title: Florida Felon Admits Role in Multi-Million Dollar Health Care Kickback Scheme After Pleading Guilty to COVID-19 Fraud and Unlawfully Possessing Firearms

component: USAO - Florida, Southern

body_text: MIAMI – On Feb. 8, a Florida man admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, after previously pleading guilty to carrying out a COVID-19 fraud scheme and being a felon in possession of firearms and ammunition. Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty, before U.S. District Judge Raag Singhal in the Southern District of Florida, to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute (Case No. 24-cr-60004). According to documents filed in the health care fraud case and statements made in court, Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million. On Sept. 21, 2023, Memon pled guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal (Case No. 23-cr-80068). According to documents in the wire fraud case and statements made in court, Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. Moreover, at the time of Memon’s arrest he was a convicted felon and illegally possessed 12 firearms and ammunition. Memon is scheduled to be sentenced in the two cases on March 26, 2024. The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. The wire fraud charge is punishable by a maximum of 20 years in prison, the money laundering charge is punishable by a maximum of 10 years in prison, and the felon in possession charge is punishable by a maximum of 15 years in prison. The charges are also punishable by a fine. U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Attorney for the United States Vikas Khanna for the District of New Jersey (for the health care fraud matter); Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office; and Special Agent in Charge James E. Dennehy of the FBI, Newark Field Office, made the announcement. FBI West Palm Beach and Newark Field Offices investigated the cases. Invaluable assistance was provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); U.S. Department of Health and Human Services-Office of Inspector General; U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service; and U.S. Department of Veterans Affairs Office of Inspector General. Assistant U.S. Attorneys Robin W. Waugh for the Southern District of Florida and Matthew Specht for the District of New Jersey are prosecuting these cases. Assistant U.S. Attorney Joshua Pastor for the Southern District of Florida is handling asset forfeiture. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case numbers 23-cr-80068 and 24-cr-60004. ###


title: Convicted Felon Sentenced to a Total of 39 Months for Wire Fraud and Committing New Crimes While on Pretrial Release

component: USAO - Utah

body_text: SALT LAKE CITY – A U.S. District Court Judge sentenced Matthew Ambrose Baker, 49, of Spanish Fork, Utah, to one year imprisonment and three-years’ supervised release for crimes committed while on pretrial release for wire fraud. This sentence will run consecutively to a 27 month sentence previously imposed for the wire fraud, resulting a total sentence of 39 months’ incarceration. According to court documents, in 2020, Baker was serving a home-custodial sentence for a 2019 federal healthcare fraud conviction when Baker committed wire fraud by attempting to divert proceeds of a real estate transaction from a family member to himself. In December 2022, a federal jury found Baker guilty of two counts of wire fraud for that conduct. Baker was sentenced to 27 months’ imprisonment in July 2023 for the wire fraud and ordered to pay his family member $445,000 in restitution. A bench trial was held in November 2023 on counts related to crimes committed by Baker while on pretrial release in the real estate transaction wire fraud case. During the bench trial, Baker was found guilty of contempt and being a felon in possession of ammunition. The evidence at trial showed that, on September 23, 2020, Baker was placed on pretrial release in connection with the wire fraud case. As a condition of his release, Baker was ordered not to transfer substantial assets over $1500, unless approved by a United States Probation Officer. Baker repeatedly violated this condition from August 2021 through February 2022. In total, Baker transferred more than $1,000,000 in assets without obtaining approval from his supervision officer, and without notifying the supervision officer of the transfers. The evidence at trial further established that in March 2022, U.S. Probation Officers recovered two types of ammunition at Baker’s home. The first box contained 40 rounds of .38 special ammunition and was found in a dresser with men’s underwear and socks. The second box contained approximately 37 rounds of 9mm ammunition and was found in a duffel bag with more than $80,000 in cash. Baker was the only adult male who lived in the home. U.S. Attorney, Trina A. Higgins for the District of Utah and the FBI made the announcement. “Mr. Baker’s decision to engage in new fraud while serving a custodial sentence for a 2019 fraud case was brazen,” said U.S. Attorney Trina A. Higgins for the District of Utah. “His subsequent decision to repeatedly violate his conditions of release and commit new crimes while awaiting trial in the fraud case demonstrates a complete lack of respect for our laws and the court. Repeated maleficence will not be tolerated.” The case was investigated by the FBI Salt Lake City Field Office. Assistant United States Attorneys Jennifer K. Muyskens and Stewart M. Young of the U.S. Attorney’s Office for the District of Utah prosecuted the case.


title: Federal Inmate Convicted of Assault with Intent to Commit Murder and Assault Resulting in Serious Bodily Injury

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Lorenzo Scott, age 50, formerly of Rayville, Louisiana, and an inmate at the United States Penitentiary (USP) at Lewisburg, was convicted of assault with intent to commit murder and assault resulting in serious bodily injury following a three-day jury trial before Chief Judge Matthew W. Brann in Williamsport. According to United States Attorney Gerard M. Karam, Scott was an inmate at USP Lewisburg on March 25, 2015, when he physically assaulted his cellmate and repeatedly struck, stomped, and inflicted blunt force trauma to the cellmate’s head resulting in severe, life- threatening injuries. A corrections officer at USP Lewisburg, who was conducting rounds at 4:00 a.m., observed Scott stomping on the cellmate’s head as the cellmate lay on the floor of the cell in a puddle of blood. The cellmate died approximately two years and two months after the assault from the injuries inflicted by Scott. The indictment in this case originally charged Lorenzo Scott with murder. However, the charge of murder was withdrawn by the government due to existing federal caselaw regarding the “year-and-a-day-rule,” which bars a prosecution for murder in cases in which the victim dies more than a year and a day after the infliction of the wound causing the victim’s death. During the trial, Scott testified and admitted that, without provocation, he assaulted and intended to kill his victim. A bill has been introduced in Congress which would abolish the year-and-a-day-rule in federal murder cases. The case was investigated by the FBI-Williamsport Division and the Bureau of Prisons (BOP) Special Investigations Section (SIS). Assistant United States Attorney Robert J. O’Hara and Kyle A. Moreno prosecuted the case. The charges of assault with intent to commit murder and assault resulting in serious bodily injury each carry a maximum sentence under federal law of up to 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant. # # #


title: Nurse Practitioner Arrested for Unlawful Drug Distribution

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Christopher Viagrande, age 41, of Latham, New York, was arrested earlier this week and charged with distributing controlled substances outside the course of professional practice and for no legitimate medical purpose. United States Attorney Carla B. Freedman and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. A criminal complaint charges Viagrande, a psychiatric nurse practitioner, with prescribing amphetamine (a Schedule II controlled substance) on 40 occasions to someone who was never his patient, from May 2021 to December 2023. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. Viagrande was arrested on Tuesday and ordered released on Thursday with conditions, including a prohibition on his prescribing controlled substances. If convicted on the charge in the complaint, Viagrande faces up to 20 years in prison and a fine of up to $1 million, as well as up to 3 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Anyone wishing to report information about Viagrande or his Latham-based practice, Crossroads Psychiatry NP, may contact the DEA Albany District Office at (518) 782-2000. The DEA’s Tactical Diversion Squad (TDS) is investigating this case. TDS is comprised of DEA Special Agents and Diversion Investigators, as well as Investigators from the New York State Department of Health, Bureau of Narcotic Enforcement. Assistant U.S. Attorney Michael Barnett is investigating this case.


title: Samson, Alabama Pharmacy Liable for $110,000 Penalty for Recordkeeping Violations of the Controlled Substances Act

