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16 May 2024
Eastern Oregon Man Sentenced to More Than 12 Years in Federal Prison for Sexually Abusing Two Minors He Met OnlineRead the Press Release
PORTLAND, Ore.—A La Grande, Oregon man was sentenced to more than 12 years in federal prison Wednesday for sexually abusing and transporting two minors from Washington State he met through Snapchat.
Albert Wayne Johnson, 42, was sentenced to 151 months in federal prison and 10 years’ supervised release.
According to court documents, on August 8, 2022, deputies from the Clackamas County Sheriff’s Office responded to a call of two minors abandoned at Barton Park in Boring, Oregon. The children told the deputies they met Johnson on Snapchat and that he had driven them from Washington State through Idaho and into Oregon, and had sexually abused both during the trip. Along the way, Johnson stopped at a motel in Othello, Washington, where he abused the children, and a campground near La Grande, where he continued to abuse one of the children. After arriving in Boring, Johnson left the children at a campsite in Barton Park and never returned.
In August 2022, after receiving information about the abduction and abuse that had occurred, detectives from the Othello Police Department contacted the motel in Othello and obtained surveillance footage showing Johnson with the two children.
On August 30, 2022, officers and deputies from the La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, and Umatilla Tribal Police Department located Johnson at his residence in La Grande and arrested him on an outstanding parole violation warrant.
On October 5, 2022, Johnson was charged by criminal complaint with coercing and enticing a minor and transporting a minor with intent to engage in criminal sexual activity. Later, on November 2, 2022, a federal grand jury in Portland returned a three-count indictment charging Johnson with traveling across state lines to engage in a sexual act with a minor, transporting a minor with intent to engage in criminal sexual activity, and commission of a sex offense by a registered sex offender.
On January 24, 2024, Johnson pleaded guilty to transporting a minor with intent to engage in criminal sexual activity.
This case was investigated by the FBI Pendleton Resident Agency with assistance from the Othello Police Department, La Grande Police Department, Union County Sheriff’s Office, Union County Probation Department, Umatilla Tribal Police Department, and Clackamas County Sheriff’s Office. It was prosecuted by Cassady Adams, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
East Boston Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – An East Boston man pleaded guilty yesterday to possessing and distributing child sexual abuse material (CSAM).
Cristopher Vladimir Pineda Martinez, 25, pleaded guilty to one count of possession of child pornography and one count of distribution of child pornography. U.S. District Judge Richard G. Stearns scheduled sentencing for Aug. 14, 2024. Pineda was arrested and charged by criminal complaint in January 2023 and has remained in federal custody since.
Law enforcement identified Pineda as member of several private large-scale group chats involved in the distribution of CSAM on an online chat platform. On Dec. 12, 2022, Pineda distributed eight videos depicting CSAM in three online chat groups. An additional 54 videos of CSAM, involving children as young as six years old, were found within an application on Pineda’s personal cell phone.
The charge of possession of child pornography provides for a sentence of 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. The charge of distribution of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, a mandatory minimum of 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. Valuable assistance was provided by the United States Postal Inspection Service and Immigration and Customs Enforcement, Enforcement and Removal Operations. Assistant U.S. Attorney Elianna J. Nuzum 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.
District Man Pleads Guilty to Carjacking in NortheastRead the Press Release
WASHINGTON – Antwan Mitchell, 19, of Washington D.C., pleaded guilty to one count of carjacking arising from a February 2024 offense committed in Northeast Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith of the Metropolitan Police Department (MPD).
On May 14, 2024, Mitchell pleaded guilty in the Superior Court of the District of Columbia to carjacking before the Honorable Jason Park. Judge Park scheduled sentencing for August 5, 2024.
During that plea hearing, Mitchell admitted that he and two co-conspirators, who have never been identified, carjacked a rideshare driver on February 6, 2024. The victim had just dropped off his rideshare passengers in the 200 block of Kenilworth Avenue NE when Mitchell and his accomplices surrounded the victim’s SUV. One of Mitchell’s accomplices held the victim at rifle-point while Mitchell and another accomplice demanded the victim’s car keys and wallet. After the victim got out of his SUV and handed over his car key, Mitchell and his accomplices drove off in the victim’s SUV. MPD Officers responded immediately, canvassed the area, and located the victim’s stolen SUV. While inspecting that vehicle, police also located a second vehicle that Mitchell and his accomplices had used to commit this carjacking. Officers pursued that vehicle and ultimately apprehended Mitchell after he ran from it. Police recovered a firearm in the vehicle, but Mitchell’s accomplices escaped.
This case was investigated by the Metropolitan Police Department and is being prosecuted by Assistant United States Attorney Sabena Auyeung.
District Man Indicted for House Party ShootingRead the Press Release
WASHINGTON – Darrious Johnson, 23, of the District of Columbia, has been charged in a 10-count indictment for unleashing gunfire into a crowded living room during a house party in the Hillbrook neighborhood in Northeast, D.C., in May 2023, announced U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
A Superior Court grand jury returned the indictment that was filed on May 16, 2024, which charges Johnson with two counts of assault with intent to kill (adults) while armed, one count of assault with intent to kill a minor while armed, aggravated assault while armed, second degree cruelty to children, and related firearm offenses. According to the Government’s evidence, after an argument at the party, Defendant Johnson walked upstairs, retrieved a firearm, walked halfway down the stairs, and fired numerous shots into the crowded living room with adults and children present. One of the bullets hit the arm of an adult victim who was holding an infant, causing serious injuries.
This case is being investigated by the Metropolitan Police Department and is being prosecuted by Assistant U.S. Attorneys Anthony Cocuzza, Megan McFadden, and Sabena Auyeung.
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.
Departments of Homeland Security and Justice to Announce “Recent Arrivals” Docket Process for More Efficient Immigration HearingsRead the Press Release
Secretary of Homeland Security Alejandro N. Mayorkas and Attorney General Merrick B. Garland today announced a new Recent Arrivals (RA) Docket process to more expeditiously resolve immigration cases of certain noncitizen single adults who attempt to cross irregularly between ports of entry at the Southwest border. This effort will allow Department of Homeland Security (DHS) and Justice Department to more swiftly impose consequences, including removal, on those without a legal basis to remain in the United States and to more swiftly grant immigration relief or protections to noncitizens with valid claims. The Justice Department also submitted to the Federal Register a final rule to promote efficient case and docket management in immigration proceedings.
“Today, we are instituting with the Department of Justice a process to accelerate asylum proceedings so that individuals who do not qualify for relief can be removed more quickly and those who do qualify can achieve protection sooner,” said Secretary of Homeland Security Mayorkas. “This administrative step is no substitute for the sweeping and much-needed changes that the bipartisan Senate bill would deliver, but in the absence of Congressional action we will do what we can to most effectively enforce the law and discourage irregular migration.”
“The Justice Department’s immigration courts are committed to the just and efficient enforcement of the immigration laws,” said Attorney General Garland. “These measures will advance that mission by helping to ensure that immigration cases are adjudicated promptly and fairly.”
In our current, overwhelmed immigration system, noncitizens arriving at the U.S. Southwest border often wait years before receiving a final decision in an immigration court proceeding. Insufficient resources, including insufficient immigration judges and attorneys, has impeded the swift resolution of claims, and extended the length of the immigration court process.
Under the RA Docket process, DHS will place certain noncitizen single adults on the RA Docket, and the Executive Office for Immigration Review adjudicators will prioritize the adjudication of these cases. The RA Docket will operate in five cities: Atlanta, Boston, Chicago, Los Angeles, and New York City. Immigration judges will aim to render final decisions within 180 days, though the time to decision in any particular case will remain subject to case-specific circumstances and due process guarantees, including allowing time for noncitizens to seek representation where needed.
In order to support these efforts, today the Justice Department also submitted to the Federal Register a final rule titled, Efficient Case and Docket Management in Immigration Proceedings. The rule codifies procedures and standards for immigration adjudicators across the country to manage their dockets and resolve cases efficiently. The rule allows adjudicators to prioritize cases that are ready to be resolved promptly, enabling them to address their caseloads more efficiently and quickly. This rule is an important step the Justice Department is taking to promote the efficient, expeditious, and fair adjudication of immigration cases, allocate limited resources more efficiently, and protect due process for parties in immigration court.
Lastly, the Departments continue to call on Congress to take up and pass the Senate’s bipartisan border security legislation, which if passed would provide DHS and the Justice Department with additional authorities and resources that are critically needed. These resources include more immigration judges, additional asylum officers and support staff, and needed authorities to more quickly adjudicate asylum cases of those arriving at our border, including by granting protection to those with valid claims, and removing those without a lawful basis to remain. Congress should take up and pass this legislation to fix our broken immigration system.
Criminal Complaint Charges Two Men with Conspiracy to Commit Wire FraudRead the Press Release
Baltimore, Maryland – The United States Attorney’s Office for the District of Maryland has filed a federal criminal complaint charging Minh Phuong Vong and a second individual “John Doe” whose true identity remains unknown with conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349.
The criminal complaint was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office. The complaint was filed on May 15, 2024. According to the affidavit filed in support of the criminal complaint,
Vong, a native of Vietnam, and a naturalized United States citizen, conspired with an unknown individual, John Doe, to commit wire fraud by making false and fraudulent statements and representations to a United States company over the Internet in order to persuade the company to hire Vong as a fullstack web developer for the purpose of receiving salary payments for work not performed by Vong.
As alleged, the false representations included statements about Vong’s education, training and job experience. Representatives of the US Company conducted a video interview over the Internet of an individual who identified himself as Vong. Shortly after that interview, Vong participated in a second remote interview with a different representative of the US Company. In this interview, Vong showed his driver’s license and passport to confirm his identity and citizenship.
Following those interviews, the company hired Vong and assigned him to work on a government contract. The contract was part of a national defense program to develop software used by various other government entities that would allow them to coordinate aviation assets effectively.
According to the affidavit, Vong, however, did not perform software development work. Instead, Vong worked at a nail salon in Bowie, Maryland, while an individual or individuals located in China used Vong’s access credentials to connect to a secure government website, perform the software development work, and attend regular online company meetings.
“John Doe” communicated regularly with Vong and during those communications Vong and “John Doe” coordinated efforts to ensure that the U.S. Company did not know that an individual or individuals located overseas were actually posing as Vong to perform work on the government software development project.
The John Doe online communications also contained information and statements that indicated that “John Doe” is North Korean and a self-described software developer who lives in Shenyang, China.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
If convicted, each defendant faces a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud. 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.United States Attorney Erek L. Barron commended the Baltimore FBI Field Office for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting 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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Colombian National Admits Conspiring to Transport Hundreds of Kilograms of Cocaine into United StatesRead the Press Release
NEWARK, N.J. – A Colombian citizen today admitted conspiring to import hundreds of kilograms of cocaine into the United States from Colombia, Venezuela, and the Dominican Republic, U.S. Attorney Philip R. Sellinger announced.
Edgar Ruiz-Gomez, aka “Gono,” 57, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to count one of an indictment charging him with conspiracy to import five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From 2016 through January 2020, Ruiz-Gomez and others conspired to import hundreds of kilograms of cocaine. Ruiz-Gomez acknowledged holding a managerial role in this conspiracy, which involved more than five individuals.
The count to which Ruiz-Gomez pleaded guilty carries a statutory mandatory minimum sentence of 10 years in prison, a maximum penalty of life in prison, and a fine of up to $10 million. Sentencing is scheduled for Nov. 5, 2024.
U.S. Attorney Sellinger credited special agents and task force officers with the Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz in Newark, and special agents and task force officers with the DEA operating in Colombia, the Dominican Republic, and Puerto Rico, with the investigation leading to today’s guilty plea. He also thanked the Justice Department’s Office of International Affairs; the Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office at the U.S. Embassy in Bogota; Colombian law enforcement authorities; and the U.S. Marshals Service for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Farhana C. Melo of the OCDETF/Narcotics Unit in Newark.
ruizgomez.indictment.pdfColombia Native Charged with Illegal ReentryRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Leonardo Moreno Bernal, age 42, of Colombia, was indicted by a federal grand jury for illegal reentry into the United States by a previously deported alien.
According to United States Attorney Gerard M. Karam, the indictment alleges that Moreno Bernal was previously removed from the United States on August 27, 2012, and it is alleged that he was subsequently found in the United States without having first obtained legal permission to reenter the country. The indictment also alleges that on April 25, 2024, Moreno Bernal was encountered in Centre County, Pennsylvania.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Tatum Wilson is prosecuting the case.
The maximum penalty under federal law for this offense is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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City Man Who Shot at People on South Philadelphia Street Sentenced to 12 Years in Prison for Firearms ViolationRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Kalief Ladson, 29, of Philadelphia, PA, was sentenced by Senior United States District Court Judge Michael M. Baylson to 144 months’ imprisonment and three years of supervised release for possession of ammunition by a felon.
On the morning of January 23, 2023, at approximately 11:45 a.m., Ladson and one other person parked their car in the area of 2100 S. 8th Street in South Philadelphia. The two walked around the corner and Ladson produced a semiautomatic firearm with an extended magazine. Ladson fired at least 17 shots at a group of men standing on a nearby corner as he ran up the sidewalk. Innocent bystanders out on the street that morning began to flee and hide as Ladson fired at his intended targets. He then fled on foot back to his car and drove off.
The shooting was captured on surveillance video and recovered by Philadelphia Police Department investigators. After reviewing the footage, witnesses were able to identify Ladson from the video. A Philadelphia Police Department ballistician determined that all of the fired cartridge casings recovered from where Ladson could be seen shooting had been fired from the same gun.
On April 13, 2023, a grand jury returned an indictment charging Ladson with one count of possession of ammunition by a felon. On November 8, 2023, Ladson proceeded to trial and a jury found him guilty on November 9, 2023.
