementagreement.pdf amg.settlementagreement.pdf theesfeld.settlementagreement.pdfManchester Man Pleads Guilty to the Illegal Possession of AmmunitionRead the Press Release
CONCORD – A Manchester man pleaded guilty today in federal court to the illegal possession of ammunition, U.S. Attorney Jane E. Young announces.
Eric Edmondson, 46, pleaded guilty to the possession of ammunition by a prohibited person. U.S. District Court Judge Joseph Laplante scheduled sentencing for April 17, 2025.
On September 11, 2023, a motorist called 911 to report a potential road rage incident involving a driver, of a small black sedan with temporary NH plates, who displayed an apparent firearm. Law enforcement responded, identified the suspect vehicle, and initiated a stop along Route 101. The defendant was driving the vehicle and was arrested on an outstanding state arrest warrant. A subsequent state search warrant yielded a privately manufactured firearm and five rounds of 9 mm ammunition in the defendant’s vehicle. The defendant, a felon, is prohibited from owning or possessing ammunition.
The charging statute provides a sentence of no greater than 15 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The New Hampshire State Police and the Bureau of Alcohol, Tobacco, Firearms & Explosives led the investigation. Assistant U.S. Attorney Charles L. Rombeau is prosecuting the case.
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Local trafficker sentenced for having firearm while dealing cocaine and marijuanaRead the Press Release
McALLEN, Texas – A 28-year-old Donna resident has been sentenced for utilizing a firearm in furtherance of drug trafficking activity, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Segura Jr. pleaded guilty Oct. 1, 2024.
U.S. District Judge Drew B. Tipton has now ordered Segura to serve 60 months in federal prison followed by 5 years of supervised release,
On July 24, 2024, authorities conducted a search warrant at Segura’s residence. At that time, they discovered marijuana, over 400 grams of cocaine and body armor within the home. Authorities also found a firearm in Segura’s bedroom next to the body armor. Segura admitted he was in possession of the firearm to protect himself during his drug trafficking activity.
Segura will remain in custody pending transfer to a Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Alamo Police Department conducted the joint investigation.
Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Laconia Man Pleads Guilty to Distributing Methamphetamine and Possessing a Firearm as a Prohibited PersonRead the Press Release
CONCORD – A Laconia man pleaded guilty in federal court in connection with his distribution of methamphetamine and his possession of a firearm as a prohibited person, Attorney Jane E. Young announces.
Steven Ridgeway, 50, pleaded guilty to two counts of distribution of methamphetamine and one count of possession of a firearm by a prohibited person. U.S. District Court Judge Joseph N. Laplante scheduled sentencing for April 17, 2025.
A confidential informant purchased a total of approximately 165 grams of methamphetamine from Ridgeway on July 5 and July 24, 2023. During the July 24, 2023, drug sale, Ridgeway also sold the confidential informant a pistol. Ridgeway, a felon, is prohibited from owning or possessing firearms and ammunition.
The charges of distribution of methamphetamine provide a maximum prison term of 20 years, a maximum fine of $1,000,000, and at least 3 years of supervised release. The charge of possession of a firearm by a prohibited person provides a maximum prison term of 15 years, a maximum fine of $250,000, and not more than 3 years of supervised release. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation’s Major Offender Task Force led the investigation. The Major Offender Task Force is comprised of federal agents partnered with law enforcement officers from police departments state-wide. Valuable assistance was provided by the New Hampshire Attorney General’s Drug Task Force, the New Hampshire State Police, and the Laconia Police Department. Assistant United States Attorney Heather A. Cherniske prosecuted the case.
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Justice Department Sues Six Large Landlords for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
Attorneys General of Illinois and Massachusetts Join Suit Against RealPage and Apartment Landlords, Bringing Total State and Commonwealth Co-Plaintiffs to 10
The Justice Department, together with its state co-plaintiffs, filed an amended complaint today in its antitrust lawsuit against RealPage, to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters. Together, these landlords operate more than 1.3 million units in 43 states and the District of Columbia. The Attorneys General of Illinois and Massachusetts joined the amended complaint as co-plaintiffs, increasing the total number of State and Commonwealth co-plaintiffs to 10. At the same time, the Justice Department filed a proposed consent decree with landlord Cortland that requires it to cooperate with the government, stop using its competitors’ sensitive data to set rents and stop using the same algorithm as its competitors without a corporate monitor.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics. In one example, Greystar supplied Camden with information not only about very recent renewal rates, but also its approach to pricing for the upcoming quarter, its acceptance of RealPage’s pricing recommendations, use of concessions and competitively sensitive information about occupancy. Likewise, executives at Camden and LivCor communicated over the course of months about their pricing strategies, including plans for certain price increases.
- Regularly conducting “call arounds.” During these discussions, euphemistically referred to as “market surveys,” property managers called or emailed competitors to share, and sometimes discuss, competitively sensitive information about rents, occupancy, pricing strategies and discounts.
- Participating in “user groups” hosted by RealPage. For instance, landlords discussed via user groups how to modify the software’s pricing methodology, as well as their own pricing strategies. In one example, LivCor and Willow Bridge executives participated in a user group discussion of plans for renewal increases, concessions and acceptance rates of RealPage rent recommendations.
- Sharing information with competitors about parameters in RealPage’s software. As an example, at the request of Willow Bridge’s director of revenue management, Greystar’s director of revenue management supplied its standard auto-accept parameters for RealPage’s software, including the daily and weekly limits and the days of the week for which Greystar used “auto-accept.”
The Justice Department also announced a proposed consent decree that, if approved by the court, would resolve its claims against Cortland, a landlord that manages over 80,000 rental units in 13 states. Under the proposed consent decree, Cortland would cooperate in the Justice Department’s investigation and litigation and be barred from, among other things:
- Using competitors’ competitively sensitive data to train or run any pricing model;
- Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor; and
- Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management.
Proposed Final Judgment - US et al. v. RealPage Inc.pdf Amended Complaint - U.S. et al. v. RealPage Inc..pdfJustice Department Sues Six Large Landlords for Algorithmic Pricing Scheme that Harms Millions of American RentersRead the Press Release
Attorneys General of Illinois and Massachusetts Join Suit Against RealPage and Apartment Landlords, Bringing Total State and Commonwealth Co-Plaintiffs to 10
WASHINGTON — The Justice Department, together with its state co-plaintiffs, filed an amended complaint today in its antitrust lawsuit against RealPage, to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters.
The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters. Together, these landlords operate more than 1.3 million units in 43 states and the District of Columbia. The Attorneys General of Illinois and Massachusetts joined the amended complaint as co-plaintiffs, increasing the total number of State and Commonwealth co-plaintiffs to 10. At the same time, the Justice Department filed a proposed consent decree with landlord Cortland that requires it to cooperate with the government, stop using its competitors’ sensitive data to set rents and stop using the same algorithm as its competitors without a corporate monitor.
“While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.”
The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including:
- Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics. In one example, Greystar supplied Camden with information not only about very recent renewal rates, but also its approach to pricing for the upcoming quarter, its acceptance of RealPage’s pricing recommendations, use of concessions and competitively sensitive information about occupancy. Likewise, executives at Camden and LivCor communicated over the course
- Regularly conducting “call arounds.” During these discussions, euphemistically referred to as “market surveys,” property managers called or emailed competitors to share, and sometimes discuss, competitively sensitive information about rents, occupancy, pricing strategies and discounts.
- Participating in “user groups” hosted by RealPage. For instance, landlords discussed via user groups how to modify the software’s pricing methodology, as well as their own pricing strategies. In one example, LivCor and Willow Bridge executives participated in a user group discussion of plans for renewal increases, concessions and acceptance rates of RealPage rent recommendations.
- Sharing information with competitors about parameters in RealPage’s software. As an example, at the request of Willow Bridge’s director of revenue management, Greystar’s director of revenue management supplied its standard auto-accept parameters for RealPage’s software, including the daily and weekly limits and the days of the week for which Greystar used “auto-accept.”
The Justice Department also announced a proposed consent decree that, if approved by the court, would resolve its claims against Cortland, a landlord that manages over 80,000 rental units in 13 states. Under the proposed consent decree, Cortland would cooperate in the Justice Department’s investigation and litigation and be barred from, among other things:
- Using competitors’ competitively sensitive data to train or run any pricing model;
- Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor; and
- Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations.
As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington.
Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management.
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Justice Department Secures Third Settlement with a Non-Depository Mortgage Company to Resolve Redlining Claims in MiamiRead the Press Release
MIAMI — The Justice Department announced today that The Mortgage Firm, Inc. (The Mortgage Firm) agreed to pay $1.75 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in the Miami-Fort Lauderdale-West Palm Beach, Florida, Metropolitan Statistical Area (Miami MSA).
Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
“Our efforts to protect everyone’s civil rights is never ending,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The unlawful practice of lending discrimination is not merely a thing of the past, but persists in this country, to include within the Southern District of Florida. Our office is fully committed in ensuring that every person living in the Southern District of Florida, to include residents in predominantly Black and Hispanic neighborhoods, can achieve the American dream of building wealth through home ownership. We will continue to work with the Civil Rights Division to hold those lenders accountable who engage in unlawful discriminatory practices in our diverse district.”
“Non-depository institutions, including mortgage companies, are now originating a higher share of loans to homebuyers than banks and credit unions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With this trend comes the obligation to ensure full compliance with our federal laws that prohibit redlining. By denying predominantly Black and Hispanic neighborhoods in the greater Miami area access to credit, The Mortgage Firm violated the law, denied communities equal access to credit and exacerbated the racial wealth gap. This settlement will provide impacted communities in Miami with expanded access to homeownership, and makes clear that no matter the type of financial institution — bank, credit union or mortgage company — the department is committed to rooting out redlining across the country.”
The Mortgage Firm is a non-depository mortgage company headquartered in Altamonte Springs, Florida. The complaint, filed today in the Southern District of Florida, alleges that The Mortgage Firm violated the Fair Housing Act and Equal Credit Opportunity Act by failing to provide equal access to mortgage lending services to majority- and high-Black and Hispanic neighborhoods in the Miami MSA and discouraging people seeking credit in those communities from obtaining home loans. The Mortgage Firm located its offices in predominantly white neighborhoods and took inadequate steps to market to and develop referral networks within Black and Hispanic neighborhoods. As a result, The Mortgage Firm generated mortgage loan applications in predominantly Black and Hispanic neighborhoods in the Miami MSA at rates far below peer institutions.
The proposed consent order, which awaits court approval, would require The Mortgage Firm to:
Conduct a Community Credit Needs Assessment to identify the credit needs of residents of predominantly Black and Hispanic neighborhoods in the Miami MSA and to consider the results of that assessment to develop future loan programs, marketing campaigns and outreach efforts.
Provide $1.75 million for a loan subsidy program to offer affordable home purchase, refinance and home improvement loans in predominantly Black and Hispanic neighborhoods in the Miami MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance or payment of initial mortgage insurance premiums.
Conduct a detailed assessment of its fair lending program in the Miami MSA, specifically as it relates to fair lending obligations and lending in predominantly Black and Hispanic neighborhoods.
Enhance its fair lending training and staffing to ensure equal access to credit is provided across The Mortgage Firm’s market area, including by maintaining a Director of Community Lending.
Expand its outreach and advertising efforts by maintaining an office location in a majority-Black and Hispanic neighborhood in Miami-Dade County, translating its website into Spanish and requiring all of its loan officers in the Miami MSA to engage in marketing to majority-Black and Hispanic neighborhoods.
Bolster connections with the community and build referral sources in predominately Black and Hispanic neighborhoods by providing four outreach events per year, six financial education seminars per year and partnering with one or more community partner to increase access to credit in predominately Black and Hispanic neighborhoods in the Miami MSA.
The Justice Department opened this investigation into The Mortgage Firm’s lending practices after receiving a referral from the Consumer Financial Protection Bureau. This settlement marks the Justice Department’s 16th redlining settlement under the Combating Redlining Initiative, and the third non-depository institution to reach a redlining settlement with the department. Non-depository lenders, which are not traditional banks and do not provide typical banking services, engage in mortgage lending and now make the majority of mortgages in this country. Under the Combating Redlining Initiative, the department has secured over $153 million in relief for communities of color that have been the victims of lending discrimination. This historic amount of relief is expected to generate over $1 billion in investment to address unequal access to credit in communities of color across the country.