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama - Today, Acting United States Attorney Jonathan S. Ross announced that King Drug Co., Inc. (King Drug), a pharmacy previously doing business in Samson, Alabama, along with owner Traci Revels McCoy, is liable to the United States for $110,000 in civil monetary penalties after failing to comply with recordkeeping requirements of the Controlled Substances Act (CSA). The CSA aims to protect the public’s health and safety from highly addictive or dangerous controlled substances that are diverted into the illicit market, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes. To prevent diversion, the CSA regulates individuals and companies that manufacture, distribute, and dispense controlled substances. Entities dispensing controlled substances are required to have a valid Drug Enforcement Administration (DEA) registration number and must comply with various recordkeeping requirements. According to the consent judgment and other court documents, King Drug was a registered retail pharmacy authorized to purchase and dispense Schedules II-V controlled substances. An inspection found that, between January 16, 2021, and December 14, 2021, King Drug and Traci McCoy failed to keep complete, timely, and accurate inventories and records of the receipt and dispensing of Schedule II controlled substances. These failures resulted in thousands of doses of hydrocodone, oxycodone, morphine, and methadone going unaccounted for. Based on those findings, the United States filed a lawsuit in the United States District Court for the Middle District of Alabama alleging numerous violations under the provisions of the CSA. King Drug has since ceased operation as a retail pharmacy. The court issued the consent judgment on February 2, 2024. “Pharmacies serve a vital role in preventing the diversion and the resulting abuse of dangerous prescription drugs,” said Acting United States Attorney Ross. “The requirement to keep complete and accurate records is crucial for accountability and transparency. My office will use all available enforcement tools to ensure that controlled substances are properly handled and used for legitimate, medical purposes.” “Prescription medications, when misused, can pose a grave threat to public health,” said Acting Special Agent in Charge Steven L. Hofer of the Drug Enforcement Administration. “That’s why meticulous recordkeeping by pharmacies is an essential line of defense against the opioid crisis. Every dose, every pill meticulously accounted for protects communities and saves lives.” The DEA’s Tactical Diversion Squad, Diversion Control Division investigated this case. The matter was handled by Assistant United States Attorney Stephen D. Wadsworth and Investigative Analyst Rita E. Richard of the Affirmative Civil Enforcement Unit of the United States Attorney’s Office for the Middle District of Alabama.


title: Johnstown Man Sentenced to Seven Years in Prison for Cocaine and Crack-Cocaine Violations

component: USAO - Pennsylvania, Western

body_text: JOHNSTOWN, Pa. – On February 8, 2024, a resident of Johnstown, Pennsylvania, was sentenced in federal court to 84 months in prison followed by four years of supervised release on his conviction of conspiracy to distribute and possession with intent to distribute quantities of cocaine and crack-cocaine, United States Attorney Eric G. Olshan announced today. United States Senior District Judge Kim R. Gibson imposed the sentence on Perry King, 48. According to information presented to the Court, from in and around May 2021 to June 2021, in the Western District of Pennsylvania, King conspired to distribute a quantity of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as “crack,” and a quantity of a mixture and substance containing a detectable amount of cocaine. King also possessed with the intent to distribute a quantity of crack in and around both October 2019 and January 2020, totaling 28 grams or more on the latter occasion. King was intercepted on a federal wiretap obtaining quantities of cocaine and crack-cocaine that he distributed to others. Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government. United States Attorney Olshan commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of King. Additional agencies participating in this investigation included the Bureau of Alcohol, Tobacco, Firearms and Explosives, Internal Revenue Service – Criminal Investigation, United States Postal Inspection Service, Pennsylvania Office of Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Convicted Felon from Pittsburgh Pleads Guilty to Drug and Firearms Charges

body_text: PITTSBURGH, Pa. – On February 8, 2024, a resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to drug and firearm violations, United States Attorney Eric G. Olshan announced today. Allen Gregory Edmonds, 35, pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and one count of possession of a firearm and ammunition by a convicted felon before United States Senior District Judge Nora Barry Fischer. In connection with the guilty plea, the Court was advised that, on December 19, 2023, law enforcement executed federal search warrants upon Edmonds, his vehicle, and properties associated with him. Within the living room of his Pittsburgh residence, investigators found a backpack containing approximately two kilograms of cocaine, a Schedule II controlled substance. The closet within Edmonds’ bedroom contained a loaded handgun, a search of the serial number of which revealed that it had been reported stolen. At the time Edmonds possessed the firearm and ammunition, he had been convicted in the Court of Common Pleas in Allegheny County of both a felony drug trafficking offense and a felony firearm offense. Federal law prohibits possession of a firearm or ammunition by a convicted felon. Judge Fischer scheduled sentencing for May 7, 2024. The maximum total sentence for the drug charge is not less than five years and up to 40 years in prison, a fine of up to $5 million, or both. The maximum total sentence for the firearm charge is up to 15 years in prison, up to a $250,000 fine, or both. Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and Pennsylvania State Police conducted the investigation that led to the prosecution of Edmonds.


title: Former Attorney Sentenced for Defrauding Personal  Protective Equipment Purchaser

component: Federal Bureau of Investigation (FBI)

body_text: NEW ORLEANS – FRANK LABRUZZO was sentenced on February 6, 2024, for conspiring with co-defendant, Cynthia Caronna, and a United Kingdom resident, for defrauding a business that sought to purchase personal protective equipment (PPE) during the COVID-19 pandemic, announced U.S. Attorney Duane A. Evans. U.S. District Judge Greg G. Guidry sentenced LABRUZZO to five years’ probation and $1,012,500 in restitution. Caronna and the UK resident formed a business to sell PPE, and selected LABRUZZO as the business’s escrow agent. LABRUZZO (who was then an attorney employed as an investigator with the Louisiana Attorney General’s Office) was presented to would-be buyers of PPE as a trustworthy escrow agent to safeguard the buyer’s purchase funds in an escrow account until the PPE was satisfactorily delivered. According to court records, the conspirators agreed that LABRUZZO would disburse the would-be buyers’ funds despite their neither receiving the PPE nor consenting to the disbursements. The conspirators also agreed that each would receive portions of the would-be buyers’ funds without their knowledge or consent. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit was in charge of the prosecution.


title: Clay County Man Pleads Guilty To Using The Internet To Distribute Videos Of Young Children Being Sexually Abused

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Carl Stephen Smith, Jr. (33, Green Cove Springs) has pleaded guilty to distributing child sexual abuse materials using the internet. Smith faces a minimum mandatory penalty of 5 years, up to 20 years, in federal prison. Smith was arrested on January 31, 2023, and has been detained since that time. According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a CyberTipline report in July 2022 from an online social media application (app) that indicated three child sexual abuse videos had been uploaded on the app by a user named “daddysir142.” The internet protocol (IP) address used to upload these materials was traced to an internet service provider in Green Cove Springs. An investigation by the Clay County Sheriff’s Office revealed numerous other CyberTipline reports submitted by online social media apps for IP addresses that were linked to Smith and his residence in Green Cove Springs. On January 31, 2023, agents from Homeland Security Investigations (HSI), together with other law enforcement personnel, executed a federal search warrant at Smith’s residence. During an interview with law enforcement, Smith admitted that he communicated with minors on social media and that he used social media apps to search for child sexual abuse materials. HSI agents seized a cellphone belonging to Smith. A forensic review of this device revealed that it contained at least 22 videos and 37 photos depicting minors engaging in sexually explicit conduct. The device contained online conversations between Smith and other users in which Smith distributed materials depicting the sexual abuse of young children. This case was investigated by the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, the Putnam County Sheriff’s Office, the Florida Department of Law Enforcement, and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney D. Rodney Brown. It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: RICO Conspirators Responsible For Nationwide Computer Intrusions And Tax Fraud Sentenced To Federal Prison

