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17 July 2024
Missouri Man Sentenced to 8 Years in Prison for Possessing Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a Warren County, Missouri man who possessed child sexual abuse material on phones and a laptop to 96 months in prison.
Judge Autrey also ordered Jacob D. Beauchamp, 46, to pay $51,000 in restitution to victims who appeared in the images and videos he collected.
Beauchamp admitted possessing 146 images containing child sexual abuse material on his Apple iPhone, about 1,800 on his Samsung phone and numerous images that were running as a screensaver on his laptop.
Beauchamp, of Wright City, pleaded guilty in April to one count of possession of child pornography.
The Wright City Police Department and the St. Charles County Cyber Crime Task Force investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Memphis Man Pleads Guilty to Sex Trafficking Operation That Victimized Three Minors and Two AdultsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MACEO ROBERTS (“ROBERTS”), age 25, from Memphis, Tennessee, pleaded guilty today before United States District Judge Susie Morgan to conspiracy to commit sex trafficking of minors and others by force, fraud, and coercion, in violation of Title 18, United States Code, Sections 1594(c), 1591(a)(1), 1591(a)(2), 1591(b)(1), and 1591(b)(2).
According to court documents, in about Summer 2020, ROBERTS told his co-conspirators, Dominique Peeples and Jeremy Talbert, that he was making a lot of money acting as a pimp and offered to teach them how to be pimps, as well. After Peeples and Talbert agreed, ROBERTS “gave” Minor Victim 2, a minor female born in 2003 who had previously performed commercial sex acts under ROBERTS’s direction, to Peeples. Thereafter, Minor Victim 2 introduced Talbert to Minor Victim 3, a minor female born in 2003, who began performing commercial sex acts under Talbert’s direction.
During Summer 2020, ROBERTS, Peeples, and Talbert travelled throughout the southern United States, including the New Orleans area, with multiple females, including Minor Victim 2, Minor Victim 3, and Adult Victim 1, for the purpose of having the females engage in commercial sex acts. ROBERTS taught Peeples and Talbert techniques to oversee and advertise a prostitution operation, including the amount to charge. ROBERTS also reminded them to keep all of the proceeds. During this time period, including while in New Orleans, Adult Victim 1 performed numerous commercial sex acts at the direction and supervision of ROBERTS; Minor Victim 2 performed numerous commercial sex acts at the direction and supervision of Peeples; and Minor Victim 3 performed numerous commercial sex acts at the direction and supervision of Talbert.
In about October 2020, ROBERTS assumed control over Minor Victim 3, and required her to work approximately fifteen hours per day performing commercial sex acts and to give him all the money she earned. ROBERTS beat Adult Victim 1 in front of Minor Victim 3 to show Minor Victim 3 what would happen if she did not follow his instructions. ROBERTS also provided drugs and alcohol to Minor Victim 3 and Adult Victim 1 to control their behavior.
In about October 2020, Talbert recruited Minor Victim 1, who was a fourteen-year-old female, to engage in commercial sex acts under his direction. In about late October 2020, ROBERTS, Peeples, Talbert, Adult Victim 1, Minor Victim 1, and Minor Victim 2 travelled to New Orleans, where they stayed for several months. During this time, ROBERTS, Peeples, and Talbert supervised the commercial sex work of Adult Victim 1, Minor Victim 2, and Minor Victim 1, respectively. Additionally, ROBERTS imposed rules and quotas that Adult Victim 1 had to follow and, when she did not meet those quotas or expressed reluctance, ROBERTS threatened to beat and shoot her.
In at least January 2021, ROBERTS beat Adult Victim 1 so badly that she requited hospitalization in a New Orleans area facility. After Adult Victim 1’s hospital discharge, ROBERTS and Peeples told Adult Victim 1 and Minor Victim 2 that they would bring them home to Memphis. Instead, ROBERTS and Peeples drove them to Houston and forced them to engage in commercial sex acts until they finally escaped. ROBERTS and Peeples then returned to Memphis, found Adult Victim 1 and Minor Victim 2, and beat and threatened them.
Additionally, in about late January 2021, ROBERTS met and began recruiting Adult Victim 2 to perform commercial sex acts under his direction. Adult Victim 2 did so until about April 2022. During that time, she performed numerous commercial sex acts at ROBERTS’s direction in multiple locations, including New Orleans, Memphis, Houston, Dallas, Indianapolis, St. Louis, and Biloxi. Adult Victim 2 gave all, or most, of the money she received from the commercial sex acts she performed to ROBERTS. ROBERTS repeatedly beat, threatened, and victimized Adult Victim 2, including in November 2021 at a New Orleans area hotel, an event that was captured on a telephone recording. In about April 2022, shortly before his arrest, ROBERTS punched Adult Victim 2 so hard that he shattered her front teeth.
ROBERTS faces up to life imprisonment, supervised release after his term of imprisonment of between five years and life, a fine of up to $250,000, and a mandatory $100.00 special assessment fee. ROBERTS will also be required to participate in the sex offender registration and notification program and be ordered to pay restitution to the victims of his offenses. Sentencing before Judge Morgan has been scheduled for October 8, 2024.
Talbert and Peeples previously pleaded guilty to sex trafficking crimes. Talbert’s sentencing before Judge Africk is set for October 2, 2024 and Peeples’s sentencing is set for October 30, 2024 before Judge Vance.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni of the Financial Crimes Unit and Jordan Ginsberg, Supervisor of the Public Integrity Unit, are in charge of the prosecution.
Man Sentenced for Unlawful Firearm PossessionRead the Press Release
United States Attorney Susan Lehr announced that Tesluach Gatkuoth, 27, of Grand Island, NE, was sentenced July 17, 2024, in federal court in Omaha, Nebraska for being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Gatkuoth to 120 months’ imprisonment. There is no parole in the federal system. After Gatkuoth’s release from prison, he will begin a 3-year term of supervised release.
On April 8, 2022, Omaha Police Department officers were on routine patrol in a marked patrol vehicle when they observed a gray 2003 Lexus driving eastbound on Lake Street approaching north 26th Street. The vehicle turned south onto north 25th Street and did not come to a complete stop at the stop sign at the intersection of north 25th and Grant Street. The Lexus continued through the intersection of Patrick Avenue and north 25th Street where it violated a second stop sign by failing to come a complete stop.
As the vehicle turned onto Patrick Avenue, officers attempted to stop the vehicle by initiating their patrol vehicle’s overhead lights and sirens. These emergency signals remained active as the Lexus turned southbound and sped away. The Lexus eventually stopped near 26th and Blondo Street, at which time the driver of the vehicle, Gatkuoth, fled on foot.
Gatkuoth fled across the front yard of a residence at the 26th block of Blondo Street before forcing his way through the home’s front door. As Gatkuoth entered the residence, he closed the door on the officer before continuing down into the basement and entering a room. Once inside the room, Gatkuoth closed the door behind him and remained concealed within.
An officer maintained a position on the stairway and yelled commands for Gatkuoth to reveal himself. Moments later Gatkuoth opened the door, yelled at the officer, and then casually began to go to the ground per officer commands. Gatkuoth was eventually secured in handcuffs and placed in the back of a patrol vehicle. A protective sweep of the basement was performed, and an adolescent child exited the room where Gatkuoth had entered and barricaded himself. Officers subsequently found a fully loaded 9mm handgun with high-capacity magazine and obliterated serial number hidden in the child’s clothes hamper.
A criminal history check revealed that Gatkuoth had been previously convicted of felony offenses, including robbery for which he served several years in the Nebraska Department of Correctional Services beginning in 2015.
This case was investigated by the Omaha Police Department.
Luzerne County Man Charged with Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justis Shea, age 31, of Glen Lyon, PA, was indicted by a federal grand jury for unlawfully possessing a firearm as a convicted felon and for possession of that firearm in furtherance of a drug trafficking offense.
According to United States Attorney Gerard M. Karam, the indictment alleges that from on or about May 1, 2024, to on or about July 2, 2024, Shea possessed a Smith & Wesson M&P 15 rifle in Luzerne County, Pennsylvania, after having previously been convicted of a crime punishable by more than one year in prison. The indictment further alleges that Shea possessed that firearm in furtherance of a drug trafficking offense.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kingston Police Department, the Ashley Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James Buchanan is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is life imprisonment and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Los Angeles County Man Pleads Guilty to Identity Theft Offenses Committed While in Federal PrisonRead the Press Release
FRESNO, Calif. — Sean Lamont Wyatt, 46, of Los Angeles County, pleaded guilty today to identity theft and aggravated identity theft, United States Attorney Phillip A. Talbert announced.
According to court documents, in June 2021, 27 pages of victims’ personally identifiable information were found in Wyatt’s assigned inmate bunk at the federal prison in Atwater. Investigation revealed that while Wyatt was incarcerated, he used a contraband phone to call victims’ banks and creditors. In the phone calls, Wyatt used the victims’ names, dates of birth, addresses, and social security numbers to falsely identity himself and to add himself as an authorized user on the victims’ accounts. Wyatt did this to boost his own credit. Wyatt then used his boosted credit to apply for new credit lines.
This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Brittany M. Gunter is prosecuting the case.
Wyatt is scheduled to be sentenced on October 7, 2024. Wyatt faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for identity theft and a mandatory consecutive sentence of two years in prison for aggravated identity theft. 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.
Lexington Man Sentenced for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Lexington man, Khmari Smith, 21, was sentenced on Tuesday, by Chief U.S. District Judge Danny Reeves, to 32 years, for conspiracy and possession with intent to distribute methamphetamine and fentanyl and possession of firearms in furtherance of drug trafficking offenses.
In May 2023, law enforcement began investigating an individual distributing methamphetamine and fentanyl in Lexington and identified the vehicle being used to transport the drugs into the area. On July 10, 2023, law enforcement located the vehicle traveling from Detroit to Kentucky and observed the vehicle following another car and mirroring its movements, which led them to believe the vehicles were connected. Law enforcement conducted a traffic stop on both vehicles. Khmari Smith, and his brother and co-defendant, Khari Qunarll Smith, 23, were found in one vehicle, with no evidence of drugs. In the other vehicle, Smith’s co-defendant, Brianna Hanspard, 29, of Detroit, was found with 4.6 kilograms of methamphetamine and 199.7 grams of fentanyl. Hanspard admitted to entering into an agreement with Khmari Smith and others to transport drugs from Detroit to Lexington for payment.
Further investigation proved that Khari and Khmari Smith continued their drug distribution, from sources in Detroit. In August 2023, law enforcement searched their leased residences in Lexington. At the first residence they found 354.4 grams of fentanyl and 216.3 grams of methamphetamine; at the second, the found additional methamphetamine and fentanyl, as well as a drug processing room. Law enforcement also found 18 firearms at the first residence and 12 firearms at the second residence. Khmari Smith admitted that he received those firearms as payment for the drugs he distributed.
Khari Smith is scheduled to be sentenced at a date yet to be determined by the Court. Hanspard was previously sentenced to 84 months in prison.
