title: False Claims Act Settlements and Judgments  Exceed $2.9B in Fiscal Year 2024

body_text: Settlements and judgments under the False Claims Act exceeded $2.9 billion in the fiscal year ending Sept. 30, 2024, Principal Deputy Associate Attorney General Benjamin C. Mizer and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today. The government and whistleblowers were party to 558 settlements and judgments, the second highest total after last year’s record of 566 recoveries, and whistleblowers filed 979 qui tam lawsuits, the highest number in a single year. Settlements and judgments since 1986, when Congress substantially strengthened the civil False Claims Act, now total more than $78 billion. “The Department’s enforcement of the False Claims Act this past year demonstrates its continued commitment to pursuing those who seek to defraud the American taxpayers,” said Principal Deputy Associate Attorney General Mizer. “The False Claims Act and its whistleblower provisions remain a critical tool in protecting the public fisc and ensuring that taxpayer funds serve the purposes for which they were intended.” “The Department places a high priority on fighting fraud and abuse in federal programs,” said Principal Deputy Assistant Attorney General Boynton, head of the Justice Department’s Civil Division. “The results announced today highlight once again that such conduct will not be tolerated, and that those who knowingly misuse taxpayer funds will be held accountable.” The False Claims Act imposes treble damages and penalties on those who knowingly and falsely claim money from the United States or knowingly fail to pay money owed to the United States. The False Claims Act thus safeguards government programs and operations that provide access to medical care, support our military and first responders, protect American businesses and workers, help build and repair infrastructure, offer disaster and other emergency relief, and provide many other critical services and benefits. The resolutions in fiscal year 2024 also reflect the Department’s focus on key enforcement priorities, including combating health care fraud, the opioid epidemic, fraud in pandemic relief programs, and violations of cybersecurity requirements in government contracts and grants. Of the more than $2.9 billion in False Claims Act settlements and judgments reported by the Justice Department this past fiscal year, over $1.67 billion related to matters that involved the health care industry, including managed care providers, hospitals and other medical facilities, pharmacies, pharmaceutical companies, laboratories, and physicians. The amounts included in the $1.67 billion reflect recoveries arising only from federal losses, but in many of these cases, the Department was instrumental in recovering additional amounts for state Medicaid programs. The Justice Department continued its commitment to use the False Claims Act to deter and redress fraud by individuals as well as corporate entities. Such efforts deter future fraud, incentivize changes in both corporate and individual behaviors, ensure that the proper parties are held responsible, and promote the public’s confidence in our justice system. The Department also remained committed to incentivizing and rewarding entities and individuals that self-disclose misconduct, demonstrably cooperate in the course of an investigation, and take effective remedial measures. Multiple settlements over the last year acknowledged such cooperative measures and reflected credits afforded to the defendants in the form of reduced penalties or damage multiples in connection with the resolution, including several of the matters discussed in more detail below. These cooperative measures included self-disclosures, assistance with the determination of government losses, disclosures of internal investigations and facts not known to the government, and remedial measures such as implementing tracking system enhancements or terminating or separating employees. In 1986, Congress strengthened the False Claims Act by increasing incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government. These whistleblowers, or qui tam, actions comprise a significant percentage of the False Claims Act cases that are filed. Qui tam cases may be pursued by the government or the whistleblower, and this past year, significant recoveries were obtained by both. When a qui tam action is successful, the whistleblower, also known as the relator, typically receives a portion of the recovery ranging between 15% and 30%. The 979 qui tam suits filed in fiscal year 2024 breaks the prior record set in 2013, and this past year, the Justice Department reported settlements and judgments exceeding $2.4 billion in these and earlier-filed qui tam suits. The $2.9 billion in settlements and judgments announced today does not include two significant settlements occurring just after the end of the fiscal year. On Oct. 10, 2024, Teva Pharmaceuticals USA Inc. , the largest generic drug manufacturer in the country, agreed to pay $425 million to resolve allegations that it violated the False Claims Act by paying copays for Medicare patients for the multiple sclerosis drug Copaxone while steadily raising the drug’s price. Teva further agreed to pay $25 million to resolve allegations that it conspired with other generic drug manufacturers to fix prices for certain drugs and that the benefits Teva received under its price fixing scheme constituted illegal kickbacks. This is the seventh resolution arising from the Department’s investigation of price fixing by generic drug manufacturers. On Oct. 16, 2024, Raytheon Company paid $428 million to resolve allegations that it knowingly provided false cost and pricing data when negotiating with the Department of Defense for numerous government contracts and double billed on a weapons maintenance contract, leading to Raytheon receiving profits in excess of negotiated rates. This is the second largest government procurement fraud recovery under the False Claims Act in history. Representative examples of False Claims Act matters pursued by the government and whistleblowers this past fiscal year are discussed below. HEALTH CARE FRAUD In fiscal year 2024, health care fraud remained a leading source of False Claims Act settlements and judgments. These recoveries restore funds to federal programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families. But just as important, in many cases, enforcement of the False Claims Act also protects patients from medically unnecessary or potentially harmful actions. As in years past, the act was used to pursue matters involving a wide array of health care providers, goods, and services. Opioid Epidemic The Justice Department continued its pursuit of health care providers, pharmaceutical companies and pharmacies that contributed to and exacerbated the opioid crisis. Endo Health Solutions , which is in bankruptcy, agreed that the United States has an allowed, unsubordinated, general unsecured claim of $475.6 million in the bankruptcy to resolve, among other things, allegations relating to losses to federal healthcare programs that paid for Opana ER, an opioid drug sold and marketed by Endo. The Department alleged that Endo used an aggressive scheme that marketed Opana ER to high-volume prescribers of opioids, including many prescribers that Endo knew were prescribing Opana ER or other opioids for non-medically accepted indications. Rite Aid Corporation and 10 subsidiaries and affiliates paid $7.5 million and agreed to provide to the United States an allowed, unsubordinated, general unsecured claim of $401.8 million in Rite Aid’s bankruptcy case to resolve allegations that Rite Aid knowingly dispensed unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not issued in the usual course of professional practice and/or were not valid prescriptions, or were not for a medically accepted indication. The unlawful prescriptions included prescriptions for the dangerous, highly diverted combination of drugs known as “the trinity,” and prescriptions for excessive quantities of opioids, such as highly addictive oxycodone and fentanyl. Dr. Gregory Gerber agreed to a consent judgment that, among other things, requires him to pay $4.7 million arising from allegations that he unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances, that one patient died from an overdose of fentanyl patches prescribed by Gerber, and that Gerber received kickback payments from a drug manufacturer. Gerber was also sentenced to 42 months in prison and one year of home confinement in a related criminal case. A chain of substance use disorder treatment clinics called Crossroads paid $863,934 to resolve allegations that the clinics defrauded the Medicaid program by billing for treatment services they did not provide by, for example, billing for comprehensive medical examinations when only a regular check-in visit occurred. Unnecessary Services and Substandard Care The Justice Department also pursued and resolved matters in which providers billed federal health care programs for medically unnecessary services and substandard care. Strauss Ventures LLC, doing business as The Grand Health Care System , and 12 affiliated skilled nursing facilities agreed to pay $21.3 million to resolve allegations that they knowingly billed federal health care programs for therapy services that were unreasonable, unnecessary or unskilled, or that simply did not occur as billed. As part of the settlement, the company admitted it had implemented quotas relating to beneficiaries’ length of stay and to the percentages of beneficiaries billed at the highest reimbursement rate, resulting in some Medicare beneficiaries staying on therapy longer than was reasonable and medically necessary. Acadia Healthcare Company Inc. paid $16.6 million to resolve allegations that six of its health facilities billed for medically unnecessary inpatient behavioral health services and failed to properly discharge beneficiaries when they no longer needed inpatient treatment and had improper and excessive lengths of stay. The United States further alleged that Acadia failed to provide adequate staffing, training and/or supervision of staff, which resulted in assaults, elopements, suicides and other harm resulting from these staffing deficiencies, and failed to provide active treatment, to develop and/or update individualized assessments and treatment plans, to provide adequate discharge planning, and to provide required individual and group therapy. Daniel Hurt , who owned and/or operated Fountain Health Services LLC, Verify Health, Landmark Diagnostics LLC, First Choice Laboratory LLC, and Sonoran Desert Pathology Associates LLC, agreed to pay over $27 million, based on his ability to pay, to resolve allegations that he and his companies received payments from Medicare for cancer genomic tests that were not medically necessary and were procured through illegal kickbacks. Medicare Advantage Matters The Justice Department continued to pursue cases alleging false claims in the Medicare