body_text: Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Andi Junior Jacques and Dickenson Elan to federal prison terms for their roles in a RICO conspiracy involving cyber intrusions and millions of dollars of tax fraud. Six co-defendants were previously sentenced for their roles in the offense and one will be sentenced at a later date for his involvement in the conspiracy. See chart below for details. Defendant (Age, Residence) Status Charge(s) Sentence Imposed Louisaint Jolteus (37, West Palm Beach) Pleaded guilty July 6, 2022 RICO conspiracy 9 years, 2 months in prison; $2,928,841 in restitution Louis Noel Michel (29, Hollywood) Pleaded guilty July 25, 2023 RICO conspiracy and aggravated identity theft 6 years, 8 months in prison; $1,941,533 in restitution Andi Jacques (42, Greenacres) Pleaded guilty August 23, 2023 RICO conspiracy and aggravated identity theft 16 years in prison; $4,291,272 in restitution Jeff Jordan Propht-Francisque (29, Pompano Beach) Pleaded guilty August 29, 2023 RICO conspiracy 4 years in prison; $2,574,235 in restitution Michael Jean Poix (33, West Palm Beach) Pleaded guilty August 29, 2023 RICO conspiracy and aggravated identity theft 10 years, 10 months in prison; $130,771 in restitution Alain Jean-Louis (32, Miami) Pleaded guilty August 31, 2023 RICO conspiracy and aggravated identity theft 8 years, 6 months in prison; $2,554,907 in restitution Monika Shauntel Jenkins (34, Hollywood) Pleaded guilty September 18, 2023 RICO conspiracy and aggravated identity theft 7 years, 3 months in prison; $3,384,913 in restitution Vladimyr Cherelus (34, Lauderdale Lakes) Pleaded guilty September 18, 2023 RICO conspiracy Sentencing hearing is scheduled for February 29, 2024 Dickenson Elan (40, Clearwater) Found guilty (jury trial) November 6, 2023 RICO conspiracy 11 years, 3 months in prison; $4,291,272 in restitution According to court documents, from 2015 through 2019, the defendants and numerous other conspirators—including a now-deceased conspirator who is referenced in the indictment as RICH4EVER4430—banded together to engage in a sophisticated cybercrime and tax fraud scheme. RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, and Cherelus used the dark web to purchase server credentials for the computer servers of Certified Public Accounting (CPA) and tax preparation firms across the country. They used those server credentials to remotely and covertly commit computer intrusions and exfiltrate the tax returns of thousands of taxpayers who were clients of those CPA and tax preparation firms. Jacques, Elan, Jean-Poix, and Jolteus were involved with creating and operating fraudulent tax businesses to file false tax returns in the names of thousands of victims. They also registered preparer tax identification numbers with the Internal Revenue Service (IRS) using the names and information of identity theft victims to make it appear those victims were the individuals who were filing false returns in bulk. RICH4EVER4430, Jean-Louis, Jenkins, Michel, Propht-Francisque, Cherelus, and other conspirators then partnered with Jacques, Elan, Poix, Jolteus, and others to form an enterprise through which they filed thousands of false tax returns in the names of more than 9,000 identity theft victims. The conspirators directed the resulting tax refunds to debit cards and bank accounts they controlled. To make the businesses appear more legitimate, members of the enterprise opened bank accounts in the names of these fraudulent tax businesses to receive fake “tax preparer fees.” As the RICO conspiracy evolved, members of the enterprise “hijacked” the IRS-issued identification numbers of CPA and tax preparation firms and used those identification numbers to file scores of additional false tax returns. Members of the enterprise filed false self-prepared tax returns using stolen identities as well. Altogether, the enterprise claimed more than $45 million in false tax refunds over approximately four years. The actual loss to the IRS and the United States was estimated to be more than $7 million. “The recent sentencings of these co-conspirators, highlights the unwavering dedication of IRS-CI and our law enforcement partners in combating cybercrime. Our determination remains resolute in pursuing individuals who exploit technology as a means to commit unlawful activities,” said Tara K. Reed IRS-CI Acting Special Agent in Charge. “These sentences serve as a stark warning to potential wrongdoers that there is nowhere to hide, and IRS-CI will work tirelessly to bring you and your misdeeds to light.” “This was a milestone investigation for the FBI because of the RICO cybercrime conspiracy,” said FBI Tampa Division Special Agent in Charge David Walker. “It underscores the evolution of the cyber threat and how criminals are learning cyber tradecraft in an attempt to advance their criminal enterprises. However, this case also demonstrates how the FBI and our law enforcement partners are evolving our approach to investigations and prosecutions to continue to successfully disrupt cyber gangs.” This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation in Orlando, with assistance from the FBI Miami and IRS-CI Minnesota. It was prosecuted by Assistant United States Attorneys Emily C. L. Chang, John M. Gardella, William S. Hamilton, Dana E. Hill, and Special Assistant United States Attorney Matthew Del Mastro.


title: New Orleans Man Indicted for Federal Drug and Machinegun Offenses

body_text: NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that RENARD SANTIAGO , age 18, of New Orleans, was indicted on February 8, 2024, for violations of the Federal Gun Control Act and Federal Controlled Substances Act. SANTIAGO is charged in Count 1 of the indictment with conspiracy to distribute and possess with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(D), and 846. He is charged in Count 2 with possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Count 3 with possessing a machinegun in furtherance of a drug trafficking offense, in violation of Title 18, United States Code, Section 924(c)(1)(B)(ii). He is charged in Count 4 with possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). As to Counts 1 and 2, SANTIAGO faces up to 5 years in prison, up to a $250,000 fine, and at least two years of supervised release. If convicted of Count 3, he faces a minimum of 30 years in prison up to a maximum sentence of life, which must run consecutive to any other sentence, up to a $250,000.00 fine, and up to five years of supervised release. If convicted of Count 4, he faces up to 10 years in prison, up to a $10,000 fine, and up to three years of supervised release. Each count also carries a mandatory special assessment fee of $100. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.


title: Informational: Federal Court arraignments

component: USAO - Montana

body_text: The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt: Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Feb. 9 was: Jeffrey Francis Wood, 54, of Livingston, on charges of possession of an unregistered silencer and possession of a firearm with an obliterated serial number. If convicted of the most serious crime, Wood faces a maximum of 10 years in prison, a $10,000 fine and three years of supervised release. Wood was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Park County Sheriff’s Office conducted the investigation. PACER case reference. 23-124. Appearing on Feb. 8 was: Jason Edwin Dynes, 37, of Red Lodge, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Dynes faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Dynes was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Montana Probation and Parole conducted the investigation. PACER case reference. 24-8. Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Feb. 6 was: Jarred Lane Saunders, 26, of Reed Point, on charges of possession with intent to distribute fentanyl, prohibited person in possession of firearms and ammunition and possession of stolen firearms. If convicted of the most serious crime, Saunders faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Saunders was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department, Butte-Silver Bow Law Enforcement, Montana Highway Patrol, Montana Division of Criminal Investigation and Helena Police Department conducted the investigation. PACER case reference. 23-17. Joshua Nzeyiman, 23, of Helena, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Nzeyiman faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Nzeyiman was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Highway Patrol and Montana Probation and Parole conducted the investigation. PACER case reference. 24-1. Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto pleading not guilty on Feb. 6 was: Emily Ann Svoboda, 30, of Missoula, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of controlled substances. If convicted of the most serious crime, Svoboda faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years to life of supervised release. Svoboda was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and the Missoula High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 24-8. Keith Andre Green, 49, of Missoula, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking. If convicted of the most serious crime, Green faces a mandatory minimum of 10 years to life in prison, a $10 million fine and five years to life of supervised release on the drug charges and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearms charge. Green was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Missoula Police Department and the Missoula High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 24-8. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


title: Duo Indicted for Spree of Eleven Armed Robberies in Two Weeks Across Indianapolis and Speedway

body_text: INDIANAPOLIS- A federal grand jury has returned an indictment charging Donta Allen, 26, and Lance McGee, 32, of Indianapolis, each with one count of conspiracy to commit robbery, 11 counts of interference with commerce by robbery, 11 counts of brandishing a firearm during a crime of violence, and one count each of possession of firearms by a convicted felon. According to the indictment, from March 25, 2022, through April 8, 2022, Allen and McGee worked together to rob at least eleven different stores in Indianapolis and Speedway, Indiana. Allegedly, Allen disguised his appearance with a ski mask and attempted to cover his tattoos with make-up, entered the store, pointed a firearm at the cashier and demanded cash. In each alleged robbery, McGee served as the getaway driver in a Chevy Malibu and received a portion of the proceeds. The series of robberies took place on the following dates and locations: Date Victim Business March 25, 2022 Disc Replay; 8210 Rockville Road, Indianapolis March 25, 2022 GameStop; 5816 Crawfordsville Road, Speedway March 27, 2022 GameStop; 3269 West 86 th Street, Indianapolis March 27, 2022 AutoZone; 4606 East County Line Road, Indianapolis April 2, 2022 GameStop; 4525 Lafayette Road, Indianapolis April 2, 2022 AutoZone; 7455 Michigan Road, Indianapolis April 3, 2022 Disc Replay; 9739 East Washington Street, Indianapolis April 5, 2022 Disc Replay; 7317 US 31 South, Indianapolis April 5, 2022 AutoZone; 8525 Southeastern Avenue, Indianapolis April 5, 2022 AutoZone; 6055 East 82 nd Street, Indianapolis April 8, 2022 GameStop; 6905 South Emerson Avenue, Indianapolis At the time of the alleged offenses, both defendants allegedly had previous felony convictions, prohibiting them from ever legally possessing a firearm. The FBI, IMPD, and Speedway Police Department investigated this case. If convicted, each defendant could face up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Zachary A. Myers thanked Assistant U.S. Attorney Pamela S. Domash, who is prosecuting this case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Granada Hills Man Sentenced to 17½ Years in Federal Prison for COVID Jobless Benefits Scam and for Stealing Title to Dozens of Cars