A copy of the complaint and proposed consent order, as well as information about the Justice Department’s fair lending enforcement work, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
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Justice Department Secures Third Settlement with a Non-Depository Mortgage Company to Resolve Redlining Claims in MiamiRead the Press Release
The Justice Department announced today that The Mortgage Firm, Inc. (The Mortgage Firm) agreed to pay $1.75 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in the Miami-Fort Lauderdale-West Palm Beach, Florida, Metropolitan Statistical Area (Miami MSA).
Redlining is an illegal practice by which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.
“Non-depository institutions, including mortgage companies, are now originating a higher share of loans to homebuyers than banks and credit unions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “With this trend comes the obligation to ensure full compliance with our federal laws that prohibit redlining. By denying predominantly Black and Hispanic neighborhoods in the greater Miami area access to credit, The Mortgage Firm violated the law, denied communities equal access to credit and exacerbated the racial wealth gap. This settlement will provide impacted communities in Miami with expanded access to homeownership, and makes clear that no matter the type of financial institution — bank, credit union or mortgage company — the department is committed to rooting out redlining across the country.”
“Our efforts to protect everyone’s civil rights is never ending,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The unlawful practice of lending discrimination is not merely a thing of the past, but persists in this country, to include within the Southern District of Florida. Our office is fully committed in ensuring that every person living in the Southern District of Florida, to include residents in predominantly Black and Hispanic neighborhoods, can achieve the American dream of building wealth through home ownership. We will continue to work with the Civil Rights Division to hold those lenders accountable who engage in unlawful discriminatory practices in our diverse district.”
The Mortgage Firm is a non-depository mortgage company headquartered in Altamonte Springs, Florida. The complaint, filed today in the Southern District of Florida, alleges that The Mortgage Firm violated the Fair Housing Act and Equal Credit Opportunity Act by failing to provide equal access to mortgage lending services to majority- and high-Black and Hispanic neighborhoods in the Miami MSA and discouraging people seeking credit in those communities from obtaining home loans. The Mortgage Firm located its offices in predominantly white neighborhoods and took inadequate steps to market to and develop referral networks within Black and Hispanic neighborhoods. As a result, The Mortgage Firm generated mortgage loan applications in predominantly Black and Hispanic neighborhoods in the Miami MSA at rates far below peer institutions.
The proposed consent order, which awaits court approval, would require The Mortgage Firm to:
- Conduct a Community Credit Needs Assessment to identify the credit needs of residents of predominantly Black and Hispanic neighborhoods in the Miami MSA and to consider the results of that assessment to develop future loan programs, marketing campaigns and outreach efforts.
- Provide $1.75 million for a loan subsidy program to offer affordable home purchase, refinance and home improvement loans in predominantly Black and Hispanic neighborhoods in the Miami MSA. The program may provide lower interest rates, down payment assistance, closing cost assistance or payment of initial mortgage insurance premiums.
- Conduct a detailed assessment of its fair lending program in the Miami MSA, specifically as it relates to fair lending obligations and lending in predominantly Black and Hispanic neighborhoods.
- Enhance its fair lending training and staffing to ensure equal access to credit is provided across The Mortgage Firm’s market area, including by maintaining a Director of Community Lending.
- Expand its outreach and advertising efforts by maintaining an office location in a majority-Black and Hispanic neighborhood in Miami-Dade County, translating its website into Spanish and requiring all of its loan officers in the Miami MSA to engage in marketing to majority-Black and Hispanic neighborhoods.
- Bolster connections with the community and build referral sources in predominately Black and Hispanic neighborhoods by providing four outreach events per year, six financial education seminars per year and partnering with one or more community partner to increase access to credit in predominately Black and Hispanic neighborhoods in the Miami MSA.
The Justice Department opened this investigation into The Mortgage Firm’s lending practices after receiving a referral from the Consumer Financial Protection Bureau. This settlement marks the Justice Department’s 16th redlining settlement under the Combating Redlining Initiative, and the third non-depository institution to reach a redlining settlement with the department. Non-depository lenders, which are not traditional banks and do not provide typical banking services, engage in mortgage lending and now make the majority of mortgages in this country. Under the Combating Redlining Initiative, the department has secured over $153 million in relief for communities of color that have been the victims of lending discrimination. This historic amount of relief is expected to generate over $1 billion in investment to address unequal access to credit in communities of color across the country.
A copy of the complaint and proposed consent order, as well as information about the Justice Department’s fair lending enforcement work, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Justice Department Secures Forfeiture of Two Miami Condos for Violations of Russia-Related U.S. SanctionsRead the Press Release
MIAMI – The Department of Justice announced today that, pursuant to a court-ordered default judgment and final order of forfeiture entered on Jan. 7, has secured the forfeiture of two luxury Miami condominiums which were maintained, transferred, and leased in violation of U.S. sanctions against Russian national Viktor Perevalov. The forfeited properties have a combined value of approximately $1.8 million.
The judgment is the result of a civil forfeiture complaint filed by the United States in February 2024 seeking the forfeiture of the properties.
“Today’s successful forfeiture once again demonstrates that the attempt to hide assets behind nominees and shell companies is a risky short-term game with real long-term costs,” said Co-Director Michael Khoo of the Justice Department’s Task Force KleptoCapture. “The prosecutors and agents who investigated and brought this case are the proof that the United States has the people, the tools, and the will to vigorously enforce our nation’s sanctions programs.”
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On Jan. 26, 2018, pursuant to Executive Order 13685, the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea. OFAC added Perevalov, Abramov, and VAD, AO to the Specially Designated Nationals (SDN) and Blocked Persons List. OFAC never issued a license which was required for anyone to transact with, or on behalf of, Perevalov and Abramov. Perevalov was re-designated by OFAC on Dec. 18, 2024, pursuant to E.O. 14024 for operating in the construction sector of the Russian economy.
From in or around January 2018 through in or around March 2023, the condominiums were maintained, transferred, and leased in violation of the International Emergency Economic Powers Act (IEEPA). Specifically, on or about June 14, 2018, a Miami real estate agent retained to manage the properties transferred the two condominiums owned by Perevalov to a limited liability company set up to obfuscate Perevalov’s interest in the properties. Following the transfer, the properties continued to be leased, generating proceeds used to maintain them.
The FBI Miami Field Office investigated the case with assistance from the Sunny Isles Beach Police Department.
Assistant U.S. Attorneys Joshua Paster, Marx P. Calderón, and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the National Security Division’s Counterintelligence and Export Control Section prosecuted the civil action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
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Justice Department Secures Forfeiture of Two Miami Condos for Violations of Russia-Related U.S. SanctionsRead the Press Release
The Department of Justice announced today that, pursuant to a court-ordered default judgment and final order of forfeiture entered on Jan. 7, it has secured the forfeiture of two luxury Miami condominiums that were maintained, transferred, and leased in violation of U.S. sanctions against Russian national Viktor Perevalov. The forfeited properties have a combined value of approximately $1.8 million.
The judgment is the result of a civil forfeiture complaint filed by the United States in February 2024 seeking the forfeiture of the properties.
“Today’s successful forfeiture once again demonstrates that the attempt to hide assets behind nominees and shell companies is a risky short-term game with real long-term costs,” said Co-Director Michael Khoo of the Justice Department’s Task Force KleptoCapture. “The prosecutors and agents who investigated and brought this case are the proof that the United States has the people, the tools, and the will to vigorously enforce our nation’s sanctions programs.”
As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On Jan. 26, 2018, pursuant to Executive Order 13685, the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea. OFAC added Perevalov, Abramov, and VAD, AO to the Specially Designated Nationals (SDN) and Blocked Persons List. OFAC never issued a license, which was required for anyone to transact with, or on behalf of, Perevalov and Abramov. Perevalov was also re-designated by OFAC on Dec. 18, 2024, pursuant to E.O. 14024, for operating in the construction sector of the Russian economy.
From in or around January 2018 through in or around March 2023, the condominiums were maintained, transferred, and leased in violation of the International Emergency Economic Powers Act (IEEPA). Specifically, on or about June 14, 2018, a Miami real estate agent retained to manage the properties transferred the two condominiums owned by Perevalov to a limited liability company set up to obfuscate Perevalov’s interest in the properties. Following the transfer, the properties continued to be leased, generating proceeds used to maintain them.
The FBI Miami Field Office investigated the case with assistance from the Sunny Isles Beach Police Department.
Assistant U.S. Attorneys Joshua Paster, Marx P. Calderón, and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the National Security Division’s Counterintelligence and Export Control Section prosecuted the civil action.
This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Justice Department Modernizes Process that Federal Agencies Use to Acquire Real PropertyRead the Press Release
The Justice Department today announced the completion of a major effort to modernize the process that federal agencies use to acquire real property. Over the past two years, the Justice Department’s Environment and Natural Resources Division (ENRD) has collaborated with attorneys throughout the federal government to identify outdated provisions in delegations of authority previously issued by the Justice Department between 1970 and 1991.
As a result of that effort, on Dec. 10, 2024 — pursuant to 40 U.S.C. § 3111(b) — Assistant Attorney General Todd Kim of ENRD issued 10 revised delegations of title review authority to land-acquiring federal agencies. These revised delegations should reduce the unnecessary duplication of effort by agency and Justice Department staff, promoting government efficiency and saving taxpayer funds.
Before the United States may acquire real property, 40 U.S.C. § 3111 requires that the Attorney General must first determine that the purchase will include sufficient title for the United States to use the property as intended. In 1970, because most land-acquiring agencies already employed legal staff qualified to review title evidence and make that determination, Congress authorized the Justice Department to delegate title review responsibility, allowing agency counsel to approve sufficiency of title on behalf of the Attorney General subject to Justice Department supervision and regulation. The Attorney General, through the Assistant Attorney General, subsequently delegated title review authority to 10 different land-acquiring agencies.
Many provisions of the original delegations are outdated, including references to since-replaced regulations and a now-unnecessary restriction on agency approval of title in certain acquisitions valued at more than $100,000. Additionally, since 1970, Congress has dissolved one affected agency, the Atomic Energy Commission, and administratively transferred another, the United States Coast Guard. The revised delegations address these issues, incorporating the Regulations of the Attorney General Governing the Review and Approval of Title for Federal Land Acquisitions (2016), eliminating the $100,000 limitation on certain acquisitions and identifying the modern version of each relevant agency.
“The revised delegations will enhance the productive working relationship that the Justice Department has always maintained with its agency partners, ensuring that each land acquisition complies with federal law while also promoting government efficiency and the conservation of taxpayer resources,” said Assistant Attorney General Kim. “This was a years-long project that will have a tangible effect on thousands of real property acquisitions by the federal government every year. I want to thank not only the Justice Department attorneys involved in this project, but also those throughout the entire federal government who contributed their ideas, experience, and expertise.”
The following agencies received revised delegations of authority: the Department of Agriculture, Department of the Army, Department of Energy, Department of Homeland Security, Department of the Interior, Department of the Navy, Department of Transportation, Department of Veterans Affairs, the General Services Administration and the U.S. Section of the International Boundary and Water Commission.
ENRD’s Land Acquisition Section — including Section Chief Andrew M. Goldfrank, Division Counsel for Title Matters Georgia Garthwaite and Trial Attorney Ben McMurtray — led the effort.
Justice Department Launches 2025 Access to Justice Prize to Address the Rural Justice GapRead the Press Release
The Justice Department’s Office for Access to Justice today announced the launch of the Access to Justice Prize, a year-long prize competition that aims to foster innovative solutions to address critical gaps in access to justice across the United States. The inaugural competition will focus on access to justice gaps faced by rural communities across the country, aiming to advance general public awareness about rural access to justice gaps; prompt and support the development of new and innovative solutions; and promote the replication and expansion of strategies that work.
“Through our engagement with courts, justice practitioners, legal aid providers, academic institutions and other organizations across the country, we’ve heard loud and clear that solutions to close the rural justice gap must begin with rural communities themselves,” said Director Rachel Rossi of the Justice Department’s Office for Access to Justice. “Through the Access to Justice Prize competition, we further this approach, empowering those who best know the barriers their communities face to drive the effective solutions that will ensure access to justice for all, regardless of geography.”
Nationwide access to justice barriers are often exacerbated for rural Americans, especially when unique circumstances like long travel times, limited internet access or lack of attorneys are too often overlooked. A 2022 study by the Legal Services Corporation revealed that 77% of low-income rural households experienced at least one civil legal problem in the previous year, with 94% receiving inadequate or no legal help. Additionally, rural criminal justice systems are strained by part-time judges, contract defense counsel and lacking prosecutorial resources. Studies demonstrate that recruitment and retention challenges are increasing for criminal justice careers in rural areas, including for public defenders, prosecutors and law enforcement. And rural courts face rising caseloads, delay, uneven workloads among judges and lack of resources.
