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11 July 2024
Canadian National Sentenced to 50 Months’ Imprisonment for Conspiracy to Commit Wire Fraud Against Elderly VictimsRead the Press Release
SPRINGFIELD, Ill. – A Canadian national, Sebastian Chelemen, 38, was sentenced on July 11, 2024, to 50 months’ imprisonment to be followed by two years of supervised release, for conspiracy to commit wire fraud. He was also ordered to pay $460,350 in restitution to his victims.
At the sentencing hearing, the government established that, between April 2023 and June 2023, Chelemen participated in a fraud scheme with co-conspirators operating in Canada who called elderly individuals throughout the United States portraying themselves as young loved ones who had been arrested and needed money for bond or a lawyer. Once a victim agreed to provide the funds for their loved one’s release from jail, Chelemen, acting as a bail bondsman/courier, arrived at their address for the purpose of picking up the funds. He then provided the victims with a receipt that included a “case number,” the amount of money provided, and the false name he used during the interaction. Ultimately, Chelemen personally obtained over $380,000 from the victims in multiple states directly and co-conspirators received another $78,000 from victims who mailed funds as part of the scheme. Members of the conspiracy also attempted to obtain at least an additional $290,000 from victims. When Chelemen was arrested in Sangamon County, he was found with over $138,000 in cash which he acknowledged he had recently received from numerous victims throughout the Central District of Illinois.
During the sentencing hearing, U.S. District Court Judge Sue E. Myerscough found Chelemen was responsible for over $750,000 in actual and attempted loss, that he had victimized vulnerable individuals as part of the scheme, and that the scheme was both sophisticated and most of it took place outside of the United States.
“This case is an excellent example of what can be accomplished when we, as a law enforcement community, work towards a common goal.” said Assistant U.S. Attorney Tanner K. Jacobs. “Victims of this terrible scheme were spread out across the country, and federal, state, and local agencies banded together to identify them and ensure that the victims’ voices were heard.”
“Elder fraud is a massive and growing problem that affects one of our most vulnerable age groups. It accounts for billions of dollars in losses and in many instances leaves victims financially and emotionally devastated.” said Acting Special Agent in Charge Jermaine Deans. “This sentence demonstrates the commitment of the FBI and our law enforcement partners to relentlessly pursue and hold accountable those who seek to harm the elderly.”
Chelemen pleaded guilty to one count of conspiracy to commit wire fraud on February 6, 2024. He was ordered detained on June 26, 2023, following his arrest by the Sangamon County Sheriff’s Office on June 13, 2023. He has remained in the custody of the U.S. Marshals Service since that time. The statutory penalties for conspiracy to commit wire fraud are up to twenty years in prison, up to a $250,000 fine, and up to three years of supervised release.
The Federal Bureau of Investigation, Springfield Field Office along with the Sangamon County Sheriff’s Office, and Springfield Police Department investigated the matter with assistance from various law enforcement agencies throughout the country, including Virginia, Ohio, New York, and Wisconsin. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
If a senior, or friend or relative of a senior, believes someone is at risk of imminent danger or financial exploitation, they should call 9-1-1. Reports of financial exploitation and abuse should be reported to the non-emergency number at the Springfield Police Department (217-788-8311.) The Adult Protective Services Hotline number to report elder fraud is 866 800-1409. Elder fraud may also be reported to the Illinois Attorney General’s Office at 800-243-5377. Internet-based fraud should be reported to the FBI’s Internet Crime Complaint Center IC3, www.ic3.gov. Additional useful information about elder fraud and scams can be found at www.uspis.gov and www.ftc.gov.
Browning man who shot, wounded man in the head on Blackfeet Indian Reservation sentenced to more than five years in prisonRead the Press Release
GREAT FALLS — A Browning man who admitted to shooting and wounding a man in the head on the Blackfeet Indian Reservation was sentenced today to five years and six months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Joseph Paul Vandenberg, 21, pleaded guilty in March to assault with a dangerous weapon and to using a firearm during a crime of violence as charged in an indictment.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in the early morning hours of March 11, 2022 in Browning, on the Blackfeet Indian Reservation, Vandenberg was a backseat passenger in a vehicle that was cruising around when the driver pulled up and blocked the driveway of a home. The victim, identified as John Doe, and a friend, got into an SUV that was backed into the driveway. Doe tried to maneuver around the vehicle. Vandenberg opened the back door of the vehicle, pulled out a firearm and fired a round as Doe’s vehicle was driving away. The bullet grazed the side of Doe’s head and lodged in the dashboard at the base of the windshield. Doe was treated for a large laceration on his head. Vandenberg admitted to being the shooter and told law enforcement that the driver told him to shoot, and he did because he was scared.
The U.S. Attorney’s Office prosecuted the case. The FBI and Blackfeet Law Enforcement Services conducted the investigation.
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Brooklyn Man Sentenced to 57 Months in Prison for Fentanyl DistributionRead the Press Release
NEWARK, NJ. –A Brooklyn man was sentenced today to 57 months in prison for his role in a drug trafficking conspiracy to distribute 4 kilograms of fentanyl in Clifton, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Juan De La Cruz Infante Torres, 52, of Brooklyn, New York, pleaded guilty on June 14, 2023, before U.S. District Judge Michael A. Shipp to a two-count information charging him with conspiracy to distribute and possess with intent to distribute fentanyl, and with possessing with intent to distribute fentanyl. Judge Shipp imposed the sentence today in Trenton federal court. Infante’s conspirator, Billy Castro, pleaded guilty before Judge Shipp and is awaiting sentencing.
According to documents filed in this case and statements made in court:
In May and June 2021, Infante Torres conspired with Castro and others to distribute substantial quantities of fentanyl. On June 15, 2021, Infante and Castro took approximately 2 kilograms of fentanyl from Castro’s Queens, New York apartment to Clifton, New Jersey, where they were arrested trying to sell it. Law enforcement agents then searched Castro’s apartment and found approximately two additional kilograms of fentanyl.
In addition to the prison term, Judge Shipp sentenced Infante Torres to two years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and postal inspectors with the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to the sentencing. He also thanked the U.S. Department of Labor, Pennsylvania Department of Labor and Industry, and New York Department of Labor.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Mark J. Pesce and Aja Espinosa of the Economic Crimes Unit in Newark.
Bladensburg Man Sentenced to 4 Years in Federal Prison for Conspiring to Illegally Ship Stolen Cars to West AfricaRead the Press Release
Greenbelt, Maryland – U.S. District Judge Peter J. Messitte sentenced Karim Abdul Turay, age 31, a resident of Prince George’s County, Maryland, to 51 months in federal prison, followed by 3 years of supervised release, for conspiracy to commit transportation of stolen motor vehicles and receipt and possession of stolen motor vehicles.
The sentence was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI) Baltimore; Port of Baltimore Director Adam Rottman of U.S. Customs and Border Protection; and Chief of the Maryland Transportation Authority Police Colonel Joseph F. Scott.
According to his plea agreement, between approximately September 2019 and June 2022, Turay worked with others to fraudulently rent vehicles from Hertz, Avis, and other car rental companies at locations in Maryland, Virginia, Washington, D.C., and elsewhere. Turay and others were able to rent these cars using false identifications and credit cards.
The vehicles would then be transported to Maryland where they would be loaded onto large cargo shipping containers and taken to the Port of Baltimore. Then, using false declaration forms and other paperwork to conceal the containers’ contents, the containers with rental vehicles inside would be exported to West Africa via cargo ship where the vehicles could be sold. Law enforcement is aware of more than 40 vehicles that Turay and his co-conspirators either exported or attempted to export to West Africa.
Co-conspirator Jonathan Davis, age 39, of Laurel, Maryland, previously pled guilty to receipt and possession of stolen vehicles and was sentenced to 13 months in federal prison. Another Co-conspirator, Rodley Balthazar, age 30, also of Laurel, Maryland, pled guilty to the same charges as Turay and was sentenced to 37 months in federal prison.
U.S. Attorney Erek L. Barron praised the HSI Border Enforcement Security Task Force and the Maryland Transportation Authority Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Darren S. Gardner and Timothy F. Hagan who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Austin Man Sentenced to 14 Years in Federal Prison for Fentanyl DistributionRead the Press Release
AUSTIN, Texas – An Austin man was sentenced in federal court to 168 months in prison for conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl.
According to court documents, Trenton Harris Tindall, 24, was identified as having coordinated the purchase of counterfeit oxycodone with a purchaser in Austin who was found deceased the day after their correspondence. In their text messaging, Tindall told the purchaser that he possessed oxycodone for distribution and arranged the transaction. The Travis County Medical Examiner determined the victim’s cause of death was accidental and due to the toxic effects of fentanyl.
Through three separate operations during an investigation, Tindall distributed a total of approximately 450 fentanyl-laced oxycodone tablets—blue in color with “M30” printed on them—to law enforcement. Tindall pleaded guilty Dec. 15, 2023 to one count of conspiracy to distribute and possess with intent to distribute more than 40 grams of fentanyl.
U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
The FBI and Austin Police Department investigated the case.
Assistant U.S. Attorney Matthew Devlin prosecuted the case.
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Armed Stockton Drug Trafficker Sentenced to 14 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Jesus Iribe, 28, of Stockton, was sentenced today by U.S. District Judge Daniel J. Calabretta to 14 years in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 17, 2022, Iribe was stopped by law enforcement officers. Iribe had a loaded Glock pistol in his pocket and a kilogram of cocaine in his pickup truck. The officers later conducted a search at Iribe’s house and found 10 pounds of methamphetamine, 5 pounds of cocaine, 3 pounds of marijuana, counterfeit M-30 oxycodone pills, and five more firearms.
This case was the product of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration, with assistance from the San Joaquin County District Attorney’s Office, the Stockton Police Department, the San Joaquin County Sheriff’s Office, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Justin Lee prosecuted the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.
Active-duty Army and Former Marine Reserve Indicted and Arrested for Drug ConspiracyRead the Press Release
TULSA, Okla. – A California man who is on active duty with the Army and a former Marine Reserve was arrested at Fort Carson in Colorado. David Julian Mendoza Gonzalez, 26, had an initial appearance before a federal judge in the District of Colorado. He is charged in the Northern District of Oklahoma for Drug Conspiracy and Maintaining a Drug-Involved Premises.
“The Northern District of Oklahoma is committed to disrupting and reducing the flow of deadly narcotics into our communities,” said U.S. Attorney Clint Johnson.
“The arrest of Mr. Mendoza Gonzalez demonstrates the continued resolve of DEA Oklahoma to investigate organizations to the fullest extent possible,” said DEA Acting Special Agent in Charge Ivan Carrera. “Local street dealers, dispatchers, transporters, bulk suppliers, and anyone in between should know DEA Oklahoma is committed to holding everyone in this organization, and others like it, accountable for selling drugs to our communities.”
According to the Indictment, from August 2021 through June 2024, Gonzalez knowingly and intentionally conspired with others to distribute heroin, fentanyl, and methamphetamine. He was additionally charged with maintaining residences in Tulsa for drug distribution.
If convicted, Gonzalez faces up to life imprisonment, up to $10,000,000 in fines, and up to five years of supervised release.
The Drug Enforcement Administration, the Tulsa Police Department, the Defense Criminal Investigative Service, and Homeland Security Investigations are the investigative agencies. Assistant U.S. Attorney Mandy M. Mackenzie is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
12 Years After Being Indicted on Sex Travel Charges, Philadelphia Man Apprehended in Egypt and Returned to the United StatesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Idris Abdullah Malik, 49, was apprehended in Egypt and returned to the United States to face four counts of traveling for the purpose of engaging in illicit sexual conduct and one count of engaging in illicit sexual conduct in a foreign place.
The indictment, filed on March 1, 2012, alleges that between 2000 and 2005, Malik traveled to Egypt on four occasions for the purposes of engaging in an illicit sexual act with a minor less than 12 years old and between 2005 and 2006, engaged in a sexual act with a minor less than 16 years old in Egypt.
After being charged, Malik’s whereabouts were unknown and a bench warrant was issued. He was recently located in Egypt and returned to the United States with the assistance of the Justice Department’s Office of International Affairs, FBI Legat’s Office in Cairo, U.S. Department of State’s Diplomatic Security Service, the Consular Section at the U.S. Embassy in Cairo, U.S. Customs and Border Protection, and the FBI. The support and assistance of Egyptian security authorities was consequential to this effort.
On June 13, 2024, Malik was taken into custody by the FBI and made his initial appearance in the Eastern District of Virginia. He has now been returned to the Eastern District of Pennsylvania for prosecution and appeared in federal magistrate court in Philadelphia this afternoon, where he was arraigned and ordered detained until trial by U.S. Magistrate Judge Jose R. Arteaga.
If convicted of the charged offenses, the defendant faces a maximum possible sentence of 150 years’ imprisonment.
The case was jointly investigated by the Federal Bureau of Investigation and Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Josh A. Davison.
An indictment, information or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
10 July 2024
Windsor Man on Federal Supervised Release Charged with Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, James Ferguson, Special Agent in Charge, ATF Boston Field Division, and Connecticut State Police Colonel Daniel Loughman today announced that a federal grand jury in New Haven has returned an indictment charging ANDRE O. JOHNSON, 28, of Windsor, with firearm and drug offenses.
The indictment was returned on June 25, 2024, and Johnson appeared yesterday in New Haven federal court and pleaded not guilty to the charges. Johnson has been detained since June 11, 2023, when he was arrested by the Connecticut State Police in Wethersfield on related state charges.