Advantage (or Medicare Part C) program. As Medicare Part C is now the largest component of Medicare, both in terms of federal dollars spent and the number of beneficiaries impacted, the work of the Justice Department in this area is of critical importance. Oak Street Health , a wholly-owned subsidiary of CVS Health since 2023, paid $60 million to resolve allegations that it paid kickbacks to third-party insurance agents in exchange for recruiting seniors to Oak Street’s primary care clinics. Under the Medicare Advantage Program, Medicare beneficiaries have the option to obtain their health care through privately-operated insurance plans known as MA plans, some of which contract with health care providers, including Oak Street, to provide their plan members with primary care services. The United States alleged that the Oak Street Health payments to the agents improperly incentivized them to base their referrals and recommendations on the financial motivations of Oak Street Health and of the agents rather than the best interests of seniors. In addition to this matter, the Justice Department continued to litigate a number of other cases involving the Medicare Advantage program, including actions against UnitedHealth Group , Elevance Health (formerly Anthem) , and the Kaiser Permanente consortium. Unlawful Kickbacks and Stark Law Violations Kickbacks paid or received by health care providers undermine the integrity of federal health care programs by tainting medical decision-making, increasing health care costs, and adversely affecting competition. Federal law prohibits the willful solicitation or payment of illegal remuneration to induce the purchase of a good or service paid for by a federal health care program. The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting billing for certain services when the referring physician and the entity submitting the claim have a financial relationship that does not satisfy one of the statute’s exceptions. Community Health Network Inc. (Community) paid $345 million to resolve allegations that it submitted claims to Medicare for services that were referred in violation of the Stark Law. The United States alleged that the compensation Community paid to certain physician groups was well above fair market value, and that Community awarded bonuses to physicians that were tied to the number of their referrals. The United States alleged that senior management at Community embarked on an illegal scheme to recruit physicians for employment for the purpose of capturing their lucrative “downstream referrals.” DaVita Inc. paid $34.5 million to resolve allegations that it paid kickbacks to a competitor to induce referrals to a former subsidiary that provided pharmacy services for dialysis patients. As part of the improper arrangement, the United States alleged that DaVita agreed to acquire certain European dialysis clinics and agreed to purchase dialysis products from the competitor. The United States also alleged that DaVita paid additional kickbacks to nephrologists and vascular physicians to induce referrals to DaVita’s dialysis centers. Prema Thekkek, her management company Paksn Inc., and six skilled nursing facilities owned by Thekkek and/or operated by Paksn entered into a $45.6 million consent judgment to resolve allegations they paid kickbacks to physicians in the form of medical directorships to induce patient referrals. RDx Bioscience Inc. (RDx) and its owner and Chief Executive Officer Eric Leykin paid $10.3 million to resolve allegations that they paid kickbacks in the form of commissions based on the volume and value of referrals to independent contractor marketers to arrange for and recommend that healthcare providers order RDx laboratory tests, as well as purported management services organization (MSO) payments to physicians, which were disguised as investment returns but actually were offered to induce the provider to order RDx laboratory tests. To date the government has recovered over $53 million relating to conduct involving MSO kickbacks to healthcare providers, including False Claims Act settlements with 48 physicians. Innovasis and two senior executives agreed to pay $12 million to resolve allegations that they paid kickbacks to spine surgeons in the form of consulting fees, intellectual property acquisition and licensing fees, registry payments, performance shares in Innovasis, travel to a luxury ski resort, and lavish dinners and holiday parties to induce use of the company’s spinal implants, devices, and other equipment in medical procedures performed on Medicare beneficiaries. The Justice Department filed claims against Murphy Medical Center, Inc., doing business as Erlanger Western Carolina Hospital, and Chattanooga-Hamilton County Hospital Authority doing business as Erlanger Health System and Erlanger Medical Center (collectively, Erlanger), alleging that Erlanger knowingly submitted claims to Medicare for services that were referred in violation of the Stark Law. The complaint alleged that Erlanger paid its physicians compensation that was well above fair market value and that Erlanger knew that the claims for services referred by those physicians were not eligible for payment. The Justice Department also filed claims against Rick Nassenstein , formerly the president, chief financial officer, and co-owner of Cardiac Imaging Inc., a provider of mobile cardiac positron emission tomography (PET) scans. The complaint alleges that Nassenstein played a central role in a scheme whereby CII paid above-fair market value fees to doctors who referred patients to CII for cardiac PET scans, which was the subject of a $85 million settlement with Cardiac Imaging and its founder last year. Other Health Care Fraud Rite Aid Corporation (Rite Aid) and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC, and RX Solutions LLC (Elixir) , which offered Medicare drug plans and pharmacy benefit manager (PBM) services, agreed to pay $101 million and to grant the United States an additional, allowed, unsubordinated, general unsecured claim of $20 million in Rite Aid’s bankruptcy to resolve allegations that they failed to accurately report drug rebates to the Medicare Program. The United States alleged that these Rite Aid entities improperly reported portions of rebates they received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. Walgreens Boots Alliance Inc. and Walgreen Co. (together, Walgreens) agreed to pay $106.8 million to resolve allegations that they billed government health care programs for prescriptions that were processed but never picked up by beneficiaries. Columbus LTACH, doing business as Silver Lake Hospital , and certain of its investors, agreed to pay over $30 million to resolve allegations that Silver Lake claimed excessive Medicare cost outlier payments, a form of supplemental reimbursement to hospitals in cases where the cost of care is unusually high. The settlement also resolved allegations under the Federal Debt Collection Procedures Act that Silver Lake transferred millions of dollars of the hospital’s money to its investors without receiving equivalent value in return, at a time when the hospital had reason to believe that it would not be able to repay its debts to the Medicare program. Gentiva, successor to Kindred at Home , paid $19.4 million to resolve allegations that Kindred at Home and related entities submitted claims and retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits. The Justice Department filed claims against Regeneron Pharmaceuticals Inc. , alleging that the company fraudulently inflated Medicare reimbursement rates for Eylea, a medication used to treat neovascular Age-Related Macular Degeneration. The complaint alleges that Regeneron knowingly submitted false average sales price reports, on which Medicare reimbursements are set, to the government that did not take into account certain price concessions. The Justice Department also filed claims against six health plans ( Brighton Marine Health Center, CHRISTUS Health Services, Johns Hopkins Medical Services Corporation, Martin’s Point Health Care, Pacific Medical Center, and St. Vincent’s Catholic Medical Centers of New York ) participating in the Uniformed Services Family Health Plan program, as well as their trade group, alleging they knowingly retained inflated payments for healthcare services provided to retired military members and their families. The United States further alleged that after learning of the calculation errors, the plans took steps to conceal the overpayments from the government and continued to submit invoices at the inflated payment rates. The government resolved related claims against Kennell and Associates, an actuarial firm, for $779,951 plus contingent payments, based on its inability to pay. MILITARY PROCUREMENT FRAUD The government continued its pursuit of fraud matters involving the purchase of goods and services by the military services. Fraud in these programs not only squanders government funds, but also can deprive servicemembers of critical resources and potentially put them at risk. Sikorsky Support Services Inc and Derco Aerospace Inc. paid $70 million to resolve allegations they overcharged the U.S. Navy for spare parts and materials needed to repair and maintain the primary aircraft used to train naval aviators. The United States alleged that these entities, which were owned by the same parent company, entered into an improper subcontract that resulted in the Navy paying inflated costs for parts. Austal USA LLC paid $811,259 to resolve allegations that it knowingly supplied valves that did not meet military specifications. The United States alleged that under a U.S. Navy contract Austal invoiced for military grade valves to be installed on certain combat ships when Austal knew the valves had not met the testing requirements to be deemed military grade. The Department brought claims against Insect Shield LLC and the Estate of Richard Lane , the founder, majority owner and chief operating officer of the company, for allegedly causing the submission of false claims to the Department of Defense under contracts to provide Army Combat Uniforms. The United States alleges that Insect Shield and Lane falsified the results of the insect repellant testing to conceal failing test results, including by inappropriately combining results from different rounds of testing, re-labeling test samples to hide the true origin of the samples, and performing re-tests of uniforms in excess of what the contract permitted. PANDEMIC FRAUD In response to the COVID-19 crisis, Congress authorized historic levels of emergency funding for federal agencies to provide direct financial assistance to individuals, businesses, and state, local, and Tribal governments. The Justice Department’s efforts in this area have included the pursuit of cases involving improper payments under the Paycheck Protection Program (PPP), administered by the Small Business Administration (SBA), and alleged fraud affecting Medicare and other federal healthcare programs for services related