title: West Virginia Doctor Charged with Tax Fraud, Obstructing Justice

component: USAO - West Virginia, Northern

body_text: ELKINS - A doctor from Wheeling, West Virginia, has been indicted for failure to pay over nearly $2.5 million in payroll taxes. United States Attorney William Ihlenfeld announced that Nitesh Ratnakar, age 48, was indicted Wednesday on forty-one counts of tax fraud and one count of obstructing a federal grand jury investigation. Ratnakar owned and operated a gastroenterology practice and a medical equipment manufacturer in Elkins, West Virginia. He is alleged to have withheld payroll taxes from his employees’ paychecks and then failed to make all required payments to the Internal Revenue Service. Between 2018 and 2022, Ratnakar allegedly failed to pay over $2,419,560 in employee withholdings to the I.R.S. “We take tax fraud seriously because it affects all of us,” said U.S. Attorney Ihlenfeld. “As tax season kicks into high gear, this case is a reminder that being dishonest with the I.R.S. is never a good idea.” The indictment also charges Ratnakar with filing false tax returns in 2020, 2021, and 2022, and with causing false documents to be provided in response to a federal grand jury subpoena. The case is being prosecuted by Assistant U.S. Attorney Jarod Douglas. It was investigated by Internal Revenue Service Criminal Investigation. An indictment is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Attorney General Merrick B. Garland Designates Jonathan Mayer to Serve as the Justice Department’s First Chief Science and Technology Advisor and Chief AI Officer

component: Office of the Attorney General

body_text: Attorney General Merrick B. Garland announced today the designation of Jonathan Mayer as the Justice Department’s first Chief Science and Technology Advisor and Chief Artificial Intelligence (AI) Officer. “The Justice Department must keep pace with rapidly evolving scientific and technological developments in order to fulfill our mission to uphold the rule of law, keep our country safe, and protect civil rights,” said Attorney General Garland. “Jonathan’s expertise will be invaluable in ensuring that the entire Justice Department — including our law enforcement components, litigating components, grantmaking entities, and U.S. Attorneys’ Offices — is prepared for both the challenges and opportunities that new technologies present.” As the Chief Science and Technology Advisor, Mayer will advise the Attorney General and Justice Department leadership and collaborate with components across the Department on complex issues requiring technical expertise, including on matters relating to cybersecurity, artificial intelligence, and other areas of emerging technology. Mayer will also spearhead the Department’s technological capacity-building efforts, including by advising on recruiting technical talent to ensure the Department has the expertise and is equipped to meet the challenges ahead. Mayer will serve in the Justice Department’s Office of Legal Policy, which is developing a team of technical and policy experts in technology-related areas important to the Department’s responsibilities, including cybersecurity and AI. This team will advise leadership, as well as collaborate and coordinate with components across the Department and with federal partners on cutting-edge technological issues. Additionally, in accordance with the President’s Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence , Attorney General Garland designated Mayer as the Justice Department’s Chief AI Officer. In this role, he will work on intra-departmental and cross-agency efforts on AI and adjacent issues. He will also lead the Justice Department’s newly established Emerging Technology Board, which coordinates and governs AI and other emerging technologies across the Department. Mayer is an assistant professor at Princeton University’s Department of Computer Science and School of Public and International Affairs. His research has focused on the intersection of technology, policy, and law with an emphasis in criminal procedure, national security, and consumer protection. Mayer holds a Ph.D. in computer science from Stanford University and a J.D. from Stanford Law School. The mission of the Office of Legal Policy is to develop and implement the Justice Department’s significant policy initiatives, handle special projects that implicate the interests of multiple Department components, coordinate with other interested Department components and other Executive Branch agencies, and serve as the primary policy advisor to the Attorney General and the Deputy Attorney General.


title: Harlan County Man Sentenced to 178 Months  for Methamphetamine Trafficking

component: USAO - Kentucky, Eastern

body_text: LONDON, Ky. – A Cawood, Ky., man, Bethel Stewart, 61, was sentenced on Tuesday, by U.S. District Judge Robert Wier, to 178 months in prison, for possession with intent to distribute 50 grams or more of methamphetamine. According to his plea agreement, following community complaints of drug trafficking at Stewart’s residence, and a tip that he was in possession of a large quantity of methamphetamine, law enforcement began surveillance and observed traffic at the residence that was consistent with drug trafficking. Then, on January 19, 2022, law enforcement searched Stewart’s home, discovering approximately 300 grams of methamphetamine, which Stewart intended to distribute. Under federal law, Stewart 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; and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence. The investigation was conducted by the DEA. Assistant U.S. Attorney Jason Parman is prosecuting the case on behalf of the United States. — END —


title: Mobile Man Sentenced to 27 Months for Illegally Possessing Stolen Firearms Equipped with Machine Gun Conversion Devices

component: USAO - Alabama, Southern

body_text: MOBILE, AL – A Mobile, Alabama man was sentenced today to 27 months in prison for being unlawfully in possession of firearms. According to court documents, Charvez Green, 19, was convicted of being in possession of a Glock 45 and a Glock 19X. Each firearm was equipped with an illegal machinegun-conversion device, commonly referred to as a “Glock switch,” and both firearms had been stolen. At the time Green unlawfully possessed the firearms he was on bond for murder in Mobile County. Firearms experts examined and test fired Green’s illegally modified firearms, which operated as a fully automatic weapons and expelled multiple rounds of ammunition with a single pull of the trigger. Green admitted that he had never registered the machineguns in the National Firearms Registration and Transfer Record, as required by federal law. Today United States District Judge Callie V. S. Granade sentenced Green to 27 months in the custody of the Bureau of Prisons. The term of imprisonment will be followed by a 3 year term of supervised release. The federal sentence was imposed consecutively to any sentence to be later imposed in the state murder case. U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mobile Police Department investigated the case. Assistant U.S. Attorney Beth Stepan prosecuted the case on behalf of the United States.


title: Two Individuals Facing Federal Charges for Straw Purchasing Firearms

body_text: ELKINS, WEST VIRGINIA – Two people have been indicted on federal firearms charges by a Grand Jury sitting in Elkins, West Virginia. John Allen Shomo, age 52, of Coalton, West Virginia, was indicted for the straw purchase of a firearm and making a false statement in connection with the purchase of a firearm. According to court documents, Shomo bought a .40 caliber pistol from a licensed firearms dealer in Randolph County, stating on the forms that the firearm was for his personal use. Shomo purchased the firearm for an individual who was prohibited from possessing firearms due to a felony conviction. Stacy Lynn Cave, age 40, of Elkins, West Virginia, is charged with the straw purchase of a firearm and making a false statement in connection with the purchase of a firearm. According to the indictment, Cave falsified forms to purchase a .223 caliber rifle for an individual who was prohibited from possessing firearms due to a felony conviction. Assistant U.S. Attorney Stephen Warner is prosecuting the cases on behalf of the government. The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Mountain Region Drug Task Force. Indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Anderson Man Sentenced to over Fifteen Years in Federal Prison for Armed Robbery of Anderson Bank

component: Federal Bureau of Investigation (FBI)

body_text: INDIANAPOLIS- Raymond Johnson, 35, of Anderson, Indiana, has been sentenced to 184 months in federal prison after pleading guilty to bank robbery and discharging a firearm during a crime of violence. According to court documents, on September 23, 2021, around 4:20pm, Johnson entered a First Merchants Bank in Anderson, Indiana, armed with a handgun. Johnson immediately brandished his firearm, jumped onto the teller counter, ordered employees to the ground, and demanded money. Johnson also fired one shot into the teller cabinet. In total, Johnson left with $13,585 in cash. Johnson was arrested by Anderson Police Department Officers in the early morning of September 24 th . “This violent criminal didn’t just rob a bank of customer deposits, he robbed everyone inside the bank of their sense security and peace,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Gun crimes have a negative impact on our entire community, and the sentence imposed today demonstrates that this conduct simply not be tolerated. The people of Anderson are safer with this defendant off of our streets, thanks to the hard work of the FBI, the Anderson Police Department, and our federal prosecutors.” FBI and the Anderson Police Department investigated this case. The sentence was imposed by U.S. District Court Judge Matthew P. Brookman, Judge Brookman also ordered Johnson to be supervised by the U.S. Probation Office for 5 years following his release from federal prison and pay back the $13,585 in full. U.S. Attorney Myers thanked Assistant United States Attorneys Jayson W. McGrath and Pam S. Domash, who prosecuted this case. ###