component: USAO - California, Central

body_text: LOS ANGELES – A San Fernando Valley man was sentenced today to 210 months in federal prison for using stolen identities to fraudulently obtain more than $1,568,000 in COVID-19 pandemic-related unemployment benefits, and for stealing title to dozens of cars by presenting forged documents to the California Department of Motor Vehicles (DMV). Eduard Gasparyan, 38, a.k.a. “Rudy Pineda” and “Papin Galstyan,” of Granada Hills, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to pay $2,232,767 in restitution. Gasparyan pleaded guilty in February 2023 to one count of conspiracy to commit wire fraud. From at least 2020 to September 2022, Gasparyan and his then-fiancée, Angela Karchyan, 39, of Granada Hills, stole the identities of victims and used them to apply for unemployment insurance benefits from the California Employment Development Department (EDD), which administers the state’s unemployment insurance program. As the COVID-19 pandemic worsened in 2020, Congress implemented Pandemic Unemployment Assistance (PUA) provisions to expand access to unemployment benefits to self-employed workers, independent contractors, and others who would not otherwise be eligible for them. After the bogus unemployment insurance benefits applications were approved, Gasparyan and Karchyan used debit cards containing the fraudulently obtained benefits to withdraw cash at ATMs. For example, on August 23, 2021, Gasparyan was filmed via surveillance camera at a bank ATM withdrawing $4,500 from nine debit cards within a 7-minute span. Three of the debit cards were issued in Gasparyan’s name while the other six debit cards were in the names of other individuals, court documents state. From February 2020 to August 2022, EDD paid out approximately $544,089 in fraudulently obtained jobless benefits on at least 32 claims using the same address in Van Nuys that Gasparyan used as a mailing address, according to court documents. During that same time, EDD paid out approximately $307,012 in jobless benefits on at least 16 claims to a Granada Hills address linked to Gasparyan. Gasparyan and Karchyan purchased vehicles using their own names as well as the names of identity theft victims but provided the sellers with worthless checks or bank account numbers to purportedly pay for the vehicles. Gasparyan and his co-conspirators also used stolen identities to rent vehicles and then caused the DMV to remove the true owners – rental car companies – from the registration for those vehicles by using forged documents. “The primary victims of [Gasparyan’s] conspiracy are the taxpayers, whose efforts to ameliorate the suffering of those who lost their jobs during the COVID pandemic [Gasparyan] took for himself, and the owners of the automobiles he stole,” prosecutors argued in a sentencing memorandum. “Of course, many individual victims of [Gasparyan’s] identity theft also suffered the anxiety of destroyed credit ratings, and the tremendous effort necessary to prove to lenders and landlords that they are not deadbeats, but rather victims of [Gasparyan’s] scheme.” Karchyan pleaded guilty in February 2023 to one count of conspiracy to commit wire fraud. She is serving a 41-month prison sentence and was ordered to pay $2,232,767 in restitution. The United States Department of Labor – Office of Inspector General, California Employment Development Department – Criminal Investigations, and the Orange County Auto Theft Task Force investigated this matter. Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Four Members of Bank Fraud Ring Sentenced

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – Four members of a multi-year bank fraud conspiracy, including a former bank teller who stole customer information, have been sentenced for fraudulently obtaining over $650,000 using the stolen identities of at least 25 victims. According to court documents, Brianna Mills, 28, of Loganville, Georgia, abused her position as a bank teller to steal the personal identifying information (PII) of bank customers. Mills passed the information to her then-boyfriend, Stanley Desirade, 36, of Lanham, Maryland. Desirade used that PII to order fake identification documents from Desmond Nkwenya, 37, of Brookhaven, Georgia. These fake identification documents, which Nkwenya made according to Desirade’s specifications, usually included a victim’s PII but the face of a co-conspirator. Once Nkwenya sent the fake identification documents to Desirade, Desirade provided them to Terrell Hale, 33, of Rockville, Maryland. At times, Hale supervised other co-conspirators as they went into the bank, impersonated the identity theft victim, and withdrew money from the victim’s account. During the conspiracy, the conspirators stole the PII of at least 25 customers and used that information to create at least 100 fake identification documents. Using these fake identification documents, the conspirators successfully stole approximately $660,082, and they attempted to steal an additional $1,008,134. Desirade and Mills pleaded guilty to conspiracy to commit identity fraud. Desirade was sentenced on September 29, 2023, to six years in prison, and Mills was sentenced on August 25, 2023, to 18 months in prison. Hale and Nkwenya pleaded guilty to conspiracy to commit bank fraud. Hale was sentenced on July 21, 2023, to four years in prison, and Nkwenya was sentenced today to 30 months in prison. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Damon E. Wood, Inspector in Charge for the U.S. Postal Inspection Service – Washington Division; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Christopher Hood prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:23-cr-40 and 1:23-cr-60.


title: International cybercrime malware service dismantled by federal authorities: key malware sales and support actors in Malta and Nigeria charged in federal indictments

component: USAO - Georgia, Northern

body_text: ATLANTA – As part of an international law enforcement effort, federal authorities seized internet domains that were used to sell computer malware used by cybercriminals to secretly access and steal data from victims’ computers. Federal authorities in Atlanta and Boston also unsealed indictments charging individuals in Malta and Nigeria, respectively, for their alleged involvement in selling the malware and supporting cybercriminals seeking to use the malware for malicious purposes. “Daniel Meli will no longer escape accountability for his actions selling malware,” said U.S. Attorney Ryan K. Buchanan. “This alleged cybercriminal facilitated the takeover and infection of computers worldwide. Our office was proud to partner with our federal and international counterparts to find Meli and bring him to justice. We will continue to diligently investigate and prosecute cybercrime in the Northern District of Georgia, and in all parts of the globe where our district is impacted.” “Daniel Meli not only profited off this malicious malware but took the extra step to train others on how to use it.” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Cybercriminals may believe they are beyond the reach of the FBI, but this case proves anyone who helps or profits from criminal cyber activity will be brought to justice, no matter where they are located. Our goal is to protect victims and safeguard our country from these dangerous actors.” According to U.S. Attorney Buchanan, the charges and other information presented in court: Federal authorities in Boston seized www.warzone.ws and three related domains, which together offered for sale the Warzone RAT malware – a sophisticated remote access trojan (RAT) capable of enabling cybercriminals to surreptitiously connect to victims’ computers for malicious purposes. According to the court documents authorizing the seizures, the Warzone RAT provided cybercriminals the ability to browse victim file systems, take screenshots, record keystrokes, steal victim usernames and passwords, and watch victims through their web cameras, all without the victims’ knowledge or permission. Investigations by the FBI in Boston and Atlanta also led to two indictments against individuals involved in selling and supporting the Warzone RAT and other malware. Daniel Meli, 27, of Zabbar, Malta, was arrested on Feb. 7 at the request of the United States, following a coordinated operation by the Malta Police Force and the Office of the Attorney General of Malta, with the support of the FBI and Justice Department. Meli made his initial appearance before a Magistrate Judge in Valletta, Malta. Meli was indicted by a federal grand jury in the Northern District of Georgia on Dec. 12, 2023, with four offenses, including causing unauthorized damage to protected computers, illegally selling and advertising an electronic interception device, and participating in a conspiracy to commit several computer intrusion offenses. According to the charging documents, since at least 2012, Meli offered malware products and services for sale to cybercriminals on online computer-hacking forums. Specifically, Meli allegedly assisted cybercriminals seeking to use RATs for malicious purposes and offered teaching tools for sale, including an eBook. Meli also allegedly sold both the Warzone RAT and, before that, malware known as the Pegasus RAT, which he sold through an online criminal organization called Skynet-Corporation. He also provided online customer support to purchasers of both RATs. The Northern District of Georgia is seeking Meli’s extradition to the United States. Separately, Prince Onyeoziri Odinakachi, 31, of Nigeria, was indicted by a federal grand jury in the District of Massachusetts on Jan. 30 with conspiracy to commit multiple computer intrusion offenses, including to obtain authorized access to protected computers to obtain information and causing unauthorized damage to protected computers. According to the charging documents, between June 2019 and no earlier than March 2023, Odinakachi provided online customer support to individuals who purchased and used the Warzone RAT malware. Law enforcement officers of the Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission arrested Odinakachi on Feb. 7. The disruption of the Warzone RAT infrastructure was the product of a robust international law enforcement effort led by FBI special agents in Boston and Atlanta and coordinated with international partners in large part through Europol. According to court documents, in addition to discovering instances of the Warzone RAT being used to attack victim computers in Massachusetts, the FBI covertly purchased and analyzed the Warzone RAT malware, confirming its multiple malicious functions. Separately, law enforcement partners in Canada, Croatia, Finland, Germany, the Netherlands, and Romania provided valuable assistance securing the servers hosting the Warzone RAT infrastructure. The charges of conspiracy, obtaining authorized access to protected computers to obtain information, illegally selling an interception device, and illegally advertising an interception device each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of causing unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Assistant U.S. Attorneys Bethany L. Rupert and Michael Herskowitz for the Northern District of Georgia are handling the criminal prosecution of Meli. Assistant U.S. Attorneys James R. Drabick and Carol E. Head for the District of Massachusetts obtained the seizure warrants and Drabick is handling the criminal prosecution of Odinakachi. The Justice Department’s Office of International Affairs provided substantial assistance during the investigation. Federal authorities also wish to acknowledge the cooperation and assistance of the FBI Boston and Atlanta Field Offices, Malta Police Force; Office of the Attorney General of Malta; Malta Ministry for Justice; Australian Federal Police; Croatian Ministry of the Interior Criminal Police Directorate; Dutch National Police; Europol European Cybercrime Center; Finland’s National Bureau of Investigation; State Police Force of Saxony, Germany; Japan Ministry of Justice; Port Harcourt Zonal Command of Nigeria's Economic and Financial Crimes Commission (EFCC); Romanian National Police; and Royal Canadian Mounted Police for their valuable assistance. Anyone who is a victim of a Warzone RAT computer intrusion is urged to report it to the FBI at https://wzvictims.ic3.gov . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 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: International Cybercrime Malware Service Dismantled by Federal Authorities: Key Malware Sales and Support Actors in Malta and Nigeria Charged in Federal Indictments