to COVID-19 testing and treatment. During fiscal year 2024, the Department obtained more than 250 False Claims Act settlements and judgments, which collectively exceeded more than $250 million, resolving allegations of pandemic-related fraud. Now-bankrupt financial technology company Kabbage Inc. , doing business as KServicing, agreed to resolve allegations that it submitted, and caused the submission of, thousands of false claims for PPP loan forgiveness, loan guarantees, and processing fees to the SBA. The United States alleged that Kabbage systemically inflated PPP loans, causing the SBA to guarantee and forgive loans in amounts that exceeded what borrowers were eligible to receive, and that Kabbage failed to implement appropriate fraud controls. As part of the resolution, the United States will receive an allowed, unsubordinated, general unsecured claim in the bankruptcy proceeding of up to $120 million. West Coast Dental Administrative Services LLC (formerly West Coast Dental Services Inc.) and its founders and former owners Drs. Soleyman Cohen-Sedgh, Farid Pakravan and Farhad Manavi paid $6.3 million to resolve allegations that the company and affiliated dental offices received seven improper second-draw PPP loans, which were limited to businesses with 300 employees or less. The United States alleged the companies falsely certified that they qualified for these loans. Hemisphere GNSS (USA) Inc. , which was purchased by CNH Industrial in 2023, paid $2.6 million to resolve allegations that it provided false information with a PPP loan and forgiveness of that loan. To obtain the loan, the company certified that no entity created in or organized under the laws of the People’s Republic of China owned or held 20% or more of an economic interest in the company, and that it did not have a board member who was a resident of the People’s Republic of China. The United States alleged that at the time the company applied for the loan, both of those certifications were false. Andrew Maloney and the clinical laboratory that he owned, Capstone Diagnostics , paid $14.3 million to resolve allegations that, among other things, they sought to profit from the COVID-19 pandemic by paying volume-based commissions to independent contractor sales representatives to recommend respiratory pathogen panel tests to senior communities interested only in COVID-19 tests and to generate orders using forged signatures of physicians that did not reflect the medical conditions of the senior community residents receiving the tests. In a similar matter, the government obtained a $26.3 million default judgment against Provista Health LLC and its owner Patrick Britton-Harr for billing during the height of the pandemic for medically unnecessary respiratory pathogen panel tests and tests that were not performed. City Medical of the Upper East Side, PLLC, Summit Medical Group, P.A., Summit Health Management, LLC, and Village Practice Management Company LLC, which collectively do business as CityMD , agreed to pay $12 million to resolve allegations for false claims for COVID-19 testing to a Health Resources and Services Administration (HRSA) program for uninsured patients arising from CityMD’s failure to adequately confirm that the individuals had health insurance coverage before submitting their claims to the Uninsured Program. CYBERSECURITY INITIATIVE The Department’s effort to combat cybersecurity threats includes its Civil Cyber-Fraud Initiative. The Initiative is dedicated to using the False Claims Act to promote cybersecurity compliance by government contractors and grantees by holding them accountable when they knowingly violate applicable cybersecurity requirements. The Justice Department filed claims against Georgia Institute of Technology and Georgia Tech Research Corp. alleging that those defendants failed to meet cybersecurity requirements in connection with Department of Defense (DoD) contracts. The complaint alleges that a research lab at Georgia Tech failed to develop and implement a system security plan, as required by DoD cybersecurity regulations, and submitted a false cybersecurity assessment score to DoD for the Georgia Tech campus. The complaint also alleges that the lab failed to install, update or run anti-virus or anti-malware tools on desktops, laptops, servers and networks at the lab. Guidehouse Inc. paid $7.6 million and Nan McKay agreed to pay $3.7 million to resolve allegations they failed to meet cybersecurity requirements in a contract with New York funded by a federal grant intended to secure online environments for New York residents to apply for federal rental assistance during the Covid-19 pandemic. Guidehouse and McKay admitted that neither satisfied their obligation to complete the required testing of the online site used to house applicants’ information, and the site was shut down within twelve hours after certain applicants’ personally identifiable information had been compromised. Insight Global LLC paid $2.7 million to resolve allegations it failed to implement adequate cybersecurity measures to protect health information obtained during Covid-19 contact tracing. The United States alleged that the Pennsylvania Department of Health hired the company to provide staffing for Covid-19 contact tracing using funds from the U.S. Centers for Disease Control and Prevention and that the company failed to keep the health information confidential and secure. OTHER FRAUD RECOVERIES The judgments, settlements, and lawsuits announced during fiscal year 2024 involved a variety of other programs and schemes that reflect the range of the government’s False Claims Act enforcement efforts. Gen Digital Inc. (formerly known as Symantec Corp.) paid $55.1 million to satisfy a judgment that it made knowingly false claims to the United States when it misrepresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) contract. The court found after a four-week bench trial that the false disclosures induced GSA to accept and then continue to pay higher prices than it would have had it known of Symantec’s actual commercial pricing practices. The court also found that Symantec continuously violated the Price Reduction Clause, a standard term in these types of contracts that requires the contractor throughout performance of the contract to maintain GSA’s price position in relation to an identified customer or category of customer agreed upon in contract negotiations. The City of Los Angeles paid $38.2 million to resolve allegations that it failed to meet federal accessibility requirements when it sought and used Department of Housing and Urban Development (HUD) grant funds for multifamily affordable housing. The United States alleged that the city failed to make its affordable multifamily housing program accessible to people with disabilities. The United States further alleged that the city failed to maintain a publicly available list of accessible units and their accessibility features and the city, on an annual basis, falsely certified to HUD that it complied with related grant requirements. Hilcorp San Juan L.P. paid $34.6 million to resolve allegations that it underpaid royalties owed on oil and natural gas produced from federal lands. The United States alleged that the company made payments to the federal government based on estimated volumes and prices without indicating that the payments were based on estimates and without subsequently adjusting its payments in the following months to account for actual volumes and values, resulting in the underpayment of royalties to the United States. In another case based on allegations of the underpayment of royalties owed on natural gas, XTO Energy Inc. paid $16 million to resolve allegations that the company improperly deducted costs necessary to put the gas in marketable condition, improperly deducted costs of transporting carbon dioxide, and failed to pay royalties on carbon dioxide. Hahn Air Lines GmbH and Hahn Air USA Inc. paid $26.8 million to resolve allegations that Hahn Air failed to remit to the United States certain travel fees collected from commercial airline passengers flying into or within the United States. Consolidated Nuclear Security LLC paid $18.4 million to resolve allegations that it billed for time not worked at the National Nuclear Security Administration’s Pantex Site near Amarillo, Texas. AECOM paid $11.8 million to resolve allegations that it submitted false claims to the Federal Emergency Management Agency for the replacement of certain educational facilities located in Louisiana that were damaged by Hurricane Katrina. The United States alleged that AECOM submitted to FEMA fraudulent requests for disaster assistance funds and did not correct applications that included materially false design, damage and replacement eligibility descriptions. Combined with settlements with other entities involved in the alleged conduct, the government recovered over $25 million in connection with the disaster assistance applications prepared by AECOM. RECOVERIES IN WHISTLEBLOWER SUITS Of the $2.9 billion in settlements and judgments reported by the government in fiscal year 2024, over $2.4 billion arose from lawsuits that were filed under the qui tam provisions of the False Claims Act and pursued by either the government or whistleblowers. During the same period, the relator shares for the individuals who exposed fraud and false claims by filing qui tam actions exceeded $400 million. The number of lawsuits filed under the qui tam provisions of the act has grown significantly since 1986, with an average of more than 18 new cases filed every week during this past year. “Whistleblowers play a critical role in identifying fraud schemes,” said Principal Deputy Assistant Attorney General Boynton. “We continue to be grateful for their efforts and often substantial sacrifices to uncover and report these schemes.” In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud. In 2009 and 2010, further improvements were made to the False Claims Act and its whistleblower provisions. *** On behalf of the Civil Division, Principal Deputy Assistant Attorney General Boynton expressed appreciation for the many public servants over the past year who supported the Department’s enforcement efforts. “The accomplishments announced today are a result of the tireless efforts of civil servants who work to protect taxpayer dollars and the important programs that they support,” said Principal Deputy Assistant Attorney General Boynton. “These individuals serve at offices across the country, including the Fraud Section of the Civil Division, the U.S. Attorneys’ Offices, the agency Offices of Inspector General and Offices of General Counsel, and many other federal and state agencies that contribute to this important work.” Except where indicated, the government’s claims in the matters described above are allegations only and there has been no determination of liability. The numbers contained in this press release may differ slightly from the original press releases due to accrued interest. View the statistics sheet here.