The 2025 Access to Justice Prize aims to inspire and support innovative ideas that address these challenges by engaging those closest to the issues — rural courts, practitioners and organizations. Eligible participants are encouraged to submit proposals for any solutions that expand access to justice, including, for example, solutions to:
- Increase access to legal representation, assistance or information;
- Simplify legal processes, systems, forms or language;
- Leverage technology to enhance legal system efficiency;
- Expand access for underserved rural populations, including Tribal communities and individuals with disabilities; and
- Build innovative partnerships to address local justice needs.
More information and additional examples can be found here. The competition will run on a one-year cycle, starting in January 2025, and will feature two judging phases:
- Finalist Selection: Up to five finalists will receive $5,000 each and then refine their proposals over a six-month phase in preparation to compete for the grand prize.
- Grand Prize Selection: Finalists will present their solutions at an Access to Justice Showcase, where judges will select the grand prize winner to receive $50,000.
Below is the timeline for the year-long Access to Justice Prize competition cycle:
- Jan. 7: Submissions open
- March 31: Submission deadline
- April 30: Finalists announced
- May 1 – Oct. 31: Refinement Phase
- Early December 2025: Grand Prize Showcase and winner announcement
Applicants are encouraged to visit the Access to Justice Prize website on Challenge.gov to review eligibility requirements, submission guidelines, and resources. The Office for Access to Justice will also present an informational webinar on Feb. 11 at 3:00 PM EST. Applications may be submitted beginning on Jan. 7 and must be received by 11:59 PM EST on March 31.
The Access to Justice Prize competition continues the ongoing work of the Office for Access to Justice to engage with and support rural communities in closing the justice gap. This includes the publication of resources to support rural access to justice; a focus on economic barriers faced by rural communities; and broad engagement with rural-focused court leaders, access to justice commissions, initiatives (including the Kansas Rural Justice Initiative Committee and the Alaska Legal Services Corporation’s Community Justice Workers project), criminal justice practitioners, civil legal aid providers, pro bono volunteers and more.
Entities and organizations are encouraged to also review their eligibility for Justice Department grant funding opportunities that may support rural justice initiatives and programs, including those specifically focused on rural jurisdictions, such as the Rural Program administered by the Office on Violence Against Women and the Rural Violent Crime Reduction Initiative administered by the Office of Justice Programs.
Justice Department Files Voting Rights Suit Against City of Hazleton, PennsylvaniaRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the City of Hazleton, Pennsylvania, to challenge the city council’s at-large method of election.
The lawsuit alleges that the city’s current at-large method of electing city council members results in Hispanic citizens having less opportunity than other members of the electorate to participate in the political process and to elect candidates of choice, in violation of Section 2 of the Voting Rights Act. Hispanic voting-age citizens make up more than 40% of the city’s electorate. Hispanic-preferred candidates have run for the city council and routinely lose, despite the county’s sizeable Hispanic citizen population.
“The Voting Rights Act is an important tool to ensure that underrepresented citizens have an equal opportunity to choose their elected officials,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to ensuring that all citizens have an equal opportunity to participate in the democratic process and elect candidates of choice. We look forward to working with officials to achieve a more perfect union by bringing Hazleton, Pennsylvania, into compliance with the Voting Rights Act.”
“The Hispanic population is a growing and important population in the City of Hazelton, and those citizens should have the ability to choose candidates that represent their interests,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “This complaint demonstrates my office’s commitment to partner with the Justice Department to enforce civil rights statutes like the Voting Rights Act.”
The complaint, filed in the U.S. District Court for the Middle District of Pennsylvania, alleges that changing the method of election can create opportunities for Hispanic voters to elect candidates of their choice to the Hazleton City Council. For example, by electing councilmembers from single-member districts, Hispanic voters would have an opportunity to elect at least two members of the five-member city council. The lawsuit seeks a federal court order implementing a new method of electing the Hazleton City Council.
The Justice Department looks forward to continued discussions with the City of Hazleton toward resolution of this matter.
The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act.
More information about voting and elections is available at www.justice.gov/voting. Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section. Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.
Jury convicts South Texan for transporting people in the tractor’s cabRead the Press Release
CORPUS CHRISTI, Texas – A 26-year-old Edinburg man has been convicted of unlawfully transporting an undocumented alien, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for an hour and a half following a less than two-day trial before finding Lisandro Vasquez-Gomez guilty.
On Aug. 29, 2024, Vasquez-Gomez drove to the Falfurrias Border Patrol checkpoint where he told authorities he was hauling an empty trailer and was heading to Houston. He denied having any passengers in his vehicle. However, a K-9 alerted to the cab of the tractor where law enforcement located five people illegally present in the United States hidden behind the driver.
At trial, the jury heard from some of those being transported who explained that smugglers had driven them to a remote area where a tractor-trailer was waiting. They did not see the driver, but the vehicle began moving shortly after they were concealed in the sleeper berth.
The defense attempted to convince the jury that authorities failed to fully investigate the smuggling attempt and that Vasquez-Gomez was simply hauling a decoy smuggling load. They did not believe those claims and found him guilty as charged on all three counts.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and set sentencing for April 8, at which time Vasquez-Gomez faces up to five years in federal prison.
He was permitted to remain on bond pending that hearing.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Patrick Overman, Ashley A. Pruitt and Liesel Roscher prosecuted the case.
Jefferson County man sentenced for drug trafficking in Eastern District of TexasRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced for drug trafficking in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Francisco Manuel Magdaleno, 41, was convicted at trial of conspiracy to distribute and possession with intent to distribute methamphetamine. Magdaleno was sentenced to 265 months in federal prison by U.S. District Judge Marcia A. Crone on January 7, 2025.
According to information presented in court, from February 2019 through May 2022, Magdaleno was involved in a conspiracy to traffic methamphetamine from Michoacán, Mexico, through Beaumont, Texas, and into areas throughout the United States. More than 20 known co-conspirators were a part of the conspiracy that included the Magdaleno drug trafficking organization.
The investigation revealed that Magdaleno played a central role in obtaining more than ten thousand grams of methamphetamine and distributing that methamphetamine to areas throughout Texas, Louisiana and Florida. Evidence obtained at trial revealed that Magdaleno was also a multi-kilogram distributor of cocaine.
This is an Organized Crime Drug Enforcement Task Forces (OCDETF) case. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the U.S. Drug Enforcement Administration, Beaumont HIDTA Task Force, Beaumont Police Department, Texas Department of Public Safety-CID, Jefferson County Sheriff’s Office, and Chambers County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Jonathan Lee and Rachel Grove.
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Jefferson County Business Owner Indicted for Felony Tax FraudRead the Press Release
SYRACUSE, NEW YORK – Barbara DeYear, age 67, of Lorraine, New York, has been charged by indictment with 13 counts of tax fraud. United States Attorney Carla B. Freedman and Harry Chavis, Jr., Acting Special Agent in Charge of the New York Field Office, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
The indictment alleges that DeYear is the co-owner and president of Independent Commercial Contractors, Inc., a Jefferson County-based corporation that does construction, demolition, and asbestos removal work, and that she withheld more than $135,000 in employment taxes from her employees’ paychecks between 2019 and 2022 and failed to pay those withholdings to the IRS as required by law. The indictment further alleges that DeYear failed to file quarterly tax returns on behalf of Independent Commercial Contractors from 2015 through 2022 but that during the COVID-19 pandemic she applied for a federally backed Paycheck Protection Program (PPP) loan and submitted a fraudulent “file copy” of two tax returns purporting to show tax payments on behalf of the corporation, when neither the tax returns nor the payments were sent to the IRS.
The felony charges filed against DeYear carry a maximum sentence of 5 years in federal prison and a fine of up to $250,000 per count, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
DeYear was arraigned today in Binghamton, New York, before United States Magistrate Judge Miroslav Lovric, and she was released pending a trial that will be scheduled later this year before Senior United States District Court Judge David N. Hurd in Utica, New York.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
IRS-CI is investigating the case, and Assistant U.S. Attorney Michael F. Perry is prosecuting the case.
Jacksonville Man Sentenced to Three Years for Possessing Child Sexual Abuse MaterialRead the Press Release
Jacksonville, Florida –Senior United States District Judge Timothy J. Corrigan has sentenced Austin Adams (32, Jacksonville) to 36 months in federal prison for possessing child sexual abuse material. Adams pled guilty to that offense on September 24, 2024. Following his incarceration, he will serve 10 years of supervised release and will be required to register as a sexual offender.
According to the court documents, on March 20, 2024, Adams possessed child sexual abuse material by purchasing it with cryptocurrency. He spent close to $1,000 on a website that was eventually shut down due to the child sexual abuse material the website was distributing. The discovery of Adams’ purchases on the website led law enforcement to search Adams’ residence where a forensic review of his cellular phone revealed multiple images and videos of child sexual abuse material, some of which were over 45 minutes in length.
The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Jacksonville Man Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Zevion La’Quawn Collins (30, Jacksonville) today pleaded guilty to conspiracy to distribute 50 grams or more of pure or actual methamphetamine. Collins faces a mandatory minimum penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been scheduled.
According to court documents, between April 2023 and the time of his arrest on June 17, 2024, Collins distributed methamphetamine, cocaine base (crack), and marijuana in Jacksonville, Florida. During this time, federal agents observed Collins conduct multiple drug transactions, including on 6 separate occasions, during which Collins sold one to two ounces of pure methamphetamine at a time. On June 17, 2024, agents executed a search warrant at Collins’ stash house on Ken Knight Drive in Jacksonville, and arrested Collins on federal drug charges. From this residence, agents seized approximately $4,970 in U.S. currency, and a loaded Glock .40 caliber pistol.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Postal Inspection Service, and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Aakash Singh.
This case is part of Operation Ice Drop, an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Indictment Charges Norwich Man on Federal Supervised Release with Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JAVON MORSE, 29, of Norwich, with cocaine distribution and firearm possession offenses.
According to court documents and statements made in court, on December 13, 2017, Morse was sentenced in Bridgeport federal court to 60 months of imprisonment and four years of supervised release for trafficking cocaine. He was released from prison in January 2021.
On October 14, 2024, while on federal supervised release, Morse was arrested by Norwich Police and charged with multiple offenses stemming from his alleged possession of nearly a kilogram of cocaine, narcotic pills, items used to process and package narcotics, four handguns, loaded high capacity magazines, and other items.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment, which was returned on December 17, 2024, charges Morse with one count of possession with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and one count of unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years. Morse faces additional penalties if he is found in violation of the conditions of his supervised release.
Morse has been detained in federal custody since December 12, 2024. He appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Norwich Police Department, the Connecticut State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Hogansburg Man Sentenced to More than Five Years in Prison for Federal Drug and Firearm CrimesRead the Press Release
SYRACUSE, NEW YORK – Joseph Thompson, age 38, of Hogansburg, New York, was sentenced on December 19, 2024, to 66 months in federal prison for possession with intent to distribute a controlled substance and possession of firearms in furtherance of a drug trafficking crime.
United States Attorney Carla B. Freedman and Bryan Miller, Special Agent in Charge of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division, made the announcement.
As part of his guilty plea, Thompson admitted that in June 2023, he arranged to meet another individual at a parking lot in Massena, NY, for the purpose of selling marijuana in exchange for firearms. Thompson admitted that he gave the individual approximately 18 pounds of marijuana in exchange for 7 semiautomatic pistols and ammunition magazines. Thompson was arrested immediately after the transaction.
Thompson was also ordered to serve three years of supervised release following his release from prison.
ATF investigated the case, with assistance from Quebec Provincial Police, St. Regis Tribal Police, New York State Police, Homeland Security Investigations, U.S. Customs and Border Protection, St. Lawrence County Sheriff’s Office, Massena Police Department, and U.S. Bureau of Industry and Security. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case
Hartford Man Sentenced to 69 Months in Prison for Possessing Gun and Drugs While on Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that STANDFORD SMITH, also known as “Pops,” 35, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 69 months of imprisonment, followed by three years of supervised release, for narcotics distribution and firearm possession offenses, and for violating his conditions of supervised release that followed a prior federal conviction.