The indictment alleges that, on June 11, 2023, Johnson possessed a Smith & Wesson 9mm pistol, ammunition, and distribution quantities of cocaine and fentanyl. In April 2022, Johnson was convicted in federal court of drug and firearm trafficking offenses.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Johnson with possession with intent to distribute controlled substances, an offense that carries a maximum term of imprisonment of 20 years, and unlawful possession of a firearm and ammunition by a felon, an offense that carries a maximum term of imprisonment of 15 years.
Johnson was on federal supervised release at the time of the offenses charged in the indictment, and he faces additional penalties if he is found to have violated the conditions of his supervised release.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Connecticut State Police, the Wethersfield Police Department, and the West Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Robert S. Dearington.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn.
Washington, D.C. Man Facing Federal Charges for Allegedly Obtaining Covid-19 Cares Act Loans by Reporting Inflated Payroll Numbers and Stealing A Maryland Man’s IdentityRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Jemel Lyles, age 42, of Washington, D.C., with three counts of wire fraud, two counts of aggravated identity theft, and one count of money laundering relating to the submission of alleged fraudulent COVID-19 CARES Act loan applications. The indictment was returned on June 27, 2024, and unsealed today upon the arrest of the defendant.
The defendant had an initial appearance today, in the U.S. District Court in Greenbelt before U.S. Magistrate Judge Gina L. Simms.
The indictment was announced by Erek L. Barron, U.S. Attorney for the District of Maryland and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office.
Financial assistance offered through the CARES Act included forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program, administered through the Small Business Administration (SBA). According to the indictment, the defendant fraudulently obtained three PPP loans and spent the funds for purposes not permitted under the PPP loan program. The first PPP loan was for a construction and landscaping business that in support of that application, Lyles submitted a false payroll document, which misrepresented the size of the business’ payroll. Lyles also disguised his ownership of the business. As a result of this application, PPP funds were deposited into a bank account under Lyles’s control and later used for personal and unauthorized expenses. The indictment also alleges that Lyles obtained two PPP loans impermissibly using the identity of a Maryland resident. In support of these applications, Lyles submitted false tax documents and listed the Maryland resident’s Social Security Number as the relevant taxpayer identification number. As a result of these applications, Lyles received PPP funds, which he proceeded to use for unauthorized expenses.
If convicted, Lyles faces a maximum sentence of 20 years in federal prison for each wire fraud count; a minimum mandatory sentence of two years in prison for each aggravated identity theft count, which will run consecutive to the wire fraud sentence; and a maximum of 10 years in federal prison for money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
The District of Maryland Strike Force is one of five strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Joseph L. Wenner, who is prosecuting the federal case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber.
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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Wanblee Man Sentenced to Fifteen Years in Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wanblee, South Dakota, man convicted of Sexual Abuse of a Minor. The sentencing took place on June 28, 2024.
Benjamin Francis Sitting Up, Jr., 38, was sentenced to 15 years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Sitting Up was indicted for Sexual Abuse and Abusive Sexual Contact by a federal grand jury. He pleaded guilty on April 12, 2024, to Sexual Abuse of a Minor.
The conviction stemmed from Sitting Up sexually abusing a thirteen-year-old female in November of 2023. In 2019, Sitting Up had been convicted of transferring obscene material to another female. A federal judge had sentenced him to three years in prison with supervision to follow. After being released from prison, Sitting Up digitally raped another minor in his Wanblee, South Dakota, home, leading to the instant charges. In sentencing Sitting Up to fifteen years, the district court judge explained the statutory maximum sentence was appropriate given the defendant’s history of victimizing young girls.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case.
Sitting Up was immediately remanded to the custody of the U.S. Marshals Service.
Wabash County Man Convicted of Firearm OffenseRead the Press Release
SOUTH BEND – Roy Skeens, 40 years old, of Wabash County, Indiana, was found guilty of being a convicted felon in possession of a firearm following a two-day jury trial presided over by United States District Court Judge Damon R. Leichty, announced United States Attorney Clifford D. Johnson.
Skeens is scheduled for sentencing on October 17, 2024. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Wabash County Sheriff’s Department, the Kosciusko County SWAT Team, the South Bend Police Department, and the Indiana Department of Correction. The case was prosecuted by Assistant United States Attorneys Katelan McKenzie Doyle and Joseph P. Falvey.
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.
Uzbek National Who Made False Statements is SentencedRead the Press Release
SIDIKJON MAMADJONOV, 37, a citizen of Uzbekistan, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to one month of imprisonment, time already served, and one year of supervised release, for making false statements to federal law enforcement and in immigration proceedings.
U.S. Attorney Vanessa Roberts Avery, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, Special Agent in Charge Robert Fuller of the Federal Bureau of Investigation’s New Haven Division, and Special Agent in Charge Michael J. Krol of Homeland Security Investigations in New England, made the announcement.
According to the evidence presented during his trial, Mamadjonov immigrated to the U.S. in February 2009, lived in New Britain, Connecticut, and became a lawful permanent resident in September 2010. On May 27, 2013, Mamadjonov departed the U.S. on a flight to Istanbul, Turkey. During or before this trip, he learned that his brother, Saidjon Mamadjonov, had been killed while fighting in the civil war in Syria. Sidikjon Mamadjonov returned to the U.S. on June 11, 2013. In early July 2013, he received a DHL package that contained an iPhone 4. On the phone were several videos and photographs depicting Saidjon in Syria, including videos of Saidjon cleaning weapons in military dress while armed with a weapon, and a photograph of Saidjon after he was killed.
During three interviews with FBI special agents in 2014, Mamadjonov responded to questions about the trip he took to Turkey in 2013, and questions about his brother. Mamadjonov made multiple false statements, including that his brother was alive and living in Turkey or Dubai, that he met with his brother while he was in Turkey in 2013, and that his brother sent him a package after he returned from his trip.
In August 2016, Mamadjonov stated to FBI special agents that he had a received a package from Sidikjon, did not know the whereabouts of Saidjon, had not overheard any discussions of Uzbeks in the U.S. going over to Syria to fight, and was not aware of any Uzbeks travelling to Syria. At that time, Sidikjon knew that Saidjon was an Uzbek who had traveled from the U.S. to Syria and had died while fighting in the civil war, and that he died prior to the date the package was sent.
On October 27, 2016, in an interview with a U.S. Citizenship and Immigration Services officer regarding his U.S. Citizenship and Immigration Services an Application for Naturalization, Form N-400 that he had submitted in September 2014, Mamadjonov again provided false statements about his brother and whether he had previously lied to the FBI.
Mamadjonov was arrested on December 22, 2017.
On March 7, 2023, a jury found Mamadjonov guilty of three counts of making a false statement to law enforcement, and one count of making a false swearing in an immigration matter.
This matter was investigated by the Federal Bureau of Investigation’s Joint Terrorism Task Force, Homeland Security Investigations, Internal Revenue Service – Criminal Investigation Division, U.S. Citizenship and Immigration Services, New Britain Police Department and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Edward Chang and Trial Attorney Steven Ward of the National Security Division’s Counterterrorism Section.
U.S. Attorney’s Office Emphasizes the Importance of Safe Storage of FirearmsRead the Press Release
Louisville, KY - Safe storage of firearms is an important tool for reducing the risk of unintentional shootings, helping to prevent firearm-related suicides, and for making our communities safer. In 2022, the U.S. Centers for Disease Control and Prevention (CDC) reported firearm injuries to be among the five leading causes of death for people ages 1-44 in the United States and the leading cause of death among children and teens ages 1-19. Kentucky’s Child Fatality and Near Fatality External Review Panel’s 2023 Annual Report identified unsafe access to deadly means as a risk factor or characteristic in 83% of firearm-related cases and improper storage was identified in 90% of those cases. Proper storage of firearms can significantly reduce these risks, particularly among children and teenagers. Safe storage also protects adults by decreasing the risk of gun thefts, diversion of firearms to illegal markets, and criminal discharges of firearms. The change in seasons is a great time to review storage practices to ensure all firearms are stored safely.
“My commitment to reducing gun violence in our communities includes raising awareness of the safe storage of firearms,” said Western District of Kentucky U.S. Attorney Michael A. Bennett. “Secure storage saves lives by keeping guns out of the hands of children, at-risk persons who may do harm to themselves or others, and individuals who are prohibited by law from possessing firearms. I encourage the public to educate themselves on safe storage and all gun owners to take steps to securely store their firearms in their homes, businesses, and vehicles.”
The U.S. Department of Justice released Safe Storage of Firearms Unload it, Lock it, Store it, which discusses secure gun storage, different types of storage devices, and best practices for safely storing firearms. One of the most comprehensive guides on safe storage ever released by the federal government, this publication details safety and security suggestions for firearms. “These practical recommendations promote responsible gun ownership and provide effective safety measures,” said U.S. Attorney Bennett.
Nearly all firearm accidents in the home can be prevented by making sure that guns are kept unloaded. Keep ammunition locked in a secure location away from the firearm. When removing firearms from storage, always re-check firearms carefully and completely to be sure that they are still unloaded. Always treat every gun as if it were loaded.
If you must have quick access to a loaded firearm, make sure to take special safety precautions and keep them in a secure location readily accessible to responsible adults only. Gun locks or devices that prevent the firearm from being operated without first deactivating the device are effective and should be used as an additional safety precaution to make firearms inoperative to others. Keys and combinations for the safety device should be stored separately in a location inaccessible to children, at-risk persons, and prohibited persons. While gun locks increase safety, these additional precautionary tools should not be used as substitute for secure storage.
Every year, thousands of firearms are lost or stolen from homes, businesses, and vehicles. Data compiled for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)’s Crime Gun Intelligence and Analysis shows that from 2017 to 2021, more than a million firearms were stolen from private citizens, making up 96% of all firearms reported stolen during that time period. Thefts from vehicles are the largest source of stolen guns, particularly those left in unlocked vehicles or in plain view. Across Kentucky, approximately 3,000 guns are stolen from vehicles yearly, which averages out to over eight thefts a day. To prevent these thefts, firearms should be stored in a locked cabinet, gun safe or gun vault, or secure storage compartment or case designed to be unlocked only by means of a key, a combination, or other similar means. By securely storing firearms, responsible gun owners can deter these thefts and stop firearms from circulating illegally and potentially being used in crimes.
Safe storage in the home is critical for preventing the risks of unintentional death, injury, or damage. If you live with a person who is at risk or legally prohibited from possessing a firearm, consider upgrading your storage levels to be absolutely certain that no firearm can be accessed. Always make sure any guns in the home are stored so that they are not accessible to children. Talk to children about the hazards of improper firearm use and teach them safe practices if they do come into contact with a gun. Talk to friends, relatives, or adults in homes where children may visit to ensure safe firearm storage practices are being followed in their homes. “Hiding a firearm, or telling a child not to play with a gun, is not enough to keep a curious child safe from unintentional injuries,” said U.S. Attorney Bennett. “We must all be committed to taking affirmative steps to secure firearms in order to protect our loved ones and keep our homes and communities safe.”
The safety and security practices outlined by the Department of Justice are recommendations only. Responsible gun owners should also be aware of all federal, state, and local laws regarding the purchase, possession, carrying, use, storage, and disposition or sale of firearms.
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U.S. Attorney's Office Announces Working Group Meeting to Advance Environmental Justice InitiativeRead the Press Release
CHARLOTTE, N.C. – The U.S. Attorney’s Office convened a meeting today of the Western District’s Environmental Justice & Environmental Crimes Working Group, reaffirming its commitment to advancing environmental justice.
The federal, state, and local law enforcement agencies represented in the working group meeting were the U.S. Environmental Protection Agency’s Office of the Inspector General and Criminal Investigation Division, the U.S. Fish and Wildlife Service, the U.S. Department of Defense Criminal Investigative Service, the U.S. Department of Transportation, the North Carolina Wildlife Resources Commission, the North Carolina Department of Transportation, the North Carolina Department of Insurance, and the Charlotte-Mecklenburg Police Department.
June marked the two-year anniversary of the U.S. Attorney’s Office’s Environmental Justice Initiative (EJI) and the appointment of an Environmental Justice Coordinator, following an announcement by Attorney General Merrick Garland on key efforts by the Department of Justice to advance environmental justice.
In her welcome remarks to the working group, U.S. Attorney Dena J. King thanked the partner agencies for their participation and expressed the Office’s commitment to environmental justice in communities across the Western District. U.S. Attorney King also highlighted prosecutors’ efforts to hold accountable violators of federal environmental statutes and noted that federal laws are in place to protect natural resources and prevent harmful pollutants from posing health risks for communities.
“The collaboration between my Office and our partner agencies is crucial in protecting communities from environmental harm,” said U.S. Attorney King. “Our dedication to environmental justice is unwavering, and together, we can ensure that our efforts are effective and impactful.”
Today’s working group meeting focused on federal prosecutors’ criminal and civil enforcement efforts, collaboration with partner agencies to develop goals and strategies including identifying areas qualifying under the EJI, as well as next steps and action items in support of potential leads and investigations. In addition, participants discussed efforts to increase education and public awareness and develop action items related to environmental statute violations.
