title: North Carolina Pharmacy Agrees To Resolve False Claims Act Allegations

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – MedCare Clinic & Pharmacy, LLC (MedCare), located in Indian Trail, North Carolina, has agreed to pay $213,677.00 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that were never dispensed. The United States alleged that, from Jan. 1, 2016 through Dec. 31, 2019, MedCare billed both Medicare Part D and North Carolina Medicaid for two hundred prescription medications that MedCare never distributed to beneficiaries. According to the government’s allegations, inventory records showed that MedCare did not buy enough of these medications to fill all of the prescriptions billed to these health care programs. “Pharmacies may bill only for medications that they actually sell,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our office will continue to pursue entities that knowingly and unjustly enrich themselves at the taxpayers’ expense.” “When pharmacies bill government programs for prescriptions that are not disbursed to patients, taxpayer dollars are wasted and finite resources are diverted from beneficiaries in need,” said the U.S. Attorney Dena J. King for the Western District of North Carolina. “Our office will continue to work with our state and federal partners to investigate and hold accountable those who seek to profit from fraud on federal health care programs.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MedCare employees Brittanie Henry and Zilphia Adcock. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Henry and Adcock will receive $53,419.43 as their share of the settlement. The qui tam case is captioned U.S. ex rel. Henry v. Pharmacy Holdings, et al. , No. 3:20-cv-61 (W.D.N.C.). The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of North Carolina, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Office of Inspector General of the United States Department of Health and Human Services. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Senior Trial Counsel Jennifer Cihon, Assistant U.S. Attorney Caroline McLean, and Investigator Cathleen Hollowell investigated the cause. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Leader of multi-state drug trafficking group sentenced to 9 years in prison for distribution of fentanyl, meth, and heroin

component: USAO - Washington, Western

body_text: Seattle – A 39-year-old Woodinville, Washington, resident was sentenced today in U.S. District Court in Seattle to 108 months in prison, for his role as the leader of a conspiracy to distribute narcotics including fentanyl, meth, and heroin, announced U.S. Attorney Nick Brown. Jose Luis Ibarra-Valle has been in custody since his arrest in December 2020. At his sentencing hearing, U.S. District Judge Richard A. Jones said, “You introduced large quantities of heroin and fentanyl into this community…drugs that are highly addictive and dangerous.” “During the investigation, Mr. Ibarra-Valle was heard on the wire-tap talking about getting a firearm so he could go after drug customers who owed him money,” said U.S. Attorney Brown. “And when Mr. Ibarra-Valle learned someone had died from his fentanyl laced pills, he wasn’t worried about selling deadly pills, instead he only complained that the death would cause increased law enforcement scrutiny.” The investigation began in March 2020 and involved telephone wiretaps beginning in July 2020. The investigation revealed Ibarra-Valle was bringing drugs up from California to Oregon and Western Washington. Over the course of the investigation, law enforcement seized 16,000 fentanyl pills, 30 pounds of methamphetamine, and six pounds of heroin. Ibarra-Valle was stopped by law enforcement in October 2022 with 10,000 fentanyl pills, 20 pounds of methamphetamine, and more than a kilo of heroin. Five members of the drug trafficking ring have already been convicted and sentenced: JESUS GUTIERREZ-GARCIA, 33, Everett, WA was sentenced to 78 months in prison. JESUS GARNICA-MELGOZA, 41, Seattle, WA was sentenced to 42 months in prison SANTOS CARO, 37, Portland, Oregon was sentenced to five years in prison LEE WALLETTE, 39, Mountlake Terrace, WA was sentenced to six years in prison TISHA GIRTZ, 40, Lake Stevens, WA was sentencing to 54 months in prison In asking for a ten-year sentence prosecutors noted the huge increase in overdose deaths. According to a national report, “between June 2020 and May 2021 more than 100,000 Americans died from drug overdose – more than twice the number of U.S. traffic fatalities or gun violence deaths during that period. Some two-thirds of these deaths – about 170 fatalities each day, primarily among those ages 18 to 45 – involved synthetic opioids.” Commission on Combatting Synthetic Opioid Trafficking – Final Report , Executive Summary, page ix, dated February 2022. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The investigation was led by the Drug Enforcement Administration in partnership with the Federal Bureau of Investigation, Homeland Security Investigations, Whatcom Gang and Drug Task Force, Washington State Patrol, Snohomish Regional Drug Task Force, United States Border Patrol, Customs and Border Protection, Skagit County Interlocal Drug Enforcement Unit, the Whatcom County Sheriff’s Office, the Lake Stevens Police Department and Tulalip Police Department. The case is being prosecuted by Assistant United States Attorney Vince Lombardi.


title: North Carolina Pharmacy Agrees to Resolve False Claims Act Allegations

component: Civil Division

body_text: MedCare Clinic & Pharmacy, LLC (MedCare), located in Indian Trail, North Carolina, has agreed to pay $213,677 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that were never dispensed. The United States alleged that, from Jan. 1, 2016, through Dec. 31, 2019, MedCare billed both Medicare Part D and North Carolina Medicaid for 200 prescription medications that MedCare never distributed to beneficiaries. According to the government’s allegations, inventory records showed that MedCare did not buy enough of these medications to fill all of the prescriptions billed to these health care programs. “Pharmacies may bill only for medications that they actually sell,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our office will continue to pursue entities that knowingly and unjustly enrich themselves at the taxpayers’ expense.” “When pharmacies bill government programs for prescriptions that are not disbursed to patients, taxpayer dollars are wasted and finite resources are diverted from beneficiaries in need,” said the U.S. Attorney Dena J. King for the Western District of North Carolina. “Our office will continue to work with our state and federal partners to investigate and hold accountable those who seek to profit from fraud on federal health care programs.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MedCare employees Brittanie Henry and Zilphia Adcock. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Henry and Adcock will receive $53,419.43 as their share of the settlement. The qui tam case is captioned U.S. ex rel. Henry v. Pharmacy Holdings, et al. , No. 3:20-cv-61 (W.D.N.C.). The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of North Carolina, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Department of Health and Human Services Office of Inspector General. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Senior Trial Counsel Jennifer Cihon of the Civil Division, Assistant U.S. Attorney Caroline McLean and Investigator Cathleen Hollowell for the Western District of North Carolina investigated the case. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Local Leader Of Alprazolam Conspiracy Sentenced To Eight Years In Federal Prison

component: USAO - Florida, Northern

body_text: PENSACOLA, FLORIDA – Jason C. Martinez, 46, of Pensacola, Florida, was sentenced to eight years in federal prison for leading a local conspiracy aimed at distributing and possessing with intent to distribute alprazolam after previously pleading guilty on January 10, 2023. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. “Our local, state, and federal law enforcement partners work tirelessly to keep us safe and serve a critical role in our efforts to remove addictive, and all too frequently deadly, controlled substances from our communities,” said U.S. Attorney Coody. “These sentences demonstrate our commitment to support their efforts through the investigation and vigorous prosecution of criminals distributing drugs in North Florida.” Between November 1, 2020, and March 11, 2022, Martinez, and his two co-conspirators, Chad E. Dennison, and Tina P. Rahn, conspired to distribute alprazolam throughout Pensacola. On March 11, 2022, law enforcement executed multiple residential search warrants to conclude its nearly one-and-a-half year-long investigation into the alprazolam distribution conspiracy. During the investigation, law enforcement intercepted over one hundred parcels traveling through the United States Postal stream. Upon execution of the search warrants, law enforcement discovered pharmaceutical grade pill presses, pill counting machines, a full body suit and respirator, drug ledgers, and packaging products, amongst other items. Martinez received his orders from unknown co-conspirators via the dark web, and he then mixed, pressed, and packaged the pills as well as labelled them for distribution. Martinez then relied on his co-conspirators to deliver the packages to various post offices throughout the Pensacola area for distribution all over the country. Martinez’s co-conspirators previously pled guilty to conspiracy to distribute and possess with intent to distribute alprazolam. The sentences imposed for all defendants were as follows: Jason C. Martinez, 46, of Pensacola, 8 years in federal prison, followed by 2 years’ supervised release; Chad E. Dennison, 44, of Pensacola, 48 months in federal prison, followed by 3 years’ supervised release; and Tina P. Rahn, 53, of Pensacola, 24 months in federal prison, followed by 3 years’ supervised release. “The resolution to this investigation demonstrates the hard work and collaboration of our law enforcement partners. The leader of this extensive drug distribution network will now spend significant time behind bars,” said Juan Vargas, Inspector in Charge of the Miami Division, U.S. Postal Inspection Service. “Martinez and his co-conspirators plagued their communities with illicit drugs. This investigation is a great example of the U.S. Postal Inspection Service’s commitment to eliminating illicit drugs from the mail and protecting our communities.” This case was investigated by the United States Postal Inspection Service with the assistance of local law enforcement to include the Escambia County Sheriff’s Office and Florida Highway Patrol. Assistant United States Attorney Jennifer H. Callahan prosecuted the case. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html


