title: Former bank manager pleads guilty to bank fraud and aggravated identity theft

body_text: Tacoma –A 44-year-old former bank manager from Battle Ground, Washington, pleaded guilty today in U.S. District Court in Tacoma to Bank Fraud and Aggravated Identify Theft, announced Acting U.S. Attorney Tessa M. Gorman. Brian Davie, a former branch manager at Wells Fargo, used unauthorized cash withdrawals, money transfers, and cashier’s checks to steal over $1 million. Davie targeted elderly and vulnerable customers. Eight victims have been identified. One woman had more than $566,000 stolen from her retirement accounts. Davie is scheduled for sentencing by U.S. District Judge Benjamin H. Settle on January 2, 2024. Davie worked for Wells Fargo in Battle Ground from March of 2014 until he was fired in June 2019. According to records in the case, Davie used his position as a manager at the branch to conduct unauthorized transactions. Davie had access to customer files containing information about bank account balances. Davie hid his criminal activity by repeatedly exchanging cashier’s checks until they were small enough to cash without triggering banking reporting requirements. Davie continued undetected because he stole from elderly customers who might be less likely to closely monitor their account balances. Some of Davie’s victims had dementia or had limited English skills and did not understand banking transactions. In at least one case, Davie failed to file the paperwork to install a victim’s relative as a co-signer on the victim’s accounts. That failure prevented the relative from being able to monitor the account and detect the fraudulent transactions. Davie deposited some of the stolen money in an account he created in the name of a relative’s business. He made some of the cashier’s checks payable to that relative or to the business account he created. Much of the money was withdrawn as cash. In all Davie embezzled S1,279,840 from victim accounts. Wells Fargo reimbursed victims for their losses. Judge Settle will determine the amount of restitution at sentencing. Prosecutors have agreed to recommend a four-year prison sentence. The actual sentence will be determined by Judge Settle who will consider a number of statutory factors before determining the appropriate sentence. This case was investigated by the FBI with assistance from the Wells Fargo investigation team. This case is being prosecuted by Assistant United States Attorney Zachary Dillon.


title: Suburban man convicted of Bitstamp cryptocurrency fraud scheme

component: USAO - Texas, Southern

body_text: HOUSTON – A 37-year-old Sugarland resident has pleaded guilty to aggravated identity theft in connection with a scheme to fraudulently obtain and launder more than $500,000, announced U.S. Attorney Alamdar S. Hamdani. Xiaofei Chen admitted he arranged a fraudulent wire of $520,000 from the victims checking account. Chen opened a Bitstamp cryptocurrency exchange account using the victim’s name and driver’s license without the consent or knowledge of the victim. Chen used the Bitstamp account and other cryptocurrency accounts to convert the proceeds into Bitcoin and laundered the Bitcoin through numerous transactions. U.S. District Judge Alfred H. Bennett accepted the plea and has set sentencing for Jan. 18, 2024. At that time, Chen faces a mandatory of two years in prison. Chen was permitted to remain on bond pending that hearing. FBI conducted the investigation. Assistant U.S. Attorneys Christian Latham and Belinda Beek are prosecuting the case.


title: Indictment Charges Las Vegas Couple with Drug and Money Laundering Conspiracy

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Rushan Lavar Reed, 46, and Celeste Nicole Reed, 26, both of Las Vegas, Nevada, were arrested on charges, filed in U.S. District Court in Washington, D.C., related to the alleged sale of illegal drugs and the laundering of the drug proceeds. The charges were announced today by U.S. Attorney Matthew M. Graves, and Special Agent in Charge Wayne Jacobs of the FBI Washington Field Office’s Criminal and Cyber Division. According to the indictment, unsealed yesterday, starting in March of 2017, the Reeds knowingly conspired with others – known and unknown to the Grand Jury – to distribute and possess with intent to distribute narcotics that included a detectable amount of oxycodone, hydrocodone, and amphetamine. The indictment also alleges that the defendants conducted and attempted to conduct financial transactions involving the proceeds of illegal drug trafficking activity. If convicted, the defendants each face a maximum statutory sentence of 10 years in prison for conspiracy to distribute the illegal drugs and 10 years in prison for conspiracy to commit money laundering. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. This case is being investigated by the FBI’s Washington Field Office and Office of the Inspector General of the District of Columbia, with assistance from the FBI Las Vegas Field Office and U.S. Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorneys Gary Crosby and Andy Wang, of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: District Man Sentenced to Five-Year Prison Term For Assault with Intent to Kill Roommate

component: USAO - District of Columbia

body_text: WASHINGTON – Jose Avelino Felipe, 45, was sentenced today to 60 months in prison for stabbing his female roommate in 2021, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). The defendant pleaded guilty to one count of assault with intent to kill in August 2023 in the Superior Court of the District of Columbia. According to the government’s evidence, on Dec. 4, 2021, Avelino Felipe and his wife were living in the same apartment as the victim and her husband. That evening, Avelino Felipet and the victim’s husband got into a physical altercation in the home. Both men left the home after the altercation. Shortly thereafter, Avelino Felipe returned to the home, where the victim remained. Avelino Felipe went to her bedroom and asked whether she would call the police. She stated she would not. Nevertheless, Avelino Felipe then stabbed the victim twice with a knife, once in the chest, and once in her left shoulder. He fled the apartment before police arrived. The victim required emergency surgery for her injuries. In the immediate aftermath of the assault, the victim’s left lung filled with blood, and her right lung collapsed, requiring the insertion of chest tubes. The MPD's Capitol Area Regional Fugitive Task Force apprehended Avelino Felipe on May 23, 2023. In announcing the sentence, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the MPD. They also expressed appreciation for the work of Assistant U.S. Attorney Matthew Covert, who investigated and prosecuted the case.


title: Judge Sentences Defendant to Five Years for Role in Drug Trafficking Around 7th & O Streets, NW

component: Criminal - Narcotic and Dangerous Drug Section

body_text: WASHINGTON – Harold Augostus Stone, 48, of Washington, D.C., was sentenced today to five years in prison for possession with intent to distribute cocaine base, announced U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne A. Jacobs of the Washington Field Office’s Criminal and Cyber Division, and Acting Chief Pamela Smith of the Metropolitan Police Department (MPD). Stone is one of 20 defendants charged in connection with a wide-ranging drug trafficking investigation centered on the area of 7 th and O Streets, in Northwest Washington, D.C. He pleaded guilty on June 23, 2022. In addition to the prison term, U.S. District Court Judge Reggie B. Walton ordered an additional five years of supervised release. Stone has a prior conviction for first degree murder while armed for a 1992 slaying in the District of Columbia. His sentence was reduced under D.C.’s Incarceration Reduction Amendment Act, and he was released from custody in July 2020. He also has a previous conviction for assault with a deadly weapon in Virginia. According to court documents, in mid-2021 members of the MPD, working with the FBI, began investigating violent crime and drug trafficking activities connected to an open-air drug market at the corner of 7th and O Streets. The investigation revealed that the individuals charged gathered in this area on a regular basis to sell controlled substances that included cocaine base and fentanyl. Law enforcement identified several neighborhood residences the group used as stash houses for storing, processing, and packaging drugs for resale. On May 11, 2022, Stone – aka “Bankroll” – was arrested by four U.S. Park Police on the 1200 block of M Street, NW. At the time, Stone was wearing a satchel and a large puffy jacket. Inside the satchel, officers recovered six knotted bags weighing 98 grams total and $3,242 in cash. The substance in the bags tested positive for cocaine base and weighed more than 28 grams. This case stems from a collaborative investigation by the Violence Reduction Unit (VRU) of MPD’s Violent Crime Suppression Division, the FBI Washington Field Office’s Cross Border Safe Streets Task Force, the Washington Division of the DEA, and the U.S. Park Police. The Cross Border Safe Streets Task Force targets the most egregious and violent street crews operating in the District of Columbia. The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF . The case is being prosecuted by Assistant U.S. Attorneys Kevin Rosenberg and Solomon Eppel of the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office for the District of Columbia, with valuable assistance provided by Assistant United States Attorney Steven Wasserman and former Special Assistant United States Attorney Shaunik Panse.


