title: United States Secret Service Seizes More Than $290,000 in Elder Fraud Scam

component: Asset Forfeiture Program

body_text: Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today the seizure of $290,399.73 by the U.S. Secret Service in an alleged elder fraud scam. The seizure arises from an alleged online scam which targeted an elderly couple residing in the Wenatchee area. The alleged perpetrator befriended the couple through “WhatsApp” and claimed to be a 35-year old traveling musician. Over the course of two years, the alleged perpetrator persuaded the couple to send more than $20,000. Then, in February 2023, the alleged perpetrator convinced the couple to do a “cash out refinance” of their residence. The alleged perpetrator told the couple the funds would be used to participate in a real estate investment, with a promise of big investment returns. The alleged perpetrator was able to induce the couple to obtain the cash out refinance mortgage for their residence, transfer the funds to a title company, and attempted to have the funds sent to the alleged perpetrator’s bank account. However, when one of the victims went to a local Wenatchee title company to complete the transaction, the CEO of the title company became suspicious and contacted law enforcement. The U.S. Secret Service subsequently seized the entirety of the funds, $290,399.73, before the alleged perpetrator was able to access the account. The forfeited property will be returned to the victim through a process known as remission. No criminal charges have been filed at this time related to the seizure. “Financial fraud schemes targeting the elderly are reprehensible. With our increasing use and dependency on technology, fraudsters have found new ways to target and scam unsuspecting Americans,” said U.S. Attorney Vanessa R. Waldref. “The public can be assured that our office is committed to investigating and prosecuting financial fraud scams, especially those that impact the elderly. We will continue to work diligently with our law enforcement partners to vigorously prosecute those who engage in financial fraud, and to strengthen our communities by protecting our elderly and vulnerable citizens.” “This case represents a significant result in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public,” said Greg Ligouri, Resident Agent in Charge of the Spokane Office of the U.S. Secret Service. “The U.S. Secret Service is proud to have contributed to this result and will be relentless in protecting American citizens from fraud.” “I commend the members of the Wenatchee community who took it upon themselves to look out for the elderly and vulnerable and affirmatively reached out law enforcement to protect them from fraud,” said U.S. Attorney Waldref. “I also commend the stellar investigative work and quick intervention by the U.S. Secret Service.” This case was investigated by the U.S. Secret Service, Spokane Resident Office, and Assistant United States Attorney Brian M. Donovan is prosecuting this case on behalf of the United States. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage at https://www.justice.gov/elderjustice . For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch . The Department of Justice provides information about a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which are available at https://www.ovc.gov . The allegations set forth herein are merely allegations, and all potential defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Buffalo Man Pleads Guilty To Drug And Gun Charges

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Rayshawn Miller, 40, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession with intent to distribute fentanyl and acetyl-fentanyl, and possession of firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine. Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that on July 20, 2021, the DEA executed a search warrant at Miller’s Broadway Street residence and seized 167 grams of a mixture containing fentanyl and acetyl fentanyl, 21 grams of crack cocaine, 124 grams of cocaine, two pistols, ammunition, $15,380 in cash, and drug packaging materials. The plea is the result of an investigation by Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia. Sentencing is scheduled for July 11, 2023, at 9:00 a.m. before Judge Sinatra. # # # #


title: Buffalo Man Going To Prison For COVID Relief Fraud

body_text: BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Christian Johnson, 25, of Buffalo, NY, who was convicted of wire fraud, was sentenced to serve 30 months in prison by U.S. District Judge John L. Sinatra, Jr. Assistant U.S. Attorney David J. Rudroff, who handled the case, stated that Johnson submitted multiple fraudulent Paycheck Protection Program loan applications on behalf of a company called Million Man LLC (Million Man) to at least three financial institutions. The applications contained numerous false and misleading statements about Million Man’s business and operations, including the number of employees and average monthly payroll. Johnson submitted falsified federal tax documents and payroll records in support of the applications. The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans, guaranteed by the Small Business Administration (SBA), to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses. This case was investigated by the FDIC-OIG, TIGTA-OIG, FBI, and SBA-OIG. Trial Attorneys Matthew Reilly and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David J. Rudroff of the U.S. Attorney’s Office of the Western District of New York are prosecuting the case. The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the nine months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . # # # #


title: Buffalo Woman Sentenced For Setting Fire That Injured A Buffalo Firefighter

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced that Jade Smart, 34, of Buffalo, NY, who was convicted of unlawfully damaging or destroying property by means of fire or explosive causing personal injury to a public safety officer, was sentenced to serve 51 months in prison by U.S. District Judge John L. Sinatra, Jr. Assistant U.S. Attorney P. Richard Antoine, who handled the case, stated that in the early evening hours of January 28, 2020, the Buffalo Fire Department responded to the scene of a fire at 79 Kilhoffer Street in Buffalo, and found the building engulfed in flames. Ultimately, the building burned completely to the ground. A firefighter injured his back fighting the fire and subsequently went on medical leave to address the injuries. Investigators recovered a firebomb, and a red gas can nearby and ruled the fire an arson. Video footage recovered from a nearby gas station shows Smart filling up a red plastic gas can. Smart then went to 79 Kilhoffer Street, where she poured gasoline from the plastic gas can into a used iced tea bottle and used it to set the residence on fire. 79 Kilhoffer Street was a building owned by the Buffalo Peacemakers and under renovation and possessed by Habitat for Humanity. The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Buffalo Fire Department, under the direction of Commissioner William Renaldo.


title: Port St. Lucie Tattoo Artist Pleads Guilty to Producing Child Sexual Abuse Material