title: Justice Department Resolves Suit Against Virginia Beach Towing Company for Illegally Auctioning Off Servicemembers’ Vehicles

component: Civil Rights Division

body_text: The Justice Department has entered into a consent order requiring Steve’s Towing Inc. in Virginia Beach, Virginia, to pay $90,000 to settle a complaint alleging that the company violated the Servicemembers Civil Relief Act (SCRA). The complaint, which was filed on April 15, 2022, alleges that Steve’s Towing failed to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers, including two vehicles belonging to a member of a Navy SEAL team who was deployed overseas. The complaint further alleges that the company engaged in a pattern or practice of violating the SCRA and had no policies, practices, or procedures in place to ensure SCRA compliance. Under the SCRA, a towing company must determine whether a vehicle in its possession belongs to a servicemember; if so, the towing company must obtain a court order prior to selling the vehicle. “This case began with a member of a Navy SEAL team who returned home from an overseas deployment, only to find that a towing company had auctioned off two vehicles that he had parked at a military base,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will compensate all of the servicemembers whose vehicles were illegally taken from them while they were serving their country.” “Servicemembers often rely heavily on their personal vehicles to commute to work and care for their families. A servicemember’s loss of a vehicle, therefore, can affect the military’s readiness,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “EDVA is dedicated to holding accountable businesses who do not uphold the right of servicemembers under the SCRA.” The department launched its investigation after a Navy legal assistance attorney reported that Steve’s Towing Inc. had sold two vehicles belonging to a deployed Navy SEAL without first obtaining court orders. One of the vehicles was a unique Toyota Land Cruiser. Stored inside the SEAL Team member’s Land Cruiser was evidence of his military service in the form of a duffel bag of military uniforms and a Naval Special Warfare Development Group Sniper challenge coin. Under the proposed consent order, which still must be approved by the court, Steve’s Towing will pay $67,500 to the seven SCRA-protected servicemembers referenced in the United States’ complaint, up to $12,500 to compensate additional SCRA-protected servicemembers whose vehicles Steve’s Towing may have sold without first obtaining court orders and a $10,000 civil penalty. Steve’s Towing will also be required to provide SCRA training to its employees and to develop new policies and procedures consistent with the SCRA. Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at https://legalassistance.law.af.mil/ . The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, together with U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov .


title: Justice Department and FTC Obtain Settlement to Stop Deceptive Marketing Practices Involving the Sale of Funeral Goods and Services

body_text: The Justice Department, together with the Federal Trade Commission (FTC), today announced that the U.S. District Court for the Southern District of Florida entered an order that requires Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano to pay $275,000 in civil penalties and to be subject to injunctive relief requiring them to comply with the FTC Act and the FTC’s Trade Regulation Rule Concerning Funeral Industry Practices (Funeral Rule). The FTC Act prohibits unfair and deceptive conduct and false advertising. The Funeral Rule prohibits providing consumers with inaccurate price information and requires certain disclosures to consumers regarding pricing for funeral-related goods. The stipulated order settles the government’s allegations that Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano violated the FTC Act and Funeral Rule. The government’s complaint alleges that defendants serve as brokers between consumers and third-party funeral and cremation providers that offer funeral services, and that defendants have misled consumers about the locations where funeral services will be provided, as well as the ultimate costs of such services. The complaint also alleges that when consumers objected to these pricing practices, defendants refused to provide consumers with the remains of their loved ones until they paid. Under the settlement reached by the parties, defendants agreed not to engage in these practices. They also specifically agreed to clearly and conspicuously include on their websites the actual physical locations of the service providers and a link to their general price lists. Before accepting payment from any consumer, defendants agreed to provide an itemized, written statement of all prices and the total cost of services. defendants also agreed that their obligation to provide accurate information about their offerings and prices extends to consumers who inquire by telephone or electronic means. “The Department of Justice is committed to protecting consumers from deceptive sales practices — particularly when consumers are in vulnerable circumstances, such as when a loved one passes” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “This resolution serves as a warning that the Department of Justice will not permit companies and individuals to profit from consumers’ grief by engaging in unlawful and deceptive marketing practices when offering funeral arrangements.” “Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.” Trial Attorneys Wandaly Fernández García and Katherine Ho and Assistant Director Lisa K. Hsiao of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle for the Southern District of Florida handled the matter. Rebecca Plett and Thomas Harris represent the FTC.


title: United States Settles Fair Housing Act Lawsuit Against Artimus Construction For Failure To Construct Apartments Accessible To Persons With Disabilities

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States has settled a federal Fair Housing Act (“FHA”) lawsuit against ARTIMUS CONSTRUCTION, INC. (“ARTIMUS”). Under the settlement, ARTIMUS has agreed to make retrofits at rental buildings in Harlem and Chelsea, named Susan’s Court and Chelsea Park, respectively. ARTIMUS also agreed to provide $75,000 to compensate aggrieved persons and pay a $5,000 civil penalty. Additionally, ARTIMUS agreed to establish procedures to survey four additional properties, two in Manhattan and two in Queens, to improve accessibility and agreed to ensure that its future residential development projects will comply with the accessibility requirements of the FHA. The settlement was approved today by U.S. District Judge Paul A. Engelmayer. U.S. Attorney Damian Williams said: “This Office has brought multiple suits to address the failure of real estate developers to comply with the Fair Housing Act, and we will continue to ensure that New York City’s residential housing market is open to everyone, including people with disabilities. We appreciate Artimus’s cooperation in remedying the inaccessible conditions in their buildings.” According to the allegations in the complaint and the settlement approved today: The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities. The inaccessible conditions at ARTIMUS’s rental buildings included excessively high thresholds at building entrances and entrances to common use areas, common use bathrooms that lack grab bars and pipe insulation, excessively high thresholds at entrances to individual apartments and within the apartments, and bathrooms in individual apartments that lack sufficient clear floor space for people who use wheelchairs. These features in the common use areas of ARTIMUS’s buildings, as well as in the buildings’ apartment interiors, did not meet the specifications set forth in the Fair Housing Accessibility Guidelines, Design Guidelines for Accessible/Adaptable Dwellings. Under the settlement, ARTIMUS agreed to make retrofits to the public and common use areas as well as the individual units at the Chelsea Park and Susan’s Court buildings to improve accessibility. The settlement also requires ARTIMUS to establish procedures to ensure FHA compliance at its future development projects, including to retain an FHA compliance consultant to assess the design documents and conduct site visits to identify non-compliant conditions. In addition, ARTIMUS agreed to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements. Finally, the settlement requires ARTIMUS to provide $75,000 to compensate aggrieved persons. Aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who: Were discouraged from living at ARTIMUS’s rental buildings because of the lack of accessible features; Have been hurt in any way by the lack of accessible features at ARTIMUS’s rental buildings; Paid to have an apartment at one of ARTIMUS’s rental buildings made more accessible to persons with disabilities; or Otherwise were discriminated against on the basis of disability at one of ARTIMUS’s rental buildings as a result of inaccessible design and construction. * * * The settlement with ARTIMUS is the 18th settlement reached by this Office with developers and architects to remedy inaccessible housing in this District, including suits against The Durst Organization, Glenwood Management, Silverstein Properties, Related Companies, and Atlantic Development. Any individual who may be entitled to compensation can file a claim by using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website https://www.justice.gov/usao-sdny/civil-rights or by sending a written claim to: U.S. Attorney’s Office, Southern District of New York 86 Chambers Street, 3rd Floor New York, New York 10007 Attention: Chief, Civil Rights Unit The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorney David J. Kennedy is in charge of the case.


title: Former North Kingstown Man Sentenced for Transferring Obscene Material

component: Federal Bureau of Investigation (FBI)

body_text: PROVIDENCE – A former North Kingstown man who transferred sexually explicit material to another person online, after the other person represented that he was a 10-year-old child, has been sentenced to five years of federal probation, announced United States Attorney Zachary A. Cunha. Neil Streich, 60, whose currently resides in West Warwick, pleaded guilty in October 2020 to a charge of importation or transportation of obscene material. Streich admitted that in March 2020, he transferred three sexually explicit videos of himself via Kik, an Internet-based text and social media platform, to a person who was posing as a 10-year-old girl. Streich made the transfer after approximately one week of communications with the person who was, in fact, an FBI undercover agent based in Pennsylvania who was assigned to the FBI Violent Crimes Against Children Task Force. At the time of Streich’s arrest, FBI agents, with the assistance of the North Kingstown Police Department and the United States Marshals Service, executed a court-authorized search of Streich’s residence and seized electronic devices owned by Streich. A forensic examination of the devices revealed images and videos from Streich’s communications with the undercover agent. Streich was sentenced on Thursday by U.S. District Court Judge William E. Smith to a term of five years of probation and ordered to pay a $5,000 fine. The case was prosecuted by Assistant United States Attorneys Milind M. Shah and G. Michael Seaman. ###


title: California Resident Sentenced To Four Years In Prison For Conspiring To Violate U.S. Sanctions Against Iran