“Firing a fusillade of shots at people on a busy Philly street — in broad daylight — is beyond reckless,” said U.S. Attorney Romero. “This easily could have turned into a mass tragedy. Kalief Ladson has proven he’s too dangerous to walk free right now. He’s got the next 12 years behind bars to think about what he’s done and how lucky he was not to kill anybody. In the meantime, we and our partners will continue to go after these violent offenders determined to wreak havoc in our city.”
“ATF is committed to working with our partners to prevent such violent crimes,” said Eric J. DeGree, Special Agent in Charge of the ATF Philadelphia Field Division. “Ladson’s reckless behavior put his community at grave risk.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys Martin E. Howley, Jr. and Thomas M. Zaleski.
Cincinnati Man Sentenced to 20 Years for Distributing Fentanyl that Resulted in DeathRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Dominic Jackson, 31, was sentenced on Thursday, by U.S. District Judge David Bunning, to 240 months in prison, for distribution of fentanyl resulting in death.
According to his plea agreement, on November 3, 2021, law enforcement and medical workers responded to a call for an unresponsive person in Boone County. Upon arrival, responders found the deceased victim with symptoms consistent with an opioid overdose. Officers reviewed the victim’s phone, and it contained communications from Jackson indicating that he had sold drugs to the victim earlier that same day.
Law enforcement then used the victim’s phone to text Jackson and arranged to purchase another quarter ounce of the same substance previously sold to the victim. They advised Jackson where to put the drugs and where the money was located. Jackson showed up to the residence, took the money, and left 6.667 grams of a substance containing fentanyl and para-flurorofentanyl. Jackson admitted to distributing a substance containing fentanyl and para-flurorofentanyl to the victim, who died as a result of ingesting it.
Under federal law, Jackson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Jackson was also ordered to make restitution in the amount of $7,243 to the family of the victim for burial expenses.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Orville O. Greene, Special Agent in Charge, DEA Detroit Field Division; and Director Scott Hardcorn, Northern Kentucky Drug Strike Force, jointly announced the sentence.
The investigation was conducted by DEA and the Northern Kentucky Drug Strike Force. Assistant U.S. Attorney Tony Bracke prosecuted the case on behalf of the United States.
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Cincinnati Man Sentenced for Distribution of Child PornographyRead the Press Release
COVINGTON, Ky. – A Cincinnati man, Joshua Robert Flick, 35, was sentenced on Thursday, by U.S. District Judge David Bunning, to 15 years in prison, for distribution of child pornography.
According to his plea agreement, on December 1, 2022, Flick communicated with a covert law enforcement employee, via the Kik application on his iPhone, and indicated that he was sexually interested in minors. On two additional occasions, on December 9, 2022, and December 11, 2022, Flick communicated with the covert employee and sent multiple visual depictions of minors engaged in sexually explicit conduct. Flick admitted that he knowingly distributed the images, and he knew those images depicted minors engaged in sexually explicit conduct.
Flick was arrested on an outstanding warrant on January 11, 2023, and his phone was searched. The search revealed over 70 images and approximately 90 videos depicting minors engaged in sexually explicit conduct.
Under federal law, Flick must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 15 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI. Assistant U.S. Attorney Andrew Spievack is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' 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.
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Child Predator Sentenced After Federal Jury ConvictionRead the Press Release
TULSA, Okla. – Today, U.S. District Judge Gregory K. Frizzell sentenced Lance Douglas Roark, 43, of Bluejacket.
After a three-day trial in January, where Roarke represented himself, a jury convicted him of Abusive Sexual Contact with a Minor Under 12 Years of Age in Indian Country and Assault with Intent to Commit Aggravated Sexual Abuse of a Minor Under 12 Years of Age in Indian Country. When the child victim testified, she was cross-examined by Roark.
Judge Frizzell ordered Roark to serve 235 months imprisonment, followed by lifetime supervised release. Upon his release, Roark will also be required to register as a sex offender. Judge Frizzell further ordered Roark to pay the maximum restitution of $5,000.
Roark is a citizen of the Delaware Tribe of Indians and he will remain in custody pending transfer to the U.S. Bureau of Prisons.
The FBI and Craig County Sheriff’s Office investigated the case. Assistant U.S. Attorney Alicia N. Hockenbury prosecuted the case.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Charges and Seizures Brought in Fraud Scheme, Aimed at Denying Revenue for Workers Associated with North KoreaRead the Press Release
The Justice Department unsealed charges, seizures, and other court-authorized actions to disrupt the illicit revenue generation efforts of the Democratic People’s Republic of Korea (DPRK or North Korea).
The charges include prosecutions of an Arizona woman, Ukrainian man, and three unidentified foreign nationals who allegedly participated in schemes to place overseas information technology (IT) workers—posing as U.S. citizens and residents—in remote positions at U.S. companies.
As alleged in the court documents, DPRK has dispatched thousands of skilled IT workers around the world, who used stolen or borrowed U.S. persons’ identities to pose as domestic workers, infiltrate domestic companies’ networks, and raise revenue for North Korea. The schemes described in court documents involved defrauding over 300 U.S. companies using U.S. payment platforms and online job site accounts, proxy computers located in the United States, and witting and unwitting U.S. persons and entities. This announcement includes the largest case ever charged by the Justice Department involving this type of IT workers’ scheme.
Two criminal prosecutions brought by the U.S. Attorney’s Office for the District of Columbia, one in partnership with the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division, were unsealed today. As part of the prosecutions, two defendants have been arrested and related seizures and search warrants have been executed in Washington, D.C., and other jurisdictions. The investigations were led by the FBI Phoenix and New York Field Offices and IRS Criminal Investigation (IRS-CI), and coordinated with five other FBI field offices and four other U.S. Attorneys’ Offices, producing arrests in the United States and Poland, the execution of five premises search warrants, and the seizure of illicitly obtained wages and a website domain.
“As alleged in the indictment, Chapman and her co-conspirators committed fraud and stole the identities of American citizens to enable individuals based overseas to pose as domestic, remote IT workers,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The charges in this case should be a wakeup call for American companies and government agencies that employ remote IT workers. These crimes benefitted the North Korean government, giving it a revenue stream and, in some instances, proprietary information stolen by the co-conspirators. The Criminal Division remains firm in its commitment to prosecute complex criminal schemes like this one.”
“Today’s announcement of charges and law enforcement action show our broad approach to attacking funding sources for North Korea across the United States,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, that use U.S. financial systems to raise revenue for North Korea.”
“On the surface, today’s allegations of wire fraud, identity theft, and money laundering may read like a typical white collar or economic crime scheme,” said Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division. “But what these allegations truly represent is a new high-tech campaign to evade U.S. sanctions, victimize U.S. businesses, and steal U.S. identities. The charges clearly demonstrate how the FBI and its partners will employ every resource at our disposal to bring to justice anyone who helps North Korea evade sanctions.”
An indictment was unsealed today in the District of Columbia against U.S. citizen Christina Marie Chapman, 49, of Litchfield Park, Arizona, related to her participation in a scheme to assist overseas IT workers—posing as U.S. citizens and residents—in working at more than 300 U.S. companies in remote IT positions. Chapman was arrested yesterday in Litchfield Park, Arizona.
As alleged in the indictment, Chapman and her co-conspirators’ scheme defrauded U.S. companies across myriad industries, including multiple well-known Fortune 500 companies, U.S. banks, and other financial service providers. The identities of more than 60 U.S. persons were compromised and used by IT workers related to Chapman’s cell.
In addition to Chapman, the indictment charged three foreign nationals with money laundering for their participation in the scheme. As alleged in the indictment, the department seized wages earned by more than 19 overseas IT workers and will seek forfeiture of the same.
Additionally, a criminal complaint was unsealed today in the District of Columbia charging Ukrainian national Oleksandr Didenko, 27, of Kyiv, with a separate years-long scheme to create fake accounts at U.S. IT job search platforms and with U.S.-based money service transmitters.
As alleged in the complaint, Didenko sold the accounts to overseas IT workers, some of whom he believed were North Korean, and the overseas IT workers used the false identities to apply for jobs with unsuspecting companies. Several U.S. persons had their identities used by IT workers related to Didenko’s cell, and evidence in the complaint showed that the overseas IT workers using Didenko’s services were also working with Chapman. Polish authorities arrested Didenko on May 6 at the request of the United States, which is seeking Didenko’s extradition from Poland.
Didenko’s company’s online domain, upworksell.com, was also seized today by the Justice Department pursuant to a court order, and all traffic diverted to the FBI.
Related to the above schemes, the FBI executed search warrants for U.S. based “laptop farms,” residences that hosted multiple laptops for overseas IT workers, wherein U.S.-based facilitators logged onto U.S. company computer networks and then allowed the overseas IT workers to remotely access those laptops through various software applications. The overseas IT workers used the laptop farms’ U.S. Internet Protocol addresses to make it appear as though they were operating inside the United States. Chapman’s residence was searched in October 2023 pursuant to a search warrant issued in the District of Arizona, resulting in evidence that is reflected in the indictment. Search warrants for four U.S. residences associated with laptop farms controlled by Didenko were issued in the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, and executed between May 8 and May 10.
Concurrent with today’s announcement, the U.S. Department of State announced a reward of up to $5 million for information related to Chapman’s coconspirators: John Doe 1, alias Jiho Han; John Doe 2, alias Haoran Xu; John Doe 3, alias Chunji Jin; and an unindicted coconspirator utilizing aliases “Zhonghua” and “Venechor S.”
Chapman Indictment, Money Seizures, and Premises Warrant
According to the indictment, the overseas IT workers associated with Chapman, many of whom were tied to North Korea, posed as U.S. citizens using the stolen, false, or borrowed identities of U.S. nationals, and applied for positions at U.S companies, causing the transmission of false documentation to the U.S. Department of Homeland Security (DHS). The overseas IT workers gained employment at U.S. companies, including at a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car manufacturer, a luxury retail store, and a U.S.-hallmark media and entertainment company, all of which were Fortune 500 companies. Some of these companies were purposely targeted by a group of DPRK IT workers, who maintained postings for companies at which they wanted to insert IT workers.
Chapman ran a “laptop farm,” hosting the overseas IT workers’ computers inside her home so it appeared that the computers were located in the United States, and also received and forged payroll checks and received direct deposits of the overseas IT workers’ wages from the U.S. companies into her U.S. financial accounts. The overseas IT workers also attempted to gain employment and access to information at two different U.S. government agencies on three different occasions, although these efforts were generally unsuccessful. The overseas IT workers associated with Chapman’s cell were paid millions for their work, much of which has been falsely reported to the IRS and the Social Security Administration in the name of the actual U.S. persons whose identities were stolen or borrowed. Chapman also allegedly conspired with the John Doe defendants to commit money laundering by conducting financial transactions under aliases to receive money generated by the scheme and transfer those funds outside of the United States, in an attempt to hide that these were proceeds of the IT workers’ fraud.
Chapman and her co-conspirators allegedly compromised more than 60 identities of U.S. persons, impacted more than 300 U.S. companies, caused false information to be conveyed to DHS on more than 100 occasions, created false tax liabilities for more than 35 U.S. persons, and resulted in at least $6.8 million of revenue to be generated for the overseas IT workers. The department seized funds related to scheme from Chapman as well as wages and monies accrued by more than 19 overseas IT workers.
“Using the stolen identities of U.S. citizens is a crime by itself, but when you use those identities to procure employment for foreign nationals with ties to North Korea at hundreds of U.S. companies, you have compromised the national security of an entire nation,” said Chief Guy Ficco of IRS-CI. “For more than 100 years, IRS Criminal Investigation special agents have been following the money, and their financial expertise has once again stopped criminals in their tracks.”
Chapman is charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit identity fraud, conspiracy to launder monetary instruments, operating as an unlicensed money transmitting business, and unlawful employment of aliens. The John Does are charged with conspiracy to commit money laundering. If convicted, Chapman faces a maximum penalty of 97.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count, and the John Does face a maximum penalty of 20 years in prison.
The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are investigating this case, with assistance from the FBI Chicago Field Office.
Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas. The U.S. Attorney’s Office for the District of Arizona and Trial Attorney Gregory Nicosia of the National Security Division’s National Security Cyber Section also provided valuable assistance.
Didenko Complaint, Domain Seizure, and Premises Warrants
According to the criminal complaint, Didenko allegedly engaged in a multi-year scheme to create accounts at U.S.-based freelance IT job search platforms and with U.S. money service transmitters in the names of false identities, including identities of U.S. persons, and sold these accounts to overseas IT workers. Didenko ran a website, upworksell.com, which advertised creating, buying, and renting accounts at U.S. websites using false identities, and also advertised “Credit Card Rental” in the European Union and the United States and SIM card rental for cellular phones. Didenko allegedly offered a full array of services to allow an individual to pose under a false identity and market themselves for remote IT work with unsuspecting companies. As stated, Didenko’s domain was seized as part of the case.
According to the affidavit in support of the complaint, Didenko is alleged to have managed as many as approximately 871 “proxy” identities, provided proxy accounts for three freelance U.S. IT hiring platforms, and provided proxy accounts for three different U.S.-based money service transmitters. In coordination with his co-conspirators, Didenko facilitated the operation of at least three U.S.-based laptop farms, at one point hosting approximately 79 computers. Didenko sent or received $920,000 in U.S. dollar payments since July 2018.
Didenko acknowledged in messages that he believed he was assisting North Korean IT workers. One of Didenko’s overseas IT worker customers also requested that a laptop be sent from one of Didenko’s U.S. laptop farms to Chapman’s laptop farm, showing the interconnectivity of these cells within the DPRK overseas IT worker network. Search warrants of Didenko’s laptop farms were executed in early May.
If convicted, Didenko faces a maximum penalty of 67.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count.