component: USAO - Florida, Southern

body_text: MIAMI – Dustin Singleton, 42, of Hobe Sound, pleaded guilty before U.S. District Court Judge Aileen M. Cannon to three counts of producing child sexual abuse material, possession with intent to distribute methamphetamine, and possession of a firearm and ammunition as a convicted felon. On April 29, 2022, following a traffic stop in Stuart, Fla., Martin County Sheriff’s Office (MCSO) detectives found 32.86 grams of methamphetamine with a purity level of 98%, approximately 5 grams of cocaine, less than a gram of fentanyl, approximately 195 grams of marijuana, several glass pipes, hypodermic needles, a loaded Smith & Wesson, Bodyguard .380 caliber semi-automatic pistol, a loaded Glock type 9mm pistol built from a Polymer80 PF940C kit (“Glock clone”), several unused baggies, several pill bottles with various controlled substances, $1,104.00 in U.S. currency, 10 cellphones, and three tablets in Singleton’s vehicle. Singleton is a convicted felon and prohibited by law from possessing firearms. In July 2022, a Homeland Security Investigations (HSI) agent and two MCSO detectives received information that tattoo artist Singleton aka “Greenhouse” exchanged narcotics and tattoos for sexual activity with minor females at his Port St. Lucie tattoo shop. Two rounds of search warrants were obtained – the first one for narcotics and the second one for child sexual abuse material, which targeted Singleton’s electronic devices. Forensic examinations of the devices revealed numerous images of Singleton and Elijah Daniel Shaw, both engaging in sexually explicit activity with a freshly tattooed 13-year-old minor female victim—recorded inside the tattoo shop. On August 2, 2022, law enforcement arrested Shaw who identified images/videos of himself, Singleton, and the 13-year-old minor female victim and confirmed that the video was recorded inside Singleton’s tattoo parlor. A HSI special agent applied for additional search warrants for Singleton’s and Shaw’s social media and iCloud accounts. Forensic Examiners located numerous videos of child sexual abuse material, spanning six hours, including videos of Singleton tattooing the 13-year-old, and later holding a smoking glass pipe for the victim, while he and Shaw both engaged in sexually explicit activity with her. Investigators located videos revealing two additional minor victims, each 17 years of age, engaging in sexually explicit activity with Singleton. Singleton had secretly recorded himself having sex with the minors, using his tattoo shop’s video surveillance system, which he saved in his iCloud. For each of the three counts of producing child sexual abuse material, Singleton faces a mandatory minimum sentence of 15 years in prison and up to 30 years in prison followed by a lifetime of supervised release. In addition, he will be required to register as a sex offender. For the drug distribution charge, Singleton faces up to 20 years in prison, followed by at least 3 years of supervised release. For the firearm charge, Singleton faces up to 10 years in prison, followed by supervised release for up to 3 years. Elijah Daniel Shaw, on January 25, pleaded guilty to producing and possessing child sexual abuse material, before U.S. Magistrate Judge Melissa Damian, sitting in Miami. Shaw is scheduled to be sentenced by U.S. District Court Judge Aileen M. Cannon on June 27, in Fort Pierce. United States Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Michael E. Buckley, HSI, Miami, announced the guilty plea. HSI Fort Pierce Office investigated the case, with assistance from Martin County Sheriff’s Office, St. Lucie County Sheriff’s Office, and Port St. Lucie Police Department. Assistant U.S. Attorneys Carmen Lineberger and Michael Porter are prosecuting it. This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14048. ###


title: Man Charged with COVID-Relief Fraud and Money Laundering

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – May 4, 2023 SAN DIEGO – Nasser Salman, a former San Diego resident living in Morocco, was arraigned in federal court today on charges that he fraudulently obtained more than $400,000 in COVID-relief loan funds on behalf of three companies. According to the indictment, Salman submitted fraudulent applications to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) in connection with Lemon Grove Deli and Grill, Inc., Al Laith Trading and Construction Consulting Inc. and Alliance Security Consulting Services, Inc. The indictment said that between April and August 2020, Salman successfully obtained five separate PPP and EIDL loans totaling $401,000 using applications that included false representations about the number of employees, the average monthly payroll, and the gross receipts earned by these purported businesses. Salman also submitted fictitious documents in support of the applications According to the indictment, when Salman applied for the loans, he acknowledged the funds must be used to retain workers and maintain payroll, or to make mortgage interest payments, lease payments and utility payments. Instead, as alleged in the indictment, Salman engaged in a series of financial transactions, including international wire transfers to a Morocco-based bank account, that were designed to conceal and disguise the fact that the sources for the funds were the fraudulently obtained PPP and EIDL loans. “These loan programs were designed to render economic relief to Americans during an unprecedented public health emergency,” said U.S. Attorney Randy Grossman. “This office is dedicated to investigating and prosecuting those who exploited the global pandemic to enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case. “Covid relief fraud not only waste taxpayers’ dollars; it undermines the public trust of government programs,” said Chad Plantz, special agent in charge, HSI San Diego. “HSI will continue to work with our law enforcement partners to investigate and bring to justice fraudsters who diverted financial relief away from Americans at a time when they need it the most.” A detention hearing is scheduled for May 9, 2023, at 9:30 a.m. before U.S. Magistrate Judge Barbara L. Major. The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . DEFENDANTS Case Number 23CR0821-LL Nasser Salman Age: 60 United States SUMMARY OF CHARGES Counts 1-5- Wire Fraud Title 18, U.S.C., Section 1343 Maximum Penalty: Thirty years in prison and $1,000,000 fine Counts 6-11 – Laundering of Monetary Instruments Title 18, U.S.C., Sections 1956(a)(1)(a)(B)(i) Maximum Penalty: Twenty years in prison; a fine of $500,000 or twice the amount of the monetary instruments involved, whichever is greater AGENCIES Homeland Security Investigations (HSI) Small Business Administration (SBA) The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Las Vegas Resident Sentenced To Prison For Million-Dollar Tax Refund Fraud Scheme

component: USAO - Nevada

body_text: LAS VEGAS – A Las Vegas man was sentenced today to 30 months in prison followed by one year of supervised release for claiming $989,031 in fraudulent income tax refunds from the IRS for himself and shell companies for tax years 2007 through 2011. In December 2022, a federal jury convicted Anthony Uvari of four counts of making and subscribing false tax returns. United States District Judge Andrew P. Gordon presided over the four-day trial. According to court documents and evidence presented at trial, between December 2008 and May 2013, Uvari filed tax returns that falsely claimed businesses — including numerous gaming companies and a bank — had paid him or his companies gambling winnings or other income, but withheld more than $900,000 of income tax on his behalf and paid it to the IRS. As a result, he requested from the IRS over $900,000 in fraudulent income tax refunds. The IRS paid out more than $300,000 in fraudulently requested refunds before detecting Uvari’s scheme and denying the remaining refund requests. After one such refund request was denied, Uvari provided the IRS with new false documents — including a fake log supposedly documenting his gambling — in a further effort to deceive the IRS into providing the fraudulently requested tax refund. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Albert Childress of the IRS Criminal Investigation (IRS-CI) made the announcement. This case was investigated by IRS-CI. Assistant United States Attorneys Eric Schmale and Jessica Oliva prosecuted the case. ###


title: Man Sentenced to Over 19 Years in Federal Prison

component: USAO - Tennessee, Western

body_text: Memphis, TN – Jon Glover, 57, of Millington, was sentenced to federal prison for distribution of methamphetamine and for being a convicted felon in possession of a firearm. United States Attorney Kevin Ritz announced the sentence today. According to U.S. Attorney Ritz, and the information presented in court, in 2021, the Drug Enforcement Administration (DEA) began investigating the drug trafficking activities of Glover. During the course of the investigation, officers seized approximately one-half kilogram of methamphetamine and a Smith & Wesson 9mm caliber pistol. After his arrest, Glover pleaded guilty. This week, United States District Court Judge John T. Fowlkes, Jr., sentenced Glover to 230 months in federal prison. There is no parole in the federal system. This case was investigated by DEA, the Shelby County Sheriff’s Department, and the West Tennessee Drug Task Force. United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks, who prosecuted this case, as well as law enforcement partners who investigated the case. ### For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or cherri.green@usdoj.gov. Follow @WDTNNews on Twitter for office news and updates.