title: Two Men Charged with Federal Firearms Violations

body_text: ELKINS, WEST VIRGINIA – Two men have been charged with federal firearms violations in North Central West Virginia. Wesley Shane Haggerty, age 35, of Cabins, West Virginia, was indicted for unlawful possession of a firearm. According to court documents, Haggerty was previously convicted of multiple domestic violence, burglary, and drug charges, prohibiting him from having firearms. He was arrested in Pendleton County and found in possession of a .25 caliber pistol. James Douglas Lambert, age 35, of Moorefield, West Virginia, was indicted for unlawful possession of firearms. According to the indictment, Lambert is prohibited from having firearms because he was previously convicted of breaking and entering, escape, and domestic battery in Grant and Hardy Counties. Lambert possessed seven firearms at a residence in Grant County. Assistant U.S. Attorney Stephen Warner is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the cases. The Pendleton County Sheriff’s Office assisted in the Haggerty case. Indictments are merely allegations, and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Fourteen Charged with Federal Dog Fighting Offenses in Three-State Arrest Operation

component: Energy and Natural Resources Division

body_text: Fourteen men – residents of Georgia, Florida and Alabama – were charged for participating in a major dog fighting event that occurred in April 2022 in Donalsonville, Georgia. The U.S. District Court for the Middle District of Georgia unsealed the indictment in conjunction with arrests that occurred this week. The defendants are: Tamichael Elijah, 47, of Donalsonville, Georgia; Marvin Pulley III, 52, of Donalsonville and Jakin, Georgia; Brandon Baker, 41, of Panama City, Florida; Christopher Travis Beaumont, 37, of Panama City, Florida; Herman Buggs Jr., 56, of Donalsonville, Georgia; Terrance Davis, 45, of Pansey, Alabama; Timothy Freeman, 26, of Bainbridge, Georgia; Terelle Ganzy, 34, of Panama City, Florida; Gary Hopkins, 66, of Donalsonville, Georgia; Cornelious Johnson, 39, of Panama City, Florida; Rodrecus Kimble, 43, of Donalsonville, Georgia; Donnametric Miller, 41, of Donalsonville, Georgia; Willie Russell, 43, of Blakely, Georgia; and Fredricus White, 36, of Panama City, Florida. According to court documents filed in this case, the defendants all converged on a property in Donalsonville, Georgia, on April 24, 2022, where they held a large-scale dog fighting event. The defendants and others brought a total of 24 dogs to fight that weekend in a series of matches. Law enforcement personnel who disrupted the event found numerous dogs inside crates in cars on the property. The participants used their cars to store dogs who had already fought, as well as those whose turns had not yet come. As alleged in the indictment, Elijah resided on the property and acted as the host, having taken money from Pulley for hosting the dog fights. Pulley was the primary organizer. He and Russell acted as referees for matches that occurred before law enforcement arrived. Beaumont, Davis and Miller were witnessed fighting dogs at the event. Baker, Beaumont, Ganzy, Johnson and White brought three dogs from Florida to fight. Buggs, Davis, Freeman, Hopkins, Pulley and Kimble also brought dogs to the fight. Under federal law, it is illegal not only to fight dogs in a venture that affects interstate commerce, but also to possess, train, transport, deliver, sell, purchase or receive dogs for fighting purposes. Miller is also charged with the unlawful possession of a firearm subsequent to a prior felony conviction. Authorities rescued 27 dogs from the April 2022 dog fighting event, and another 51 in conjunction with the arrests that occurred this week. If convicted, the defendants each face a maximum penalty of five years in prison and a $250,000 fine per count of animal fighting charges. Miller also faces a maximum penalty of 10 years in prison and a $250,000 fine on the firearm charge. Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division (ENRD) made the announcement. The U.S. Department of Agriculture, Office of the Inspector General and detectives with the Seminole County, Georgia Sheriff’s Office are investigating the case, which remains ongoing. Detectives with the Bay County, Florda Sheriff’s Office also provided invaluable assistance. Senior Trial Attorney Ethan Eddy of ENRD’s Environmental Crimes Section is prosecuting the case, with assistance from Criminal Chief Leah McEwen of the U.S. Attorney’s Office for the Middle District of Georgia. The U.S. Attorney’s Offices in the Northern District of Florida and Middle District of Alabama also assisted with the operation. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: U.S. Attorney Gerard M. Karam Announces Fraud Alert For Covid-19 Cryptocurrency Scam

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania is alerting the public about a nationwide scam to trick unsuspecting individuals into paying cryptocurrency to lift non-existent arrest warrants. According to United States Attorney Gerard M. Karam, targets of the scam have received forged court documentation stating that they are being investigated for Payroll Protection Program (PPP) fraud and are the subject of an arrest warrant. The documents often claim to have been sent on behalf of the Department of Justice’s Civil Division’s Commercial Litigation Branch. Additional documents sent by scammers advise the recipient that to lift the arrest warrant, the recipient must make a payment through a cryptocurrency kiosk. The documents contain detailed instructions on how to use a cryptocurrency kiosk to send payment. The United States Attorney’s Office is warning the public that these solicitations are unapproved and illegitimate. If you receive solicitations to lift an arrest warrant in exchange for cryptocurrency payments, you should not respond or follow those instructions. Please report these scams to law enforcement by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721, or by submission to the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . You also may report the scam to the Federal Bureau of Investigation at: https://www.ic3.gov/ . On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . # # # NOTE: This press release has been updated to reflect the removal of the names of uncharged entities.


title: Essex County Member of Newark Drug Trafficking Organization Responsible for Distribution of Over 1 Kilogram of Heroin Sentenced to 210 Months in Prison

component: USAO - New Jersey

body_text: NEWARK, N.J. – An Essex County, New Jersey, man was sentenced to 210 months in prison for his role in a conspiracy to distribute and possess with intent to distribute over one kilogram of heroin, U.S. Attorney Philip R. Selling announced today. Furad Loyal, 42, of Newark, was convicted at trial on May 9, 2023, before U.S. District Judge Susan D. Wigenton on three counts of the indictment against him: conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, possession with intent to distribute heroin, and being a felon in possession of a firearm. He was acquitted on one count of possession of a firearm in furtherance of a drug trafficking crime. Judge Wigenton imposed the sentence on Feb. 21, 2024, in Newark federal court. According to documents filed in this case and the evidence at trial: Loyal was a heroin supplier and a member of a drug trafficking organization (DTO) that operated in and around Hayes Street and 14th Avenue in the area of the New Community Corporation community development (NCC) in Newark. In addition to selling narcotics in and around NCC, the members shared narcotics supply, narcotics proceeds, and customers. On Nov. 21, 2017, Loyal was found inside the apartment of an NCC resident where he was stashing his heroin, his firearm, and over $11,000 in cash. From March to August 2018, Loyal and 27 other members of the DTO were charged by criminal complaint with conspiracy to distribute heroin and cocaine base; Loyal also was charged with firearms offenses. The other 27 defendants have all since pleaded guilty to crimes in connection with their roles in the DTO. In addition to the prison term, Judge Wigenton sentenced Loyal to five years of supervised release. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, and members of the Newark Department of Public Safety, under the direction of Director Fritz Fragé, with the investigation leading to the sentencing. He also thanked the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, the New Jersey Department of Corrections, New Jersey State Parole, and the U.S. Marshals for their assistance. This case is part of the original Violent Crime Initiative (VCI). The VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is comprised of the U.S. Attorney’s Office, the FBI, the ATF, the DEA’s New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department. The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Christopher D. Amore of the U.S. Attorney’s Office’s Criminal Division in Newark.


title: Orange County Man Sentenced To More Than 15 Years In Federal Prison For Fentanyl Distribution

component: USAO - Florida, Middle

body_text: Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Yadier Torres-Rivera (35, Orlando) to 15 years and 8 months in federal prison for distributing 40 grams or more of a mixture and substance containing a detectable amount of fentanyl. Torres-Rivera entered a guilty plea on November 12, 2023. According to court documents, from August through December 2022, Torres-Rivera distributed fentanyl four times to a confidential source working for the Volusia Bureau of Investigation (VBI) before the VBI confidential source introduced a Drug Enforcement Administration (DEA) undercover agent to Torres-Rivera. Between December 2022 and February 2023, the DEA undercover agent conducted four additional purchases of fentanyl from Torres-Rivera in the following amounts: 30.2 grams, 92.5 grams, 100.9 grams, and 104 grams. In total, Torres-Rivera was responsible for distributing nearly 500 grams of fentanyl to the VBI confidential source and DEA undercover agent. Additionally, at the time of his arrest in September 2023, Torres-Rivera’s had on his person a loaded Glock 27 handgun with an attached auto-sear, an extended magazine loaded in the magazine well, and a round of ammunition in the firing chamber. He also had in his possession a regular-sized Glock magazine containing rounds of ammunition. As part of the plea agreement, Torres-Rivera has agreed to abandon all rights to the handgun and associated magazines and ammunition that were seized from him. This case was investigated by the Drug Enforcement Administration, the Volusia Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Megan Testerman. 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.