According to court documents and statements made in court, in March 2021, Smith was sentenced in Hartford federal court to 55 months of imprisonment and four years of supervised release for his role in a gun trafficking ring and for distributing crack cocaine. He was released from prison in February 2022.
On June 2, 2023, Hartford Police arrested Smith in the parking lot of a motel on West Service Road in Hartford. Smith possessed a loaded Ruger LCP Max .380 caliber firearm in his pants pocket, and a search of his vehicle revealed more than 30 fentanyl pills, approximately 23 grams of crack cocaine, and a digital scale.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Smith has been detained since his arrest. On July 9, 2024, he pleaded guilty to possession with intent to distribute cocaine and fentanyl, and unlawful possession of a firearm by a felon.
Judge Thompson sentenced Smith to 57 months of imprisonment for the narcotics and firearm offenses, and a consecutive 12 months of imprisonment for violating the conditions of his supervised release.
This investigation was conducted by the Hartford Police Department and the Drug Enforcement Administration. The case was prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins.
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. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Georgia Man Guilty of Money Laundering via Internet ScamsRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that EMMANUEL UGBAJA (“UGBAJA”), age 55, of Duluth, Georgia, pled guilty on January 7, 2025 before United States District Judge Darrel James Papillion to Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 371.
Court records show that in 2018, two persons were victimized by two separate internet scams – one such Kansas-based scam involved a victim sending money to an unknown co-conspirator posing as a love interest, during a “romance scam” and the other California-based scam involved a victim sending money to a person posing as an attorney during an “inheritance scam.” At the direction of the co-conspirators, the victims sent the funds to a bank account controlled by UGBAJA. UGBAJA retained a portion of the funds for himself and then sent the remaining victim funds totaling $60,000, to a local maritime broker as partial down payment for an unrelated vessel.
Sentencing is set for April 8, 2025. At that time, the defendant faces up to five (5) years of imprisonment. Upon release from prison, the defendant up to three (3) years of supervised release and up to a $250,000.00 fine, or twice the gross gain to the defendant of twice the gross loss to any victim. The defendant also faces payment of a mandatory $100 special assessment fee.
This indictment is part of an ongoing national effort by the Department of Justice to address online fraud schemes often based overseas that target U.S. citizens. The public is encouraged to report potential online fraud activity or scams to the Federal Bureau of Investigation at https://www.ic3.gov/.
The United States Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit.
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Galt Big Game Hunter Pleads Guilty to Conspiring to Smuggle an Endangered Ladakh Urial Trophy into the United StatesRead the Press Release
SACRAMENTO, Calif. — Jason Keith Bruce, 51, of Galt pleaded guilty today to conspiring to smuggle an endangered Ladakh urial trophy into the United States, United States Attorney Phillip A. Talbert announced.
The Ladakh urial is an endangered species of wild sheep that lives in the mountains of Ladakh, a region of India and Pakistan.
According to court documents, Bruce was a recreational big game hunter and co-defendant Pir Danish Ali 45, of Pakistan, was the CEO of a hunting outfitter and guide company based in Pakistan. Bruce hunted as a client of Pir’s company, and they conspired to hunt an endangered Ladakh urial in Pakistan. Bruce and Pir then conspired to smuggle the resulting trophy into the United States in 2018 by declaring it as a different species to Customs and Border Protection and the U.S. Fish and Wildlife Service, and by presenting forged documents purporting to be issued by Pakistani authorities. After the U.S. Fish and Wildlife Service detained the trophy, Bruce and Pir agreed with each other to lie and did in fact lie to the U.S. Fish and Wildlife Service. Further investigation revealed that numerous other documents presented by hunters who had hunted with Pir’s company to import trophies into the United States were also forged. The U.S. Fish and Wildlife Service has identified at least 97 trophies brought into the United States pursuant to fraudulent documents by at least 25 hunters who all hunted with Pir’s company between 2013 and 2018.
This case was the product of an investigation by the U.S. Fish and Wildlife Service. Assistant United States Attorneys Katherine T. Lydon and Whitnee Goins are prosecuting the case.
Bruce is scheduled to be sentenced by U.S. District Judge John A. Mendez on May 20, 2025. Bruce faces a maximum statutory penalty of 5 years in prison and a $250,000 fine. The actual sentence, however, will 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 against Pir are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Track Star Sentenced to 20 Years in Prison for Firearms OffensesRead the Press Release
MIAMI – A felon in possession of a firearm and ammunition was sentenced to 240 months in prison, for attempting to shoot a victim on his front porch and confronting a tow truck driver with a second firearm a week later.
On Jan. 3, U.S. District Court Judge David S. Leibowitz imposed an upward variance of 105 months and sentenced Olivier Ricardy Alexandre, 28, to 240 months in prison. Alexandre previously pled guilty to the two-count indictment, charging him with possession of ammunition by a convicted felon, and possession of a firearm and ammunition by a convicted felon.
On Feb. 15, 2023, Alexandre, formerly a track and field athlete, was sentenced to probation in Warren County, Ky., on felony charges related to the trafficking of marijuana. Less than a month later, in Miami-Dade County, on March 13, 2023, Alexandre ran up to a victim, who was entering his home after work, and fired at least 18 rounds of ammunition at the victim without reloading. The Miami-Dade Police Department (MDPD) Forensic Services Division linked the shell casings from that shooting to three prior shootings in Miami-Dade County, including an incident on Oct. 9, 2022, when the same victim was shot with the same gun.
On March 21, 2023, officers with the Plantation Police Department conducted surveillance on Alexandre’s home in anticipation of executing a search warrant, when Alexandre ran outside and retrieved a handgun with an extended drum magazine to confront a tow truck driver who was repossessing a vehicle. Alexandre was promptly arrested.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, Acting Inspector in Charge Steven Hodges of the U.S. Postal Inspection Service (USPIS), Miami Division and Director Stephanie V. Daniels of MDPD made the announcement.
ATF, USPIS and MDPD investigated this case with the assistance of the Plantation Police Department and Broward Sheriff’s Office.
Assistant U.S. Attorney Hayden P. O’Byrne prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20354.
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Former New Castle Police Lieutenant Sentenced to 12.5 Years in Federal Prison for Repeatedly Using Excessive Force and Attempted CoverupRead the Press Release
INDIANAPOLIS— Aaron Jason Strong, 47, a former Lieutenant with the New Castle Police Department, was sentenced today to 151 months in prison for using excessive force against people in custody and obstructing justice by attempting to deceive investigators.
On Oct. 4, 2024, a federal jury convicted Strong of three counts of deprivation of rights under color of law and one count of witness tampering. At trial, evidence introduced by the government established that Strong had intentionally used excessive force against people in police custody on multiple occasions.
“The severe sentence imposed on this former law enforcement official should send a clear message: ‘street justice’ has no place in 21st-century policing and violators will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The vicious and lawless abuse that Aaron Strong perpetrated has no place in modern law enforcement. This sentence reflects the senseless cruelty of the defendant’s conduct, the serious physical injuries inflicted on victims and the harms to society when those entrusted with public authority arrogate to themselves the power to mete out summary punishment.”
“Aaron Strong viciously beat, stomped, and shot three defenseless men with no lawful justification—causing serious injuries including a fractured spine,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “After good officers horrified by these abuses reported his actions, Strong lied in an attempt to cover up his crimes. The vast majority of police serve the public honorably, and when criminals like Aaron Strong violate their oaths and brutalize the public, an already difficult and dangerous profession grows even more so. Our U.S. Attorney’s Office and the Department of Justice, together with our partners at the FBI and Indiana State Police, are committed to doing the work necessary to earn and keep the trust of the public. The serious prison sentence imposed here demonstrates that there are consequences for police brutality, because no one is above the law.”
Evidence presented at trial established that, in August 2019, then-Lieutenant Strong responded to another officer’s report of a foot chase. As Strong arrived, the suspect stopped running, put his hands up, said “I’m done” and lowered himself to the ground. As another officer approached to take the suspect into custody, Strong ran up and struck the suspect at least twelve times with a metal police baton, nearly striking a fellow officer. Other involved officers promptly reported the incident, and the Indiana State Police were called in to conduct an independent criminal investigation. During a meeting with the State Police investigator, Strong gave a false account of the incident in which he minimized his own use of force and exaggerated the danger posed by the suspect.
Strong was also convicted of using excessive force against two men being detained pending trial in a low-security annex of the Henry County, Indiana, jail. While assisting correctional officers with a dormitory search, Strong stomped on the head of a detainee who was complying with commands to lie on the ground. A few moments later, Strong approached a second inmate, who was kneeling, not moving, with his back to Strong, and shot him point-blank in the back with a less-lethal “beanbag” round, which Strong had been trained could cause death or serious bodily injury when used at short ranges. The impact from the round fractured the detainee’s spine.
The FBI Indianapolis Field Office and Indiana State Police investigated the case, with assistance from the New Castle Police Department. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division, who prosecuted this case.
If you have concerns regarding Civil Rights violations in the Southern District of Indiana, you can now report them to our office via email [email protected] or using our online form.###
Former Indiana Police Lieutenant Sentenced for Federal Excessive Force and Obstruction of Justice ChargesRead the Press Release
A former Lieutenant with the New Castle, Indiana, Police Department was sentenced today to 151 months in prison for using excessive force against people in custody and obstructing justice by attempting to deceive investigators.
On Oct. 4, 2024, a federal jury convicted Aaron Jason Strong, 47, of three counts of deprivation of rights under color of law and one count of witness tampering. At trial, evidence introduced by the government established that Strong had intentionally used excessive force against people in police custody on multiple occasions.
“The severe sentence imposed on this former law enforcement official should send a clear message: ‘street justice’ has no place in 21st-century policing and violators will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The vicious and lawless abuse that Aaron Strong perpetrated has no place in modern law enforcement. This sentence reflects the senseless cruelty of the defendant’s conduct, the serious physical injuries inflicted on victims and the harms to society when those entrusted with public authority arrogate to themselves the power to mete out summary punishment.”
“Aaron Strong viciously beat, stomped, and shot three defenseless men with no lawful justification — causing serious injuries including a fractured spine,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “After good officers horrified by these abuses reported his actions, Strong lied in an attempt to cover up his crimes. The vast majority of police serve the public honorably, and when criminals like Aaron Strong violate their oaths and brutalize the public, an already difficult and dangerous profession grows even more so. Our U.S. Attorney’s Office and the Justice Department, together with our partners at the FBI and Indiana State Police, are committed to doing the work necessary to earn and keep the trust of the public. The serious prison sentence imposed here demonstrates that there are consequences for police brutality, because no one is above the law.”
“This sentence underscores the FBI’s commitment to holding law enforcement officers accountable when they violate the rights of individuals,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “Law enforcement officers take an oath to serve and protect the public and when that trust is violated, it erodes the integrity of those who serve honorably every day. The FBI and our law enforcement partners will continue to protect the civil rights of the public and ensure those who abuse their power are held responsible.”
Evidence presented at trial established that, in August 2019, then-Lieutenant Strong responded to another officer’s report of a foot chase. As Strong arrived, the suspect stopped running, put his hands up, said “I’m done” and lowered himself to the ground. As another officer approached to take the suspect into custody, Strong ran up and struck the suspect at least 12 times with a metal police baton, nearly striking a fellow officer. Other involved officers promptly reported the incident, and the Indiana State Police were called in to conduct an independent criminal investigation. During a meeting with the State Police investigator, Strong gave a false account of the incident in which he minimized his own use of force and exaggerated the danger posed by the suspect.
Strong was also convicted of using excessive force against two men being detained pending trial in a low-security annex of the Henry County, Indiana, jail. While assisting correctional officers with a dormitory search, Strong stomped on the head of a detainee who was complying with commands to lie on the ground. A few moments later, Strong approached a second inmate, who was kneeling, not moving, with his back to Strong, and shot him point-blank in the back with a less-lethal “beanbag” round, which Strong had been trained could cause death or serious bodily injury when used at short ranges. The impact from the round fractured the detainee’s spine.
The FBI Indianapolis Field Office and Indiana State Police investigated the case, with assistance from the New Castle Police Department.
Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana are prosecuting the case.
Florida Woman Sentenced for Laundering Millions of Dollars from Romance ScamsRead the Press Release
A Florida woman was sentenced today to 30 months in prison for her role in a money laundering conspiracy connected to romance scams that defrauded American victims.