title: Haitian National Found Guilty of Biting ICE Officers on Deportation Aircraft

component: USAO - Texas, Western

body_text: SAN ANTONIO – A federal jury convicted a Haitian national in a federal court in San Antonio Tuesday for two counts of assaulting, resisting, or impeding certain officers or employees and inflicting bodily injury and one count of assaulting, resisting, or impeding certain officers or employees involving physical contact. According to court documents and evidence presented at trial, Immigration and Customs Enforcement (ICE) officers were loading 112 Haitian nationals onto a contract aircraft in San Antonio bound for Port Au Prince, Haiti in September 2021, when a disturbance involving several individuals occurred in the middle section of the aircraft. Jubenson Domenique was identified as the main instigator of the disturbance and a decision was made for three officers to remove him from the aircraft. During Domenique’s extraction from the aircraft, he bit the officers, breaking the skin and leaving teeth marks on all three. Emergency Medical Services responded, and one officer was treated at a local hospital, provided prescriptions for medication and began treatment and testing for possible infections, including six months of HIV treatment. Domenique faces a maximum penalty of 20 years in prison for each count of inflicting bodily injury and eight years in prison for the third count. U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jennifer Huerta for the ICE Office of Professional Responsibility made the announcement. ICE is investigating the case. Assistant U.S. Attorneys Amanda Brown and Amy Hail are prosecuting the case. ###


title: Defendants Sentenced in Air Force Contract Fraud Case

body_text: SAN ANTONIO – The four remaining defendants in the fraud case involving former Air Force civilian employee Keith Seguin were sentenced this week in a federal court in San Antonio. According to court documents, David Joseph Bolduc Jr., 62, of Herndon, Virginia, was the owner and director of operations at QuantaDyn, a software engineering company that worked on Randolph Trainer Development (RTD) simulators at Randolph Air Force Base. From 2007 through 2018, he and others paid $2,375,725.26 in bribes to Seguin in return for Seguin’s influence in obtaining government contracts and subcontracts for QuantaDyn. Bolduc was sentenced to 120 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $37,757,713.93 in restitution to the government in addition to a forfeiture of property and $8,750,775.77. John G. Hancock, 61, of Fairborn, Ohio, was sentenced to 40 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $23,769,884.41 in restitution to the government. Hancock and co-conspirator Karen K. Paulsen aided Seguin in unlawfully manipulating the award amounts and winners of federal contracts, to corrupt contracting processes, and to defraud the Air Force, General Services Administration (GSA), and companies competing for government contracts. Paulsen, 59, of Beaver Creek, Ohio, was sentenced for one count of conspiracy, to five years of probation with six months home confinement and 100 hours of community service during each year of probation. She was also ordered to pay $8,015,860.00 in restitution to the government. Rubens Wilson Fiuza Lima, 73, of Marietta, Georgia, was sentenced to 27 months in prison and ordered to pay $653,984.20 in restitution to the government for one count of conspiracy. As a friend of Seguin, Lima took a job as a subcontractor on an RTD contract in Texas, used his business Impex Import Export Inc. to assist Seguin by disguising the bribe money paid to Seguin as legitimate purchases of supplies and equipment related to flight simulators. “The sentences handed down in this case send a clear message that corrupt behavior will not be tolerated, especially when it involves the safety and security of our nation’s military,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We are grateful for the hard work of our law enforcement partners in uncovering this corruption and holding these co-conspirators accountable. My office will continue to work tirelessly to protect the integrity of our government contracts, ensuring taxpayer dollars are spent wisely.” “The successful prosecution and sentencing of additional defendants demonstrate our unrelenting pursuit of justice in the face of complex criminal networks. Each co-conspirator played an active role in facilitating this fraudulent scheme and inflicted significant harm on the integrity of our institutions,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “Our team remains committed to working together to dismantle such schemes and safeguard the interests of our nation.” “The results of this investigation exemplify the skill, persistence, and professionalism of the special agents, auditors, analysts, and attorneys who worked together to achieve justice and maintain taxpayer confidence in the integrity of the federal procurement system," said Special Agent in Charge Jamie M. Willemin for GSA OIG Southwest and Rocky Mountain Investigations Division. "Their efforts and dedication should be applauded.” "The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to combating corruption that pollutes the DoD contracting process," said Acting Special Agent in Charge Gregory Shilling for DCIS Southwest Field Office. "These results are a reflection of the steadfast vigilance of DCIS and our investigative partners to protect against those who seek to fraudulently enrich themselves at the expense of the American taxpayer." "The sentences reflect the results of the skilled and hard work put forth by all agencies involved," said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3. "This week’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government," said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division’s, Major Procurement Fraud Field Office. The GSA OIG; DCIS; AFOSI; Army CID; and IRS-CI investigated the case. Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case. ###


title: Lawton Woman and Former Army Training Manager at Fort Sill Indicted on Public Corruption Charges

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – Earlier this week, a federal grand jury returned an Indictment charging CANDY HANZA, 50, of Lawton, and ALFRED PALMA, 64, of Duncan, with bribery, announced Robert J. Troester, United States Attorney for the Western District of Oklahoma. Hanza is also charged with wire fraud and money laundering. According to the publicly filed Indictment, Palma, a United States Army employee and public official, was the manager of the Institutional Training Directed Lodging and Meals (“ITDLM”) program at Fort Sill, through which he booked hotel rooms for soldiers who attended on-post trainings. Hanza, then the general manager of a local hotel in Lawton, paid Palma to direct soldiers to the hotel. The Indictment alleges that Hanza then personally profited through her own scheme to defraud the hotel owners and laundered the resulting proceeds. Hanza and Palma will be arraigned in federal court on the charges. If found guilty of bribery, Hanza and Palma each face up to fifteen years in federal prison, a fine of $250,000.00 or three times the monetary value of the bribes, and up to three years of supervised release. Hanza additionally faces up to twenty years in prison, a $250,000.00 fine, and up to three years of supervised release if convicted of wire fraud, as well as up to ten years in prison, a $250,000.00 fine, and up to three years of supervised upon conviction for money laundering. This case is the result of an investigation by the United States Army Criminal Investigation Division and the Department of Defense Contract Audit Agency. Assistant U.S. Attorney Julia E. Barry is prosecuting the case. The public is reminded that these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. Reference is made to public records for more information.


title: Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public Health

component: Civil Rights Division

body_text: The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County. In November 2021, Justice Department and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI. The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions. “Today starts a new chapter for Black residents of Lowndes County, Alabama, who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.” “Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Director Melanie Fontes Rainer of the HHS Office for Civil Rights. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.” “This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.” Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including: Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens. Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC. Launching a Public Health Awareness Campaign : ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure. Providing Public Health Educational Materials for Lowndes County Health Care Providers : ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure. Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens. Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure. Consistently Engaging with the Community : In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan. As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation. Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and HHS. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy. The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama. Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/ . Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr . If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html .


title: Former Founder And CEO Of Nanotechnology Company Sentenced To 48 Months In Prison