component: Criminal Division

body_text: The Justice Department announced today that, as part of an international law enforcement effort, federal authorities in Boston seized internet domains that were used to sell computer malware used by cybercriminals to secretly access and steal data from victims’ computers. Federal authorities in Atlanta and Boston also unsealed indictments charging individuals in Malta and Nigeria, respectively, for their alleged involvement in selling the malware and supporting cybercriminals seeking to use the malware for malicious purposes. Federal authorities in Boston seized www.warzone.ws and three related domains, which together offered for sale the Warzone RAT malware — a sophisticated remote access trojan (RAT) capable of enabling cybercriminals to surreptitiously connect to victims’ computers for malicious purposes. According to court documents authorizing the seizures, the Warzone RAT provided cybercriminals the ability to browse victim file systems, take screenshots, record keystrokes, steal victim usernames and passwords, and watch victims through their web cameras, all without the victims’ knowledge or permission. Investigations by the FBI Boston and Atlanta Field Offices also led to two indictments against individuals involved in selling and supporting the Warzone RAT and other malware. Daniel Meli, 27, of Zabbar, Malta, was arrested on Feb. 7 at the request of the United States, following a coordinated operation by the Malta Police Force and the Office of the Attorney General of Malta, with the support of the FBI and Justice Department. Meli made his initial appearance before a Magistrate Judge in Valletta, Malta. Meli was indicted by a federal grand jury in the Northern District of Georgia on Dec. 12, 2023, for four offenses, including causing unauthorized damage to protected computers, illegally selling and advertising an electronic interception device, and participating in a conspiracy to commit several computer intrusion offenses. According to charging documents, since at least 2012, Meli offered malware products and services for sale to cybercriminals through online computer-hacking forums. Specifically, Meli allegedly assisted cybercriminals seeking to use RATs for malicious purposes and offered teaching tools for sale, including an eBook. Meli also allegedly sold both the Warzone RAT and, before that, malware known as the Pegasus RAT, which he sold through an online criminal organization called Skynet-Corporation. He also provided online customer support to purchasers of both RATs. The Northern District of Georgia is seeking Meli’s extradition to the United States. Separately, Prince Onyeoziri Odinakachi, 31, of Nigeria, was indicted by a federal grand jury in the District of Massachusetts on Jan. 30 for conspiracy to commit multiple computer intrusion offenses, including obtaining authorized access to protected computers to obtain information and causing unauthorized damage to protected computers. According to charging documents, between June 2019 and no earlier than March 2023, Odinakachi provided online customer support to individuals who purchased and used the Warzone RAT malware. Law enforcement officers of the Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission arrested Odinakachi on Feb. 7. The disruption of the Warzone RAT infrastructure was the result of an international law enforcement effort led by FBI special agents in Boston and Atlanta and coordinated with international partners in large part through Europol. According to court documents, in addition to discovering instances of the Warzone RAT being used to attack victim computers in Massachusetts, the FBI covertly purchased and analyzed the Warzone RAT malware, confirming its multiple malicious functions. Separately, law enforcement partners in Canada, Croatia, Finland, Germany, the Netherlands, and Romania provided valuable assistance securing the servers hosting the Warzone RAT infrastructure. “Today’s actions targeting the Warzone RAT infrastructure and personnel are another example of our tenacious and unwavering commitment to dismantling the malware tools used by cybercriminals,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We will turn over every stone to prevent cybercriminals from attacking the integrity of our computer networks, and we will root out those who support such cybercriminals so they will be held accountable. Those who sell malware and support cybercriminals using it should know that they cannot hide behind their keyboards or international borders.” “Daniel Meli will no longer escape accountability for his actions selling malware,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This alleged cybercriminal facilitated the takeover and infection of computers worldwide. Our office was proud to partner with our federal and international counterparts to find Meli and bring him to justice. We will continue to diligently investigate and prosecute cybercrime in the Northern District of Georgia, and in all parts of the globe where our district is impacted.” “This action highlights the FBI’s commitment to disrupting cybercriminal actors and taking down their infrastructure,” said Assistant Director Brian Vorndran of the FBI’s Cyber Division. “The FBI is proud of the international coordination involved in this law enforcement effort, and we will continue to build global partnerships to go after cybercriminals who seek to harm the American people.” The charges of conspiracy, obtaining authorized access to protected computers to obtain information, illegally selling an interception device, and illegally advertising an interception device each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of causing unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Assistant U.S. Attorneys James R. Drabick and Carol E. Head for the District of Massachusetts obtained the seizure warrants, and Drabick is prosecuting Odinakachi. Assistant U.S. Attorneys Bethany L. Rupert and Michael Herskowitz for the Northern District of Georgia are prosecuting Meli. The Justice Department’s Office of International Affairs provided substantial assistance during the investigation. Federal authorities also wish to acknowledge the cooperation and assistance of the FBI Boston and Atlanta Field Offices; Malta Police Force; Office of the Attorney General of Malta; Malta Ministry for Justice; Australian Federal Police; Croatian Ministry of the Interior Criminal Police Directorate; Dutch National Police; Europol European Cybercrime Center; Finland’s National Bureau of Investigation; State Police Force of Saxony, Germany; Japan Ministry of Justice; Port Harcourt Zonal Command of Nigeria's Economic and Financial Crimes Commission (EFCC); Romanian National Police; and Royal Canadian Mounted Police for their valuable assistance. Anyone who is a victim of a Warzone RAT computer intrusion is urged to report it to the FBI at https://wzvictims.ic3.gov . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Warzone RAT splash page.