title: Repeat Offender Pleads Guilty To Possession Of Child Sexual Abuse Material

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces that Dominick Nardone (45, Orlando) has pleaded guilty to possessing child sexual abuse material. Because Nardone was previously convicted of a child sexual exploitation offense, he faces a minimum mandatory sentence of 10 years, up to 20 years, in federal prison. A sentencing date has not yet been set. According to court documents, in 2014, Nardone was sentenced to seven years in federal prison for receipt of child sexual abuse material. After completing his prison sentence, Nardone began a term of court supervision. On October 31, 2020, a probation officer conducted an unannounced home visit at Nardone’s residence. When questioned about his use of electronic devices, Nardone admitted that he had used a cellphone to search for child sexual abuse material in the preceding three weeks. The probation officer immediately seized Nardone’s cellphone and had the contents forensically examined. This examination revealed that Nardone had an extensive history of viewing and downloading child sexual abuse material on the cellphone. This case was investigated by Homeland Security Investigations (HSI) and United States Probation. It is being prosecuted by Assistant United States Attorney William S. Hamilton. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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 .


title: Cheshire Woman Sentenced to Prison for Fraud and Tax Offenses Stemming from Nearly $1 Million Embezzlement Scheme

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ERIN SULLIVAN, 53, of Cheshire, was sentenced yesterday by U.S. District Judge Kari A. Dooley in Bridgeport to 24 months of imprisonment, followed by three years of supervised release, for fraud and tax offenses stemming from an embezzlement scheme. According to court documents and statements made in court, Sullivan was employed as the office manager for a family-owned construction business, identified in court documents in “Company A,” based in Orange. Beginning at least as early as 2016, Sullivan made false entries into Company A’s payroll and accounting system that caused the system to generate hundreds of fraudulent checks payable to her or to “Petty Cash.” Almost immediately after she generated a fraudulent check, Sullivan changed the reference in the payroll and accounting system to show that it had been issued to a different payee. Sullivan sometimes generated checks in the name of Company A’s owner, forged the signature of Company A’s owner on the checks, and either cashed the checks or deposited them into her bank account. She also altered the payroll and accounting system in other ways, which resulted in her receiving additional pay to which she was not entitled. Through this scheme, Sullivan embezzled $955,960.71 from Company A. In addition, Sullivan failed to pay $233,738 in federal income taxes on her embezzled income for the 2016 through 2021 tax years. Judge Dooley ordered Sullivan to pay restitution of more than $1.17 million. Sullivan has paid approximately $640,000 in restitution to date. On October 30, 2023, Sullivan pleaded guilty to one count of wire fraud and one count of tax evasion. Sullivan, who is released on a $100,000 bond, is required to report to prison on April 8. This investigation was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Orange Police Department. The case was prosecuted by Assistant U.S. Attorney Michael S. McGarry.


title: Connecticut Man Sentenced To 210 Months’ Imprisonment For Enticement Of A Minor And Child Pornography Offenses

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Christopher Capozza, age 42, of Newington, Connecticut, was sentenced yesterday to 210 months’ imprisonment by United States District Court Judge Robert D. Mariani for the online enticement of a minor and production of child pornography. Capozza previously pleaded guilty to one count of online enticement of a minor and one count of production of child pornography. Between July 23, 2020, and December 31, 2020, Capozza used Snapchat to persuade, induce, and entice a minor to engage in illegal sexual activity, including to engage in sexual intercourse with Capozza and to travel with him to Connecticut and Massachusetts for the purposes of continuing their illegal sexual activity together. On or about August 23, 2020, Capozza persuaded, induced, and enticed the same minor victim to make several pornographic videos and then send those videos to him via Snapchat. The matter was investigated by the Federal Bureau of Investigation (FBI), the Omaha, Nebraska Police Department, and the United States Attorney’s Offices for the Districts of Connecticut and Nebraska. Assistant United States Attorney James M. Buchanan prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. # # #


title: St. Louis County Man Sentenced for Trying to Bribe Postal Workers

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Stephen R. Clark on Wednesday sentenced a man who tried to buy keys to mail collection boxes from postal workers to 20 months in prison. Dwaundre K. Valley, 21, of Bridgeton, pleaded guilty in October to bribery of a public official. He admitted offering three different postal carriers a bribe in March and April of 2022 for the “arrow” keys that allow access to certain mail collection boxes. Valley offered one letter carrier $5,000 for the key, his plea agreement says. In a sentencing memo, Assistant U.S. Attorney Jonathan Clow wrote that the bribery attempts come at a time when mail theft has been on the rise, as criminals steal mail to obtain checks and use those checks to commit fraud. Crimes like Valley’s undermine the public’s sense of security and confidence in a vital government service, Clow wrote. “The Postal Inspection Service is committed to investigating those that attempt to compromise the integrity of the U.S. Mail and Postal Service employees. This sentencing is a clear indication that our investigative efforts will not cease until those responsible for such criminal acts are brought to justice,” said Ruth M. Mendonça, Inspector in Charge of the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office. These cases were investigated by the U.S. Postal Inspection Service. A U.S. Marshals Service task force that includes the St. Louis County Police Department assisted in apprehending Valley. Assistant U.S. Attorney Jonathan Clow prosecuted the case.


title: False Claims Act Settlements and Judgments Exceed $2.68 Billion in Fiscal Year 2023