For more information about the U.S. Attorney’s Office’s Environmental Justice Initiative, please visit: https://www.justice.gov/usao-wdnc/civil-rights-program#EJC
Two New Jersey Men Sentenced for Scheme to Defraud Investors in Hemp CompanyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that VITALY FARGESEN and IGOR PALATNIK were sentenced to 4 years and 78 months in prison, respectively, by U.S. District Judge Loretta A. Preska for participating in a fraudulent scheme to defraud investors in CanaFarma Corp. and, later, CanaFarma Hemp Products Corp. (together, “CanaFarma”), by soliciting funds based upon false and misleading representations, failing to invest investor’s funds as promised, and secretly misappropriating millions of dollars of CanaFarma funds. PALATNIK was sentenced on January 11, 2024, and FARGESEN was sentenced today.
U.S. Attorney Damian Williams said: “Vitaly Fargesen and Igor Palatnik orchestrated a sophisticated scheme to obtain millions of dollars from investors by falsely pledging to spend their funds building a legitimate business. Instead, Fargesen and Palatnik deceived investors about the nature of their business and kept millions of dollars of investor funds for their own personal use. After they were charged, Fargesen and Palatnik attempted to escape accountability by obstructing this Office’s investigation of their crimes. Today’s sentence should serve as a reminder that if you steal from investors and cover up your crimes, you will pay a steep price.”
According to the allegations contained in the Indictment and statements made in public filings and public court proceedings:
From in or about March 2019 to in or about March 2020, CanaFarma was a privately held Delaware corporation with offices in New York, New York. Beginning on or about March 19, 2020, CanaFarma was listed on the Canadian Stock Exchange, and beginning on or about March 23, 2020, CanaFarma was listed on the Frankfurt Stock Exchange. CanaFarma marketed itself to the investors as a “fully integrated cannabis company addressing the entire cannabis spectrum from seed to delivery of consumer products.” To the public, FARGESEN was held out as Senior Vice President of Strategic Planning and PALATNIK as Senior Vice President of Product Acquisition at CanaFarma. In truth, the two men exercised full control of CanaFarma but hid their control from the investing public by, among other things, convincing an experienced businessman to falsely present himself to the market as the CEO of the company.
Using their control of CanaFarma, FARGESEN and PALATNIK devised and carried out a scheme to defraud CanaFarma’s investors by soliciting approximately $14 million in funds, including investments in private shares of CanaFarma, with false and misleading representations concerning the company’s management, products, and financials; failing to invest investor’s funds as promised; and secretly misappropriating at least $4 million of CanaFarma funds for their own benefit. FARGESEN and PALATNIK effectuated the scheme by, among other things, controlling CanaFarma through a nominal CEO who reported to FARGESEN and PALATNIK, lying to investors regarding CanaFarma’s actual and anticipated operations, attempting to artificially inflate CanaFarma’s reported revenue, making false statements to CanaFarma’s auditors, and misappropriating millions of dollars of investor funds.
* * *
In addition to the prison sentence, FARGESEN, 54, of Manalapan, New Jersey, and PALATNIK, 49, of Morganville, New Jersey, were each ordered to forfeit $1,733,000 and to pay restitution in the amount of $4,703,915.26.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
The case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Adam Hobson, and Sarah Mortazavi are in charge of the prosecution.
Two Former Postal Workers Charged with Stealing U.S. Treasury Checks Valued at More Than $4 Million from Kennedy Airport Mail FacilityRead the Press Release
Four separate indictments were unsealed today at the federal courthouse in Brooklyn charging five defendants with crimes related to the fraudulent theft and deposit of checks issued by the United States Department of the Treasury. As alleged in the indictments, two of the defendants, both former United States Postal Service (USPS) employees, allegedly sold the checks which were stolen from a USPS mail facility located at John F. Kennedy International Airport (JFK Mail Facility) where one of the defendants worked. The other three defendants fraudulently endorsed and deposited Treasury checks that were not addressed to them. Four of the defendants were arrested this morning and are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. One of the defendants remains at large.
Breon Peace, United States Attorney for the Eastern District of New York; Daniel Brubaker, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), Matthew Modafferi, Special Agent in Charge, United States Postal Service Office of Inspector General, Northeast Area Field Office (USPS OIG); Edward A. Caban, Commissioner, New York City Police Department, (NYPD); Michael Carpenter, Special Agent in Charge, United States Treasury Inspector General for Tax Administration, Northeast Field Division (TIGTA); and Patrick J. Freaney, Special Agent in Charge, United States Secret Service (Secret Service), announced the arrests and charges.
“The former postal workers abused their positions of trust to allegedly pull one of the biggest thefts at John F. Kennedy International Airport,” stated United States Attorney Peace. “The charges allege these five defendants stole, sold and fraudulently deposited millions of dollars in U.S. Treasury checks, which included pandemic relief payments, for their own financial benefit. Criminals who cash in on checks stolen from the mail can expect to fill out change of address forms for the federal prison they will be calling home.”
“Postal Inspectors relentlessly pursue criminals who exploit the US Mail for unlawful purposes. The indictments of these co-conspirators who allegedly stole Treasury Checks and defrauded the American taxpayer serve as a resounding message to anyone who wants to steal US Mail. We will steadfastly work with our partners in law enforcement and the US Attorney’s Office, and we will hold criminals accountable for their actions,” stated USPIS Inspector in Charge Brubaker.
“The Special Agents of the U.S. Postal Service Office of Inspector General will vigorously investigate Postal Service employees and their co-conspirators who break the public’s trust. Postal Service employees who trade their integrity for greed and those who conspire with them should know that the Agents of the U.S. Postal Service Office of Inspector General will tirelessly work to bring them to justice. The USPS OIG is thankful for the great relationships we have developed with our law enforcement partners and with the U.S. Attorney’s Office to combat this criminal scheme affecting the American public,” stated USPS-OIG Special Agent in Charge Modafferi.
“NYPD investigators are proud to have helped thwart this multimillion-dollar scheme that allegedly bilked innocent victims of their deserved checks,” stated NYPD Commissioner Caban. “We and our law enforcement partners are committed to maintaining the integrity of a postal system relied upon by millions of New Yorkers. And we vow to hold accountable anyone involved in the types of crimes outlined in these indictments, especially public employees who might pursue illicit gain by leveraging their positions of trust.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates individuals who attempt to exploit United States Treasury refund checks meant for hard working taxpayers for their own private gain,” stated TIGTA Special Agent in Charge Carpenter. “Our mission at the TIGTA is to protect the integrity of our Nation’s system of tax administration. We are committed to working with our law enforcement partners to ensure that those who endeavor to violate federal laws related are prosecuted to the fullest extent possible.”“This 21-month investigation brought down a brazen criminal enterprise whose very existence violated the public trust,” stated Secret Service Special Agent in Charge Freaney. “I want to commend the United States Postal Inspection Service, along with our many partners for rooting out this flagrant corruption through persistent and exacting investigative work. The Treasury checks stolen in this case disrupted thousands of lives and syphoned funds from the pockets of the very people the accused were expected to serve. The Secret Service is proud to play a role in holding these defendants accountable.”
United States v. Kevaughn Wellington and Ky-Mani Straker
As alleged in the indictment, between at least June 2021 and August 2023, the defendants Kevaughn Wellington and Ky-Mani Straker engaged in a scheme to steal and sell Treasury checks intended for, among other things, individuals entitled to Social Security benefits, COVID-19 stimulus checks and tax refunds. Wellington stole parcels containing Treasury checks from the JFK Mail Facility where he was employed at the time as a postal worker. Then, together with Straker and others, Wellington sold the stolen Treasury checks for a cut of the profit.
As part of the scheme, Wellington and Straker stole over 125 Treasury checks valued at more than $4 million. Straker falsely endorsed and deposited stolen Treasury checks in a bank account and withdrew the deposited funds for his own financial gain.
The defendants have been charged with conspiring to steal government funds, theft of government funds and possession of stolen mail. In addition, Wellington has been charged with theft of mail by a postal service employee and Straker has been charged with passing Treasury Checks bearing forged endorsements.
United States v. Angel Ortiz; United States v. Mark Dawson; United States v. Fuquan Bradley
As alleged in the remaining indictments, Angel Ortiz, Mark Dawson and Fuquan Bradley each deposited and falsely endorsed Treasury checks in excess of $1,000 that were not addressed to them. Each defendant has been charged separately with theft of government funds and passing Treasury Checks bearing forged endorsements.
The charges in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elias Laris is in charge of the prosecutions.
The Defendants:
KEVAUGHN WELLINGTON
Age: 31
Jamaica, New YorkKY-MANI STRAKER
Age: 24
Orange, New JerseyE.D.N.Y. Docket No. 24-CR-275 (DG)
ANGEL ORTIZ
Age: 27
Jamaica, New YorkE.D.N.Y. Docket No. 24-CR-281 (DG)
MARK DAWSON
Age: 28
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-278 (LDH)
FUQUAN BRADLEY
Age: 34
Bronx, New YorkE.D.N.Y. Docket No. 24-CR-279 (RER)
Trussville Man Sentenced in Multi-Million-Dollar Health Care Fraud CaseRead the Press Release
BIRMINGHAM, Ala. – Another man has been sentenced in a series of cases involving multi-million-dollar health care fraud and kickback conspiracies, announced U.S. Attorney Prim F. Escalona; Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples; and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
“This was a crime of greed and indifference to the consequences of the actions to the overall health system,” said U.S. Attorney Prim Escalona. “The crime cost insurers millions of dollars, and it exploited vulnerable patients trying to get appropriate medical care, not run up the tab on insurance. We will continue to fight hard to keep our community safe from serious crimes like this one.”
“Health care fraud is not a victimless crime. It costs U.S. taxpayers millions of dollars every year. It can raise health insurance premiums, expose patients to unnecessary medical procedures, and increase taxes,” said James DeLoatch, Acting Special Agent in Charge of the FBI Birmingham Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.”
“Kickback arrangements can compromise medical decisions and threaten the integrity of federally funded health care programs,” said Tamala E. Miles, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General. “Today’s sentence exemplifies our commitment to protecting taxpayer-funded health care programs and the patients they serve.”
Earlier this week, U.S. District Court Judge L. Scott Coogler sentenced John Alan Robson, 41, of Trussville, to 56 months in prison. Robson was also ordered to pay forfeiture of about $1.1 million, and restitution of about $5.3 million. In February 2024, Robson pleaded guilty to health care fraud conspiracy related to his work with Brian Bowman, James Ray, and others.
According to Robson’s plea agreement, Robson knew that insurers would not pay for items or services that had been ordered based on kickbacks or that were medically unnecessary for a patient. Yet Robson received kickbacks—from specialty pharmacies, a nerve conduction testing company, and brace suppliers—to generate medically unnecessary orders and prescriptions from doctors’ offices that would be billed to insurance and reimbursed at high rates.
For example, Robson marketed nerve conduction testing to medical providers for a Huntsville-based company called QBR or Diagnostic Referral Community. QBR paid those providers a flat fee (for example, $50) for each test they ordered that insurance paid for. QBR paid Robson a flat fee for each of those tests, too. QBR paid one of Robson’s medical practices more than $100,000 in per-test kickbacks.
As another example, Robson marketed high-reimbursing topical creams—such as pain creams and scar creams—to providers on behalf of specialty pharmacies like Global Compounding Pharmacy and Watson Rx Solutions. Robson was paid lucrative commissions on the cream prescriptions that he and his team generated and insurance paid for. Robson got prescriptions for himself and family members regardless of whether those topical creams were medically necessary for the patients. Robson and other sales reps got blank pre-signed prescriptions from medical providers, filled out the prescriptions to make sure insurance would pay for them, and even selected the drugs or drug formulations to make sure insurance would pay for them. Robson admitted that federal insurance programs paid millions of dollars for medically unnecessary prescriptions for which Robson, Ray, and Bowman received commissions.
This case is the latest in a series of cases involving health care fraud and kickbacks through pain clinics, specialty pharmacies, and a nerve conduction company in north Alabama.
The FBI and HHS-OIG investigated this case. Assistant U.S. Attorneys J.B. Ward and Don Long prosecuted the case.
See related press here:
https://www.justice.gov/usao-ndal/pr/medical-sales-rep-and-former-pain-clinic-owner-sentenced-related-multi-million-dollar
https://www.justice.gov/usao-ndal/pr/pain-clinic-owners-sentenced-unlawfully-distributing-opioids-and-multimillion-dollar
https://www.justice.gov/usao-ndal/pr/etowah-pain-clinic-owner-pleads-guilty-multi-million-dollar-kickback-and-health-care
https://www.justice.gov/usao-ndal/pr/multiple-defendants-sentenced-major-compounding-pharmacy-fraud-conspiracy
https://www.justice.gov/usao-ndal/pr/new-hope-man-sentenced-his-role-multi-million-dollar-kickback-and-health-care-fraud
Toledo Man Indicted for Robbery of Postal EmployeeRead the Press Release
TOLEDO – A federal grand jury has returned a three-count indictment charging Damere Wilson, 20, of Toledo, Ohio, with robbery of mail, money, or other property of the United States, stealing mail collection box keys, and mail theft. The violations allegedly took place while a United States Postal Service letter carrier was on a delivery route.
According to court documents, an individual approached the letter carrier on March 12, 2024, delivering mail at the Piccadilly Apartments in Oregon, Ohio. The letter carrier indicated a hard object was shoved into their back and the individual demanded the keys to the mailboxes. Wilson’s vehicle was observed fleeing the scene of the robbery through information gathered via surveillance videos which resulted in the execution of a search warrant at a duplex on Maplewood Avenue in Toledo.
The postal key stolen from the letter carrier, as well as more than 200 checks totaling thousands of dollars, were recovered during a search warrant execution. More than 100 mail theft victims were identified from throughout northern Ohio.