Cristine Petitfrere, 30, of Miramar, Florida, was sentenced after admitting to personally laundering millions of dollars as part of her participation in the conspiracy. Petitfrere helped to funnel large sums of money from victims of romance scams into the hands of her overseas co-conspirators, retaining a portion as payment for her services and transferring the rest.
Romance scams target unsuspecting individuals, many of whom are seeking companionship online, and involve fraudsters who create fake personas to build relationships with victims. The fraudsters then convince victims to send money, often under false pretenses such as emergency situations or investments. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.
Petitfrere pleaded guilty to conspiracy to commit money laundering in the Southern District of Florida in September 2024. According to her plea agreement, Petitfrere personally laundered over $2.7 million of criminal proceeds. As part of her sentence, Petitfrere was ordered to forfeit $203,815.59 in proceeds that she personally received from the offense.
“Romance scams are a growing threat to Americans, particularly to the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to vigorously pursue those who help facilitate these criminal enterprises, whether they work on the frontlines of deception or behind the scenes.”
The FBI Miami Field Office investigated the case.
Trial Attorneys Matthew A. Robinson and Lauren M. Elfner of the Civil Division’s Consumer Protection Branch are prosecuting the case.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.
Florida Man Returns to Federal Prison for N95 Mask SchemeRead the Press Release
A Florida man who participated in a scheme to defraud a Cedar Rapids, Iowa, company in 2020 was sentenced on December 9, 2024, to more than three years in federal prison.
Saransh “Sam” Sharma, age 44, from Wellington, Florida, originally from Muscat, Oman, received the prison term after a December 14, 2023, guilty plea to one count of wire fraud.
At his guilty plea and sentencing hearings, Sharma admitted that a Cedar Rapids company was in the market to purchase one million 3M N95 masks in the midst of the COVID-19 pandemic. On October 9, 2020, Sharma falsely represented to the Cedar Rapids company in a phone call that a Florida limited liability company had successfully transacted on 30 million masks in the prior two months when, in truth, the Florida company had not done so. The Cedar Rapids company wired over $3 million to a Florida lawyer’s bank account on October 19, 2020, expecting to receive the one million N95 masks, but the Cedar Rapids company never received them. The United States later filed a civil fraud action and recovered approximately $2.4 million of the Cedar Rapids company’s moneys.
In March 2018, Sharma was sentenced to 33 months’ imprisonment after he pled guilty to one count of wire fraud in the Northern District of California for his role in a different scheme. Sharma’s prior federal prison sentence was discharged on October 9, 2020.
Sharma was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Sharma was sentenced to 37 months’ imprisonment. He was ordered to make $390,454.57 in restitution victims of the N95 mask scheme. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-71.
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El Departamento de Justicia llega a un tercer acuerdo con una empresa hipotecaria no depositaria para resolver las reclamaciones de exclusión financiera en MiamiRead the Press Release
El Departamento de Justicia anunció hoy que The Mortgage Firm, Inc. (The Mortgage Firm) acordó pagar $1.75 millones para resolver las alegaciones de que mantuvo un patrón o una práctica de discriminación en la concesión de préstamos mediante la exclusión financiera de vecindarios predominantemente negros e hispanos en el Área Estadística Metropolitana de Miami-Fort Lauderdale-West Palm Beach, Florida (Miami MSA, por sus siglas en inglés).
La exclusión financiera es una práctica ilegal mediante la cual los prestamistas evitan prestar servicios de crédito a personas que viven en comunidades de color debido a la raza, el color o el origen nacional de los residentes en esas comunidades.
“Las instituciones no depositarias, incluidas las compañías hipotecarias, ahora están originando una mayor proporción de préstamos a compradores de viviendas que los bancos y las cooperativas de crédito. Con esta tendencia surge la obligación de garantizar el pleno cumplimiento de nuestras leyes federales que prohíben la segregación residencial. Al negar a los vecindarios predominantemente negros e hispanos en el área metropolitana de Miami el acceso al crédito, The Mortgage Firm violó la ley, negó a las comunidades el acceso igualitario al crédito y exacerbó la brecha racial de riqueza”, dijo la Fiscal General Adjunta Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo brindará a las comunidades afectadas en Miami mejor acceso a la propiedad de viviendas y deja en claro que, sin importar el tipo de institución financiera (banco, cooperativa de crédito o compañía hipotecaria), el Departamento está comprometido a erradicar la segregación residencial en todo el país”.
“Nuestros esfuerzos por proteger los derechos civiles de todos son incesantes. La práctica ilegal de discriminación en los préstamos no es solo una cosa del pasado, sino que persiste en este país, incluso en el Distrito Sur de la Florida”, dijo el fiscal federal Markenzy Lapointe. “Nuestra oficina está totalmente comprometida a garantizar que todas las personas que viven en el Distrito Sur de la Florida, incluidos los residentes de vecindarios predominantemente negros e hispanos, puedan lograr el sueño americano de generar riqueza a través ser dueños de una vivienda. Seguiremos trabajando con la División de Derechos Civiles para exigir responsabilidades a los prestamistas que participan en prácticas discriminatorias ilegales en nuestro diverso distrito”.
The Mortgage Firm es una empresa hipotecaria no depositaria con sede en Altamonte Springs, Florida. La demanda, presentada hoy en el Distrito Sur de la Florida, alega que The Mortgage Firm violó la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito al no proporcionar igualdad de acceso a los servicios de préstamos hipotecarios en los vecindarios de mayoría y principalmente negros e hispanos en el área metropolitana de Miami y al disuadir a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. The Mortgage Firm ubicó sus oficinas en vecindarios predominantemente blancos y tomó medidas inadecuadas para comercializar y desarrollar redes de referencia dentro de los vecindarios negros e hispanos. Como resultado, The Mortgage Firm generó solicitudes de préstamos hipotecarios en vecindarios predominantemente negros e hispanos en el área metropolitana de Miami en proporciones muy por debajo de las instituciones pares.
La orden de consentimiento propuesta, que espera la aprobación del tribunal, obligaría a The Mortgage Firm a:
- Llevar a cabo una evaluación de las necesidades de crédito de la comunidad para identificar las necesidades de crédito de los residentes de los vecindarios predominantemente negros e hispanos del área metropolitana de Miami y tener en cuenta los resultados de dicha evaluación para desarrollar futuros programas de préstamos, campañas de marketing y esfuerzos de divulgación.
- Proporcionar $1.75 millones para un programa de subsidio de préstamos para ofrecer préstamos asequibles para la compra, refinanciación y mejora de viviendas en vecindarios predominantemente negros e hispanos en el área metropolitana de Miami. El programa puede ofrecer tasas de interés más bajas, ayuda para el pago inicial, ayuda para los costos de cierre o pago de las primas iniciales del seguro hipotecario.
- Llevar a cabo una evaluación detallada de su programa de préstamos justos en el área metropolitana de Miami, específicamente en lo que se refiere a las obligaciones de préstamos justos y préstamos en vecindarios predominantemente negros e hispanos.
- Mejorar su capacitación y dotación de personal en materia de préstamos justos para garantizar la igualdad de acceso al crédito en toda el área de mercado de The Mortgage Firm, incluyendo el mantenimiento de un director de préstamos comunitarios.
- Ampliar sus esfuerzos de divulgación y publicidad manteniendo una oficina en un vecindario de mayoría negra e hispana en el condado de Miami-Dade, traduciendo su sitio web al español y exigiendo a todos sus agentes de crédito en el área metropolitana de Miami que realicen actividades de marketing en los vecindarios de mayoría negra e hispana.
- Reforzar las conexiones con la comunidad y crear fuentes de referencia en los vecindarios predominantemente negros e hispanos ofreciendo cuatro eventos de divulgación al año, seis seminarios de educación financiera al año y asociándose con uno o más socios comunitarios para aumentar el acceso al crédito en los vecindarios predominantemente negros e hispanos del área metropolitana de Miami.
El Departamento de Justicia inició esta investigación sobre las prácticas crediticias de The Mortgage Firm después de recibir una remisión de la Oficina para la Protección Financiera del Consumidor. Este acuerdo es el decimosexto acuerdo de exclusión financiera del Departamento de Justicia en el marco de la Iniciativa contra la Exclusión Financiera, y la tercera institución no depositaria que llega a un acuerdo con el Departamento al respecto. Los prestamistas no depositarios, que no son bancos tradicionales y no prestan servicios bancarios típicos, se dedican a los préstamos hipotecarios y actualmente conceden la mayoría de las hipotecas en este país. En el marco de la Iniciativa contra la Exclusión Financiera, el Departamento ha conseguido más de $153 millones en compensación para las comunidades de color que han sido víctimas de discriminación en la concesión de préstamos. Se espera que este monto histórico de compensación genere más de $1 billón en inversiones para hacer frente a la desigualdad de acceso al crédito en las comunidades de color de todo el país.
Puede encontrar una copia de la demanda y de la orden de consentimiento propuesta, así como información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing. Las personas pueden denunciar la discriminación en materia de préstamos llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291, o entregando un informe en línea.
El Departamento de Justicia entabla un pleito de derechos electorales contra la ciudad de Hazleton, PennsylvaniaRead the Press Release
El Departamento de Justicia anunció hoy que ha radicado una demanda contra la ciudad de Hazleton, Pennsylvania, para impugnar el sistema electoral por acumulación en el cual los votantes de toda la ciudad eligen a los miembros del Consejo Municipal.
La demanda alega que actualmente el sistema electoral por acumulación para la elección de los miembros del Consejo Municipal tiene como resultado el que los ciudadanos hispanos tengan una menor oportunidad de participar en el proceso electoral y de elegir a los candidatos de su elección, en violación a la sección 2 de la Ley de Derechos Electorales. Los ciudadanos hispanos con edad para votar constituyen más del 40% del electorado de la ciudad. Candidatos preferidos por los votantes hispanos se han postulado para escaños en el Consejo Municipal pero habitualmente pierden, a pesar de la considerable población de hispanos en la ciudad.
“La Ley de Derechos Electorales es una importante herramienta para asegurar que los ciudadanos insuficientemente representados tengan igualdad de oportunidades de escoger a sus funcionarios públicos,” afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “El Departamento de Justicia está comprometido con asegurar que todos los ciudadanos tengan igualdad de oportunidades para participar en el proceso democrático y elegir a los candidatos de su elección. Esperamos con interés trabajar junto a los funcionarios para alcanzar una unión más perfecta y lograr que Hazleton cumpla con sus obligaciones bajo la Ley de Derechos Electorales.”
“La comunidad hispana es una creciente e importante población de la ciudad de Hazleton, y sus ciudadanos deben tener la habilidad de escoger candidatos que representen sus intereses,” declaró Gerard M. Karam, el Fiscal Federal para el Distrito Central de Pennsylvania. “Esta demanda demuestra el compromiso de mi oficina de colaborar con el Departamento de Justicia para hacer cumplir las leyes de derechos civiles, tal como la Ley de Derechos Electorales.”
La demanda, radicada en el Tribunal Federal de Distrito para el Distrito Central de Pennsylvania, alega que cambiar el sistema electoral puede crear oportunidades para que los votantes hispanos elijan candidatos de su elección al Consejo Municipal de Hazleton. Por ejemplo, al elegir miembros del Consejo Municipal “por distrito” de un solo miembro cada uno, los votantes hispanos tendrían la oportunidad de elegir al menos dos de los cinco miembros del Consejo Municipal. La demanda solicita una orden judicial federal para implementar un nuevo sistema electoral para el Consejo Municipal de Hazleton.
La Sección de Votación de la División de Derechos Civiles, junto con las Oficinas de los Fiscales Federales, vela por el cumplimiento de las leyes federales civiles que protegen el derecho al voto, incluyendo la Ley de Derechos Electorales, la Ley Nacional de Inscripción de Votantes, la Ley Ayudemos a Estados Unidos a Votar, las Leyes de Derechos Civiles, y la Ley de Votación para los Uniformados y los Ciudadanos en el Extranjero.
Información adicional sobre la votación y las elecciones está disponible en www.justice.gov/crt/voting/ y Vote.gov en Español. Aprenda más sobre la Ley de Derechos Electorales y otras leyes federales electorales en www.justice.gov/crt/voting-section. Denuncias relacionadas a posibles vulneraciones de las leyes federales de derechos electorales pueden presentarse mediate el formulario en línea de la División de Derechos Civiles en https://civilrights.justice.gov/o por teléfono al (800) 253-3931.