component: Civil Division

body_text: Settlements and judgments under the False Claims Act exceeded $2.68 billion in the fiscal year ending Sept. 30, 2023, Acting Associate Attorney General Benjamin C. Mizer and Civil Division Principal Deputy Assistant Attorney General Brian M. Boynton announced today. The government and whistleblowers were party to 543 settlements and judgments, the highest number of settlements and judgments in a single year. Recoveries since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $75 billion. “Protecting taxpayer dollars from fraud and abuse is of paramount importance to the Department of Justice – and these enforcement figures prove it,” said Acting Associate Attorney General Mizer. “The False Claims Act remains one of our most important tools for rooting out fraud, ensuring that public funds are spent properly, and safeguarding critical government programs.” The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus serves to safeguard government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits. “As the record-breaking number of recoveries reflects, those who seek to defraud the government will pay a high price,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department's Civil Division. “The American taxpayers deserve to know that their hard-earned dollars will be used to support the important government programs and operations for which they were intended.” Of the more than $2.68 billion in False Claims Act settlements and judgments reported by the Department of Justice this past fiscal year, over $1.8 billion related to matters that involved the health care industry, including managed care providers, hospitals, pharmacies, laboratories, long-term acute care facilities, and physicians. The amounts included in the $1.8 billion reflect recoveries arising only from federal losses, but in many of these cases, the department was instrumental in recovering additional amounts for state Medicaid programs. The recoveries in fiscal year 2023 also reflect the department’s focus on key enforcement priorities, including fraud in pandemic relief programs and alleged violations of cybersecurity requirements in government contracts and grants. In 1986, Congress strengthened the False Claims Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblower, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. Qui tam cases may be pursued by the government or the whistleblower, and this past year significant recoveries were obtained by both. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. Whistleblowers filed 712 qui tam suits in fiscal year 2023, and this past year the Justice Department reported settlements and judgments exceeding $2.3 billion in these and earlier-filed suits. Representative examples of False Claims Act matters pursued by the government and whistleblowers are discussed below. HEALTH CARE FRAUD In fiscal year 2023, health care fraud remained a leading source of False Claims Act settlements and judgments. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families. But just as important, enforcement of the False Claims Act deters others who might try to cheat the system for their own gain, and in many cases, also protects patients from medically unnecessary or potentially harmful actions. As in years past, the act was used to pursue matters involving a wide array of health care providers, goods, and services. Medicare Advantage Matters The Justice Department continued to pursue cases alleging false claims in the Medicare Advantage (or Medicare Part C) program, including allegations that organizations participating in the program knowingly submitted or caused the submission of inaccurate information or knowingly failed to correct inaccurate information about the health status of beneficiaries enrolled in their plans to increase reimbursement. As Medicare Part C is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries, the work of the Justice Department in this area is of critical importance. The Cigna Group agreed to pay $172 million to resolve allegations that it knowingly submitted and failed to withdraw inaccurate and untruthful diagnosis codes for its Medicare Advantage Plan enrollees to increase its payments from Medicare. The United States alleged that while Cigna engaged in a “chart review” program to submit additional diagnosis codes to Medicare for reimbursement, it failed to withdraw inaccurate or untruthful diagnosis codes previously submitted. The United States further alleged that Cigna paid vendors to conduct in-home assessments of enrollees, and then improperly reported diagnosis codes based solely on forms completed by those vendors without performing or ordering the diagnostic testing or imaging necessary to reliably diagnose the serious conditions reported. Martin’s Point Health Care Inc. agreed to pay $22.5 million to resolve allegations that it knowingly submitted inaccurate diagnosis codes for its Medicare Advantage Plan enrollees that were not supported by the patients’ medical records to increase reimbursements from Medicare. In addition to securing these settlements, the Justice Department continued to litigate a number of other cases involving the Medicare Advantage program, including actions against UnitedHealth Group , Independent Health Corporation , Elevance Health (formerly Anthem) , and the Kaiser Permanente consortium. Unnecessary Services and Substandard Care The Justice Department also pursued and resolved matters in which providers billed federal health care programs for medically unnecessary services and substandard care. The provision of such medical services not only wastes taxpayer funds but also can expose patients to harmful procedures and treatments or cause them to forego other potentially more effective treatments. Cornerstone Hospital Medical Center and related entities agreed to pay $21.6 million to resolve allegations that the former long-term acute care facility knowingly submitted claims for services performed by unlicensed and unauthorized students, and services that were not provided or effectively worthless. Smart Pharmacy Inc. , SP2 LLC, and Gregory Balotin agreed to pay at least $7.4 million to resolve allegations that they unnecessarily added the antipsychotic drug aripiprazole to topical compounded pain creams to boost federal reimbursement for the compounded creams and waived patient copayments. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so. Saratoga Center for Rehabilitation and Skilled Nursing Care , related entities, and operators and owners Leon Melohn, Alan “Ari” Schwartz, Jeffrey Vegh, and Jack Jaffa agreed to pay $7.1 million to resolve allegations that Saratoga Center delivered worthless services to residents, resulting in medication errors, unnecessary falls, and the development of pressure ulcers, and that the facility’s physical conditions deteriorated to such a degree that the facility did not consistently maintain hot water, have an adequate linen inventory, or dispose of solid waste. Opioid Epidemic The Justice Department has continued its pursuit of health care providers, pharmaceutical companies, pharmacies, and other entities that have played a role in contributing to and exacerbating the opioid crisis. This year, the Justice Department filed a complaint in intervention in a whistleblower lawsuit against Rite Aid Corporation and various subsidiaries alleging that Rite Aid filled unlawful prescriptions for controlled substances in violation of the False Claims Act and the Controlled Substances Act. The United States alleges that from May 2014 through June 2019, Rite Aid knowingly filled unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone, fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions. The Justice Department filed a proof of claim in the Chapter 11 bankruptcy action commenced by Endo Health Solutions Inc. and related corporate entities, alleging that Endo violated the FCA and caused hundreds of millions of dollars of losses to federal health care programs by causing the submission of false and fraudulent claims for prescriptions of Opana ER, a Schedule II opioid. The Department alleged that Endo used an aggressive marketing scheme that marketed Opana ER to high volume prescribers of opioids, including many prescribers who Endo knew were prescribing Opana ER or other opioids for non-medically accepted indications. Unlawful Kickbacks Kickbacks paid or received by health care providers undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition. Federal law prohibits the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program. The Justice Department filed claims against multiple Modern Vascular office-based labs, affiliated companies, and its owner Yury Gampel, alleging that Gampel and the Modern Vascular defendants offered referring physicians various forms of remuneration, including the opportunity to invest in Modern Vascular office-based labs with the prospect of large monetary distributions, to induce them to refer their patients to Modern Vascular for the treatment of peripheral arterial disease. The complaint also alleged that Gampel pressured vascular surgeons and interventional radiologists employed at the Modern Vascular office-based labs to increase the number of invasive surgical procedures performed. Cardiac Imaging Inc. and its founder, owner, and CEO Sam Kancherlapalli, agreed to pay $85.5 million to resolve allegations that, with Kancherlapalli’s oversight and approval, Cardiac Imaging paid kickbacks to cardiologists in the form of above-fair market value supervision fees, to induce those doctors to refer their patients to Cardiac Imaging for PET scans. The United States alleged that these fees substantially exceeded fair market value for the doctors’ services and included time the doctors were away from the Cardiac Imaging mobile scanning units or were not even on site. Carter Healthcare LLC and its President Stanley Carter and Chief Operations Officer Bradley Carter agreed to pay $22.9 million to resolve allegations that Carter Healthcare improperly paid renumeration to physicians under the guise of medical directorships to induce referrals of home health patients. The Justice Department announced two resolutions involving kickbacks relating to electronic health records (EHR). Modernizing Medicine Inc. (ModMed) agreed to pay $45.4 million to resolve allegations that it improperly solicited and received kickbacks from a lab company in exchange for recommending and arranging for ModMed’s users to utilize the lab company’s pathology lab services, conspired with the lab company to improperly donate ModMed’s EHR technology to health care providers, and paid kickbacks to its customers and other influential sources to recommend ModMed’s technology and refer potential customers to ModMed. The government further alleged that ModMed knew that its EHR technology did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under the Department of Health and Human Services’ EHR Incentive Programs. NextGen Healthcare Inc. agreed to pay $31.2 million to resolve allegations that it misrepresented the capabilities of certain versions of its EHR software by using an auxiliary product that was designed only to meet government certification criteria and otherwise was lacking in critical functionality. The government further alleged that NextGen provided unlawful remuneration in the form of credits, often worth as much as $10,000, along with tickets to sporting events and entertainment, that it gave to current customers whose recommendation of NextGen’s software led to a new sale. The Justice Department also resolved numerous matters involving laboratories and their recruiters allegedly paying doctors kickbacks disguised as legitimate payments. Five corporate entities and ten individuals paid over $2.6 million to settle allegations of kickbacks for laboratory referrals, including sham investment distributions from management service organizations (MSOs). For example, executive Peggy Borgfeld agreed to pay $325,000 and be excluded from federal healthcare programs for five years to resolve allegations that she falsely certified to Medicare that certain laboratory testing claims complied with the Anti-Kickback Statute, and Dr. Chad Shelton , Dr. Michael Boedefeld , and their medical practice agreed to pay $396,360 to settle allegations of receiving MSO kickbacks in return for their laboratory referrals. These settlements are part of an ongoing investigation that to date has resulted in settlements with 43 physicians and recoveries of over $46 million. Other Health Care Fraud The Justice Department continued to pursue claims arising from alleged fraud in California’s Medicaid program in connection with coverage of the previously uninsured “Adult Expansion” population under the Patient Protection and Affordable Care Act. Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health , a county-organized health system, and seven providers in the system, Cottage Health System, Sansum Clinic, Community Health Centers of the Central Coast , Lompoc Valley Medical Center , Dignity Health, as well as Twin Cities Community Hospital and Sierra Vista Regional Medical Center , two subsidiaries of Tenet Healthcare Corporation, agreed to pay a combined total of $95.5 million to resolve allegations that they made or received payments that were not for “allowed medical expenses” under CenCal’s contract with the state, were pre-determined amounts that did not reflect fair market value, were duplicative of services already required to be rendered, and were unlawful gifts of public funds in violation of the state constitution. BioTelemetry Inc. and its subsidiary CardioNet LLC, agreed to pay nearly $45 million to resolve allegations that they submitted claims for heart monitoring tests that were evaluated, in part, outside the United States, in violation of federal law. The United States further alleged that most of the offshore technicians tasked with reviewing heart test data did not have the basic qualifications to evaluate the tests in question. Lincare Holdings Inc. agreed to pay $29.0 million to resolve allegations that it fraudulently billed Medicare Advantage plans and Medicare Part B for oxygen equipment rental payments. While many Medicare Advantage plans and Medicare Part B “capped” oxygen equipment rental payments at 36 months, Lincare admitted that it improperly billed government health care plans for oxygen equipment rental payments and co-payments after it had already received three years of payments. Lincare not only admitted to improperly billing Medicare for oxygen equipment rentals, but also admitted to improperly collecting co-pays from beneficiaries and, as part of the settlement, agreed to timely identify and refund all beneficiary co-pays that it had improperly collected, and to implement additional corrective actions in order to ensure appropriate billing going forward. Advanced Bionics LLC , agreed to pay more than $11.0 million to resolve allegations that it misled federal health care programs regarding the radio-frequency (RF) emissions generated by some of its cochlear implant processors, which can potentially interfere with other devices that use the same RF spectrum, such as telephones, alarm and security systems, televisions, and radios. The settlement resolved allegations that the company, in submitting pre-market approval applications to the Food and Drug Administration for the company’s Neptune and Naida cochlear implant processors, made false claims regarding the methods it used in its RF emissions tests. PROCUREMENT FRAUD The government continued its pursuit of fraud matters involving the purchase of goods and services in connection with military and similar programs. Fraud in these programs not only squanders government funds, but also potentially puts servicemembers at risk. In one of the largest procurement settlements ever, Booz Allen Hamilton Holding Corporation paid $377 million to resolve allegations that it improperly billed its government contracts for costs incurred in its non-governmental commercial and international contracts. The government alleged that Booz Allen improperly allocated to government contracts indirect costs associated with its non-government contracts that either had no relationship to the government contracts or were allocated to those contracts in disproportionate amounts. Further, the United States alleged that Booz Allen failed to disclose to the government the method by which it accounted for costs supporting its commercial and international businesses. As a result, Booz Allen was alleged to have obtained reimbursement from the United States for the costs of non-governmental activities that provided no benefit to the United States. L3 Technologies Inc. agreed to pay $21.8 million to resolve allegations that in contract proposals for equipment provided to the military, L3 included the cost of certain items, such as nuts and bolts, twice. The Boeing Company agreed to pay $8.1 million to resolve allegations that it submitted false claims and made false statements in connection with U.S. Navy contracts to manufacture the V-22 Osprey, a military aircraft. The United States alleged that Boeing failed to comply with certain contractual manufacturing specifications in fabricating composite components for the V-22, including failing to perform monthly testing on autoclaves used in the composite cure process. PANDEMIC FRAUD In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses, and state, local, and Tribal governments. The Justice Department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), which was enacted to provide loans guaranteed by the U.S. Small Business Administration (SBA) to eligible small businesses for payroll, rent, utility payments, and other business-related costs. Over the last year, the department has resolved approximately 270 False Claims Act matters, recovering over $48.3 million in connection with improper PPP loans. The department has also pursued other pandemic related fraud, including schemes by health care providers to profit from the pandemic by billing for unnecessary tests and services. Victory Automotive Group Inc. agreed to pay more than $9 million to resolve allegations that it provided false information in support of a PPP loan forgiveness application. Although the company’s application certified it was a small business with fewer than 500 employees, Victory shared common operational control with dozens of automobile dealerships across the country, totaling more than 3,000 employees. For that reason, it was not eligible for the PPP loan it received, which was later forgiven in full. Coyne Public Relations LLC paid $2.24 million to resolve allegations that it received a PPP loan even though it was ineligible for the loan because it was a required registrant under the Foreign Agent Registration Act. John Seasholtz and four agricultural companies he owns agreed to pay more than $600,000 to resolve allegations that they violated the False Claims Act by improperly inflating the employee headcount on the companies’ PPP loan applications by impermissibly including non-employee contract workers who were, in fact, employed by other, unrelated entities. The companies also agreed to repay loan funds relating to the ineligible contractors, thereby relieving the SBA of liability for approximately $1.8 million in loan guarantees. In April 2023, the Department filed two proofs of claim in the Chapter 11 bankruptcy action commenced by Kabbage Inc., doing business as KServicing, alleging violations of the FCA in connection with thousands of federally guaranteed PPP loans that were approved or processed by Kabbage. In the first proof of claim , the United States alleged that Kabbage systemically miscalculated tens of thousands of PPP loans, causing the SBA to guarantee loans in inflated amounts that exceeded what borrowers were eligible to receive under program rules. In its second proof of claim , the United States alleged Kabbage knowingly failed to implement appropriate fraud controls to comply with applicable Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements, resulting in fraudulent claims for PPP processing fees, in addition to false claims for loan forgiveness and guarantees on fraudulent loans. The United States alleged that as a result of these schemes the government suffered losses in excess of $60 million. The Justice Department filed claims against Patrick Britton-Harr , Provista Health LLC, and multiple laboratory companies owned by him for submitting claims for laboratory tests that were not ordered by health care providers, not medically necessary, or not performed. In its complaint, the United States alleged Britton-Harr owned and operated multiple corporate entities that allegedly sought to profit from the COVID-19 pandemic by offering COVID-19 tests to nursing homes as a way to bill Medicare for a wider array of medically unnecessary respiratory pathogen panel tests, many of which were never ordered by treating physicians. CYBER-FRAUD INITIATIVE The Department’s effort to combat cybersecurity threats includes the Civil Cyber-Fraud Initiative, which was announced in October 2021. The Initiative is dedicated to using the False Claims Act to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements. Jelly Bean Communications Design LLC and its manager paid $293,771 to resolve allegations that they failed to secure personal information on a federally funded Florida children’s health insurance website, which Jelly Bean created, hosted, and maintained. The settlement resolved allegations that, contrary to its representations and commitments, Jelly Bean did not provide secure hosting of applicants’ personal information and instead knowingly failed to properly maintain, patch, and update the software systems. The site was attacked, potentially exposing the information of 500,000 applicants. The Justice Department also settled for over $4 million with Verizon Business Network Services LLC , which disclosed and remediated cybersecurity failures on contracts to provide trusted internet connections to the General Services Administration. In connection with the settlement, the company took a number of significant steps entitling it to credit for cooperating with the government, including providing the government with a written self-disclosure, initiating an independent investigation and compliance review of the issues, and providing the government with multiple detailed supplemental written disclosures. OTHER FRAUD RECOVERIES The judgments, settlements, and lawsuits announced during fiscal year 2023 involved a variety of other programs and schemes that reflect the diversity of the government’s False Claims Act enforcement efforts. GCI Communications Corp. agreed to pay $40 million to resolve allegations that it inflated its prices and violated Federal Communications Commission competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care Program. The program provides funding each year to assist rural health care providers with their telecommunications needs. The United States alleged that GCI failed to comply with FCC regulations that governed how telecommunications companies must competitively bid for these contracts and how prices must be calculated to receive subsidies, and as a result GCI received inflated subsidy payments. International Vitamins Corporation agreed to pay $22.8 million for defrauding the United States by misclassifying more than 30 of its vitamin and nutritional supplements under the Harmonized Tariff Schedule in order to avoid paying customs duties. IVC admitted that even after it retained a consultant who informed IVC of its wrongful conduct, IVC did not implement the correct classifications for over nine months and never remitted duties that it had underpaid to the United States because of its misclassification. Yale University and Dr. John Krystal agreed to pay $1.5 million to resolve allegations that they failed to disclose certain patents and failed to share patent royalties with the Department of Veteran Affairs (VA) for inventions made by Dr. Krystal when he worked for both institutions. Dr. Krystal was employed part time both at Yale and the VA, and those institutions agreed to promptly disclose to each other all joint inventions. HOLDING INDIVIDUALS ACCOUNTABLE The Justice Department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporations. Such efforts deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system. In addition to some of the recoveries identified above, the following are further examples of recoveries involving individuals. Dr. Joel Aronowitz, Daniel Aronowitz, and Joel A. Aronowitz, M.D., a medical corporation , and other parties paid $23.9 million to resolve allegations that, among other things, they falsified the place of service for skin grafts to fraudulently maximize reimbursements and failed to properly dispose of unused portions of single-use skin graft materials and, instead, used and billed them in later procedures involving other Medicare and Medicaid beneficiaries. Margarita Howard and her company HX5 LLC, along with affiliated joint venture HX5 Sierra LLC, paid the United States approximately $7.8 million to resolve allegations that they knowingly provided false information to the SBA relating to HX5’s and HX5 Sierra’s eligibility for federal set-aside contracts intended for small businesses owned and controlled by socially and economically disadvantaged individuals. Dr. John Y. Chung and his practice Skin Cancer & Cosmetic Dermatology Center, P.C. agreed to pay $6.6 million to resolve allegations that they submitted false claims for Mohs dermatological procedures that were billed as if both the surgery and pathology portions of the procedures were performed by the doctor, when in fact at least one portion was often performed by other individuals. RECOVERIES IN WHISTLEBLOWER SUITS Of the more than $2.68 billion in settlements and judgments reported by the government in fiscal year 2023, over $2.3 billion arose from lawsuits that were filed under the qui tam provisions of the False Claims Act and pursued by either the government or whistleblowers. During the same period, the government paid out over $349 million to the individuals who exposed fraud and false claims by filing qui tam actions. The number of lawsuits filed under the qui tam provisions of the act has grown significantly since 1986, with 712 qui tams filed this past year — an average of more than 13 new cases every week. “We are grateful for the hard work and courage of whistleblowers who play a critical role in identifying fraud, often at substantial risk to themselves,” said Principal Deputy Assistant Attorney General Boynton. “Our efforts to ensure that public funds are spent properly continues to benefit greatly from their actions.” In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions. *** Principal Deputy Assistant Attorney General Boynton also expressed appreciation for the many public servants over the past year who supported the Department’s enforcement efforts. He said, “The accomplishments announced today are a testament to the extraordinary dedication and skill of individuals across the nation who work tirelessly to protect taxpayer dollars from fraud and abuse. These individuals serve in the Fraud Section of the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel, and many other federal and state agencies that support this important work.” Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest. FY2023 Statistics