If convicted, Wilson’s sentence will be determined by the court after review of factors unique to this case, including his prior criminal record, if any, his role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases, it will be less than the maximum.
The case is being prosecuted by Assistant United States Attorney Frank H. Spryszak for the Northern District of Ohio. The investigation preceding the indictment was a collaborative effort conducted by the United States Postal Inspection Service (USPIS), and the the City of Oregon Police Division.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
To report mail theft or other crimes committed through, or towards, the United States Postal Service, call the USPIS at 1-877-876-2455 or visit https://www.uspis.gov/report.
Three Indicted for Armed Robbery of Cash CourierRead the Press Release
BOSTON – Three men have been indicted for the February 2024 armed robbery of a cash courier in Swansea, Mass. The defendants allegedly robbed the courier at gunpoint; zip-tied and pepper sprayed the victim; and then burned the stolen getaway vehicle.
Steven Madison, 38, of Bridgewater; Christopher White, 37, of Raynham; and Quentin McDonald, 25, of Brockton, were each indicted on one count of robbery interfering with interstate commerce, commonly referred to as Hobbs Act robbery; one count of conspiracy to commit Hobbs Act robbery; one count of arson of property used in or affecting interstate commerce; and one count of conspiracy. Madison and White were also indicted for brandishing a firearm in the commission of a crime of violence; one count of being a felon in possession of a firearm; and one count of possession with intent to distribute cocaine. The defendants were arrested and charged by criminal complaint in May 2024.
According to the charging documents, in the early morning hours of Feb. 19, 2024, two men were seen on video stealing a rental van from a U-Haul Moving & Storage location in Abington, Mass. Later in the day an armed courier who worked for a company that provides secure cash transportation services for licensed cannabis companies arrived at a bank in Swansea, Mass. carrying approximately $436,200 in cash for deposit.
It is alleged that the U-Haul van pulled up alongside the courier and a masked man wearing a camouflaged vest exited the van and pointed a firearm at the courier before zip-tying the courier’s hands behind his back. It is further alleged that a second masked man exited the U-Haul van and quickly loaded the cash into the vehicle. After trying to disarm the courier, the two men allegedly forced the courier into the back seat of his own car, pepper sprayed him and closed the door.
Surveillance footage showed that the courier managed to remove one hand from the zip-tie restraints while inside his vehicle, draw his firearm and fire four rounds in the direction of the U-Haul van as it fled the scene before calling 911.
After leaving the bank, the men allegedly drove the van to a nearby location in Swansea where they met with a third man driving an SUV. It is alleged that the men then transferred the stolen cash into the getaway SUV, burned the U-Haul van and fled.
A subsequent investigation allegedly identified Madison, White and McDonald as the individuals involved in both the robbery and arson. It is alleged that during a search of Madison’s residence in Bridgewater, an estimated $5,000 or more in cash was located in various amounts throughout the house, as well as a Rolex watch appraised at $47,000, a sweatshirt similar to that worn by one of the robbers, a firearm, ammunition and cocaine. Following a search of White’s residence in Raynham, zip-ties, a black mask similar to that worn by one of the robbers, a firearm, ammunition and cocaine were recovered.
According to the charging documents, both Madison and McDonald have prior state convictions for masked armed robbery, assault and battery by means of a dangerous weapon and unlawfully possessing a firearm. White has prior state convictions for larceny and receiving stolen property.
The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of arson of property used in or affecting interstate commerce provides for a mandatory minimum sentence of five years and up with 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute cocaine carries a maximum sentence of up to 20 years and a $1 million fine. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years, to be served consecutively to any sentence on the underlying offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Swansea Police Chief Mark Foley made the announcement today. Valuable assistance was provided by the Bristol County District Attorney’s Office and the Bridgewater, Brockton and Raynham Police Departments. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit and Special Assistant U.S. Attorney Patrick Driscoll are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The Grand Health Care System and Twelve Affiliated Skilled Nursing Facilities to Pay $21.3 Million for Allegedly Providing and Billing for Fraudulent Rehabilitation Therapy ServicesRead the Press Release
ALBANY, NEW YORK – Strauss Ventures LLC doing business as The Grand Health Care System and 12 affiliated skilled nursing facilities (collectively, the Grand), have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled, or that simply did not occur as billed. Many of the settling facilities are located in upstate and central New York, including in Albany, Oneida, Madison, Columbia, and Herkimer counties.
“Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said United States Attorney Carla B. Freedman. “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”
The settlement resolves allegations that from as early as January 1, 2014 to September 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported.
As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.”
The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.
“We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Department of Justice’s Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.”
The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York nursing home between January 1, 2016 and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there.
The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”
“The Grand admitted to providing unnecessary care to our most vulnerable, to include knowingly keeping patients in their facilities and away from their loved ones when they needed them most,” said Craig Tremaroli, Special Agent in Charge of the FBI’s Albay Field Office. “This settlement illustrates the FBI’s commitment to working with our partners to protect federally funded healthcare programs from abuse by companies looking to line their pockets with taxpayer dollars.”
“As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” stated Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
“Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” stated Acting Special Agent in Charge Brian J. Solecki of DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold DoD contractors accountable for their fraudulent activity and ensure America’s service members are not subject to unnecessary risk.”
The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by two former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 1:19-cv-1311.
The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI, Albany Field Office; DCIS, Syracuse Resident Agency, and the New York State Attorney General’s Office investigated the matter. Assistant U.S. Attorney Adam J. Katz and Senior Trial Counsel Christelle Klovers represented the United States.
grand_-_final_federal_settlement_agreement_fully_executed_1.pdfThe Grand Health Care System and 12 Affiliated Skilled Nursing Facilities to Pay $21.3M for Allegedly Providing and Billing for Fraudulent Rehabilitation Therapy ServicesRead the Press Release
Strauss Ventures LLC, doing business as The Grand Health Care System, and 12 affiliated skilled nursing facilities (collectively, the Grand) have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled or that simply did not occur as billed.
“We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.”
The settlement resolves allegations that, from as early as Jan. 1, 2014, to Sept. 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported.
As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.”
The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered.
“Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.”
The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York, nursing home between Jan. 1, 2016, and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there.
The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.”
“As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” said Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.”
“Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold Department of Defense contractors accountable for their fraudulent activity and ensure America's service members are not subject to unnecessary risk.”
The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Stacey Rosenberger and Kelley Retig, former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is captioned United States ex rel. Rosenberger and Retig v. Strauss Ventures, LLC, et al., No. 1:19-cv-1311 (N.D.N.Y.).
The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI Albany Field Office; DCIS, Syracuse Resident Agency and the New York State Attorney General’s Office investigated the matter.
Senior Trial Counsel Christelle Klovers of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York prosecuted the case.
SettlementSun Prairie Woman Sentenced to 7 Years for Fentanyl TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Brianna M. Reno, 27, Sun Prairie, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for conspiracy to possess and distribute 40 grams or more of fentanyl. The prison term will be followed by 5 years of supervised release. Reno pled guilty to this charge on April 16, 2024.
On January 26, 2023, law enforcement intercepted two suspicious packages being shipped to the Madison area from Arizona. After obtaining a search warrant, officers opened the packages and inside each, found a stuffed animal containing approximately 2.2 kilograms of counterfeit prescription pills. In total, more than 40,000 pills were seized. Testing revealed that the pills contained fentanyl. Officers arranged for a controlled delivery of one package and co-defendants Jontell C. Shepherd and Alexis K. Davis were arrested after arriving at the delivery location to pick up the package.
The government’s investigation revealed that Reno arranged for co-defendant Keyshawna D. Draper to ship the fentanyl pills to Madison from Arizona.
During the sentencing, Judge Peterson emphasized the danger that fentanyl disguised as prescription pills poses to the community. Judge Peterson expressed concern that even though the counterfeit pills looked legitimate, they were actually far more dangerous since they contained fentanyl. He also remarked on the seriousness of Reno making “money by exploiting” those addicted to drugs.
All four defendants who were charged in this trafficking scheme have pled guilty. Shepherd and Draper’s sentencing hearings are scheduled for July 23, 2024, and Davis will be sentenced on July 25, 2024.
The charges against Reno, Shepherd, Davis, and Draper were the result of an investigation conducted by the Drug Enforcement Administration, United States Postal Inspection Service, and the Wisconsin Department of Justice Division of Criminal Investigation. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney William M. Levins prosecuted this case.
Stilwell Resident Sentenced for Assault with A Dangerous WeaponRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Tassia Ann-Lorene Sellers-Turner, age 32, of Stilwell, Oklahoma, was sentenced to 42 months imprisonment for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
The charge arose from an investigation by the Stilwell Police Department, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation.
On January 11, 2024, Sellers-Turner pleaded guilty to the charge. According to investigators, on September 9, 2023, officers responded to a 911 call of a stabbing at a Stilwell residence. Officers arrived to discover the victim bleeding from multiple life-threatening stab wounds sustained during an attack. Sellers-Turner fled the scene on foot but was apprehended and arrested by officers a short distance from the scene of the crime. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Sellers-Turner will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney T. Cameron McEwen represented the United States.
Statement of U.S. Attorney Damian Williams on the Convictions of Bill Hwang and Patrick HalliganRead the Press Release
“Moments ago, a unanimous jury found Sung Kook ‘Bill’ Hwang and Patrick Halligan guilty of a massive market manipulation scheme via the private investment firm Archegos. As the evidence at trial has shown, Hwang, founder and owner of Archegos, and Halligan, Archegos’s Chief Financial Officer, made false assurances and lied to Wall Street investment banks to induce them to provide capital to Archegos, which Hwang and Halligan then used to inflate the stock prices of several publicly traded companies. Hwang and Halligan lied about Archegos’s positions in these companies and just about every other materially important metric investment banks would use in determining the firm’s creditworthiness. In doing so, Hwang and Halligan were able to fraudulently inflate a $1.5 billion portfolio into a $36 billion portfolio. This verdict should send a resounding message that this Office will continue to police the financial markets with an eagle eye and swiftly hold accountable those who think they can cheat the system.”
St. Charles County Man Caught with Child Pornography Sentenced to 97 Months in PrisonRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a man who was caught with child sexual abuse material to 97 months in prison.
Philip Daniel Shurtliff, 34, will also have to register as a sex offender.
Shurtliff pleaded guilty in February to two counts of receipt of child pornography. He admitted that after a tip to the National Center for Missing and Exploited Children led the St. Charles County Cyber Crimes Task Force to his home, he told detectives that he had been trading child pornography for approximately 19 years. Shurtliff acknowledged that 42 files containing child sexual abuse material were in his Kik Messenger account and that investigators found 97 images and 27 videos containing child pornography on his phone.
The FBI and the St. Charles County Cyber Crimes Task Force investigated the case. Assistant U.S. Attorney Nathan Chapman 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.
Spokane Man Sentenced to More Than 22 Years in Prison Following Seizure of Large Quantity of Fentanyl-Laced Pills in Spokane Valley, WashingtonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Jordy Scott Deboer, age 32, of Spokane, Washington, was sentenced after pleading guilty to one count of Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine and one count of Possession with Intent to Distribute 400 Grams or More of Fentanyl. United States District Judge Thomas O. Rice imposed a sentence of 272 months imprisonment to be followed by 5 years of supervised release.
According to court documents and information presented at the sentencing hearing, on March 30, 2023, the Federal Bureau of Investigation’s Safe Streets Task Force executed several federal search warrants at the Motel 6 in Spokane Valley, Washington. The Task Force seized approximately 24.7 pounds of fentanyl-laced pills (approx. 83,000 pills), 2 pounds of methamphetamine, 1 pound of cocaine, as well as 2 firearms, and more than $13,000 in US Currency. Deboer and Matthew Sailors (a.k.a. Rabbit) were arrested.
Prior to this incident, Deboer was previously arrested and federally indicted for trafficking in large quantities of methamphetamine and fentanyl pills from the Tri-Cities, Washington area to the Spokane, Washington area. After his indictment, Deboer was released from federal custody to attend inpatient drug treatment.
A short time after Deboer’s release from custody to attend inpatient treatment, the Safe Streets Task Force received information he had re-engaged in drug trafficking activities, this time with Sailors. Deboer and Sailors were located at the Motel 6 in Spokane Valley engaging in drug trafficking activities, to include selling fentanyl pills. Law enforcement acted quickly, obtaining multiple federal search warrants. During the execution of the search warrants, Deboer was encountered in a hallway of the motel. When he saw law enforcement approaching him, Deboer took out a loaded firearm out of his waistband and threw it. Deboer also dropped a large black duffle bag that contained a large amount of controlled substances and tried to run away. He was quickly caught.
On September 6, 2023, Sailors pleaded guilty to one count of Possession with Intent to Distribute 400 Grams or More of a Mixture or Substance Containing Fentanyl. On December 13, 2023, Sailors was sentenced to 120 months in federal prison, to be followed by 5 years of supervised release.
“The significant amount of illicit drugs seized in this case demonstrates the need for law enforcement intervention to address the fentanyl crisis. I am grateful for the quick actions of the Safe Streets Task Force and the prosecutors in my office, who have worked to stop Mr. Deboer’s drug trafficking activities, including after he was released from custody after his initial indictment,” stated U.S. Attorney Waldref. “My office will continue to relentlessly remove deadly fentanyl and other narcotics from Eastern Washington communities and will hold accountable those who seek to profit from the illicit sale of illegal drugs.”