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that NILOUFAR BAHADORIFAR, a/k/a “Nellie Bahadorifar,” was sentenced to four years in prison for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) by providing services, including financial services, to Iran and the Government of Iran, in violation of U.S. sanctions against Iran, and for structuring. BAHADORIFAR pled guilty on December 15, 2022, before U.S. District Judge Ronnie Abrams, who imposed today’s sentence. U.S. Attorney Damian Williams said: “Niloufar Bahadorifar willfully violated sanctions and knowingly provided financial support to Iranian intelligence assets, who in turn were engaged in a plot to kidnap an Iranian human rights activist living in the United States whom the Iranian Government has sought to silence for years. Assisting malign foreign governments by violating sanctions can have devastating consequences, including for those targeted by hostile regimes for retribution. This Office will continue to prosecute efforts to subvert sanctions and is proud to protect victims from repressive regimes.” According to the Indictment and other documents in the public record, as well as statements made in public court proceedings: The IEEPA confers upon the President authority to deal with unusual and extraordinary threats to the national security and foreign policy of the United States. Since 1979, the President has found that the situation in Iran constitutes an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States. Among the Government of Iran’s malign practices, it has targeted and sought to repress, including through harassment, intimidation, and violence, those who defend human rights and criticize the regime. Pursuant to the IEEPA, and applicable Executive Orders and regulations, U.S. persons are prohibited from exporting any services, including financial and banking services, to Iran or the Government of Iran without a license from the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”). For years, the Government of Iran has targeted a prominent Iranian dissident living in New York City (“the Victim”). The Victim is a journalist, author, and human rights activist who has publicized the Government of Iran’s human rights abuses and suppression of political expression. Beginning in at least 2020, Iranian intelligence officials and assets, including co-defendant Mahmoud Khazein, plotted to kidnap the Victim from within the United States for rendition to Iran in an effort to silence the Victim’s criticism of the regime. As part of that plot, on multiple occasions in 2020 and 2021, agents of the Government of Iran procured the services of private investigators to surveil, photograph, and video record the Victim and the Victim’s household members. These agents of the Government of Iran, including Khazein, procured the surveillance by misrepresenting their identities and the purpose of the surveillance to the investigators and laundered money into the United States from Iran in order to pay for the surveillance, photos, and video recordings of the Victim. Beginning in approximately 2015, BAHADORIFAR, a U.S. citizen residing in California and originally from Iran, provided financial and other services, including access to the U.S. financial system and U.S. financial institutions, to Iranian residents and entities, including to Khazein. BAHADORIFAR, who is not charged with participating in the kidnapping conspiracy, provided financial services that ultimately supported the plot. Among other things, BAHADORIFAR caused a payment to be made to a private investigator for surveillance of the Victim on behalf of Khazein. BAHADORIFAR’s payment obscured the origin of those who had hired the private investigator, who surveilled the Victim without knowing it was on behalf of Iranian intelligence services. At no time did BAHADORIFAR obtain permission from OFAC to provide services to Iran. Beginning in approximately 2019, BAHADORIFAR also structured cash deposits totaling hundreds of thousands of dollars. In total, BAHADORIFAR structured at least approximately $476,100 in more than 120 individual deposits. All but two of the deposits were less than $10,000. * * * In addition to the prison term, BAHADORIFAR, 48, of Irvine, California, was sentenced to three years of supervised release. Mr. Williams praised the outstanding efforts of the Federal Bureau of Investigation’s (“FBI”) New York Field Office Counterintelligence-Cyber Division and the New York FBI Iran Threat Task Force. Mr. Williams also thanked the New York City Police Department (“NYPD”) and the NYPD Intelligence Bureau, the FBI’s Los Angeles Field Office Orange County Resident Agency, and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance. This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Michael D. Lockard, Jacob H. Gutwillig, and Matthew J.C. Hellman are in charge of the prosecution, with assistance from Trial Attorney Christopher Rigali of the Counterintelligence and Export Control Section.


title: Texas Man Pleads Guilty to Hate Crime and Arson for Setting Fire to Synagogue

body_text: A Texas man pleaded guilty today to a hate crime and arson in connection with a fire he set at the Congregation Beth Israel synagogue in Austin, Texas, on Oct. 31, 2021. According to court documents and admissions made during the plea hearing, three days before the arson, on Oct. 28, 2021, Franklin Sechriest of San Marcos, Texas, drove to the synagogue’s parking lot outside its sanctuary. According to journals recovered from Sechriest, he went there to “scout out a target.” Sechriest admitted that he targeted the synagogue because of his hatred of Jews, and his journals were replete with virulent antisemitic statements and views. Sechriest also possessed several decals and stickers expressing antisemitic messages. The night of the arson, Sechriest drove to the synagogue and was seen on surveillance video carrying a five-gallon container and toilet paper toward the synagogue’s sanctuary. Moments later, multiple surveillance videos captured the glow of a fire from the direction of the sanctuary. A security camera captured Sechriest jogging away from the direction of the fire and toward the open driver’s side door of a vehicle. A concerned citizen reported the fire, and the Austin Fire Department responded quickly to extinguish it. In Sechriest’s journal, in an entry dated Oct. 31, 2021, he wrote “I set a synagogue on fire.” In the days following the arson, Sechriest’s journal noted that he was actively monitoring media reports to track the progress of the investigation into the arson. “Antisemitism has no place in our society, and hate-fueled violence will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By targeting a house of worship, the defendant attempted to intimidate and disrupt the Jewish community. The Department of Justice is committed to aggressively prosecuting antisemitic violence and will continue to hold accountable the people responsible for these deplorable incidents.” “These hate-filled crimes not only caused damage to a Jewish place of worship, but they were intended to intimidate and undermine the well-being of the entire Jewish community,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Antisemitic violence and violence against any person or group on account of their religion will not be tolerated. My office will remain vigilant in bringing to justice criminals who engage in hate crimes.” “One of the FBI’s highest priorities is to protect the civil rights of all Americans,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “Hate crimes such as this one devastate and terrorize communities. The FBI remains steadfast and committed to working with our partners to prevent violent incidents like this one, which was motivated by bias and hate. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.” The sentencing is set for June 23. Sechriest faces a maximum sentence of 20 years in prison and a $250,000 fine. Assistant Attorney General Clarke, U.S. Attorney Esparza and Special Agent in Charge Oliver made the announcement. The FBI and Austin Fire Department investigated the case. Assistant U.S. Attorney Matthew Devlin for the Western District of Texas and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.