Durant Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Henry Tyler Allen, age 34, of Durant, Oklahoma, entered a guilty plea to one count of Felon in Possession of a Firearm.
The Indictment alleged that on September 24, 2024, Allen possessed a 9mm semi-automatic pistol which had been shipped and transported in interstate commerce, after having been convicted of a crime punishable by a term of imprisonment exceeding one year.
The charge arose from investigations by the Durant Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Allen was remanded to the custody of the United States Marshal Service pending sentencing.
Assistant U.S. Attorney Kevin Gross represented the United States.
Delaware Man Pleads Guilty to Participation in International Sextortion and Money Laundering SchemeRead the Press Release
A Delaware man pleaded guilty today in connection with his participation in a widespread international sextortion and money laundering scheme.
According to court documents, from May 2020 and through December 2022, Mohamed Diarra, 33, of Wilmington, participated in an international, financially motivated sextortion and money laundering scheme. Financially motivated sextortion refers to the practice of fraudulently obtaining a victim’s sexual photographs or videos, threatening to distribute the victim’s sexual material to others, and demanding that the victim pay money to avoid the threatened distribution. Diarra conspired with co-conspirators in Côte d’Ivoire who sextorted victims and utilized a network of Delaware-based “money mules,” including Diarra, to assist with laundering the victims’ illegally obtained funds. As a “money mule” for the conspiracy, Diarra collected victims’ funds into his own financial accounts, including accounts with peer-to-peer (P2P) payment transfer services and into financial accounts in others’ names which he controlled. Diarra also provided other co-conspirators with access to his accounts and recruited other individuals to serve as money mules to receive and transfer funds at his direction. Diarra and his co-conspirators used a variety of methods to collect and “cash out” the victims’ funds, including by receiving funds into the money mules’ P2P accounts they controlled, transferring funds to linked U.S. bank accounts, withdrawing the funds as cash, or transferring them to other money mule co-conspirators. Diarra and his co-conspirators also used a variety of methods to further transfer the victims’ funds, after they had been converted to cash or goods, to co-conspirators and others who were located in Côte d’Ivoire and elsewhere overseas.
Diarra pleaded guilty to one count of conspiracy to engage in money laundering. He faces a maximum penalty of 20 years in prison. A sentencing hearing will be set at a later date, when a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; U.S. Attorney David C. Weiss for the District of Delaware; and Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division made the announcement.
The FBI is investigating the case, with assistance from the Justice Department’s Office of International Affairs and the government of Côte d’Ivoire.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Briana Knox for the District of Delaware are prosecuting the case.
If you, your child, or someone you know is being exploited via sextortion, contact your local FBI field office, call 1-800-CALL-FBI (1-800-225-5324), or report it online at the Internet Crime Complaint Center (IC3). Additional resources can found at Financially Motivated Sextortion — FBI. For more information about a related financially motivated sextortion case and if you believe you are a victim in this particular case, please also visit www.justice.gov/criminal/criminal-vns/case/united-states-v-hadja-fanta-kone-siaka-ouattara-sidi-diakite-almamy-moustapha-diaby.
Connecticut Dentist Pays More than $600K to Settle False Claims AllegationsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and William Tong, Connecticut Attorney General, today announced that LAKSHMI BETHI, DMD and her former businesses, NEW HAVEN DENTAL LLC, NEW HAVEN FAMILY DENTAL LLC, and NEW HAVEN FAMILY DENTAL GROUP LLC, have entered into a civil settlement agreement with the federal and state governments and have paid $608,296.39 to resolve allegations that they violated the federal and state False Claims Acts.
Bethi is licensed to practice dentistry in Connecticut. Bethi, New Haven Dental LLC, New Haven Family Dental LLC, and New Haven Family Dental Group LLC were enrolled as dental providers in the Connecticut Medical Assistance Program (“CTMAP”), which includes the state’s Medicaid program.
It is alleged that, in violation of their CTMAP provider agreements and the federal Anti-Kickback Statute, Bethi and her dental practices submitted claims to the CTMAP related to dental services rendered to Connecticut Medicaid patients referred to the businesses by a third-party “patient recruiting” company. Bethi and her dental practices paid a patient recruiter $110 for each Connecticut Medicaid patient the recruiter referred to them whenever the patient received services over and above routine preventative care, such as dental cleanings and exams, and submitted claims for dental services rendered to those patients. With each submitted claim, they impliedly certified that the conditions of receiving payment were met, including, but not limited to, that they did not pay kickbacks or violate any terms or provisions of the Connecticut Dental Health Partnership (“CTDHP”) provider manual concerning the submitted claim.
The CTDHP provider manual, which is an addendum to both the CTMAP provider agreement and the CTMAP provider manual, expressly prohibits per-patient compensation for individuals referred to CMAP providers.
To resolve the allegations under the federal and state False Claims Acts, Bethi, New Haven Dental LLC, New Haven Family Dental LLC, and New Haven Family Dental Group LLC agreed to pay $608,296.39 to reimburse the Medicaid program for conduct occurring from January 1, 2019, through April 6, 2023.
Under the False Claims Act, the government can recover up to three times its actual damages, plus penalties of $13,946 to $27,894 for each false claim.
In a related federal criminal case, Bethi pleaded guilty to conspiracy to violate the federal anti-kickback statute, admitting that between 2016 and 2023, she paid patient recruiters more than $360,000 in kickbacks. Connecticut Medicaid reimbursed Bethi approximately $2.2 million for services rendered to patients recruited via kickbacks. On December 18, 2024, she was sentenced in New Haven federal court to two years of probation and was ordered to forfeit $500,000.
This case stems from a larger investigation into fraudulent activity by health care providers who submit kickback-tainted claims to the CTMAP for services rendered to Connecticut Medicaid patients referred by third-party patient recruiting companies.
This investigation was conducted by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of the Inspector General; the Connecticut Attorney General’s Office; and the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorneys Anne Thidemann and Elena Coronado, and Assistant Attorney General Joshua L. Jackson of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
City Man Sentenced to Five Years in Prison for Setting Fire to West Philadelphia Building in May 2020Read the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyrone Wise, 34, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Timothy J. Savage to 60 months in prison and three years of supervised release for setting fire to a West Philadelphia building.
In September, Wise pleaded guilty to a one-count indictment charging him with malicious damage by means of fire of a building used in interstate commerce.
He admitted that, on May 31, 2020, at about 8:49 p.m., amid both lawful protests and unlawful civil disturbances occurring in Philadelphia, he intentionally set fire to the SunRay Drugs Pharmacy located on the first floor of 25 South 60th Street in West Philadelphia.
The blaze caused extensive fire, water, and smoke damage to the pharmacy on the first floor and throughout the remainder of the building, which included a basement, and apartments on the second and third floors. The fire resulted in $1.2 million in damage and caused the SunRay Drugs at that location to close.
“Tyrone Wise’s actions were incredibly dangerous,” said U.S. Attorney Romero. “He set this fire with no regard for the two apartments upstairs and any people who might be in them, the potential for the flames to spread to adjacent buildings, or the risks to first responders who would have to fight the blaze. Arson threatens lives and communities, and my office will continue to work with our investigative partners to prosecute these offenders and hold them fully accountable.”
“Tyrone Wise took advantage of the lawlessness of the moment to torch this drug store and extensively damage people’s apartments for no reason,” said Eric DeGree, Special Agent in Charge of the ATF’s Philadelphia Field Division. “Arson not only hurts our communities with property damage, but also wrecks opportunity and puts people in danger of injury and death. In cooperation with our law enforcement partners, we will continue to track down and prosecute arsonists in Philadelphia for the safety and prosperity of our city.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Kevin Jayne.
Charlotte Jury Convicts Armed Bank RobberRead the Press Release
CHARLOTTE, N.C. – A Charlotte jury returned a guilty verdict today against Kendall Charles Alexander, Sr., 60, of Baltimore, Maryland, for the armed robbery of a Bank of America branch, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department, join U.S. Attorney King in making today’s announcement.
According to filed court documents and evidence presented at trial, on October 15, 2021, at approximately 10 a.m., Alexander and his co-defendant, Derrius Fleming, robbed at gunpoint the Bank of America branch located at 212 Iverson Way in the Southend area of Charlotte. Trial evidence established that Alexander entered the bank holding a loaded semi-automatic rifle. Fleming went directly to an unarmed security guard at the corner of the building and forced her inside at gunpoint with his loaded semi-automatic rifle. Once inside, Alexander and Fleming threatened to kill the employees and customers if they did not comply with their demands. The victims were ordered to the ground and Alexander ordered the manager to open the vault room and the vault. Alexander loaded a bag with the money from the vault while Fleming kept watch over the victims.
According to trial evidence, using GPS tracking, law enforcement tracked Alexander and Fleming who had met up with a third individual. Alexander and Fleming attempted to burn their getaway car and got into the car with the third man. Ultimately, the robbers crashed that vehicle, at which point Alexander and Fleming fled on foot across I-77. All of the stolen money was recovered from a bag dropped by Alexander.
The jury convicted Alexander of armed bank robbery with forced accompaniment, brandishing a rifle, including a short-barreled rifle, in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Alexander has prior convictions for attempted murder of a federal officer, use of a firearm in commission of a felony, possession and discharge of a firearm during a crime of violence, and armed bank robbery. He was also on federal supervised release for committing a bank robbery in Maryland. Because of his violent criminal history, Alexander faces a mandatory sentence of life in prison.
Alexander will remain in federal custody pending sentencing. A sentencing date has not been set.
Fleming has pleaded guilty to brandishing a short-barreled rifle in furtherance of a crime of violence and been sentenced to ten years in prison.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Erik Lindahl and David Kelly 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 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.
Chairman and CEO of MoviePass’ Parent Company Pleads Guilty to Securities Fraud Scheme and ConspiracyRead the Press Release
A Florida man pleaded guilty today in the Southern District of Florida to charges of defrauding and conspiring to defraud investors in two public companies.
According to court documents, Theodore Farnsworth, 62, of Miami, engaged in schemes to defraud investors in Helios & Matheson Analytics Inc. (HMNY), a publicly traded Florida- and New York-based company that was the parent of MoviePass Inc. (MoviePass), and Vinco Ventures Inc. (Vinco), a publicly traded New York-based company. From August 2017 through March 2019, Farnsworth and his co-conspirators made materially false and misleading representations relating to HMNY’s and MoviePass’ business and operations to artificially inflate the price of HMNY stock and to attract new investors. At the time, Farnsworth was HMNY’s chairman and CEO. From November 2020 through September 2024, Farnsworth and his co-conspirators used the same strategy to defraud Vinco investors. Farnsworth also briefly served as Vinco’s CEO.
“Theodore Farnsworth — formerly the CEO of two publicly traded companies — repeatedly lied to the public to artificially inflate these companies’ stock prices, defraud investors, and enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “He concealed that MoviePass’ subscription model was a money-losing gimmick and falsely claimed that HMNY used artificial intelligence to monetize MoviePass’ subscriber data, among other misrepresentations. The Criminal Division is committed to protecting investors from criminals who engage in fraudulent schemes, including those that employ AI washing.”
“Theodore Farnsworth’s plans and promises for MoviePass seemed too good to be true — they were in fact part of a securities fraud scheme,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “As he admitted today, Farnsworth’s ploys and boasts were actually lies and misrepresentations designed to boost stock prices. The FBI will continue to ensure anyone attempting to commit fraudulent schemes at the expense of investors is held accountable in the criminal justice system.”
MoviePass was a privately held company that offered subscribers a certain number of movie tickets per month at a flat monthly fee. HMNY acquired a majority ownership interest in MoviePass, after which MoviePass introduced a new “unlimited” plan that purported to allow new subscribers to see unlimited movies in theaters with no blackout dates for a flat monthly fee of $9.95 (the “unlimited” plan). Farnsworth and his co-conspirators falsely claimed that MoviePass’ “unlimited” plan was tested, sustainable, and would be profitable or break even on subscription fees alone. However, Farnsworth knew that the “unlimited” plan was a temporary marketing gimmick to attract new subscribers and, in turn, to artificially inflate HMNY’s stock price and attract new investors. In reality, MoviePass lost money from the “unlimited” plan.
In addition, Farnsworth falsely claimed that HMNY possessed and used technologies — such as “big data” and “artificial intelligence” capabilities — to generate revenue by analyzing and monetizing the data MoviePass collected from subscribers. But Farnsworth knew HMNY did not possess these capabilities to monetize MoviePass’ subscriber data and had incorporated any such technologies into the MoviePass application. The charges in this case, originally brought in 2022, represent one of the Criminal Division’s first “AI washing” cases.