title: District Man Indicted on Enhanced Second Degree Theft  for October Theft from a CVS

body_text: WASHINGTON – Kinshasa Reddock, 40, of Washington, D.C., was indicted by a grand jury this week in the Superior Court of the District of Columbia on one count of second-degree theft stemming from the Oct. 1, 2023, theft from a CVS store located at 14th and W Streets NW, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith of the Metropolitan Police Department (MPD). Reddock is to be arraigned on Friday, Oct.13, 2023, at a hearing before a Superior Court judge. According to the indictment, at about 5:35 p.m. on Oct. 1, 2023, Reddock entered the CVS store, took various items from the shelves and placed them into a bag. Reddock then promptly left the store bypassing all points of sale without paying for any of the items. He was arrested minutes later, in possession of many of the items, by members of the MPD. Reddock has more than two prior theft convictions, though not from the same occasion, and is therefore subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in prison. This case is being investigated by the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Ariel Lieberman. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty .


title: Marion County Convicted Felon Sentenced To More Than Three Years In Prison For Possessing Ammunition

component: USAO - Florida, Middle

body_text: Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced Mario Jerard Delancy (33, Ocala) to 3 years and 1 month in federal prison for possessing ammunition as a convicted felon. Delancy was also ordered to forfeit the firearm and ammunition from the offense. Delancy had pleaded guilty on May 8, 2023. According to court documents, on June 4, 2022, an officer with the Ocala Police Department conducted a traffic stop on Delancy’s vehicle. A search of the vehicle revealed a loaded firearm tucked under the driver’s seat. At the time of the offense, Delancy had a prior state conviction for felony battery. He is, therefore, prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Ocala Police Department and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Sarah Janette Swartzberg. 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: Maui Man Receives Ten and a Half Years in Prison for Child Enticement and Drug Trafficking

component: USAO - Hawaii

body_text: HONOLULU – On October 10, 2023, United States Chief District Judge Derrick K. Watson sentenced Lyle Cummings, 47, of Maui, to ten and a half years of imprisonment and seven years of supervised release for attempted coercion and enticement of a child to engage in sexual activity, as well as trafficking cocaine and crack. Cummings was tried before a jury in June 2023, and found guilty on all counts. At trial, the United States presented evidence that in March 2020, Cummings communicated online for days with a person he believed to be a 13-year-old girl. During the online conversation, Cummings attempted to persuade, induce, entice, or coerce the minor to engage in sexual activity with him. The defendant then drove his truck to meet her at an agreed-upon location in Kihei, Maui. In reality, the defendant had been communicating with an undercover law enforcement officer, and not a 13-year-old minor. When the defendant arrived at the meet-up location, law enforcement arrested him. The next day, law enforcement executed a search warrant on the truck and found, among other items, cocaine and crack packaged for sale. “This trial revealed how predators like Cummings utilize social media to entice and exploit children, which is appropriately punishable by a mandatory sentence of ten years incarceration,” said U.S. Attorney Clare E. Connors. “The fact Cummings possessed both cocaine and crack when he showed up to engage in sexual activity with a 13-year-old demonstrates the myriad dangers child victims face in these horrific situations.” “HSI special agents won’t ever relent when it comes to protecting children and arresting individuals who prey on our most vulnerable,” said Homeland Security Investigations (HSI) Honolulu Special Agent in Charge John F. Tobon. “Child exploitation is one of the most serious crimes HSI investigates due to the lasting psychological and physical damage it can inflict on victims. We are proud to work closely with our law enforcement partners to make communities safer.” 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 U.S. Attorney’s Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Homeland Security Investigations conducted the investigation that resulted in the indictment. Assistant U.S. Attorneys Christine Olson and Rebecca A. Perlmutter are prosecuting the case.


title: Iowa Nurse Pleads Guilty to Stealing Pain Medication from at Least 50 New Mothers at Waterloo Hospital

component: USAO - Iowa, Northern

body_text: An Iowa nurse who stole pain medication from at least 50 new mothers at a Waterloo hospital pled guilty today in federal court in Cedar Rapids. Christina Eileen Olson, formerly known as Christina Eileen Hovey, age 43, of Waterloo, was convicted of one count of acquiring a controlled substance by misrepresentation, fraud, deception, and subterfuge, one count of adulteration and misbranding with intent to defraud and mislead, and one count of false statements relating to health care matters. At the plea hearing, and in a plea agreement, Olson admitted that the State of Iowa granted her a nursing license in 2004. In 2017, a Waterloo hospital hired Olson to work as a nurse in its labor and delivery unit. As a nurse in the hospital’s labor and delivery unit, Olson was responsible for caring for late-term pregnant women, women in active labor, and post-partum women, including women recovering from recent Caesarean section (“c-section”) surgery. Obstetricians prescribed these women Schedule II narcotics, including hydromorphone, oxycodone, and fentanyl, to control physical pain associated with the birthing process. From January 2022 to March 25, 2022, Olson used her nursing license to gain access to controlled substances in the hospital’s labor and delivery unit. Instead of administering the controlled substances to the women in pain, Olson diverted the controlled substances to herself for her own illicit drug use. Olson admitted she stole narcotics from no less than 50 victims. To cover up her crimes, Olson used a variety of fraudulent means, including falsely documenting that she had administered pain medication to new mothers when she had not done so. Olson also admitted to tampering with pain medication—replacing fentanyl inside a vial with saline and diverting the narcotic for her own use. For example, on March 25, 2022, Olson was supposed to care for three new mothers and their babies during her shift from 3 a.m. to 3 p.m. One of Olson’s victims, known in court documents as “Mother-1,” had given birth via c-section on March 23, 2022, in a high-risk pregnancy. In addition to caring for Mother-1, it was Olson’s responsibility to come into Mother-1’s room and document how much the baby was eating every hour, as this is important to ensure the health of a newborn. Instead of caring for Mother-1 and her baby, however, Olson never came into the room or checked on Mother-1 or her baby or administered pain medication to Mother-1 on March 25, 2023, even though Olson documented in the hospital’s records that she was administering pain medication to Mother-1. Rather, Olson diverted the pain medication to her own use. As a result of Olson’s crimes, Mother-1 suffered “horrible and excruciating pain” on March 25, 2023. Further, because Olson had created false health care records documenting that she had administered the pain medication to Mother-1, the next nurse on shift declined to give pain medication to Mother-1 for at least 30 additional minutes to ensure Mother-1 was not feigning her need for narcotics. And despite repeated requests by Mother-1’s husband for formula, Mother-1’s newborn did not receive any formula until the end of Olson’s shift. The next day, March 26, 2023, Olson was again working first shift at the hospital. During this shift, the hospital drug tested Olson. The drug test was positive for opiates (oxycodone and hydromorphone) and marijuana. Another nurse then found an open fentanyl vial, an open ephedrine vial, and an epidural bag in another new mother’s room. The hospital’s records revealed that Olson had removed these three items under the new mother’s name despite the fact there were no such orders for her. The fentanyl vial had puncture marks on the top and bottom stopper surfaces, and laboratory results later revealed that nearly all the fentanyl in the vial had been replaced with saline. Olson admitted that she routinely drank alcohol and used marijuana while working at the Waterloo hospital. In September 2021, after receiving reports that Olson was disappearing from her shift for extended periods of time, the hospital’s director referred Olson to an employee assistance program. On September 9, 2021, however, Olson took a leave of absence from the hospital for about three months after she was arrested for drunk driving. Olson’s blood alcohol level at the time of her arrest was no less than .274. In July 2022, Olson entered into a settlement agreement with the Iowa Board of Nursing under which she agreed to voluntarily surrender her nursing license for one year. As a part of her plea agreement, Olson has agreed to forfeit her nursing license to the United States. Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Olson remains free on bond previously set. Olson faces a possible maximum sentence of 12 years’ imprisonment, a $750,000 fine, and three years of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Food and Drug Administration, Office of Inspector General, and the Iowa Medicaid Fraud Control Unit. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-2055. Follow us on Twitter @USAO_NDIA.