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES JEREMY BARBERA, the founder and former chief executive officer (“CEO”) of a New York-based nanotechnology company, Nanobeak Biotech, Inc. (“Nanobeak”), was sentenced today to 48 months in prison by U.S. District Judge John G. Koeltl. BARBERA was previously convicted following a one-week trial of securities fraud, wire fraud, and conspiracy offenses. According to the Indictment, evidence presented during trial, court documents, and statements made in open court: From in or about 2013 and in or about 2019, BARBERA was the founder and CEO of Nanobeak, a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath. From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $7 million (i) by soliciting investments through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money for his own use. Specifically, BARBERA falsely represented that Nanobeak had developed a breathalyzer sensor that could detect narcotics and cancer in a person’s breath and that the company was expected to earn millions of dollars in sales revenue through distribution contracts. In truth and in fact, Nanobeak never developed the purported technology, and it was impossible for the company to generate revenue because there was no breathalyzer device to sell and, accordingly, no distribution contracts. BARBERA also falsely represented that he had undergraduate and graduate degrees in physics from New York University, that he had a business degree from the Massachusetts Institute of Technology, and that Nanobeak would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, the company was not close to an IPO, BARBERA was permanently barred from serving as the CEO of a public company as a result of a prior, unrelated proceeding brought by the U.S. Securities and Exchange Commission (“SEC”), and BARBERA never finished college and never attended MIT. BARBERA converted for his own use approximately half of the investor funds raised in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses. * * * In addition to his prison sentence, BARBERA, 67, of New York, New York, was ordered to pay more than $7 million in forfeiture. Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the National Aeronautics and Space Administration’s Office of Inspector General, and he also thanked the SEC for its assistance. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.


title: Administrative Team at R.I. U.S. Attorney’s Office  Receives National Award from Department of Justice Leadership

component: USAO - Rhode Island

body_text: PROVIDENCE – On Wednesday of this week, at a Washington, D.C. ceremony attended by Attorney General Merrick Garland, Deputy Attorney General Lisa O. Monaco, U.S. Attorney Zachary A. Cunha, and other senior Department of Justice leadership, seven members of the Rhode Island U.S. Attorney’s Office Administrative Division were honored with a Director’s Award for their exceptional service to this Office and the United States. “I am intensely proud of the quality and impact of the work that this Office does on behalf of the people of Rhode Island, and the nation, every day,” said U.S. Attorney Cunha. “But while much of our legal work receives public attention, many of the dedicated public servants in this Office, without whom our mission would be impossible, often do not. I am delighted to see our exceptional administrative team receive this well-deserved honor from the Department, and honored to serve alongside these dedicated professionals.” Presented annually, the Director’s Awards recognize excellence throughout the U.S. Attorney community, honoring exceptional contributions to the Department’s mission by Assistant United States Attorneys in criminal and civil cases, appellate work, litigation in Indian Country, and other programmatic areas, across the 94 federal Districts that comprise the United States. Two Administrative teams were also recognized, one of them from the District of Rhode Island, where Administrative Officer Lynn Danchuk, Executive Assistant Sheila Grant, Contracting Officer Ryan Crotty, Budget Officer Vincent Onorato, Paralegal Supervisor (Ret.) Sandra Mascola, and Litigation Technology Support Specialists Nicole Williams and Michael Ward were each honored with a Director’s Award. The awards were presented by Monty Wilkinson, Director of the Executive Office for United States Attorneys, in the two-story Great Hall of the Department of Justice, located in the Robert F. Kennedy Building that serves as the Department’s headquarters in Washington, D.C. Administrative Division Director's Award recipients with United States Attorney Zachary A. Cunha (center) at the Department of Justice (left to right) Contracting Officer Ryan Crotty, Administrative Officer Lynn Danchuk, Litigation Technology Support Specialist Nicole Williams, Litigation Technology Support Specialist Michael Ward, Paralegal Supervisor (Ret.) Sandra Mascola, Executive Assistant Sheila Grant, not shown Budget Officer Vincent Onorato


title: Virginia Woman Sentenced to Prison for Fraudulently Ordering Cell Phones on Behalf of Her Non-Profit Employer and Reselling Them for Cash

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Celeste Santifer, 56, of Alexandria, Virginia, was sentenced today in U.S. District Court for the District of Columbia to 41 months in prison for committing wire fraud, announced U.S. Attorney Matthew M. Graves and Special Agent in Charge Wayne A. Jacobs of the FBI Washington Field Office Criminal and Cyber Division. Santifer was a former employee of the YMCA of Metropolitan Washington (“YMCA-DC”), which is a non-profit organization with 16 branches and program centers in the District of Columbia and greater Washington, D.C. area. Santifer worked as an office manager at YMCA-DC from approximately 2007 until her termination in May of 2019. While working at the YMCA-DC, Santifer devised a scheme to defraud by taking advantage of an arrangement with Verizon Wireless (“Verizon”) to sell YMCA-DC, as a non-profit organization, cell phones for its employees at a discounted price. From at least January 2016 through April 2019, Santifer placed online orders for discounted cell phones from Verizon that she personally received, disconnected from service, and sold to companies that buy and sell new or slightly used phones. Santifer ultimately ordered over 1,000 phones purportedly for YMCA-DC employees that she sold to third-party companies for money. The value of the phones to Verizon was $618,090. Santifer pleaded guilty on October 3, 2022 before U.S. District Court Judge Royce C. Lamberth. In addition to the prison term, Judge Lamberth ordered restitution of $618,090, and three years of supervised release. In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those from the FBI’s Washington Field Office who investigated the case. They also expressed appreciation to Paralegal Specialist Michon Tart. Finally, they commended the work of Assistant U.S. Attorneys Christine Macey, who prosecuted the case, and Kathryn Rakoczy, who investigated the case.


title: Colorado Man Pleads Guilty to Federal Hate Crime for Church Arson

body_text: A Colorado man pleaded guilty today to a hate crime charge in connection with a fire he set to a church in Loveland, Colorado. According to court documents and admissions during the plea hearing, Darion Ray Sexton, 22, intentionally set fire to the church in the evening hours of Jan. 19. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church – one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church. “Protecting religious freedom and observance is a top priority for the Department of Justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously prosecute those who attack houses of worship and target religious communities.” “We all have a right to feel safe and secure in our houses of worship – no matter our religion or belief,” said U.S. Attorney Cole Finegan for the District of Colorado. “An act of violence in one of our sacred places is especially serious, and we will work with our law enforcement partners to vigorously prosecute all such offenses.” “The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to exercise their religion without fear of violence from others,” said Special Agent in Charge Mark Michalek of the FBI Denver Field Office. “FBI Denver is committed to protecting those rights, and we will continue to aggressively work with our law enforcement partners to bring justice to all communities that have been targeted.” The sentencing hearing is scheduled for July 21. Sexton faces a maximum sentence of 20 years in prison and a $250,000 fine. The FBI, ATF and the Loveland Police and Fire Departments investigated the case. Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.