Farnsworth also made false and misleading representations about the positive impact that multiple revenue streams (other than subscription fees) were having on MoviePass’ profitability and self-sufficiency. At the time, however, Farnsworth knew MoviePass did not have non-subscription revenue streams that would make MoviePass self-sufficient or otherwise offset the losses MoviePass experienced as a result of the unprofitable “unlimited” plan.
Additionally, Farnsworth falsely claimed that MoviePass’ cost of goods, as reflected in the number of tickets each subscriber purchased using their subscription, was naturally declining over time consistent with publicly stated expectations. In fact, Farnsworth and his co-conspirators directed MoviePass employees to implement numerous tactics to prevent certain subscribers from using the purportedly “unlimited” service to try to ease MoviePass’ cash shortfalls. These tactics included directing MoviePass employees to “throttle” subscribers who most frequently used the service to buy movie tickets, thereby inhibiting their ability to use the MoviePass service.
In addition to the fraud scheme related to HMNY and MoviePass, Farnsworth conspired with others to unjustly enrich themselves by falsely inflating the price of Vinco stock. Specifically, Farnsworth and his co-conspirators concealed from investors the true facts relating to the business and diverted the proceeds of the conspiracy for their personal use and benefit. Farnsworth and his co-conspirators took steps to conceal the conspiracy from regulators, law enforcement, investors, and the media.
Farnsworth pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud. He faces a maximum penalty of 20 years in prison on the securities fraud count and five years in prison on the conspiracy to commit securities fraud count. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New York Field Office is investigating the case.
Trial Attorneys Lauren Archer, Kate McCarthy, and Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section provided substantial assistance with the investigation and prosecution.
Campaign Treasurer for Candidate for Brooklyn Borough President Pleads Guilty to Scheme to Defraud New York City’s Campaign Finance BoardRead the Press Release
Earlier today, in federal court in Brooklyn, Erlene King pleaded guilty to wire fraud in connection with her attempt to steal funds from New York City’s Campaign Finance Board (CFB). Today’s proceeding was held before United States District Judge Carol Bagley Amon. When sentenced, King faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Instead of playing by the rules New York City established for free and fair elections, the defendant attempted to use the city’s matching funds program to give the campaign an unfair advantage,” stated United States Attorney Peace. “My Office and our law enforcement partners are focused on rooting out corruption in our electoral system to ensure that all candidates are operating on a level playing field.”
Mr. Peace expressed his appreciation to the CFB for its cooperation and assistance during the investigation.“Erlene King deprived New York City residents of a fair election by attempting to manipulate hundreds of thousands of dollars in donor contributions to unlawfully favor her candidate,” stated FBI Assistant Director in Charge Dennehy. “King abused her position as a campaign treasurer and attempted to profit from exploiting a system designed to represent the voices of the city. The FBI remains steadfast in its mission to eliminate any source of corruption polluting our city’s democratic processes.”
CFB Overview
The CFB oversees and administers a publicly funded campaign finance system in connection with municipal elections in New York City. This includes a “matching funds program” that provides eligible candidates with public funds based on the number and amount of certain donor contributions. According to the CFB, the program “empowers New Yorkers in every neighborhood to make their voices heard in city elections.” In addition, the CFB maintains that “by encouraging candidates to raise small-dollar contributions from average New Yorkers, the program increases engagement between voters and those who seek to represent them.”
Candidates running for the Office of the Brooklyn Borough President in the 2021 election cycle were eligible to participate in the CFB’s matching funds program if they met certain criteria. Among other things, to be eligible to receive public funds, candidates were required to meet a two-part fundraising threshold. Specifically, a candidate had to collect a minimum number of donations and raise a minimum amount of money from New York City residents before the CFB paid any matching funds.
For candidates who ran for the Office of the Brooklyn Borough President during the 2021 election cycle, candidates received up to $8 in matching funds for each $1 of eligible contributions, up to $175 per contributor. If a candidate received an eligible contribution of $175, then that candidate could collect up to $1,400 in matching funds. In total, the matching funds program provided up to $1,457,777 in public matching funds to a candidate for the Office of the Brooklyn Borough President. Because campaigns for Brooklyn Borough President during the 2021 election cycle needed to raise at least $50,000 in eligible contributions to receive any matching funds, any candidate who was eligible to receive matching funds necessarily received at least $400,000 in matching funds from the CFB.
The SchemeKing served as the campaign treasurer for a candidate who ran in a primary for the Office of the Brooklyn Borough President during the 2021 election cycle (Candidate #1). King admitted that she obtained fraudulent donations for the purpose of inducing the CFB to provide matching funds to Candidate #1’s campaign. A number of those contributions, which were obtained at King’s direction, were fraudulent nominee contributions made in the names of individuals who either did not personally fund the contributions or were later reimbursed for their contributions (i.e., straw donors). For example, King used CashApp to send money to intermediaries and instructed them to distribute the money to fund contributions from straw donors to Candidate #1. Other fraudulent contributions were made in the names of individuals whose identities were stolen and who had not personally contributed to Candidate #1. The CFB ultimately determined that the campaign submitted fictitious records and did not pay any public matching funds to the campaign.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Eric Silverberg are in charge of the prosecution, with the assistance of Paralegal Specialist Rachel Friedman.
The Defendant:
ERLENE KING
Age: 71
Brooklyn, NY
E.D.N.Y. Docket No. 24-CR-374 (CBA)Burlington, Vermont Man Sentenced to 2 Years in Attempted Drug Trafficking CaseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on January 7, 2025, Raul Velez, 55, of Burlington, Vermont, was sentenced by United States District Judge Mae D’Agostino to a term of 24 months’ imprisonment to be followed by a 3-year term of supervised release. Velez previously pleaded guilty to attempted possession of a controlled substance with intent to distribute.
According to court records, in March 2024, Velez arranged to obtain more than 1,000 grams of cocaine via the U.S. Mail. The package containing that cocaine, which was addressed to Velez at a hotel in Shelburne, Vermont, was intercepted by law enforcement. Investigators then coordinated a controlled delivery of the parcel, which did not contain any cocaine, to Velez on March 7, 2024. Following that delivery, Velez obtained the parcel from his hotel room in Shelburne. Velez intended to distribute the cocaine that he thought was inside of the package, which was roughly one kilogram in total weight.
United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the U.S. Postal Inspection Service and the Shelburne Police Department.
The case was prosecuted by Assistant U.S. Attorneys Barbara Masterson and Zachary Stendig. Velez was represented by Assistant Federal Public Defender Emily Kenyon.
Bridgeport Felon Sentenced to 70 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHACQUILLE JACKSON, 31, of Bridgeport, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 70 months of imprisonment, followed by three years of supervised release, for illegally possessing firearms.
According to court documents and statements made in court, on January 18, 2023, law enforcement spotted Jackson, who had an outstanding arrest warrant for a domestic violence incident, driving a car with license plates from another vehicle. After stopping, Jackson ran from the car with a gun in his hand. Officers apprehended Jackson and seized the handgun, which he had dropped. A search of Jackson’s person revealed approximately 87 grams of cocaine, 19 grams of crack cocaine, and $1,167 in cash, and a search of Jackson’s car revealed a semi-automatic handgun, an extended magazine loaded with 18 rounds of ammunition, and a digital scale.
Jackson’s criminal history includes felony convictions in Connecticut for firearm, narcotics, robbery, burglary, and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm that has moved in interstate or foreign commerce.
Jackson has been detained since his arrest. On September 18, 2024, he pleaded guilty to unlawful possession of firearms by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Bridgeport Police Department, and the Fairfield County Auto Theft Task Force. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham through 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. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Batesburg-Leesville Woman Sentenced to Federal Prison for Wire Fraud ConspiracyRead the Press Release
COLUMBIA, S.C. — Julia Renae Mullinax, 43, of Batesburg-Leesville, was sentenced to 13 months in federal prison after pleading guilty to conspiracy to commit wire fraud.
Evidence presented to the court showed that Mullinax participated in a wire fraud conspiracy to defraud Lowe’s Home Improvement by purchasing items on the commercial credit accounts of local businesses while posing as the authorized representative of those accounts. Mullinax and others perpetuated this fraudulent scheme at multiple Lowe’s stores in South Carolina and other states in the southeast from 2023 to 2024.
United States District Judge Joseph F. Anderson, Jr. sentenced Mullinax to 13 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Additionally, Mullinax was ordered to pay Lowe’s $47,234.10 in restitution.
This case was investigated by the United States Secret Service and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Scott Matthews is prosecuting the case.
Ada Resident Sentenced for Assaulting Tribal OfficerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Curtis Ray McClendon, III, age 41, of Ada, Oklahoma, was sentenced to 120 months in prison for one count of Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country.
The charge arose from an investigation by the Bureau of Indian Affairs, the Oklahoma State Bureau of Investigation, the Chickasaw Nation Lighthorse Police Department, and the Ardmore Police Department.
On June 7, 2024, McClendon pleaded guilty to the charge. According to investigators, on November 6, 2023, McClendon struck a Chickasaw Lighthorse officer multiple times on the head with a flashlight, causing lacerations. The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. McClendon will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
6 January 2025
Whittier Man Sentenced to over 10 Years in Prison for Selling Ghost Guns and Planning Armed Robbery of Federal InformantRead the Press Release
LOS ANGELES – A Whittier man was sentenced today to 121 months in federal prison for operating an unlicensed firearm dealing business that sold guns lacking serial numbers, commonly known as “ghost guns,” and for planning the armed robbery of a confidential federal informant.
Salvador Lopez, 24, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $2,000 in restitution.
Lopez pleaded guilty in October 2024 to one count of engaging in the business of dealing firearms without a license and one count of armed robbery of money of the United States while using a dangerous weapon.
“Selling firearms illegally and putting more untraceable weapons into the community shows a blatant disregard for the law and puts the safety of our citizens at great risk,” said United States Attorney Martin Estrada. “This defendant’s lengthy sentence should serve as a warning to others that law enforcement will act decisively to prevent violent gun crime.”
Ivan Quintos, 27, of Azusa, another defendant charged in this case, also pleaded guilty in October 2024 to one count of firearms trafficking. His sentencing hearing is scheduled for April 14, when he will face up to 15 years in federal prison.
The two remaining defendants charged in this case – Mark Perez, 23, and Zachary Dry, 24, both of Henderson, Nevada – pleaded guilty to criminal charges in October 2024. Dry is scheduled for sentencing on February 3. Perez’s sentencing hearing is scheduled for March 24.
Perez and the other defendants used Instagram to coordinate and sell more than five dozen firearms. Some of the defendants used Instagram – direct messages and public posts – to sell the firearms, which included “ghost guns” and “Glock switches” as well as firearms with obliterated serial numbers and firearms that had been stolen. The illegal firearm sales occurred in North Hollywood, Las Vegas, and elsewhere.
In total, Lopez sold or helped to sell 15 firearms to law enforcement agents and those working for them. Neither Lopez nor his codefendants are federal firearms licensees.
Later, Lopez agreed to sell firearms to a confidential informant working for federal law enforcement. Instead of following through with the transaction, Lopez messaged a minor with instructions to rob the informant at gun point. The minor and his accomplices not only robbed the informant of $5,000, but they also robbed the informant’s personal cellphone and vehicle. Lopez then received a cut of the robbery’s proceeds.
Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of repeat offenders engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Baldwin Park Police Department; and the Los Angeles Police Department investigated this matter.
Assistant United States Attorney William M. Larsen of the General Crimes Section prosecuted this case.
Wausau Man Sentenced to 12 ½ Years for Leading Methamphetamine and Cocaine Trafficking OrganizationRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Quo Vadis Lewis, 40, Wausau, Wisconsin, was sentenced on January 3, 2025, by U.S. District Judge William M. Conley to 150 months in federal prison for conspiring to distribute 500 grams or more of methamphetamine and 500 grams or more of cocaine. He was also sentenced for possessing firearms as a felon. The prison term will be followed by 5 years of supervised release. Lewis pleaded guilty to these charges on October 9, 2024.
In February 2022, Central Wisconsin Narcotics Task Force officers began investigating a methamphetamine and cocaine trafficking organization operating in Wausau, Wisconsin. The multi-year investigation involved the seizure of drug-laden packages from the mail, controlled purchases of narcotics, and seizures of firearms and large quantities of drugs from residence searches. From the investigation, officers believe the drug trafficking organization was distributing kilograms quantities of methamphetamine and cocaine.