title: Former CEO Sentenced to Prison for  COVID-19 Relief Fraud and Money Laundering

body_text: MIAMI – On Feb. 8, Gregory Scott Keough, 57, of Wellington, Florida, was sentenced to 30 months in prison for submitting fraudulent loan applications seeking approximately $2 million in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. These loans are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). From March 2020 to Aug. 2020, Keough and conspirator Derek Acree, an attorney, submitted one fraudulent EIDL application and three fraudulent PPP loan applications on behalf of entities they both controlled. Of the funded loans, Keough was responsible for approximately $1,612,222. Keough individually submitted four additional false loan applications on behalf of companies he controlled as the Chief Executive Officer (CEO). Two of those applications were funded and Keough received $309,555 in CARES Act proceeds. These companies included National Financial Holdings Inc., NFH Florida LLC, DBA Finova Financial LLC, NFH Partners LLC, Grupo Keough LLC, Enclave Partners LLC, and National Financial Holding Technology LLC. The loans misrepresented the number of employees, payroll expenses, and gross revenues. After obtaining the fraudulent loan proceeds, Keough transferred some of it to other bank account, paid multiple credit cards, as well as used to purchase and install storm windows for his home, private jet travel, and private school tuition. Keough had entered a guilty plea to two counts of wire fraud and one count of money laundering in Nov. 2023. In addition to prison, Keough was ordered to pay $1,922,355 million in restitution. Acree was charged separately and pled guilty to conspiracy to commit wire fraud in Oct. 2022 (Case No. 22-cr-80157). Acree was sentenced, in Jan. 2023, to 41 months in prison and ordered to pay $1,262,600 million in restitution. Restitution was paid in full jointly by both Acree and Keough. U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office, made the announcement. FBI West Palm Beach investigated the case. The Office of State Attorney Dave Aronberg for the 15 th Judicial Circuit – Palm Beach County and the Palm Beach County Sheriff’s Office PPP Fraud Task Force provided invaluable assistance. Assistant U.S. Attorney Robin W. Waugh prosecuted it and Assistant U.S. Attorney Joshua Pastor handled asset forfeiture. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-80154. ###


title: Testing Laboratory Co-owner Admits $3.8 Million in Fraudulent Billing

body_text: ST. LOUIS – A former St. Louis County health care company owner on Friday admitted submitting more than $3.8 million in fraudulent claims to Medicare, Medicaid and private health care benefit programs. Carlos Himpler, 44, now of Baton Rouge, Louisiana, pleaded guilty in U.S. District Court in St. Louis to a felony conspiracy charge. Himpler, who at the time lived in St. Louis County, described himself as a “business development strategist” and owned or operated a series of health care-related businesses. Himpler’s co-defendant, Dr. Franco Sicuro, also owned businesses including Advanced Geriatric Management LLC (AGM) at 10199 Woodfield Lane in Creve Coeur. In the fall of 2014, Himpler and Dr. Sicuro decided to open an in-house testing lab at AGM. They also decided to open Genotec DX, which they held out as a clinical testing laboratory, and agreed to split profits 50-50. Genotec was in the same building and used the same testing machine as AGM’s lab. Their goal was to maximize their profits from the lab testing business. Himpler and Dr. Sicuro sought accreditation for both labs under the Clinical Laboratory Improvement Amendments (CLIA), which set forth quality standards for laboratories that test blood, body fluid, and tissue taken from humans for diagnosis, prevention or treatment of disease. The pair did not disclose that both labs would employ the same part-time employee who would perform tests using the same machine, Himpler admitted in his plea. To convince CLIA to grant Genotec a final certificate of compliance in November 2015, Himpler participated in causing Genotec to make misrepresentations to CLIA, including that Genotec’s testing hours “changed” so that they no longer overlapped with AGM, Genotec and AGM kept separate laboratory logs and AGM stopped lab running samples and transferred its employees to Genotec in July of 2015, when Genotec began running urine toxicology tests, the plea says. They also concealed Sicuro’s co-ownership of Genotec from Medicare, Medicaid and private health care insurers, while referring urine specimens from Sicuro’s own practice, AGM, to Genotec. Himpler and Sicuro and other health care providers at AGM ordered urine toxicology tests for patients and referred those tests to AGM’s lab and Genotec, which in turn sent the samples to outside “reference” laboratories. Both men knew AGM and Genotec did not have the necessary testing equipment to confirm the amount of given toxin in the urine testing to a high degree of certainty, Himpler’s plea says. They then billed health insurers for the testing, despite knowing that Medicare, Medicaid and many private insurers bar “pass-through billing,” or billing for tests performed by others. In March of 2015, Himpler and Sicuro incorporated another laboratory company, Midwest Toxicology Group LLC, but never obtained a CLIA certification or any lab equipment. Midwest was a lab in name only and was not authorized to perform tests on human specimens. When health insurers began scrutinizing claims submitted by Genotec and became resistant to paying them, Himpler and Sicuro created Midwest for the purpose of billing health insurers, the plea says. In many instances, each lab submitted a claim for the testing of the same specimen obtained from the same person on the same day of service, which is known as “split-billing.” The pair used Genotec’s CLIA number. Himpler admitted in his plea agreement that Medicare, Medicaid and private health care insurers paid $1.4 million in pass-through billing and $2.4 million in split billing. “Today’s announcement of an additional guilty plea in this investigation demonstrates that HHS-OIG will continue to hold individuals who exploit federal health care programs accountable,” said Curt L. Muller, Acting Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. "Health care providers have a responsibility to submit accurate and honest claims to federal health care programs, to ensure that these resources are available for eligible patients.” Himpler is scheduled to be sentenced May 15. The conspiracy charge is punishable by up to five years in prison, a fine of up to $250,000, or both prison and a fine. Dr. Sicuro pleaded guilty in November 2022 and was ordered to pay restitution. He also agreed to forfeit $3.1 million in assets. The FBI, the U.S. Department of Health and Human Services Office of Inspector General and the IRS investigated the case. Assistant U.S. Attorneys Amy Sestric and Kyle Bateman are prosecuting the case.


title: Phoenix Driver Sentenced to Prison for Conspiracy to Transport Five Border Crossers

component: USAO - Arizona

body_text: PHOENIX, Ariz. – Dinero Devon Washington, 46, of Phoenix, was sentenced last week by United States District Judge Michael T. Liburdi to 24 months in prison, to be followed by 36 months of supervised release. Washington pleaded guilty to Conspiracy to Transport Illegal Aliens on September 7, 2023. On April 16, 2021, Washington and his co-conspirator, Alina Pablo, approached the fixed Border Patrol checkpoint in Ajo in a Ford F-150. Border Patrol agents noted five other passengers in the vehicle, all wearing camouflaged clothing with backpacks and carpeting on their shoes, indicators of having recently crossed the border between Mexico and the United States. Questioning by agents confirmed that all five passengers were citizens and nationals of Mexico or Guatemala with no permission to enter the United States and had recently been picked up by Washington and Pablo. Subsequent searches of Washington’s cell phone revealed detailed evidence of the planning and logistics of the smuggling effort, including pin drops, maps, and text messages. Pablo, Washington’s co-conspirator, pleaded guilty to her role in the offense and will be sentenced later this year. Homeland Security Investigations-Phoenix office conducted the investigation in this case. Assistant U.S. Attorney Louis Uhl, District of Arizona, Yuma, handled the prosecution. CASE NUMBER: CR-22-00544-MTL-2 RELEASE NUMBER: 2024-016_Washington # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Vancouver Real Estate Developer Sentenced to Federal Prison for Fraudulently Obtaining Covid-Relief Funds, Laundering Proceeds

component: USAO - Oregon

body_text: PORTLAND, Ore.—A real estate developer and part-time resident of Vancouver, Washington, was sentenced to federal prison today for fraudulently obtaining Covid-relief program funds and laundering a portion of the proceeds while on federal supervised release for a previous fraud conviction. Michael James DeFrees, 62, was sentenced to 21 months in federal prison and five years’ supervised release. He was also ordered to forfeit $1.2 million and pay $1.3 million in restitution to the U.S. Small Business Administration (SBA). “Michael DeFrees’s crimes demonstrated his indifference to both the many businesses suffering the economic effects of the COVID-19 pandemic and American taxpayers who funded the relief programs created to alleviate these impacts. Prosecuting COVID-19 fraud remains a top priority for the Department of Justice and our partners,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office. “Fraudulently using pandemic funds for personal gain is deplorable” said SBA Office of Inspector General (SBA-OIG) Western Region Special Agent in Charge Weston King. “This sentence demonstrates that those who defraud the nation’s vital economic programs will be held accountable. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.” “Crime doesn’t pay, as Mr. DeFrees is again finding today,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Financial crime like Covid-relief fraud hurts all of us and undermines programs meant to help those in need. Today’s sentencing is a reminder that IRS:CI is committed to fighting fraud for the well-being of all our neighbors and communities.” According to court documents, between April 2, 2020, and April 4, 2022, DeFrees used two different business entities to obtain under false pretenses Economic Injury Disaster Loans (EIDLs) and Paycheck Protection Program (PPP) loans administered by the SBA. The EIDL and PPP programs, initially authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, enabled SBA to issue low-interest loans to small businesses adversely impacted by the pandemic and associated shutdowns. To perpetrate his scheme, DeFrees submitted multiple loan applications to the SBA and two banks in Washington State. In these applications, DeFrees indicated that he was the sole owner of two business entities—Gateway National Corporation, a construction company incorporated in Washington State, and Yacht Harbor, LLC, a real estate development company incorporated in Oregon—and that he, as the sole owner, had never been convicted of any disqualifying criminal offense or recently placed on parole or probation. In reality, at the time he submitted the applications, DeFrees was on probation following a 2017 felony conviction in the Western District of Washington for falsifying records in a bankruptcy proceeding. After receiving the loan payouts, DeFrees laundered a portion of the proceeds through a third business entity and spent the funds on personal expenses. On May 17, 2022, a federal grand jury in Portland returned a four-count indictment charging DeFrees with two counts of wire fraud and one count each of bank fraud and money laundering. On October 26, 2023, DeFrees pleaded guilty to all four charges. This case was investigated by the SBA Office of Inspector General, IRS-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), and the FBI. Assistant U.S. Attorney Ryan W. Bounds prosecuted the case. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: International Cybercrime Malware Service Dismantled by Federal Authorities