title: Oklahoma City Woman Pleads Guilty to Embezzling from Local Company

body_text: OKLAHOMA CITY – Yesterday, STEPHANIE FANNIN, 45, of Oklahoma City, pleaded guilty to a one-count felony information charging her with wire fraud, announced United States Attorney Robert J. Troester. The information was filed against Fannin in federal court on April 12, 2023. It alleges that from 2018 until April 2021, Fannin served as the office manager of General Lighting and Sign Services (GLSS). In her role as the office manager, Fannin had complete access to GLSS’s operating account and managed accounts payable and receivable for GLSS’s business transactions. She also created and disbursed invoices, tracked licenses of employed contracted workers, and managed the payroll of GLSS employees. Yesterday, Fannin pleaded guilty to the information before U.S. District Judge Joe Heaton. At the hearing, Fannin admitted that between early 2018 and April 2021, she issued approximately 294 unauthorized checks made payable to her drawn on GLSS’s operating account, and deposited each of these checks into her personal bank account to pay for personal items and services. She further admitted that she used computer software to make it appear that the unauthorized checks had been made to GLSS’s vendors. Fannin admitted that she embezzled approximately $1,432,260.03 from GLSS. At sentencing, Fannin faces up to 20 years in federal prison, a $250,00.00 fine, and 3 years of supervised release. She will also be ordered to pay restitution to the victim company. A sentencing hearing will be scheduled in approximately 90 days. This case is a result of an investigation by the United States Secret Service and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Charles Brown. Reference is made to court filings for further information.


title: Man Pleads Guilty to Dog Fighting Offenses

component: Energy and Natural Resources Division

body_text: An Ohio man pleaded guilty to two counts of raising and training dogs for the purpose of dog fighting. Michael Valentine, 40, of Bidwell, Ohio, admitted to raising and training over fifty dogs near his home in Gallia County, Ohio. According to court documents, law enforcement first investigated Valentine for dog fighting offenses in 2019 following a dog attack on a small child living with the defendant. That investigation led to a search warrant of the defendant’s residence and the seizure of 40 dogs. The search also recovered numerous items of dog fighting paraphernalia, including treadmills, veterinary supplies, and dog fighting videos. On March 8, 2022, a second search warrant was executed at the defendant’s residence as part of a fentanyl-distribution investigation. That search revealed substantial evidence of drug distribution, as well as two assault-style rifles. In addition, a search of a nearby parcel of land revealed an additional 11 dogs, which the defendant was keeping for purposes of dog fighting. Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, and Assistant U.S. Attorney Nicole Pakiz, and Special Assistant U.S. Attorney Mike Marous for the Southern District of Ohio are prosecuting this case. The case was investigated by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) and the FBI. This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts, and dismantles 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.


title: Justice Department Seeks to Shut Down Florida Tax Return Preparer

component: Tax Division

body_text: The United States has filed a complaint in the U.S. District Court for the Middle District of Florida against Tyrone Johnson and TJ Professional Services, LLC. The civil complaint seeks to enjoin the defendants from preparing federal income tax returns for others. The complaint also requests that the court require Johnson and the business he controls to disgorge the fees they obtained by preparing federal tax returns that make grossly incompetent, negligent, reckless, and/or fraudulent claims. The civil complaint alleges that since at least 2016, defendants prepared returns that claim fictitious businesses and fabricated business losses. As a result, the complaint alleges, defendants decreased the amount of taxable income reported to make it appear that their customers were entitled to a larger refund than they were in fact entitled to receive. The complaint further alleges that defendants do not identify themselves as paid preparers on their customer’s returns, but instead operate as “ghost preparers” that file returns using six-digit PINs affiliated with individual customers. According to the complaint, the defendants’ schemes have cost the Treasury millions of dollars in lost tax revenue. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer , as well as steps taxpayers can take to get a jumpstart on filing . Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income ). In addition, IRS Free File , a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.


title: Podiatrist Sentenced for Fraudulently Billing Medicare Nearly $2M Under False Identity

component: Criminal Division

body_text: A Michigan podiatrist was sentenced today to seven years in prison for orchestrating a health care fraud conspiracy that resulted in almost $2 million in false and fraudulent claims being submitted to Medicare, as well as for falsifying records and identity theft. According to court documents, Dr. Kenneth Mitchell, 61, of Wayne County, owned and operated a podiatry practice in Michigan specializing in on-site foot care provided to adult foster home residents. Mitchell had previously been suspended by Medicare for suspicious billing practices, banning him from receiving any Medicare funds while the suspension remained in place. After his own Medicare suspension went into effect, Mitchell created a new entity called Urban Health Care Group PLLC (Urban). Mitchell then convinced another doctor – one who was not subject to suspension and therefore could bill Medicare – to enroll in the Medicare program and place her name on corporate and banking documents relating to Urban. Under this arrangement, Mitchell submitted bills to Medicare falsely stating that the other doctor provided the services to patients. Mitchell’s deception enabled him to bill Medicare through Urban for nearly $2 million in services that were false or fraudulent. After Mitchell was indicted, Medicare suspended Urban’s billing privileges. Mitchell then created false statements, even going so far as to forge at least one signature on a fraudulent letter sent to the U.S. Department of Health and Human Services (HHS), to impede the government’s ongoing investigation and contradict the government’s case against him. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Deputy Inspector General for Investigations Christian J. Schrank of the HHS Office of the Inspector General (HHS-OIG) made the announcement. HHS-OIG investigated the case. Trial Attorneys Kathleen Cooperstein and Shankar Ramamurthy of the Criminal Division’s Fraud Section prosecuted the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit .


component: USAO - Alabama, Middle

body_text: WASHINGTON – The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County. In November 2021, Justice and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color, or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of, or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI. The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions. “Today starts a new chapter for Black residents of Lowndes County, Alabama who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.” “Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Department of Health and Human Services Office for Civil Rights Director Melanie Fontes Rainer. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.” “This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.” Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including: Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time, and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens. Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC. Launching a Public Health Awareness Campaign : ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach, and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure. Providing Public Health Educational Materials for Lowndes County Health Care Providers : ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure. Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens. Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure. Consistently Engaging with the Community : In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering, and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan. As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation. Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and the Department of Health and Human Services. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy. The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama. Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/ . Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr . If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html .