Under federal law, Khmari Smith and Hanspard must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences.
The investigation was conducted by the DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Roger West prosecuted the case on behalf of the United States.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Laurens County drug trafficker sentenced to nearly 20 years in federal prisonRead the Press Release
AUGUSTA, GA: A Laurens County man has been sentenced to federal prison after pleading guilty to drug trafficking charges.
Ricky Rich, 42, of East Dublin, Ga., was sentenced to 228 months in prison after pleading guilty to Distribution of Fentanyl, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also ordered Rich to pay a $2,500 fine and to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Ricky Rich is a career offender with a long history of distributing illegal drugs in the middle Georgia area,” said U.S. Attorney Steinberg. “This substantial prison sentence holds him accountable while protecting the community from his criminal activity.”
As described in court documents and testimony, investigators from the Laurens County Sheriff’s Office, with assistance from the Drug Enforcement Administration and the Georgia Bureau of Investigation, identified Rich as a prolific drug distributor.
Investigators found large amounts of drugs at Rich’s home and that of a relative, including deadly fentanyl and drug paraphernalia. Rich was on parole for prior state drug trafficking charges at the time he entered federal custody.
As part of his plea agreement, Rich forfeited ownership of 19 illegally possessed firearms and ammunition seized during the searches. He also faces prosecution for related state charges.
“Last year, we lost approximately 110,757 people to drug poisonings – a majority from synthetic opioids such as fentanyl,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. “DEA will continue to bring to justice drug traffickers who drive addiction and destroy communities.”
“This sentence sends a clear message: We will not tolerate any person that brings poisonous drugs, like fentanyl, into our communities,” said Georgia Bureau of Investigation Director Chris Hosey. “The GBI will continue to work with our local, state, and federal partners to remove illegal drugs from our streets.”
“As sheriff of Laurens County, it is my pleasure to work hand in hand with federal, state and local law enforcement to rid our community of dangerous drug traffickers,” said Laurens County Sheriff Larry Dean. “I commend each person involved in this investigation and thank them for a job well done. I have always said I will do everything in my power to eliminate illegal drugs in Dublin and Laurens County and I will continue to do so.”
The case was investigated by the Laurens County Sheriff’s Office, the Savannah Field Office of the Drug Enforcement Administration, and the Georgia Bureau of Investigation, and prosecuted for the United States by Assistant U.S. Attorney John P. Harper III.
Las Vegas Man Sentenced to Prison for Making Threats to Kill Family Member of Federal OfficialRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Tuesday to 46 months in prison to be followed by three years of supervised release for leaving a threatening voicemail and text messages threatening to kill a family member of a then member of the U.S. House of Representatives.
According to court documents, in the late evening of June 1, and the early morning of June 2, 2023, Anthony Lewis Hamelin, also known as “Tony Hamelin,” 52, called the spouse of a then-member of the U.S. House of Representatives and left a voicemail threatening to kill their son. Hamelin stated that he was enroute to his intended victim. Hamelin sent text messages stating anger and frustration with the U.S. Representative for carrying out his official duties. On June 2, 2023, Las Vegas Metropolitan Police Department officers and U.S. Capitol Police agents located Hamelin and arrested him.
On March 11, 2024, Hamelin pleaded guilty to one count of influencing, impeding, or retaliating against a federal official by threatening a family member, and one count of transmitting a communication containing a threat to injure. United States District Judge Gloria M. Navarro presided over the sentencing hearing.
United States Attorney Jason M. Frierson for the District of Nevada and Chief J. Thomas Manger, Chief of the U.S. Capitol Police made the announcement.
The U.S. Capitol Police and the Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Jacob Operskalski prosecuted the case.
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Large Scale Methamphetamine Trafficker and Illegal Alien from Mexico Sentenced to 16 Years in Federal PrisonRead the Press Release
BOISE – Sergio Cisneros-Guzman, a/k/a Salomon Hernandez Medina, 49, a Mexican citizen residing in Nampa, was sentenced to 16 years in federal prison for distributing methamphetamine and maintaining a drug-involved premises, U.S. Attorney Josh Hurwit announced today.
According to court records, the FBI-led Treasure Valley Metro Violent Crimes Task Force began investigating reports that Cisneros-Guzman was trafficking large amounts of methamphetamine and firearms out of his landscaping nursery, Rolling Hills Nursery, in Nampa. Law enforcement conducted six undercover controlled buys at Cisneros-Guzman’s nursery totaling approximately 2 kilograms of methamphetamine and also purchased an AR-style rifle with a high-capacity magazine. A search of Cisneros-Guzman’s nursery resulted in the seizure of an additional 100 grams of methamphetamine, eleven firearms, and $117,264 in cash. The government presented evidence at Cisneros-Guzman’s sentencing that when he sold the AR-style rifle with a high‑capacity magazine along with a half-pound of methamphetamine, he told the undercover officer, “One thing is for sure, if you are involved in a massacre, don’t tell no one who sold it to you. If you want to use it, make sure to clean your fingerprints from the rifle and the ammo.”
U.S. District Judge Amanda K. Brailsford also ordered Cisneros-Guzman to serve five years of supervised release following his prison sentence. Cisneros-Guzman, who pleaded guilty to the offenses, agreed to forfeit to the United States the Rolling Hills Nursery, $117,264 in U.S. currency, eleven firearms, magazines and high-capacity magazines, and miscellaneous ammunition. Because Cisneros-Guzman is a Mexican citizen who was illegally present in the United States, he will be deported after serving his 16-year sentence. At sentencing, Judge Brailsford stated that Cisneros-Guzman’s criminal activity involved all the major threats currently facing the United States: illegal immigration, drug trafficking, and illegally possessed and trafficked firearms.
“Removing this defendant from our community is a win for Idaho and reflects the strong partnerships between our office and federal and local law enforcement,” said U.S. Attorney Hurwit. “We will not tolerate criminals illegally entering our country and then enriching themselves by distributing dangerous drugs and trafficking firearms in Idaho.”
“Cisneros-Guzman operated with blatant disregard for the law and for the safety of all Idahoans,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Drugs and violence have devastated too many families in the Treasure Valley. When law enforcement combines resources and expertise, we can take back our communities from dangerous drug traffickers like Cisneros‑Guzman.”
“This is another example of the criminality happening in our community that has direct ties to Mexico and the Transcontinental Criminal Organizations that operate with impunity in Mexico and have seriously infiltrated communities throughout the United States,” said Canyon County Sheriff and National Sheriffs’ Association President Kieran Donahue. “Thankfully, here in the Treasure Valley, we have the METRO Task Force and other partnerships with local and federal law enforcement that focus on rooting out this type of criminal behavior.”
U.S. Attorney Hurwit commended the Treasure Valley Metro Violent Crimes Task Force for its efforts in this case. The Task Force is comprised of federal, state, and local agencies, including the FBI, the Caldwell Police Department, the Canyon County Sheriff’s Office, the City and County Narcotics Unit, the Canyon County Prosecutor’s Office, the Idaho Department of Correction, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, and U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO).
This case was prosecuted by Assistant U.S. Attorney Christian Nafzger and Special Assistant U.S. Attorney Kelsey Manweiler.
The Special Assistant U.S. Attorney was hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth.
This case was also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Lane County Man Who Negotiated Guns-for-Drugs Trade Sentenced to Federal PrisonRead the Press Release
EUGENE, Ore.—A Lane County, Oregon man who negotiated the trade of methamphetamine for 17 firearms was sentenced to federal prison today.
Mark Villanueva, 38, was sentenced to 120 months in federal prison and five years’ supervised release.
According to court documents, in August 2020, special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) obtained information that Villanueva was actively involved in distributing illegal narcotics, primarily methamphetamine, in and around Lane County, Oregon, and illegally possessed firearms as a convicted felon. In October and November of 2020, Villanueva sold methamphetamine to an undercover law enforcement officer on five separate occasions. During the fifth transaction, Villanueva began discussing his interest in buying or selling ammunition and firearms.
In December 2020 and continuing into January 2021, Villanueva negotiated the trade of multiple firearms for a large quantity of methamphetamine with his Los Angeles-based source of supply. However, on January 11, 2021, before Villanueva could complete the transaction, he was arrested in Florence, Oregon on an outstanding state arrest warrant. Despite his arrest, the guns-for-drugs trade moved forward and was completed on January 13, 2021, the same day Villanueva was released from state custody. Following his release was custody, Villanueva confirmed that 17 firearms had been traded for three pounds of methamphetamine with his source of supply in Los Angeles.
On January 13, 2021, Villanueva was charged by criminal complaint with distributing methamphetamine. Later, on May 20, 2021, a federal grand jury in Eugene returned an indictment charging Villanueva and three associates, including his then-wife and Los Angeles-based source of supply, with conspiracy to distribute and possess with intent to distribute methamphetamine, conspiracy to possess a firearm in furtherance of a drug trafficking crime, and possession of a firearm in furtherance of a drug trafficking crime.
On February 16, 2023, Villanueva pleaded guilty to conspiracy to possess with intent to distribute methamphetamine.
This case was investigated by ATF with assistance from Eugene Police Department. It was prosecuted by Adam E. Delph, Assistant U.S. Attorney for the District of Oregon.
Knoxville Man Sentenced to 20 Years for Attempting to Provide Material Support to ISISRead the Press Release
KNOXVILLE, Tenn. - On July 17, 2024, Benjamin Carpenter, 34, of Knoxville, Tennessee, was sentenced to 240 months in prison by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville. Following his incarceration, Carpenter will be on supervised release for 20 years.
On October 19, 2023, following an eight-day trial in United States District Court, a jury convicted Benjamin Carpenter, also known as “Abu Hamza,” of attempting to provide material support to ISIS, a foreign terrorist organization, in violation of Title 18, U.S.C. § 2339B.
The evidence presented at trial demonstrated that Carpenter served as the leader of Ahlut-Tawhid Publications, an international organization of pro-ISIS “munasirin” (i.e., supporters), dedicated to translating, producing, and distributing ISIS propaganda throughout the world. For years, Carpenter, using his alias “Abu Hamza,” published a large body of ISIS media, including his weekly newsletter entitled From Dabiq to Rome, a periodical that, among other pro-ISIS propaganda themes, celebrated the deaths of American soldiers, glorified suicide bombers, and called for open war against the United States and its Western allies. In 2020 and 2021, Carpenter contacted an individual he believed to be affiliated with ISIS’s central media bureau and provided translation services for a project intended to relaunch Al-Hayat Media Center, ISIS’s official foreign-language media arm. Unbeknownst to him, that individual was an FBI undercover employee who had infiltrated Carpenter’s group.
“For years, this defendant led a global digital media operation to distribute pro-ISIS propaganda, promoting the group’s radical message of terror and pushing it to every corner of the world,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this defendant’s conduct and the Justice Department’s commitment to identifying and holding accountable those who would provide material support to foreign terrorist organizations.”