title: 6 Sentenced for Illegally Trafficking Corals from the Philippines

component: USAO - Alaska

body_text: ANCHORAGE – On April 4, 2023, a Colorado man was sentenced on charges related to violations of the Lacey Act and smuggling protected marine corals from the Philippines into the United States for retail sale. Veleriy V. Gorbounov, 45, of Morrison, Colorado was sentenced this week by U.S. District Court Judge Joshua Kindred to a term of probation of two years, the payment of a fine of $4,000 to a Philippines based organization dedicated to coral reef restoration and being prohibited from engaging in the sale of marine corals for his role in illegally importing endangered coral from the Philippines for sale. Gorbounov is one of 8 defendants charged in the District of Alaska for illegally importing corals from the Philippines for retail sale. In April, 2022, prosecutors charged Jerome Anthony Stringfield, 43, of Kissimmee, Florida; Albert B. Correira, 35, of Westport, Massachusetts; and Allen William Ockey, 35, of Long Beach, California, with felony violations of conspiracy, violations of the Lacey Act and smuggling of corals from the Philippines. Ockey pleaded guilty to Wildlife Trafficking felony charges and was sentenced to a term of two years’ probation and required to pay a donation to a Phillipines organization dedicated to coral reef restoration in the amount of $5,000. Defendant Stringfield and Correira’s cases remains pending. In separate filings, the following individuals were each charged with misdemeanor offenses related to violations of the Lacey Act: Derek M. Kelley, 31, of Elkhart, Indiana; James Knight, 47, of Newaygo, Michigan; Valeriy V. Gorbounov, 46, of Morrison, Colorado; Nathan C. Meisner, 35, of Rapid City, South Dakota; and Ricky A. Sprires, 34, of Gilbert South Carolina. Each of these defendants have plead guilty to Wildlife Trafficking under the Lacey Act and were sentenced to terms of probation of two years, required to pay contributions to a Philippine-based coral reef restoration organization in amounts varying from $2,000 to $4,000 and conditions that they do not import or sell corals for the term of probation. The indictment and separate filings all alleged that between July 2017 and August 2018, the defendants paid a Philippine national to dive for and collect protected marine corals which they would then sell online to coral collectors and hobbyists. They further alleged that some corals were illegally sold in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) which is an international treaty implemented to prevent species from becoming endangered or extinct because of international commercial trade. Additionally, Philippine law prohibits any person to gather, possess, commercially transport, sell or export corals commercially regardless of CITES status. In total, the defendants, through their Philippine supplier, illegally purchased and transported for sale more than 3,000 separate pieces of coral in violation of Philippines and United States law. The charging documents in all cases states that the Republic of the Philippines is one of six countries straddling the Coral Triangle, a 5.4 million-square-kilometer stretch of ocean that contains 75% of the world’s coral species, one-third of the Earth’s coral reefs and more than 3,000 species of fish. Poaching for corals and other factors have left only 5% of coral reefs in the Philippines in “excellent” condition, with only 1% in a “pristine” state. The supplier in the Philippines, Glenn Albert Binoya, a Philippines national, was charged by the Republic of the Philippines after the U.S. Fish and Wildlife Service contacted Philippine authorities about their investigation. Binoya, 47, died of unrelated medical issues prior to resolution of his case. “This office and the Department of Justice will pursue state, national and transnational wildlife trafficking regardless of location,” said United States Attorney S. Lane Tucker, District of Alaska. “Through our partnership with the Fish and Wildlife Service these traffickers have been brought to justice.’ U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement. The U.S. Fish and Wildlife Service, Office of Law Enforcement is investigating the case. Assistant U.S. Attorney Steven Skrocki is prosecuting the cases. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ### usao/ak/23-025


title: Opp, Alabama Woman Sentenced to Federal Prison for Stealing Funds from Church

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – On April 6, 2023, Carmen Ramer Davis, 59, from Opp, Alabama, received a sentence of 18 months in prison after pleading guilty to eight counts of wire fraud, announced United States Attorney Sandra J. Stewart. The federal judge also ordered that Davis serve one year of supervised release following her prison term. According to court records and statements made in open court, sometime in 2006, the Brooklyn Congregational Methodist Church in Coffee County appointed Davis to serve as its secretary. In this position, Davis had authority to pay bills and expenses incurred by the church and had access to the church’s bank accounts. Davis eventually obtained a debit card associated with the church’s bank account without the church’s knowledge. Davis began using the card to make fraudulent cash withdrawals at ATMs and to purchase personal items at various retailers. She also fraudulently wrote checks from the church’s bank account to herself or made them out to cash. Davis did not make these withdrawals and purchases with the knowledge or consent of the church, nor were they for the church’s benefit. Evidence gathered during the investigation indicated that Davis used some of the illicit proceeds for trips to casinos in Mississippi and Alabama. The fraudulent activity was not discovered until August 2019, when a church leader received a letter from the church’s bank indicating there were insufficient funds to cover a $75.00 check written against the church’s account. During today’s sentencing hearing, the judge determined that, over the course of the scheme (a period stretching from July of 2008 until July of 2019), Davis defrauded the church of $89,440.32. The judge ordered Davis to pay restitution to the church in that amount. Soon after the church leaders discovered Davis’s fraud, the Brooklyn Congregational Methodist Church closed due to financial hardship and has not reopened. “The crimes committed by Ms. Davis victimized an entire faith community,” said United States Attorney Stewart. “The harm will continue to be felt for quite some time. I am hopeful that the sentence imposed will deter others from engaging in such deceitful conduct.” “The actions of the defendant significantly damaged not only the church, but also the community at large,” stated FBI Special Agent in Charge Paul Brown. “I am proud of the work by the FBI and US Attorney’s office to hold Davis accountable for her actions and work toward repairing the public's trust.” The FBI and the Coffee County Sheriff’s Office investigated this case. Assistant United States Attorney Joel Feil prosecuted the case.


title: East St. Louis Doctor Pleads Guilty to Health Care Fraud

component: Criminal - Criminal Fraud Section

body_text: EAST ST. LOUIS, Ill. – A podiatrist practicing in East St. Louis pled guilty in a U.S. District courtroom on Thursday to committing health care fraud from 2016 to 2020. Howard Jackson, 69, of Florissant, Missouri, admitted he routinely billed Medicare and Medicaid for procedures he did not perform. “Health care providers who commit fraud for financial gain threaten the integrity of our health care system and the basic expectation of competent, available care,” said First Assistant U.S. Attorney Jim Cutchin. “I appreciate our partnership with the Illinois State Police and the Office of the Inspector General to bring this offender to justice.” "Providers who submit fraudulent claims to Medicare and Medicaid undermine the integrity of federal health care programs and waste valuable taxpayer dollars," said Special Agent in Charge Mario M. Pinto at the Department of Health and Human Services Office of Inspector General (HHS-OIG). "Working closely with our law enforcement partners, HHS-OIG remains committed to investigating and holding accountable bad actors who defraud programs meant to address the legitimate needs of patients." “Medical professionals are in a position of trust and when they break that trust by stealing thousands of tax payer dollars for personal gain, ISP will be there to investigate,” said ISP Director Brendan F. Kelly. Dr. Jackson was a podiatrist with a practice in East St. Louis, Illinois. Between January 2016 and December 2020, he engaged in a health care fraud scheme by submitting claims to Medicare and Medicaid for “nail avulsions” he did not perform. A “nail avulsion” is a surgical procedure that involves the separation and removal of all or part of a toenail from the tip of the nail back to the base of the nail. The procedure typically requires the use of anesthesia to avoid causing extreme discomfort to the patient. Dr. Jackson admitted in court papers that, on many occasions when he billed for a nail avulsion, he had not used anesthesia and had provided only routine foot care like trimming and clipping nails. Jackson cheated Medicare and Medicaid out of at least $144,694.69 as a result of the fraud. Jackson’s offenses carry a maximum sentence of ten years’ imprisonment and a fine of up to $250,000. His sentencing is set for July 27, 2023. The Illinois State Police and the U.S. Department of Health and Human Services, Office of the Inspector General, are conducting the investigation. Assistant U.S. Attorney Peter T. Reed is prosecuting the case.


title: Meth Trafficker Sentenced To 292 Months' Imprisonment

component: Drug Enforcement Administration (DEA)

body_text: CHATTANOOGA, Tenn. – On April 7, 2023, Armando Mejia-Almazan, 44, a Mexican National, was sentenced to 292 months in prison by the Honorable Travis R. McDonough, Chief United States District Judge, in the United States District Court at Chattanooga. As part of the plea agreement filed with the court, Mejia-Almazan agreed to plead guilty to an indictment charging him with one count of conspiracy to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. After his release from imprisonment, Mejia-Almazan will be on supervised release for five years and may be subject to deportation. According to court documents and evidence presented at sentencing, Mejia-Almazan, who had previously been removed from the United States and unlawfully returned, distributed more than 50 kilograms of ice methamphetamine to a Chattanooga-based drug trafficking organization. Mejia-Almazan utilized multiple apartments in the Atlanta metro area to facilitate his drug trafficking and acted under the direction of a Veracruz, Mexico-based methamphetamine broker affiliated with the Cartel de Jalisco Nuevo Generacion (“CJNG”). “The United States Attorney’s Office is committed to targeting the ongoing threat to our communities from cartel-based drug traffickers,” said United States Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to ensure that those who seek to profit from flooding our communities with dangerous drugs will face justice.” I'm very proud of the work done by the dedicated men and women of DEA in this case," said Special Agent in Charge J. Todd Scott, head of Drug Enforcement Administration's ("DEA") Louisville Field Division. "Mr. Mejia-Almazan had tentacles reaching down into Mexica, straight to the Sinaloa and Jalisco New Generation Cartels, the two ruthless, violent criminal organizations that are intentionally poisoning Americans to drive addiction." This sentencing was the culmination 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. The Appalachia HIDTA mission is to use a multi-disciplinary approach to deal with the ongoing threats to public health and safety, particularly as it regards prescription drug diversion, the emerging threat of heroin, as well as the continued threats of marijuana, cocaine, methamphetamine, and synthetic drugs. The Appalachia region is arguably the epicenter of this crisis and requires unprecedented multi-disciplined cooperation to effectively address the many faceted health and public safety problems that result from this daunting threat. The Appalachia HIDTA will serve as the conduit for this cooperation. Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Mejia-Almazan, included DEA Chattanooga Resident Office, DEA Atlanta Field Division, Federal Bureau of Investigation Chattanooga Resident Agency, Chattanooga Police Department, and Hamilton County Sheriff’s Office. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation. Assistant U.S. Attorney Kevin T. Brown represented the United States. ###