title: Seven Hartford Gang Members Charged with Murder and Racketeering Offenses

body_text: Note: View a copy of the indictment here. A grand jury in Hartford, Connecticut, returned a 15-count indictment on Jan. 8 charging seven alleged members of a violent Hartford gang with participating in a years-long interstate Racketeer Influenced and Corrupt Organizations Act (RICO) conspiracy involving multiple murders, attempted murder, gun trafficking, extortion, arson, drug trafficking, and other crimes. “This indictment — which is the first RICO indictment since the launch of the Violent Crime Initiative (VCI) in Hartford in April 2024 — alleges that the defendants engaged in numerous violent acts, including shooting at suspected rival gang members and shooting and killing a motorist with whom two of the defendants got into a car accident,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Violent gangs like the Hoodstars terrorize local communities and threaten safety across Hartford. Today’s announcement demonstrates that the VCI is already making an impact in Hartford, through the deployment of Criminal Division resources, in close coordination with our partners, to target the specific drivers of violent crime and hold gang members accountable for their crimes.” “We allege that members of the Hoodstar Gzz have engaged in murder and numerous other violent acts against both rival gang members and innocent civilians, and their criminal activity extended to northern Vermont, where they trafficked drugs and acquired firearms, some of which they transported back to Connecticut,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This case is a clear demonstration of our commitment to relentlessly pursue and dismantle organizations that threaten the peace and security of our communities. The effort to connect these violent acts and bring these individuals to justice has been a collaborative one, and I want to thank the federal, state, and local law enforcement agencies involved for their dedication to make our communities, both here in Connecticut and in Vermont, safer.” “For more than two years, the FBI and its law enforcement partners have worked tirelessly to disrupt and dismantle the Hoodstarz organization,” said Special Agent in Charge Robert Fuller of the FBI New Haven Field Office. “This violent criminal organization has been responsible for wreaking havoc in the Hartford area and its takedown is a positive step forward in the never-ending quest to keep our community safe. Let this be a firm message that the FBI and its local, state, and federal partners will remain relentless in the fight to identify, disrupt, and dismantle violent criminal organizations.” “Criminal gangs terrorize communities, leaving violence and destruction in their wake,” said Special Agent in Charge Michael J. Krol of Homeland Security Investigations (HSI) New Haven. “These individuals have been charged with crimes ranging from firearms possession to murder and, if convicted, will face serious federal prison time. HSI works with our state, local, and federal partners to dismantle criminal gangs like the Hoodstar Gzzs and help communities reclaim their safety and their streets.” “The charges announced today reflect our relentless dedication to dismantling violent criminal organizations that endanger the safety and stability of our communities,” said Special Agent in Charge James M. Ferguson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Boston Field Division. “Working hand in hand with our federal, state, and local partners, we deliver a clear message: those who choose violence and chaos will be held accountable, and justice will prevail for the citizens of Connecticut.” The indictment alleges that the Hoodstar Gzz gang, which since its forming in 2010 has referred to itself by a variety of names, including “Hoodstars,” “Hoodstarz,” and “Gz,” generally operates between Capen, Westland, Enfield, and Main Streets in Hartford. The gang has allegedly distributed narcotics; engaged in multiple violent acts against rival gang members and others, including multiple shootings and murders; trafficked narcotics in Vermont; moved firearms from Vermont to Connecticut; utilized stolen vehicles in furtherance of the gang’s affairs and burned vehicles that were used in the commission of crimes; and recorded and distributed rap music to promote the gang’s criminal activity. The indictment charges the following defendants, all of Hartford: Angel Rivera , also known as Rico and Slatt, 24, is charged with RICO conspiracy, murder in aid of racketeering, use of a firearm to cause death, use of a firearm during the murder, and drug trafficking conspiracy. Raquan Knight , also known as RQ, 21, is charged with RICO conspiracy and drug trafficking conspiracy. Paul Downer , also known as Luap Benji, 28, is charged with RICO conspiracy and drug trafficking conspiracy. Mekhi Thompson , also known as Midnight, 24, is charged with RICO conspiracy, murder in aid of racketeering, use of a firearm to cause death, use of a firearm during murder, and drug trafficking conspiracy. Paul Clarke , also known as Tommy Bunz, 30, is charged with RICO conspiracy and drug trafficking conspiracy. Tyshon Walker , also known as Pone Gwapoo, 26, is charged with RICO conspiracy, drug trafficking conspiracy, and possessing a machinegun during a drug trafficking offense. Joshua Cruz , also known as Hop-out Curly, 24, is charged with RICO conspiracy, drug trafficking conspiracy, and possessing a machinegun during a drug trafficking offense. Among the violent acts committed by the defendants, the indictment alleges that: On April 16, 2019, Thompson allegedly attempted to murder members of a rival gang, which resulted in gunshot wounds to three individuals. On Jan. 22, 2021, Downer allegedly shot a victim in the femoral artery for failure to pay a drug debt. On April 10, 2021, Rivera, Knight, Cruz, and other Hoodstar Gzz members and associates allegedly shot and killed a member of the rival Ave gang and wounded another individual. On Jan. 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates allegedly shot at one victim and shot and injured another. On Jan. 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates allegedly shot and killed one victim and shot and injured another. On June 19, 2022, Knight allegedly shot one victim. On Aug. 1, 2022, Rivera and other members and associates of the Hoodstar Gzz gang allegedly shot and killed one victim and shot and injured two additional individuals. On Sept. 14, 2022, Thompson and Rivera allegedly got into a confrontation with a victim over a rental car that Thompson failed to return. Thompson then shot and killed the victim. On Oct. 27, 2022, Thompson and Rivera were allegedly involved in a car accident with a black Nissan sedan and fled the scene. The Nissan followed them for approximately 1.6 miles. Thompson then allegedly exited the vehicle and shot and killed the driver of the Nissan. If convicted, each defendant faces a maximum penalty of life in prison. All defendants are currently detained pending trial. A federal district judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors. The FBI, HSI, and ATF investigated the case, with valuable assistance provided by the Hartford Police Department, East Hartford Police Department, Windsor Police Department, Connecticut State Police, Connecticut Department of Correction, St. Johnsbury Police Department, Northfield Police Department, and Vermont State Police. Trial Attorneys Jeremy Franker and Christopher Usher of the Criminal Division’s Violent Crime and Racketeering Section (VCRS) and Assistant U.S. Attorneys Robert S. Dearington, John T. Pierpont Jr., and Shan Patel for the District of Connecticut are prosecuting the case. The U.S. Attorney’s Office for the District of Vermont provided substantial assistance. This prosecution is a part of the VCI in Hartford, as well as the Project Safe Neighborhoods (PSN) program, and is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The Hartford VCI is conducted in partnership with the U.S. Attorney’s Office for the District of Connecticut and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Hartford. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. For more information about PSN, please visit www.justice.gov/psn . OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF program can be found at www.justice.gov/OCDETF . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Member of Large-Scale Drug Trafficking Organization Pleads Guilty

component: USAO - Massachusetts

body_text: BOSTON – A Lynn man pleaded guilty today in federal court in Boston for his role in a large-scale drug trafficking organization on the North Shore of Massachusetts. In November 2023, millions of doses of fentanyl and methamphetamine laced pills and powder with street value estimated to be over $7 million, were seized from a stash location and clandestine laboratory used by organization. Sebastien Bejin, a/k/a “Bash,” 34, of Lynn, pleaded guilty to one count of conspiracy to distribute controlled substances and possess controlled substances with intent to distribute and one count of possession of controlled substances with intent to distribute. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 1, 2025. Bejin was charged in November 2023 along with alleged co-conspirators Emilio Garcia and Deiby Felix. The defendants were later indicted by a federal grand jury in December 2023. In July 2023, an investigation began into an overdose death in Salem, which ultimately led investigators to the drug trafficking organization allegedly led by Benjin, Garcia and Felix. On Nov. 1, 2023, searches were conducted at four locations in Lynn that were identified as locations frequented by Garcia and Bejin. The searches resulted in what is believed to be, one of the largest single-location seizures of fentanyl and methamphetamine in Massachusetts and the region. The seizure included nine kilograms (20 pounds) of pink heart shaped fentanyl-laced pills pressed to look like candy. Additional narcotics and five firearms were also seized. During the course of the investigation over 75 kilograms (198 pounds) of fentanyl and methamphetamine were seized, along with multiple additional kilograms of cocaine and dozens of kilograms of cutting agents, including xylazine, that is used to adulterate controlled substances. Surveillance during the investigation revealed that Garcia and Bejin would travel to the stash location on a daily basis and then bring quantities of suspected controlled substances from the premises to supply lower-level dealers. A search of Felix’s residence resulted in the seizure of more than three kilograms (6.6 pounds) of pressed pills containing methamphetamine and fentanyl and a firearm. A subsequent search of the residence also revealed a clandestine drug laboratory that had been built into a small room in the basement. Multiple industrial pill presses, mixing equipment and other manufacturing paraphernalia and equipment were also recovered. The charges of possession with intent to distribute controlled substances, and conspiracy to do the same, each provide for a sentence of at least 10 years and up to life in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston; Colonel Geoffrey D. Noble, Superintendent of the Massachusetts State Police; and Essex County District Attorney Paul F. Tucker, made the announcement today. Valuable assistance was provided by the Massachusetts Attorney General’s Office and the Lynn, Lynnfield and Salem Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Justice Department Files Voting Rights Suit Against Fayette County, Tennessee