The FBI New York Field Office is investigating this case. The FBI Norfolk and San Diego Field Offices and the Jefferson City, Tennessee, Resident Agency provided assistance in executing search warrants.
Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas and the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorney’s Offices for the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, Justice Department’s Office of International Affairs, and Trial Attorney Jacques-Singer Emory of the National Security Division’s National Security Cyber Section provided valuable assistance as well.
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The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector, and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Charges and Seizures Brought in Fraud Scheme Aimed at Denying Revenue for Workers Associated with North KoreaRead the Press Release
WASHINGTON – The Justice Department unsealed charges, seizures, and other court-authorized actions to disrupt the illicit revenue generation efforts of the Democratic People’s Republic of Korea (DPRK or North Korea).
The charges include prosecutions of an Arizona woman, Ukrainian man, and three unidentified foreign nationals who allegedly participated in schemes to place overseas information technology (IT) workers—posing as U.S. citizens and residents—in remote positions at U.S. companies.
As alleged in the court documents, DPRK has dispatched thousands of skilled IT workers around the world, who used stolen or borrowed U.S. persons’ identities to pose as domestic workers, infiltrate domestic companies’ networks, and raise revenue for North Korea. The schemes described in court documents involved defrauding over 300 U.S. companies using U.S. payment platforms and online job site accounts, proxy computers located in the United States, and witting and unwitting U.S. persons and entities. This announcement includes the largest case ever charged by the Justice Department involving this type of IT workers’ scheme.
Two criminal prosecutions brought by the U.S. Attorney’s Office for the District of Columbia, one in partnership with the Computer Crime and Intellectual Property Section of the Justice Department’s Criminal Division, were unsealed today. As part of the prosecutions, two defendants have been arrested and related seizures and search warrants have been executed in Washington, D.C. and other jurisdictions. The investigations were led by the FBI Phoenix and New York Field Offices and IRS Criminal Investigations (IRS-CI), and coordinated with five other FBI field offices and four other U.S. Attorney’s Offices, producing arrests in the United States and Poland, the execution of five premises search warrants, and the seizure of illicitly obtained wages and a website domains.
“As alleged in the indictment, Chapman and her co-conspirators committed fraud and stole the identities of American citizens to enable individuals based overseas to pose as domestic, remote IT workers,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The charges in this case should be a wakeup call for American companies and government agencies that employ remote IT workers. These crimes are alleged to have benefitted the North Korean government. The Criminal Division remains firm in its commitment to prosecute complex criminal schemes like this one.”
“Today’s announcement of charges and law enforcement action show our broad approach to attacking funding sources for North Korea across the United States,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We will continue to vigorously pursue cases against individuals, in the United States and abroad, that use U.S. financial systems to raise revenue for North Korea.”
“On the surface, today’s allegations of wire fraud, identity theft, and money laundering may read like a typical white collar or economic crime scheme,” said Assistant Director Kevin Vorndran of the FBI’s Counterintelligence Division. “But what these allegations truly represent is a new high-tech campaign to evade U.S. sanctions, victimize U.S. businesses, and steal U.S. identities. The charges clearly demonstrate how the FBI and its partners will employ every resource at our disposal to bring to justice anyone who helps North Korea evade sanctions.”
“The FBI has long-stated that cybersecurity is national security and this case is living proof of that,” said FBI Special Agent in Charge Akil Davis of the Phoenix Field Office. “That a woman living her quiet life in the outskirts of Phoenix can allegedly get so entangled in something like this clearly indicates our adversaries are getting more sophisticated and stealthier, so it’s critical that businesses and citizens be hyper-vigilant with their cyber activities.”
“Today’s announcement exposes disturbing criminal ties to North Korea where fraudsters allegedly used stolen identities of U.S. citizens to infiltrate the U.S. job market as remote workers,” said IRS Criminal Investigation Acting Special Agent in Charge of the Phoenix Field Office Carissa Messick. “CI and our federal partners will remain vigilant in our efforts to expose criminal fraud schemes that jeopardize our national security.”
“Oleksandr Didenko allegedly owned and operated U.S.-based online infrastructure as well as fraudulent and stolen U.S. persons’ identities for use by Information Technology workers in North Korea in an effort to evade sanctions,” said FBI Assistant Director Smith of the New York Field Office. “The arrest of Didenko demonstrates the FBI’s commitment to protecting the United States from threats posed by a hostile foreign actors, specifically the government of the Democratic Peoples Republic of Korea. Didenko's arrest also sends a clear message to anyone who supports this type of brazen illegal activity the FBI and our global law enforcement partners will hold you accountable wherever you may be.”
An indictment was unsealed today in the District of Columbia against U.S. citizen Christina Marie Chapman, 49, of Litchfield Park, Arizona, related to her participation in a scheme to assist overseas IT workers—posing as U.S. citizens and residents—in working at more than 300 U.S. companies in remote IT positions. Chapman was arrested yesterday in Litchfield Park, Arizona.
As alleged in the indictment, Chapman and her co-conspirators’ scheme defrauded U.S. companies across myriad industries, including multiple well-known Fortune 500 companies, U.S. banks, and other financial service providers. The identities of more than 60 U.S. persons were compromised and used by IT workers related to Chapman’s cell.
In addition to Chapman, the indictment charged three foreign nationals with money laundering for their participation in the scheme. As alleged in the indictment, the department seized wages earned by more than 19 overseas IT workers and will seek forfeiture of the same.
Additionally, a criminal complaint was unsealed today in the District of Columbia charging Ukrainian national Oleksandr Didenko, 27, of Kyiv, with a separate years-long scheme to create fake accounts at U.S. IT job search platforms and with U.S.-based money service transmitters.
As alleged in the complaint, Didenko sold the accounts to overseas IT workers, some of whom he believed were North Korean, and the overseas IT workers used the false identities to apply for jobs with unsuspecting companies. Several U.S. persons had their identities used by IT workers related to Didenko’s cell, and evidence in the complaint showed that the overseas IT workers using Didenko’s services were also working with Chapman. Polish authorities arrested Didenko on May 6 at the request of the United States, which is seeking Didenko’s extradition from Poland.
Didenko’s company’s online domain, upworksell.com, was also seized today by the Justice Department pursuant to a court order, and all traffic diverted to the FBI.
Related to the above schemes, the FBI executed search warrants for U.S. based “laptop farms,” residences that hosted multiple laptops for overseas IT workers, wherein U.S.-based facilitators logged onto U.S. company computer networks and then allowed the overseas IT workers to remotely access those laptops through various software applications. The overseas IT workers used the laptop farms’ U.S. Internet Protocol addresses to make it appear as though they were operating inside the United States. Chapman’s residence was searched in October 2023 pursuant to a search warrant issued in the District of Arizona, resulting in evidence that is reflected in the indictment. Search warrants for four U.S. residences associated with laptop farms controlled by Didenko were issued in the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, and executed between May 8 and May 10.
Concurrent with today’s announcement, the U.S. Department of State announced a reward of up to $5 million for information related to Chapman’s coconspirators: John Doe 1, alias Jiho Han; John Doe 2, alias Haoran Xu; John Doe 3, alias Chunji Jin; and an unindicted coconspirator utilizing aliases “Zhonghua” and “Venechor S.”
Chapman Indictment, Money Seizures, and Premises Warrant
According to the indictment, the overseas IT workers associated with Chapman, many of whom were tied to North Korea, posed as U.S. citizens using the stolen, false, or borrowed identities of U.S. nationals, and applied for positions at U.S companies, causing the transmission of false documentation to the U.S. Department of Homeland Security (DHS). The overseas IT workers gained employment at U.S. companies, including at a top-five major television network, a Silicon Valley technology company, an aerospace manufacturer, an American car manufacturer, a luxury retail store, and a U.S.-hallmark media and entertainment company, all of which were Fortune 500 companies. Some of these companies were purposely targeted by a group of DPRK IT workers, who maintained postings for companies at which they wanted to insert IT workers.
Chapman ran a “laptop farm,” hosting the overseas IT workers’ computers inside her home so it appeared that the computers were located in the United States, and also received and forged payroll checks and received direct deposits of the overseas IT workers’ wages from the U.S. companies into her U.S. financial accounts. The overseas IT workers also attempted to gain employment and access to information at two different U.S. government agencies on three different occasions, although these efforts were generally unsuccessful. The overseas IT workers associated with Chapman’s cell were paid millions for their work, much of which has been falsely reported to the IRS and the Social Security Administration in the name of the actual U.S. persons whose identities were stolen or borrowed. Chapman also allegedly conspired with the John Doe defendants to commit money laundering by conducting financial transactions under aliases to receive money generated by the scheme and transfer those funds outside of the United States, in an attempt to hide that these were proceeds of the IT workers’ fraud.
Chapman and her co-conspirators allegedly compromised more than 60 identities of U.S. persons, impacted more than 300 U.S. companies, caused false information to be conveyed to DHS on more than 100 occasions, created false tax liabilities for more than 35 U.S. persons, and resulted in at least $6.8 million of revenue to be generated for the overseas IT workers. The department seized funds related to scheme from Chapman as well as wages and monies accrued by more than 19 overseas IT workers.
“Using the stolen identities of U.S. citizens is a crime by itself, but when you use those identities to procure employment for foreign nationals with ties to North Korea at hundreds of U.S. companies, you have compromised the national security of an entire nation,” said Chief Guy Ficco of IRS-CI. “For more than 100 years, IRS Criminal Investigation special agents have been following the money, and their financial expertise has once again stopped criminals in their tracks.”
Chapman is charged with conspiracy to defraud the United States, conspiracy to commit wire fraud, conspiracy to commit bank fraud, aggravated identity theft, conspiracy to commit identity fraud, conspiracy to launder monetary instruments, operating as an unlicensed money transmitting business, and unlawful employment of aliens. The John Does are charged with conspiracy to commit money laundering. If convicted, Chapman faces a maximum penalty of 97.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count, and the John Does face a maximum penalty of 20 years in prison.
The FBI Phoenix Field Office and IRS-CI Phoenix Field Office are investigating this case, with assistance from the FBI Chicago Field Office.
Assistant U.S. Attorney Karen P. Seifert for the District of Columbia and Trial Attorney Ashley R. Pungello of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting this case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas. The U.S. Attorney’s Office for the District of Arizona and Trial Attorney Gregory Nicosia of the National Security Division’s National Security Cyber Section also provided valuable assistance.
Didenko Complaint, Domain Seizure, and Premises Warrants
According to the criminal complaint, Didenko allegedly engaged in a multi-year scheme to create accounts at U.S.-based freelance IT job search platforms and with U.S. money service transmitters in the names of false identities, including identities of U.S. persons, and sold these accounts to overseas IT workers. Didenko ran a website, upworksell.com, which advertised creating, buying, and renting accounts at U.S. websites using false identities, and also advertised “Credit Card Rental” in the European Union and the United States and SIM card rental for cellular phones. Didenko allegedly offered a full array of services to allow an individual to pose under a false identity and market themselves for remote IT work with unsuspecting companies. As stated, Didenko’s domain was seized as part of the case.
According to the affidavit in support of the complaint, Didenko is alleged to have managed as many as approximately 871 “proxy” identities, provided proxy accounts for three freelance U.S. IT hiring platforms, and provided proxy accounts for three different U.S.-based money service transmitters. In coordination with his co-conspirators, Didenko facilitated the operation of at least three U.S.-based laptop farms, at one point hosting approximately 79 computers. Didenko sent or received $920,000 in U.S. dollars payments since July 2018.
Didenko acknowledged in messages that he believed he was assisting North Korean IT workers. One of Didenko’s overseas IT worker customers also requested that a laptop be sent from one of Didenko’s U.S. laptop farms to Chapman’s laptop farm, showing the interconnectivity of these cells within the DPRK overseas IT worker network. Search warrants of Didenko’s laptop farms were executed in early May 2024.
If convicted, Didenko faces a maximum penalty of 67.5 years in prison, including a mandatory minimum of two years in prison on the aggravated identity theft count.
The FBI New York Field Office is investigating this case. The FBI Norfolk and San Diego Field Offices and the Jefferson City, Tennessee, Resident Agency provided assistance in executing search warrants.
Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman for the District of Columbia are prosecuting the case, with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas and the U.S. Attorney’s Office for the District of Columbia. The U.S. Attorney’s Offices for the Southern District of California, Eastern District of Tennessee, and Eastern District of Virginia, Justice Department’s Office of International Affairs, and Trial Attorney Jacques Singer-Emery of the National Security Division’s National Security Cyber Section provided valuable assistance as well.
***
The FBI, along with the Departments of State and Treasury, issued a May 2022 advisory to alert the international community, private sector, and public about the North Korea IT worker threat. Updated guidance was issued in October 2023 by the United States and the Republic of Korea (South Korea), which includes indicators to watch for that are consistent with North Korea IT worker fraud.
An indictment and a criminal complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chairman of Multinational Investment Company and Company Consultant Convicted of Bribery Scheme at RetrialRead the Press Release
A federal jury in Charlotte, North Carolina, convicted the founder and chairman of a multinational investment company and a company consultant yesterday after a retrial for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions.
According to court documents and evidence presented at trial, from April 2017 to August 2018, Greg E. Lindberg, 54, of Durham, North Carolina, the founder and chairman of Eli Global LLC and the owner of Global Bankers Insurance Group (GBIG), and Lindberg’s consultant, John D. Gray, 73, of Chapel Hill, North Carolina, engaged in a bribery scheme involving independent expenditure committees and improper campaign contributions for the purpose of causing the Commissioner of Insurance (Commissioner) of the North Carolina Department of Insurance (NCDOI) to take official action favorable to Lindberg’s company, GBIG. Lindberg and Gray gave, offered, and promised the Commissioner millions of dollars in campaign contributions and other things of value in exchange for the removal of NCDOI’s Senior Deputy Commissioner, who was responsible for overseeing the regulation and the periodic examination of GBIG.