“Mr. DeBoer’s previous time in custody did not deter him from engaging in the same type of activities which resulted in his prior incarceration.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Each Fentanyl pill that remains on the street has the potential to destroy the life, not only of the person taking it, but also of the people who loved and cared for them. The FBI and our partners will continue the work of removing these dangerous drugs off our streets.”
This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of agents of the FBI and United States Border Patrol, as well as detectives for the Spokane County Sheriff’s Office, the Spokane Police Department, the Spokane Valley Police Department, and the Washington State Department of Corrections. The case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.
Spokane Bank Manager Sentenced to Federal Prison for Stealing more than $345,000Read the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Jessica Ann Marshall, age 28, of Spokane, Washington, was sentenced after pleading guilty to one count of Theft and Embezzlement by Bank Employee. United States District Judge Thomas O. Rice imposed a sentence of 24 months imprisonment to be followed by 5 years of supervised release, as well as restitution of $345,664.66 to be paid to the victim, the Bank of Idaho. Judge Rice ordered Ms. Marshall to be taken into custody immediately following the sentencing hearing.
According to court documents and information presented at the sentencing hearing, between June 2023 and September 2023, Marshall was working as a Bank Manager at the Bank of Idaho’s downtown Spokane, Washington branch. Using her position as a manager, Marshall stole and embezzled at least $345,664 in cash from the bank vault, ATM, and her cash drawer.
Marshall falsified documents to reconcile the cash and directed bank employees to sign falsified count sheets in order to hide her theft and embezzlement. Marshall also used her position as Bank Manger to make fraudulent deposit transactions into her spouse’s account. These fraudulent transactions reflected that money was being deposited into the account; however, no funds were deposited.
When Bank of Idaho inquired about the deposits into her spouse’s account, Marshall attempted to conceal her conduct by using a co-worker’s email account to send an e-mail with false information. Marshall then accessed the computer of another co-worker to delete an email from Bank of Idaho inquiring about the deposits.
“Ms. Marshall abused her position of extraordinary trust to enrich herself. When her conduct was discovered, Ms. Marshall attempted to obstruct the investigation into her actions,” stated U.S. Attorney Waldref. “I want to especially commend the FBI’s exceptional investigative work on this important case. Crimes like those committed by Ms. Marshall erode public confidence in financial institutions. By holding those accountable who commit theft, we restore trust and help keep Eastern Washington safe and strong.”
This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency. Assistant United States Attorney Dan Fruchter prosecuted the case on behalf of the United States.
Case No. 2:24-CR-00040-TOR
South Sioux City Man Sentenced to 63 Months’ for Possession of Child PornographyRead the Press Release
United States Attorney Susan Lehr announced that Alexander W. Harlan, 34, of South Sioux City, Nebraska, was sentenced on July 9, 2024, in federal court for possession of child pornography. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Harlan to 63 months’ imprisonment. There is no parole in the federal system. After Harlan’s release from prison, he will begin a 6-year term of supervised release.
On February 16, 2022, Alexander Harlan self-admitted to St. Luke’s Hospital in Sioux City, Iowa. During an interview with a social worker, he admitted to possessing child pornography on his electronic devices. In an interview with an FBI agent, Harlan admitted to having child pornography on his devices and said he purchased child pornography from “overseas retailers” from his residence in South Sioux City, Nebraska.
The FBI searched his apartment and seized 12 devices. The devices were submitted for forensic examination. The forensic examination yielded over 600 images of child pornography on 3 of the devices.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation.
Shipyard Contractor Sentenced to Prison for Stealing Almost $600,000 Worth of Computer Equipment from the U.S. NavyRead the Press Release
NEWS RELEASE SUMMARY – July 10, 2024
SAN DIEGO – Ernesto Saldivar, a civilian contractor at General Dynamics NASSCO who was employed as part of the shipyard’s modernization efforts, was sentenced in federal court today to 18 months in prison for stealing almost $600,000 worth of computer equipment from several U.S. Navy ships.
According to court documents, from November 2022 to August 2023, Saldivar stole hundreds of military hard drives and laptops from declassified areas on ships undergoing maintenance. Saldivar then sold the stolen items on eBay. Two of the hard drives he stole contained classified military communications. The affected ships included the USS Pinckney, USS Curtis Wilbur and USS Spruance. The total value of the stolen computer equipment – including two laptops, two programmer units, four DC-DC converters, 18 power converters, and 302 hard drives – totaled $596,997.53.
During the investigation of the missing hard drives, the U.S. Army Criminal Investigation Laboratory conducted a forensic analysis on fingerprints left inside the empty hard drive trays. These interior areas of the hard drive trays could only be touched after a hard drive was removed. The prints belonged to Saldivar. Naval Criminal Investigative Service agents also traced eBay listings of some of the stolen equipment to Saldivar. And, during a court-authorized search of Saldivar’s home on August 25, 2023, NCIS agents recovered 120 of the missing hard drives, a Panasonic Toughbook laptop from the USS Pinckney with software from Integrated Voice Communications System (IVCS), several DC-DC converters traceable to the USS Pinckney, a BPM Microsystems 1410 taken from the Curtis Wilbur, and a BPM Microsystems 1710 Universal Device Programmer matching the serial number of an inventoried loss, all stored haphazardly in a shed on Saldivar’s property.
Saldivar admitted in his plea agreement that the total value of the stolen items was $596,997.53, almost all of which he was ordered to pay the United States government in restitution. The defendant was also ordered to pay back the United States Navy the $2,584.98 he incurred in payments from eBay sales of the stolen items.
Prosecutors urged the court to impose a custodial sentence, noting that the three U.S. Navy destroyers that Saldivar stole from are critical to the national defense of the United States.
At sentencing, U.S. District Judge John A. Houston repeatedly admonished Saldivar for committing a “grave breach of national security,” and noted the danger Saldivar’s criminal behavior posed to military personnel and national defense. The judge declined to impose defense’s recommended sentence of probation, stating that “if you steal from the United States Navy, you go to jail. You don’t get a walk.”
“Stealing from the military doesn’t just hurt the taxpayer, it puts our national security at risk,” said U.S. Attorney Tara McGrath. “Our armed forces rely heavily on contract employees and service members must be able to trust the civilians standing by their side.”
“Mr. Saldivar’s criminal actions to steal nearly $600,000 worth of computer equipment from multiple U.S. Navy ships betrayed the Navy's warfighters, posed a threat to our national security, and wasted valuable taxpayer money,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS and our partners remain committed to protecting the Department of the Navy’s assets.”
This case was prosecuted by Assistant U.S. Attorney Sarah Goldwasser and former Assistant U.S. Attorney Michelle Wasserman.
DEFENDANT Case Number 24CR532-JAH
Ernesto Saldivar Age: 30 San Diego, CA
SUMMARY OF CHARGES
Theft of Government Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Inspector General Hotline at 800-424-9098.
Seven Indictments Returned and One Sentencing Handed Down for Multiple Felony Second-Degree Theft DefendantsRead the Press Release
WASHINGTON – Several individuals were indicted by a grand jury in the Superior Court of the District of Columbia for felony second-degree theft. One other individual was sentenced for felony second-degree theft, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A grand jury indicted Mohamed A. Mohamed, 36, Washington, D.C., on July 3, 2024, on one count of felony second-degree theft. Arraignment is scheduled for July 11th.
A grand jury indicted Deangelo L. Reed, 36, of Washington, D.C., on July 5, 2024, of one count of felony second-degree theft and threats to do bodily harm. Arraignment is scheduled for July 29th.
A grand jury indicted Richard T. Holmes, 51, of Washington, D.C., on July 3, 2024, on one count of felony second-degree theft. Arraignment is scheduled for July 11th.
A grand jury indicted Emoni Hubbard, 29, of Washington, D.C., on July 5, 2024, on three counts of felony second-degree theft. Arraignment is scheduled for August 22nd.
A grand jury indicted Quinton Mercer, 44, of Washington, D.C. on July 3, 2024, on one count of felony second-degree theft. Arraignment is yet to be scheduled.
A grand jury indicted Meredith Wilson, 51, of Washington, D.C., on July 3, 2024, on one count of felony second-degree theft. Arraignment is yet to be scheduled for August 1st.
Eugene Fleet, 61, of Washington, D.C., was sentenced on July 1, 2024, in D.C. Superior Court, to one year in prison for felony second-degree theft from events occurring on January 12, 2024. According to the government’s evidence, on December 19, 2023, Fleet took a package containing a pair of jeans from a resident’s porch in Northwest, Washington, D.C. Then, less than a month later, on January 12, 2024, Fleet took a package containing a baby blanket from a resident’s porch in Northwest, Washington, D.C. In doing so, Fleet unlawfully entered areas he was not legally allowed to be in. Fleet had multiple prior theft convictions and was therefore subject to the enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in prison. The government had indicted Fleet on February 23, 2024. Fleet pleaded guilty in both cases on April 29, 2024. The Court imposed the one-year mandatory minimum of each of Fleet’s theft convictions but sentenced him concurrently.
Since September 1, 2023, including the aforementioned cases, the United States Attorney’s Office for the District of Columbia has indicted 56 cases involving a felony second-degree theft charge based on a defendant’s two or more prior theft convictions, not from the same occasion.
In announcing the indictments and the sentencing, U.S. Attorney Graves and Chief Smith commended the work of those investigating the case from the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Columbia. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty
Serial Rapist Indicted for Three Violent Stranger Sexual AttacksRead the Press Release
WASHINGTON – Jose Angel Gomez, 42, formerly of Washington D.C., was indicted today by a District of Columbia grand jury on numerous counts of first degree sexual abuse while armed with aggravating circumstances and first degree sexual abuse with aggravating circumstances, for three rapes involving three different victims who were strangers to him, that occurred between July and October 2018, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
On July 10, 2024, a District of Columbia grand jury returned an indictment, charging Gomez with three counts of first-degree sexual abuse while armed with aggravating circumstances, five counts of first-degree sexual abuse with aggravating circumstances, and two counts of assault with a dangerous weapon, for the attacks on the three victims. If convicted, Gomez faces a maximum penalty of life without release, and would be required to register as a sex offender for the remainder of his lifetime. Trial is scheduled to begin on September 17, 2024, before the Honorable Anthony Epstein.
According to court documents, on July 15, 2018, at approximately 2:45 a.m., Gomez knocked on the back door of a home in the 5500 block of 8th St. NW. When the victim emerged, Gomez brandished a knife to her face, forced the victim to the ground and raped her at knifepoint. The victim was able to kick Gomez and escape back inside of her home, where she called 911. The victim sustained a cut to her face and other injuries. Police responded immediately, canvassed for the suspect, and transported the victim to the hospital, where she obtained a sexual assault examination.
On September 7, 2018, at approximately 11:48 p.m., in the 100 block of Gallatin Street, NE, Gomez raped a second victim at knifepoint, also a stranger to him. This time, Gomez followed a woman from the Ft. Totten Metro, and dragged the victim into a wooded area nearby, where he raped her at knifepoint. Gomez then fled the scene. The victim sustained injures but was able to flag down police. The victim was transported by ambulance to the hospital, where she received a sexual assault examination.
On October 21, 2018, at approximately 6:35 a.m., in the 5400 block of 7th Street, NW, Gomez sexually assaulted a third stranger victim. The victim had called for a share ride to take her to work. As she waited at the corner of 7th and Longfellow Street, NW, the defendant approached her and began talking to her. The victim asked Gomez to leave her alone, but he continued trying to have a conversation with her. As she checked on the status of her rideshare vehicle, she started to walk away but Gomez followed her. Gomez grabbed the victim by the throat and dragged her under the porch of a nearby home. Gomez raped the victim under the porch, strangling the victim harder when she attempted to move. When the assault was over, Gomez fled on foot. The victim sustained injuries and immediately returned home and called police, who responded promptly. The victim was transported to the hospital, where she obtained a sexual assault examination.
By December 2018, all three rape kits had been forensically tested, and the DNA profile of an unknown male had been obtained from the testing of all three kits and entered into the Combined DNA Index System (CODIS) maintained by the FBI. The cases matched each other but the perpetrator was still unknown.
Detectives with MPD’s Sexual Assault Unit continued to develop and investigate forensic leads over the next several years in an exhaustive effort to identify the unknown assailant. Once identified, Gomez was arrested in Louisville, Kentucky on June 7, 2023 and transported by law enforcement to D.C. Subsequent DNA testing confirmed that Gomez was the rapist in all three cases. He is currently detained pending trial.
This case was investigated by the Metropolitan Police Department, including the Sexual Assault Unit and the Cold Case Unit of the Sexual Assault Unit, and the U.S. Attorney’s Office for the District of Columbia. This case is being prosecuted by Assistant U.S. Attorneys Marco Crocetti and Amy Zubrensky.
This case was brought as part of the U.S. Attorney’s Office’s Cold Case Sexual Assault Initiative. In February 2018, the U.S. Attorney created the Cold Case Sexual Assault Initiative, designed to work with law enforcement partners to reinvestigate, solve and bring charges in previously-unsolved cases of sexual assault of adults and juveniles. The Cold Case Initiative works with the Metropolitan Police Department, the Federal Bureau of Investigation, the United States Marshal’s Service, and state and local law enforcement agencies in the DMV area and nationwide.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Senior Leaders of Lev Tahor Sect Sentenced to 14 and 12 Years in Prison for Kidnapping and Sex Trafficking CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN were sentenced yesterday to 14 years, 14 years, and 12 years in prison, respectively, for child sexual exploitation and kidnapping offenses. The defendants, leaders of an extremist religious sect called Lev Tahor, masterminded a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York. The defendants then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband” to allow him to continue his illegal sexual relationship with Minor-1. The defendants were convicted in March 2024 following a five-week jury trial before U.S. District Judge Nelson S. Román.