title: Catoosa Resident Pleads Guilty To Tax Fraud

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Pamela Kathryn Conley, age 61, of Catoosa, Oklahoma, entered a guilty plea to one count of Aiding and Assisting in the Preparation of False Income Tax Returns, which is punishable by up to three years of incarceration and a $250,000 fine. According to investigators, between 2017 and 2020, Conley aided and assisted in the preparation and presentation of false and fraudulent IRS Form 1040 tax returns on behalf of her clients, resulting in fraudulent refunds. Conley fabricated deduction amounts for clients that were unsupported by receipt evidence, including claims for medical expenses, charitable contributions, casualty theft losses, real property and personal property taxes, and job-related expenses, all of which Conley knew to be materially false and fraudulent. The charges arose from an investigation by the IRS-Criminal Investigations, with assistance from the United States Secret Service. The Honorable Gerald L. Jackson, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea, and ordered the completion of a presentence investigation report. Conley is currently in federal custody, serving a sentence imposed by the United States District Court for the Northern District of Oklahoma for other criminal conduct. Special Assistant United States Attorney Michael Pahl and Assistant United States Attorney Kara Traster represented the United States.


title: Justice Department Secures Agreement in Tennessee School Desegregation Case

component: Civil Rights Division

body_text: The Justice Department announced today that it has secured an agreement to improve and expand educational opportunities for students in the Fayette County School District in Tennessee. The consent order was approved by U.S. District Court Judge S. Thomas Anderson for the Western District of Tennessee as part of a longstanding school desegregation case. Under the consent decree, the school district will improve its practices for identifying and serving students in its gifted programs and in dual enrollment classes, which give high school students access to college-level coursework; bolster efforts to recruit and retain diverse faculty; and revise student discipline policies to prevent racial discrimination and support a positive climate, including by ending the use of corporal punishment. “School desegregation and equal access to a quality education was critically important nearly 70 years ago when the Supreme Court decided Brown v. Board , and it is critically important today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to making real the promise of Brown and dismantling the legacy of discrimination in our schools . This consent decree is a giant step forward for students deserving of racially just and equitable outcomes in Fayette County Schools. These reforms will expand access to enriched academic opportunities and give students the positive, inclusive learning environment they need to thrive.” As part of the consent decree, the court declared the district had met its desegregation obligations in several areas of operations, including staff assignment, facilities, transportation and extracurricular activities. The consent decree also provides that the district will, among other requirements: Work with the Justice Department and private plaintiffs represented by the NAACP Legal Defense Fund to develop an effective and sustainable student assignment policy to further desegregation in its schools; Adopt a plan to ensure that all students, including Black students, are properly identified for enrollment in its gifted program and that the district delivers gifted services to properly designated students in a nondiscriminatory manner; Review its enrollment in advanced and dual enrollment courses in secondary schools to identify any racial disparities and implement practicable responses designed to reduce barriers that limit the participation of Black students; Work with a consultant to implement changes to its student discipline policies designed to reduce racial disparities in discipline, and instill positive reinforcement techniques; Eliminate the use of corporal punishment, a practice that undermines effective implementation of positive behavioral interventions; and Conduct a comprehensive review of the district’s hiring policies and procedures to identify racial disparities in the recruitment, hiring, promotion and retention of Black faculty and implement appropriate remedial measures. Next year marks the 70th anniversary of the U.S. Supreme Court’s decision in Brown v. Board of Education . The Justice Department’s Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can access the building blocks of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt , and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section . Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report . fayette_consent_order.pdf


title: Ten Individuals Charged for $950,000 COVID-19 Relief Fraud Schemes

component: USAO - Tennessee, Western

body_text: Memphis, TN – A federal grand jury in the Western District of Tennessee returned an indictment yesterday charging ten individuals for their roles in schemes to defraud the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP), federal stimulus programs authorized as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to court documents, the defendants allegedly obtained funds under the EIDL program and PPP by submitting false and fraudulent loan applications that collectively sought over $950,000. The defendants are alleged to have submitted applications on behalf of businesses and entities they purportedly owned, knowing that the applications contained materially false statements and misrepresentations concerning, among other things, the purported entities’ number of employees, gross revenues, costs of goods sold, average monthly payroll, and the date on which the entities were established. The defendants then allegedly used the loan funds for purposes not authorized by the EIDL program or PPP, including for personal expenses. Below are the ten defendants and their charges: Rodrick Flowers , 47, of Memphis, Tennessee, is charged with 12 counts of wire fraud. Flowers was the owner of Ezential Consulting & Management Firm LLC and Rodrick Flowers. He allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of Ezential Consulting & Management Firm LLC, for which he obtained approximately $37,000 in EIDL proceeds and approximately $74,450 in PPP loan proceeds. Flowers also submitted or caused to be submitted eight fraudulent EIDL applications and two fraudulent PPP applications on behalf of entities owned by each of his co-defendants. Stephen Brown , 44, of Memphis, is charged with two counts of wire fraud. Brown was the owner and pastor of Light of Glory International Church and Stephen Brown Ministries. He allegedly submitted a fraudulent EIDL application on behalf of Light of Glory International Church and a fraudulent PPP application on behalf of Stephen Brown Ministries, for which he obtained approximately $149,900 in EIDL proceeds. LaTonya Herman , 44, of Memphis, is charged with two counts of wire fraud. Herman was the owner of LaTonya Herman. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $93,800 in EIDL proceeds. Jarvys Jones , 38, of West Memphis, Arkansas, is charged with two counts of wire fraud. Jones was the owner and pastor of The Temple of Refuge, also referred to as Temple of Refuge Inc and Refuge. He allegedly submitted a fraudulent EIDL application on behalf of Refuge and a fraudulent PPP application on behalf of Temple of Refuge Inc, for which he obtained approximately $20,000 in EIDL proceeds. Brian Mays , 40, of Olive Branch, Mississippi, is charged with one count of wire fraud. Mays was the owner of A-Mays-in-Trucking. He allegedly submitted a fraudulent EIDL application on behalf of his business, for which he obtained approximately $107,400 in EIDL proceeds. Diane Moss , 60, of Blytheville, Arkansas, is charged with two counts of wire fraud. Moss was the owner of The Station, Diane’s Boutique, and Diane Moss. She allegedly submitted a fraudulent EIDL application on behalf of The Station and a fraudulent PPP application on behalf of Diane Moss, for which she obtained approximately $99,300 in EIDL proceeds and approximately $28,420 in PPP loan proceeds. Mary Payne , 61, of Memphis, is charged with two counts of wire fraud. Payne was the owner of Right Now Staffing LLC. She allegedly submitted a fraudulent EIDL application and a fraudulent PPP application on behalf of her business, for which she obtained approximately $4,000 in an EIDL advance. Krystall Sherrod , 34, of Memphis, is charged with one count of wire fraud. Sherrod was the owner of Krystal Sherrod. She allegedly submitted a fraudulent EIDL application on behalf of her business for which she obtained approximately $83,300 in EIDL proceeds. Frederick Smith , 54, of Cordova, Tennessee, is charged with two counts of wire fraud. Smith was the owner and pastor of New Life Holiness Church. He also owned Fred Smith Ministries and Frederick Smith, and was the owner and trustee in bankruptcy for New Life Holiness BK. Smith allegedly submitted a fraudulent EIDL application on behalf of Fred Smith Ministries and a fraudulent PPP application on behalf of New Life Holiness BK, for which he obtained approximately $150,275 in PPP loan proceeds. Cleveland Wells , 65, of Memphis, is charged with two counts of wire fraud. Wells was the owner and pastor of Glory to God Ministries. He also owned Don’t Worry About it Home Solutions, aka Cleveland Wells Jr. dba Don’t Worry About it Home Solutions. Wells allegedly submitted a fraudulent EIDL application on behalf of Glory to God Ministries and a fraudulent PPP application on behalf of Cleveland Wells Jr. dba Don’t Worry About it Home Solutions, for which he obtained approximately $149,900 in EIDL proceeds. If convicted, they each face a maximum penalty of 20 years in prison on each wire fraud count. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kevin G. Ritz for the Western District of Tennessee, Special Agent in Charge Mark H. Morini Jr. of the Treasury Inspector General for Tax Administration (TIGTA), Special Agent in Charge Edwin Bonano of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), and Special Agent in Charge Anand Ramiall of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement. TIGTA, FHFA-OIG, and FDIC-OIG are investigating the case. Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Carroll Andre for the Western District of Tennessee are prosecuting the case. In May 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 augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus . The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud . Anyone with information about attempted fraud concerning COVID-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721 or filing an online complaint at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: United States Attorney’s Office Hosts United Against Hate Event in Des Moines