component: USAO - Massachusetts

body_text: BOSTON – The U.S. Attorney’s Office announced today that, as part of an international law enforcement effort, federal authorities in Boston seized internet domains that were used to sell computer malware used by cybercriminals to secretly access and steal data from victims’ computers. Federal authorities in Atlanta and Boston also unsealed indictments charging individuals in Malta and Nigeria, respectively, for their alleged involvement in selling the malware and supporting cybercriminals seeking to use the malware for malicious purposes. Federal authorities in Boston seized www.warzone.ws and three related domains, which together offered for sale the Warzone RAT malware – a sophisticated remote access trojan (RAT) capable of enabling cybercriminals to surreptitiously connect to victims’ computers for malicious purposes. According to the court documents authorizing the seizures, the Warzone RAT provided cybercriminals the ability to browse victim file systems, take screenshots, record keystrokes, steal victim usernames and passwords, and watch victims through their web cameras, all without the victims’ knowledge or permission. Additionally, two indictments have been unsealed against individuals involved in selling and supporting the Warzone RAT and other malware. Daniel Meli, 27, of Zabbar, Malta, was arrested on Feb. 7, and appeared for an initial appearance before Magistrate Judge in Valletta, Malta. Meli was indicted by a federal grand jury in the Northern District of Georgia on Dec. 12, 2023, with causing unauthorized damage to protected computers; illegally selling and advertising an electronic interception device; and participating in a conspiracy to commit several computer intrusion offenses. According to the charging documents, since at least 2012, Meli offered malware products and services for sale to cybercriminals on online computer-hacking forums. Specifically, Meli allegedly assisted cybercriminals seeking to use RATs for malicious purposes and offered teaching tools for sale, including an eBook. Meli also allegedly sold both the Warzone RAT and, before that, malware known as the Pegasus RAT, which he sold through an online criminal organization called Skynet-Corporation. He also provided online customer support to purchasers of both RATs. The Northern District of Georgia is seeking Meli’s extradition to the United States. Separately, Prince Onyeoziri Odinakachi, 31, of Nigeria, was arrested by the Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission on Feb. 7. Odinakachi was indicted by a federal grand jury in the District of Massachusetts on Jan. 30 with conspiracy to commit multiple computer intrusion offenses, including to obtain authorized access to protected computers to obtain information and causing unauthorized damage to protected computers. According to the charging documents, between June 2019 and no earlier than March 2023, Odinakachi provided online customer support to individuals who purchased and used the Warzone RAT malware. According to court documents, in addition to discovering instances of the Warzone RAT being used to attack victim computers in Massachusetts, Warzone RAT malware was covertly purchased and analyzed confirming its multiple malicious functions. “This week's actions targeting the Warzone RAT infrastructure and personnel are another example of our tenacious and unwavering commitment to dismantling the malware tools used by cybercriminals,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We will turn over every stone to prevent cybercriminals from attacking the integrity of our computer networks, and we will root out those who support such cybercriminals so they will be held accountable. Those who sell malware and support cybercriminals using it should know that they cannot hide behind their keyboards or international borders.” “Daniel Meli will no longer escape accountability for his actions selling malware,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “This alleged cybercriminal facilitated the takeover and infection of computers worldwide. Our office was proud to partner with our federal and international counterparts to find Meli and bring him to justice. We will continue to diligently investigate and prosecute cybercrime in the Northern District of Georgia, and in all parts of the globe where our district is impacted.” “Today, the FBI and our international law enforcement partners dismantled a sophisticated malware service that cybercriminals bought and utilized to infect the computer systems of unsuspecting victims here in Massachusetts, and around the world,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This operation highlights the FBI’s ongoing commitment to unmask and bring to justice anyone who uses today’s technology nefariously. We urge anyone who is a victim of a Warzone RAT intrusion to report it to us at wzvictims.ic3.gov.” The charges of conspiracy, obtaining authorized access to protected computers to obtain information, illegally selling an interception device, and illegally advertising an interception device each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. The charge of causing unauthorized damage to protected computers provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of $250,000, or twice the gross gain or loss, whichever is greater. 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. Acting U.S. Attorney Levy; FBI SAC Cohen; and U.S. Attorney Buchanan made the announcement today. Assistant U.S. Attorneys James R. Drabick and Carol E. Head for the District of Massachusetts obtained the seizure warrants and Drabick is handling the criminal prosecution of Odinakachi. Assistant U.S. Attorneys Bethany L. Rupert and Michael Herskowitz for the Northern District of Georgia are handling the criminal prosecution of Meli. The Justice Department’s Office of International Affairs provided substantial assistance during the investigation. Authorities also wish to acknowledge the cooperation and assistance of the Malta Police Force; Office of the Attorney General of Malta; Malta Ministry for Justice; Australian Federal Police; Croatian Ministry of the Interior Criminal Police Directorate; Dutch National Police; Europol European Cybercrime Center; Finland’s National Bureau of Investigation; State Police Force of Saxony, Germany; Japan Ministry of Justice; Port Harcourt Zonal Command of Nigeria’s Economic and Financial Crimes Commission (EFCC); Romanian National Police; and Royal Canadian Mounted Police. Law enforcement partners in Canada, Croatia, Finland, Germany, the Netherlands and Romania provided valuable assistance securing the servers hosting the Warzone RAT infrastructure. Anyone who is a victim of a Warzone RAT computer intrusion is urged to report it to the FBI at https://wzvictims.ic3.gov. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Individual Sentenced to 64 Months of Imprisonment for Two Cases of Identity Theft and Fraud

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico – A Juncos, Puerto Rico resident was sentenced today by United States District Court Judge Pedro A. Delgado to a total of five years and four months of imprisonment for aggravated identity theft and bank fraud violations in two separate cases, announced U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico. According to court documents, Juan Rivera Mundo, 27, devised a scheme to acquire individuals’ debit cards and PIN numbers from legitimate debit card transactions with the help of other people working as cashiers at multiple business locations in Puerto Rico that he recruited as part of the scheme. The defendant then used counterfeit access device equipment to “clone” those debit cards and then used them to illegally withdraw cash and make extravagant purchases, all for his own enrichment and that of others. In doing so, Rivera Mundo stole debit card numbers and personal identifying information in order to fraudulently obtain funds under the control of a federally insured financial institution. Juan Rivera Mundo was originally charged on March 24, 2022. While on bail pending trial, Rivera Mundo engaged in additional illegal skimming activity. He was then charged for the new conduct and arrested on August 25, 2022. The defendant pleaded guilty to both cases on November 9, 2023. In addition to the sixty-four months sentence of imprisonment, Rivera Mundo was ordered to serve five (5) years of supervised release and to pay restitution in the amount of $18,528.60. Defendant was also charged in a third and separate federal indictment in the District of Puerto Rico on May 11, 2023, for conspiracy to commit wire fraud in 2020 by fraudulently requesting a Payroll Protection Program (PPP) loan as part of a scheme to defraud and obtain money and property from the United States Small Business Administration and a financial institution. This case is currently pending disposition. The United States Secret Service investigated the bank fraud and aggravated identity theft cases. Assistant U.S. Attorney Marie Christine Amy prosecuted the cases. ###


title: Hickman County Man Sentenced to Fifteen Years in Federal Prison for Possession with Intent to Distribute Methamphetamine and Firearms Offenses