title: Jury Finds Massachusetts Man Guilty of a Conspiracy to Distribute Fentanyl

component: USAO - New Hampshire

body_text: CONCORD – A jury convicted a Methuen, Massachusetts man yesterday in federal court in Concord for a conspiracy to distribute fentanyl in New Hampshire, announces Jane E. Young. Ramon Jaquez-Diaz, age 52, was convicted following a two-day jury trial for his role as a drug-runner in a conspiracy to distribute fentanyl operating out of Lawrence, Massachusetts. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for July 24, 2023 at 10 a.m. Jaquez-Diaz was indicted for this charge on March 8, 2021. Jaquez-Diaz worked with others to transport fentanyl from New York to Massachusetts, and ultimately into New Hampshire. The fentanyl was internationally sourced. Twelve people were charged for this conspiracy. The charging statute provides a sentence of no greater than 20 years in prison, at least 3 years of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Drug Enforcement Administration led the investigation. Assistant U.S. Attorneys Seth R. Aframe, Heather A. Cherniske, and John Kennedy are prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . ###


title: Federal Jury Convicts Timothy Carver On Production Of Child Pornography

body_text: GREENEVILLE, Tenn. – On April 7, 2023, following a four-day trial in the United States District Court, Greeneville, Tenn., a jury convicted Timothy Carver, 53, of Jonesborough, Tenn., of knowingly producing child pornography, in violation of 18 U.S.C. § 2251(a), knowingly distributing child pornography, in violation of 18 U.S.C. § 2252A(a)(2)(A), and knowingly possessing child pornography involving a child less than 12 years of age, in violation of 18 U.S.C. § 2252A(a)(5)(B). Sentencing is set for August 10 th at 9:00am before the Honorable Clifton L. Corker, in United States District Court for the Eastern District of Tennessee at Greeneville. Carver faces a minimum mandatory 15 years’ imprisonment for production of child pornography, a minimum mandatory five years for distribution of child pornography. Carver will also be subject to lifetime supervision and placement on the sex offender registry. Evidence presented at trial proved the defendant videoed and photographed himself engaged in sexual acts with a 2-year-old. The proof further showed that he distributed a child pornography video to an FBI Online Covert Agent using a messaging application. FBI agents searched the defendant’s cellular phone and discovered 1,735 photo and video files containing child pornography. U.S. Attorney Francis M. Hamilton, III of the Eastern District of Tennessee, made the announcement. The Federal Bureau of Investigation, including agents from the Johnson City, Tennessee, and Pittsburgh Pennsylvania Field Offices, led the investigation that resulted in the indictment and subsequent conviction of Carver. The Washington County Sheriff’s Office assisted in the investigation. Assistant U.S. Attorneys Emily Swecker and Thomas McCauley represented the United States. This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.projectsafechildhood.gov . ###


title: Los Angeles Businessman, Utah Fuel Plant Operators and Employees Sentenced to Prison for Billion-Dollar Biofuel Tax Fraud Scheme

component: Criminal Division

body_text: Five individuals were sentenced this week to prison for their roles in a $1 billion biofuel tax conspiracy: Lev Aslan Dermen, aka Levon Termendzhyan, 56, was sentenced to 40 years; Jacob Kingston, 46, was sentenced to 18 years; Isaiah Kingston, 42, was sentenced to 12 years; Rachel Kingston, 67, was sentenced to seven years; and Sally Kingston, 45, was sentenced to six years. According to court documents and testimony from Dermen’s 2020 trial, from 2010 to 2018, Dermen conspired with Jacob and Isaiah Kingston, their mother, Rachel Kingston, Jacob Kingston’s wife, Sally Kingston, and others, to fraudulently claim more than $1 billion in refundable renewable fuel tax credits. The IRS ultimately paid out more than $511 million in credits to Washakie Renewable Energy (“Washakie”), a Utah biodiesel company owned by Jacob and Isaiah Kingston. The Kingstons distributed the fraud proceeds among themselves and Dermen. Dermen was found guilty after a seven-week jury trial of conspiracy to commit mail fraud, conspiracy to commit money laundering and money laundering. In addition to the prison sentence, U.S. District Judge Jill N. Parrish ordered Dermen to pay $442,615,520 in restitution to the IRS and imposed a money judgment of more than $181 million against him. Jacob Kingston was ordered to pay $511 million in restitution to the IRS. The court also imposed a $338 million money judgment against him. Jacob Kingston was co-owner and CEO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, filing false claims with the IRS, money laundering and conspiracy to commit the same, obstruction by concealing and destroying records and conspiracy to commit the same and witness tampering. Isaiah Kingston was also ordered to pay $511 million in restitution to the IRS. Isaiah Kingston, Jacob Kingston’s brother, was co-owner and CFO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, aiding and assisting in the filing of false partnership tax returns, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records and conspiracy to commit the same. Jacob and Isaiah Kingston both testified at Dermen’s trial in 2020. Rachel Kingston was the “special projects manager” at Washakie and participated in the scheme by backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records. Sally Kingston also worked at Washakie and participated in the scheme by similarly backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering. The conspiracy began in 2010 and continued through 2018 and involved multiple fraudulent schemes. One involved purchasing biodiesel from the East Coast of the United States (which had been produced by others who had already claimed the renewable fuel tax credit) and exporting it to foreign countries, including Panama, then doctoring transport documents to disguise and import the biodiesel as “feedstock.” Washakie used this false paperwork to claim it had produced biodiesel from the feedstock to support its filing of fraudulent claims for IRS biofuel tax credits. Washakie also fraudulently obtained millions of EPA renewable identification numbers that were then sold for approximately $65 million. Later, Dermen and the Kingstons conspired to purchase millions of gallons of biodiesel and rotate it though the U.S. shipping system to create the appearance that qualifying fuel was being produced and sold by Washakie. Washakie applied for and was paid by the IRS over $300 million for its claimed 2013 production and over $164 million for its claimed 2014 production. Evidence at Dermen’s trial showed that, to further create the appearance of legitimate business transactions, Dermen and the Kingstons schemed to cycle their and other co-conspirators’ fraud proceeds in more than $3 billion in financial transactions through multiple bank accounts. Throughout the scheme, Dermen falsely assured Jacob Kingston that Kingston and his family would be protected by Dermen’s “umbrella” of corrupt law enforcement and immune from criminal prosecution. In exchange, Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg that were subsequently laundered internationally and through the U.S. financial system. Money from the fraudulent claims were distributed to Dermen and the Kingstons and used to make lavish purchases in the United States, Turkey, and Belize. Dermen’s associates in Turkey bought and rebuilt a 150-foot yacht named “Queen Anne.” The Queen Anne was seized by the government in Beirut, Lebanon in 2021, and then sold in Cyprus for $10.1 million. Dermen also caused Jacob Kingston to send more than $700,000 on behalf of Dermen to purchase land in Belize for a planned casino, for which the government is seeking forfeiture. The government is also seeking the forfeiture of other assets in Turkey related to the fraud proceeds sent there. Jacob and Isaiah Kingston sent more than $21 million in fraud proceeds to SBK Holdings USA, Inc., Dermen’s California-based company. Jacob Kingston used $1.8 million of the fraud proceeds to buy a 2010 Bugatti Veyron for Dermen as a “gift,” and Dermen gifted a chrome Lamborghini and a gold Ferrari to Jacob Kingston. Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, NOIL Energy Group, to purchase a mansion in Sandy, Utah for Jacob and Sally Kingston. The Kingston defendants sent over $35 million of their share of the fraud proceeds to their extended family and companies they owned. Dermen also laundered $3.5 million through SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California. The government now seeks forfeiture of this residence as well as a couple dozen other parcels of real property that were purchased with the Kingstons’ share of the proceeds. “The significant sentences imposed by the court reflect the breathtaking scope of the defendants’ nearly decade-long tax fraud scheme – one of the largest ever,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Dermen and members of the Kingston family cost law-abiding taxpayers more than $500 million and attempted to steal double that. They also sought to cover their tracks by cycling billions-of-dollars in transactions through the banking system and using fuel purchases and oil tankers to give the illusion their plant was actually producing and selling biodiesel fuel eligible for IRS credits. Tax Division prosecutors and IRS-CI Special Agents not only unraveled this scheme – they uncovered, traced and recovered millions in proceeds secreted in Turkey, the United States and elsewhere.” “The U.S. Attorney’s Office for the District of Utah thanks the Justice Department’s Tax Division and IRS investigators for their tireless efforts into shutting down this large-scale scheme,” said U.S. Attorney Trina A. Higgins for the District of Utah. “However, the work in this case is not over. Going forward, our office and the Tax Division will continue to work together to seek forfeiture of assets connected to this massive fraud scheme to recoup the losses it caused to the United States.” IRS-Criminal Investigation, the Environmental Protection Agency-Criminal Investigation Division (EPA-CID), and the Defense Criminal Investigative Service (DCIS) of the Department of Defense Office of the Inspector General investigated the case. “Today brings to a close the final step in the prosecution of these five defendants,” said Special Agent in Charge Albert Childress of the IRS Phoenix Field Office. “This case has been one of unprecedented fraud against the United States and its citizens and is one of the most egregious examples of tax fraud in U.S. history. These defendants not only participated in a scheme to steal over $500 million from the United States, but also went to great lengths to launder and hide their fraud proceeds. In addition, certain of the defendants even tried to conceal their fraudulent conduct by way of attempted witness threats and intimidation. After the last of the sentencings today, the government has made a statement that there will be severe consequences for fraud. Despite your efforts to launder your money, or any attempts to cover your crimes, there is always a trail which our financial investigators can follow, and justice will be done.” “The defendants sought to illegally and fraudulently profit from a program that was designed to help reduce greenhouse gas emissions,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This case sends a clear message that EPA and our law enforcement partners will aggressively prosecute these crimes and violators will pay a heavy price.” Acting Deputy Assistant Attorney General Goldberg also thanked the Justice Department’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg, Austria, Belize, Ireland, Lebanon and Cyprus for their assistance in the case. Senior Litigation Counsel John E. Sullivan and Trial Attorney Richard M. Rolwing of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Leslie Goemaat for the District of Columbia, formerly of the Tax Division, prosecuted the case. Senior Policy Advisor Darrin L. McCullough of the Justice Department’s Money Laundering and Asset Recovery Section assisted with the extensive forfeiture proceedings related to the prosecution. Several Assistant U.S. Attorneys for the District of Utah assisted in the forfeiture proceedings.