Lindberg, Gray, and the Commissioner held numerous in-person meetings at different locations and had telephonic and other communications with each other, a third codefendant, Robert Cannon Hayes, 74, of Concord, North Carolina, and others to discuss Lindberg’s request for the personnel change in exchange for millions of dollars, and to devise a plan on how to funnel campaign contributions to the Commissioner anonymously. To conceal the bribery scheme, Lindberg directed the establishment of two corporate entities to form independent expenditure committees with the purpose of supporting the Commissioner’s re-election campaign. Lindberg then funded the entities with $1.5 million, as promised to the Commissioner. In addition, at Lindberg’s and Gray’s direction, Hayes caused the transfer of $250,000 from monies Lindberg had previously contributed to a North Carolina state party, which Hayes chaired, to the Commissioner’s re-election campaign.
The jury convicted Lindberg and Gray of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds. They face a maximum penalty of 30 years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Hayes pleaded guilty in October 2019 to making false statements to the FBI.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and U.S. Attorney Dena J. King for the Western District of North Carolina; Assistant Director Michael Nordwall of the FBI's Criminal Investigative Division; and Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office made the announcement.
The FBI Charlotte Field Office investigated the case.
Trial Attorney William Gullotta of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Lawrence Cameron and Dana Washington for the Western District of North Carolina are prosecuting the case.
Carter County Resident Sentenced for Role in Defrauding A RetireeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amber Nicole Pickelsimer, age 45, of Healdton, Oklahoma, was sentenced to 41 months in prison for one count of Wire Fraud. Pickelsimer was also ordered to pay restitution to the victim in the amount of $1,050,000.
The charge arose from an investigation by the Federal Bureau of Investigation.
On July 20, 2023, Pickelsimer pleaded guilty to one count of Wire Fraud. As part of the plea, Pickelsimer admitted to defrauding a victim of their retirement savings through a blackmail scheme perpetrated over nineteen months between 2019 and 2020. According to investigators, Pickelsimer targeted a retired acquaintance, created fake Facebook accounts, then used those accounts to extort money from the victim. Pickelsimer initiated contact with the victim through one of the fake accounts, falsely claimed to possess damaging material about a family member and threatened to release the damaging material unless the victim delivered large quantities of money to a drop site. Soon after, Pickelsimer created an additional fake Facebook account and multiple false personas to send messages to threaten the victim into making additional payments.
“We take extortion threats very seriously and will investigate them to the fullest extent of federal law,” said Acting Special Agent in Charge Sonia Garcia of the FBI Oklahoma City Field Office. “The criminals who think they can extort innocent people should know there will be consequences. These crimes cause severe emotional distress to the victims and will not be tolerated.”
“Online extortion can be financially and emotionally devastating, but it can be stopped,” said United States Attorney Christopher J. Wilson. “If you believe you or someone you know is the target of cyberextortion or blackmail, do not be afraid to reach out for help.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Pickelsimer will self-report on June 13, 2024, to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kara Traster represented the United States.
If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline, Monday through Friday, from 9:00 a.m. to 5:00 p.m. CT.
1-833-FRAUD-11 (1-833-372-8311)Or to file a complaint, visit the Internet Crime Complaint Center (IC3), the FBI’s central hub for reporting cybercrime, at https://www.ic3.gov/Home/ComplaintChoice and select “Elder Fraud.”
Cape Cod Hospital to Pay $24.3 Million to Resolve False Claims Act Allegations Concerning Its Failure to Comply with Medicare Rules for Cardiac ProceduresRead the Press Release
Cape Cod Hospital, based in Hyannis, Massachusetts, has agreed to pay $24.3 million to resolve False Claims Act allegations that it knowingly submitted claims to Medicare for transcatheter aortic valve replacement (TAVR) procedures that failed to comply with Medicare rules specifying the way in which hospitals were required to evaluate patient suitability for the procedures.
Beginning in 2015, Cape Cod Hospital began offering TAVR procedures for patients suffering from aortic stenosis, a serious heart condition that restricts blood flow from the heart to rest of the body. A TAVR procedure involves replacing a patient’s damaged heart valve with an artificial one. Medicare rules at the time required that, prior to performing a TAVR procedure, hospitals engage specified clinical personnel to conduct an independent examination of prospective patients to evaluate their suitability for TAVR, document the rationale for their clinical judgment and make the rationale available to the medical team performing the TAVR procedure. The settlement resolves allegations that from Nov. 1, 2015, through Dec. 31, 2022, Cape Cod Hospital knowingly submitted hundreds of claims to Medicare for TAVR procedures that did not comply with the applicable Medicare requirements. In some instances, not enough physicians examined a patient’s suitability for the procedure, while in other instances the physicians failed to document and share their clinical judgment with the medical team responsible for the TAVR procedure.
“Hospitals that participate in the Medicare program must abide by applicable coverage and reimbursement rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold healthcare providers accountable when they knowingly fail to comply with Medicare reimbursement requirements.”
“Medicare permitted coverage for this newly developed cardiac procedure only under certain conditions to ensure patient safety. Cape Cod Hospital ignored those rules and received millions of dollars from Medicare to which it was not entitled. This conduct persisted for years despite internal warnings,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This investigation and settlement ensures that patient safety is prioritized over a hospital’s bottom line.”
In connection with the settlement, Cape Cod Hospital has entered into a five-year corporate integrity agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its paid Medicare claims by an Independent Review Organization.
“Health care providers are expected to follow Medicare rules and bill properly,” said Special Agent in Charge Roberto Coviello of HHS-OIG. “We are committed to pursuing allegations of False Claims Act violations as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”
Cape Cod Hospital received credit under the department’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases. Among other actions, Cape Cod Hospital voluntarily produced materials, identified the relevant medical records, admitted that it failed to adhere to the applicable Medicare requirements and implemented appropriate remedial measures.
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 by Richard Zelman, a physician formerly employed by Cape Cod Hospital. Under the Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Zelman v. Cape Cod Hospital, No. 1:22-cv-11204 (D. Mass.). As part of today’s resolution, Dr. Zelman will receive approximately $4.36 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorney Kimya Saied of the Fraud Section and Assistant U.S. Attorney Andrew A. Caffrey, III for the District of Massachusetts handled the matter.
Except for the facts admitted by Cape Cod Hospital, the claims in the complaint are allegations only, and there has been no determination of liability.
SettlementCape Cod Hospital to Pay $24.3 Million to Resolve Allegations That It Failed to Comply with Medicare Cardiac Procedure RulesRead the Press Release
BOSTON – Cape Cod Hospital has agreed to pay $24.3 million to resolve allegations that it knowingly submitted claims to Medicare for transcatheter aortic valve replacement (TAVR) procedures that failed to comply with Medicare rules specifying the way in which hospitals were required to evaluate patient suitability for the procedures.
Beginning in 2015, Cape Cod Hospital began offering TAVR procedures for patients suffering from aortic stenosis, a serious heart condition that restricts blood flow from the heart to the rest of the body. A TAVR procedure involves replacing a patient’s damaged heart valve with an artificial one. Medicare rules at the time required that, prior to performing a TAVR procedure, hospitals engage specified clinical personnel to conduct an independent examination of prospective patients to evaluate their suitability for TAVR; document the rationale for their clinical judgment; and make the rationale available to the medical team performing the TAVR procedure.
The settlement resolves allegations that from November 2015 through December 2022, Cape Cod Hospital knowingly submitted hundreds of claims to Medicare for TAVR procedures that did not comply with the applicable Medicare requirements. In some instances, not enough physicians examined a patient’s suitability for the procedure, while in other instances the physicians failed to document and share their clinical judgment with the medical team responsible for the TAVR procedure.
“Medicare permitted coverage for this newly developed cardiac procedure only under certain conditions, to ensure patient safety. Cape Cod Hospital ignored those rules and received millions of dollars from Medicare to which it was not entitled. This conduct persisted for years despite internal warnings,” said Acting United States Attorney Joshua S. Levy for the District of Massachusetts. “This investigation and settlement ensure that patient safety is prioritized over a hospital’s bottom line.”
“Hospitals that participate in the Medicare program must abide by applicable coverage and reimbursement rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold healthcare providers accountable when they knowingly fail to comply with Medicare reimbursement requirements.”
“Health care providers are expected to follow Medicare rules and bill properly,” said Roberto Coviello, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to pursuing allegations of False Claims Act violations as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.”
In connection with the settlement, Cape Cod Hospital has entered into a five-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), which provides for an annual review of its paid Medicare claims by an Independent Review Organization.
Cape Cod Hospital received credit under the Department’s guidelines for taking disclosure, cooperation, and remediation into account in False Claims Act cases. Among other actions, Cape Cod Hospital voluntarily produced materials, identified the relevant medical records, admitted that it failed to adhere to the applicable Medicare requirements and implemented appropriate remedial measures.
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 $4.36 million.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorney Andrew A. Caffrey, III of the Affirmative Civil Enforcement Unit handled the matter along with Trial Attorney Kimya Saied of the Department of Justice’s Fraud Section.
Camden County Man Sentenced to 171 Months in Prison for Methamphetamine TraffickingRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 171 months in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Philip R. Sellinger announced.
Michael Venditti, 39, of Camden, previously pleaded guilty before Senior U.S. District Judge Robert B. Kugler to an information charging him with conspiring to distribute 50 grams or more of methamphetamine. Judge Kugler imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
From March 2021 through September 2021, Venditti coordinated an operation by which he received U.S. Postal Service Parcels collectively containing more than 100 pounds of methamphetamine. Venditti distributed the methamphetamine he received to others. On Sept. 20, 2021, Venditti and his conspirators were encountered at a residence in Camden. When law enforcement searched the residence, they seized approximately eight pounds of methamphetamine, approximately $29,000 in U.S. currency, scales, and other drug paraphernalia.
In addition to the prison term, Judge Kugler sentenced Venditti to five years of supervised release and ordered him to forfeit $29,433.
U.S. Attorney Sellinger credited troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Christopher A. Nielsen; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; and special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker, with the investigation leading to the sentencing.
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. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.
CEO of Clean Energy Company Sentenced to 72 Months’ Imprisonment for Fraud, Identity Theft, Money Laundering, and Obstruction of Justice OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States District Judge Malachy E. Mannion sentenced James Abrams, age 41, of Easley, South Carolina, to 72 months of imprisonment and three years of supervised release following his term of imprisonment. In June 2023, Abrams was convicted following a nine-day jury trial of all 48 counts in an indictment charging wire and mail fraud, aggravated identity theft, money laundering, unlawful monetary transactions, obstruction of justice, and false statement offenses.
According to United States Attorney Gerard M. Karam, Abrams was the Chief Executive Officer of EthosGen LLC, a company operating in the clean energy industry. The evidence at trial showed that in 2017 and 2018, Abrams provided extensive forged documents and false information to induce several investors to invest $1,100,000 in his company. The false documentation included forged teaming agreements and intellectual property licenses, where Abrams substituted his and EthosGen LLC’s name for other companies and individuals, claiming that EthosGen LLC owned technology it did not own. During a pre-investment due diligence process, Abrams also provided forged tax returns and false financial statements that fabricated an existing customer base, and inflated EthosGen LLC’s historical revenues, business activity, and profitability, thereby making it a more attractive investment. Abrams further provided forged contracts and purchase orders to potential investors, in which he claimed to have a revenue stream that, in reality, belonged to other companies. Following an initial investment of $900,000, Abrams provided additional forged contracts and false customer sales documentation to induce an investor to advance another $200,000 to EthosGen LLC.
As a result of those activities, the jury convicted Abrams of 18 counts of wire fraud, and one count of mail fraud. The jury also convicted Abrams of five counts of aggravated identity theft based on his forging multiple individuals’ signatures and using their personal information on falsified documentation, without their authorization.
The evidence at trial also showed that Abrams used approximately $800,000 of the investors’ money to purchase a personal residence in Easley, South Carolina. To conceal his financial activities, Abrams transferred $700,000 of the funds through a series of five bank accounts under his control, and opened in the names of shell companies, before purchasing the residence. He then lied to investors and to his own financial professionals, claiming that he used the funds to purchase company inventory for EthosGen LLC. Abrams provided investors with falsified company reports, certifications, and accounting records to corroborate his misrepresentations about the use of the investment funds. He also provided forged bank account statements and false information to both of EthosGen LLC’s sequential Chief Financial Officers, and to its accounting professionals. In reliance on those forgeries and lies, the accounting professionals unknowingly included false entries in EthosGen LLC’s books and records. As a result of those actions, the jury convicted Abrams of one count of money laundering, and 12 counts of engaging in unlawful monetary transactions.
The evidence at trial further showed that, upon becoming aware of the Internal Revenue Service’s criminal investigation, Abrams took several steps to obstruct investigators. Namely, he used misrepresentations and forged bank statements to induce EthosGen LLC financial professionals to create false documents and accounting records that purported to classify his embezzlement of investor funds as a shareholder loan. Abrams also met with investigators on two occasions and provided materially false statements in response to their questions. Those false statements included lies about purchasing inventory for EthosGen LLC, that EthosGen LLC owed him $800,000, that he provided his investors with truthful information when they evaluated his company during a due diligence process, and that he was ignorant about the origin of multiple forged contracts that he sent to investors. As a result of those activities, the jury convicted Abrams of four counts of obstruction of justice, and seven counts of providing false statements to federal investigators.
As part of the sentence, Judge Mannion ordered Abrams to pay the victims of his crimes $1,100,000 in restitution. Judge Mannion also ordered the forfeiture of the residence Abrams purchased in Easley, South Carolina, with the proceeds of his fraud.
The case was investigated by the Internal Revenue Service’s Criminal Investigations Division. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffery St John prosecuted the case.
