title: Four Men Arraigned on Alleged Drug Trafficking Conspiracy and Gun Charges

component: Drug Enforcement Administration (DEA)

body_text: WASHINGTON – Arraignments were held today for four alleged members of a drug trafficking conspiracy. Jorge Cruz Maldonado, Francisco Alexander Rosales Diaz, Erik Rivera Garcia, and Vladimir Roque Ceron are charged with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and a mixture and substance containing a detectable amount of fentanyl. The charges were announced by U.S. Attorney Matthew M. Graves and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration’s Washington Field Division. Cruz Maldonado also is charged with unlawful distribution of 500 grams or more of cocaine; Cruz Maldonado, Rosales Diaz, and Rivera Garcia are charged with unlawful possession with intent to distribute 500 grams or more of cocaine and using, carrying, and possessing a firearm in furtherance of a drug trafficking offense; Rivera Garcia also is charged with unlawful possession of a firearm and ammunition by a prohibited person. Rosales Diaz additionally is charged with unlawful possession of ammunition by a prohibited person. According to court documents, on or about Aug. 18, 2023, Cruz Maldonado, Rivera Garcia, and Rosales Diaz arrived in a vehicle at the parking lot of a shopping center in Northeast Washington, DC to conduct a drug deal. Shortly after, DEA agents approached all three individuals in their car and detained them. Inside the vehicle, DEA agents discovered and seized a loaded .38 caliber revolver, a loaded 9mm handgun, numerous rounds of ammunition for each firearm, an extended magazine, and approximately 3.6 kilograms of cocaine powder. It is further alleged that between March and June 2023, through five transactions in Hyattsville, Maryland, and Washington, D.C., Roque Ceron sold a total of approximately 111 pills containing fentanyl and 197 grams of cocaine powder for $8,250; and, through two transactions between June and August 2023 in Washington, DC, Cruz Maldonado sold a total of approximately 581 grams of cocaine powder for $16,000. It is further alleged that Cruz Maldonado is Roque Ceron’s supplier of fentanyl and cocaine, and that together with Rosales Diaz and Rivera Garcia, they are engaged in a conspiracy to distribute and possess with intent to distribute cocaine and fentanyl. Cruz Maldonado, Rosales Diaz, and Rivera Garcia were arrested on Aug. 18, 2023, and remain detained; Roque Ceron was arrested on August 20, 2023, and remains detained. The maximum statutory sentence for the drug conspiracy charge is 40 years; the maximum statutory sentence for distributing or possessing with intent to distribute 500 grams or more of cocaine is 40 years; the maximum statutory sentence for possessing a firearm in furtherance of a drug trafficking offense is life imprisonment; and the maximum statutory sentence for possessing a firearm and/or ammunition by a prohibited person is 15 years. All statutory maximum sentences are prescribed by Congress and are provided here for informational purposes. If convicted of any offense, a defendant’s sentence will be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors. This case was investigated by the DEA’s Washington Field Division with assistance from the Department of Homeland Security’s Immigration and Customs Enforcement (Washington Enforcement and Removal Operations) and the Metropolitan Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Javier Urbina and Assistant U.S. Attorney Christopher Marin with the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office for the District of Columbia. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Jury Convicts Macon Residents for Armed Fentanyl, Meth, Heroin Trafficking