title: ST. CROIX JURY CONVICTS 65 YEAR OLD MAN OF SEX TRAFFICKING AND TRANSPORTING A MINOR FOR PROSTITUTION

component: USAO - Virgin Islands

body_text: St. Croix, VI – United States Attorney Delia L. Smith announced today that a St. Croix jury convicted James Phillip, 65, of St. Croix, of sex trafficking and transporting a minor for prostitution. The jury returned the guilty verdict after hearing a week of testimony. District Court Judge Wilma Lewis ordered Phillip to surrender to the custody of the U.S. Marshal Service on May 15, 2023, to begin serving his sentence. “Sexual abuse impacts our entire community and exposes its victims to a lifetime of trauma. It is particularly heinous when sexual predators exploit our young children. I am therefore committed to prosecuting sex offenders to the fullest extent of the law in hopes of creating a safe community for our children”, said United States Attorney Delia L. Smith. According to court documents and evidence presented at trial, Phillip and his co-defendant Zayvon Acoy aided and abetted each other in the sex trafficking and transporting of the minor victim for the purpose of engaging in prostitution. At trial, the victim testified that in 2017, when she was 17, she had a sexual relationship with Acoy, who was 27. The victim testified that during their short relationship, Acoy physically abused her and forced her into prostitution because he needed money. The victim further testified that on two occasions, Acoy took her to Phillip’s house where she had sex with Phillip as Acoy waited outside in his vehicle. After both encounters, Phillip paid Acoy $250.00 for having sex with the victim. The victim testified that she got tired of Acoy’s abuse and decided to report the encounters to local and federal law enforcement. On July 7, 2021, Acoy pleaded guilty to sex trafficking of a minor and was sentenced to 10 years imprisonment on February 14, 2022. For his conviction, Phillip faces a mandatory minimum of 10 years, and a maximum sentence of life imprisonment. The case investigated by Homeland Security Investigation and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Everard Potter and Evan Rikhye. “Homeland Security Investigations is committed to protecting the victims of sexual exploitation in our community. In this instance, HSI brought the violator to justice after investigating a delicate but complex case by demonstrating our expertise in victim advocacy which is required in handling minor victims of sexual assaults,” said Assistant Special Agent in Charge Eugene Thomas. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.


title: PUERTO RICAN MAN SENTENCED TO 108 MONTHS ON COCAINE POSSESSION CONVICTION

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Sammy Monell-Osorio, 31, of Puerto Rico, was sentenced by Chief District Court Judge Robert A. Molloy to 108 months of imprisonment on his conviction of possession with intent to distribute a controlled substance while on board a vessel subject to the jurisdiction of the United States. Judge Molloy also sentenced Monell-Osorio to five years of supervised release and ordered him to pay a special assessment of $100.00. According to court documents, in the early morning hours of February 28, 2023, Customs and Border Protection Marine Interdiction officers detected a vessel traveling without navigational lights on the west side of St. Thomas heading towards Puerto Rico. Osorio, the captain of the vessel, attempted to evade the officers when they ordered him to stop. The occupants of Osorio’s vessel then threw a black bag overboard before the vessel was disabled for failure to heave to the officer’s commands. The black bag containing 18 kilograms of cocaine was later retrieved from the ocean. The U.S. Customs and Border Protection Marine Interdiction Unit and Homeland Security Investigations investigated this case and Assistant United States Attorneys Everard Potter and Natasha Baker prosecuted the case. The prosecution is 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.


title: THREE ECUADORIANS CHARGED WITH POSSESSION OF 800 KILOGRAMS OF COCAINE

body_text: St. Croix, VI – United States Attorney Delia L. Smith announced today that Luis Menocal-Mero, alias “Luis Menoscal”, 38, Carlos Anchundia-Mero, 22, and Carlos Baque-Pincay, 21, were charged with conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. According to court documents, on March 8, 2023, during a routine patrol in international waters in the Eastern Pacific, United States Coast Guard Cutter Farragut intercepted a go-fast vessel after it was sighted approximately 110 nautical miles southeast of the Galapagos Islands, Ecuador. The vessel displayed no indicia of nationality, and no flag was flown. Coast Guard officers boarded the vessel to conduct an inspection and discovered 30 bales containing approximately 800 kilograms of individually wrapped, brick-shipped packages of cocaine on the deck and fish hold areas of the vessel. One of the occupants of the vessel claimed Ecuadorian nationality, but Ecuador could neither confirm nor deny nationality of the vessel. The vessel was therefore deemed to be one without nationality, thus subject to the jurisdiction of the United States. If convicted, the defendants face a mandatory minimum sentence of 10 years and a maximum of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. This case is being investigated by the United States Coast Guard and Drug Enforcement Administration and prosecuted by Assistant United States Attorney Melissa P. Ortiz. The prosecution is 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. United States Attorney Delia L. Smith reminds the public that an indictment is merely an allegation and that all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: FORMER TSA EMPLOYEE SENTENCED ON FRAUD CONVICTION

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Cleon Otto 35, of St. Thomas, was sentenced by Chief District Court Judge Robert A. Molloy to 12 months of probation on his conviction of creating a false authentication document. Molloy also ordered that Otto pay a $1,000.00 fine, a $25 special assessment and restitution in the amount of $1,162.20. According to court documents, on July 9, 2021, Otto was an employee of the Transportation Safety Administration and a member of the Virgin Islands National Guard. In his capacity as a TSA officer, Otto produced a false document by placing the electronically generated signature of another employee to authorize his paid military leave request. Otto later submitted the fraudulently approved document and received compensation in the amount of $1,162.20. This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Everard E. Potter.


title: Remaining Defendants in Middle Georgia Armed Drug Trafficking Organization Sentenced to Prison

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

body_text: MACON, Ga. – The leaders of an armed drug trafficking ring centered in Warner Robins, Georgia, were sentenced to federal prison this week for their crimes. Antoine Riley aka “Bear,” 45, of Warner Robins, was sentenced as a career offender to serve 180 months in prison to be followed by three years of supervised release to run consecutively to any term of imprisonment imposed in a pending case in Taylor County Superior Court, after he previously pleaded guilty to distribution of cocaine base. Co-defendant Antonio Raines, 39, of Warner Robins, was sentenced to serve 97 months in prison to be followed by three years of supervised release, after he previously pleaded guilty to distribution of cocaine base. The sentences were handed down by Chief U.S. District Judge Marc Treadwell on May 3. There is no parole in the federal system. “Armed repeat felons will face federal consequences for their continued criminal activity,” said U.S. Attorney Peter D. Leary. “Thanks to the efforts of the local, state and federal agencies with the Organized Crime Drug Enforcement Task Force, another armed criminal group has been held accountable.” “These career criminal drug traffickers posed a significant threat to the quality of life in our communities. The dismantling of this organization makes our communities a safer place today,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. The following codefendants have pleaded guilty and been sentenced: Brittany Smith, 29, of Warner Robins, was sentenced to serve 135 months in prison on Jan. 4, after previously pleading guilty to possession with intent to distribute methamphetamine; Emanuel Ivey, 36, of Warner Robins, was sentenced to serve 87 months in prison on Feb. 9, after previously pleading guilty to distribution of cocaine base; Joseph Day, 49, of Warner Robins, was sentenced to serve 46 months in prison on Feb. 27, 2023, after previously pleading guilty to distribution of cocaine base; Desmond Griffin, 30, of Warner Robins, was sentenced to serve 24 months in prison on April 6, 2023, after previously pleading guilty to distribution of cocaine base; Obie Wright, 67, of Warner Robins, was sentenced to serve 18 months in prison on April 6, 2023, after previously pleading guilty to distribution of cocaine base; and Latanya Williams, 41, of Warner Robins, was sentenced to serve three years of probation on April 6, 2023, after previously pleading guilty to making false statements. According to court records, federal agents began investigating Riley for distributing large quantities of crack cocaine out of several stash houses in the Warner Robins community; he was known to be armed. Recorded conversations and text messages between Riley and his codefendants revealed Riley and Raines as the leaders of the criminal operation. Several controlled purchases of cocaine were made, including a multi-kilogram transaction involving Riley while he was under surveillance. Riley was taken into custody on Feb. 12, 2021, by Bibb County Sheriff’s Office deputies after attempting to flee while in possession of a large amount of cocaine. A search warrant was executed that same day at Riley’s residence at McCall Circle in Warner Robins, and agents recovered a stolen Glock 9mm handgun, an extended Glock magazine, a .357 caliber revolver and a large quantity of cocaine. Riley told agents he was running another stash house on Vinson Drive in Warner Robins. Riley is being held accountable for at least 4.717 kilograms of cocaine, 45.68 grams of cocaine base and two firearms. Riley has a lengthy criminal history to include two prior convictions for possession with intent to distribute controlled substances and obstruction of an officer. Raines was named in a separate armed drug distribution and dog fighting investigation in the Middle District of Georgia; for more information about that case, please visit https://www.justice.gov/usao-mdga/pr/final-defendant-multi-state-dog-fighting-drug-conspiracy-case-pleads-guilty . This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. 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. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The case was investigated by the DEA, FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Monroe County Sherriff’s Office, the Bibb County Sherriff’s Office and the Warner Robins Police Department. Assistant U.S. Attorney Alex Kalim prosecuted the case.