title: Statement from Attorney General Merrick B. Garland

component: Office of the Attorney General

body_text: The Justice Department tonight issued the following statement from Attorney General Merrick B. Garland following the district court decisions in Alliance for Hippocratic Medicine v. FDA and Washington et al. v. FDA : “The Justice Department strongly disagrees with the decision of the District Court for the Northern District of Texas in Alliance for Hippocratic Medicine v. FDA and will be appealing the court’s decision and seeking a stay pending appeal. Today’s decision overturns the FDA’s expert judgment, rendered over two decades ago, that mifepristone is safe and effective. The Department will continue to defend the FDA’s decision. Separately, the Justice Department is reviewing the decision of the District Court for the Eastern District of Washington in Washington et al. v. FDA. The Department is committed to protecting Americans’ access to legal reproductive care.”


title: Warren, PA Man Sentenced to Prison for Possessing Child Pornography

component: USAO - Pennsylvania, Western

body_text: ERIE, Pa. - A resident of Warren, Pennsylvania, has been sentenced in federal court to 4 years in jail and 7 years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today. United States District Judge Susan Paradise Baxter imposed the sentence on Vincent Dexter Swanson, 30, 304 Cold Spring Lane, Warren, Pennsylvania. According to information presented to the court, from April 2020 to March 2021, Swanson possessed and accessed with intent to view visual images and videos in individual computer files depicting prepubescent minors engaging in sexually explicit conduct. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. Prior to imposing sentence, Judge Baxter noted the seriousness of the offense and its impact on the most vulnerable segment of society. Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government. Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Swanson.


title: Jury Convicts Major Southwest Virginia Drug Supplier

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – A federal jury convicted a Texas man last week for trafficking large quantities of high-purity methamphetamine from Mexico into Southwest Virginia. According to court documents, Alonso Cantu-Cantu, 46, of Houston, Texas, was the major source of supply for a drug conspiracy that distributed more than 33 kilograms of crystal methamphetamine and 6 kilograms of cocaine into Southwest Virginia through a multi-jurisdiction drug trafficking organization. Evidence presented at trial showed that Cantu-Cantu received methamphetamine in 55-gallon drums that had been transported into the United States in water tankers directly from sources in Mexico. Cantu-Cantu then directed the drugs through distributors from Indiana, who ultimately distributed down the supply chain throughout the Western District of Virginia, from Harrisonburg to Bristol, Virginia. Many of these transactions were orchestrated through another major drug trafficker who was incarcerated in multiple Virginia prisons during the conspiracy. In all, the estimated street value of the methamphetamine and cocaine distributed during the course of the conspiracy was more than $1.4 million. Over 4.5 kilograms of methamphetamine, 125.4 grams of heroin, 94 grams of cocaine, and 7 firearms were seized, and 26 defendants have now been convicted over the course of the six-year investigation, which started with the investigation of street level dealers in the Smyth County, Virginia, area. At sentencing, Cantu-Cantu faces life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. United States Attorney Christopher R. Kavanaugh and Virginia Attorney General Jason Miyares made the announcement today. This investigation was led by the Drug Enforcement Administration-Washington Field Division’s Bristol Post of Duty, and the United States Postal Inspection Service with assistance from the Smyth County Virginia Sheriff’s Office. Numerous other agencies also provided assistance throughout the investigation including the Drug Enforcement Administration in Indianapolis, Indiana, and Birmingham, Alabama, the Washington County Virginia Sheriff’s Office, the Abingdon, Virginia Police Department, the Rockingham County Virginia RUSH Drug Task Force, the Rockingham County Virginia Sheriff’s Office, the Harrisonburg, Virginia Police Department, the Bessemer, Alabama Police Department, the Virginia Department of Corrections, the Virginia Department of Corrections Probation and Parole Unit, and the Southwest Virginia Regional Jail Authority. Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Senior Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section, and Assistant United States Attorney Lena L. Busscher prosecuted the case for the United States.


title: Indictment Charges 14 New Haven Area Residents with Charges Related to Counterfeit Pill Production, Narcotics Trafficking

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England; today announced that a federal grand jury in New Haven has returned an indictment charging the following 14 individuals with offenses related to the large-scale trafficking of fentanyl and methamphetamine pills disguised as legitimate prescription medication, as well as other controlled substances: WILLIS TAYLOR , 66, of West Haven AQUARIUS GUMBS , a.k.a. “Q,” “Ice,” and “Diamond,” 48, of New Haven SEAN PEPE , 38, of East Haven GORDON LAURIA , 52, of New Haven PAUL PAOLELLA , 52, of East Haven PETER ABLONDI TAYLOR , 20, of North Branford MARK APOTRIAS , 54, of North Branford THOMAS JOSLIN , 63, of East Haven DAVID KING , 58, of East Haven RICHARD GREATSINGER , 26, of West Haven CHRISTOPHER CAHILL , 55, of Florida MARKOS PAPPAS , a.k.a. “Speedy,” 49, of New Haven LISA FAUSEL , 59, of Milford JULIO ECHEVARRIA , a.k.a. “Warrior, 42, of New Haven As alleged in court documents and statements made in court, this matter stems from an investigation by the FBI’s New Haven Safe Streets/Gang Task Force and the DEA New Haven’s Tactical Diversion Squad targeting the manufacture and distribution of counterfeit oxycodone tablets containing fentanyl and counterfeit Adderall tablets containing methamphetamine, and the distribution of heroin and cocaine, in the New Haven area. The investigation revealed that Willis Taylor, with the assistance of Paul Paolella, Gordon Lauria, and others, coordinated the manufacture of the counterfeit pills, which Taylor distributed to Sean Pepe, and Taylor’s son, Peter Ablondi Taylor, for further distribution. Pepe supplied pills to Christopher Cahill and others. Willis Taylor also arranged counterfeit pill transactions between second and third parties, including Mark Apotrias, Thomas Joslin, and David King, and used Aquarius Gumbs as a source of supply for some of these transactions. Gumbs also distributed controlled substances to his own customers, including Richard Greatsinger. Marcos Pappas, Lisa Fausel and Julio Echevarria, also conspired to distribute controlled substances. During the investigation, investigators seized more than two kilograms of fentanyl, including thousands of counterfeit Oxycodone tablets; approximately two kilograms of methamphetamine, including thousands of counterfeit Adderall pills; three kilograms of cocaine and other drugs; four pill-press machines; one industrial mixer; five firearms; and more than $200,000 in cash. Thirteen of the defendants were arrested on federal criminal complaints last week. Pepe is currently in state custody. On April 4, 2023, the grand jury returned an indictment charging each defendant with conspiracy to possess with intent to distribute, and to distribute, controlled substances. If convicted of this offense, based on the type and quantity of controlled substances attributable to each defendant, Willis Taylor and Paolella face a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life; Pepe, Pappas, and Fausel face a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years; and the remaining defendants face a maximum term of imprisonment of 20 years. In addition, the indictment charges Willis Taylor, Gumbs, Pepe, Paolella, and Greatsinger with one or more counts related to the possession and distribution of controlled substances. The indictment also charges both Gumbs and Pepe with unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years, and with possession of a firearm in furtherance of a drug trafficking crime, an offense that carries a mandatory consecutive sentence of at least five years. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the DEA New Haven’s Tactical Diversion Squad, the FBI’s New Haven Safe Streets/Gang Task Force, Homeland Security Investigations (HSI), and the U.S. Marshals Service. The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Manchester, Glastonbury, West Haven, Hamden, Newington, and Bristol Police Departments. The FBI Task Force includes participants from the FBI, the Connecticut State Police, the Connecticut Department of Correction, and the New Haven, Milford, East Haven, West Haven, and Wallingford Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Sarah P. Karwan and Tara E. Levens, in coordination with the New Haven and Milford State’s Attorney’s Offices. This case is being prosecuted through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Charlotte Man Indicted For International Multi-Million Dollar Tech Support Fraud Scam