“Combatting terrorism and keeping our communities safe are the highest priorities of the United States Attorney’s Office,” said United States Attorney Francis M. Hamilton III. “This case deals a serious blow to the expansion of ISIS and its broken message of hatred and senseless violence.”
“All across the country, the FBI is working fervently to identify and defeat those who support terrorist organizations. The protection of our citizens will remain a priority for our federal, state, and local law enforcement partners,” said Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation.
The case was investigated by the Knoxville Joint Terrorism Task Force, which is composed of federal, state, and local law enforcement agencies. It was led by the Knoxville FBI Field Office and involved the assistance of FBI offices from across the country.
Assistant U.S. Attorneys Kyle J. Wilson and Casey T. Arrowood of the Eastern District of Tennessee and Trial Attorney Charles J. Kovats, Jr. of the National Security Division’s Counterterrorism Section represented the United States at trial.
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Kindred and Related Entities Agree to Pay $19.428M to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon.
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island; Beaumont, Texas; and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama; Mobile, Alabama; South Bend, Indiana; and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016, and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama, location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. 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 health care programs. It 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.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section and our law enforcement partners.”
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice, Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al., Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home, Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al., Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Middle District of Tennessee, Western District of Kentucky, District of Kansas, District of Rhode Island, Southern District of Mississippi, Southern District of Alabama and Southern District of Ohio, with assistance from HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General.
The investigation and resolution of this matter 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 800-HHS-TIPS (800-447-8477).
Trial Attorney William E. Olson of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Settlement
Kindred and Related Entities Agree to Pay $19.428M to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon.
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island; Beaumont, Texas; and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama; Mobile, Alabama; South Bend, Indiana; and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016, and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama, location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. 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 health care programs. It 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.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section and our law enforcement partners.”
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice, Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al., Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home, Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al., Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Middle District of Tennessee, Western District of Kentucky, District of Kansas, District of Rhode Island, Southern District of Mississippi, Southern District of Alabama and Southern District of Ohio, with assistance from HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General.
The investigation and resolution of this matter 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 800-HHS-TIPS (800-447-8477).
Trial Attorney William E. Olson of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementKindred and Related Entities Agree to Pay $19.428 Million to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
NASHVILLE – Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, Georgia, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island, Beaumont, Texas, and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama, Mobile, Alabama, South Bend, Indiana, and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016 and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. 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 health care programs. It 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.
“This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section, and our law enforcement partners.”
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this Office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice, Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al., Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home, Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al., Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorneys’ Offices for the Middle District of Tennessee, the Western District of Kentucky, the District of Kansas, the District of Rhode Island, the Southern District of Mississippi, the Southern District of Alabama and the Southern District of Ohio, with assistance from the HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General.
The investigation and resolution of this matter 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 800-HHS-TIPS (800-447-8477).
Trial Attorney William E. Olson in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant United States Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
# # # # #
Kindred and Related Entities Agree to Pay $19.428 Million to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice PatientsRead the Press Release
PROVIDENCE, RI - Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (“Kindred”) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs, announced United States Attorney Zachary A. Cunha.
Gentiva’s hospice operations, headquartered in Atlanta, Georgia, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare, and SouthernCare New Beacon, to include a facility in Warwick, Rhode Island.
“My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said Zachary A. Cunha, United States Attorney for the District of Rhode Island. “Today’s result reflects a concerted effort by this Office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.”
“The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.”
The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims.
In addition, the settlement resolves allegations that certain Kindred, SouthernCare, and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island, Beaumont, Texas, and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama, Mobile, Alabama, South Bend, Indiana, and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare, and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims.
Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between October 1, 2016 and October 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC d/b/a SouthernCare New Beacon Hospice. 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 health care programs. It 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.
“Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said Henry C. Leventis, United States Attorney for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.”
“This office remains committed to safeguarding public monies,” said Michael A. Bennett, United States Attorney for the Western District of Kentucky. “I commend the work of all those in the Department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section, and our law enforcement partners.”
“Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said United States Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the Department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.”
“Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.”
“The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.”
The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800, and the State of Ohio will receive $23,618.68.
The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The share of the settlement to be received by the whistleblowers has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorneys’ Offices for the District of Rhode Island, Middle District of Tennessee, the Western District of Kentucky, the District of Kansas, the Southern District of Mississippi, the Southern District of Alabama, and the Southern District of Ohio, with assistance from the HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, the Office of the Tennessee Attorney General, and the Office of the Ohio Attorney General.
The investigation and resolution of this matter 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matters were handled by Trial Attorney William E. Olson in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant United States Attorneys Kevin Love Hubbard for the District of Rhode Island, Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama, and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
###
KC Sex Offender Pleads Guilty to Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who is a registered sex offender pleaded guilty in federal court today to sharing child pornography over the internet and to possessing more than 1,000 images and videos of child pornography.
Dennis Bruce Bean II, 44, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of transporting child pornography across state lines and on count of possessing child pornography.
Bean has a prior felony conviction for criminal sexual conduct and has been required to register as a sex offender.
According to court documents, the National Center for Missing and Exploited Children received three CyberTipline reports associated with Bean. In one of those reports, Google reported on Jan. 31, 2024, that approximately 1,442 files of child pornography had been uploaded to Bean’s Google Photos account during the previous two months.
On April 5, 2024, law enforcement officers executed a search warrant at Bean’s residence. Bean was arrested after he was found hiding in the back yard. Officers seized two cell phones and a one terabyte thumb drive. Investigators found at least 100 images and videos of child sexual abuse or child erotica on the phones. The thumb drive had more than 1,000 images and videos of child sexual abuse and child erotica.
Under federal statutes, Bean is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled on Dec. 3, 2024.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the Missouri State Highway Patrol and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department and Department of Education Announce Continuing Success of Student-Loan Bankruptcy Discharge ProcessRead the Press Release
The Justice Department, in close coordination with the Department of Education, announced today the continued and growing success of a process instituted in November 2022 for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. Data and information tracking the effectiveness of the process over the last year and a half demonstrate that it is achieving its goal of providing a more transparent, equitable, and streamlined mechanism for borrowers to request a discharge of their student loans in consumer bankruptcy cases. The process has translated into increasing numbers of eligible federal student loan borrowers seeking and obtaining debt relief under the Bankruptcy Code.
The Departments finalized new guidance in November 2022 that outlined a fairer, more accessible process to ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings, and facilitate identifying cases where discharge is appropriate. At the time, both Departments committed to an ongoing assessment of the guidance’s effectiveness. As part of that commitment, the Justice Department surveyed all 94 U.S. Attorneys’ Offices after the first year of implementation, and it recently repeated its survey to obtain updated information about use of the guidance.
The information that the Departments have collected from these surveys indicates that the new process continues to be a success, and that an increasing number of borrowers are seeking and receiving discharges of their federal student loan debts. In particular, since the process was announced a year and a half ago, the data collected by the departments reveals that:
- As anticipated, case filings have steadily increased as consumers have learned of the new process. A total of 588 new cases were filed from October 2023 to March alone, which is a 36% increase from the prior six-month period. And a total of 1,220 cases were filed from November 2022 through March, a significant increase from recent years. The departments expect this trend to continue.
- The vast majority of borrowers seeking discharge continue to benefit from the guidance. In cases decided by the courts from November 2022 through March, 98% have provided debt relief through full or partial discharge. And the overall number of court judgments providing full or partial discharge have continued to increase, with the number of such judgments over the last six months exceeding the number of judgments for the preceding 12 months.
- Borrowers continue to embrace the new process set forth in the guidance in large numbers. In filed cases, 96% of all borrowers are voluntarily using the streamlined process, which includes a standard attestation form that allows borrowers more easily to identify and provide relevant information in support of their discharge request.
- Multiple bankruptcy courts have adopted procedures recognizing the utility of the new process, aimed at further streamlining the procedures debtors must follow to obtain discharges.
“We are now able to evaluate the success of the student loan bankruptcy discharge guidance with a robust record of empirical information,” said Acting Associate Attorney General Benjamin C. Mizer. “The results are clear: this guidance has helped make the promise of a fresh start in bankruptcy a meaningful option for individuals weighed down by student loan debt.”
“Our clear, fair, and practical standards are helping struggling borrowers find relief that was previously out of reach,” said U.S. Under Secretary of Education James Kvaal. “This data should puncture the myth that struggling borrowers cannot discharge their student loan debt through bankruptcy. We will continue to work with our partners at the Department of Justice to make it simpler and easier for borrowers to get much-needed relief in the way it was intended.”
In addition to the internal data surveys, the Justice Department has taken other measures to support and evaluate the new guidance. The Justice Department has been consulting closely with the Department of Education on the process. Since the implementation of the guidance, a dedicated group of experts within the Justice Department's Civil Division also has collected input on the new process from consumer law groups, including the National Association of Consumer Bankruptcy Attorneys. Finally, the Civil Division has conducted trainings for Justice Department attorneys as well as members of the public, including training events supported by regional bar associations and the courts. The Department of Education also participated in training events hosted by regional bar associations, the American Bankruptcy Institute and U.S. Trustee Program, as well as at the annual meeting of the National Association of Chapter 13 Trustees, which included private attorneys as well as Chapter 13 trustees.
The Departments will continue to monitor the impact of the guidance to ensure that it is appropriately implemented and meets the goals it was designed to achieve.
Jury Finds Man Guilty of Aggravated Assault While Armed in Northwest D.C. AttackRead the Press Release
WASHINGTON – Darren Buchanan, 54, of Washington, D.C., was found guilty yesterday by a Superior Court jury of aggravated assault while armed and assault with a dangerous weapon, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). The verdict follows a four-day trial.
Superior Court Judge Michael O’Keefe has scheduled sentencing for September 20, 2024.
According to the government’s evidence, on July 2, 2019, the victim was riding on a Metrobus on Georgia Ave. NW when he kicked the defendant’s daughter. After the victim got off the bus, the defendant’s daughter called her mother—the defendant’s wife—to tell her about what happened. They all agreed to meet at a nearby establishment. Buchanan and his wife got into a taxi, and while they were on their way to meet their daughter, the defendant noticed an individual who matched the description of his daughter’s attacker. Buchanan exited the taxi, grabbed a large tree branch, and hit the victim with the tree branch multiple times. The victim —who was unarmed—began running from the defendant and eventually entered the market of a gas station located approximately ten minutes away from the location of the initial assault. Buchanan followed the victim for several blocks. As seen on video surveillance, the defendant peered through the window of the gas station market, saw the victim on the ground sweating and talking to himself, and entered. He then kicked the victim once in the chest and stomped on his head seven times. As a result, the victim was rendered unconscious, was transported to the hospital, and has been receiving treatment at a rehabilitation center, since the attack, for injuries related to the traumatic brain injury he suffered. After the defendant assaulted the victim, he boasted about his assault to law enforcement personnel during a police interview.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorneys Sabena Auyeung and Matthew Goldstein, who prosecuted the case.