title: Medical Doctor Charged for $20.7M Health Care Fraud and Illegal Kickback Schemes

component: Criminal Division

body_text: A federal grand jury in New Jersey returned a superseding indictment yesterday charging a medical doctor with allegedly engaging in a health care fraud and illegal kickback scheme that involved the submission of over $20.7 million in false and fraudulent claims to Medicare for laboratory tests, including cancer genetic tests. According to court documents, Alexander Baldonado, 68, of Queens, New York, allegedly received cash kickbacks from a laboratory representative and others in exchange for approving orders for laboratory tests billed to Medicare. As part of the scheme, Baldonado also allegedly participated in COVID-19 testing events at which he authorized COVID-19 tests as well as expensive and medically unnecessary cancer genetic tests that patients did not request, that were not used in the patient’s treatment, and for which the patients rarely received the results. Baldonado also allegedly billed Medicare for lengthy office visits that he never provided to these patients. In addition, Baldonado allegedly engaged in a scheme to defraud Medicare and Medicaid by soliciting and receiving cash kickbacks and bribes from an owner of a durable medical equipment supply company in exchange for ordering orthotic braces that were medically unnecessary and ineligible for reimbursement. Baldonado is charged with one count of conspiracy to commit health care fraud, six counts of health care fraud, two counts of conspiracy to defraud the United States and pay and receive health care kickbacks, and one count of soliciting health care kickbacks. If convicted, he faces a maximum penalty of 10 years in prison for each count of conspiracy to commit health care fraud, health care fraud, and soliciting health care kickbacks, and a maximum penalty of five years in prison on each count of conspiracy to defraud the United States and pay and receive health care kickbacks. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Assistant Director in Charge James Smith of the FBI New York Field Office made the announcement. HHS-OIG and FBI are investigating the case. Assistant Chief Rebecca Yuan and Trial Attorney Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Superseding Indictment


title: Three Former Local 98 Employees Sentenced for Illegal Use of Union Assets

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Neill, 57, Marita Crawford, 54, and Niko Rodriguez, 32, all of Philadelphia, Pennsylvania, were sentenced this week by United States District Court Judge Jeffrey Schmehl. The defendants, all former employees of Local 98 of the International Brotherhood of Electrical Workers (“Local 98”), had previously pleaded guilty to stealing Local 98 funds for their personal use. Michael Neill had served as the Training Director of Local 98’s Apprentice Training Fund since 2008. In December 2022, he pleaded guilty to four counts of embezzlement of labor union assets, one count of theft from a union employee benefit plan, and one count of making and subscribing to a false federal income tax return. As part of his guilty plea, Neill admitted having Local 98 and the Apprentice Training Fund pay for construction and maintenance work at his home, at Doc’s Union Pub, of which he was a part owner, and other personal properties by causing the submission of false invoices from May 2013 through December 2015. Neill was sentenced to 13 months in prison, three years of supervised release, a fine of $10,000, and a mandatory special assessment of $600. Neill was ordered to pay restitution of $92,733.67 and to forfeit the sum of $25,259.29. Marita Crawford had served as Local 98’s Political Director since November 2011. In December 2022, she pleaded guilty to four counts of wire fraud, which involved using her Local 98 credit card to pay for personal expenses for the benefit of herself and others, and, for some of the illegal expenditures, submitting false business-related explanations of the expenses to the union to disguise the illegal nature of the transactions. Crawford also admitted illegally using money from a political action committee (PAC) called “New Gen1,” funded primarily by contributions from Local 98’s committee on political education (“COPE”) and by the IBEW’s similar fund in Washington, D.C., for personal purchases for herself and others. Crawford was sentenced to 15 days in prison followed by three months of home confinement, three years of supervised release, a fine of $2,000 and a mandatory special assessment of $400. She was ordered to pay restitution of $11,903 and to forfeit the sum of $2,777.63. Niko Rodriguez was employed by Local 98’s Apprentice Training Fund and by Local 98 since 2011, primarily serving as a driver and personal assistant to Local 98’s Business Manager, codefendant John Dougherty. In December 2022, he pleaded guilty to six counts of embezzlement of labor union assets. As part of his guilty plea, Rodriguez admitted using Local 98 credit cards to purchase personal goods for himself and Dougherty. Rodriguez was sentenced to three years’ probation, 80 hours of community service, a fine of $5,000, and a mandatory special assessment of $600. He was ordered to pay restitution of $13,491 and to forfeit the sum of $1,079.55. “In using Local 98 funds to pay for personal expenses, these defendants broke the law, and they stole from the union’s rank and file,” said U.S. Attorney Romero. “Every one of those hardworking members needs to be able to trust that the dues they dutifully pay are in fact being used for the union’s benefit, as intended. When that doesn’t happen, when money is unlawfully misdirected, we and our partners won’t hesitate to step in and hold those responsible to account.” “Investigating public corruption is a priority of the FBI and this includes ensuring the integrity of labor organizations and protecting the workers who trust them.” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “These individuals betrayed the electrical union’s members, those who rely on them to work with their best interest in mind, not out of greed. The FBI and our partners will continue to investigate and hold accountable those that pocket organizational funds for personal profit.” “IRS-Criminal Investigation is proud to have provided its financial expertise in this investigation,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “We, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate individuals who engage in money laundering, tax fraud, or other types of white-collar crimes.” “Neill’s sentencing sends an important message to all those entrusted with protecting benefit plan assets. Regardless of title or position, the U.S. Department of Labor will hold fiduciaries to the highest standards of accountability to protect the employee benefits of America’s workers,” said U.S. Department of Labor’s Employee Benefits Security Administration Regional Director Cristina O’Brien in Philadelphia. “Most union officials and employees do their work with great care, but union employees Michael Neill, Marita Crawford and Niko Rodriguez betrayed the trust and confidence placed in them by members of IBEW Local 98,” said U.S. Department of Labor Office of Labor-Management Standards Acting District Director Nicole Spallino in Philadelphia. “We remain committed to working with our law enforcement partners to identify criminal violations and pursue legal action when individuals unlawfully exploit their union positions at the expense of the union and its members.” Sentencing hearings for codefendants Brian Fiocca, who pleaded guilty in December 2022, as well as codefendants Brian Burrows and John Dougherty, who were convicted at trial in December 2023, are scheduled for March, April, and May 2024, respectively. The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service - Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office, and is being prosecuted by Assistant United States Attorneys Frank Costello, Bea Witzleben, Richard Barrett, Jason Grenell, and Anthony Carissimi.