component: Civil Rights Division

body_text: The Justice Department filed a lawsuit against Fayette County, Tennessee, alleging that the Board of County Commissioners violated Section 2 of the Voting Rights Act when it adopted a redistricting plan that denies the county's Black voters an equal opportunity to elect candidates of their choice. The lawsuit, filed in the U.S. District Court for the Western District of Tennessee, alleges that during the 2021 redistricting cycle, the County Commission deliberately rejected multiple districting plans that would have combined Black communities in districts that would allow Black voters to elect representatives of their choice. In doing so, the Commission disregarded the guidelines and recommendations of its own redistricting committee and the advice of the attorney it hired specifically to guide it through the redistricting process. “The right to vote is sacred and is the foundation for our ability to exercise all other civil rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Black voters should have the equal opportunity to elect their candidates of choice, but the redistricting map adopted by Fayette County did not provide that opportunity. The Justice Department is committed to enforcement of the Voting Rights Act and ensuring all eligible citizens have an equal opportunity to choose their elected officials. Our democracy works best when all communities have a fair and equal opportunity to elect candidates of their choice.” “The right to vote is the cornerstone of our democracy, and Black voters in Fayette County deserve the same opportunity as anyone else to elect leaders who represent their voices,” said Acting U.S. Attorney Reagan Fondren for the Western District of Tennessee. “Our office is committed to ensuring fairness and equality in the electoral process.” The Civil Rights Division’s Voting Section, working with U.S. Attorneys’ Offices, enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Acts and the Uniformed and Overseas Citizens Absentee Voting Act. More information about voting and elections is available at www.justice.gov/voting . Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section . Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931.


title: Federal Grand Jury Indicts Two Louisville Men for Drug and Firearms Offenses

component: USAO - Kentucky, Western

body_text: Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on January 8, 2025, charging two local men with trafficking in firearms, distribution of methamphetamine, and illegal possession of firearms. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, Karen Wingerd, Special Agent in Charge, Cincinnati Field Office, IRS Criminal Investigation, and Chief Paul Humphrey of the Louisville Metro Police Department made the announcement. According to the indictment, Sukhjit Bains , 51, was charged with two counts of trafficking in firearms, two counts of distribution of 50 grams or more of a mixture of methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, two counts of possession of a firearm by a prohibited person, and one count of illegal possession of a machine gun, specifically, a 3D printed Glock type machinegun conversion device. A Glock Switch device allows a semi-automatic handgun to function as an automatic and is defined as a machine gun under federal law. All charges occurred on November 20th and December 12th of 2024. Bains was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On November 28, 2018, in the United States District Court, Western District of Kentucky, Bains was convicted of possession of a firearm and ammunition by a convicted felon, and possession with intent to distribute methamphetamine. On March 28, 2017, in in Jefferson County Circuit Court, Bains was convicted of wanton endangerment in the first degree, tampering with physical evidence, and two counts of possession of a controlled substance in the first degree-methamphetamine. Jonathan Ernspiker , 42, was charged with trafficking in firearms, distribution of 50 grams or more of a mixture of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a prohibited person. All charges occurred on November 20, 2024. Ernspiker was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On May 26, 2017, in Bullitt County Circuit Court, Ernspiker was convicted of being a convicted felon in possession of a firearm and possession of a controlled substance in the first degree methamphetamine. On November 4, 2013, in Bullitt County Circuit Court, Ernspiker was convicted of fleeing or evading police in the first degree, and manufacturing methamphetamine in the first degree. On May 3, 2013, in Bullitt County Circuit Court, Ernspiker was convicted of trafficking in a controlled substance in the first degree greater than two grams of methamphetamine. On October 1, 2008, in Bullitt County Circuit Court, Ernspiker was convicted of criminal mischief in the first degree. On January 10th Ernspiker and on January 13th Baines made an initial made initial court appearances before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. The Court ordered the Ernspiker detained pending trial. Baines has a detention hearing scheduled for tomorrow, January 16th. If convicted, Bains faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison , Ernspiker faces a minimum sentence of 10 years in prison and maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system. This case is being investigated by the ATF, LMPD, DEA, and IRS-CI. Assistant U.S. Attorney Joshua R. Porter is prosecuting this 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 www.justice.gov/OCDETF. This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Broker and Three Traders Indicted for Years’ Long Insider Trading Scheme

component: USAO - New York, Eastern

body_text: Earlier today, at the federal courthouse in Brooklyn, an indictment was unsealed charging broker David Cooper and traders Randy Grewal, John Lowe and Richard Ringel with conspiracy to commit securities fraud and securities fraud for their involvement in an insider trading scheme. Cooper was arrested today in Westchester and will be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo. Grewal was arrested in Anthem, Arizona and Lowe and Ringel were arrested in Stewart and Boca Raton, Florida, respectively. They will be arraigned in the Eastern District of New York at a later date. Judy Philips, Acting Attorney for the United States for the Eastern District of New York, William S. Walker, Special Agent in Charge, Homeland Security Investigations New York (HSI) and Brendan Donahue, Acting Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS), announced the arrests and charges. “As alleged, the defendants exploited their access to inside information for years to gain an unfair advantage over the investing public for their own personal gain,” stated Acting Attorney for the United States Philips. “The arrests and indictment demonstrate that this Office will protect the integrity of the securities markets and aggressively prosecute those who engage in insider trading.” Ms. Philips expressed her appreciation to the U.S. Securities and Exchange Commission, New York Regional Office, and the Financial Industry Regulatory Authority for their significant cooperation and assistance during the investigation. “Those who participate in illicit trading schemes undermine our U.S. Securities and Exchange Commission laws and regulations with selfish ambition,” stated HSI New York Special Agent in Charge Walker. “HSI continues to work side-by-side with our law enforcement partners to ensure fraudsters who manipulate our legal financial systems are identified and prosecuted to the fullest extent.” “This is a case of pure greed where individuals lied, obtained information illegally, and used it solely for their own personal financial gain. Postal Inspectors, along with our law enforcement partners, will continue to investigate fraud vigilantly and will protect investors from falling victim to predatory behavior,” stated USPIS Acting Inspector in Charge Donahue. As alleged in the indictment, between approximately January 2018 and May 2024, the defendants conspired to obtain material non-public information (MNPI) about upcoming secondary stock offerings and to trade on that MNPI in advance of those offerings. The defendants illegally obtained MNPI from numerous sources, including through Cooper, who obtained MNPI in his capacity as an employee of a broker-dealer (Broker-Dealer) with investment banks involved in and underwriting the secondary stock offerings. The MNPI included specific deal information such as the identity of the public company issuing the secondary offering; the timing of the deal; the structure of the deal; and the price at which the company would offer its stock in the upcoming offering. Cooper breached his duty of confidentiality to Broker-Dealer and misappropriated the information when he improperly disclosed it to Lowe, Ringel and others with knowledge that they intended to use the information to execute short sales in advance of the public announcement of the secondary offerings. Cooper shared the MNPI to induce Broker-Dealer customers, including Lowe and Ringel, to commit to buy shares in the offerings so that Cooper and Broker-Dealer would receive compensation from the underwriters. Lowe, in turn, passed MNPI to Grewal. Lowe, Ringel and Grewal used MNPI to obtain more than $1 million in illegal profits on their short sales in advance of secondary offerings. Evidence obtained from judicially authorized wiretaps revealed that in connection with numerous secondary offerings between approximately January 2023 and May 2023, Cooper and a co-conspirator (Co-Conspirator #1) obtained MNPI from investment firms that were underwriting the secondary offerings and provided MNPI to Lowe, Ringel and others, with knowledge that Lowe, Ringel and others intended to trade securities in advance of secondary offerings based on the MNPI. Those secondary offerings included the companies Chicken Soul for the Soul Entertainment, Inc. (NASDAQ: CSSE), Revelation Biosciences, Inc. (NASDAQ: REVB) and Tivic Health Systems, Inc. (NASDAQ: TIVC). Fraudulent Trading on MNPI in the CSSE Secondary Offering On or about March 30, 2023, Cooper obtained MNPI about the timing and pricing of the CSSE offering from the sole managing underwriter for the deal and shared that information with Ringel, who traded in CSSE in advance of the offering using the information, and Co-Conspirator #1, who gave the inside information to Lowe. Lowe traded based on the MNPI and tipped Grewal, who also traded using the MNPI. Fraudulent Trading on MNPI in the REVB Secondary Offering Between February 6, 2023 and February 8, 2023, Lowe obtained MNPI about the timing of the REVB offering from a representative of the sole underwriter on the deal and passed it to Grewal, who traded in REVB using the information. Between February 7, 2023 and February 9, 2023, Ringel traded REVB based on MNPI that Cooper received from another representative of the sole underwriter on the deal. Fraudulent Trading on MNPI in the TIVC Secondary Offering On or about February 6, 2023, Cooper called a representative of the sole managing underwriter for the TIVC offering. The next day, Co-Conspirator #1 communicated to Lowe that TIVC intended to offer shares of its stock in a secondary offering. After learning this information, Lowe traded in TIVC and passed the MNPI he received from Co-Conspirator #1 to Grewal, who then also traded in TIVC. Between February 6, 2023 and February 8, 2023, Ringel and Cooper spoke over the telephone numerous times and Cooper executed a number of short sales in TIVC. In particular, on February 8, 2023 (after Co-Conspirator shared MNPI about the TIVC deal with Lowe), Cooper spoke with Co-Conspirator #1 and then with Ringel. Approximately six minutes after Ringel and Cooper spoke, Ringel executed additional short sales in TIVC. The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty. The defendants face up to 25 years in prison if convicted of the charges. The government’s case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Jessica K. Weigel, Sophia M. Suarez and Adam R. Toporovsky are in charge of the prosecution, with assistance from Paralegal Specialist Liam McNett. The Defendants : DAVID COOPER Age: 38 Larchmont, New York RANDY GREWAL Age: 54 Anthem, Arizona JOHN LOWE (also known as “Clams”) Age: 61 Sayville, New York RICHARD RINGEL Age: 54 Boca Raton, Florida E.D.N.Y. Docket No. 25-CR-10 (DG)