Jury Convicts Snyder Man of Attempted EnticementRead the Press Release
A 38-year-old Abilene man who attempted to meet a “kid” for sex at a local park was convicted at trial, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jose Luis Espinoza, Jr., 38, was indicted in February. In May, he pleaded guilty before Magistrate Judge D. Gordon Bryant, Jr, but withdrew the plea before the District Court accepted it, citing intimidation by counsel. Following a two-day trial, a jury deliberated for just 30 minutes before convicting Mr. Espinoza of attempted enticement of a minor.
At trial, a Synder police officer testified that Mr. Espinoza was caught in an undercover online investigation.
On Feb. 5, the officer created a social media profile posing as a 13-year-old girl named “Maddi.” Later that day, Mr. Espinoza reached out to Maddi’s profile and immediately began discussing sexual activity and requesting photographs.
After receiving a photograph of what appeared to be a 13-year-old girl (but was in actuality an age-regressed photo of the officer), Mr. Espinoza asked Maddie how old she was.
“I am almost 14,” she replied.
Mr. Espinoza continued to send lewd and lascivious messages, asking Maddi about her body and her sexual history and detailing what he wanted to do to her.
“You really are a kid, aren’t you,” he wrote. “I’m a horny old guy… guys get locked up for talking to girls like you.”
Two days later, Mr. Espinoza instructed Maddi to meet him at a park near her house. Mr. Espinoza promised the child Skittles and whisky and said he would bring a towel, as Maddi would likely bleed following intercourse.
“Idk if I wanna do it I am scared,” she said.
Mr. Espinoza responded with a laughing emoji, then told her she was “so whiny” and needed to “relax.”
Mr. Espinoza was arrested at a park in Snyder on Feb. 7. Inside his car, officers found Skittles, whiskey, condoms, a towel, and a 9mm Glock handgun.
He now faces not less than ten years and up to life in federal prison.
The Snyder Police Department conducted the investigation with the help of the Federal Bureau of Investigation’s Dallas Field Office. Assistant U.S. Attorneys Ryan Redd, Callie Woolam, and Jeffrey Haag prosecuted the case. U.S. District Judge James Wesley Hendrix presided over the trial.
July Federal Grand Jury 2023-B Indictments AnnouncedRead the Press Release
United States Attorney Clint Johnson today announced the results of the July Federal Grand Jury 2023-B Indictments.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Pedro Balderas-Martinez. Unlawful Reentry of a Removed Alien. Balderas-Martinez, 40, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Aug. 2008 at or near Laredo, Texas. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Ammon Brisolara is prosecuting the case. 24-CR-234
Dakota Austin Clark. Possession of Child Pornography in Indian Country; Coercion and Enticement of a Minor; Production of Child Pornography (superseding). Clark, 23, of Grove and a member of the Cherokee Nation, is charged with possessing visual images depicting the sexual abuse of children including children under 12 years old. Clark is also charged with coercing and enticing a minor child under 18 years old to produce an image depicting sexually explicit conduct. The FBI and Grove Police Department are the investigative agencies. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-179
Christian Douglas Cook. Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country (Counts 1, 4, and 7 through 10); Assault with Intent to Commit Murder in Indian Country (Count 2); Assault by Striking, Beating, and Wounding in Indian Country (Misdemeanor) (Counts 3, 5, 6 and 11) (superseding). Cook, 24, transient and a citizen of Choctaw Nation, is charged with intentionally assaulting six different victims from May 2022 through Dec. 2023 with a dangerous weapon. He is further charged with intentionally assaulting a victim with intent to commit murder. Additionally, Cook is charged with beating or striking four more victims. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Scott Dunn is prosecuting the case. 24-CR-005
Alejandro Martinez-Lopez. Unlawful Reentry of a Removed Alien. Martinez-Lopez, 42, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Dec. 2013 at or near Nogales, Arizona. U.S. Immigration and Custom’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Christian Harris is prosecuting the case. 24-CR-233
Abner Asael Rivas-Aristondo. Alien Unlawfully in the United States in Possession of a Firearm and Ammunition; Possession of Fraudulent Immigration Documents; Aggravated Identity Theft. Rivas-Aristondo, 22, a Mexican national, is charged with knowingly being an alien and unlawfully possessing a firearm and ammunition. Further, Rivas-Aristondo knowingly possessed a counterfeit U.S. Permanent Resident Card and unlawfully used an identification belonging to someone else. Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Tulsa County Sheriff's Office are the investigative agencies. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 24-CR-232
Wendell Charles Roberson. Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine with Intent to Distribute; Possession of Fentanyl with Intent to Distribute. Roberson, 51, of Tulsa, is charged with knowingly possessing methamphetamine, cocaine, and fentanyl with intent to distribute. Homeland Security Investigations and the Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Attila Bogdan is prosecuting the case. 24-CR-225
Patrick Nile Starkey. Possession of an Unregistered Destructive Device; Use of an Explosive to Commit a Felony; Destruction of a Letter Box and Mail; Felon in Possession of Ammunition. Starkey, 57, of Tulsa, is charged with possessing an unregistered explosive device. He is further charged with knowingly using an explosive device on a mailbox and willfully destroying a mailbox. Additionally, Starkey is charged with possessing a firearm and ammunition, knowing he was previously convicted of felonies. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, the Oklahoma Highway Patrol, and the Osage County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Joshua M. Carmel is prosecuting the case. 24-CR-226
Illinois Carjacker Sentenced to 96 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Wednesday sentenced a man who helped carjack a woman in St. Louis to 96 months in prison.
Brandon Best, of Cahokia, Illinois, and at least two others drove from East St. Louis to the Soulard neighborhood of St. Louis on the evening of July 11, 2022, to steal cars. Shortly after midnight, a woman walked from a residence to her 2011 Kia Optima. A sedan pulled up, Best got out and ran toward the victim and her car. The victim was able to get in her car and close the door, but Best re-opened the door and either pulled her out or ordered her out as a second carjacker got into the driver’s seat. The second carjacker was armed with a pistol and Best admitted that he knew that fact.
The victim told investigators that the second carjacker pointed the gun at her and that someone told her not to move and demanded her keys.
About 15 minutes later at a gas station roughly one mile away, St. Louis Metropolitan Police Department officers spotted the stolen Kia. Best and the other carjacker fled in the car to Illinois. The chase ended back in St. Louis, where Best got out near Interstate 44 and Jefferson Avenue and ran across the interstate to try and elude officers. He was arrested behind a home with his 9mm pistol nearby.
Best, 21, pleaded guilty in April to a carjacking charge and a charge of possessing and brandishing a firearm in furtherance of a crime of violence.
These cases were investigated by the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Jason Dunkel prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hazleton Man Charged with Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Renan Tineo, age 22, of Hazleton, New Jersey, was indicted by a federal grand jury for firearm offenses.
According to United States Attorney Gerard M. Karam, the indictment charges Tineo with possessing a firearm while subject to a domestic violence protective order. The indictment further alleges that the firearm possessed by Tineo, a .38 caliber Charter Arms revolver, also had an obliterated serial number.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilkes-Barre Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James M. Buchanan is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.]
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Harrisburg Man Sentenced for Sending an Interstate Communication Containing a ThreatRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Thomas West, age 44, of Harrisburg, Pennsylvania, was sentenced yesterday by U.S. District Court Judge Christopher C. Conner for sending an interstate communication containing a threat. West had been in custody for over 5 months and was sentenced to time-served and a 1-year term of supervised release.
According to United States Attorney Gerard M. Karam, West previously admitted that on February 9, 2024, he sent a series of emails to the Office of Personnel Management (OPM) threatening to kill and injure employees of OPM and their relatives. In one email, West threatened to show up at an OPM office “with an A.R. 15 assault rifle that’s been converted to fully automatic.”
The case was investigated by the Federal Protective Service. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Georgia Man Found Guilty of Attempting to Entice A Minor to Engage in Sexual Activity and Interstate Travel with Intent to Engage in Illicit Sexual ConductRead the Press Release
TALLAHASSEE, FLORIDA – Dustin M. Hatcher, 39, of Sale City, Georgia, was found guilty by a federal jury of attempting to entice a minor to engage in sexual activity and interstate travel with intent to engage in illicit sexual conduct. The guilty verdict returned yesterday afternoon, at the conclusion of a day-and-a-half trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
Between February 15-17, 2024, multiple local, state, and federal law enforcement agencies conducted a proactive joint undercover investigative operation aimed at identifying and locating adults who were interested in engaging in sexual activity with minors. During this operation, an undercover investigator posted an ad on a website advertising that he and his (fictitious) 14-year-old niece—who another undercover investigator was posing as—were available for a sex encounter. The undercover investigator received messages from Hatcher indicating that he was interested in meeting and having sex with the undercover investigator and the (fictitious) niece. Hatcher agreed to meet up at a gas station in Tallahassee, Florida, where he was arrested by members of the Leon County Sheriff's Office and Homeland Security Investigation.
Sentencing is scheduled for October 4, 2024, at 3:00 p.m., at the United States Courthouse in Tallahassee before Chief United States District Judge Mark E. Walker. Hatcher faces a minimum mandatory sentence of 10 years in federal prison and a maximum of life imprisonment, followed by a term of 5 years to life of supervised release.
This conviction was the result of a joint undercover investigative operation conducted by the Leon County Sheriff’s Office, Florida Department of Law Enforcement, Homeland Security Investigations, and the Tallahassee Police Department. Assistant United States Attorney Justin M. Keen prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
GPS Manufacturer Agrees to Pay $2.6M to Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program LoanRead the Press Release
Hemisphere GNSS (USA) Inc., a satellite global positioning system manufacturer in Arizona that was purchased by CNH Industrial in 2023, has agreed to pay $2.6 million to settle allegations that it violated the False Claims Act by knowingly providing false information to apply for and receive forgiveness of a Paycheck Protection Program (PPP) loan to which the company was not entitled.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to millions of Americans suffering the economic effects caused by the pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other expenses. In 2021, Congress offered a second round of forgivable PPP loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications.
In February 2021, Hemisphere applied for a second round PPP loan and certified that it was eligible to receive the loan. Among other certifications, Hemisphere represented that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20% or more of an economic interest in Hemisphere. The company also certified that it did not retain as a board member a person who is a resident of the People’s Republic of China. At the time of its application, however, both of these certifications were allegedly false. For this reason, Hemisphere was not eligible for the second round PPP loan it received. After receiving this PPP loan, Hemisphere sought and received forgiveness of the total loan amount.
“PPP loans were an important but finite resource available to help eligible small businesses retain employees and keep their doors open,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible entities improperly sought PPP loans or forgiveness of those loans, they reduced the availability of this critical support for eligible businesses.”
“Legitimate PPP loans saved small businesses across America,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “But not everyone used the program as intended. Our office will continue to hold accountable those business and individuals who misused the PPP program, as the settlement announced today reflects.”