component: USAO - Iowa, Southern

body_text: DES MOINES, IA – The United States Attorney’s Office for the Southern District of Iowa will host a public outreach event focused on identifying and reporting hate crimes on Thursday, October 19, 2023, from 5:00 p.m. to 6:30 p.m. at the Polk County River Place, located at 2309 Euclid Avenue in Des Moines. United Against Hate is a Department of Justice initiative aimed at combating unlawful acts of hate by educating the public about federal hate crimes and anti-discrimination statutes. The program encourages the reporting of hate crimes, hate incidents, and unlawful discrimination to law enforcement and the Department of Justice. “Hate crimes have a detrimental impact not only on the victims but the entire community. We look forward to providing a forum for subject matter experts to answer questions and shed some light on the laws and processes,” said United States Attorney Rich Westphal. The United Against Hate event will include an interactive panel discussion featuring representatives from FBI, local law enforcement, Iowa County Attorneys Association, and Polk County Crisis and Advocacy Services, as well as speakers sharing their experiences responding to acts of hate. Please RSVP for the event to karen.saltos@usdoj.gov. To report a hate crime to the FBI, please call 1-800-CALL-FBI, submit a tip at tips.fbi.gov, or contact your local field office.


title: Wimauma Man Charged With Receiving And Possessing Child Sexual Abuse Material

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Falzone (55, Wimauma) with receipt of child sex abuse material and possession of child sex abuse material. If convicted on all counts, Falzone faces a minimum mandatory penalty of 5 years, up to 40 years, in federal prison. According to the indictment, on October 18, 2022, Falzone received a visual depiction of a minor being sexually abused. Additionally, Falzone possessed material that depicted young children being sexually abused. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorneys Abigail K. King and Ross Roberts. 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: Two Members Of Drug Trafficking Conspiracy Sentenced

body_text: Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Heriberto Castillo (44, Denton, Texas) to seven years in federal prison for conspiracy to distribute and possess with the intent to distribute cocaine and fentanyl. His co-conspirator, David Ceballos (27, Alvarado, Texas), was sentenced to three years and one month imprisonment for possession with the intent to distribute cocaine. Castillo had pleaded guilty on November 28, 2022, and Ceballos had pleaded guilty on June 5, 2023. According to court documents, in the summer of 2021, Castillo was part of a drug trafficking conspiracy that was sending narcotics to the Middle District of Florida. On August 3, 2021, Castillo, while still in Texas, delivered approximately 15 kilograms of cocaine that was destined for the Middle District of Florida. Castillo then flew to Florida on multiple occasions to collect the proceeds, including to pick up a semi-truck tire that was supposed to contain over $400,000. Also, according to court documents, in August 2021, Ceballos traveled from Texas to Bradenton to distribute approximately six kilograms of cocaine. On August 26, 2021, Ceballos was arrested in Bradenton while transporting the cocaine. This case was investigated by the Drug Enforcement Administration as part of the Organized Crime Drug Enforcement Task Force (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF . It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Diego F. Novaes.


title: Armed Career Criminal Sentenced To More Than 15 Years For Possessing A Firearm And Ammunition

body_text: Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Deterrio M. Young (29, Tampa) to 15 years and 10 months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Young to forfeit the firearm and ammunition. Young had pleaded guilty on February 2, 2023. According to court documents, Young had previously been convicted of battery on a law enforcement officer, obstructing or opposing an officer with violence, and aggravated assault. On July 28, 2021, law enforcement received a call that Young had recently been in possession of a firearm. When law enforcement arrived at the scene, Young fled. After a short pursuit, Young was detained, and officers found a magazine in his possession with seven rounds of ammunition. Officers also located the firearm, and DNA from the firearm was later determined to be a match for Young. As a previously convicted felon, Young is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Tampa Police Department. It was prosecuted by Assistant United States Attorneys Michael R. Kenneth and Callan Albritton. 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: Colchester Man Sentenced to 44 Months for Possessing Firearm as a Convicted Felon

component: USAO - Vermont

body_text: Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on October 10, 2023, Dennis Martin, 42, of Colchester, Vermont, was sentenced to serve 44 months in prison for unlawfully possessing a firearm as a convicted felon. U.S. District Judge Christina Reiss also ordered Martin to serve a three-year term of supervised release. Martin was convicted by a jury on February 9, 2023. The evidence at trial included a Snapchat video Martin sent to his mother-in-law on February 18, 2019, in which he brandished a firearm. According to trial testimony, Colchester Police, with the assistance of the Vermont State Police Tactical Services Unit, arrested Martin later in the day on February 18, 2019, from a vehicle near his Colchester residence. A search of the vehicle resulted in a seizure of a Ruger model LCP .380 caliber pistol with a laser sight. An analyst with the Bureau of Alcohol, Tobacco, Firearms, and Explosives testified that the firearm in the video appeared to be the same firearm from the Snapchat video and explained the similarities to the jury. According to court records, on February 17, 2019, the day before Martin sent the Snapchat video, Martin’s then-wife reported ongoing domestic abuse perpetrated by Martin. Martin’s arrest on February 18, 2019, was for felony domestic assault and disorderly conduct with an electronic device based upon the Snapchat video. Martin was ultimately convicted for misdemeanor domestic assault and disorderly conduct by phone in Vermont Superior Court and sentenced to 363 to 364 days of jail. The evidence at trial also showed that in 2015, Martin was convicted of a felony in Philadelphia, Pennsylvania, and sentenced to five years’ probation. According to court records, that felony was possession with the intent to distribute cocaine base. Martin testified at his Vermont federal trial that he did not know his prior conviction was a felony. Witnesses for the United States at trial included Martin’s probation officer and the prosecutor who prosecuted Martin in Pennsylvania, both of whom testified that Martin would have been made aware multiple times that his Pennsylvania conviction was for a felony. Evidence at trial also included paperwork Martin had signed that stated in multiple places that his offense was a felony. At his sentencing on October 10, 2023, the Court found that Martin’s use of the firearm in the Snapchat video, in which he also made threatening statements, was conduct relevant to his unlawful firearm possession and constituted the federal felony of transmitting a threat in interstate commerce. The Court enhanced the sentence calculation accordingly under the U.S. Sentencing Guidelines. The Court also found that Martin obstructed justice by lying under oath at trial when he denied knowing his prior conviction was a felony and, as a result, applied an additional Sentencing Guidelines enhancement. United States Attorney Nikolas P. Kerest commended the collaborative investigatory efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Colchester Police Department, and the Vermont State Police. This case was prosecuted by Assistant U.S. Attorneys Jonathan Ophardt, Corinne Smith and Wendy Fuller. Mr. Martin was represented by Michelle Anderson Barth, 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 https://www.justice.gov/psn.