U.S. Attorney Damian Williams said: “The sentencing of the Weingarten brothers holds them accountable for kidnapping children from their mother in the middle of the night, including for the purpose of coercing a child into a sexual relationship with an adult. This Office will do everything in its power to protect children and use every available tool to investigate and prosecute those who sexually exploit them.”
According to the allegations contained in the Superseding Indictment, other court filings, and the evidence presented at trial:
The WEINGARTEN brothers—YAKOV, SHMIEL, and YOIL—are U.S. citizens and senior leaders of Lev Tahor, an extremist religious sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala. Lev Tahor leaders, including the WEINGARTENs, embraced several extreme practices, including forced family separations, child marriages, and underage sex.
In or about 2017, Lev Tahor leaders arranged for a 12-year-old girl, Minor-1, to be “married” to a then-18-year-old man. Though they were never legally married, they were religiously “married” the following year, when Minor-1 was 13 and her “husband” was 19. Lev Tahor leadership, including the WEINGARTENs, required young brides such as Minor-1 to have sex with their husbands, to tell people outside Lev Tahor that they were not married, and to lie about their ages. For example, Lev Tahor leaders instructed child brides to deliver babies inside their homes instead of at a hospital to conceal the mothers’ young ages from outsiders.
In or about October 2018, the mother of Minor-1 determined that it was no longer safe for her children to remain in the Lev Tahor community, which was then living in Guatemala. The mother escaped from the group’s compound, arrived in the U.S. in early November 2018, and was eventually joined by all six of her children, including Minor-1. Also in November 2018, a Brooklyn family court granted her sole custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.
After the mother fled and settled in New York with her children, the WEINGARTENs and their co-conspirators devised a plan to kidnap Minor-1, then 14 years old, to return her to Guatemala and to her then-20-year-old “husband.” In December 2018, they kidnapped Minor-1 and her brother in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico. In order to carry out the kidnapping, the defendants used disguises, aliases, drop phones, fake travel documents, and an encrypted application. At the time of the kidnapping, Lev Tahor leaders were seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran.
Following a three-week search involving hundreds of local, federal, and international law enforcement entities, Minor-1 and Minor-2 were recovered in Mexico and returned to New York. In or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap the children but were unsuccessful.
* * *
In addition to the prison terms, YAKOV WEINGARTEN, 34, SHMIEL WEINGARTEN, 28, and YOIL WEINGARTEN, 36, each of Guatemala, were sentenced to five years of supervised release.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the New York State Police, the Sullivan County District Attorney’s Office, U.S. Customs and Border Protection, the Rockland County Sheriff’s Department, the Village of Spring Valley Police Department, Special Agents with the U.S. Attorney’s Office for the Southern District of New York, the Department of State, the Transportation Security Administration, and our law enforcement partners in Mexico, Guatemala, Canada, and Israel.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Sam Adelsberg, Jamie Bagliebter, and Jim Ligtenberg, and paralegal specialist Shannon Becker, are in charge of the prosecution.
Sauk Centre Man Sentenced to More Than 19 Years in Prison for Producing Child PornographyRead the Press Release
MINNEAPOLIS – A Sauk Centre man has been sentenced to 235 months in prison followed by 10 years of supervised release for coercing minors to produce sexually explicit images, announced United States Attorney Andrew M. Luger.
According to court documents, Shawn Norbert Kulzer, 32, began chatting with a minor victim on Snapchat on or about January 2, 2023. Over the course of their conversation, Kulzer learned that the minor victim was under the age of 18, yet still pressured them to send nude photographs. In his plea agreement, Kulzer also admitted that he used and enticed a second minor victim to produce and send sexually explicit images over Snapchat. While on pretrial release for these charges, Kulzer obtained another cell phone and engaged in the same behavior with at least six additional victims.
On March 14, 2024, Kulzer pleaded guilty in U.S. District Court before Judge Nancy E. Brasel to one count of production and attempted production of child pornography. At sentencing, Judge Brasel noted that Kulzer’s offense is “the nightmare that every parent thinks of when they think of online behavior involving their children.”
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 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 in crimes involving child pornography, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation led by the FBI, the Stearns County Sheriff’s Office, and the Sauk Centre Police Department.
Assistant U.S. Attorney Emily Polachek prosecuted the case.
Salina Couple Sentenced After Being Found Guilty of Child Abuse and NeglectRead the Press Release
TULSA, Okla. – In June of 2023, a federal jury found Joel Richard Smith and Amanda Irene Smith guilty of Child Abuse in Indian Country and Child Neglect in Indian Country.
Today, U.S. District Judge Sara E. Hill sentenced the Salina husband and wife in separate hearings. Judge Hill ordered Joel Richard Smith, 49, a Cherokee Nation citizen to 180 months imprisonment, followed by three years of supervised release. Amanda Irene Smith, 45, was sentenced to 240 months imprisonment, followed by three years of supervised release.
According to testimony and evidence presented at trial, Joel and Amanda Smith were legal guardians for the 9-year-old child victim. In April 2019, the Mayes County Sheriff’s Office received a call about a child who escaped to a neighbor's home, was hungry, filthy, and in need of medical attention.
At trial, the child victim testified about the abuse and neglect that she suffered at the hands of the defendants. She described being forced to do manual labor in the yard with her hands, like digging holes and moving large rocks. She would be locked outside for extended periods, even in poor weather. If the child was allowed to eat, she said it was usually a bottle, oatmeal, or baby food. At night, she would crawl into the kitchen to get food because she was hungry. After being caught, she stated she was handcuffed to the pack-n-play she slept in. She described being forced to wear diapers instead of being allowed to use the restroom, being hit with a broom that broke on her head, a belt, and a horsefly.
Testimony from medical professionals revealed that the child entered the home of the Smiths at age four and weighed 50 pounds. However, in April 2019, at age nine, the child victim only weighed 41 pounds. Medical professionals testified about the child's malnutrition, bruising, and infected handcuff wounds.
At sentencing, Joel Smith took responsibility for his actions and inactions. However, Amanda Smith continued to deny any involvement.
Joel Smith will remain in custody pending transfer to the U.S. Bureau of Prisons. Amanda Smith was permitted to remain on bond and voluntarily surrender to the U.S. Bureau of Prisons.
The FBI and Mayes County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Stephanie Ihler and Melody Nelson prosecuted the case.
Rite Aid Corporation and Elixir Insurance Company Agree to Pay $101M to Resolve Allegations of Falsely Reporting RebatesRead the Press Release
The Justice Department announced today that Rite Aid Corporation and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC and RX Solutions LLC, have agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid’s bankruptcy case pending in the District of New Jersey. The settlement is based on the companies’ ability to pay and was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. In addition to operating one of the country’s largest retail pharmacy chains, Rite Aid offered Medicare drug plans and pharmacy benefits manager (PBM) services through Elixir Insurance, RX Options and RX Solutions.
“Participants in Medicare’s drug program must accurately report price concessions, including drug manufacturer rebates, to ensure that the government receives the benefit of those concessions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Justice Department’s commitment to hold accountable entities that pursue their own financial interests at the expense of taxpayer programs.”
“Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Each of those dollars could have been used to benefit Americans with genuine health care needs. Our office will not tolerate deceptive health-insurance practices, and we will vigorously pursue those who violate the FCA.”
Under Medicare Part D, private entities known as Part D Plan Sponsors offer and administer insurance plans that provide prescription drug coverage to enrolled Medicare beneficiaries. Part D Sponsors must submit annual reports to the Centers for Medicare and Medicaid Services (CMS) with information about rebates and other remuneration the Plans received from drug manufacturers in connection with the Part D drugs provided to beneficiaries, which ensures that the government receives the benefit of any price concessions provided by drug manufacturers to purchasers of the drugs covered under the Part D plan. CMS relies on the reports in the annual reconciliation process that determines payments due to the Plans or CMS at the end of the year.
The settlement resolves allegations that, between 2014 and 2020, the defendants improperly reported to CMS portions of rebates received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. The United States further alleged that Elixir Insurance knew the retained rebates did not meet the regulatory definition of bona fide services fees.
“Truthful and accurate documentation in the delivery of health care goods or services is crucial to the integrity of federal health care programs,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Improper submission of manufacturer drug rebates and fees by Part D Plan Sponsors for pharmaceutical products in order to make more money will not be tolerated. Collaborating with our law enforcement partners, HHS-OIG is committed to preventing and investigating health care fraud in Medicare and other taxpayer-funded health care programs.”
The civil settlement includes the resolution of claims brought in 2021 under the qui tam, or whistleblower, provisions of the False Claims Act by Glenn Rzeszutko, who previously worked for RX Options. The FCA authorizes a private party to sue on behalf of the United States and share in any recovery. The qui tam case is captioned United States ex rel. Rzeszutko v. Rite Aid Corporation et al., No. 5:21-CV-574 (N.D. Ohio). The relator’s share of these proceeds has not yet been determined.
The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Ohio handled this matter, with substantial assistance from HHS-OIG and FBI Cleveland Division.
Trial attorneys Christopher Wilson and Dan Schiffer of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jackson Froliklong for the Northern District of Ohio handled this matter. HHS-OIG and the FBI Cleveland Field Office provided substantial assistance in the investigation. Assistant Director Mary Schmergel and Trial Attorneys Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy.
Today’s settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted against defendants are allegations only. There has been no determination of liability.
SettlementRite Aid Corporation and Elixir Insurance Company Agree to Pay $101M to Resolve Allegations of Falsely Reporting RebatesRead the Press Release
The Justice Department announced that Rite Aid Corporation and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC and RX Solutions LLC, have agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid’s bankruptcy case pending in the District of New Jersey. The settlement is based on the companies’ ability to pay and was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. In addition to operating one of the country’s largest retail pharmacy chains, Rite Aid offered Medicare drug plans and pharmacy benefits manager (PBM) services through Elixir Insurance, RX Options and RX Solutions.
“Participants in Medicare’s drug program must accurately report price concessions, including drug manufacturer rebates, to ensure that the government receives the benefit of those concessions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Justice Department’s commitment to hold accountable entities that pursue their own financial interests at the expense of taxpayer programs.”
“Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Each of those dollars could have been used to benefit Americans with genuine health care needs. Our office will not tolerate deceptive health-insurance practices, and we will vigorously pursue those who violate the FCA.”
Under Medicare Part D, private entities known as Part D Plan Sponsors offer and administer insurance plans that provide prescription drug coverage to enrolled Medicare beneficiaries. Part D Sponsors must submit annual reports to the Centers for Medicare and Medicaid Services (CMS) with information about rebates and other remuneration the Plans received from drug manufacturers in connection with the Part D drugs provided to beneficiaries, which ensures that the government receives the benefit of any price concessions provided by drug manufacturers to purchasers of the drugs covered under the Part D plan. CMS relies on the reports in the annual reconciliation process that determines payments due to the Plans or CMS at the end of the year.
The settlement resolves allegations that, between 2014 and 2020, the defendants improperly reported to CMS portions of rebates received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. The United States further alleged that Elixir Insurance knew the retained rebates did not meet the regulatory definition of bona fide services fees.
“Truthful and accurate documentation in the delivery of health care goods or services is crucial to the integrity of federal health care programs,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Improper submission of manufacturer drug rebates and fees by Part D Plan Sponsors for pharmaceutical products in order to make more money will not be tolerated. Collaborating with our law enforcement partners, HHS-OIG is committed to preventing and investigating health care fraud in Medicare and other taxpayer-funded health care programs.”
The civil settlement includes the resolution of claims brought in 2021 under the qui tam, or whistleblower, provisions of the False Claims Act by Glenn Rzeszutko, who previously worked for RX Options. The FCA authorizes a private party to sue on behalf of the United States and share in any recovery. The qui tam case is captioned United States ex rel. Rzeszutko v. Rite Aid Corporation et al., No. 5:21-CV-574 (N.D. Ohio). The relator’s share of these proceeds has not yet been determined.
Trial attorneys Christopher Wilson and Dan Schiffer of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jackson Froliklong for the Northern District of Ohio handled this matter. HHS-OIG and the FBI Cleveland Field Office provided substantial assistance in the investigation. Trial Attorneys Mary Schmergel, Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy.
The settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted against defendants are allegations only. There has been no determination of liability.
Settlement
Rite Aid Corporation and Affiliates Agree to Settle False Claims Act and Controlled Substance Act Allegations Related to Opioid DispensingRead the Press Release
The Justice Department today announced that Rite Aid Corporation (Rite Aid) and 10 subsidiaries and affiliates have agreed to settle the government’s allegations under the False Claims Act (FCA) and Controlled Substances Act (CSA) asserted in United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio). Under the settlement, the government will be paid $7.5 million and have an allowed, unsubordinated, general unsecured claim of $401.8 million in Rite Aid’s bankruptcy case that is pending in the District of New Jersey. During the relevant time period, Rite Aid operated one of the country’s largest retail pharmacy chains with over 2,200 retail pharmacies in 17 states.
“Filling unnecessary prescriptions for powerful and addictive opioids, as the government alleged here, not only takes a toll on our communities, but also violates the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement illustrates, the Justice Department is committed to holding pharmacies accountable for their role in the nation’s opioid crisis.”