“The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said General Counsel Therese Meers of the Small Business Administration (SBA). “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by GNGH2 Inc. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. GNGH2, Inc. v. Hemisphere GNSS (USA) Incorporated, 2:22-cv-00224 (D. Arizona). GNGH2 will receive $260,000 as its share of the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Arizona, with assistance from SBA’s Office of General Counsel and Office of the Inspector General.
Trial Attorney John F. Schifalacqua of the Justice Department’s Civil Division and Assistant U.S. Attorney Anne E. Nelson for the District of Arizona handled the matter.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
SettlementFresno Man Sentenced for Illegally Possessing AmmunitionRead the Press Release
FRESNO, Calif. —Emmanuelle Padilla, 28, was sentenced to 63 months in custody today for being a felon in possession of ammunition and a probation violation, United States Attorney Phillip A. Talbert announced.
According to court documents, Padilla was found in possession of ammunition on Oct. 24, 2022. He has prior felony convictions for possessing controlled substances while armed and being a felon in possession of a firearm, and he is therefore prohibited from possessing firearms and ammunition.
This case was the product of an investigation by the Fresno Police Department and Federal Bureau of Investigation. Assistant United States Attorney Arin C. Heinz prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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.
Fresno Man Pleads Guilty to Embezzling $1.49 Million from his Employer in Nearly Decade Long SchemeRead the Press Release
FRESNO, Calif. — Gabriel Ruiz De Chavez, 46, of Fresno, pleaded guilty today to one count of wire fraud for defrauding his employer out of over $1.49 million, United States Attorney Phillip A. Talbert announced.
According to court documents, from 2004 to 2020, Ruiz De Chavez worked as an operations manager. Between 2012 and 2019, Ruiz De Chavez used his position to generate fake invoices purportedly created by genuine vendors for goods and services. He presented these fake invoices and corresponding checks made out to the real vendors to his employer for signature, and would then deposit the checks into his own personal bank account.
Ruiz De Chavez used the funds to pay for personal expenses including credit card payments, cash withdrawals, mortgage payments, vacations, and car loans. He was able to continue the scheme without notice because of the trusted position he held at the company. Between 2012 and 2019, Ruiz De Chavez created over 600 fake invoices and checks, causing at least $1,491,000 to be transferred into his account from his employer.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Cody S. Chapple is prosecuting the case.
Ruiz De Chavez is scheduled to be sentenced on November 6, 2024. He faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Founder of Casa Ruby Pleads Guilty to Stealing at Least $150,000 in COVID-Relief Funds for Personal UseRead the Press Release
WASHINGTON – Ruby Corado, 53, the founder of Casa Ruby, Inc., a Washington D.C.-based non-profit that provided services to the LGBTQ+ community, pleaded guilty today in U.S. District Court to diverting at least $150,000 in taxpayer-backed emergency Covid relief funds to private off-shore bank accounts for her personal use.
The plea was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.
Corado was charged by complaint on March 1, 2024, with bank fraud, wire fraud, laundering of monetary instruments, monetary transactions in criminally derived proceeds, and failure to file a report of foreign bank account.Corado pleaded guilty today to a one-count information charging her with wire fraud today before U.S. District Judge Trevor N. McFadden, who scheduled sentencing for January 10, 2025.
According to court documents, Corado, on behalf of Casa Ruby, received more than $1.3 million from the Paycheck Protection Program and the Economic Injury Disaster Loan program. Instead of using the funds as she promised, Corado stole at least $150,000 by transferring the money to bank accounts in El Salvador, which she hid from the IRS. During 2022, when financial irregularities at Casa Ruby became public, Corado sold her home in Prince Georges County and fled to El Salvador. FBI agents arrested Corado on March 5, 2024, at a hotel in Laurel, Maryland, after she unexpectedly returned to the United States.
Casa Ruby had claimed to provide housing services for homeless LGBTQ+ youth including transitional housing; to assist LGBTQ+ immigrants and connect them to attorneys; to provide social services such as case management and therapeutic mental health support for survivors of violence, and to assist with a wide array of services such as assisting with passport applications and certain visa applications. The non-profit’s website stated that Casa Ruby employed over 50 people and provided more than 30,000 social and human services to more than 6,000 people each year. At various times, Casa Ruby operated multiple shelters in Washington, D.C., that provided transitional housing.
Casa Ruby effectively ceased operations in July 2022 when it shuttered its transitional housing, failed to pay its employees, and faced eviction from multiple properties for failure to pay rent.
Wire fraud carries a maximum sentence of up to 30 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. Corado’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the FBI Washington Field Office and the D.C. Office of Inspector General. It is being prosecuted by Assistant U.S. Attorneys John Borchert, Madhu Chugh, and Kathryn Rakoczy.
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Fort Wayne Man Sentenced for Threatening CommunicationsRead the Press Release
FORT WAYNE –Jeffrey Stevens, 42 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to transmission of a threat in interstate commerce, announced United States Attorney Clifford D. Johnson.
Stevens was sentenced to 15 months in prison followed by 2 years of supervised release.
According to documents in the case, in November 2023, Stevens utilized a social media platform to transmit a message to the Fort Wayne Police Department. The message contained a threat to kill individuals of Jewish faith with the suggestion that there was nothing the local police could do about it.
This case was investigated by the Federal Bureau of Investigation and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney John Maciejczyk.
Former spouse of deceased U.S. Army veteran indicted for improperly claiming military benefitsRead the Press Release
SAVANNAH, GA: The divorced spouse of a deceased U.S. Army veteran has been indicted on federal charges for fraudulently claiming the veteran’s benefits.
Miranda Rachel Briggs, a/k/a “Miranda Rachel Fisher,” 33, of Rincon, Georgia, was indicted by a U.S. District Court Grand Jury on charges of Wire Fraud and Theft of Government Money, Property, or Records, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Conviction on the charges carries a statutory penalty of up to 20 years in prison, along with substantial financial penalties.
The indictment sets out a timeline of key events beginning in November 2015 when Briggs married G.B., a U.S. Army veteran, keeping her maiden name “Fisher.” Less than a year later, Briggs filed for divorce. Two weeks after the divorce was final, the U.S. Department of Veterans Affairs granted G.B.’s request to remove Briggs as a recipient of G.B.’s benefits.
Briggs filed for Chapter 7 bankruptcy in January 2018, certifying that she and G.B. were divorced. After G.B. died about two weeks later, Briggs filed for VA benefits, claiming to be G.B.’s surviving spouse. In April 2018 she also claimed to be G.B.’s spouse when applying for benefits from the Civilian Health and Medical Program of the Department of Veterans Affairs, receiving approximately $49,000 for medical care, and she received approximately $80,000 in benefits from the VA Dependency and Indemnity Compensation Program by claiming to be an eligible survivor of a qualifying veteran.
After the VA’s initial decision to deny her claim to G.B.’s VA survivor benefits, Briggs submitted additional paperwork claiming she and G.B. were married until his death in 2018. Based on this claim, the VA granted her the benefits. She then filed a petition in Chatham County Superior Court, changing her name from Miranda Rachel Fisher to Miranda Rachel Briggs. In April 2021, Briggs was named administrator of G.B.’s estate after claiming in Chatham County Probate Court to be G.B.’s surviving spouse.
In March 2023, the Chatham County Probate Court removed Briggs as administrator after finding she was divorced from G.B. at the time of his death and not eligible to act as an administrator of his estate.
Briggs is scheduled for an initial appearance in Magistrate Court in Brunswick on July 26.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case is under investigation by the U.S. Department of Veterans Affairs Office of Inspector General, and prosecuted for the United States of America by Assistant U.S. Attorney Patricia G. Rhodes and Special Assistant U.S. Attorney Michael Z. Spitulnik.
Former Mobile Pain Management Doctors Xiulu Ruan and John Patrick Couch ResentencedRead the Press Release
MOBILE, AL – Xiulu Ruan and John Patrick Couch, both formerly pain management doctors practicing in Mobile, Alabama, were resentenced to 252 months and 240 months, respectively.
In 2017, a jury convicted Ruan and Couch of numerous offenses connected to their former medical practice, Physicians Pain Specialists of Alabama, and their related pharmacy C&R Pharmacy. The jury found that Ruan and Couch committed numerous drug and fraud offenses connected primarily to the unlawful prescribing of powerful opioid medications including fentanyl, and also convicted Ruan of money laundering offenses related to the schemes. Following the trial, U.S. District Court Judge Callie V.S. Granade sentenced Ruan and Couch to 252 and 240 months, respectively, and ordered the defendants to pay full restitution of nearly $14 million to the victims. In addition, the United States forfeited millions of dollars in property, vehicles, and cash that Ruan and Couch obtained from their crimes.
The case was returned to Judge Granade for resentencing after the completion of appeals before the Supreme Court and the U.S. Court of Appeals for the Eleventh Circuit. Although the Eleventh Circuit vacated several of the convictions, the appellate courts affirmed the most substantial charges connected to the fraudulent scheme. On resentencing, Judge Granade again sentenced Ruan and Couch to 252 and 240 months in prison, respectively. All restitution and forfeiture aspects of the sentence were reimposed as well.
The Eleventh Circuit proceedings on remand from the Supreme Court were handled by AUSA Scott Gray, and the resentencing hearing was handled by AUSAs Scott Gray and Christopher Bodnar, both of the U.S. Attorney’s Office for the Southern District of Alabama.
Former Las Vegas City Councilwoman Charged for Charity Fraud SchemeRead the Press Release
A federal grand jury returned an indictment yesterday charging a former Las Vegas city councilwoman and current Nye County, Nevada, justice of the peace for her alleged scheme to defraud donors to a charity to memorialize police officers who lost their lives in the line of duty.
According to the indictment, Michele Fiore, 53, of Pahrump, Nevada, a then-Las Vegas city councilwoman, solicited donations to build a statue honoring Las Vegas police officers who were killed in the line of duty. Fiore allegedly promised donors that “100% of the contributions” would be used towards the creation of this statue. As alleged, Fiore did not use any of the tens of thousands of dollars in charitable donations for the statue of the fallen officer and instead converted the money to her personal use. The donations were used to pay her political fundraising bills and rent and were transferred to family members, including to pay for her daughter’s wedding.
Fiore is charged with four counts of wire fraud and one count of conspiracy to commit wire fraud. If convicted, she faces a maximum penalty of 20 years in prison on each count.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and Special Agent in Charge Spencer L. Evans of the FBI Las Vegas Field Office made the announcement.
The FBI Las Vegas Field Office is investigating the case.
Trial Attorneys Dahoud Askar and Alexander Gottfried of the Criminal Division’s Public Integrity Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Government Official Arrested for Acting as Unregistered Agent of South Korean GovernmentRead the Press Release
Note: View the indictment here.
Sue Mi Terry, 54, of New York, New York, was arrested yesterday and presented on criminal charges related to offenses under the Foreign Agents Registration Act (FARA).