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Bridgeport Drug Trafficker Sentenced to More Than 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JEFFREY THOMAS, also known as “Zig,” 51, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 125 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and heroin, and for violating the conditions of his supervised release that followed a prior federal conviction.
According to court documents and statements made in court, in 2019, the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force began investigating an organization that was distributing heroin, fentanyl and crack cocaine in an around Bridgeport. During the investigation, Task Force members made four controlled purchases of heroin and fentanyl from Frank Best. The investigation, which included court-authorized wiretaps and hundreds of consensual recordings, revealed that Frank Best’s uncles, Wallace Best and Jeffrey Thomas, were supplying Frank Best and others with narcotics.
The investigation further revealed that Thomas worked with Jason Cox to establish a connection to Mexican-sourced drug suppliers in California who could provide kilogram quantities of narcotics for distribution on the East Coast. In December 2019, a cooperating source working in conjunction with Wallace Best, Thomas, and Cox, traveled to a Home Depot parking lot in San Diego and purchased from their suppliers 1.1 kilograms of fentanyl, cut with Xylazine, which is a veterinary sedative, and Tramadol, in exchange for $27,000. After this successful transaction, the conspirators arranged to purchase five kilograms of heroin from their Mexican suppliers. On February 10, 2020, four individuals were arrested after they arrived at the same parking lot to conduct the transaction and investigators seized a box containing approximately 4.9 kilograms of heroin. A related search of a storage locker in San Diego revealed an additional five kilograms of heroin.
On October 14, 2022, a jury found Thomas, Wallace Best, and Cox guilty of one count of conspiracy to distribute and to possess with intent to distribute kilogram quantities of heroin and fentanyl, and Thomas, Wallace Best, and Frank Best guilty of conspiracy to distribute and to possess with intent to distribute heroin, fentanyl and cocaine base (“crack”). In addition, Frank Best was found guilty of five counts of possession with intent to distribute, and distribution of, heroin, fentanyl, and cocaine base.
Thomas was previously convicted of a federal narcotics trafficking offense in 2002, and he was sentenced to 262 months of imprisonment. He was released from prison in January 2019 and was on federal supervised release at the time of his most recent criminal conduct.
Thomas was arrested on February 11, 2020. Released on a $150,000 bond, he is required to report to prison on July 23.
On May 13, 2024, Wallace Best was also sentenced to 180 months of imprisonment. On April 24, 2024, Cox was sentenced to 125 months of imprisonment. Frank Best awaits sentencing.
This matter was investigated by the DEA’s Bridgeport HIDTA Task Force with the assistance of the DEA San Diego Field Division. The DEA’s Bridgeport HIDTA Task Force includes personnel from the DEA Bridgeport Resident Office, the Connecticut State Police, and the Bridgeport, Norwalk, Stamford, Stratford, Milford, and Danbury Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Karen L. Peck, Lauren C. Clark, and Katherine E. Boyles through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Beckley Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – Eric I. Day, 53, of Beckley, was sentenced today to five years in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on August 21, 2021, law enforcement officers responding to reports of an altercation on South Huber Street in Beckley encountered Day and his girlfriend. The officers recovered a Lorcin model .380-caliber handgun from the waistband of Day’s shorts.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Day knew he was prohibited from possessing a firearm because of his prior felony conviction for first-degree robbery in Raleigh County Circuit Court on May 16, 2017.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-86.
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Bank Manager Admits Using Position to Steal Hundreds of Thousands of Dollars from CustomerRead the Press Release
NEWARK, N.J. – A former New York-based branch manager of an international financial institution today admitted using his position to steal more than $208,000 from a customer, U.S. Attorney Philip R. Sellinger announced.
James Gomes, 43, of New York, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an information charging him with one count of wire fraud affecting a financial institution.
According to documents filed in this case and statements made in court:
In early 2020, Gomes worked as the branch manager of a New York-based branch of an international bank. Starting in January 2020, Gomes used his position to improperly access bank accounts in the name of a bank customer. Without approval, Gomes enrolled the customer’s accounts in the bank’s online banking services. Gomes linked his personal phone number to the customer’s accounts and created a fraudulent email address containing the customer’s name, which he similarly linked to the customer’s accounts. Gomes also used the fraudulent email address to “correspond” with his official bank email address to make it appear that the customer was sending instructions to the bank. In March and April 2020, Gomes fraudulently transferred a total of $208,939 from the customer’s accounts to Gomes’ personal bank accounts at other financial institutions, to his personal investment account, and to pay his personal cell phone bill. Gomes continued the scheme even after the customer died on April 5, 2020.
The charge of wire fraud affecting a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine. Sentencing is scheduled for Nov. 6, 2024.
U.S. Attorney Sellinger credited special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and special agents of the Federal Deposit Insurance Corporation – Office of Inspector General, New York Region, under the direction of Special Agent in Charge Patricia Tarasca, with the investigation leading to the guilty plea. He also thanked the Morristown Police Department.
The government is represented by Assistant U.S. Attorney Marko Pesce of the Economic Crimes Unit in Newark and Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Justice Department’s Money Laundering and Asset Recovery Section.
gomes.information.pdfAvonmore Man Indicted on Child Sexual Exploitation ChargesRead the Press Release
JOHNSTOWN, Pa. – A resident of Avonmore, Pennsylvania, was indicted by a federal grand jury in Johnstown on charges of possession and production of material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.The four-count Indictment, returned on May 14 and unsealed today, named Kenneth Bee, 53, as the sole defendant.
According to the Indictment, over a several year period, Bee produced images of a minor engaged in sexually explicit conduct. Further, in and around September 2022, Bee possessed images of prepubescent minors engaging in sexually explicit conduct.
The law provides for a sentence of not less than 15 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
Homeland Security Investigations and the Pennsylvania State Police conducted the investigation leading to the Indictment. Other agencies involved include the Armstrong County District Attorney’s Office and the Indiana County District Attorney’s Office.
This case was brought as a part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Auburn Man Sentenced to 97 Months in Federal Prison for Possessing Child PornographyRead the Press Release
Montgomery, ALABAMA – Today, United States Attorney Jonathan S. Ross announced the sentencing of an Auburn, Alabama man for possession of child pornography. On May 15, 2024, a federal judge in Montgomery ordered 33-year-old Maxime Tessier, to serve 97 months in prison. The judge also ordered that Tessier serve five years of supervised release following the prison term. There is no parole in the federal system.
According to Tessier’s plea agreement and other court records, in 2022, law enforcement received a tip that there were images of child pornography being shared online from an account linked to Tessier’s Auburn residence. On November 15, 2022, federal agents executed a search warrant at that location. Agents seized and examined various electronic devices belonging to Tessier. They found, stored on the devices, numerous images containing suspected child pornography. During his January 16, 2024, plea hearing, Tessier specifically admitted that some of the images were sexually explicit depictions of children under the age of 12.
The Federal Bureau of Investigation and the Auburn Police Department investigated this case, which Assistant United States Attorney Tara S. Ratz prosecuted.
Atlanta Woman Sentenced for Role in Smuggling Contraband into a Federal PrisonRead the Press Release
CHARLESTON, S.C. — Ashlee Richardson-Barley, 34, of Atlanta, Georgia, was sentenced to one year and one day in federal prison after pleading guilty to her role in smuggling contraband into the Federal Correctional Institution, Estill (“FCI Estill”), located in Estill, South Carolina.
Evidence presented to the court showed that while Richardson-Barley was employed as a correctional officer at FCI Estill and between November 2019 and April 2020 she smuggled contraband, to include cigarettes, marijuana, cellphones, and suboxone, into FCI Estill. In exchange for the bringing the contraband into the facility, she was paid approximately $15,700.00 by inmates.
“Federal employees, especially those who enforce the law, are held to a higher standard,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “ This sentence sends a clear message that no one is above the law, and we will prosecute those who threaten the safety of our correctional facilities.”
“Contraband, including cell phones, in prisons can be dangerous weapons. The Department of Justice Office of the Inspector General is committed to bringing to justice any correctional officer that violates their oath and smuggles contraband into federal prison facilities,” said Eric R. Fehlman, Special Agent in Charge of the Department of Justice Office of the Inspector General Southeast Region.
United States District Judge David Norton sentenced Richardson-Barley to one year and one day imprisonment, to be followed by a one-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by Department of Justice Office of the Inspector General. Assistant U.S. Attorneys Winston Marosek and Amy Bower are prosecuting the case.
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10 District Men Arrested in Fentanyl and Cocaine Distribution ConspiracyRead the Press Release
WASHINGTON – Law enforcement arrested 10 members of a District-area drug trafficking crew charged in a 17-count indictment with participating in a conspiracy to distribute fentanyl and cocaine, as well as multiple firearms counts.
The indictment was announced by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office’s Criminal and Cyber Division, DEA Special Agent in Charge Jarod Forget of the Washington Division, Special Agent in Charge Troy Springer of the National Capital Region of the U.S. Department of Labor - Office of Inspector General, and Chief Pamela A. Smith of the Metropolitan Police Department.
Law enforcement executed search warrants, yesterday, for 21 residences, nine vehicles, and 14 individuals in the District and Maryland and seized nearly two dozen firearms as part of the operation.
Each defendant is charged in a conspiracy to distribute 400 grams or more of fentanyl and cocaine base within 1,000 feet of a protected location, specifically Phelps ACE High School and AppleTree Early Learning Public Charter School in Northeast Washington D.C. Two of the defendants, Charles Manson and Damien Jenkins, were also charged in connection with a shooting that occurred on March 7, 2024, near 19th and I Streets NE. For that incident, Manson was additionally charged with possession of a firearm in connection with a crime of violence and unlawful possession of ammunition.
The defendants, who all reside in Washington D.C., include:
NAME
AGE
AKA
CHARGES
Jamiek Bassil
31
“Onion”
Conspiracy to Distribute 400 Grams or More of Fentanyl Within 1,000 Feet of a Protected Location; Distribution of 40 Grams or More of Fentanyl x 5
Damien Jenkins
34
“Woe”
Conspiracy to Distribute 400 Grams or More of Fentanyl and Cocaine Base Within 1,000 Feet of a Protected Location;
Distribution of 40 Grams or More of Fentanyl x 3; Assault with a Deadly Weapon
Trevon Palmer
29
“Rocky”
Conspiracy to Distribute 400 Grams or More of Fentanyl and Cocaine Base Within 1,000 Feet of a Protected Location; Distribution of 40 Grams or More of Fentanyl x 3; Distribution of 50 Grams or More of Methamphetamine
Charles Manson
33
“Cheese”
Conspiracy to Distribute 40 Grams or More of Fentanyl and Cocaine Base Within 1,000 Feet of a Protected Location; Possession of Ammunition by a Felon; Assault with a Deadly Weapon; Possession of a Firearm During a Crime of Violence or Dangerous Offense
Van Robinson
32
“Boogie”
Conspiracy to Distribute 40 Grams or More of Fentanyl and Cocaine Base Within 1,000 Feet of a Protected Location
Nathaniel Russell
20
“Thump”
Conspiracy to Distribute 40 Grams or More of Fentanyl Within 1,000 Feet of a Protected Location x 4;
Distribution of 40 Grams or More of Fentanyl x 3
Briyon Shuford
29
“Breezy”
Conspiracy to Distribute 40 Grams or More of Fentanyl and Cocaine Base Within 1,000 Feet of a Protected Location
Lydell Douglas
40
“L”
Conspiracy to Distribute Fentanyl and Cocaine Base Within 1,000 Feet of a Protected Location
Jerome Powell
26
“J Rock”
Conspiracy to Distribute Fentanyl Within 1,000 Feet of a Protected Location
Jason Green
47
--
Conspiracy to Distribute Cocaine Base Within 1,000 Feet of a Protected Location
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was a multi-agency effort between the Violent Crime Investigations Team of the Violent Crime Suppression Division of the Metropolitan Police Department, the FBI Washington Field Office’s Cross-Border Task Force, the Drug Enforcement Administration’s Washington Division, and the Department of Labor Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Andrea Duvall and Solomon Eppel of the Violence Reduction and Trafficking Offenses (VRTO) Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
15 May 2024
Working with Mexican drug trafficker lands South Texan back in prisonRead the Press Release
McALLEN, Texas – A 43-year-old McAllen man has been sentenced for conspiracy to possess with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Raul Mendiola-Flores pleaded guilty Feb. 22.
U.S. District Judge Drew B. Tipton has now ordered Mendiola-Flores to serve 144 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court heard about his nine prior criminal convictions to include a felony possession with intent to deliver cocaine in which he previously served five years in prison.
Law enforcement determined Mendiola-Flores was in direct communication with Mexican drug traffickers to coordinate the importation of meth.
In May 2023, Jorge Lopez imported one kilogram of meth from Mexico into the United States through the Hidalgo Port of Entry. The Mexican drug trafficking organization communicated with Mendiola-Flores to facilitate pick-up and delivery further north. Mendiola-Flores then arranged a meeting at a local convenience store parking lot in McAllen to receive the drugs.
Lopez, 19, a U.S. citizen residing in Reynosa, Mexico, previously pleaded guilty and remains in custody pending his sentencing. At that time, he faces up to life in federal prison and a possible $10 million maximum fine.
Mendiola-Flores will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorneys Laura Garcia prosecuted the case.
Woodford County Man Sentenced for Armed Fentanyl and Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky. – A Versailles, Ky., man, Anthony Travon Garrett, 31, was sentenced on Wednesday, by Chief U.S. District Judge Danny Reeves, to 240 months in prison, for possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute fentanyl, and possession of a firearm in furtherance of drug trafficking.
According to his plea agreement, on March 30, 2022, law enforcement arranged a controlled purchase of approximately two pounds of methamphetamine and one ounce of fentanyl, to be delivered by Garrett. He was approached by law enforcement and was found in possession of the drugs and also found in possession of a loaded firearm, under the driver’s seat of his vehicle. Three additional firearms, pressed fentanyl pills, a fentanyl press, digital scales, and additional drug trafficking paraphernalia were then discovered at a residence where Garrett resided.