title: Three Individuals Sentenced For Participating In An International Mail And Wire Fraud Conspiracy

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark A. Totten today announced that three individuals were sentenced for participating in an international mail and wire fraud scheme originating in Nigeria and frequently targeting elderly individuals. The defendants pleaded guilty in July 2024. “Financial fraud is not a ‘faceless’ crime – and today’s sentencings help secure a measure of justice for the victims of this international fraud scheme,” said U.S. Attorney Mark Totten . “Some of the victims lost their retirement savings, took loans against their homes, or suffered other financial distress because of the defendants’ lies. The defendants used modern technology, including the internet and social media platforms – something we all rely upon every day to communicate and carry out legitimate tasks in our daily lives – to prey on elderly and vulnerable victims. My office will continue to vigorously pursue justice for the victims of financial fraud.” Fatai Okunola, 38, of Kalamazoo, Michigan, was sentenced to 121 months’ imprisonment for his role in the fraud conspiracy and ordered to pay restitution of $731,879.16; he was additionally sentenced to 60 months’ imprisonment for making false statements when seeking naturalization as a U.S. Citizen and 120 months’ imprisonment for committing money laundering with the proceeds from the fraud conspiracy, those sentences running concurrently with the sentence for his participation in the conspiracy. The court also ordered him to report to immigration authorities for deportation following his sentence. Oluwaseyi Adeola, 34, of Dallas, Texas, was sentenced to 34 months’ imprisonment for his role in the fraud conspiracy and ordered to pay restitution of $409,968.93. Ijeoma Adeola, 36, also of Dallas, Texas, was sentenced to three years’ probation for misprision of a felony (the failure to report the commission of a felony to appropriate authorities and taking an affirmative step to assist in the concealment of the crime) and ordered to pay restitution of $48,570. Cory McDougal, 33, of Romeoville, Illinois, who also pled guilty to the fraud conspiracy, will be sentenced on a later date to be determined by the court. According to court records, the defendants conspired with individuals primarily in Nigeria to defraud individuals in the United States, many that were elderly or particularly vulnerable, through a variety of fraud schemes using interstate wire transmissions or the mail system. The conspirators in Nigeria created false online personas to develop relationships with their victims over the internet, through social media, by text messages or by telephone. These relationships centered around romantic interests, offers to buy or sell goods or services, apartment rentals, or offers to make loans or provide grant funding, among other schemes. The conspirators sent pictures or provided other information to the victims to make their schemes appear genuine. When the conspirators used telephone calls, they used voice-over-internet-protocol numbers to make it appear as if the calls were originating within the United States near the victims. After developing the relationships, the conspirators asked for money for a variety of reasons related to the scheme. After the victims agreed, the conspirators directed the victims to send the money to the defendants, who opened numerous bank accounts to receive the victims’ money. On some occasions, the defendants received the victims’ money in post office boxes maintained under alias names or through payments made payable to “shell” businesses that the defendants, including Ijeoma Adeola, created to receive fraud proceeds. The victims sent the money to the defendants through the mail, bank-to-bank transfers, or through peer-to-peer money transfer services like Zelle or PayPal. After the defendants received the money in their accounts, they transferred the money to each other, to the conspirators overseas, and to their own accounts in Nigeria. Fatai Okunola used some of the fraud proceeds he received to assist others in purchasing automobiles in the United States and then exporting them to Nigeria. According to the indictment, defendants received more than $2 million dollars in their accounts from the scheme between 2017 and 2022. “Our agents will continue the important work of dismantling interstate and international fraud schemes that would seek to rob Americans of their hard-earned money,” said HSI Detroit Special Agent in Charge Angie M. Salazar . “These cases are too often a reminder for us to check in on elderly family members and members of our community to ensure that they are not taken advantage of by sophisticated schemes.” “Today's sentencing of these defendants underscores our dedication to safeguarding vulnerable victims from those who attempt to exploit them through various fraud schemes,” said Rodney M. Hopkins, Inspector in Charge of the Detroit Division of the U.S. Postal Inspection Service . “This case's outcome showcases the outstanding efforts of the U.S. Postal Inspection Service, and our law enforcement partners in dismantling this international fraud scheme and delivering justice for those affected.” Anyone who suspects an ongoing internet crime is encouraged to file a report with the Internet Crime Complaint Center (IC3.gov), the FBI’s central hub for reporting cybercrime. Those reports often provide invaluable information to help the FBI and its law enforcement partners investigate and prosecute fraud schemes like the one charged in this case. Federal law enforcement provides a number of tips on how to protect yourself from similar internet or email scams, including: Be cautious of unsolicited phone calls, e-mails, and mailings. Never give or send any sensitive information (including your date of birth, account numbers, or passwords), credit or debit card numbers, or money to unverified people or businesses. Resist the pressure to act quickly. Scammers create a false sense of urgency to lure people to immediate action. If you recognize a scam attempt, immediately end all communication with the perpetrator. The Homeland Security Investigations, and United States Postal Inspection Service, Grand Rapids offices, are investigating this case. The Kalamazoo Department of Public Safety also provided valuable assistance. Assistant U.S. Attorney Ron Stella prosecuted the case. ###


title: Indictment Charges 7 Hartford Gang Members with Murder & Racketeering Offenses