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

body_text: NASHVILLE – Dustin L. Truett, 40, of Lyles, Tennessee, was sentenced today to fifteen years in prison, followed by five years of supervised release, announced United States Attorney Henry C. Leventis. In July 2023, Truett pled guilty to a three-count Indictment charging him with Possession with Intent to Distribute Methamphetamine, Possession of a Firearm in Furtherance of Drug Trafficking, and Possession of a Firearm by a Previously Convicted Felon. The convictions stemmed from an incident in December 2020, when law enforcement officers executed a search warrant at Truett’s residence. During the search, they recovered a gun safe, two bolt-action rifles, a bolt-action shotgun, digital scales, and ammunition. Inside the safe, they recovered $33,765 in cash, a stolen AR-style semi-automatic rifle, and 319 grams of 92% pure methamphetamine. Truett had previously been convicted of multiple felony drug offenses and was prohibited by law from possessing firearms. The case was investigated by the Hickman County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Rachel M. Stephens prosecuted the case. # # # # #


title: District Man Indicted on Enhanced Second-Degree Theft For Retail Theft

component: USAO - District of Columbia

body_text: WASHINGTON – This week, Miguel Demonis, 30, of Washington, D.C., was indicted by a grand jury in the Superior Court of the District of Columbia on one count of Felony Second-Degree Theft stemming from events occurring on February 1, 2024, U.S. Attorney Matthew M. Graves and Pamela Smith, Chief of the Metropolitan Police Department (MPD) announced. Demonis is to be arraigned on February 20, 2024, at a hearing before a Superior Court judge. According to the government’s evidence, on February 1, 2024, Demonis went into a CVS in Northwest Washington, D.C., took merchandise from the store shelves, and walked out of the store past all points of sale without paying. Demonis was arrested minutes after walking out of the store by the Metropolitan Police Department. Since September 1, 2023, including the aforementioned case, the United States Attorney’s Office for the District of Columbia has indicted 21 cases involving a felony second-degree theft charge based on a defendant’s two or more prior theft convictions, not from the same occasion. Demonis has two or more prior theft convictions, though not from the same occasion, and therefore is subject to enhanced penalties for his alleged theft, including a mandatory minimum sentence of one year in jail for the count of theft for which he is indicted. This case was investigated by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia. It was prosecuted by Assistant U.S. Attorney Rana Wahdan. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.


title: Vero Beach resident pleads guilty to fentanyl distribution charges in federal court

component: USAO - Florida, Southern

body_text: MIAMI – On Feb. 7, a Vero Beach man pleaded guilty to two counts of distributing fentanyl. In April 2023, Sudiata Neket Zanja Stinson, 47, of Vero Beach, Florida, sold approximately 20 grams of fentanyl to a purchaser in two separate occasions. The sentencing hearing has not been set yet. Stinson faces up to 40 years in federal prison. Stinson’s conviction is the result of a Drug Enforcement Administration (DEA) and Indian River County Sheriff’s Office (IRCSO) fentanyl distribution operation. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of DEA, Miami Field Division, and Sheriff Eric Flowers of IRCSO made the announcement. DEA Miami Field Division, Port St. Lucie Resident Office and IRCSO investigated the case. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 23-cr-14040. ###


title: Texas Roofing Company Charged With Fraud Related to Asbestos Removal at Federal Prison in Wisconsin

component: Office of the Inspector General

body_text: MADISON, WIS. - Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced the filing of a criminal information and deferred prosecution agreement on February 7, 2024, charging Brazos Urethane, Inc. Texas City, Texas, with conspiracy to defraud the U.S. Department of Justice, Federal Bureau of Prisons (BOP). Brazos contracted in 2014 with the BOP to replace roofs on buildings located at the Oxford Federal Correctional Institution (FCI Oxford) located in Oxford, Wisconsin, at a contract price of nearly $4,000,000. The roofing project involved the abatement of asbestos containing materials that required the use of special removal and disposal procedures to guard against asbestos contamination. As part of the BOP contract, Brazos certified that it would maintain a safe work environment, follow all federal and state laws regarding the removal and disposal of hazardous waste materials, and obtain all necessary permits from the Wisconsin Department of Natural Resources (DNR). “Brazos dumping hazardous material on a residential property wasn’t just dangerous for the community, it was defrauding the United States government. The public can rest assured that the asbestos has been properly removed and disposed of, and that Brazos is being held accountable for its actions,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General Midwest Region. “The United States requires contractors like Brazos to comply with regulations for the proper removal and disposal of materials containing asbestos,” said U.S. Attorney Timothy M. O’Shea of the Western District of Wisconsin. “When contractors fail to comply, they not only defraud the United States, they also endanger their employees and the community. This charge is meant to hold Brazos accountable and deter other contractors from engaging in similar conduct." Brazos dumped roofing waste materials from the FCI Oxford worksite onto a property he purchased near the prison in early 2015. The roofing waste materials were subsequently found to contain asbestos by Wisconsin DNR regulators on November 4, 2015, and by Environmental Protection Agency regulators on December 16, 2021. Brazos concealed this illegal dumping from the BOP and Wisconsin DNR, then lied about its cleanup efforts once the company was caught. In 2022, Brazos was ordered by the Wisconsin DNR to properly and completely clean up the roofing waste. The cleanup project cost Brazos $480,000, and took three weeks to accomplish. As part of the deferred prosecution agreement, Brazos agrees to immediately pay a monetary penalty of $300,000 which represents the amount of money Brazos attempted to save by engaging in the illegal dumping conduct. Brazos also agrees to enter into a three-year corporate compliance program designed to prevent further violations of contract fraud and federal environmental laws. At the end of the three-year program, the charge against Brazos will be dismissed. The case against Brazos was the result of an investigation conducted by the U.S. Department of Justice, Office of Inspector General. The prosecution of the case was handled by Assistant U.S. Attorney Daniel J. Graber.


title: Former South Carolina Priest Sentenced to Federal Prison for Sexual Abuse of a Child

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Jaime Adolfo Gonzalez-Farias, a/k/a “Father Gonzalez,” 69, a former Catholic priest, of Laurens, was sentenced to more than 21 years in federal prison following a conviction for transportation of a minor with intent to engage in illegal sexual acts. Father Gonzalez-Farias served as a Catholic priest since at least 1990, including in South Carolina from 2015 until his suspension by the Catholic authorities in late 2020. He most recently served at parishes in Newberry and Laurens Counties. He also served in parishes in Florida and New Jersey. In early 2020, Gonzalez-Farias met the minor victim, an 11-year-old boy, and his family through his position as a priest. Gonzalez-Farias began giving high levels of attention to the child, including giving gifts such as a cellphone that he used to communicate with the victim. In November 2020, the child’s family reported to Catholic authorities their concern that the priest’s relationship with the child was inappropriate. Church authorities suspended Gonzalez-Farias and made a report to the Laurens County Sheriff’s Office and FBI Columbia Field Office. Investigators learned that in November 2020 the priest took the minor victim to Florida alone under the pretense of a beach vacation, and during that trip, Gonzales-Farias masturbated in front of the victim, attempted to sexually assault him, and showed the minor victim pornography. Investigators uncovered numerous text messages and WhatsApp messages sent by the priest to the minor, that included affectionate names for the child and messages that were inappropriate, crossed appropriate boundaries, and were consistent with the minor victim’s disclosure of abuse. After his arrest by FBI agents on Nov. 28, 2022, at the Miami International Airport, Gonzalez-Farias admitted that he touched the minor victim’s genitals in Florida and that he showed the victim pornography and showered with the victim in South Carolina. FBI searched the contents of Gonzales-Farias’s devices, and the contents of those devices showed a continued interest in minors. Gonzalez-Farias pleaded guilty in August 2023. United States District Judge Mary Geiger Lewis sentenced Gonzalez-Farias to 262 months imprisonment, followed by a lifetime of supervised release. Gonzalez-Farias will also have to register as a sex offender as a result of his conviction, and he was ordered to pay restitution to the victim for losses incurred as a result of his conduct. This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov . The case was investigated by the FBI Columbia Field Office and the Laurens County Sheriff’s Office. Assistant U.S. Attorneys Elliott B. Daniels and E. Elizabeth Major are prosecuting the case. ###