title: Pain Clinic Doctor Sentenced To Prison For Unlawful Drug Distribution, Money Laundering, And Filing A False Tax Return

body_text: Tampa, Florida – U.S. District Judge Charlene E. Honeywell today sentenced Qing McGaha to seven years and eight months in federal prison for unlawful drug distribution, money laundering, and filing a false tax return. The court also ordered McGaha to forfeit an office condominium, which is traceable to proceeds of the offense, pay $100,000 in criminal fines, and $119,462.34 in restitution to the Internal Revenue Service. As part of her sentence, McGaha also forfeited $774,216.12 in cash seized from her residence and $170,512.34 seized from her two bank accounts, which were proceeds of her criminal conduct. A federal jury had found McGaha guilty on June 16, 2023. According to court documents, McGaha was a Florida-licensed medical doctor who owned and operated MD Care Clinic, a pain management clinic in Hillsborough County. Over a 20-month period, undercover agents with the Drug Enforcement Administration conducted numerous appointments with McGaha. At each appointment, they received hydrocodone, hydromorphone, or oxycodone, Schedule II controlled substances, not for a legitimate medical purpose in the usual course of professional practice. Between January 2016 and January 2021, McGaha distributed more than 2.1 million opioid pills. In addition, McGaha engaged in multiple monetary transactions over $10,000 in funds criminally derived from the operation of her clinic. She used these funds to purchase a piece of real property located in Clearwater and deposited the, into her bank account. In 2021, McGaha filed false and fraudulent tax forms for tax year 2020 that underreported MD Care’s gross revenue by nearly $300,000. “Medical professionals who put personal profit over the safety and health of their patients by prescribing controlled substances without legitimate medical need violate both their oath to ‘do no harm’ as well as the Controlled Substances Act, ” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentence is a testament to the DEA Miami Field Division’s commitment to working with our law enforcement partners to pursue those medical professionals who violate the public’s trust and put our communities at risk.” “Dr. McGaha greedily ignored her oath to put her patients first - she thought she could get away with using her pill mill to doctor scripts that put harmful drugs on the streets,” said Brian Payne, special agent in charge of the IRS Criminal Investigation, Tampa Field Office. “To make matters worse, she then tried to evade her tax obligations by failing to report the fruits of her crimes to the IRS. The fall of another tax evading pill mill is a victory for all law enforcement involved.” This case was investigated by the Drug Enforcement Administration—Tampa District Office, the Internal Revenue Service—Criminal Investigation, the Lakeland Police Department, the Tampa Police Department, the Largo Police Department, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. This case was also part of the Organized Crime Drug Enforcement Task Force. It was prosecuted by Assistant United States Attorneys Greg Pizzo and Suzanne Nebesky.


title: Springfield Man Indicted After Ramming Airport Gate, Driving Onto Runway

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Springfield, Mo., man has been indicted by a federal grand jury after driving his truck through a gate and onto a runway at the Springfield-Branson National Airport. Gary Eugene Edwards, 58, was charged with damaging and interfering with an air navigation facility in an indictment returned by a federal grand jury in Springfield on Tuesday, Oct. 10. The indictment alleges that Edwards caused damage to the Springfield-Branson National Airport and interfered with the operation of the airport on Sunday, Oct. 8, 2023. Airport police arrested Edwards following a short pursuit after he rammed an airport gate while driving a gold Ford F-150 pickup truck. An airport police officer activated his emergency lights and siren and attempted to stop Edwards. However, Edwards refused to stop and drove onto the tarmac and runway of the airport, then drove back through the damaged gate as he fled from the officer. Airport police officers pursued Edwards as he drove over several curbs before stopping in front of the terminal building. Edwards ran into the building and was taken into custody. The charge contained in this indictment is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI and the Springfield-Branson National Airport Police.


title: Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle  False Claims Act Allegations Relating to Paycheck Protection Program Loan

component: Civil Division

body_text: Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted. Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full. “PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.” “Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.” “This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.” “The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.” The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al. , No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement. The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General. This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international 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 www.justice.gov/coronavirus . Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Former Federal Contract Employee Pleads Guilty to Child Pornography

body_text: KANSAS CITY, Mo. – A former Lenexa, Kansas, man pleaded guilty in federal court today after child pornography was found on the cell phone he carried into a secure area at the U.S. Department of Energy national security campus in Kansas City, Mo. Shaun Walker, 41, currently a resident of Springfield, Mo., pleaded guilty before U.S. District Judge Stephen R. Bough to one count of attempting to distribute child pornography over the internet. Walker was employed by Honeywell Federal Manufacturing and Technology, which is contracted by the Nuclear National Security Administration, at the time of the offense. According to court documents, Walker entered an inner secure area of the U.S. Department of Energy National Security Campus in Kansas City, Mo., with his personal cell phone on Nov. 29, 2021. Walker contacted Kansas City National Security Campus Security to self-report the violation. Walker gave his cell phone to security personnel, who reviewed the cell phone to determine if any classified material was present on the phone. During the review, a security officer observed numerous images and videos depicting child pornography. Walker’s phone was seized in order to conduct a forensic examination. Investigators found an encrypted folder on Walker’s cell phone that contained 21 images and a video of a 5-year-old girl who is known to Walker. Investigators found dozens of additional images and videos of child pornography on Walker’s cell phone. Investigators also found thousands of WhatsApp chats between Walker and females he contacted through a livestreaming pornography website. Walker requested photos and videos of nude underage females conducting sexual acts. As a result of his WhatsApp chats, Walker received and distributed images and videos of child pornography. Under federal statutes, Walker is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Department of Energy, Office of Inspector General. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."


title: U.S. Attorney’s Office Partnering with Indiana Disability Rights to Ensure Early Voting Sites are Accessible for All Voters

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- The United States Attorney’s Office for the Southern District of Indiana (USAO) and Indiana Disability Rights (IDR) are partnering to survey the accessibility of early polling sites for 2023 General Election. The project, “Access the Vote,” uses survey results to inform County Clerks about individualized solutions to ensure their polling places are accessible to voters with disabilities. IDR has conducted accessibility surveys, based on the United States Department of Justice’s Americans with Disabilities Act (ADA) Checklist for Polling Places , during early voting in several primary and general elections. The USAO’s participation provides needed additional personnel to survey more counties and helps to raise awareness of the Access the Vote project. The ADA requires all aspects of in-person voting – both early and on Election Day – to comply with accessibility requirements, including those for accessible parking and the route of travel to the voting area. The Help America Vote Act (HAVA) mandates additional accessibility measures, such as the provision of a working accessible voting machine at each polling place. Using a combination of IDR and USAO staff, as well as trained community partners, Access the Vote identifies potential ADA and HAVA violations and opportunities to remedy them. “Voting is a fundamental right and civic duty. Everyone who wishes to vote in-person deserves to do so without barriers,” said Kristin Dulaney, IDR’s Project Manager for Access the Vote. “We welcome the support of the USAO to expand our Access the Vote initiative and serve more voters with disabilities who will cast their ballot this fall throughout Indiana.” “Having your voice heard at the ballot box is a fundamental part of being an American. Every voter deserves the opportunity to cast their ballot in-person without barriers—and our laws require election officials to ensure access to the polls,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Through the Access the Vote project, we are teaming up with Indiana Disability Rights to help ensure that polling places comply with the Americans with Disabilities Act, and to educate election administrators on how to make their polling sites accessible. We will work together to see that all eligible Hoosiers are able to fully participate in our elections.” For more information on the U.S. Attorney’s Office’s initiatives to protect Civil Rights, please visit our website. U.S. Attorney Myers thanked Assistant U.S. Attorney Jeffrey D. Preston, who leads the office’s civil enforcement of civil rights laws and the Access the Vote project. Myers also thanked all the office’s professionals who volunteered to help ensure voters’ rights under law. ###


title: Convicted Felon Sentenced to 10 Years in Federal Prison for Possessing Fentanyl, Firearms and Ammunition