Under federal law, Garrett must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The investigation was conducted by the DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Roger West prosecuting the case on behalf of the United States.
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Wilkes-Barre Man Sentenced to 10 Years’ Imprisonment on Drug Trafficking ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Emile Occean, age 38, of Wilkes-Barre, Pennsylvania, was sentenced to 120 months’ imprisonment by United Sates District Court Judge Malachy Mannion for distributing methamphetamine.
According to United States Attorney Gerard M. Karam, Occean distributed methamphetamine in Luzerne County on March 31, 2022, and April 12, 2022. Occean was deemed to be a career offender for sentencing purposes because he had two prior drug distribution convictions, two robbery convictions and a burglary conviction in his prior record.
The case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Wichita bookkeeper sentenced for wire fraudRead the Press Release
WICHITA, KAN. – A Kansas man was sentenced to 18 months in prison for embezzling tens of thousands of dollars from his former employer.
According to court documents, Jason Matthew Pennington, 52, of Wichita pleaded guilty to one count of wire fraud.
Pennington worked at an animal hospital in Derby, Kansas, as a bookkeeper and office assistant. Because of his position, Pennington had access to the company’s financial records and payroll system. In July 2020, he embezzled approximately $41,000 by making unauthorized wire transfers from the company’s payroll system to his personal bank accounts. As part of his plea agreement, Pennington agreed to pay full restitution to the animal hospital.
The Federal Bureau of Investigation (FBI) investigated the case.
Assistant U.S. Attorneys Lanny Welch and Aaron Smith prosecuted the case.
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Warwick Man Sentenced to 10 Years in Federal Prison for Attempting to Entice a Minor to Engage in Illicit Sexual ActivityRead the Press Release
PROVIDENCE – A Warwick man who admitted that he attempted to entice a minor boy he communicated with online to engage in illicit sexual activity was sentenced today to 10 years in federal prison, announced United States Attorney Zachary A. Cunha.
Richard Senecal, 64, previously admitted to a federal judge that in April 2022, he engaged in a series of sexually explicit online communications with an individual he believed to be a 14-year-old boy. Senecal sent sexually explicit images and suggested sharing drugs, including methamphetamine, with the boy, and made arrangements to meet in Warwick to engage in sex with the boy. According to information presented to the court, that conduct occurred only months after Senecal was released on bail after being arrested in October 2021 for attempting to solicit a different 14-year-old boy for sex.
In both instances, the individuals that Senecal thought were 14-year-old boys were, in fact, members of the Rhode Island State Police Internet Crimes Against Children (ICAC) Task Force.
Senecal pled guilty on February 28, 2024, to attempted inducement of a minor to engage in illicit sexual activity. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 120 months in federal prison to be followed by eight years of supervised release. Senecal will be required to register as a sex offender.
The case was prosecuted by Assistant U.S. Attorneys John P. McAdams and Julie M. White.
The matter was investigated by the Rhode Island State Police ICAC Task Force and Homeland Security Investigations.
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United States Attorney's Office for the Eastern District of Tennessee Recognizes National Police WeekRead the Press Release
KNOXVILLE, Tenn. In honor of National Police Week, U.S. Attorney Francis M. Hamilton III recognizes the service and sacrifice of federal, state, and local law enforcement. This year, the National Police Week is observed from Saturday, May 11 through Friday, May 17. During this week, communities across the United States will honor and remember those law enforcement officers who made the ultimate sacrifice, as well as the family members, friends, and fellow officers left behind.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
This year, the names of more than 280 officers killed in the line of duty are being added to the National Law Enforcement Officers Memorial in Washington, DC. These 282 officers include 118 officers who were killed during 2023, plus 164 officers who died in previous years, but whose stories of sacrifice had been lost to history until now. For more information, go to https://nleomf.org.
For more information about National Police Week, please visit https://nleomf.org/policeweek.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
United States Attorney for the District of Colorado Cole Finegan to Step DownRead the Press Release
United States Attorney Cole Finegan announced today that he has submitted his resignation to President Joe Biden effective at 11:59 p.m. on May 31, 2024. President Biden appointed Mr. Finegan and he was confirmed by the United States Senate, taking the oath of office on December 1, 2021.
“I will be forever grateful for the opportunity to serve as the United States Attorney for the District of Colorado,” said Mr. Finegan. “I am equally thankful to the career attorneys and professional staff who work every day to help keep our citizens safe, to make sure that the rule of law is applied equally, and to protect the civil rights of every citizen. We are fortunate to have these outstanding public servants in our state. Serving the people of Colorado alongside them will always remain one of the most significant experiences of my life.”
As United States Attorney, Finegan was responsible for overseeing the work of the U.S. Attorney’s Office for the District of Colorado. The office represents the United States in virtually every court matter, criminal or civil, in the U.S. District Court for the District of Colorado and in cases from that Court before the U.S. Court of Appeals for the Tenth Circuit.
During his years in office, U.S. Attorney Finegan focused his efforts, and those of his team, on multiple challenges and opportunities.
Commitment to Partnerships
As a former City Attorney of Denver, Finegan recognized that there could be unique ways to partner with local and state law enforcement to prosecute the most violent criminals in our communities. After meeting with leaders in Denver and Aurora, those cities provided and funded a total of five attorneys who were appointed as federal prosecutors (Special Assistant U.S. Attorneys) to handle violent crimes at the federal level. The U.S. Attorney’s Office also partnered successfully with the District Attorney’s Office in Mesa County and the Rocky Mountain High Intensity Drug Trafficking Area to add a Special Assistant U.S. Attorney to prosecute drug crimes in Grand Junction.
Under Mr. Finegan’s direction, the U.S. Attorney’s Office for the District of Colorado revived the then dormant Protecting Houses of Worship seminars across Colorado. These seminars teach members of faith communities ways to battle against hate crimes and possible acts of terrorism, and work to foster better communication and relationships within local communities and with law enforcement. During USA Finegan’s tenure, hundreds of faith community leaders attended these seminars across Colorado and engaged with local, state, and federal law enforcement leaders.
Prosecutions of Violent Offenders
U.S. Attorney Finegan and his team partnered to lead multiple prosecutions of those who bring drugs, including the deadly scourge of fentanyl, into our communities along with illegal firearms and ammunition. Among its successes, the office, under Mr. Finegan, secured a life sentence for a notorious drug dealer who distributed fentanyl that killed users in 2023. The office was also successful in prosecutions related to violent crime and guns in Denver, Colorado Springs, and Pueblo.
Other high profile criminal cases during Finegan’s tenure included the conviction of a dentist who murdered his wife while in Zambia, a guilty plea from a government employee who attempted to sell classified information to a foreign government, and a guilty plea to federal hate crimes by the person who killed five people and injured 19 others at Club Q in Colorado Springs.
Civil Rights, Fraud, and Public Lands
The Civil Section of the office remains notably innovative and successful in protecting civil rights of Coloradans, recovering monies lost due to fraud, and pursuing other misconduct against the United States.
Under Mr. Finegan, the Civil Section of the U.S. Attorney’s Office protected civil rights for Coloradans through settlements with multiple law enforcement agencies and other businesses that required them to provide more and higher-quality services to people with various disabilities and who speak different languages.
In 2024, the office resolved a False Claims Act Case with two farmers in southeast Colorado requiring them to pay over $6.5 million back to the United States to resolve claims that they defrauded federal crop insurance programs by tampering with rain gauges. In a parallel criminal case, those farmers were also sentenced to federal prison terms.
On the Western Slope, the office negotiated a creative, groundbreaking settlement between the United States and the Durango & Silverton Narrow Gauge Railroad that recovered $20 million for damages incurred in the catastrophic Colorado wildland fire known as the “416 Fire.” The settlement also allowed the historic railroad to keep operating, but also to modernize its equipment and create a compensation fund to guard against future fires.
Economic Crimes, Fraud, and Asset Recovery
Aggressively building upon a task force established to investigate COVID-19 Fraud, the U.S. Attorney’s Office has seized over $1 billion in Economic Injury Disaster Loans that were stolen and over $25 million in misused Colorado Unemployment Insurance funds.
During Mr. Finegan’s time as U.S. Attorney, the office has also added additional prosecutors to continue recovering COVID-19 relief funds stolen from taxpayers.
Challenges and Opportunities
U.S. Attorney Finegan began his tenure during the COVID-19 pandemic and worked closely with his team to steer the office through the constantly changing environment, while also seeking to rebuild community connections and partnership.
In managing the U.S. Attorney’s Office, Mr. Finegan has worked diligently to guide the organization through multiple budget crises, including the substantial reductions by Congress in funding U.S. Attorneys’ Offices nationwide in FY2024. Despite these shifts in funding, the U.S. Attorney’s Office for Colorado remains well staffed and well prepared for the future.
Building upon his past experiences at all levels of government, Mr. Finegan served as a member of the Attorney General’s Advisory Committee. The Committee is a small, select group of U.S. Attorneys who advise the Attorney General on the many challenges that confront the Department of Justice every day.
Mr. Finegan plans to return to the private sector.
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United States Attorney Carla Freedman Recognizes Police Week and Honors Fallen Law Enforcement OfficersRead the Press Release
SYRACUSE, NEW YORK –In honor of National Police Week, U.S. Attorney for the Northern District of New York Carla Freedman recognizes the service and sacrifice of federal, state, local, and tribal law enforcement officers. The week will be observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“Police Week provides time to reflect on the difficult, dangerous, and absolutely vital work that federal, state, local, and tribal law enforcement officers do 24-hours a day, 365-days a year. They serve to make us safe and free despite the inherent risks they face when they report for duty,” said Carla Freedman, United States Attorney for the Northern District of New York. “This year we especially acknowledge their courage and sacrifice as we still grieve the deaths of Syracuse Police Officer Michael Jensen and Onondaga County Sheriff’s Lieutenant Michael Hoosock, who died on April 14th exchanging fire with a gunman in Salina, New York. Their loss reminds us that upholding the law, protecting our communities, and seeking justice are not abstract ideals, but real things that the men and women of law enforcement dedicate themselves to every day and night.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
U.S. Attorney’s Office Recognizes the Service and Sacrifice of Law Enforcement During National Police WeekRead the Press Release
Louisville, KY - In honor of National Police Week, the U.S. Attorney’s Office for the Western District of Kentucky recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement. National Police Week is observed Saturday, May 11 through Friday, May 17, 2024.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty, and commitment to keeping our communities safe.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
“Every day, our law enforcement partners across the Western District of Kentucky put everything on the line to protect and serve our communities. Please join our office in honoring these courageous men and women as we express our heartfelt gratitude for their service. Especially during this National Police Week, we pause to remember those officers that we have lost and extend our deepest condolences to their families, friends, and fellow officers left behind. Their commitment and sacrifice will never be forgotten,” said U.S. Attorney Michael A. Bennett.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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U.S. Attorney Will Thompson Recognizes National Police Week with Memorial Ceremony and Grant Award VisitRead the Press Release
CHARLESTON, W.Va. – In honor of National Police Week, United States Attorney Will Thompson is recognizing the service and sacrifice of federal, state and local law enforcement.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
In the Southern District of West Virginia, Thompson participated in a wreath-laying and awards ceremony honoring law enforcement at Parkersburg City Hall on Monday, May 13, 2024. Thompson was also the event’s guest speaker.
“Law enforcement represents the community,” Thompson said. “They’re part of the community. They’re the first call when anyone in the community is in trouble. Their jobs are not easy jobs. The fact that the community came out in such strong numbers today is an incredible display of support.”
On Tuesday, May 14, 2024, Thompson joined with Bluefield Police Chief D. M. Dillow Jr. and other community partners to celebrate a $450,000 U.S. Department of Justice grant awarded to the City of Bluefield. The grant was awarded through DOJ’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) and its Building Local Continuums of Care to Support Youth Success initiative. Its funding will help strengthen The Wade Center, Camp Mariposa of Southern West Virginia, and other youth-serving programs to expand after-school, summer learning, and enrichment opportunities for Mercer County young people.
The Bluefield Police Department and the nonprofit Community Connections Inc. are active partners of The Wade Center as it provides educational, mentoring and other services to youth at risk of becoming involved in the juvenile justice system.
“This is an excellent example of how an ounce of prevention is worth a pound of cure,” Thompson said. “The benefit to the community is incredible and National Police Week offers a great opportunity to highlight the role of our law enforcement partners in such outreach initiatives.”
This year’s National Police Week is observed from Saturday, May 11 through Friday, May 17, 2024. In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
The names of 282 officers killed in the line of duty were added to the National Law Enforcement Officers Memorial in 2024. On Monday, May 13, 2024, those names were read during the 36th Annual Candlelight Vigil held on the National Mall in Washington, D.C. The names include that of West Virginia State Police Sgt. Cory Steven Maynard and West Virginia Division of Probation Services Officer Steven Paul Gitlin II.
To view a recording of the livestream of this event, visit https://www.youtube.com/live/_AJEOg_3npQ?si=18ApdMCWLRVQmCLx.
The complete 2024 Roll Call of Heroes is available at https://nleomf.org/memorial/facts-figures/roll-call-of-heroes/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney Trina A. Higgins Recognizes Police Week in the District of UtahRead the Press Release
SALT LAKE, Utah – In honor of National Police Week, U.S. Attorney Trina A. Higgins will recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. The week is observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“This week in the District of Utah, family, friends and the community said their final goodbyes to Santaquin Police Sgt. Bill Hooser who was killed in the line of duty over one week ago. As we honor National Police Week, we recognize law enforcement who paid the ultimate sacrifice, like Sgt. Hooser, to serve and protect our communities at all costs. We thank all law enforcement for their dedication and commitment to public safety.”