title: U.S. Attorney Kavanaugh Urges Residents  to Stay Vigilant Against Cyber Fraud

component: USAO - Virginia, Western

body_text: CHARLOTTESVILLE, Va. – United States Attorney Christopher R. Kavanaugh released a video public service announcement today to news media throughout the Western District of Virginia that urges residents to stay vigilant against cyber fraud, investment schemes, and other forms of online deception. “Fraudsters are using high-pressure tactics and promises of low or no risk investments in an attempt to steal the hard-earned money of our citizens, especially our seniors,” U.S. Attorney Kavanaugh said today. “The United States Attorney’s Office, along with our law enforcement partners at the federal, state and local levels, are committed to protecting you.” These scammers often reach out by phone, text message or email, claiming high returns on investments, often in the form of crypto-currency. They are becoming more creative, sophisticated, and aggressive. “To protect yourself, never send money to anyone you do not know and research who you are investing your hard-earned money with,” U.S. Attorney Kavanaugh added. “If you feel rushed, or if you are told not to discuss the investment opportunity with others, you are being scammed.” For more information about these scams, or what to do if you feel you have been a victim of a scam, please visit FBI.gov . In addition to being sent to local media stations, the PSA has also been posted to the Western District of Virginia’s newly-launched YouTube page: https://www.youtube.com/@usao_wdva .


title: Muncie Pedophile Sentenced to 14 Years in Federal Prison for Distribution of Child Sexual Abuse Material Via Kik

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- Benjamin Covey, 43, of Eaton, Indiana was sentenced to 14 years in federal prison for distribution of child sexual abuse material. According to court documents, on January 28, 2022, the Muncie Police Department (MPD) received an FBI tip stating that images depicting child sexual abuse had been uploaded to the instant messaging application, Kik, by username “BosJangles.” The username belonged to Benjamin Covey. That same day, it was also discovered that Covey had been accused of allowing juveniles to drink and showing them sexually explicit materials. Investigators with the MPD contacted Covey, who agreed to an interview. Covey confirmed he used the Kik account “BosJangles” to join a group chat called “pedo for kids.” Investigators searched Covey’s cellphone and uncovered 600 images depicting child sexual abuse material. Many of the images depicted prepubescent boys being made to engage in sex acts. At least one of the images depicted an adult engaged in a sex act with a toddler. “This dangerous criminal used Kik to find other pedophiles and share the horrific abuse of the most vulnerable victims,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Those who gather online to revel in the exploitation of children will be identified and prosecuted. I am grateful to the FBI and the Muncie Police Department for work to ensure that this defendant will serve a significant prison sentence, where out children will be out of his reach.” “The distribution of child sexual abuse material over any platform is not a harmless, victimless crime, but one that continues to traumatize these children every time it is viewed,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The most vulnerable in our society deserve all the protection we can provide, and the FBI and our partners are committed to unmasking these predators and holding them accountable.” The FBI investigated this case with valuable assistance provided by the Muncie Police Department. The sentence was imposed by Chief U.S. District Court Judge, Tanya Walton Pratt. Judge Pratt also ordered that Covey be supervised by the U.S. Probation Office for 10 years following his release from federal prison. Covey must also register as a sex offender wherever he lives, works, or goes to school, as required by law. U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc ###


title: Former San Francisco Garbage Company Executive Pleads Guilty To Honest Services Fraud Conspiracy

component: USAO - California, Northern

body_text: SAN FRANCISCO – John Francis Porter pleaded guilty today in U.S. District Court in San Francisco to conspiring to commit honest services mail and wire fraud, admitting that he participated in a scheme with another Recology executive to bribe the former head of the San Francisco Department of Public Works, Mohammed Nuru, announced the United States Attorney’s Office, FBI Special Agent in Charge Robert K. Tripp, and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The guilty plea was accepted by the Honorable William H. Orrick, United States District Court. Porter, 39, is the former Vice President and Group Manager of the SF Recology Group. According to his plea agreement, Porter admitted that he conspired with another former Recology executive and others to pay bribes to influence Nuru. The bribes included $55,000 in payments for holiday parties Nuru hosted for friends, political supporters, and select DPW employees, from October 2017 through January 2020. According to Porter’s admissions in the plea agreement, the payments were concealed as “holiday donations” to a non-profit, the Lefty O’Doul’s Foundation for Kids, a charity established to provide access to baseball and baseball equipment for under-privileged children. Porter admitted in his plea agreement that he knew the funds were not being used for that purpose, but instead were made at the request of Nuru and used for his holiday parties. Porter admitted that the bribes were made to influence Nuru to take official action and exercise influence in Recology’s favor, including making official decisions in his role at DPW that would benefit Recology’s business. On November 29, 2022, a federal grand jury returned a superseding indictment, charging Porter with one count of conspiracy to commit honest services mail and wire fraud, in violation of 18 U.S.C. § 1349, two counts of honest services wire fraud in violation of 18 U.S.C. §§ 1346 and 1343, one count of honest services mail fraud, in violation of 18 U.S.C. §§ 1341 and 1346, one count of conspiracy to commit bribery in violation of 18 U.S.C. § 371, and one count of bribery of a local official, in violation of 18 U.S.C. §§ 666(a)(2) and 2. Pursuant to today’s guilty plea, Porter pleaded guilty to the conspiracy to commit honest services wire and mail fraud count. If Porter complies with the plea agreement, the additional counts will be dismissed at sentencing. Judge Orrick scheduled Porter’s sentencing for September 7, 2023. Porter faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. In addition, as part of any sentence, a court may order up to three years of supervised release, restitution, forfeiture, and additional assessments, if appropriate. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Porter is the second Recology executive to plead guilty. In July 2021, Paul F. Giusti, a former Government & Community Relations Manager with Recology, pleaded guilty to one count of conspiracy to bribe a local official and to commit honest services fraud, admitting to participating in a conspiracy to bribe Nuru. Giusti has not yet been sentenced. Nuru was charged in January 2020 with a long-running honest services fraud scheme. On January 6, 2022, Nuru pled guilty to honest services wire fraud, and on August 25, 2022 was sentenced to 84 months in federal prison. In September 2021, three subsidiaries of Recology that serve San Francisco have entered a deferred prosecution agreement related to the charge of conspiracy to commit honest services fraud and have agreed to pay $36 million in criminal penalties. The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorneys David Ward and Ilham Hosseini are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI).