“Pharmacies and pharmacists have an affirmative legal duty to ensure that the prescriptions they fill are legitimate,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “When they disregard this responsibility and instead ignore red flags indicating that prescriptions for addictive painkillers are invalid, they violate the public’s trust and harm the community they are supposed to serve — all to make a buck. Our settlement with Rite Aid reinforces the Northern District of Ohio’s continued commitment to combatting the opioid crisis. My office and our law enforcement partners will continue to battle this epidemic by ensuring that corporate actors comply with their legal obligations, which help to restrict unwarranted public access to highly addictive medications, and thereby fight to keep vulnerable members of our communities from becoming addicted to opioids.”
The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly dispensed at least hundreds of thousands of unlawful prescriptions for controlled substances that (1) lacked a legitimate medical purpose and were not issued in the usual course of professional practice and/or (2) were not valid prescriptions, were not for a medically accepted indication or were medically unnecessary. These unlawful prescriptions included, for example, prescriptions for the dangerous, highly diverted combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as highly addictive oxycodone and fentanyl, and prescriptions issued by prescribers who Rite Aid pharmacists had repeatedly identified internally as suspicious and as writing unlawful, unnecessary prescriptions. The government further alleges that Rite Aid filled these prescriptions despite clear “red flags,” which highly indicated the prescriptions were unlawful and which pharmacists are trained to recognize. Rite Aid also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions, including specific concerns raised by its pharmacists, and intentionally deleted internal notes about suspicious prescribers written by Rite Aid pharmacists, such as “writing excessive dose[s] for oxycodone,” and “DO NOT FILL CONTROLS.” By knowingly dispensing unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA.
Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs Corp.; Rite Aid of Connecticut Inc.; Rite Aid of Delaware Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania and Rite Aid of Virginia.
“Pharmacies and pharmacists have a critical responsibility to ensure controlled substances are dispensed lawfully and safely to the public. This includes highly addictive opioids as we continue to see the impact of the opioid crisis,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is entering into a Corporate Integrity Agreement with Rite Aid, which includes a prescription drug claims review to have an Independent Review Organization determine whether prescription drugs are properly prescribed, dispensed, and billed. HHS-OIG will continue to work with our law enforcement partners to hold providers accountable that put the public at risk.”
“America continues to live through the worst opioid epidemic we have ever seen. Rite Aid contributed to this crisis by ignoring obvious red flags and dispensing hundreds of thousands of unnecessary opioids,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA will continue to do everything in our power to protect the health and safety of Americans and to end the opioid epidemic.”
The civil settlement includes the resolution of claims that certain Rite Aid pharmacies in Washington State violated the CSA by filling prescriptions written by prescribers who lacked proper controlled substance prescribing authority. The settlement also resolves claims brought in 2019 under the qui tam, or whistleblower, provisions of the FCA by Andrew White, Mark Rosenberg and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies. The FCA authorizes private parties to sue on behalf of the United States for false claims and share in any recovery, and permits the United States to take over the lawsuit, as it did here in part. The relators will receive 17% of the government’s FCA recovery in this matter.
In addition to the civil settlement, Rite Aid has entered into agreements with DEA and HHS-OIG to address its obligations going forward. Rite Aid and DEA entered a memorandum of agreement (MOA) designed to increase communication between the company, its retailers and DEA. Employees will receive additional training to help them identify illegitimate prescriptions and minimize the risk of drug diversion. The MOA also requires Rite Aid to create and keep materials relevant to DEA investigations for a minimum of five years. Rite Aid further commits to implementing and managing an anonymous hotline for employees, patients and the public to report suspected illegal dispensing of highly diverted controlled substances as well as suspected violations of the CSA. Rite Aid has also entered into a corporate integrity agreement (CIA) with HHS-OIG. The CIA includes a prescription claims drug review to have an Independent Review Organization to determine whether prescription drugs are properly prescribed, dispensed and billed.
The settlement was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. The amount the government will recover on its unsecured claim under the settlement will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors.
The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Ohio handled this matter. The DEA Cleveland Division, FBI Cleveland Field Office and HHS-OIG provided substantial assistance in the investigation.
Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald, Elizabeth Berry and Kathryn Andrachik for the Northern District of Ohio handled the White matter. Assistant Director Mary Schmergel and Trial Attorneys Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy.
Today’s settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
The claims asserted against the defendants are allegations only. There has been no determination of liability.
SettlementRepeat Felon Sentenced for Illegal Possession of Firearms and Distribution of Crack CocaineRead the Press Release
WASHINGTON – Donnie Wise, 27, a repeat felon from Washington D.C., was sentenced today to 46 months in prison for possessing two illegal firearms and distribution quantities of crack cocaine and powder cocaine at his Southeast apartment, announced U.S. Attorney Matthew M. Graves; ATF Special Agent in Charge Craig Kailimai, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives - Washington Division; and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
Wise pleaded guilty before U.S. District Judge Randolph D. Moss on March 21 to unlawful possession of a firearm and ammunition by a felon and to unlawful possession with intent to distribute cocaine base. In addition to the prison term, Judge Moss ordered Wise to serve three years of supervised release.
According to court documents, on January 18, 2023, at about 6 a.m., members of the MPD’s Violent Crime Suppression Division executed a search warrant at Wise’s apartment on the 1900 block of 18th Street, SE. Law enforcement found Wise sitting inside his bedroom. Once handcuffed, Wise told police he was the only one who resided in the apartment. The kitchen was filled with drug making equipment that included digital scales, baking soda, empty ziplock bags.
Officers searched Wise’s bedroom and, next to his bed, recovered a Zastava Arms ZPAP92 7.62 x 39mm firearms with 30 rounds in the magazine and one in the chamber. Officers also located a Glock 17, 9 mm pistol in the same room with 26 rounds in the magazine and one round in the chamber.
Police additionally recovered a 50-round magazine containing 15 rounds, a Zigana gun box containing two magazines, 39 rounds of .40 caliber ammo, a baggie containing empty yellow pill capsules, 21 grams of crack cocaine, and 85 grams of powder cocaine on a shelf over a television. DNA linked Wise to the Glock 17.
This case was conducted under the auspices of Project Safe Neighborhoods and was investigated by the Metropolitan Police Department’s Violent Crime Suppression Division in concert with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar.
23cr0380
Registered Sex Offender Sentenced to 10 Years in Prison for Sex with TeenRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a registered sex offender to a decade in prison for crossing state lines to engage in sex with a minor.
Joshua T. Wilson, 23, of Monroe County, Missouri, met the 16-year-old victim in the spring of 2022. Wilson, a registered sex offender, and the teen then began interacting almost daily via online apps. They engaged in sexual conversations and exchanged sexual images. Wilson also met up with the teen and took her to Kansas. He engaged in unlawful sexual activity with her during the trip.
Wilson pleaded guilty in April to a charge of transporting a minor across state lines to engage in sexual activity.
The FBI and the Monroe County Sheriff’s Department investigated the case. Assistant U.S. Attorney Dianna Edwards 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.
Registered Sex Offender Sentenced to 10 Years in Federal Prison for Child Pornography OffenseRead the Press Release
FORT SMITH – A Van Buren man was sentenced today to 120 months in prison followed by 10 years of supervised release on one count of Transportation of Child Pornography. The Honorable P.K. Holmes III presided over the sentencing hearing in the U.S. District Court in Fort Smith.
According to court documents, James Allen Price, age 42, is a registered sex offender. In July 2023 law enforcement was alerted by NCMEC (National Center for Missing and Exploited Children) that someone had emailed child pornography from one email account to another. Subsequent law enforcement investigation identified Price as the owner of both email accounts. A federal search warrant was conducted on Price’s residence and electronic devices were seized. Price was interviewed by law enforcement where he admitted to emailing himself child pornography. Price possessed images of children under the age of twelve years old.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Federal Bureau of Investigation, Van Buren Police Department and Joplin, Missouri Police Department investigated the case.
Assistant U.S. Attorney Carly Marshall prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Readout of Justice Department’s Interagency Convening on Advancing Equity in Artificial IntelligenceRead the Press Release
Today, the Justice Department’s Civil Rights Division convened principals of federal agency civil rights offices and senior government officials to foster AI and civil rights coordination.
This was the third such convening hosted by the Civil Rights Division following President Biden’s Executive Order on the Safe, Secure and Trustworthy Development and Use of Artificial Intelligence (EO 14110), which tasks the Civil Rights Division with coordinating federal agencies to use our authorities to prevent and address unlawful discrimination and other harms that may result from the use of AI in programs and benefits, while preserving the potential social, medical and other advances AI may spur.
In her opening remarks, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division highlighted her recent announcement that nine cabinet-level federal agencies have joined the pledge to enforce civil rights laws in AI as new technologies become more common in daily life.
Agencies discussed their efforts to safeguard civil rights through robust enforcement, policy initiatives, rulemaking and ongoing education and outreach, including completing all 180-day actions in EO 14110 on schedule. These accomplishments include:
- Guidance to assist federal contractors in compliance with equal employment laws to promote safe AI adoption and to apply the Fair Labor Standards Act and other federal labor standards as employers use AI (Department of Labor);
- Resources for job seekers, workers, tech vendors and creators on how AI use could violate employment discrimination laws (Equal Employment Opportunity Commission);
- Guidance affirming that existing prohibitions against discrimination apply to AI’s use for tenant screening and advertisement of housing opportunities, and explained how deployers of AI tools can comply with these obligations (Department of Housing and Urban Development);
- Guidance and principles that set guardrails for the responsible and equitable use of AI in administering public benefits programs (Department of Agriculture and Department of Health and Human Services); and
- A final rule applying the nondiscrimination principles under Section 1557 of the Affordable Care Act to the use of patient care decision support tools in clinical care, and it requires those covered by the rule to take steps to identify and mitigate discrimination when they use AI and other forms of decision support tools for care (Department of Health and Human Services).
The interagency convening's attendees included Chair Charlotte Burrows of the Equal Employment Opportunity Commission, Director Melanie Fontes Rainer of the Department of Health and Human Services' Office of Civil Rights, Officer for Civil Rights and Civil Liberties Shoba Sivaprasad Wadhia of the Department of Homeland Security and Principal Deputy Assistant Secretary Diane Shelley of the Department of Housing and Urban Development. Other senior agency officials also participated.
All participants pledged to continue collaboration to protect the American public against any harm that might result from the increased use and reliance on AI, algorithms and other advanced technologies. The agencies also agreed to partner on external stakeholder engagement around their collective efforts to advance equity and civil rights in AI.
For more information, see the Civil Rights Division’s webpage, which centralizes content related to the division’s work on AI and civil rights. This resource provides information about how advanced technologies can result in unlawful discrimination and what the division can do to assist victims of discrimination. The webpage will soon also include the work on AI and civil rights from enforcement agencies throughout the federal government.
Rapid City Man Sentenced for Bank Fraud and Money LaunderingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of three counts of Bank Fraud and three counts of Money Laundering. The sentencing took place on July 2, 2024.
Steven Arthur Knigge, 77, was sentenced to 33 months in federal prison, followed by three years of supervised release, and ordered to pay a $600 special assessment to the Federal Crime Victims Fund, $20,833 in restitution to the United States Department of Treasury, $6,140 in restitution to Wells Fargo Bank, and $225 in restitution to Med5 Federal Credit Union.
Knigge was indicted on five counts of Bank Fraud, eight counts of Money Laundering, and one count of Wire Faud by a federal grand jury in July of 2022. He pleaded guilty on February 7, 2024.
Beginning in April of 2021 and continuing through April of 2022, Knigge devised a scheme to defraud several banking institutions for his own personal gain, including Med5 Federal Credit Union, Wells Fargo Bank, Black Hills Federal Credit Union, and Highmark Federal Credit Union. As part of his scheme, Knigge deposited seven fraudulent checks totaling approximately $200,000 knowing the checks were fraudulent. Knigge then transferred a portion of the fraudulent funds to another account or withdrew cash before the banks were able to determine the funds were fraudulent.
In April of 2021, Knigge also submitted a fraudulent Paycheck Protection Program (PPP) loan application requesting $20,833 of government funds. In the PPP application, Knigge claimed he owned and operated a residential remodeling business. However, Knigge never owned or operated a residential remodeling business, and the investigation showed the banking and Form W-2 documents that were submitted in support of the application were fraudulent. Knigge received the PPP funds and then immediately withdrew nearly the entire amount in cash.
“IRS Criminal Investigation (CI), in conjunction with our law enforcement partners, continues to actively pursue and prosecute those who abused the COVID pandemic relief programs and hold them accountable for defrauding the government,” said Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. “Mr. Knigge, a former fraud investigator for the South Dakota Dept. of Revenue, admitted he submitted a fraudulent PPP application for personal gain, knowing he wasn’t entitled to those funds.”
This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Knigge was immediately remanded to the custody of the U.S. Marshals Service.
Portland Man Sentenced to Federal Prison for Role in Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for his role in a scheme to steal large quantities of mail and use victims’ personal and financial documents and information to fraudulently obtain apartment leases, open bank accounts without authorization, and acquire other goods and services.
Cody Joel Stewart, 43, was sentenced to 51 months in federal prison and five years’ supervised release. Stewart was also ordered to pay $211,831 in restitution to his victims.
According to court documents, between April 2020 and April 2023, Stewart worked with multiple accomplices, including Portland residents Felicia Lynn Hawkins and Patrick Dorin Balan, both 35, to carry out a fraud scheme whereby the group would steal large quantities of mail to obtain victims’ personal and financial information.