On Wednesday, May 15, 2024, U.S. Attorney Trina Higgins will recognize federal, state, local and tribal law enforcement with United States Attorney’s Awards for Law Enforcement for their dedicated work in seeking justice in federal cases prosecuted in the District of Utah.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
U.S. Attorney Romero Recognizes Police Week, Speaking at Federal Wreath-Laying Ceremony and Co-Hosting Trauma Training Session for Law EnforcementRead the Press Release
PHILADELPHIA — In honor of National Police Week, U.S. Attorney Jacqueline C. Romero is recognizing the service and sacrifice of federal, state, local, and Tribal law enforcement.
This year, National Police Week runs from Saturday, May 11, through Friday, May 17, with today, May 15, designated as Peace Officers Memorial Day.
On Tuesday, May 14, U.S. Attorney Romero attended and spoke at a wreath-laying ceremony where federal partners honored fallen law enforcement officers. Today, her office is co-hosting a webinar for law enforcement professionals on preventing and navigating secondary traumatic stress, which can result from difficult situations frequently encountered on the job.
“Working as a sworn law enforcement officer means stepping up, and showing up, in situations that often walk a tightrope between difficult and dangerous. It means constantly facing the unknown, and putting your life on the line for the public good,” said U.S. Attorney Romero. “Our nation’s fallen officers, who chose to pursue public service at almost unbearable cost, deserve our eternal remembrance and wholehearted thanks.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
U.S. Attorney Kavanaugh Recognizes Police Week, Attends Fallen Officer Memorial in CharlottesvilleRead the Press Release
CHARLOTTESVILLE, Va.— In honor of National Police Week, U.S. Attorney Christopher R. Kavanaugh will recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“Each year during Police Week we gather together as a law enforcement community to pay tribute to those men and women who have sacrificed their lives keeping our communities safe,” United States Attorney Kavanaugh said today. “Police work has never been more complex and we have never been more thankful each and every day to those who take the oath and walk a beat not for glory but rather a sense a duty.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
Throughout the week, United States Attorney Kavanaugh will be attending memorial services throughout the Western District of Virginia honoring fallen officers.
On Monday, United States Attorney Kavanaugh attended a fallen officers memorial on the downtown mall in Charlottesville, Virginia. At that ceremony, officers from the City of Charlottesville Police Department and the Virginia State Police were honored for giving their lives during service to their communities.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org
U.S. Attorney Jason M. Frierson Recognizes National Police WeekRead the Press Release
LAS VEGAS – In honor of National Police Week, U.S. Attorney Jason M. Frierson joins U.S. Attorneys’ Offices across the country to recognize the service and sacrifice of federal, state, local, and Tribal law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“During National Police Week, we honor the service and sacrifice of the brave men and women on the frontlines of public safety,” said United States Attorney Jason M. Frierson for the District of Nevada. “We express gratitude to our state, local, federal, and Tribal law enforcement partners for their courage and dedication to the safety and protection of our communities.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
Earlier this month, U.S. Attorney Frierson paid tribute to those who have lost their lives in the line of duty. He attended the 27th Annual Nevada Law Enforcement Officers Memorial in Carson City, the 37th Annual James D. Hoff Peace Officer Memorial in Reno, and the 2024 FBI Memorial Ceremony in Las Vegas.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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U.S. Attorney Jaime Esparza Recognizes National Police WeekRead the Press Release
SAN ANTONIO – In honor of National Police Week, U.S. Attorney Jaime Esparza recognizes the service and sacrifice of federal, state, local, and tribal law enforcement. The week is observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“As U.S. Attorney for the Western District of Texas, I am grateful to our federal, state, local and tribal law enforcement partners for their daily commitment to protecting our citizens and upholding the rule of law,” said Esparza. “We see in our communities across the United States each and every day, law enforcement officers place their lives on the line to prioritize the safety and security of our neighbors, our friends, and our loved ones.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
In the past year, two law enforcement officers lost their lives in the line of duty while serving in the Western District of Texas. Sergeant Joshua Clouse, a Cameron Police Officer and U.S. Army veteran, was fatally shot by a subject while executing a search warrant in Cameron, south of Waco in May 2023. In November, Austin Police Officer Jorge Pastore was killed, and another officer injured during a SWAT standoff with a violent assailant. Pastore had previously been an Emergency Medical Technician (EMT) in Parkland, Florida, and responded to the shooting at Marjory Stoneman Douglas High School in 2018. This week, we remember and honor their sacrifice along with the sacrifice of their families and of too many law enforcement officers before them. Every day, we must be grateful for the commitment of our law enforcement officers to protecting our citizenry, and for their selfless service to our communities.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 who have been added to the wall at the National Law Enforcement Officers Memorial were read during a Candlelight Vigil. To view a recording of the livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org.
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U.S. Attorney Charges Man for Stealing Police Firearm and Firing at Lansing Police Officer During ArrestRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Andrial Ched Ortiz, 29, of Lansing, was charged by indictment with being a felon in possession of firearms. In the course of his arrest on April 10, 2024, Ortiz repeatedly tried to steal police weapons from Lansing Police Department officers. During his struggle, Ortiz possessed a Glock 43X, which he fired, injuring an LPD police officer working to arrest him.
“Today’s charge reflects our continued efforts to keep the streets safe from the danger presented by those who cannot lawfully possess firearms,” said U.S. Attorney Mark Totten. “I’m thankful that the officers on scene were able to minimize the damage caused and that everyone is safe.”
The indictment alleges that Ortiz possessed two firearms on April 10, 2024, when he could not lawfully do so following a previous felony conviction. His initial appearance in the Western District of Michigan is set for Monday, May 20, 2024.
Gun violence is an acute problem across the United States. According to the Centers for Disease Control and Prevention, the U.S. firearm homicide rate in 2021 was the highest documented since 1993. While the numbers have slightly declined since 2021, they remain high. Resources and information on the safe storage of firearms can be found by reviewing the U.S. Department of Justice Safe Storage of Firearms guide, Centers for Disease Control and Prevention fact sheet, and the Bureau of Alcohol, Tobacco, Firearms and Explosives pamphlet. Anyone who possesses a gun must follow all local, state, and federal laws.
This case was investigated by the Lansing Police Department, Michigan State Police, and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is part of Project Safe Neighborhoods (PSN), a program bringing together federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
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U.S. Attorney Announces $2.5 Million False Claims Act Settlement with Diagnostic Testing Facility for Paying Kickbacks to Physicians for Patient ReferralsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the U.S. has settled a civil fraud lawsuit against Balance Diagnostics USA, LLC (“BALANCE”), a diagnostic testing facility based in Cedarhurst, New York, for paying kickbacks to physicians and their medical practices in the form of sham “rent payments” to secure patient referrals in violation of the federal Anti-Kickback Statute (the “AKS”). Specifically, the settlement resolves claims that from January 2009 through December 2019, BALANCE paid hundreds of thousands of dollars to over 100 physicians and their practices in the New York City area (the “Providers”) to induce them to refer patients for diagnostic testing services performed by BALANCE staff at the Providers’ offices. The U.S. alleges that the so-called rent payments were based entirely upon the number of patient referrals and, in many instances, were well above the fair market rental value of the leased office space.
Under the settlement approved yesterday by U.S. District Judge Vernon S. Broderick, BALANCE will pay the U.S. $1,725,850 and has admitted and accepted responsibility for conduct alleged in the U.S. Complaint, including that BALANCE determined the amount of rent to be paid pursuant to the subleases by taking into account the anticipated volume or value of the patients referred. BALANCE has also agreed to pay the State of New York $774,150 to resolve state law claims, for a total combined recovery of $2.5 million. BALANCE has executed judgments in favor of the U.S. for $4,280,108, and in favor of the State of New York for $1,919,892, for a total combined amount of $6.2 million, which may be enforced if BALANCE fails to make the payments required under the settlements.
U.S. Attorney Damian Williams said: “The Anti-Kickback Statute is meant to ensure that medical decision-making is driven by what is best for the patient, and never by what is most profitable. Balance entered into sham office rental arrangements with scores of doctors in the New York City area, paying them to refer patients to Balance for diagnostic tests, pressuring them to meet referral expectations, and terminating the arrangements when referral rates were lower than expected. These are precisely the kind of business arrangements that the statute was enacted to prevent. This Office will continue to scrutinize such arrangements and hold accountable those providers whose dealings violate the law.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Violations of the Anti-Kickback Statute, as demonstrated by this lawsuit and settlement, can induce diagnostic testing referrals that are compromised by profit-making considerations. 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.”
As alleged in the U.S. Complaint:
BALANCE is a diagnostic testing facility based in Cedarhurst, New York, which provides on-site mobile diagnostic testing services, such as video steganography (used to diagnose balance disorders) and ultrasound procedures. During the period from 2009 through 2019, BALANCE orchestrated a kickback scheme designed to direct patients to BALANCE for diagnostic testing services. BALANCE entered into sham office rental arrangements with over 100 Providers, who referred thousands of patients to BALANCE for diagnostic testing services that were reimbursed by Medicare and Medicaid.
BALANCE routinely sent employees to visit physicians and medical practices to persuade them to enter these kickback arrangements. BALANCE representatives inquired about the volume of patients the Providers anticipated referring for diagnostic testing services each month. BALANCE and the Providers then used these anticipated referral rates to negotiate the amount BALANCE would pay in rent to the Providers each month. BALANCE characterized the payments to the Providers as rent payments because it knew that it was illegal to make payments in exchange for referrals and wanted to conceal the true purpose of the payments.
BALANCE’s agreements with the Providers typically provided for the use of an exam room by BALANCE personnel, as well as for the use of basic equipment (e.g., a telephone, fax machine, a computer) and administrative staff to assist with patient flow and recordkeeping. In exchange, BALANCE agreed to pay monthly rent, which ranged from one to several thousand dollars per month. In many cases, the monthly payments exceeded the fair market value for BALANCE’s limited use of the rented space, equipment, and services. The sole factor BALANCE took into account when setting the monthly rent was the expected value of the patient referrals the Provider would generate.
Many of the agreements misrepresented key terms, such as the square footage of the rented space and the number of days per month BALANCE would use the space. In some instances, BALANCE did not even enter into written lease agreement with the Providers.
As part of the settlement, BALANCE admitted, acknowledged, and accepted responsibility for the following conduct:
- In a number of instances, BALANCE and the Providers determined the amount of rent to be paid pursuant to the sublease by taking into account the anticipated volume or value of the patients referred to BALANCE. Frequently, BALNCE representatives reached out to the Providers about leasing office space from them, and if the Providers were interested, the BALANCE representatives inquired about the volume of patient referrals for diagnostic testing services that BALANCE could expect to receive in a given month. The BALANCE representatives and the Providers then negotiated the monthly rent amount by taking into account the anticipated volume and/or value of such referrals. The greater the number of patients the Providers indicated they could refer to BALANCE for diagnostic testing service each month, the greater the monthly amount BALANCE agreed to pay the Providers.
- BALANCE typically performed no meaningful analysis to determine the fair market value of the subleased premises or to verify that the agreed-upon monthly rent payments were consistent with fair market value. In a number of instances, the payments made to the Providers substantially exceeded the fair market value of the rented space.
- BALANCE representatives monitored the number of patient referrals received each month from the Provider. BALANCE took a number of steps to address situations where the volume of patient referrals was meaningfully less than that which BALANCE had anticipated when setting the monthly rent amount. For example, BALANCE representatives routinely reached out to Providers to press them to achieve the expected patient referral rates. Sometimes, BALANCE representatives secured commitments from Providers to increase the number of patients they would refer for diagnostic testing services each month. In other instances, when there were fewer referrals or BALANCE did not use the space because of low patient referrals, BALANCE paid the Providers less than the amount specified in the sublease and/or varied its payment (between the amount specified in the sublease and a lesser amount) based on the actual patient referral volume. In other instances, BALANCE representatives renegotiated the rent amount downward or terminated the sublease arrangement entirely.
In connection with the filing of the lawsuit and the settlement, the U.S. Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act.
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Mr. Williams thanked HHS-OIG and the New York Medicaid Fraud Control Unit for their assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Pierre G. Armand is in charge of the case.
U.s. Attorney Prim Escalona Recognizes Police WeekRead the Press Release
BIRMINGHAM, Ala. — In honor of National Police Week, U.S. Attorney Prim Escalona recognizes the service and sacrifice of federal, state, and local law enforcement. The week will be observed Saturday, May 11 through Friday, May 17, 2024.
“As our country recognizes National Police Week, the Justice Department joins families and communities in remembering the members of the law enforcement community who made the ultimate sacrifice protecting the public,” said Attorney General Merrick Garland. “Policing is difficult and dangerous, yet time and time again, law enforcement officers answer the call, showing up for their communities when they are needed the most. Their devotion to duty is matched only by that of their loved ones who make daily sacrifices to support them. The Justice Department is committed to doing everything in our power to help provide our law enforcement partners with the resources they need to carry out their noble work on behalf of the public.”
“During Police Week, we honor the brave men and women in law enforcement for their selfless sacrifice to protect the citizens of the Northern District of Alabama,” said U.S. Attorney Escalona. “I extend my sincere gratitude for your courage and dedication.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe.
U.S. Attorney Escalona will attend the 9th Alabama Law Enforcement Memorial Service on May 17, 2024, at 11:00 am in Centennial Memorial Park in Anniston.
On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 were read during a Candlelight Vigil. Those officers’ names have been added to the wall at the National Law Enforcement Officers Memorial. A recording of the livestream of this event can be watched at https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/.
To learn more about National Police Week and the candlelight vigil, please visit www.policeweek.org.
Two USPS employees indicted in separate theft casesRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned separate indictments charging two former employees of the U.S. Postal service with stealing the contents of mail.