According to court documents, after leaving U.S. government service and for more than a decade, Terry worked as an agent of the government of the Republic of Korea (ROK), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, Terry publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers and enabled ROK officials to gain access to U.S. government officials. In exchange for these actions, ROK intelligence officers provided Terry with luxury goods, expensive dinners and more than $37,000 in funding for a public policy program focusing on Korean affairs that Terry controlled.
From in or about 2001 to in or about 2011, Terry served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan and Oceanic Affairs for the White House National Security Council and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, Terry has worked at academic institutions and think tanks in New York City and Washington, D.C. Terry has made media appearances, published articles and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea and various regional issues impacting Asia. Terry has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea.
As she admitted in a voluntary interview with the FBI in 2023, Terry served as a valuable “source” of information for the ROK National Intelligence Service (ROK NIS), the primary intelligence agency for the ROK. For example, in or about June 2022, Terry participated in a private, off-the-record group meeting with a U.S. Secretary level official regarding the U.S. Government’s policy toward North Korea. Immediately after the meeting, Terry’s primary ROK NIS point of contact, or handler, picked up Terry in a car with ROK Embassy diplomatic plates. While in the car, Terry passed her handler detailed handwritten notes of her meeting, which were written on the letterhead of a think tank where Terry had recently worked. Terry’s handler then photographed the notes while still sitting in the car with Terry.
Weeks later, at the request of her ROK NIS handler, Terry hosted a happy hour for Congressional staff. Although the happy hour was ostensibly on behalf of the think tank where Terry worked, the ROK NIS paid for it with Terry’s knowledge. Terry’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer.
ROK government rewarded Terry for her services. For example, Terry’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which Terry selected during shopping trips with her handlers. One of Terry’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat. In addition to luxury goods, Terry’s ROK NIS handlers provided her expensive meals, including at Michelin-starred restaurants. Terry’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that Terry controlled at the think tank where she worked. In addition, ROK government officials paid Terry to write articles in both the U.S. and Korean press conveying positions and phrases dictated by the ROK government.
Terry is charged with one count of conspiracy to violate FARA and one count of failure to register under FARA. If convicted, she faces a maximum penalty of 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Damian Williams for the Southern District of New York and Executive Assistant Director Robert R. Wells of the FBI’s National Security Branch made the announcement.
The FBI’s Counterintelligence Division and New York Field Office are investigating the case with assistance from the FBI Washington Field Office.
Assistant U.S. Attorneys Kyle A. Wirshba, Alexander Li and Sam Adelsberg for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Government Official Arrested for Acting as Unregistered Agent of South Korean GovernmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment yesterday charging SUE MI TERRY with offenses under the Foreign Agents Registration Act (“FARA”). TERRY was arrested on July 16, 2024, in New York, New York, and presented before U.S. Magistrate Judge Robert W. Lehrburger. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Damian Williams said: “As alleged, Sue Mi Terry, a former CIA and White House employee, subverted foreign agent registration laws in order to provide South Korean intelligence officers with access, information, and advocacy. Terry allegedly sold out her positions and influence to the South Korean government in return for luxury handbags, expensive meals, and thousands of dollars of funding for her public policy program. The charges brought should send a clear message to those in public policy who may be tempted to sell their expertise to a foreign government to think twice and ensure you are in accordance with the law.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “Compromising national security endangers every American by weakening our defenses and putting lives at risk. Sue Mi Terry, a former CIA and White House official, was arrested for allegedly acting as an unregistered agent for South Korea. For over a decade, despite repeated warnings, Terry allegedly exploited her think tank roles to advance a foreign agenda. As alleged, she disclosed sensitive U.S. government information to South Korean intelligence and used her position to influence U.S. policy in favor of South Korea… for money and luxury gifts. Her alleged actions posed a severe threat to national security. This arrest sends a clear message: the FBI will pursue and arrest anyone who endangers our nation’s security by collaborating with foreign spies.”
As alleged in the Indictment:[1]
After leaving U.S. government service and for more than a decade, TERRY worked as an agent of the government of the Republic of Korea (“ROK”), commonly known as South Korea, without registering as a foreign agent with the Attorney General, as required by law. As covertly directed by ROK government officials, TERRY publicly advocated ROK policy positions, disclosed non-public U.S. government information to ROK intelligence officers, and enabled ROK officials to gain access to U.S. government officials. In return for these actions, ROK intelligence officers provided TERRY with luxury goods, expensive dinners, and more than $37,000 in funding for a public policy program focusing on Korean affairs that TERRY controlled.
From in or about 2001 to in or about 2011, TERRY served in a series of positions in the U.S. government, including as an analyst on East Asian issues for the Central Intelligence Agency, as the Director for Korea, Japan, and Oceanic Affairs for the White House National Security Council, and as the Deputy National Intelligence Officer for East Asia at the National Intelligence Council. Since leaving government service in or about 2011, TERRY has worked at academic institutions and think tanks in New York City and Washington, D.C. TERRY has made media appearances, published articles, and hosted conferences as a policy expert specializing in, among other things, South Korea, North Korea, and various regional issues impacting Asia. TERRY has also testified before Congress on at least three occasions regarding the U.S. government’s policy toward Korea.
Since leaving U.S. government service, TERRY served as a valuable source of information for the ROK National Intelligence Service (“ROK NIS”), the ROK’s primary intelligence agency. For example, in or about June 2022, TERRY participated in a private, off-the-record group meeting with the U.S. Secretary of State regarding the U.S. government’s policy toward North Korea. Immediately after the meeting, TERRY’s primary ROK NIS point of contact, or “handler,” picked up TERRY in a car bearing ROK Embassy diplomatic license plates. While in the car, TERRY provided her handler detailed handwritten notes of her meeting with the U.S. Secretary of State. TERRY’s handler photographed the notes while sitting in the car with TERRY.
Weeks later, at the request of her ROK NIS handler, TERRY hosted a happy hour for Congressional staff. Although the happy hour was under the auspices of the think tank where TERRY worked, the ROK NIS paid for it with TERRY’s knowledge. TERRY’s handler attended the event and posed as a diplomat, mingling with Congressional staff without disclosing that he was, in fact, an ROK intelligence officer.
The ROK government rewarded TERRY for her services. For example, TERRY’s ROK NIS handlers gifted her a $2,950 Bottega Veneta handbag and a $3,450 Louis Vuitton handbag, both of which TERRY selected during shopping trips with her handlers. One of TERRY’s ROK NIS handlers also gifted her a $2,845 Dolce & Gabbana coat.
In addition to luxury goods, TERRY’s ROK NIS handlers provided her with expensive meals, including at Michelin-starred restaurants. TERRY’s ROK NIS handlers also deposited approximately $37,000 into an unrestricted “gift” account that TERRY controlled at the think tank where she worked. In addition, ROK government officials paid TERRY to write articles in both the U.S. and Korean press conveying positions and phrases provided by the ROK government.
* * *
TERRY, 54, of New York, New York, has been charged with one count of conspiracy to violate FARA, which carries a maximum sentence of five years in prison, and one count of failure to register under FARA, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Counterintelligence Division of the FBI’s New York Field Office. Mr. Williams also thanked the Counterintelligence Division and Foreign Influence Task Force of FBI Headquarters, the Mission Services and Counterintelligence Divisions of the FBI’s Washington Field Office, the Amtrak Police Department, and the Department of Justice’s National Security Division for their assistance.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sam Adelsberg, Alexander Li, and Kyle A. Wirshba are in charge of the prosecution, with assistance from Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Florida Man Charged with Six Felonies for Mail-Order Pharmacy and Healthcare Kickback SchemeRead the Press Release
PEORIA, Ill. – A federal grand jury returned an indictment on July 16, 2024, against Franz (aka “Frank”) Peter Suess, 77, of Wellington, Florida, for running a long-standing conspiracy related to his operation of a network of mail-order pharmacies and payment of illegal healthcare kickbacks in order to procure prescriptions for his pharmacies. The charges include one count of conspiracy to commit wire fraud and healthcare fraud, four counts involving healthcare kickback payments or offers to pay kickbacks, and one count of conspiracy to defraud the United States.
The indictment alleges that starting as early as March 2014, and continuing until at least October 2023, Suess owned a network of pharmacies and business entities that were involved in their management. Suess purchased multiple small retail pharmacies throughout the country with the intent of converting the vast majority of the businesses from in-person pharmacies to mail-order businesses. Suess would typically put the ownership of the pharmacies into the names of third parties despite the fact that he provided the funding for the purchase, received a significant share of the profits, and maintained control of the pharmacy network through his other companies.
After purchasing a pharmacy, Suess made fraudulent submissions to various healthcare entities. In these submissions, Suess hid his ownership and control of the pharmacies, failed to disclose that the pharmacy was being converted to a mail-order pharmacy, and falsely claimed that he was in compliance with the federal Anti-Kickback Statute. Through these false claims, Suess and his co-conspirators defrauded and intended to defraud private and public health insurance providers including Medicare, Medicaid, and TRICARE.
Suess’s scheme included his July 2017 purchase of McHugh Drug Store, located in Carthage, Illinois, which is within the Central District of Illinois. Suess not only concealed his ownership, but also paid illegal kickbacks for prescriptions that were filled by McHugh.
If convicted, Suess shall forfeit any property that is derived, either directly or indirectly, from gross proceeds traceable to the commission of the offenses. The property includes, but is not limited to, a money judgment.
A summons was issued for Suess to appear in federal court before Magistrate Judge Jonathan E. Hawley on August 23, 2024, in the federal courthouse in Peoria, Illinois.
If convicted, the maximum statutory penalties for the alleged crimes charged are up to 20 years’ imprisonment for conspiracy to commit wire fraud and healthcare fraud; up to 10 years’ imprisonment for the four kickback counts; and up to five years’ imprisonment for conspiracy to defraud the United States. Each count carries the possibility of a $250,000 fine, or twice the pecuniary gain/loss, and each count may be followed by up to a three-year term of supervised release.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office, Defense Criminal Investigative Service, and the Department of Health and Human Services, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Floral Company Pays $1.25 Million to Resolve False Claims Act Allegations of Defrauding Unemployment Insurance Program During Covid-19 PandemicRead the Press Release
Baltimore, Maryland – Potomac Floral Wholesale, Inc. and Tsur “Jacob” Reiss have agreed to pay the United States and State of Maryland $1,250,000.00 to resolve allegations that they caused the submission of false unemployment insurance (UI) claims at the beginning of the COVID-19 pandemic.
The settlement agreement was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General (DOL-OIG); and Maryland Attorney General Anthony Brown.
“Attempting to unjustly profit from a global pandemic is absolutely wrong,” said United States Attorney Erek Barron. “Unemployment insurance is meant for employees who need it when they are laid off from their jobs. During the early stages of COVID-19, the Federal Pandemic Unemployment Compensation program was designed to supplement traditional unemployment insurance for employees laid off during an unprecedented global emergency. Employers should not use tax dollars to shirk their responsibility to pay employees for their work.”