Throughout the conspiracy, Stewart and Hawkins used and distributed stolen personally identifiable information and counterfeit identity documents and checks. In December 2022, during a search of their shared residence, investigators located and seized various counterfeit identification and financial documents, stolen financial documents and mail, paper used to make counterfeit checks, U.S. Treasury checks, counterfeit U.S. currency, and drugs.
Stewart was arrested in May 2023 after leading police on a high-speed chase reaching speeds of more than 100 mph. After safely ending the pursuit, officers located additional stolen identification and financial documents in Stewart’s possession.
On April 11, 2023, a federal grand jury in Portland returned a 12-count indictment charging Stewart, Hawkins, and Balan with conspiracy to commit bank fraud; bank fraud; using or trafficking an unauthorized access device; producing, using, or trafficking a counterfeit access device; aggravated identity theft; and possession of stolen mail.
On March 27, 2024, Stewart pleaded guilty to conspiracy to commit bank fraud and aggravated identity theft.
On January 29, 2024, Hawkins also pleaded guilty to conspiring to commit bank fraud. She was later sentenced to time served in federal prison and five years’ supervised release. Balan is on pre-trial release pending a four-day jury trial scheduled to begin on August 6, 2024.
This case was investigated by Homeland Security Investigations (HSI) with assistance from the U.S. Postal Inspection Service (USPIS), U.S. Small Business Administration – Office of Inspector General (SBA-OIG), and U.S. Treasury Inspector General for Tax Administration (TIGTA). It was prosecuted by Rachel K. Sowray, Assistant U.S. Attorney for the District of Oregon.
Pine Ridge Woman Sentenced to Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, woman convicted of two counts of Involuntary Manslaughter. The sentencing took place on July 8, 2024.
Janine Faye Good Lance, 45, was sentenced to two-five year terms in federal prison, each to run concurrently, followed by two years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund.
Good Lance was indicted for Involuntary Manslaughter by a federal grand jury in March of 2023. She was found guilty on April 11, 2024, following a three-day jury trial.
On November 18, 2022, Good Lance drove while intoxicated on BIA Highway 18, near Pine Ridge, South Dakota, while her two friends rode in the car with her. Good Lance, who was wearing a seatbelt at the time she crashed, was the sole survivor. The passengers were ejected from the vehicle and killed when it rolled several times. During the trial, Good Lance claimed her front seat passenger grabbed the steering wheel unexpectedly and caused the car to lose control. Troopers with the Oglala Sioux Tribe Department of Highway Safety testified, however, using crash reconstruction expertise and the vehicle’s “black box” data, and proved Good Lance’s testimony was false. Good Lance had six prior Tribal arrests for driving under the influence, and two convictions in state court for driving under the influence.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety, the Oglala Sioux Tribe Department of Highway Safety, and the FBI. Assistant U.S. Attorney Heather Knox prosecuted the case.
Good Lance must self-surrender to the custody of the U.S. Marshals Service.
Pine Bluff Man Sentenced to 15 Years in Federal Prison for Drug Trafficking and Possession of a Firearm in Furtherance of a Drug-Trafficking CrimeRead the Press Release
LITTLE ROCK—Tristan Larandell Lee, a multi-convicted felon, will spend the next 15 years in federal prison for illegally possessing cocaine with intent to distribute and possessing a firearm in furtherance of a federal drug-trafficking crime. Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas, announced the sentence, which was handed down on Tuesday, July 9, 2024, by United States District Judge James M. Moody, Jr.
An investigation revealed that on Monday, March 8, 2021, Arkansas State Police troopers responded to a traffic accident on the median of I-530 after receiving reports of this vehicle being driven in a reckless manner. Arkansas State Police troopers located Lee in the driver’s seat. The responding trooper found Lee asleep. He struck the front passenger window which woke Lee up, at which time Lee attempted to start his vehicle and flee.
Lee was given commands to exit his vehicle but refused to do so. The trooper eventually opened the passenger door to remove Lee from the vehicle, who was placed into custody due to combative behavior. During an inventory search of Lee’s vehicle, cocaine, heroin, marijuana, assorted pills, drug paraphernalia, and an Anderson Manufacturing, AM-15 rifle equipped with a 60-round drum magazine were located.
On June 8, 2022, Lee, 39, of Pine Bluff, was indicted by a federal grand jury on one count of possession with intent to distribute cocaine, one count of possession with intent to distribute heroin, one count of possession with intent to distribute marijuana, one count of possession of a firearm in furtherance of a drug trafficking crime, and one count of unlawful possession of a firearm by a felon. On March 13, 2024, Lee pleaded guilty to possession of cocaine with intent to distribute and possession of a firearm in furtherance of a drug-trafficking crime.
United States District Judge Moody sentenced Lee to 10 years’ imprisonment for possession of cocaine with intent to distribute and five years’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime, ordering the sentences be served consecutively to one another. Judge Moody also sentenced Lee to five years’ supervised release.
The investigation was conducted by the Federal Bureau of Investigation with assistance from the Arkansas State Police. The case was prosecuted by Assistant United States Attorney Amanda Fields.
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Pharmacy Owner and Associate Sentenced for Health Care Fraud and Black Market Prescription Drug Diversion SchemeRead the Press Release
A pharmacy owner and an associate were sentenced for submitting false and fraudulent claims to Medicare and California Medicaid (Medi-Cal) for prescription drugs and engaging in a black market prescription drug diversion conspiracy.
Irina Sadovsky, 54, of Calabasas, California, a pharmacist who owned Five Star RX, doing business as Five Star Pharmacy and Ultimate Pharmacy Inc., was sentenced on July 8 to two years and three months in prison. Shahriar “Michael” Kalantari, 56, of Los Angeles, was sentenced yesterday to one year and 11 months in prison.
According to court documents and evidence presented at trial, from September 2016 to April 2017, Sadovsky conspired to submit fraudulent claims to Medicare and Medi-Cal for prescription drugs that were never dispensed to beneficiaries and instead were provided to her co-conspirators to sell on the black market. Sadovsky’s co-conspirators created fraudulent prescriptions, and Sadovsky recommended the combinations of prescription drugs to be written and checked the eligibility of the patients for reimbursement.
Kalantari, who is not a medical professional, conspired with Sadovsky to defraud Medicare and Medi-Cal by generating false prescriptions. Kalantari’s co-conspirators obtained beneficiary information, which Kalantari then used to write or cause to be written false and fraudulent prescriptions for expensive prescription medication, including drugs used to treat HIV. These medications were not dispensed to patients, but rather were provided to a co-conspirator to sell on the black market.
A jury convicted Sadovsky in October 2022 of one count of conspiracy to commit health care fraud and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. A jury convicted Kalantari in November 2022 of one count of conspiracy to commit health care fraud, three counts of health care fraud, and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.
The FBI and HHS-OIG investigated the cases, with valuable assistance from the California Department of Justice.
Counsel Alexis Gregorian and Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section handled the sentencing hearings. Counsel Alexis Gregorian, Assistant U.S. Attorney Alexandra Michael for the Central District of California, formerly of the Criminal Division’s Fraud Section, and Justin Givens, formerly of the Criminal Division’s Fraud Section, tried the cases.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pernicious cyberstalker sentenced to 9 years in prison for unrelenting harassment of former roommate and othersRead the Press Release
Seattle – A 33-year-old Seattle man previously employed as a privacy consultant was sentenced yesterday in U.S. District Court in Seattle to 9 years in prison for conspiracy to engage in cyberstalking, three counts of cyberstalking in violation of a criminal order, and three counts of cyberstalking, announced U.S. Attorney Tessa M. Gorman. Sumit Garg was indicted in March 2021. He has been in custody at the Federal Detention Center at SeaTac since that time. At sentencing U.S. District Judge John C. Coughenour told the victims, “I can’t give you the level of protection for the length of time that you deserve…I can’t give you blanket protection for 30-40 years.”
“The cyberstalking activities of this defendant are unparalleled in this District and indeed nationwide. Through thousands of email and text messages Mr. Garg threatened violence against his victims -- including police and prosecutors. He attempted to make it appear his victims were the perpetrators of the stalking. Court orders and jail time did not stop him,” said U.S. Attorney Gorman. “Federal detention finally stopped him, and this sentence will protect the public for years to come.”
“Justice was served today. The U.S. Secret Service is satisfied with the outcome of this case, which is a culmination of the work of motivated agents and analysts, applying their skillsets and tools to bring an end to an unprecedented cyberstalking campaign against multiple victims,” said U.S. Secret Service Special Agent in Charge Glen Peterson. “I hope the victims can find some closure to the nightmares they endured during Mr. Garg’s relentless reign of harassment.”
According to records in the case and testimony at trial, in 2020, Garg began an extensive campaign of threats and sexually explicit messaging and posts about a woman who used to share an apartment with Garg’s wife. Using personal information Garg accessed after he moved into the apartment with his spouse, Garg threatened and tormented the former roommate.
In April 2020, the victim reported the harassment to police. Following this, Garg and his wife tried to make it appear that they were the harassment victims and made false police reports blaming the actual victim.
Garg also used his computer skills to threaten multiple people in the former roommate’s life, including her uncle who represented her in obtaining a civil protection order; her boyfriend; the Seattle Police Detective who investigated the threats; and even the Deputy Prosecuting Attorney who prosecuted Garg for his illegal stalking conduct. Garg used his computer skills to try to hide who was sending the threats or making the posts. The stalking campaign also grew increasingly violent, ultimately coming to include gruesome threats of rape, torture, and death. Over time, Garg’s stalking campaign involved thousands of emails sent from scores of accounts set up for the purpose of stalking.
At one point in his scheme, Garg was videotaped in the lobby of the victim’s new apartment building at the same time photos were taken and sent of that location to frighten the victim.
Garg enlisted his wife in the scheme – instructing her to send harassing emails to herself and others while he was jailed to make it appear someone else was doing the harassment campaign. He told his wife to destroy clothes he wore when he was in the lobby of the ex-roommate’s apartment building. His wife did send emails but did not destroy the clothes and ultimately cooperated with investigators.
In her trial testimony, Garg’s wife said she finally felt free to tell the truth when he was booked on federal charges and would not be returning to their home to abuse her verbally and physically.
In their sentencing memo, prosecutors noted that Garg had never accepted responsibility for any of his criminal actions. “While Garg appears to have delighted in his victims’ suffering, he appears to be utterly incapable of empathizing with others. With an apparently insatiable desire to even the score, Garg took a simple rent dispute between roommates, and escalated it into a massive cyberstalking campaign against an ever-growing number of victims, making grotesque and violent threats that are almost impossible to fathom.”
Three victims spoke at sentencing. “What made this case singular in my mind was first, the unprecedented scope; second, the constant escalation; and lastly, the attitude displayed by the defendant that he was smarter than everyone else and his belief that he would not be caught,” remarked one victim, an experienced prosecutor. A second victim said, “I’m not sure if I will ever regain a sense of normalcy and security that I once took for granted.”
The case was investigated by the United States Secret Service with assistance from the Seattle Police Department.
The case was prosecuted by Assistant United States Attorney Andrew Friedman and Senior Trial Attorney Anthony V. Teelucksingh of DOJ’s Computer Crime and Intellectual Property Section.
Pacific Toxicology Laboratories Agrees to Pay $1 Million to Resolve Allegations of Fraudulent BillingRead the Press Release
BOSTON – A California-based laboratory, Pacific Toxicology Laboratories (PacTox), has agreed to pay $1 million to resolve allegations that it submitted false claims for payment to Medicare for urine drug testing (UDT).
On Jan. 1, 2020, Medicare established regulations for payment to Opioid Treatment Programs (OTPs) for opioid use disorder (OUD) treatment services for Medicare beneficiaries. Medicare established a bundled payment rate for OTPs’ provision of OUD treatment services, including, but not limited to, dispensing and administering opioid treatment medications (such as Methadone), substance use counseling, individual and group therapy services, intake activities, periodic assessment services and UDT. Pursuant to the bundled payment rate methodology, Medicare makes one all-inclusive payment for the treatment services, including UDT.
According to the settlement agreement, PacTox admits that between Jan. 1, 2020 and March 14, 2023 PacTox separately billed Medicare for confirmatory UDT, notwithstanding the bundled payment rate made applicable by Medicare regulations. The United States alleges that PacTox’s practice of separately billing for UDT for OTP patients resulted in Medicare paying twice for UDT services for certain OUD patients.
The claims resolved by the resolution announced today include claims that were brought under the qui tam or whistleblower provisions of the False Claims Act. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of today’s resolution, the whistleblower will receive approximately $200,000.
Acting United States Attorney Joshua S. Levy; Robert Coviello, Special Agent in Charge of the Department of Health and Human Services, Office of the Inspector General; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division, handled the matter.
Orleans Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – An Orleans man has been arrested for child pornography offenses.
Anthony Argo, 33, was charged with possession of child sexual abuse material (CSAM). Argo made an initial appearance in federal court in Boston yesterday.
According to the charging documents, Argo was identified as the user of a chat application who was expressing sexual interest in minors and sharing CSAM. It is further alleged that during a search of his residence, Argo was found in possession of an SD card containing more than 100 video files depicting child pornography. The files allegedly depicted children as young as infants.
Argo was previously convicted in Barnstable District Court for indecent assault and battery on a person 14 or over, and in Orleans District Court for kidnapping, enticement of a child under 16, and distributing obscene matter to a minor.
Due to Argo’s prior convictions, the charge of possession of child pornography provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.