body_text: CHARLOTTE, N.C. – Nachiket Banwari, 34, of Charlotte, was indicted by a federal grand jury for conspiracy to commit mail fraud, wire fraud, and money laundering, for his involvement in an international multi-million dollar tech support fraud scam, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. The federal indictment was unsealed today, following Banwari’s initial appearance in federal court. Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement. According to allegations in the indictment, Banwari was part of a conspiracy with other individuals that carried out an international internet technical support fraud scam, through his management of Capstone Technologies LLC (Capstone), a company headquartered in Charlotte that claimed to provide computer-related services to its customers. Capstone allegedly conducted business using several different aliases, including Authenza Solutions LLC, MS-Squad Technologies, MS-Squad.com, MS Infotech, United Technologies, and Reventus Technologies. According to allegations in the indictment, fraudulent internet pop-up “ads” were a central part of the conspiracy’s tech support scam. It is alleged that the fraudulent pop-ups suddenly appeared on victims’ computers freezing their screens and containing misrepresentations designed to trick the victims into believing their computer needed technical support to fix a problem, prompting victims to contact Capstone at a number shown on the pop-ups. When victims called Capstone’s India-based call center for assistance, the indictment alleges that victims were tricked into purchasing unnecessary technical support services from Capstone. The indictment further alleges that the conspirators defrauded thousands of victims throughout the United States, some of whom were elderly, of more than $7 million. According to allegations in the indictment, Banwari agreed to obtain payment-processing services in his name on behalf of Capstone, in order to process victims’ payments to the conspirators, and laundered the proceeds domestically and internationally to bank accounts located in India. For his participation in the scheme, Banwari allegedly received three percent of the Capstone revenue. The indictment also contains a notice of forfeiture, which gives notice that the defendant must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $211,000, which the government contends constitutes the proceeds of the violations alleged in the charging document. Banwari remains in federal custody. The mail fraud and wire fraud conspiracy charge and the money laundering conspiracy charge each carry a maximum prison term of 20 years. The charges against Banwari are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law. The FBI conducted the investigation. Assistant U.S. Attorney Matthew Warren of the U.S. Attorney’s Office in Charlotte is prosecuting the case.


title: Career Offender Who Carjacked, Sexually Assaulted, and Stabbed Woman Sentenced to Over 24 Years in Prison

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. –David Earl Page, 54, of Maxton, North Carolina was sentenced yesterday to 293 months in prison for carjacking resulting in serious bodily injury after forcing a woman into a car at knifepoint and driving her to a remote location where he sexually assaulted her and then stabbed her when she attempted to escape. Page pled guilty on January 3, 2023. According to court documents and other information presented in court, on March 11, 2021, a Robeson County Sheriff’s Deputy was approached by a female who was suffering from multiple stab wounds. The victim advised that while she was working at the South of the Border shopping center in Dillon, South Carolina, she was approached on a smoke break by a black male, later identified as Page, who put a knife to her throat—forcing her into her own vehicle. Page then drove the vehicle into Rowland, North Carolina, where he tied her hands and feet with a sheet. They traveled down a series of roads before stopping in a rural area where the victim was forced out of her vehicle and sexually assaulted. When she attempted to escape, Page grabbed her by her hair, beat her, and stabbed her with a knife. He then forced her back into the vehicle and drove around to different convenience stores to purchase different items, which was captured on video surveillance. Page has a history of committing armed robberies and is a career offender. Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, Robeson County Sheriff’s Office, and Dillon County Sheriff’s Office investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-87-BO. ###


title: Second Defendant Pleads Guilty to Conspiracy to Commit Wire Fraud and Money Laundering

body_text: NEW ORLEANS – LANCE M. VALLO , age 38 and a resident of Gueydan, Louisiana, pleaded guilty today to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering before U.S. District Court Judge Jane Triche-Milazzo, announced U.S. Attorney Duane A. Evans. As according to court documents, VALLO conspired with RYAN MULLEN , DUANE DUFRENE , DILLON ARCENEAUX , GRANT MENARD , and ZEB SARTIN to use a number of shell Louisiana companies with no assets to defraud a merchant cash company based in Georgia. MULLEN and DUFRENE helped establish ARCENEAUX , VALLO , MENARD , and SARTIN as the owners of existing corporations. MULLEN and DUFRENE then created fake vendor accounts for the corporations, and MULLEN , with the aid of another person, created false bank records for the companies. Thereafter, VALLO used an alias to present himself as a broker for the companies he helped create. Through the aid of another broker, MULLEN supplied the victim merchant cash advance company with the fake vendor accounts and false bank records in order to obtain funding. The victim cash advance company approved the advances and began to electronically wire ARCENEAUX, VALLO, MENARD , and SARTIN millions of dollars in advances. ARCENEAUX, VALLO, MENARD , and SARTIN laundered a portion of the funds by paying MULLEN and DUFRENE percentages of the funds. ARCENEAUX , VALLO , MENARD , and SARTIN then closed their non-existent businesses before fully repaying the victim merchant cash advance company, resulting in overall losses of approximately $6.4 million. VALLO alone, was responsible for approximately $876,000 in losses to the victim. VALLO is set for sentencing on July 19, 2023 and faces a maximum sentence of five years on the wire fraud conspiracy, and a maximum sentence of up to twenty years on the money laundering conspiracy. After imprisonment, the defendant faces up to three years of supervised release, and up to a $250,000 fine on the wire fraud count, and up to three years of supervised release, and up to a $500,000 fine on the money laundering count. Each count also carries a mandatory special assessment fee of $100. U.S. Attorney Evans commended the special agents of the Federal Bureau of Investigation and IRS-Criminal Investigation for their handling of the matter. The case is being prosecuted by Assistant United States Attorneys Edward J. Rivera and Andre Lagarde of the Financial Crimes Unit.


title: Raleigh Man Sentenced to 15 Years in Prison for Sex Trafficking 14-Year Old

body_text: NEW BERN, N.C. – Kevin Harold Rudolph, 28, of Raleigh, was sentenced yesterday to 180 months in prison for sex trafficking of a minor. Rudolph and co-defendant Marcus Gambrell were charged in a four-count superseding indictment on April 7, 2020. The indictment charged both men with sex trafficking of a minor and using the internet to promote prostitution, Gambrell with manufacturing child pornography, and Rudolph with possession of a firearm by a felon. Rudolph pled guilty to the sex trafficking charge on March 7, 2022. According to court records and statements made during hearings, in December 2018, a Raleigh Police Department detective was conducting an online investigation when he came across an advertisement offering a minor for prostitution. Law enforcement identified the minor as a 14-year-old girl who left a temporary home six days earlier. The detective texted the phone number listed on the advertisement to set up prostitution sting date. He was directed to a room at a Motel 6 in Raleigh, where he located and rescued the victim. In the room, officers found condoms, an iPad, and a bookbag. The bookbag contained a firearm and paperwork in Rudolph’s name. On the iPad, officers found photos of the victim that had been used in the prostitution advertisements, as well as additional photos that showed the minor victim’s genitals. The hotel was registered to Marcus Gambrell. The victim explained to officers that after running away—in slippers and with no coat, despite it being late December—she had ended up at the Raleigh Inn in Raleigh. There, on Christmas Day, she had met and socialized with Gambrell and Rudolph. The two men invited her to relocate with them to a nearby Motel 6 the next day. Once at the Motel 6, Gambrell took photos of the victim with the iPad. The two men used those photos to post and maintain prostitution advertisements for the victim on the internet. Over the next two days, they took turns supervising the prostitution and updated each other over Facebook Messenger. The victim estimated that Rudolph and Gambrell arranged around 10 to 15 “dates” per day, and they kept all the money. She stated that on one occasion Gambrell had vaginal sex with her, as Rudolph recoded a video with his cell phone. Law enforcement, however, did not recover the video. After his arrest, Rudolph provided law enforcement with the same number that has been listed in the prostitution advertisements. Co-defendant Marcus Gambrell pled guilty on January 19, 2021, to manufacturing child pornography. On December 21, 2021, he was sentenced to a 210-month term of imprisonment. Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh Police Department and Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-0336-FL. ###