component: USAO - New Hampshire

body_text: CONCORD – A Weare man was sentenced today to ten years in federal prison for possessing firearms and ammunition as a prohibited person, and possessing with intent to distribute fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces. Brian Elliott, age 32, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 120 months in prison and 5 years of supervised release. On June 8, 2023, Elliott pled guilty to one count of possessing with intent to distribute fentanyl, and two counts of being a felon in possession of firearms and ammunition. “The lengthy sentence imposed by the Court on the defendant is just punishment for the egregious nature of his conduct,” U.S. Attorney Young stated. “The defendant was a convicted felon who possessed multiple firearms and ammunition, and attempted to poison our community with large amounts of fentanyl. He pointed a weapon at a police officer, and later engaged in a standoff with police officers in Manchester during his flight from his crime spree. The message from the courthouse today was clear: this dangerous conduct will not be tolerated in New Hampshire.” On May 22, 2021, Elliott fled on foot following a vehicle stop by a Goffstown Police Department officer. Elliott drove his vehicle at a high rate of speed on the wrong side of the road prior to jumping from his moving vehicle in order to flee from the pursuing officer. During a subsequent foot chase, he pointed a gun at the officer and threatened to shoot the officer. As described in the plea agreement, Elliott dropped a backpack containing approximately 138 grams of fentanyl and over 100 rounds of various types of ammunition. A loaded firearm was also recovered from the scene the next day. On May 24, 2021, Elliott was apprehended at a Holiday Inn in Manchester, after negotiators succeeded in getting him out of his room. A subsequent search of his hotel room yielded additional fentanyl, as well as another firearm and ammunition. Elliott was a convicted felon and was thus legally prohibited from possessing firearms. The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Goffstown Police Department and Manchester Police Department. Assistant U.S. Attorneys Aaron Gingrande and Cam Le are prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Annual Awards Ceremony Held to Recognize Outstanding Performances by Western Pennsylvania Law Enforcement and Prosecutors

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH - The Law Enforcement Agency Directors (LEAD) of Western Pennsylvania recognized dozens of area law enforcement officers and prosecutors during its 25th Annual LEAD Awards Ceremony on Thursday, October 5, 2023, announced United States Attorney Eric G. Olshan. Comprising the Western Pennsylvania heads of federal, state, and local law enforcement agencies, LEAD bestows awards annually as a way to recognize outstanding work by law enforcement agents and officers, as well as prosecutors. Notable among the LEAD Awards presented on Thursday were: • The Courage Under Hostile Fire Award was presented to Pittsburgh Bureau of Police Officers Anthony Burke, Jonathan Craig, Jeffrey Garris, Jeremy Hurley, Timothy Matson, Daniel Mead, Stephen Mescan, Andrew Miller, John Persin, Joshua Robey, Michael Saldutte, Michael Smidga, and Clint Thimons for their response at the Tree of Life Synagogue in Squirrel Hill on October 27, 2018. Each of these Pittsburgh Bureau of Police Officers was recognized for exhibiting exceptional courage and professionalism, and their acts of bravery unquestionably prevented further bloodshed. • The Lifetime Service Award was presented to (Retired) Special Agent Patrick M. (Rick) McGlennon for his outstanding service with the Federal Bureau of Investigation (FBI). Retired Special Agent McGlennon began his employment in law enforcement as a police officer for the Borough of Wilkinsburg, where he worked for four years and obtained the rank of Detective. In 1984, he was hired by the FBI, where he served as a Special Agent for over 33 years. Agent McGlennon served as the primary case agent on the investigation and prosecution of Christina Korbe for the homicide of FBI Special Agent Samuel Hicks in November 2008 during the execution of an arrest warrant for Korbe’s husband. Since retiring from the FBI in December 2017, Agent McGlennon has continued his strong commitment to public safety and joined the National Threat Operations center at the FBI’s Criminal Justice Information Services Division (CJIS). • An individual LEAD award was presented to Assistant U.S. Attorney Paul Sellers of the Erie Branch Office of the U.S. Attorney’s Office. Mr. Sellers led the investigation of the 4Nation gang which distributed large quantities of drugs and committed numerous acts of violence on the East Side of Erie since 2012. The grand jury returned an indictment against 58 defendants, and the FBI and other law enforcement agencies seized 119.2 pounds of methamphetamine, 180,018 fentanyl pills (19.8 kilograms), 5.22 kilograms of cocaine, 4.95kilograms of fentanyl powder, 709.59 grams of fentanyl analogues, several pounds of marijuana, 33 guns, and $235,151 in cash. This was the first RICO (Racketeer Influenced and Corrupt Organizations Act) brought in the Erie subdivision of the Court. • Supervisory Deputy United States Marshal Jeremy DeLano also received an individual LEAD award. Deputy DeLano played a leading role in the capture of Michael Burham, who escaped from the Warren County Jail on July 6, 2023. Burham was awaiting trial on kidnapping charges, and was also a suspect in the rape and murder of his ex-girlfriend. Deputy DeLano assembled a large team of Deputy U.S. Marshals and Task Force Officers, utilized the latest technological tools, and obtained an Unlawful Flight to Avoid Apprehension federal arrest warrant, all of which led to the capture of Burham on July 15, 2023. LEAD is composed of the following law enforcement agencies and their representatives: Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Attorney's Office - Western District of Pennsylvania; U.S. Immigration and Customs Enforcement/Homeland Security Investigations; IRS - Criminal Investigation; U.S. Department of Homeland Security, Transportation Security Administration; U.S. Department of Defense - Defense Criminal Investigative Service; U.S. Department of Housing and Urban Development; U.S. Marshals Service; U.S. Postal Service, Office of Inspector General (OIG); U.S. Postal Inspection Service; U.S. Probation & Pretrial Services; United States Secret Service; U.S. Social Security Administration - OIG; U.S. Department of State – Diplomatic Security Service; U.S. Department of Transportation, Federal Air Marshal Service; the U.S. Department of Veterans Administration - OIG; U.S. Department of Labor - OIG; U.S. Department of Agriculture - OIG; U.S. Department of Homeland Security – Federal Protective Service; U.S. Food and Drug Administration – Office of Criminal Investigations; Pennsylvania Office of Attorney General; Pennsylvania State Police; Pennsylvania Board of Probation and Parole; Western Pennsylvania Chiefs of Police Association; Allegheny County Police Department; Allegheny County Sheriff=s Office; Allegheny County District Attorney=s Office; Allegheny County Chiefs of Police Association; Washington County District Attorney’s Office; Westmoreland County District Attorney’s Office; and the Pittsburgh Bureau of Police.


title: Victory Automotive Group Inc. Agrees to Pay $9 Million to Settle False Claims Act Allegations Relating to Paycheck Protection Program Loan

body_text: Port Richey, Florida-based automotive management company Victory Automotive Group Inc. (VAG) has agreed to pay $9 million to resolve allegations that it violated the False Claims Act (FCA) by knowingly providing false information in support of a Paycheck Protection Program (PPP) loan forgiveness application it submitted. Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized these businesses to seek forgiveness of the loans if they spent the loan funds on eligible expenses. Only small businesses were eligible for PPP loans. Whether an applicant qualified as a small business depended on various factors, including the number of employees, amount of revenues and net worth of the applicant, along with any other corporate affiliates that share common operational control. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. VAG’s application for a PPP loan certified it was a small business with fewer than 500 employees. However, VAG shared common operational control with dozens of automobile dealerships across the country, and VAG and its affiliates had more than 3,000 employees in total. For that reason, VAG was not eligible for the $6,282,362 PPP loan it received, which was later forgiven in full. “PPP loans were intended to help small businesses during the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of the PPP program and knowingly obtained PPP funds for which they were not eligible.” “Even though the PPP Program has ended, our mandate to investigate and redress the harm from improper PPP loans to companies and sole proprietors continues,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to seek repayment of those loans and, where appropriate, additional sanctions from applicants who obtained a loan to which they were not entitled.” “This resolution demonstrates the department’s resolve in pursuing businesses that improperly received pandemic relief funds,” said Director Michael C. Galdo of the Justice Department's COVID-19 Fraud Enforcement. “I want to thank the Small Business Association (SBA) and our law enforcement partners for their assistance with the Justice Department’s pandemic fraud enforcement efforts.” “The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said SBA General Counsel Therese Meers. “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.” The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit is captioned U.S. ex rel. Jones v. Victory Automotive Group, Inc, et al. , No. 8:21-cv-1742 (M.D. Fla.). The whistleblower will receive a total of approximately $1.62 million in connection with the settlement. The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA's Office of Inspector General. This matter was handled by Senior Trial Counsel Benjamin C. Wei of the Civil Division and Assistant U.S. Attorney Lindsay Saxe Griffin for the Middle District of Florida, with assistance from Christopher J. McClintock of the SBA. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international 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 www.justice.gov/coronavirus . Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department's National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: CEO And Business Partner Charged With Massive Scheme To Defraud New York City’s Homeless Services Programs