“The unemployment insurance (UI) program offered critical financial support to American workers who were unable to work due to the immense challenges created by the COVID-19 pandemic,” said Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG). “This civil settlement demonstrates the strong commitment, resolve, and partnership of the DOL-OIG and U.S. Attorney’s Office to hold accountable those who seek to unlawfully exploit the UI program at the expense of those who actually need it.”
“All workers deserve to be paid fairly for their time and effort. The unemployment insurance program exists as a critical lifeline to keep individuals and families afloat when someone is laid off or out of work through no fault of their own,” said Attorney General Anthony Brown. “Exploiting the program to try to avoid paying employees their fair wages is unacceptable. My office is committed to standing up for workers and stopping abusive conduct wherever it is found. We thank our federal partners for their invaluable work and cooperation in bringing this matter to a successful resolution.”
Potomac Floral is a wholesale floral company run by Owner and CEO Tsur “Jacob” Reiss. According to the settlement agreement, from March 1, 2020 to December 31, 2020, starting immediately after the COVID-19 pandemic forced the suspension or modification of American business activity, Potomac Floral and Reiss instructed a group of their employees to apply for UI benefits. Yet, they also instructed these same employees to continue working for Potomac Floral without pay. Because individuals collecting UI must be unemployed, not completing work for an employer, Potomac Floral’s and Mr. Reiss’s conduct caused the submission of false UI claims in violation of the False Claims Act.
The civil settlement also resolves claims filed under the whistleblower provision of the False Claims Act by Travis Gabriel in United States & State of Maryland ex rel. Travis Gabriel v. Potomac Floral Wholesale, Inc. & Tsur “Jacob” Reiss, Civ. No. TDC-21-0207 (D. Md). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery. As part of the civil resolution, Mr. Gabriel will receive $243,750.00.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Potomac Floral or Tsur Reiss, nor a concession by the United States that its claims are not well founded.
U.S. Attorney Erek L. Barron praised the DOL-OIG for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Matt Haven who handled the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Felon Caught with Silenced Pistol Sentenced to 70 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a convicted felon who was caught in someone’s back yard with a silenced pistol to 70 months in prison.
On Oct. 13, 2022, the St. Charles Police Department responded to a call about a man in the 200 block of Blanche Drive. A witness told police that the man was in the rear yard of a home and had been waving a firearm in a threatening manner. The officer discovered Christopher Leach in the gated back yard. When the officer drew his gun and identified himself as a police officer, Leach ran away, tossing the gun into a bush. The officer used a Taser on Leach, who initially refused to put his hands behind his back. The officer found the gun, a loaded .22-caliber semi-automatic pistol with a firearm silencer attached to the barrel. Leach is a felon, having been convicted of offenses including stealing, drug possession, unlawful possession of an illegal weapon and distribution of a controlled substance. He was on parole when he was arrested.
Leach’s sentence will run consecutive to any sentence he receives for pending parole revocation matters in Phelps County Circuit Court.
Leach, 28, of Rolla, Missouri, pleaded guilty in April in U.S. District Court in St. Louis to one count of being a felon in possession of a firearm.
The St. Charles Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney J. Christian Goeke prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Federal Court Permanently Shuts Down New York Tax PreparerRead the Press Release
A federal court in the Eastern District of New York issued a permanent injunction yesterday against a Brooklyn, New York, tax return preparer.
Melinda Jacob, individually and on behalf of her business Melinda Jacob Tax Services LLC, consented to the injunction, which permanently bars her and her business from preparing federal tax returns for others.
On Feb. 5, Jacob pleaded guilty to aiding and assisting in the preparation of a false tax return. As part of her guilty plea, Jacob also agreed to be permanently barred from preparing or filing tax returns for others.
According to the Justice Department’s civil complaint, from 2019 through 2023, Jacob prepared more than 500 returns per year, which included returns that falsely claimed credits, deductions or refunds for customers which improperly reduced their tax liability or inflated their refund. Specifically, the complaint alleges that Jacob falsely claimed residential energy credits and education credits on her customers’ tax returns, even though those customers did not qualify for the credits. The complaint also alleges that Jacobs claimed false filing status and fictitious dependents on customers’ returns to generate a larger refund to which the customers were not entitled.
As a result of the court’s order, Jacob must send notice of the injunction to each person for whom she prepared federal tax returns, amended tax returns or claims for refund between Jan. 1, 2019, to the present.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jacob Order_0.pdfFact Sheet: Justice Department Improves Access to the Immigration Court SystemRead the Press Release
As part of its ongoing efforts to increase and improve access to the immigration court system, the Executive Office for Immigration Review (EOIR) is creating a new leadership position within EOIR’s Office of the Director focused on improving access to the immigration system and finding innovative ways to increase representation rates for noncitizens in immigration court. This new role will serve as EOIR’s public facing point of contact for government and public stakeholders with business before, or interest in, EOIR.
The new leadership role will also work to amplify interagency immigration access initiatives by proactively communicating information about available immigration services across government agencies as well as work with other government agencies to determine how best to increase access to the immigration court system as a whole. They will also serve as a central coordinator for feedback on access and representation concerns in the immigration court system and lead efforts to design responsive programming to address legal access concerns.
EOIR also continues to expand on its ongoing access initiatives, including:
- Respondent Access Portal:
- In July, EOIR announced the launch of the Respondent Access Portal, a secure online platform that allows unrepresented noncitizens with proceedings before EOIR to view case information and scheduled hearings, download their electronic case record, and file documents directly with the immigration court. The portal provides unprecedented ease of access to immigration court proceedings for unrepresented noncitizens, improving transparency and helping noncitizens better navigate the immigration court system.
- Attorney of the Day Program:
- In this program, licensed attorneys provide unrepresented noncitizens in immigration court with general information about immigration court proceedings and relief options and attend preliminary hearings. Attorneys of the Day may be volunteers, legal service providers, or law school clinicians assisted by student practitioners. Attorneys of the Day may also explain immigration court forms and how to seek pro bono legal resources.
- By the end of FY24, EOIR will expand the Attorney of the Day Program to three additional courts, Hyattsville, New York-Varick Street, and Atlanta-Peachtree. Attorney of the Day is currently available in San Francisco, New Orleans, and Chicago.
- Law School Working Group:
- EOIR’s Law School Working Group facilitates law school clinic representation in immigration court. The Working Group activities include holding merits hearings during academic semesters, and increasing student engagement at immigration court hearings, including as Friends of the Court and through limited representation.
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- Over the next few months, the Law School Working Group will meet with law school representatives in DC and surrounding areas, Philadelphia, San Diego, Los Angeles, and San Francisco, in order to expand these efforts.
- Model Hearing Program:
- EOIR’s Model Hearing Program provides current and future immigration law practitioners with substantive and practical information about practices and procedures in immigration court.
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- The Model Hearing Program encompasses a wide range of resources and events, including live Model Hearing Program events at immigration courts, recorded model hearings and substantive law seminars available on demand, and information about the immigration court system available through the Immigration Court Online Resource website.
- Through the Model Hearing Program, EOIR has provided approximately 3,000 individuals with substantive training on immigration law as well as live practical training on representing noncitizens in immigration court.
- EOIR plans to hold another live Model Hearing Program session in September.
- Respondent Access Portal:
El Paso Man to Spend 15 Years in Federal Prison for Dealing Deadly FentanylRead the Press Release
EL PASO, Texas – An El Paso man was sentenced in federal court to 15 years in prison for distribution of fentanyl, causing death.
According to court documents, Michael Joseph Cuccaro, 22, sold counterfeit M-30 oxycodone pills containing fentanyl to a purchaser on Dec. 11, 2022. The purchaser consumed the pills and died from fentanyl poisoning.
A federal grand jury in El Paso indicted Cuccaro Sept. 6, 2023, in a two-count indictment charging him with conspiracy to possess a controlled substance with intent to distribute and distribution of a controlled substance causing death or serious bodily injury. Cuccaro was subsequently arrested on a bench warrant. He pleaded guilty to distribution of a controlled substance causing death on April 24, 2024.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Phillip Countryman prosecuted the case.
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Drug Trafficker Sentenced to Six Years in Federal PrisonRead the Press Release
PROVIDENCE, RI – A Providence man who admitted to a federal judge that he made multiple purchases of cocaine that he later transformed into crack and then sold to others has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha.
Juan Gonzalez, 46, pleaded guilty on January 25, 2024, to a charge of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine. He was sentenced on Tuesday by U.S. District Court Judge Mary S. McElroy to 72 months of incarceration to be followed by four years of federal supervised release.
According to charging documents and information presented to the court, in early 2021, the FBI Safe Streets Task Force launched an investigation into the alleged drug trafficking activities of one William Mendez, 49, of Providence. The investigation included court-authorized interception of electronic communications over multiple telephones allegedly used by Mendez.
According to charging documents, it is alleged that, during telephone phone calls monitored by law enforcement, Mendez allegedly revealed to Gonzalez that, on July 13, 2021, he took possession of between 500 and 1,000 grams of cocaine, some of which was subsequently sold to Gonzalez. The investigation further revealed that between July 13, 2021, and August 12, 2021, Gonzalez made repeated purchases of cocaine, also allegedly from Mendez, that Gonzalez then processed and sold as crack cocaine.
William Mendez is currently detained in federal custody awaiting trial, charged by way of indictment with conspiracy to distribute and to possess with intent to distribute cocaine, and conspiracy to distribute and to possess with intent to distribute forty grams or more of fentanyl. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The cases are being prosecuted by Assistant United States Attorney Stacey A. Erickson.
The matter was investigated by the FBI Safe Streets Task Force, consisting of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
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Drug Dealer Sentenced for Possessing a Smith & Wesson .45 While Distributing PCP, Crack, and MarijuanaRead the Press Release
WASHINGTON – DeCarlos Wilkins, 24, of Washington D.C., was sentenced today to 60 months in prison for distributing PCP, crack cocaine, and marijuana while in possession of a Smith & Wesson M&P .45 caliber handgun, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Wilkins pleaded guilty on March 13, 2024, before U.S. District Judge Royce C. Lamberth to possessing a firearm during a drug trafficking offense. In addition to the five-year prison term, Judge Lamberth ordered Wilson to serve five years of supervised release.
According to court documents, on March 3, 2023, about 6:25 p.m., MPD officers were patrolling on the 1800 block of Benning Road, NE when they observed Wilkins kneeling down weighing an unknown substance on a digital scale. Officers recognized this to be consistent with a drug transaction, i.e. a drug dealer measuring the quantity of a drug immediately prior to a sale. When officers exited their vehicle to investigate, Wilkins fled on foot. Officers found Wilkins hiding in a residential yard in a nearby alley. Police recovered 92 small vials of PCP from Wilkins’ jacket pocket and a Smith & Wesson M&P .45 from inside Wilkins’ pants near his kneecap, underneath a layer of compression shorts. Officers also seized 6.8 ounces of marijuana, 120 grams of cocaine base, and $149 in cash.