component: Criminal - Violent Crime and Racketeering Section

body_text: Seven alleged members of a violent Hartford gang have been charged in a federal indictment accusing them of a years-long interstate RICO conspiracy involving multiple murders, attempted murder, gun trafficking, extortion, arson, drug trafficking, and other crimes. The announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; Sharmese L. Walcott, State’s Attorney for the Hartford Judicial District; Hartford Police Chief Kenny A. Howell; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation (FBI); and Michael J. Krol, Special Agent in Charge of the New Haven Division of the Homeland Security Investigations (HSI). The 15-count indictment, which was returned by a grand jury in Hartford on January 8, 2025, charges ANGEL RIVERA , a.k.a. “Rico,” a.k.a. “Slatt,” 24 RAQUAN KNIGHT , a.k.a. “RQ,”21 PAUL DOWNER , a.k.a. “Luap Benji,” 28 MEKHI THOMPSON , a.k.a. “Midnight,”24 PAUL CLARKE , a.k.a. “Tommy Bunz,” 30 TYSHON WALKER , a.k.a. “Pone Gwapoo,”26 JOSHUA CRUZ , a.k.a. “Hop-out Curly,” 24 Clarke and Walker were arrested on January 9, 2025, and were ordered detained. Rivera, Knight, Thompson, and Cruz were previously detained in state custody on related charges, and Downer was previously detained in state custody for unrelated offenses. The indictment alleges that the Hoodstar Gzz gang, which since it was formed in 2010 has referred to itself by a variety of names, including “Hoodstars,” “Hoodstarz,” “Hoodstar Gzz,” and “Gz,” generally operates between Capen, Westland, Enfield, and Main Streets in Hartford. The gang has distributed narcotics and engaged in multiple violent acts against rival gang members and innocent citizens; trafficked narcotics in Vermont and moved firearms from Vermont to Connecticut; utilized stolen vehicles in furtherance of the gang’s affairs and burned vehicles that were used in the commission of crimes; and recorded and distributed rap music to promote the gang’s criminal activity. Among the violent acts committed by the defendants, the indictment alleges that: On April 16, 2019, Thompson attempted to murder members of a rival gang, which resulted in gunshot wounds to individuals with the initials T.J., G.C., and J.H. in Hartford. On January 22, 2021, Downer shot R.F. in the femoral artery for failure to pay a drug debt in St. Johnsbury, Vermont. On April 10, 2021, Rivera, Knight, Cruz, and other Hoodstar Gzz members and associates shot and killed Jamari Preston, a member of the rival Ave gang and wounded J.O. in Hartford. On January 18, 2022, Rivera, Walker, and Cruz and other Hoodstar Gzz members and associates shot at A.G., a.k.a. “Watts,” and shot and injured J.O. in Hartford. On January 18, 2022, Rivera, Walker, Cruz, and other Hoodstar Gzz members and associates shot and killed Kendall Fair, a.k.a. “Swerve,” and shot and injured J.W. in Hartford. On June 19, 2022, Knight shot E.A. in Hartford. On August 1, 2022, Rivera and other members and associates of the Hoodstar Gzz gang shot and killed Brian Evans and shot and injured D.G. and J.M. in Hartford. On September 14, 2022, Thompson and Rivera got into a confrontation with Devante Gardner over a rental car Thompson failed to return. Thompson then shot and killed Gardner. On October 27, 2022, Thompson and Rivera were involved in a car accident with a black Nissan sedan. Thompson and Rivera fled the scene. The Nissan followed them for approximately 1.6 miles. Thompson then exited the vehicle and shot and killed the driver of the Nissan, Manuel Rodriguez. “We allege that members of the Hoodstar Gzz have engaged in murder and numerous other violent acts against both rival gang members and innocent civilians, and their criminal activity extended to northern Vermont, where they trafficked drugs and acquired firearms, some of which they transported back to Connecticut,” said U.S. Attorney Avery. “This case is a clear demonstration of our commitment to relentlessly pursue and dismantle organizations that threaten the peace and security of our communities. The effort to connect these violent acts and bring these individuals to justice has been a collaborative one, and I want to thank the federal, state, and local law enforcement agencies involved for their dedication to make our communities, both here in Connecticut and in Vermont, safer.” This indictment – which is the first RICO indictment since the launch of the Violent Crime Initiative (VCI) in Hartford in April 2024 – alleges that the defendants engaged in numerous violent acts, including shooting at suspected rival gang members and shooting and killing a motorist with whom two of the defendants got into a car accident,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Violent gangs like the Hoodstars terrorize local communities and threaten safety across Hartford. Today’s announcement demonstrates that the VCI is already making an impact in Hartford, through the deployment of Criminal Division resources, in close coordination with our partners, to target the specific drivers of violent crime and hold gang members accountable for their crimes.” “The Hartford State’s Attorney’s Office and the U.S. Attorney’s Office have endeavored to partner on crime reduction strategies to benefit the community, law enforcement, and improve case outcomes,” said Hartford State’s Attorney Walcott. “There is a tremendous amount of work that goes into building these cases and it takes a team of people all rowing the same direction. These arrests are a clear sign of our commitment to making a significant impact on gun violence in and around the Hartford community, and we will continue to work, tirelessly, to bring to justice those responsible.” “For more than two years, the FBI and its law enforcement partners have worked tirelessly to disrupt and dismantle the Hoodstarz organization,” said FBI Special Agent in Charge Fuller. “This violent criminal organization has been responsible for wreaking havoc in the Hartford area and its takedown is a positive step forward in the never-ending quest to keep our community safe. Let this be a firm message that the FBI and its local, state, and federal partners will remain relentless in the fight to identify, disrupt, and dismantle violent criminal organizations.” “Criminal gangs terrorize communities, leaving violence and destruction in their wake,” said HSI Special Agent in Charge Krol. “These individuals have been charged with crimes ranging from firearms possession to murder and, if convicted, will face serious federal prison time. HSI works with our state, local, and federal partners to dismantle criminal gangs like the Hoodstar Gzzs and help communities reclaim their safety and their streets.” The indictment charges Rivera, Knight, Downer, Thompson, Clarke, Walker, and Cruz with one count of conspiracy to engage in a pattern of racketeering activity, an offense that ordinarily carries a maximum term of imprisonment of 20 years. If the defendants are convicted of a special sentencing factor, they face a maximum term of imprisonment of life. These defendants are also charged with conspiring to distribute and possessing with intent to distribute controlled substances, which carries a mandatory sentence of at least 10 years’ imprisonment. The indictment also charges Rivera and Thompson with murder in violation of the Violent Crimes in Aid of Racketeering (“VCAR”) statute. This offense carries a mandatory term of imprisonment of life, or death if the government seeks the death penalty in this matter. Both defendants are also charged with using and discharging a firearm during and in relation to a crime of violence, which carries a mandatory consecutive sentence of at least 10 years of imprisonment, and using a firearm during and in relation to a crime of violence causing death, which carries a maximum penalty of life imprisonment, or death if the government seeks the death penalty in this matter. Finally, the indictment charges Cruz and Walker with possessing a machine gun during and in relation to a drug trafficking offense, which carries a mandatory consecutive sentence of at least 30 years of imprisonment, and illegal possession of a machine gun, which carries a maximum penalty of 10 years’ imprisonment. This prosecution is a part of the Justice Department’s Violent Crime Initiative (VCI) in Hartford, and the Organized Crime Drug Enforcement Task Force (OCDETF) and Project Safe Neighborhood (PSN) programs. The VCI surges law enforcement tools and resources to target gangs and other violent groups that are threatening the safety and security of communities in the cities across the nation. The VCI utilizes prosecutors from the Criminal Division’s Violent Crime and Racketeering Section – the nation’s foremost experts in racketeering prosecutions – to work alongside prosecutors from the U.S. Attorneys’ Offices, as well as dedicated investigative agents, analysts, and forensic experts from FBI, ATF, the Drug Enforcement Administration (DEA), and other federal, state, and local law enforcement agencies. PSN brings together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn . OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . This ongoing investigation is being conducted by the FBI’s Northern Connecticut Gang Task Force, HSI, ATF, the Hartford Police Department, the East Hartford Police Department, the Windsor Police Department, the Connecticut State Police, the Connecticut Forensic Science Laboratory, the Connecticut Department of Correction, the St. Johnsbury (Vt.) Police Department, the Northfield (Vt.) Police Department, and the Vermont State Police. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Dearington, John T. Pierpont, Jr., and Shan Patel from the District of Connecticut, and Trial Attorneys Jeremy Franker and Christopher Usher from the Criminal Division’s Violent Crime and Racketeering Section, with substantial assistance from the U.S. Attorney’s Office for the District of Vermont.


title: Rock Hill Woman Sentenced to Federal Prison for Stealing from Employer

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Christina Stevens Gregory, 71, of Rock Hill, was sentenced to two years in federal prison after pleading guilty to wire fraud. Evidence presented to the court showed that Gregory defrauded her employer, Industrial Test Systems, Inc, of approximately $3.3 million over a span of 20 years from 2004 to 2023. Gregory utilized her position as an accountant for Industrial Test Systems to deposit checks that were payable to Industrial Test Systems into her personal bank account. United States District Judge Mary Geiger Lewis sentenced Gregory to 24 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Additionally, Gregory was ordered to pay Industrial Test Systems a remaining balance of $2,256,900.44 in restitution. This case was investigated by the FBI Columbia Field Office and the Rock Hill Police Department. Assistant U.S. Attorney Scott Matthews is prosecuting the case. ###


title: Farmville felon sentenced to over 13 years in prison for illegal firearm possession