title: Miami man arrested in multimillion-dollar bank fraud scheme targeting dozens of victims nationwide

component: USAO - Florida, Southern

body_text: MIAMI – On Feb. 21, a man was arrested after a federal grand jury returned an indictment charging him with multiple counts of bank fraud and aggravated identity theft. According to allegations in the indictment and statements made in court, from April 2022 through March 2023, Latron Earl Williams, 24, of Miami, Florida, fraudulently obtained personable identifiable information (PII) of various bank account holders, as well as addresses, debit card numbers, and bank account numbers. Williams used the fraudulently obtained information to pose as the account holders, fraudulently accessed their bank accounts, and caused more than $2 million in wire transfers from the bank accounts of approximately 50 victims nationwide into bank accounts he controlled. Then, Williams arranged for accomplices to withdraw the fraudulently obtained funds to conceal his involvement in the fraud. If convicted, Williams faces up to 30 years in prison on each count of bank fraud, and a mandatory minimum penalty of two years in prison for aggravated identity theft consecutive to any bank fraud sentence. U.S. District Judge Roy K. Altman will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jason Scalzo of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), Electronic Crimes Unit, and Special Agent in Charge Rafael Barros of the United States Secret Service (USSS), Miami Field Office made the announcement. FDIC-OIG, Electronic Crimes Unit and USSS, Miami Field Office investigated the case. Assistant U.S. Attorney Michael B. Homer is prosecuting it. An indictment contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 24-cr-20009. ###


title: Singapore Resident Pleads Guilty In Manhattan Federal Court To Soliciting Millions Of Dollars In Pre-IPO Stock Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of SHAMOON RAFIQ, a/k/a “Shamoon Omer Rafiq,” a/k/a “Omar Rafiq,” a/k/a “Omer Rafiq,” a resident of Singapore, for engaging in a scheme in which RAFIQ solicited millions of dollars of investors’ money by falsely representing that he was offering investments in shares of stock in privately held companies that had not yet conducted an initial public offering (“pre-IPO stock”), even though in fact he did not actually have those shares to offer, by impersonating senior officials of a reputable family office investment firm, and by engaging in other acts of deception. U.S. Attorney Damian Williams said: “Shamoon Rafiq ran a brazen scheme from Singapore to defraud U.S. investors who wished to invest in well-known private companies before they went public. This prosecution demonstrates the continued efforts of this Office and our law enforcement partners to pursue those who defraud American investors no matter where the perpetrators are located.” According to the charging documents and other filings and statements made in court: SHAMOON RAFIQ was born in the Netherlands and resided in Singapore. RAFIQ was convicted in 2004 in the U.S. District Court for the Eastern District of New York for carrying out a wire fraud scheme in which he purported to sell pre-IPO stock in a privately held company that had not yet conducted its initial public offering when, in fact, RAFIQ did not own or have access to such stock. After serving a 41-month federal prison sentence for that crime, RAFIQ was deported from the United States and eventually relocated to Singapore. In or about 2020, RAFIQ engaged in a new scheme from Singapore to defraud victims into paying him millions of dollars for alleged investment interests in various pre-IPO stocks that he did not actually own or control. In connection with his new fraud scheme, RAFIQ fraudulently impersonated two senior officials (“Victim-1” and “Victim-2”) of a prominent family office investment firm (“FamCap”) that manages and invests assets of members of a prominent billionaire family (the “Family”). In July 2020, RAFIQ caused the creation of a fake FamCap website (the “Fake FamCap Website”), which automatically routed users to the official FamCap website, and the creation of fake FamCap email addresses for Victim-1 and Victim-2 that closely resemble, but are slightly different from, their genuine FamCap email addresses (the “Fake FamCap Email Addresses”). The Fake FamCap Website and Fake FamCap Email Addresses for Victim-1 and Victim-2 were created without their or FamCap’s consent. The Fake FamCap Email Addresses also included the names of Victim-1 and Victim-2 without their authorization. In July 2020, RAFIQ began soliciting millions of dollars from investment firms in New York and elsewhere based on false claims that in exchange for their funds, he would sell them investment interests in a purported special purpose investment vehicle called “[Fam] Capital Technology Fund, LLC” that was supposedly managed by FamCap and allegedly owned pre-IPO stock in Airbnb, Inc., among other companies. For example, as part of this fraudulent scheme, RAFIQ deceived an investment firm based in New York, New York (the “New York Firm”), and one of the firm’s foreign institutional clients (the “Foreign Client”) into making agreements under which the Foreign Client wired about $9 million in mid-August 2020 into an escrow account in New York for anticipated release to a bank account in Singapore to pay RAFIQ for his purported sale of investment interests in the LLC. In soliciting this $9 million investment, RAFIQ made a variety of false representations, including the following: RAFIQ falsely claimed that the LLC was managed by FamCap. In fact, the LLC never existed. RAFIQ falsely claimed that the LLC owned pre-IPO shares of Airbnb. In fact, the LLC did not own and could not have owned such stock because the LLC never existed. RAFIQ falsely claimed that Victim-1 and Victim-2 had approved of his sale of his alleged interests in the LLC. In fact, Victim-1 and Victim-2 do not know RAFIQ and have confirmed that FamCap was never involved in or approved of any such transaction. During and to further the goals of this fraudulent scheme, RAFIQ also caused the creation and transmission of emails from the Fake FamCap Email Addresses and fake contracts and deal documents purporting to have been signed by Victim-1 or Victim-2 on behalf of FamCap that neither of them approved. For example, in August 2020, during the course of email communications with the New York Firm and Foreign Client concerning RAFIQ’s alleged sale to them of his purported interests in an alleged FamCap-managed LLC that supposedly held Airbnb shares, RAFIQ copied into the email chain the Fake FamCap Email Addresses to create the false impression that FamCap was involved in and approved of the alleged transaction. Also pursuant to the fraudulent scheme, RAFIQ solicited over $1 million from an investment group located in California (the “California Group”) in late 2020 by yet again purporting to be a representative of FamCap offering pre-IPO stock for sale. As a result, the California Group wired RAFIQ a total of approximately $1,002,615 in November and December 2020. * * * RAFIQ, 50, a resident of Singapore and a citizen of the Netherlands, pled guilty to a one-count Information charging him with conspiring to commit securities fraud and wire fraud, which carries a maximum potential sentence of five years in prison. RAFIQ agreed to pay restitution and forfeiture in the amount of $1,002,615 in connection with his guilty plea. The maximum potential prison sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the investigative work of Homeland Security Investigations, the U.S. Postal Inspection Service, the New York City Police Department, and the New York City Sheriff’s Office, and he also thanked the U.S. Securities and Exchange Commission, which conducted a separate parallel investigation, for its assistance, and the Department of Justice’s Office of International Affairs, Interpol, Singapore Police Force, and the Attorney-General’s Chambers of Singapore for their assistance in the extradition of the defendant. This case is being handled by this Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Jared Lenow is in charge of the prosecution.


title: Carjacker of Pizza Delivery Driver in St. Louis Sentenced to 11 Years in Prison

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday sentenced a man who carjacked a pizza delivery driver and crashed the stolen vehicle after a police chase to 11 years in prison. On July 29, 2022, Jacoby Watts and others carjacked a Domino's Pizza delivery driver in St. Louis, Missouri. A juvenile pointed a gun at the delivery driver and Watts drove the carjacked 2019 Dodge Charger away. Police later tracked the vehicle to East St. Louis. Watts fled, leading police on a chase that ended back in St. Louis when Watts crashed into other vehicles, injuring one of the other drivers. Police found two ski masks in the car, as well as the loaded.45-caliber Glock 21 that was used in the carjacking. Watts, now 21, of Belleville, Illinois, pleaded guilty in November to one count of carjacking and one count of possession and brandishing a firearm in furtherance of a violent crime. The St. Louis Metropolitan Police Department, the Illinois State Police, the East St. Louis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Cassandra Wiemken prosecuted the case.


title: Indian River County resident pleads guilty to distributing fentanyl resulting in death

body_text: MIAMI – On Feb. 20, an Indian River County resident pleaded guilty in federal court in Fort Pierce to distribution of fentanyl, the use of which resulted in the death of another person. As part of the plea documents filed with the court, Keyon Lewis, 27, admitted that on Nov. 5, 2021, he sold fentanyl to a man in a parking lot in Vero Beach, Florida. The next day, the man’s wife found him dead on the kitchen floor of their residence. After law enforcement officers discovered the victim’s body, they used the victim’s cellphone to order more fentanyl from Lewis. On Nov. 7, 2021, Indian River County officers arrested Lewis at the victim’s residence. Lewis’s sentencing is scheduled for May 21 before U.S. District Judge Aileen M. Cannon in Fort Pierce. Lewis faces a mandatory minimum penalty of 20 years and a maximum penalty of up to life in prison. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Eric Flowers of the Indian River County Sheriff’s Office (IRCSO) made the announcement. DEA Miami Field Division and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter is prosecuting it. Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 23-cr-14030. ###