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn E. Strauber, the Commissioner of the New York City Department of Investigation (“DOI”), announced today the indictment of PETER WEISER and THOMAS BRANSKY for conspiring to defraud the City of New York (the “City”) of millions of dollars through a multifaceted scheme to corruptly profit from the provision of temporary housing and homeless services in New York City. BRANSKY was the Chief Executive Officer of Childrens Community Services, Inc. (“CCS”), a purported not-for-profit homeless services provider formed and initially funded in part by WEISER. BRANSKY, in turn, fraudulently steered lucrative service contracts ultimately paid for by the City to a group of entities owned and controlled by WEISER. WEISER and BRANSKY intentionally concealed WEISER’s involvement in the formation and operation of CCS and his ownership and control of certain entities that contracted with CCS, including by submitting false statements and documents to the City. WEISER and BRANSKY were arrested earlier today and will be presented before U.S. Magistrate Judge Valerie Figueredo in Manhattan federal court later today. The case is assigned to U.S. District Judge Vernon Broderick. U.S. Attorney Damian Williams said: “As alleged, the defendants engaged in a yearslong scheme to pocket millions in taxpayer dollars through the systematic exploitation of City programs intended to meet the basic needs of some of the most vulnerable New Yorkers – homeless men, women, and children. Worse still, the defendants allegedly perpetrated this massive scheme under the guise of a not-for-profit organization named ‘Childrens Community Services.’ Thanks to the persistent efforts of the New York City Department of Investigation and the Special Agents and career prosecutors of my Office, these two men will face justice for their brazen graft.” DOI Commissioner Jocelyn E. Strauber said: “These two defendants, as charged, used New York City’s need for providers of homeless services as an opportunity for fraud and personal profit. Through a nonprofit entity, Childrens Community Services, and related companies, the defendants caused the City to pay over $50 million that the City would not otherwise have paid to these entities, including in inflated prices and unreasonable mark-ups for goods and services, as alleged in the Indictment. As charged, the defendants concealed their scheme by straw ownership of companies, false statements, and fictitious bids. I am grateful for the meticulous, exhaustive work of DOI's investigators and of the U.S. Attorney's Office for the Southern District of New York, our partners in the fight to protect critical public resources from wrongdoers, and for the cooperation of the City Department of Social Services.” According to allegations in the Indictment filed in Manhattan federal court: [1] From at least in or about 2014 through at least in or about January 2020, THOMAS BRANSKY, who was the Chief Executive Officer of CCS, and his business partner, PETER WEISER, conspired to defraud the City agencies responsible for the administration of homeless services. Between in or about November 2014 and in or about February 2020, CCS was awarded 12 contracts with the City worth approximately $913 million. BRANSKY fraudulently steered lucrative service contracts with CCS — contracts ultimately paid for by the City — to a group of affiliated entities owned and controlled by WEISER (the “Weiser Entities”). To carry out their scheme, WEISER, BRANSKY, and other individuals who worked with them intentionally concealed WEISER’s involvement in the formation and operation of CCS and his ownership and control of certain of the Weiser Entities from the City, including by submitting false statements and documents to the City. WEISER and his associates created the Weiser Entities to profit unlawfully from the City’s provision of homeless services by capturing downstream revenues arising from CCS’s massive contracts with the City. For the most part, the Weiser Entities were created for the sole purpose of providing goods and services to CCS. WEISER and BRANSKY attempted to disguise the Weiser Entities as legitimate providers of, among other things, IT services and hardware, security services, office and living furniture, and food services. In reality, and with few exceptions, the Weiser Entities were fly-by-night companies with no or few employees. In most cases, the Weiser Entities obtained goods and services from legitimate third-party vendors and then re-sold those goods and services to CCS at marked-up and, in some cases, grossly inflated prices. For example: Delta IT Solutions LLC (“Delta”) : In or about December 2016, WEISER and his associates created the Weiser Entity Delta to sell IT services and hardware to CCS at inflated prices and in violation of the City’s conflict-of-interest policies. Internal Delta records reflect significant markups for goods that Delta purchased from vendors (such as Amazon and Staples) and resold to CCS. For example, an internal Delta pricing list from 2019 shows markups of up to 330% for items such as routers, printer cables, and surge protectors. Likewise, Delta charged a 331% markup for telecom services that Delta obtained from a third-party provider. These exorbitant markups were not disclosed to the City. AMX Distributors, LLC (“AMX”) : WEISER and one of his associates created the Weiser Entity AMX to source and supply various consumer goods, including furniture, to CCS at inflated prices and in violation of the City’s conflict-of-interest policies. Through AMX, WEISER sold furniture and supplies to CCS, including, among other things, beds, mattresses, sheets, towels, pillows, sofas, cribs, microwaves, refrigerators, chairs, tables, and toiletries. WEISER sold these goods to CCS at unjustified markups of up to 309%. 511 Realty Management, LLC (“511 Realty”) : CCS contracted with a Weiser Entity called 511 Realty to lease certain residential and commercial properties. However, 511 Realty provided no legitimate services. Instead, 511 Realty made monthly rent payments to third-party landlords on CCS’s behalf. For this, 511 Realty charged hefty markups to CCS and, as a result, the City. For example, CCS would make monthly payments to 511 Realty of approximately $24,000 for CCS’s office space in the Rockaway Offices. 511 Realty, in turn, would pay the landlord $17,500 monthly, representing a 37% markup, for essentially doing nothing more than writing a check; the markup increased to 46% by in or around 2019. Pronto Cleaning Services, LLC (“Pronto”) : A Weiser Entity called Pronto Cleaning contracted with a legitimate janitorial services company to provide cleaning services at CCS offices and facilities. Pronto, which had no employees, resold those cleaning services to CCS at an approximately 56% markup, which was paid for by the City. WEISER and BRANSKY, along with their coconspirators, attempted to conceal the scheme from the various City agencies and components responsible for the administration of homeless services. The defendants and their coconspirators solicited straw owners to appear on paper as the owners of the Weiser Entities when, in reality, WEISER owned, financed, and controlled each Weiser Entity. Moreover, WEISER, BRANSKY, and their coconspirators made and caused to be made false statements to City officials and personnel about, among other things, the ownership of the Weiser Entities, the interconnectedness of the Weiser Entities, the selection process through which CCS awarded contracts to the Weiser Entities, and the ability and experience of the Weiser Entities in providing quality goods and services. Likewise, to evade and bypass the City’s fraud-detection and cost-saving policies and procedures, WEISER and BRANSKY, along with their coconspirators, caused CCS to award contracts to the Weiser Entities without using a competitive bidding process, conducting proper due diligence, completing necessary documentation, or obtaining requisite approvals. When questioned by the City, BRANSKY at times made and caused to be made false statements, including that the required documentation had been misplaced when, in fact, it had never been completed. At other times, WEISER created and/or solicited fictitious competing bids and caused those fictitious bids to be submitted to the City to secure contracts between CCS and the Weiser Entities and to conceal the inflated pricing. WEISER, BRANSKY, and their coconspirators caused CCS — and, as a consequence, the City — to pay the Weiser Entities more than $50 million for goods and services. The City would not have authorized or made these payments had proper and truthful disclosures about the Weiser Entities been made. The fraudulent scheme harmed the City in numerous ways, including: (i) the City paid inflated prices resulting from the unnecessary insertion of middlemen (the Weiser Entities) between legitimate providers of goods and services and CCS; (ii) the City paid objectively unreasonable markups for certain goods and services; and (iii) CCS’s subversion of the mandatory bidding process and concealment of its conflicts of interest exposed the City to the risk — often realized — that the City would not obtain the best value for its money. Through the scheme, WEISER collected more than $7 million in illicit profits, and BRANSKY earned more than $1.2 million in salary as the CEO of CCS. * * * WEISER, 80, of Lawrence, New York, and BRANSKY, 47, of Woodmere, New York, are each charged with one count of conspiracy to commit wire fraud and one count of wire fraud, which each carry a maximum sentence of 20 years in prison, and one count of embezzlement of government funds, which carries a maximum sentence of 10 years in prison. In addition, WEISER is charged with one count of money laundering, which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding investigative work of DOI and the Special Agents of the U.S. Attorney’s Office. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Jilan Kamal, and Sagar K. Ravi are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Federal Court Orders San Antonio-Area Pharmacy and Pharmacist to Pay $275,000 Civil Penalty in Case Alleging Unlawful Opioid Distribution