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

body_text: RICHMOND, Va. – A Farmville man was sentenced today to 13 years and four months in prison for being a felon in possession of a firearm. According to court documents, on Oct. 31, 2023, an officer with the Richmond Police Department encountered Pierre Redd, 32, asleep in the driver seat of a vehicle stopped at an intersection in Richmond. The car was in drive at the time. The officer observed in plain view a loaded handgun between Redd’s legs and a bag containing 15.3 grams of cocaine in Redd's hand. The officer opened the driver-side door, removed the firearm and cocaine, and awakened Redd. The officer directed Redd to place the car in park, and then reached in and placed the car in park himself. The officer then directed Redd to exit the vehicle. After Redd repeatedly declined to comply, the officer placed a handcuff on Redd's left wrist. Redd then placed the car in drive and sped away. The officer returned to his police vehicle and pursued Redd with his lights and siren engaged. As Redd attempted to flee, he ran numerous stop signs and drove on the wrong side of the street. Redd eventually pulled into an apartment complex, where he exited his vehicle without putting it in park. The officer eventually subdued and arrested Redd after a foot pursuit. At the time of the offense, Redd had several previous felony convictions, including, among others, for attempted malicious wounding, reckless handling of a firearm, receiving a stolen firearm, possession of a firearm by a felon, assault, forgery of public records, and possession of heroin. As a previously convicted felon, Redd cannot legally possess a firearm or ammunition. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorneys Patrick J. McGorman and Stephen W. Miller prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-56.


title: Bloods Gang Member Sentenced to 23 Years in Prison for Sex Trafficking of Minors

body_text: Earlier today, at the federal courthouse in Central Islip, Joshua Lampley-Reid, also known as “Tio” and “Fendi,” and a member of the Makk Balla set of the Bloods street gang, was sentenced by United States District Judge Gary R. Brown to 23 years in prison for sex trafficking of minors. Lampley-Reid operated as a “pimp,” using violence and the threat of violence to compel the commission of commercial sex acts for his financial benefit, including by minors as young as 15 years old. Lampley-Reid pleaded guilty to the charge in August 2022. Carolyn Pokorny, Acting United States Attorney for the Eastern District of New York, William S. Walker, Special Agent in Charge, Homeland Security Investigations, New York (HSI) and Errol D. Toulon, Jr., Suffolk County Sheriff, announced the sentence. “The defendant is a ruthless predator who exploited vulnerable minors without families or homes, and sexually trafficked them for his own financial gain,” stated Acting United States Attorney Pokorny. “He is deserving of today’s significant jail sentence for the horrific physical and psychological abuse he inflicted on the victims, which, unfortunately, will continue to affect them for years to come. It is my sincere hope that the justice meted out today will provide some measure of comfort to these young women and help them on their journey to healing.” “This sentence brings some justice to the minors victimized by this dangerous predator who is now put away from causing any further harm to our community’s most vulnerable members,” stated HSI New York Special Agent in Charge Walker. “Our children deserve to be protected from this violence and shielded from the lifelong trauma that accompanies it. HSI works collectively with our federal, state and local law enforcement partners to bring an end to child exploitation and sex trafficking. Prosecuting those who seek to exploit children for their own self-gratification or greed is one of our top priorities.” “The sentencing of this dangerous gang member is a clear message that those who prey on the most vulnerable members of our community will be held accountable,” stated Suffolk County Sheriff Toulon. “The Suffolk County Sheriff’s Office is committed to continuing to fight human trafficking and working tirelessly with our federal and local partners to ensure that justice is served and that survivors are supported in their journey toward recovery.” As set forth in the government’s sentencing memorandum and other court documents, in December 2019, Lampley-Reid began recruiting females, including Jane Doe 1 and Jane Doe 2, to engage in commercial sex acts for his own financial benefit. The defendant used social media and other internet applications to establish relationships with potential victims and groomed them by conveying a romantic interest in them, manipulating them into performing commercial sex acts and then effectively enslaving them through acts of force and coercion. The defendant directed when, where and with whom the commercial sex acts would be performed. The defendant met resistance to his commands, or failure to pay him, with violence or the threat of violence. To maintain control over his victims, the defendant alternately showed affection and acted violently, not only beating and choking his victims, but also withholding food and other basic necessities. This psychological and emotional abuse was depicted in videos recovered from the defendant’s cellular telephone. He tracked his victims’ phones, threatened their families and stalked them after they left him. The defendant used his association with the Makk Balla set of the Bloods street gang to terrorize them. He also engaged in sexual intercourse with his minor victims, which he often video recorded, and managed his prostitution business over the Internet, posting sexually exploitative photos of minor victims that he took or persuaded them to take of themselves in order to further his trafficking business. Although this conduct was concentrated in Nassau County, the defendant also transported certain victims to other states, including Florida, North Carolina and Maryland. If you are a victim or have information about sex trafficking, call HSI at 1-866-347-2423. To get help from the National Human Trafficking Hotline, call 1-888-373-7888 or text HELP or INFO to BeFree (233733). HSI is ready to work with you in your native language, regardless of your immigration status. The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorney Megan E. Farrell is in charge of the prosecution. The Defendant : JOSHUA LAMPLEY-REID (also known as “Tio” and “Fendi”) Age: 30 West Hempstead, Long Island E.D.N.Y. Docket No. 21-CR-319 (S-1) (GRB)


title: Federal Inmate Sentenced To Additional 10 Years In Prison For Possessing Child Pornography

component: USAO - New Jersey

body_text: CAMDEN, N.J. – A federal inmate serving a ten-year sentence for possessing child pornography was sentenced today to an additional ten years in prison for possessing images and videos of child sexual abuse while incarcerated on his prior conviction, Acting U.S. Attorney Vikas Khanna announced. Daniel Baldwin, 33, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of possession of child pornography. U.S. District Judge Karen M. Williams imposed the sentence today. According to documents filed in this case and statements made in court: Baldwin was convicted in 2018 of possessing child pornography and sentenced to ten years imprisonment. In June 2022, while serving his sentence at a federal correctional institution in New Jersey, corrections officers found a SD card hidden in Daniel Baldwin’s clothing. A subsequent search of the SD card revealed hundreds of images and videos of child pornography, including depictions of prepubescent minors engaged in sexually explicit conduct. In addition to the prison term, Judge Williams sentenced Baldwin to seven years of supervised release. Acting U.S. Attorney Khanna credited special agents of the Federal Bureau of Investigation, under the leadership of Special Agent in Charge Brian J. Driscoll, with the investigation leading to today’s sentencing. He also thanked FCI Fort Dix staff for their assistance in the investigation. The Government is represented by Assistant U.S. Attorney Daniel A. Friedman of the U.S. Attorney’s Office’s Criminal Division in Camden.


title: Duval County resident imprisoned for sexual exploitation of a child

component: USAO - Texas, Southern

body_text: CORPUS CHRISTI, Texas – A 32-year-old Duval County resident has been ordered to serve 30 years in prison after admitting to abusing a child, announced U.S. Attorney Alamdar S. Hamdani. Oscar Luis Saenz Jr. pleaded guilty Sept. 26, 2024. U.S. District Judge Nelva Gonzales Ramos has now ordered Saenz to serve 360 months in federal prison. At the hearing, the court also heard additional information including testimony from the mother of the victim detailing the profound impact Saenz’ conduct has had on the family. In handing down the prison terms, the court noted the egregiousness of the offense and the age of the victim. Saenz was further ordered to pay $15,000 in restitution to a known victim and will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Saenz will also be ordered to register as a sex offender. The investigation into Saenz began when authorities discovered he was participating in chat rooms involving discussions of child sexual assault material (CSAM). During an online conversation, Saenz claimed he had recently sexually abused a child. On Aug. 28, 2023, Saenz sent a video of himself sexually abusing a young child. Law enforcement quickly acted and arrested him the same day. After his arrest, Saenz admitted he had produced the video of himself sexually abusing the young child. Saenz was also in possession of a phone. Law enforcement discovered approximately 100 files depicting CSAM on the device. Saenz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Homeland Security Investigations conducted the investigation with assistance of the Duval County Sheriff’s Office. Assistant U.S. Attorney Patrick Overman prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: Arizona Man Sentenced to 240 Months in Prison

component: Drug Enforcement Administration (DEA)

body_text: FORT WAYNE –Alexander J. Short, 26 years old, of Phoenix, Arizona, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to conspiring to distribute and possess with intent to distribute fentanyl, announced United States Attorney Clifford D. Johnson. Short was sentenced to 240 months in prison followed by 5 years of supervised release. According to documents in the case, from 2020 through 2023, Short engaged in a conspiracy to supply fentanyl pills to a distribution group in the Northern District of Indiana. This case was investigated by the Federal Bureau of Investigation’s Fort Wayne Safe Streets Gang Task Force, which includes the Indiana State Police, the Allen County Sheriff’s Department, and the Fort Wayne Police Department, with assistance from the Drug Enforcement Administration’s North Central Laboratory, the Phoenix (Arizona) Police Department, the Glendale (Arizona) Police Department, and the Allen County (Indiana) Prosecuting Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Anthony W. Geller and Lesley J. Miller Lowery. This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.