title: Zaquikon T. Roy Arraigned on New Drug and Gun Charges

component: USAO - Vermont

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Zaquikon T. Roy, 35, of Brooklyn, New York, was arraigned on February 20, 2024, in U.S. District Court in Burlington, Vermont on a superseding indictment charging the following: conspiracy to distribute cocaine base, fentanyl, and 500 grams or more of cocaine; two counts of distribution of cocaine base; one count of possession with intent to distribute cocaine and cocaine base; two counts of possession of a firearm in furtherance of a drug trafficking crime; one count of felon in possession of a firearm; and one count of discharge of a firearm in furtherance of a drug trafficking crime. The count for discharge of a firearm relates to a shooting that occurred in Leicester, Vermont on June 4, 2023. Roy waived his appearance at his arraignment and pleas of not guilty were entered on his behalf. Roy was previously detained pending trial and is still detained. If convicted of these offenses, Roy faces a mandatory minimum sentence of 25 years imprisonment and a maximum sentence of life imprisonment, and a fine of up to $5,000,000. The actual sentence, however, would be determined by the District Court with guidance from the advisory Federal Sentencing Guidelines and the statutory sentencing factors. The United States Attorney emphasizes that the charges in the superseding indictment are merely accusations, and that Roy is presumed innocent unless and until proven guilty. This case was investigated by the Federal Bureau of Investigation and the Vermont State Police. The United States is represented in this matter by Assistant U.S. Attorneys Paul J. Van de Graaf and Wendy L. Fuller. Roy is represented by Chandler Matson, Esq. 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: Sanctioned Russian Oligarch And Others Indicted For Sanctions Violations And Money Laundering

component: Criminal - Money Laundering, Narcotics and Forfeiture Section

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Merrick B. Garland, the Attorney General of the United States; Lisa O. Monaco, the Deputy Attorney General of the United States; Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”); and David J. Scott, the Special Agent in Charge of the Washington Field Office (“WFO”) of the FBI, announced the unsealing of an Indictment charging sanctioned Russian oligarch and the President and Chairman of a Russian state-owned bank, ANDREY KOSTIN, with participating in two separate schemes that violated U.S. sanctions. In one scheme, KOSTIN and others conspired to evade sanctions and launder funds by using a series of shell companies and strawmen in order to access the U.S. financial system to operate, maintain, and improve KOSTIN’s two superyachts, collectively worth over $135 million. The other scheme charges KOSTIN and two U.S. persons, VADIM WOLFSON and GANNON BOND, for their roles in providing goods, funds, and services to KOSTIN related to a luxury home in Aspen, Colorado, including wiring KOSTIN approximately $12 million after he was sanctioned. WOLFSON and BOND were arrested this morning in Austin, Texas, and Edgewater, New Jersey, respectively, and will be presented in federal courts in Texas and New York today. KOSTIN remains at large and is believed to be in Russia. The case is assigned to U.S. District Judge Gregory H. Woods. U.S. Attorney Damian Williams said: "As alleged, sanctioned oligarch Andrey Kostin and his co-defendants flouted U.S. sanctions to support his exceptionally lavish lifestyle. Through complex schemes involving shell companies and illicit transactions, Kostin and his associates allegedly laundered funds and illegally made transactions with U.S. currency for the maintenance and enhancement of Kostin’s superyachts and luxury Aspen home, blatantly disregarding U.S. law. This investigation highlights the collaborative efforts of this Office and our law enforcement partners around the globe to uphold critical sanctions put in place to support our national security goals and hold accountable those who seek to undermine them." Attorney General Merrick B. Garland said: “The Justice Department is more committed than ever to cutting off the flow of illegal funds that are fueling Putin’s war and to holding accountable those who continue to enable it. That is why today we are announcing several additional enforcement actions that the Justice Department has taken to bring prosecutions against and seize assets of sanctioned enablers of the Kremlin and Russian military.” Deputy Attorney General Lisa O. Monaco said: “Since the onset of Russia’s brutal and unprovoked invasion of Ukraine, the Justice Department has used every tool in our arsenal – including our international partnerships – to target the criminal actors and activity propping up Vladimir Putin, his henchmen, and his illegal war. Over the last two years, our Task Force KleptoCapture has restrained, seized, and obtained judgments to forfeit nearly $700 million in assets from Russian enablers and charged more than 70 individuals for violating international sanctions and export controls levied against Russia. The charges we announce today against oligarchs, facilitators, and money launderers are the next chapter: so long as Russia's aggression continues, so too will our resolve to hold its enablers accountable. We stand firmly with the people of Ukraine.” FBI Director Christopher A. Wray said: “It has been two years since Russia's unprovoked invasion of Ukraine and the FBI continues to go after the Russian criminals who finance and enable Russia’s war. To the people of Ukraine fighting for their freedom: The FBI remains steadfast in our efforts to disrupt and hold accountable the criminals supporting the Russian War, and we will continue to stand with you to fend off Russian aggression for as long as it takes.” FBI WFO Special Agent in Charge David J. Scott said: "As alleged, Kostin conspired with the defendants and others to violate U.S. sanctions. Today's indictment demonstrates that the FBI will work with our partners to hold sanctioned oligarchs and their co-conspirators responsible for their crimes and ensure that they cannot use U.S. financial institutions to harbor illicit funds and goods." As alleged in the Indictment: [1] KOSTIN is a Russian oligarch who was sanctioned and designated a Specially Designated National (“SDN”) by U.S. Department of Treasury’s Office of Foreign Assets Control (“OFAC”) on April 6, 2018, pursuant to the International Emergency Economic Powers Act (“IEEPA”). From at least on or about April 6, 2018, through at least on or about March 2, 2022, KOSTIN and others, including at times WOLFSON and BOND, participated in schemes to violate IEEPA through the provision of funds, goods, and services, including U.S. financial services and U.S. dollar transactions, to and for KOSTIN’s benefit. KOSTIN also engaged in a scheme to commit money laundering to promote IEEPA violations. Before and after OFAC sanctioned KOSTIN, he beneficially owned and controlled, through various shell companies, several assets worth tens of millions of dollars, including two superyachts identified as the Sea Rhapsody and Sea & Us . The Sea Rhapsody , valued at approximately $65 million, is a 216-foot superyacht and has six staterooms, including two luxurious master cabins identical in size. This superyacht is equipped with amenities including water toys, gym equipment, an infinity pool, a jacuzzi, a cinema and club area, and customized stationery. The Sea & Us , valued at approximately $70 million, is a 205-foot superyacht that was custom-built for KOSTIN. KOSTIN and others violated IEEPA on numerous occasions, including by causing U.S. dollar payments to be made for the maintenance, operation, and/or improvement of the Sea Rhapsody and Sea & Us for the benefit of KOSTIN and without an OFAC license, which is required to transact with an SDN. In causing these U.S. dollar payments to be made, KOSTIN and others also committed international money laundering. KOSTIN also owned a luxury home in Aspen, Colorado, that he purchased for $12.5 million in 2010. From at least on or about April 6, 2018, through at least in or about September 2019, KOSTIN, WOLFSON, BOND, and others participated in a scheme to violate IEEPA by providing funds, goods, and services for the benefit of KOSTIN, whose property and interests in property, including the Aspen home, were blocked as a result of his SDN designation. Specifically, notwithstanding having been designated an SDN by OFAC, KOSTIN and his conspirators schemed to operate, maintain, and improve KOSTIN’s Aspen residence in a manner designed to conceal KOSTIN’s continued ownership of this luxury asset. In addition, in or about September 2019, KOSTIN, WOLFSON, BOND, and others committed additional sanctions violations by dealing in and transferring KOSTIN's blocked property. Specifically, the conspirators arranged to sell the Aspen home and provide KOSTIN with approximately $12 million resulting from the sale. * * * KOSTIN, 67, of Russia, is charged with two counts of conspiracy to violate IEEPA, two counts of violating IEEPA, and one count of conspiracy to commit international money laundering, each of which carries a maximum sentence of 20 years in prison. WOLFSON, 56, of Austin, Texas, a legal permanent resident of the U.S., is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA, each of which carries a maximum sentence of 20 years in prison. BOND, 49, of Edgewater, New Jersey, a U.S. citizen, is charged with one count of conspiracy to violate IEEPA and two counts of violating IEEPA, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding work of the FBI and its Washington Field Office. Mr. Williams further thanked the Department of Justice (“DOJ”)’s National Security Division, Counterintelligence and Export Control Section, and DOJ’s Criminal Division, Money Laundering and Asset Recovery Section for their work on this matter. Assistant U.S. Attorneys Emily Deininger and David Felton for the Southern District of New York’s Illicit Finance and Money Laundering Unit, and Trial Attorneys Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section and Oleksandra Johnson of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression. [1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitutes only allegations, and every fact described therein should be treated as an allegation.