Watkins has three prior convictions involving the distribution of illegal drugs, and three prior convictions involving the use of illegal firearms. At the time of his arrest in March 2023, he was on supervision after the release from a prior firearms offense conviction, he was also awaiting sentencing for attempted possession with intent to distribute a controlled substance.
This case was investigated by the Metropolitan Police Department and prosecuted by Special Assistant U.S. Attorney Alexander Schneider.
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Defendant Pleads Guilty to Child Pornography ChargeRead the Press Release
PROVIDENCE, RI – A Rhode Island resident whose IP address was determined to have been used to receive and distribute child pornography has pleaded guilty to a charge of possession of child pornography, announced United States Attorney Zachary A. Cunha
Haley Lynn Rose, known at the time of arrest as Anthony Ninfo, 43, of West Warwick, admitted to possessing more than 220 images and 30 videos of child pornography that were located on electronic devices owned by the defendant, who was arrested on April 28, 2021.
According to information provided to the court, in September 2020, law enforcement in New Zealand executed a court-authorized search warrant and developed information indicating that an individual in Rhode Island was using a file-sharing account to make available and distribute child pornography. Further investigation determined that the IP address belonged to the defendant.
On April 28, 2021, federal agents executed a court-authorized search of the defendant’s West Warwick residence and seized several media devices, a cellphone, and an external hard drive. A forensic analysis of the equipment revealed approximately 220 images and 35 videos of child pornography, including depictions of prepubescent children engaged in sex acts with adult males and females.
The defendant is scheduled to be sentenced on October 17, 2024. The defendant’s sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney John P. McAdams
The matter was investigated locally by Homeland Security Investigations.
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Davenport Man Sentenced to 162 Months in Federal Prison for Selling Drugs While Under Federal SupervisionRead the Press Release
Davenport, Iowa – A Davenport man was sentenced yesterday to 162 months in federal prison for selling cocaine while under federal supervision.
According to public court documents and evidence presented at sentencing, Dedrick Montez Jones, 44, during 2023, while Jones was under federal supervised release on a prior federal drug case, officers received information that Jones was selling cocaine. In December 2023, officers searched Jones’ residence and located approximately 45 grams of cocaine. Jones eventually admitted to selling cocaine.
At sentencing, the Court also found Jones had violated the terms of his federal supervised release for a prior conviction for possession with intent to distribute cocaine and imposed a 42-month term of imprisonment, for a total of 162 months in federal prison.
After completing his term of imprisonment, Jones will be required to serve eight years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Bettendorf Police Department, Drug Enforcement Agency, Iowa Division of Narcotics Enforcement, Davenport Police Department, and Scott County Sheriff’s Office.
Criminals Are Targeting Bank and ATM Customers in MarylandRead the Press Release
Baltimore, Maryland – The FBI and our local law enforcement partners are investigating a surge of armed robberies, known as “jugging” crimes, at financial institutions in Maryland. At least 21 bank and ATM customers have been victimized by these crimes just in the first week of July.
A majority of the crimes have taken place in Anne Arundel and Prince George’s Counties.
“Jugging” refers to a crime in which a suspect, or group of suspects, targets customers believed to have large amounts of cash. The perpetrators either rob customers while in the parking lot of a bank, credit union or ATM or follow them to their next location.
So far in 2024, the FBI Baltimore Field Office has received reports of around seven dozen jugging offenses with more than half of those incidents reported in June and July.
“These assailants are brazenly targeting bank and ATM customers, posing a significant risk to the public of both physical and financial harm. FBI Baltimore’s Violent Crime Task Forces and our partners are working together to combat the alarming rise of these dangerous incidents,” said FBI Baltimore Special Agent in Charge William J. DelBagno. "We will continue to pursue criminals with all our available resources and remain determined to eradicate violent crime from our streets."
“The Anne Arundel County Police Department is grateful for the assistance of our federal, state and local partnerships as we focus intently on the violent criminals involved in the wave of armed robberies being committed against our innocent, hardworking community members throughout the region,” said Anne Arundel County Chief of Police Amal E. Awad. “The perpetrators of these violent robberies, known as “juggings”, prey on people who are trying to live out their daily lives peacefully. We will continue to dedicate the necessary resources to prevent these criminals from attacking innocent people and when they do, diligently and relentlessly use our investigative techniques to identify, arrest and bring them to justice. We share in the outrage of the many people and their families who have survived these terrifying encounters left feeling victimized, broken and traumatized at the hands of these heartless, lawbreaking criminals."
“The Prince George’s County Police Department truly values our partnership with both the FBI Baltimore Field Office and local agencies on this regional issue. Our detectives regularly communicate with these law enforcement partners to share real-time information on these investigations which often cross jurisdictional borders,” said Deputy Chief Zachary O’Lare, Bureau of Investigation Prince George’s County Police Department. “Together, we intend to identify and arrest all criminals targeting victims who are simply stopping at a bank. This issue is a top priority.”
“The Bowie Police Department is committed to collaborating with federal, state, and local law enforcement agencies to identify and apprehend those responsible for these criminal acts,” said Bowie Police Chief Dwayne A. Preston.
The FBI urges the public to remain vigilant and keep the following safety tips in mind.
- Be Aware of Your Surroundings: Always be vigilant when withdrawing or depositing money from a bank or ATM.
- Look around for anyone who appears suspicious or is loitering in the area.
- Pay attention to individuals backed into parking spaces who do not exit their vehicles to conduct business.
- Don’t leave your car or the building if you observe suspicious vehicles in the parking lot or parked nearby.
- Report any suspicious activities immediately.
- Conceal Your Cash: When leaving the bank, ensure your cash is not visible. Place it in a secure, inconspicuous location such as a pocket or a bag.
- Vary Your Routine: Avoid regular patterns in your banking habits. Change the times and locations you visit the bank.
- Drive Directly to Your Next Destination: If you suspect you are being followed, drive to the nearest police station or a crowded, well-lit area, and call 911.
- Avoid Distractions: Do not engage in activities that might distract you, such as using your phone, until you are in a safe place.
If you have any information related to recent bank jugging incidents, please contact the FBI at 1-800-CALL FBI or submit an anonymous tip through tips.FBI.gov.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Convicted Felon Accused of Committing a Drive-By Shooting in Salt Lake County is Facing Federal ChargesRead the Press Release
Salt Lake City, Utah – A federal grand jury returned an indictment today charging a convicted felon with gun and drug crimes. The charges come a month and a half after the defendant allegedly committed a drive-by shooting in Salt Lake County, Utah, and fled from police the following day.
According to court documents, Cody Charles Burningham, 30, of Salt Lake City, is accused of committing a drive-by shooting on June 3, 2024, in Millcreek, Utah. The next day, multiple law enforcement agencies witnessed Burningham driving a vehicle in Kearns, Utah. Detectives attempted to stop Burningham, but he fled, driving through residential areas at a high rate of speed. After detectives were able to spike the tires of the vehicle, he took off on foot. Burningham was taken into custody without incident. Shortly after the chase, a loaded HS Produkt XD45 .45 caliber semi-automatic pistol was recovered.
According to the complaint, prior to June 4, 2024, Burningham was convicted by the Utah Third District Court for multiple crimes including possession of a firearm by a restricted person.
Burningham is charged with felon in possession of a firearm, and possession of Alpha PHP (bath salts) with intent to distribute. His initial appearance on the indictment is July 18, 2024, at 10:30 a.m. in courtroom 8.4 at the United States District Courthouse in downtown Salt Lake City.
United States Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by a West Valley City Police Detective and a Task Force Officer with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney Cameron P. Warner of the U.S. Attorney’s Office for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Columbia Man Sentenced to 10 Years in Federal Prison for Distributing MethRead the Press Release
COLUMBIA, S.C. — Michael Wright, 46, of Columbia, was sentenced to 1o years in federal prison after pleading guilty to conspiracy to distribute more than 50 grams of methamphetamine.
Evidence presented to the court showed that Wright contacted an agent of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) over social media about the sale of methamphetamine. The agent and Wright agreed to meet. Wright sold the agent 28 grams of pure methamphetamine. Following this sale, ATF used the same agent and bought methamphetamine from Wright four additional times purchasing more than 700 grams of methamphetamine.
United States District Judge Sherri A. Lydon sentenced Wright to 120 months imprisonment, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Clinton County Man Indicted for Receipt and Possession of Child PornographyRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Felix Trepanowski, age 23, of Clinton County, PA, was indicted on charges of receipt and possession of child pornography.
According to United States Attorney Gerard M. Karam, the indictment alleges that Trepanowski received child pornography on December 31, 2022 and April 27, 2024 and possessed child pornography on May 21, 2024.
The case was investigated by the Federal Bureau of Investigation-RAC Williamsport and the Pennsylvania State Police. Assistant United States Attorney Tatum R. Wilson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is 20 years, with a mandatory minimum sentence of 5 years, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
Chicago Man Sentenced to 72 Months in PrisonRead the Press Release
SOUTH BEND – Allory Smith, 42 years old, of Chicago, Illinois, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Smith was sentenced to 72 months in prison followed by 2 years of supervised release.
According to documents in the case, in January 2023, Smith sold a rifle, a handgun, and ammunition to a buyer in the Michigan City area. Smith referred to the rifle as a “real license to kill” because he believed it had previously been reported stolen. Smith has several prior felony convictions, any one of which prohibit him from possessing the firearms in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County VICE Unit (LCVICE). The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle.
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.
Chicago Man Sentenced in Cyber Fraud CaseRead the Press Release
MOBILE, AL – Charles Boyd, age 28, of Chicago, IL was sentenced today to 33 months in prison for his role in a cyber fraud scheme known as a business e-mail compromise.
According to court documents filed in connection with Boyd’s guilty plea, unknown co-conspirators gained unauthorized access to the e-mail account of a Spanish Fort, Alabama mortgage company in 2019. After gaining access, the conspirators were able to read the mortgage company’s e-mails and, therefore, knew when buyers were expecting wiring instructions to complete real estate transactions. When a sale was near completion, co-conspirators sent the buyer a spoofed e-mail that appeared to come from the mortgage company. These e-mails contained wiring instructions supposedly for the completing of the real estate purchase. However, when the buyer followed the instructions in the e-mail, their money was unwittingly sent to bank accounts controlled by the conspirators.
Boyd’s role in the conspiracy was to set up the bank accounts into which the buyers unwittingly wired the money. Specifically, during July and August 2019, Boyd opened multiple bank accounts using documents that purported to be passports issued by the governments of Sierra Leone and the Gambia. These documents contained Boyd’s picture along with alias names and identifiers. Accounts set up by Boyd with these fraudulent documents received over $400,000 from real estate purchasers who were victimized by this scheme, including victims in the Southern District of Alabama.
Boyd is currently serving an 18-month sentence for a separate financial fraud scheme in Wisconsin. Once that sentence is complete, Boyd will begin serving his 33-month sentence in this case.
This case was investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Christopher Bodnar and Marjorie Vincent-Tripp prosecuted the case on behalf of the United States.