title: Cybercriminal Network Fueling the Global Stolen Credit Card Trade is Dismantled

component: USAO - New York, Eastern

body_text: A four-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging Denis Gennadievich Kulkov with access device fraud, computer intrusion and money laundering in connection with his operation of Try2Check, the primary service offering “card-checking” to cybercriminals in the stolen credit card trade. The Try2Check platform catered to cybercriminals who purchased and sold stolen credit card numbers in bulk on the internet, offering criminals the ability to quickly determine what percentage of the cards were valid and active. As such, Try2Check was a primary enabler of the trade in stolen credit card information, processing at minimum tens of millions of card numbers every year. Today, the U.S. government worked with partners in Germany and Austria to take offline Try2Check’s websites, thus dismantling the defendant’s criminal network. Along with the indictment and global website domain takedown, the State Department has announced a $10 million reward for information leading to the capture of Kulkov, who resides in Russia. Breon Peace, United States Attorney for the Eastern District of New York and Patrick Freaney, Special Agent-in-Charge, United States Secret Service (USSS), New York Field Office, announced the charges. “Today is a bad day for criminals who relied on the defendant’s platform as the gold standard to verify that the credit cards they stole from hard working individuals living in the Eastern District of New York and across the world had value,” stated United States Attorney Peace. “Today’s indictment and global takedown of the Try2Check website demonstrates that the Office, together with our partners, will disrupt cybercrime operations no matter where they are based.” “The individual named in today’s indictment is accused of operating a criminal service with immeasurable reach to fund further illicit activity with global impact,” said U.S. Secret Service Special Agent in Charge Patrick J. Freaney. “Our exceptional partnerships know no borders, and thanks to the cooperation and dedication of our global law enforcement community, Try2Check can no longer serve as a vehicle for continued criminal activity or illicit profits.” As alleged in the indictment and other court filings, Kulkov created Try2Check in 2005, building it into a primary tool of the illicit credit card trade. Cybercriminals who acquired large batches of stolen credit cards (for example, by hacking into credit card readers at stores) ran the cards through Try2Check to determine what percentage of the stolen credit card numbers remained active. These cybercriminals then used the resulting data to show prospective buyers of the stolen credit card numbers what percentage of the cards retained their value. Try2Check victimized not only credit card issuers and holders, but also a major U.S.-based payment processing company whose systems Try2Check misused to perform the card checks. Try2Check ran tens of millions of credit card checks per year and supported the operations of major card shops that made hundreds of millions in bitcoin in profits. Over a nine-month period in 2018, the site performed at least 16 million checks, and over a 13-month period beginning in September 2021, the site performed at least 17 million checks. Through the illegal operation of his websites, the defendant made at least $18 million in bitcoin (as well as an unknown amount through other payment systems), which he used to purchase a Ferrari, among other luxury items. In coordination with the unsealing of the charging documents in this case, Try2Check’s websites were taken offline and the State Department issued a $10 million reward for information leading to the defendant’s capture. If convicted, Kulkov faces 20 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. The Office extends particular thanks to the Justice Department’s Computer Crime and Intellectual Property Section (CCIPS) and to CCIPS Assistant Deputy Chief James Yoon, for his and the Section’s extensive contributions to this case. The U.S. Secret Service New York Field Office investigated this case with crucial assistance from the following Secret Service offices: the Global Investigative Operations Center (GIOC), the Cyber Investigative Section (CIS), Frankfurt, Paris, Madrid, and the Hague. Crucial assistance was also provided by the FBI’s New York Field Office and Cyber Initiative and Resource Fusion Unit (CIRFU) and by Europol and the National Cyber-Forensics Training Alliance (NCFTA). The Department of Justice’s Office of International Affairs is assisting with foreign evidence requests. The Office extends its appreciation to the German Federal Criminal Police Office (BKA), the German Federal Office for Information Security (BSI), the Austrian Criminal Intelligence Service – Cybercrime Competence Center (C4), and the French Central Directorate of the Judicial Police (DCPJ) and the governments of Austria, Germany and France for their assistance on this case, as well as to the Shadowserver Foundation for crucial technical assistance in addressing Try2Check’s technical infrastructure. If you have information regarding this individual, please contact the U.S. Secret Service at MostWanted@usss.dhs.gov . The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Alexander Mindlin and Sara K. Winik are in charge of the prosecution, with assistance from Assistant United States Attorney Brian Morris. The Defendant : DENIS GENNADIEVICH KULKOV, (also known as “Kreenjo,” “Nordex” and “Nordexin”) Samara, Russia E.D.N.Y. Docket No. 23-CR-171


title: Fort Campbell Couple Indicted On Aggravated Child Abuse Charges

body_text: NASHVILLE – A federal indictment unsealed today, charges a Fort Campbell couple with aggravated child neglect, announced U.S. Attorney Henry C. Leventis. Andrew J. Garasich, 27, and Lyndsey T. Bustamante, 27, were indicted by a federal grand jury on Monday and were arrested by FBI agents earlier today. Both are scheduled to appear before a U.S. Magistrate Judge this afternoon. Documents filed with the Court allege that on January 4, 2023, Bustamante took her baby to a Houston County Community Hospital and claimed that several days earlier, the baby was burned while being given a bath by Garasich. Shortly after arriving at the hospital, the baby was life flighted to Vanderbilt Children’s Hospital where it was discovered that the baby also had a skull fracture. While in the Pediatric Intensive Care Unit at Vanderbilt, the baby underwent numerous medical procedures and surgeries and was treated for organ failures and other life-threatening conditions. It is anticipated that the baby will require additional medical treatment and services for years to come. Charges in this case are being brought under the Assimilative Crimes Act. As there is no federal child abuse statute, charges may be brought under applicable Tennessee statutes for crimes occurring on the Fort Campbell military installation because Fort Campbell is within the territorial jurisdiction of the United States. If convicted of this Class A felony, both defendants face a mandatory minimum of 15 years in prison. This case was investigated by the U.S. Army - Criminal Investigation Division and the FBI. Assistant U.S. Attorneys Monica Morrison and Robert E. McGuire are prosecuting the case. An indictment is merely an accusation. The defendants are presumed innocent until proven guilty in a court of law. # # # # #