body_text: A federal court in Texas ordered a San Antonio pharmacy and its pharmacist to pay a $275,000 civil penalty and imposed restrictions related to the dispensing of opioids and other controlled substances. Pursuant to an agreed consent judgment and permanent injunction, the court enjoined Zarzamora Healthcare LLC, doing business as Rite-Away Pharmacy & Medical Supply #2, along with pharmacist-owner Jitendra Chaudhary, from dispensing certain opioid prescriptions, including combination opioid and benzodiazepine prescriptions. The order also mandates that the defendants undergo periodic comprehensive reviews of their dispensing practices to ensure compliance with the order and the Controlled Substances Act. The order resolves a civil complaint the government filed on Jan. 21, 2022, in the Western District of Texas. The complaint alleged that the defendants repeatedly dispensed opioids and other controlled substances in violation of the Controlled Substances Act by filling prescriptions while ignoring “red flags” – that is, obvious indications that the prescriptions were not for any legitimate medical use. The complaint also alleged that the defendants altered prescriptions that lacked required information in order to make them appear to be in compliance with DEA regulations. “The Controlled Substances Act requires pharmacies and pharmacists to ensure that opioids are dispensed for medically legitimate purposes,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to hold accountable professionals who flout their obligations regarding potentially dangerous prescription drugs.” “The distribution of opioids and other prescription drugs by healthcare practitioners throughout the country has caused immense harm to our communities over the years,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “My office takes this issue very seriously and will litigate against healthcare professionals when warranted.” “A pharmacist must resolve all “red flags” before the dispensation of any prescription drugs,” said Special Agent in Charge Daniel Comeaux of the Drug Enforcement Agency (DEA) Houston Division. “If the requirements of a proper prescription are not met, the men and women of the DEA Diversion Control Division are always ready to hold these pharmacists accountable .” U.S. District Judge Jason K. Pulliam entered the consent decree in U.S. District Court for the Western District of Texas. The DEA’s San Antonio District Office Tactical Diversion Squad investigated the case. The case is being handled by Assistant U.S. Attorney Erin Van De Walle for the Western District of Texas and Trial Attorneys Scott Dahlquist and Ryan Norman of the Civil Division’s Consumer Protection Branch. Claims made in a complaint are merely allegations that the United States must prove if a case proceeds to trial. The claims resolved by the injunction announced today are allegations only, and there has been no determination of liability. Consent Decree


title: Northern District of Georgia honors first graduate of Accountability, Treatment, and Leadership Court program

component: USAO - Georgia, Northern

body_text: ATLANTA - The U.S. Attorney's Office, the U.S. District Court, the Federal Defender Program, Inc., and the U.S. Probation Office honored the first graduate of the Accountability, Treatment, and Leadership Court (ATL Court) program for the Northern District of Georgia. “We are proud to work with our fellow stakeholders in the criminal justice system to offer the ATL Court as an alternative to incarceration program for our district,” said U.S. Attorney Ryan K. Buchanan. “Through intense supervision and treatment resources, the ATL Court enhances safety in our district by addressing the root causes of the participants’ previous criminal behavior and places them onto a path of crime-free, productive lives.” “This program is the result of creative, resourceful, and justice-oriented lawyers and other officials. Our Court is grateful to all of them for their outstanding work,” said Timothy C. Batten, Sr., Chief U.S. District Judge for the Northern District of Georgia. “The ATL Court’s first graduate faced a lengthy prison sentence and, in one year, she has turned her life completely around and earned a sentence of probation,” said Stephanie A. Kearns, Executive Director, Federal Defender Program, Inc. of the Northern District of Georgia. “This shows exactly why the ATL Court is so effective and valuable to all of us, and why it should continue long into the future.” “History has been made in the Northern District of Georgia,” said Donna M. High, Chief U.S. Probation Officer for the Northern District of Georgia. “The ATL Court is a collaborative effort between several agencies, that requires a lot of time and commitment. The beauty of our collaboration is that it allows us to know more than we can know by ourselves, and when we do it correctly, everyone wins.” U.S. Attorney Buchanan delivered an address to the program's first graduate and the current class of participants in the program. U.S. Magistrate Judge Catherine M. Salinas delivered remarks and presented the graduate with a diploma, recognizing her graduation from the program. Representatives of the Federal Defender Program, Inc. and the U.S. Probation Office also addressed the program participants. Through treatment to address the substance use disorder, mental health condition, or other identified need driving participants' criminal conduct, through incentives to reinforce positive behavior, and through sanction alternatives, the ATL Court program provides an alternative to incarceration for federal defendants. Participants in the program attend bi-monthly court sessions with members of the ATL Court team. The program provides a high level of supervision for its participants which lasts from 12 to 24 months. Successful completion of the program results in a non-custodial sentence, or a reduction of felony charges to a misdemeanor, or dismissal of the federal case. Launched in 2022, the ATL Court program was created through a collaborative partnership of the U.S. Attorney's Office for the Northern District of Georgia, the Federal Defender Program, Inc., the U.S. District Court for the Northern District of Georgia, and the U.S. Probation Office. Further description of the program is available at https://www.gand.uscourts.gov/accountability-treatment-and-leadership-court-“atl-court” . For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Las Vegas Contractors Sentenced To Prison For Release Of Asbestos At Marijuana Grow Facility

component: USAO - Nevada

body_text: LAS VEGAS – Rene Morales and Hector Vasquez were each sentenced to six months in prison yesterday for violating the Clean Air Act during the renovation of a Las Vegas warehouse into a marijuana growing facility. Both men pleaded guilty earlier this year to violating the Clean Air Act by releasing toxic asbestos fibers into the air during the renovation work. Inhalation of airborne asbestos fibers can cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. Congress and the Environmental Protection Agency (EPA) have determined that there is no safe level of exposure to asbestos. According to documents filed with the Court, the defendants’ firm Top Rank Builders was hired to renovate the warehouse located at 2310 Western Avenue into a facility suitable for growing marijuana. During the renovation, the defendants caused workers to remove drywall and ceiling texture that the defendants should have known would contain asbestos, without employing any abatement measures. This resulted in the release of asbestos fibers into the air, placing workers and the community in imminent danger of death or serious bodily injury from inhalation of the toxic fibers. The defendants also admitted to lying to investigators about their involvement in the renovation, and to taking steps to cover up the removal by claiming that bags marked “asbestos” were intended for a training exercise rather than disposal of asbestos-containing materials at the warehouse. “Failure to comply with federally-mandated protocols for asbestos is a serious offense with serious consequences in the District of Nevada,” said United States Attorney Jason M. Frierson for the District of Nevada. “These crimes endanger the lives of workers, tenants, and the community at large. Our Office will continue to work with our federal, state and local partners to hold those seeking to cut corners on asbestos remediation accountable.” “The defendants knowingly ignored regulations on the safe management of asbestos, putting workers and the public at risk,” said Acting Special Agent in Charge Benjamin Carr of EPA’s Criminal Investigation Division in Nevada. “The sentences demonstrate that the EPA and our law enforcement partners will pursue and prosecute those who intentionally violate environmental laws and endanger our communities.” Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Senior Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant United States Attorney Jean Ripley for the District of Nevada prosecuted the case. ###