According to court documents, Alexa Garner-Cavender, 36, of Wichita is charged with four counts of theft of mail by a postal employee. Garner-Cavender is accused of stealing checks from the mail on multiple occasions in 2023 totaling approximately $4,800.
In a separate, unrelated case, Dylan Ellis, 30, of Andale is charged with one count of delay or destruction of mail by postal employee. Between January and February of 2024, Ellis is accused stealing U.S. currency (cash) from the mail.
The U.S. Postal Service – Office of Inspector General is investigating the cases.
Assistant U.S. Attorney Aaron Smith is prosecuting the cases.
OTHER INDICTMENTS
Carletos Amaro, 26, of Wichita was indicted on one count of aiming a laser pointer at an aircraft. The Federal Bureau of Investigation (FBI) is investigating the case. Assistant U.S. Attorney Kari Burks is prosecuting the case.
Jesus Castelo-Roman, 30, of Wichita was indicted on one count of possession with intent to distribute methamphetamine, one count of possession with intent to distribute cocaine, one count of possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by an illegal alien. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Ola Odeyemi is prosecuting the case.
Matias Pascual, 24, of Salina was indicted on two counts of assaulting, resisting, or impeding certain officers or employees. Homeland Security Investigations (HSI) is investigating the case. Assistant U.S. Attorney Jason Hart 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.
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Two Men Charged with Trafficking in Stolen Human RemainsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Angelo Pereyra, age 39, of Wichita, Kansas, and Andrew Ensanian, age 38, of Montgomery, Pennsylvania, were charged today by Criminal Information with interstate transport of stolen goods.
According to United States Attorney Gerard M. Karam, the information alleges that between 2018 and 2022, Pereyra and Ensanian caused stolen human remains to be transported between Kansas and Pennsylvania.
These charges resulted from a multi-year investigation into the nationwide trafficking of stolen human remains. Multiple defendants have been charged previously in the Middle District of Pennsylvania, and three have thus far entered guilty pleas. An additional defendant has been charged and convicted in Arkansas. None have yet been sentenced.
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
The maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Two Brothers Arrested for Attacking Ethereum Blockchain and Stealing $25M in CryptocurrencyRead the Press Release
An indictment was unsealed today charging Anton Peraire-Bueno, 24, of Boston, and James Pepaire-Bueno, 28, of New York, with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges in the indictment arise from an alleged novel scheme by the defendants to exploit the very integrity of the Ethereum blockchain to fraudulently obtain approximately $25 million worth of cryptocurrency within approximately 12 seconds. Anton Peraire-Bueno and James Peraire-Bueno were arrested yesterday in Boston and New York, respectively, and will be presented this afternoon before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York.
“As alleged in today’s indictment, the Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds,” said Deputy Attorney General Lisa Monaco. “Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its kind wire fraud and money laundering scheme. As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.”
“Today, my office indicted two brothers — Anton Peraire-Bueno and James Peraire-Bueno — for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all stemming from their alleged scheme to exploit the Ethereum blockchain and to obtain about $25 million worth of cryptocurrency from it,” said U.S. Attorney Damian Williams for the Southern District of New York. “As we allege, the defendants’ scheme calls the very integrity of the blockchain into question. The brothers, who studied computer science and math at one of the most prestigious universities in the world, allegedly used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe. And once they put their plan into action, their heist only took 12 seconds to complete. This alleged scheme was novel and has never before been charged. But as the indictment makes clear, no matter how sophisticated the fraud or how new the techniques used to accomplish it, the career prosecutors of this office will be relentless in pursuing people who attack the integrity of all financial systems.”
“These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims,” said Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office. “In this case, IRS-CI New York’s Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ole-fashioned investigative work, on and off the blockchain.”
As alleged in the indictment, Anton Peraire-Bueno and James Pepaire-Bueno are brothers who studied mathematics and computer science at one of the most prestigious universities in the country. Using the specialized skills developed during their education, as well as their expertise in cryptocurrency trading, Anton Peraire-Bueno and James Pepaire-Bueno exploited the very integrity of the Ethereum blockchain in order to fraudulently obtain approximately $25 million worth of cryptocurrency from victim cryptocurrency traders (the “Exploit”). Through the Exploit, which is believed to be the very first of its kind, Anton Peraire-Bueno and James Pepaire-Bueno manipulated and tampered with the process and protocols by which transactions are validated and added to the Ethereum blockchain. In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims’ cryptocurrency. Once the defendants stole their victims’ cryptocurrency, they rejected requests to return the stolen cryptocurrency and took numerous steps to hide their ill-gotten gains.
Anton Peraire-Bueno and James Pepaire-Bueno meticulously planned the Exploit over the course of several months. Among other things, they learned the trading behaviors of the victim traders whose cryptocurrency they ultimately stole. As they planned the Exploit, they also took numerous steps to conceal their identities and lay the groundwork to conceal the stolen proceeds, including by setting up shell companies and using multiple private cryptocurrency addresses and foreign cryptocurrency exchanges. After the Exploit, the defendants transferred the stolen cryptocurrency through a series of transactions designed to conceal the source and ownership of the stolen funds.
Throughout the planning, execution, and aftermath of the Exploit, Anton Peraire-Bueno and James Pepaire-Bueno also searched online for information about, among other things, how to carry out the Exploit, ways to conceal their involvement in the Exploit, cryptocurrency exchanges with limited “know your customer” procedures that they could use to launder their criminal proceeds, attorneys with expertise in cryptocurrency cases, extradition procedures, and the very crimes charged in the indictment.
If convicted, Anton Peraire-Bueno and James Pepaire-Bueno each face a maximum penalty of 20 years in prison for each count.
IRS-CI New York’s Cyber Investigations Unit investigated the case, with the assistance of the U.S. Customs and Border Protection and New York City Police Department.
Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla for the Southern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Brothers Arrested for Attacking the Ethereum Blockchain and Stealing $25 Million in CryptocurrencyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Lisa Monaco, the Deputy Attorney General of the United States; and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of an Indictment charging ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. The charges in the Indictment arise from an alleged novel scheme by the defendants to exploit the very integrity of the Ethereum blockchain to fraudulently obtain approximately $25 million worth of cryptocurrency within approximately 12 seconds. ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO were arrested yesterday in Boston, Massachusetts, and New York, New York, respectively, and will be presented this afternoon before U.S. Magistrate Judge Paul G. Levenson for the District of Massachusetts and U.S. Magistrate Judge Valerie Figueredo for the Southern District of New York.
U.S. Attorney Damian Williams said: “Today, my Office indicted two brothers—Anton Peraire-Bueno and James Peraire-Bueno—for conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, all stemming from their alleged scheme to exploit the Ethereum blockchain and to obtain about $25 million worth of cryptocurrency from it. As we allege, the defendants’ scheme calls the very integrity of the blockchain into question. The brothers, who studied computer science and math at one of the most prestigious universities in the world, allegedly used their specialized skills and education to tamper with and manipulate the protocols relied upon by millions of Ethereum users across the globe. And once they put their plan into action, their heist only took 12 seconds to complete. This alleged scheme was novel and has never before been charged. But as the Indictment makes clear, no matter how sophisticated the fraud or how new the techniques used to accomplish it, the career prosecutors of this Office will be relentless in pursuing people who attack the integrity of all financial systems.”
Deputy Attorney General Lisa Monaco said: “As alleged in today’s indictment, the Peraire-Bueno brothers stole $25 million in Ethereum cryptocurrency through a technologically sophisticated, cutting-edge scheme they plotted for months and executed in seconds. Unfortunately for the defendants, their alleged crimes were no match for Department of Justice prosecutors and IRS agents, who unraveled this first-of-its kind wire fraud and money laundering scheme. As cryptocurrency markets continue to evolve, the Department will continue to root out fraud, support victims, and restore confidence to these markets.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “These brothers allegedly committed a first-of-its-kind manipulation of the Ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims. In this case, IRS-CI New York’s Cyber Unit simply followed the money. Regardless of the complexity of the case, we continue to lead the effort in financial criminal investigations with cutting-edge technology and good-ole-fashioned investigative work, on and off the blockchain.”
As alleged in the Indictment:[1]
ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO are brothers who studied mathematics and computer science at one of the most prestigious universities in the country. Using the specialized skills developed during their education, as well as their expertise in cryptocurrency trading, ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO exploited the very integrity of the Ethereum blockchain in order to fraudulently obtain approximately $25 million worth of cryptocurrency from victim cryptocurrency traders (the “Exploit”). Through the Exploit, which is believed to be the very first of its kind, ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO manipulated and tampered with the process and protocols by which transactions are validated and added to the Ethereum blockchain. In doing so, they fraudulently gained access to pending private transactions and used that access to alter certain transactions and obtain their victims’ cryptocurrency. Once the defendants stole their victims’ cryptocurrency, they rejected requests to return the stolen cryptocurrency and took numerous steps to hide their ill-gotten gains.
ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO meticulously planned the Exploit over the course of several months. Among other things, they learned the trading behaviors of the victim traders whose cryptocurrency they ultimately stole. As they planned the Exploit, they also took numerous steps to conceal their identities and lay the groundwork to conceal the stolen proceeds, including by setting up shell companies and using multiple private cryptocurrency addresses and foreign cryptocurrency exchanges. After the Exploit, the defendants transferred the stolen cryptocurrency through a series of transactions designed to conceal the source and ownership of the stolen funds.
Throughout the planning, execution, and aftermath of the Exploit, ANTON PERAIRE-BUENO and JAMES PERAIRE-BUENO also searched online for information about, among other things, how to carry out the Exploit, ways to conceal their involvement in the Exploit, cryptocurrency exchanges with limited “know your customer” procedures that they could use to launder their criminal proceeds, attorneys with expertise in cryptocurrency cases, extradition procedures, and the very crimes charged in this Indictment.
* * *
ANTON PERAIRE-BUENO, 24, of Boston, Massachusetts, and JAMES PERAIRE-BUENO, 28, of New York, New York, are charged with conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison.
The statutory maximum sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the investigative work of the IRS-CI New York’s Cyber Investigations Unit. Mr. Williams also acknowledged the assistance of the U.S. Customs and Border Protection and the New York City Police Department.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Rushmi Bhaskaran and Danielle Kudla are in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Tolland Strip Club Owner, Manager & Bouncer Charged in 12-Count IndictmentRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI), New England, Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, and Connecticut State Police Colonel Daniel Loughman today announced that a federal grand jury in Hartford has returned a 12-count indictment charging KENNETH DENNING, 67, of Holland, Massachusetts, JOSHUA BAKER, 41, of Willimantic, Connecticut, and WILLIAM MAYO, 41, of Manchester, Connecticut, with offenses stemming from the operation of the Electric Blue strip club in Tolland, Connecticut.
The indictment was returned yesterday and Denning, Baker, and Mayo were arrested today.
As alleged in the indictment, Denning owned and oversaw the operation of the Electric Blue strip club, which included the employment of dancers who performed nude dances and lap dances for customers. Baker was the club’s manager and bookkeeper, and Mayo was employed at the club as a bouncer and was primarily responsible for hiring dancers, many of whom were not legally authorized to live or work in the United States.
The indictment alleges that the Electric Blue had a semi-private “lap dance room” and “VIP rooms” where dancers regularly performed commercial sex acts for customers. As payment for commercial sex acts, customers would typically pay the club an entry fee for use of the lap dance room or one of the VIP rooms and then pay an additional fee directly to the dancer. In addition, the club collected cash through cover charges paid at the door and fees paid by dancers to perform at the club. Baker or another club employee would collect the cash received by the club, place the cash in envelopes noting the source of the cash, and then place the envelopes in a safe in Denning’s office. The defendants referred to this cash as “Kenny’s money,” and used this money to pay business expenses and fund Denning’s personal expenditures, including trips to casinos where Denning spent large sums of money.
The indictment also alleges that Denning and Baker provided false information to the club’s tax-return preparer in 2020, 2021, and 2022 by underreporting the gross receipts from the club and excluding income derived from commercial sex acts. As much as approximately $5.7 million in business receipts were not reported to the IRS, causing a tax underpayment of more than $2 million.
The indictment further alleges that Denning committed fraud by applying for and receiving an Economic Injury Disaster Loan (“EIDL”) during the COVID-19 pandemic by certifying that the business did not “present live performances of a prurient sexual nature.” Denning received a loan of approximately $150,000 in July 2020.
The indictment charges Denning, Baker, and Mayo with conspiracy to use an interstate facility to promote or facilitate prostitution, an offense that carries a maximum term of imprisonment of five years, and with unlawful employment of aliens, an offense that carries a maximum term of imprisonment of six months.
Denning and Baker are charged with conspiracy to file false tax returns, which carries a maximum term of imprisonment of five years, and with conspiracy to commit promotional and concealment money laundering, which carries a maximum term of imprisonment of 20 years.
Denning is charged with engaging in a monetary transaction with proceeds derived from prostitution, an offense that carries a maximum term of imprisonment of 10 years, related to a cash deposit of approximately $21,700 at the Mohegan Sun Casino. He is also charged with aiding and abetting the filing of a false tax return related to his personal tax return for the 2020 tax year, an offense that carries a maximum term of imprisonment of three years, and with willful failure to file his personal tax return for the 2021 tax year, an offense that carries a maximum term of imprisonment of one year. He is also charged with wire fraud in connection with his receipt of the EIDL loan, which carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation Division, the Connecticut State Police, the Connecticut Department of Consumer Protection – Liquor Control Division, and the Massachusetts State Police, with the assistance of the Willimantic Police Department and Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorneys Ross Weingarten and Robert S. Dearington.
If any employee/dancer at the Electric Blue has been a victim of the unlawful acts described in the indictment, please contact the U.S. Attorney’s Office Victim Advocate at [email protected] or 203-696-3039.