title: Five current and former police officers convicted in multi-million-dollar COVID-19 loan scheme

component: USAO - Georgia, Northern

body_text: NEWNAN, Ga. – Former Fulton County Sheriff’s Office deputy Katrina Lawson has been found guilty by a federal district court jury of conspiracy to commit wire fraud, wire fraud, bank fraud, mail fraud, and money laundering in connection with a wide-ranging Paycheck Protection Program and Economic Injury Disaster Loan program small business loan scheme. “The jury found Lawson guilty on all charges brought against her, adding to the previous convictions of 11 of her co-conspirators,” said U.S. Attorney Ryan K. Buchanan. “In a time of crisis when the federal government sought to save small businesses from the significant, negative impacts of COVID-19, Katrina Lawson and her co-conspirators stole funds intended for these vulnerable businesses.” “The verdict clearly illustrates that individuals who engage in fraudulent activities will be held accountable for their actions,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “An extensive investigation by Postal Inspectors revealed the defendant and her co-conspirators took advantage of COVID-19 funds that were designated to assist small businesses for their own financial gain.” According to U.S. Attorney Buchanan, the charges and other information presented in court: On August 11, 2020, agents from the U.S. Postal Inspection Service (USPIS) conducted a search at Alicia Quarterman’s residence in Fayetteville, Georgia related to an ongoing narcotics trafficking investigation. Inspectors seized Quarterman’s cell phone and a notebook during the search. In the phone and notebook, law enforcement discovered evidence of a Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program scheme masterminded by Lawson (Quarterman’s distant relative and best friend). Lawson’s cell phone was also seized later as a part of the investigation. The text messages found in Lawson’s and Quarterman’s cell phones revealed that Lawson had identified a vulnerability in the PPP and EIDL programs and exploited it. Because of Congress’s goal of getting CARES Act funding into the hands of small businesses as quickly as possible, both programs relied heavily on the honesty of the applicants seeking funds. As a result, Lawson and Quarterman recruited several other people, who did not actually own registered businesses, to provide them with their personal and banking information. Once Lawson ultimately obtained that information, she completed fraudulent applications and submitted them to the Small Business Administration and banks for forgivable small business loans and grants. Lawson was responsible for recruiting more than 200 individuals to participate in this PPP and EIDL fraud scheme. Three of the individuals she recruited were active sheriff’s deputies and one was a former U.S. Army military policeman. Lawson submitted PPP and EIDL applications seeking over $6 million in funds earmarked to save small businesses from the impacts of COVID-19. She and her co-conspirators ultimately stole more than $3 million. Lawson used a portion of these funds to purchase a $74,492 Mercedes Benz, a $13,500 Kawasaki motorcycle, $9000 worth of liposuction, and several other expensive items. Several of Lawson’s co-defendants were previously convicted as a part of this case on charges of conspiracy to commit wire fraud and theft of government funds, mail fraud, money laundering, or related offenses: Alicia Quarterman, 40, of Fayetteville, Georgia; Tranesha Quarterman, 35, of Atlanta, Georgia, a former U.S. Army military policeman; Nikia Wakefield, 44, of Rockville, Maryland; Darryl Washington, 68, of Atlanta, Georgia; Adarin Jones, a/k/a Adrian Jones, 44, of Atlanta, Georgia; Katie Quarterman, 30, of Atlanta, Georgia; Victor Montgomery, 45, of Washington, D.C.; India Middleton, 36, of Accokeek, Maryland, a former Arlington County Sheriff’s Office deputy; Jeffrey Moffett, 54, of Jonesboro, Georgia, a former Fulton County Sheriff’s Office deputy; and Stephanie R. Cooper, 50, of Decatur, Georgia, a current Fulton County Sheriff’s Office deputy. Sentencing for Katrina Lawson, 43, of Houston, Texas, is scheduled for July 6, 2023, at 10:00 a.m., before U.S. District Judge Timothy C. Batten, Sr. In determining the actual sentence, the Court will consider the U.S. Sentencing Guidelines, which are not binding but provide appropriate sentencing ranges for most offenders. This case is being investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Miguel R. Acosta, Alex Sistla, Radka Nations, and Chris Huber are prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Monmouth County Man Sentenced to 10 Years in Prison for Online Sexual Enticement of Minor

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Manalapan, New Jersey, man was sentenced on April 4, 2023, to 120 months in prison for using online chat applications to entice an adolescent to engage in prohibited sexual activity. Angelo N. Curato, 30, pleaded guilty by videoconference on July 18, 2022, before U.S. District Judge Brian Martinotti to a superseding information charging him with one count of online enticement of a minor.


title: Boston Man Pleads Guilty to Distributing Methamphetamine

component: USAO - Massachusetts

body_text: BOSTON – A Boston man pleaded guilty yesterday to methamphetamine distribution. Joshua Westbrook, 26, pleaded guilty to one count of distribution and possession with intent to distribute 50 grams or more of methamphetamine. U.S. District Court Judge Angel Kelley scheduled sentencing for Aug. 2, 2023. Westbrook was indicted by a federal grand jury in December 2021. In November 2021, Westbrook distributed over 360 grams of pure methamphetamine in Dorchester. An additional 500 grams of pure methamphetamine and a machete were also seized from Westbrook over the course of the investigation. The charge of distribution and possession with intent to distribute 50 grams or more of methamphetamine provides for a sentence of at least 10 years and up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Commissioner Carol Mici of the Massachusetts Department of Correction made the announcement today. Valuable assistance was provided by the United States Postal Service; Plymouth County and Norfolk County Sheriff’s Offices; Massachusetts State Police; and the Portland (Maine), Watertown, Waltham, Concord, Reading, Peabody and Hudson Police Departments. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Former Hospice Care Owner Convicted of Defrauding Medicare

component: USAO - Louisiana, Western

body_text: LAFAYETTE, La. – A federal jury has returned a guilty verdict against Kristal Glover-Wing , 50, of Broussard, Louisiana, for one count of conspiracy to commit health care fraud and three counts of health care fraud following a trial that lasted nearly four weeks, announced United States Attorney Brandon B. Brown. Dr. Gary M. Wiltz and Dr. Charles H. Louis were each acquitted on their charges in the indictment. Judge Robert R. Summerhays presided over the trial. Glover-Wing was the owner of Angel Care Hospice (“Angel Care”), a Louisiana corporation that purported to provide hospice services in Lafayette Parish and other parishes in the Western District of Louisiana. Through evidence presented at trial, jurors learned that from approximately 2009 through 2017, over 24 patients were placed on hospice by Angel Care without meeting the criteria required by Medicare. During the time period that the patients were on hospice and under the care and supervision of Angel Care, none of them had been diagnosed with a terminal illness. In fact, many of the patients themselves, who are still alive and thriving many years later, as well as family members of other patients, testified that they never knew that they had been placed on hospice. The testimony revealed that while on hospice care, many of the patients were living normal lives and although most of them did have medical conditions, none had been diagnosed as being terminally ill. The fraudulent claims submitted to Medicare and reimbursed to Angel Care resulted in a loss of approximately $1,539,161.10 to Medicare. “Krystal Glover-Wing defrauded the government and we thank the jury for holding her accountable. We will now move forward to her sentencing hearing,” stated U.S. Attorney Brandon B. Brown. “I thank the trial team and investigators for staying the course throughout years of investigating and a hard-fought trial. Although the doctors in this case were ultimately acquitted, we as prosecutors present the facts to a federal grand jury when we truly believe there has been a violation of federal law that we can prove beyond a reasonable doubt. Furthermore, if the grand jury decides to indict, we are not afraid to proceed to trial and give a federal trial jury the chance to ultimately decide someone’s guilt or innocence based on the evidence that we have. The verdict rendered in this case is evidence that the system can be just, fair and the trial jury has the ultimate prerogative to convict or acquit.” “Whenever Medicare providers are motivated by greed, our most vulnerable citizens, the elderly, are put at risk,” said Assistant Special Agent in Charge Jeff Richards of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG agents will continue to work closely with our law enforcement partners to investigate providers who loot the Medicare Trust Fund.” Glover-Wing faces a sentence of up to 20 years in prison on the conspiracy to commit health care fraud charge, up to 10 years in prison on the health care fraud charges, 3 years of supervised release, and a fine of up to $250,000. The case was investigated by the Department of Health and Human Services, Office of Inspector General, and Federal Bureau of Investigation, and prosecuted by Assistant U.S. Attorneys Kelly P. Uebinger, Danny Siefker, and Lauren L. Gardner. # # #