Quo Vadis Lewis, as well as Tommie Haney, were identified as the local leaders of the drug trafficking organization. Lewis was responsible, in part, for bringing in large quantities of methamphetamine and cocaine to the Wausau area from out-of-state drug suppliers. One of the ways the drugs were brought into Wisconsin was through the mail. The investigation showed that a series of packages were mailed from California to addresses associated with Lewis in Wausau during 2021 and 2022. In March 2022, US Postal Inspectors seized two 11-pound packages sent from California to Lewis’ apartment. One of the packages was searched and contained approximately 10 pounds of methamphetamine.
On June 28, 2023, officers with the Central Wisconsin Narcotics Task Force executed search warrants at the residences of some of the primary members of the drug trafficking organization, including Lewis. Officers found three handguns, a loaded extended magazine, quantities of ammunition, cash, and an ounce of cocaine at Lewis’ residence. Officers found additional drugs and a gun during the search of the coconspirators’ residences. Evidence of Lewis’ DNA was found on all three of the firearms found at his residence. He is prohibited from legally possessing firearms and ammunition because of multiple prior felony convictions.
At sentencing, Judge Conley highlighted that Lewis played a key role as a leader of a drug trafficking organization involved with “incredible” quantities of methamphetamine and cocaine. Judge Conley determined that a significant sentence for Lewis was necessary to protect the public.
Eight others were also charged in connection with this drug trafficking organization. Teala L. Kumbera was convicted of conspiracy to distribute cocaine and methamphetamine and sentenced on November 14, 2024, to 54 months in federal prison. Shandel L. Mohr was convicted of conspiracy to distribute cocaine and methamphetamine and sentenced on December 3, 2024, to 12 months and 1 day in federal prison. Tommie Haney, Edwin Lewis, Craig C. Gates, and Troy A. Olsen have all pleaded guilty and are scheduled to be sentenced in the coming months. Samuel A. Teague is scheduled to enter a guilty plea on January 6, 2025, and Shelby Gutch is scheduled to enter a guilty plea on January 7, 2025.
The charges against Lewis were the result of an investigation conducted by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Wisconsin State Patrol, Lincoln County Sheriff’s Office, Marathon County Sheriff’s Office, Portage County Sheriff’s Office, Everest Metro Police Department, Wausau Police Department and Wisconsin National Guard Counter Drug Program. The Marathon County District Attorney’s Office also assisted with the investigation. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations.
United States Attorney Nikolas Kerest Submits ResignationRead the Press Release
Burlington, Vermont – United States Attorney Nikolas Kerest announced today that he will resign effective January 20, 2025.
Following his nomination by President Biden and confirmation by the Senate, Mr. Kerest has served as the United States Attorney for the District of Vermont since December 10, 2021, leading the United States Attorney’s Office’s 51 employees, in the enforcement of federal criminal and civil laws in the state. Prior to becoming United States Attorney, Mr. Kerest served as an Assistant United States Attorney in both the criminal and civil divisions for eleven years, including 4.5 years as the Chief of the office’s civil division.
Mr. Kerest stated, “Representing the United States as a member of the U.S. Attorney’s Office team for over fourteen years and as its leader for the past three years has been the highlight of my career. Public service is a gift, and I will forever be grateful to have had the chance to work towards a better Vermont – one that is safer for its residents, one in which civil rights are upheld, and one in which the rule of law is respected. The criminal and civil Assistant U.S. Attorneys, administrative staff, and support staff who constitute the small but mighty U.S. Attorney’s Office for the District of Vermont are unmatched public servants, and I know they will continue to pursue justice without fear or favor and achieve great results in the years ahead.”
During the past three years, the United States Attorney’s Office redoubled its efforts to address violent crime. With strong law enforcement partnerships across Vermont, the Office prosecuted illegal gun possessions at an increased rate. In particular, the U.S. Attorney’s Office supported the efforts of the Chittenden County Gun Violence Task Force, worked hand in hand with Homeland Security Investigations (HSI) and other law enforcement partners in prosecutions arising out of Bennington and Rutland counties, and provided significant prosecutorial resources to address violence in the Northeast Kingdom. Examples of the Office’s steadfast approach to curbing violent crime are the prosecutions of Everett Simpson, Lawrence Jackson, Carl Martin, Dominique Troupe, Deven Moffitt, and Sean Fiore. In addition to increased violent crime prosecutions, the U.S. Attorney’s Office initiated and promoted safe gun storage in partnership with the Vermont State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the UVM Medical Center, and other partners supporting the www.gunsafevt.org website.
Under Kerest’s leadership, the U.S. Attorney’s Office focused on enforcing federal civil rights laws, as well as educating Vermonters about their rights under these laws. Through its United Against Hate program, the Office provided outreach and education about federal civil rights laws to high school students all around Vermont. The Office also maintained strong relationships with Vermont’s faith communities by providing regular civil rights outreach. In addition, the Office’s civil rights program has paid close attention to civil rights violations in Vermont schools. The Twin Valley and Stepping Stones settlements are specific examples of this important work.
For the past three years, the U.S. Attorney’s Office has also taken significant steps to address elder financial fraud in Vermont. The prosecutions of Nicholas Melanson and Nasir Hussain are prime examples of the Office holding elder fraud perpetrators responsible for their harmful conduct. In addition, in partnership with the U.S. Secret Service, HSI, and Diplomatic Security Service, Mr. Kerest led numerous events providing education and tips to avoid becoming a victim to Vermont’s elder community.
Under Kerest’s leadership, the U.S. Attorney’s Office’s civil division continued to be a nationwide leader. On the defensive side of the docket, the Office successfully represented the Federal Highway Administration against challenges to the construction of Burlington’s Champlain Parkway. The civil division’s work fighting fraud and recovering damages continued to set the standard for small-sized U.S. Attorney’s Offices. In particular, the office was responsible for a ground-breaking Controlled Substances Act settlement with eBay, along with recoveries from NextGen, an electronic health records company, and Vermont defense contractors (Preci, Galvion, and Revision).
Mr. Kerest also thanked the many federal, state, county, and local law enforcement agencies, as well as community groups who partner with the United States Attorney’s Office. “The partnerships the U.S. Attorney’s Office enjoys throughout Vermont are vital to the success of our work and the work of all law enforcement. Support for law enforcement and collaboration is necessary to achieve a better Vermont. I am thankful for all of our partners and will look back fondly on the relationships fostered and created during my tenure as U.S. Attorney.”
First Assistant United States Attorney Michael Drescher, who has served the Office as a civil and criminal AUSA for over 22 years, will become Acting United States Attorney for the District of Vermont upon Mr. Kerest’s departure.
Kerest has not yet determined his future professional plans.
United States Attorney Joshua S. Levy Announces DepartureRead the Press Release
BOSTON – United States Attorney Joshua S. Levy announced today that, effective January 17, 2025, he will be stepping down as the United States Attorney for the District of Massachusetts. U.S. Attorney Levy tendered his resignation to United States Attorney General Merrick Garland this afternoon.
U.S. Attorney Levy became the Acting U.S. Attorney on May 19, 2023. Levy, who was twice nominated by President Biden for the permanent role as U.S. Attorney, was appointed U.S. Attorney by Attorney General Garland in November 2024. As U.S. Attorney, he served on two subcommittees of the Attorney General’s Advisory Committee – White Collar Crime, and Terrorism & National Security – and was a member of the Human Trafficking Work Group. U.S. Attorney Levy also served as the Northeastern U.S. representative for the U.S. Attorney community on the Domestic Terrorism Executive Committee.
“Serving as the U.S. Attorney for the District of Massachusetts has truly been the highlight of my career,” said U.S. Attorney Levy. “Every day over the past three years, I have witnessed firsthand the unwavering dedication and extraordinary skill of the federal prosecutors, support staff, and law enforcement partners who work tirelessly to uphold the rule of law, keep our communities safe and protect civil rights. My core touchstones as the leader of this office have been to serve with the highest integrity and a commitment to pursue justice in every case by following the facts and the law, without fear or favor.”
U.S. Attorney Levy continued, “We have brought some incredibly important cases these last three years that have improved the lives of the people of Massachusetts. As I reflect on my tenure, I am equally proud of the thoughtful, deliberative process engaged in by our team whenever making the grave decision about whether to bring federal charges to ensure it is consistent with the principles of federal prosecution.”
Under U.S. Attorney Levy’s leadership, the office brought several high impact cases including charges in the death of Sandra Birchmore; the $650 million resolution of criminal and civil charges against McKinsey & Company for their illegal conduct in support of Purdue Pharma’s marketing of opioids; and charges against two men for their alleged involvement in a scheme to procure sensitive drone technology to Iran, which resulted in the deaths of three U.S. soldiers. Under Levy’s tenure, Jack Teixeira was sentenced to 15 years in prison for leaking highly classified documents, and seven former employees of eBay were sentenced for cyberstalking a Massachusetts couple. U.S. Attorney Levy also oversaw the $574 million-dollar criminal and civil enforcement action against Raytheon for overcharging government contracts. During U.S. Attorney Levy’s tenure, the office solidified its position as the most successful U.S. Attorney’s Office in the country in terms of False Claims Act recoveries, with over $1 billion recovered in 2024 alone.
One of the most important series of prosecutions in the last three years were brought by the newly created Human Trafficking and Civil Rights Unit. This dedicated team of lawyers, support staff and victim witness advocates has secured convictions and lengthy sentences against 20 individuals since the unit was formed in 2022, including numerous convictions of people who trafficked minors or used force, fraud or coercion to engage in trafficking. The office’s other notable achievements under Levy’s leadership as U.S. Attorney included impact prosecutions in the areas of public corruption, child exploitation, hate crimes, police accountability, fentanyl trafficking and gun violence, just to name a few.
Today’s announcement marks the end of U.S. Attorney Levy’s second tenure with the Department of Justice. In 1997 he served as an Assistant U.S. Attorney in the Criminal Division’s Economic Crimes Unit. Levy left the Department of Justice in 2004 to become a partner at Ropes & Gray, where he served as co-chair of the firm’s 325-lawyer Litigation and Enforcement practice, co-Managing Partner of Ropes & Gray’s Boston office and co-chair of the firm’s Diversity, Equity and Inclusion Committee. In 2022, Levy was inducted into the American College of Trial Lawyers in recognition of his courtroom advocacy. Immediately prior to becoming the Acting U.S. Attorney, Levy served as the First Assistant U.S. Attorney from January 2022 through May 2023.
First Assistant U.S. Attorney Mary B. Murrane, who has been with the Department of Justice for 16 years, will assume the role of Acting U.S. Attorney following U.S. Attorney Levy’s departure.
U.S. Attorney, FBI Announce Federal Charges Against Zuni Man for MurderRead the Press Release
ALBUQUERQUE – A Zuni man has been charged with second degree murder in Indian Country.
The indictment alleges that on or about December 1, 2024, Glendon Laate, a member of the Zuni Pueblo, allegedly killed John Doe with malice aforethought by shooting him with a homemade firearm.
Laate will remain in custody pending trial, which has not been scheduled. If convicted, Laate faces a minimum of 10 years and up to life in prison.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Caitlin L. Dillon is prosecuting the case.
View the Indictment (Laate).pdfAn 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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U.S. Attorney, FBI Announce Federal Charges Against Three Individuals in Kidnapping and Assault CaseRead the Press Release
ALBUQUERQUE – Three individuals face federal charges for allegedly kidnapping a woman, with one defendant facing multiple assault charges, including the use of a firearm.
The indictment alleges that Michael Clubfoot, 45, Carlyn Calavaza, 41, both of Zuni, and Alexis Mahooty, 40, of Pine Hill, all enrolled members of the Zuni Pueblo, unlawfully kidnapped Jane Doe in 2024, and held her for ransom, reward, and otherwise. Clubfoot faces additional charges of assault with a dangerous weapon, assault resulting in serious bodily injury, use of a firearm during a crime of violence, and being a felon in possession of a firearm and ammunition.
Clubfoot will remain in custody pending trial. Calavaza and Mahooty, will remain in the third-party custody pending trial, which is currently set for February 10, 2025.
If convicted, Clubfoot, Calavaza and Mahooty face any term of years up to life in prison for the kidnapping charge.
U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Eliot Neal is prosecuting the case.
View the Indictment (Clubfoot et al.).pdfAn 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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