body_text: MACON, Ga. – A federal jury convicted two Macon residents and members of a local criminal street gang organization on multiple federal charges Monday evening for their roles in the armed distribution of large quantities of drugs, which often tested to be deadly fentanyl mixes. Johnifer Dernard Barnwell aka “Whoop” aka “Malixe,” 37, of Macon, and Kenneth Emanuel Pertillo aka “Fat Boy,” 37, of Macon, West Virginia and North Carolina, were found guilty of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin, and possession with intent to distribute fentanyl, methamphetamine, heroin, cocaine and cocaine base. Barnwell was also convicted of possessing a firearm in furtherance of a drug trafficking crime. The trial began on Sept. 25 before U.S. District Judge Royal, concluding Oct. 2. Both defendants face a maximum sentence of life in prison on each narcotics charge and a $10,000,000 fine. Barnwell additionally faces five consecutive years in prison and a maximum $250,000 fine for the firearms charge. Sentencing will be determined by the Court. The defendants are not eligible for parole. “As part of our collective commitment to directly address violence in Macon, law enforcement conducted this lengthy investigation to unravel a violent and armed organized criminal group distributing large amounts of fentanyl, often sold to people as other drugs,” said U.S. Attorney Peter D. Leary. “In collaboration with our local, state and federal law enforcement partners, our office is resolved to bring justice to those who terrorize our neighborhoods with unrelenting violence and poison our communities with fentanyl and other deadly drugs.” “Gangs wreak havoc on local residents, engaging in violence and peddling dangerous drugs that devastate communities and families," said Senior Supervisory Special Agent Robert Gibbs of FBI Macon. "As this case demonstrates, cooperation between federal, state and local law enforcement is vital to dismantling violent criminal enterprises and keeping our communities safe." According to court documents and evidence presented at trial, FBI began investigating a large-scale fentanyl, heroin and methamphetamine distribution organization in Macon and the Central Georgia region in March 2020. Federal agents identified Pertillo and Barnwell as distributors and part of the MOB (Money Over Bitches) sect of the Mafia criminal street gang. To advance the investigation, agents conducted multiple controlled purchases from various defendants in the case and obtained orders authorizing wiretaps on five phones used by members of the organization, including Barnwell. Controlled purchases occurred at trap houses on Mimosa Drive and Culver Street, and at a local nightclub, among other locations. Illegal drugs being sold as “heroin” often tested as a fentanyl mix. On July 20, 2021, FBI executed search warrants at eleven Macon addresses identified as trap houses or distribution locations on Mimosa Drive, Culver Street, Forest Hill Road, Riverside Park Boulevard, Lucerne Drive, Shurling Drive and Kingsview Drive. Agents found approximately eight kilograms of fentanyl, methamphetamine, heroin, cocaine and cocaine base plus 20 firearms, hundreds of rounds of ammunition, large-capacity firearm magazines and more than $50,000 cash. At one location—an apartment identified as a drug “lab” at 3990 Riverside Park Blvd. where Barnwell and Pertillo would mix fentanyl and heroin in a kitchen blender before selling it—agents found approximately 2.5 kilograms of methamphetamine, nearly one kilogram of pure fentanyl, more than one kilogram of a pure fentanyl chemical analogue and more than two kilograms of blends containing fentanyl, heroin and fentanyl analogue mix. Agents also found nearly half a kilogram of pure heroin, more than 280 grams of cocaine base, 80 grams of cocaine and 64 grams of ketamine. Agents seized several firearms, a fully loaded AR14 drum magazine, ammunition and $5,778 cash at that location. In all, the organization is responsible for distributing or possessing with the intent to distribute more than three kilograms of fentanyl or fentanyl analogue, 2.5 kilograms of methamphetamine, nearly two kilograms of heroin and significant quantities of cocaine base and cocaine. The following co-defendants have been convicted and are awaiting sentencing: Christopher Leon Coleman aka “Slim,” 41, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a mandatory minimum sentence of ten years up to a maximum of life in prison and a $10,000,000 fine; Troy Truelle Williams, Sr., aka “Ty, 54, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl and heroin. He faces a mandatory minimum sentence of five years up to a maximum of 40 years in prison to be followed by six years of supervised release and a $2,000,000 fine; De’Kerio Ja’mel Coleman aka “Dee,” 35, of Macon, pleaded guilty to distribution of fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; Joshua Antoine Green aka “J” or “Jay,” 32, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; Gregory Bernard Jolly aka “Stank,” 38, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; Johnnie B. Lowe, 67, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; Rochelle Oliver aka “Chelle,” 40, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances. She faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; Recardo Keon Ray aka “Keon,” 38, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; Tiara Thomas aka “Red,” 23, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. She faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine; and Michael Clifford White, 40, of Macon, pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl. He faces a maximum sentence of 20 years in prison to be followed by three years of supervised release and a $1,000,000 fine. The following co-defendants have been convicted and sentenced: Romello Campbell, 21, of Macon, was sentenced to serve 120 months in prison to be followed by three years of supervised release on May 9 after he pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine; Diamond Monique Thomas, 27, of Macon, was sentenced to serve 96 months in prison to be followed by three years of supervised release on July 11 after she pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine; and Jameliha Shalonda Coleman aka “Juicy,” 26, of Macon, was sentenced to serve 90 months in prison to be followed by three years of supervised release on June 9 after she pleaded guilty to conspiracy to possess with intent to distribute controlled substances, including fentanyl, heroin and methamphetamine. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The case was investigated by the FBI, with assistance from numerous agencies who participated in executing search warrants and conducting arrests, including the DEA, the GBI, the Bibb County Sheriff’s Office, the Butts County Sheriff’s Office, the Bleckley County Sheriff’s Office, the Houston County Sheriff’s Office, the Georgia Department of Corrections, the Perry Police Department and the Athens-Clarke County Police Department. Assistant U.S. Attorney Joy Odom is prosecuting the case for the Government.


title: Springfield Man Sentenced to 20 Years for Leading Heroin Conspiracy

component: USAO - Missouri, Western

body_text: SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for leading a large heroin trafficking organization with his wife. Larry K. Hayward, 40, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole. On Aug. 24, 2022, Hayward was convicted at trial of one count of conspiracy to distribute heroin, three counts of distributing heroin, and one count of possessing heroin with the intent to distribute. According to evidence introduced during the trial, Hayward and his wife, co-defendant Jasmine D. Steed, 36, were co-leaders of a criminal organization that consistently distributed heroin in the Springfield community from approximately Nov. 15, 2016, to Oct. 17, 2018. Court documents conservatively estimate they distributed at least three kilograms of heroin during that nearly two-year period. Hayward and Steed obtained heroin from a source in Chicago, Illinois. They distributed heroin themselves and recruited others to help distribute heroin. Law enforcement officers executed search warrants at both of Hayward’s residences in Springfield and Waynesville, Mo. At his Waynesville residence, officers found a loaded Sig Sauer .380-caliber pistol, $5,000 in cash, and drug paraphernalia. Steed was present during the search of their Springfield residence, where officers found heroin. Hayward has four prior felony convictions for possession of a controlled substance and a prior felony conviction for selling cocaine to an undercover officer. He also has a prior felony conviction for burglary, three misdemeanor convictions for possession of drugs, and a conviction for driving under the influence of alcohol. Hayward is the fifth and final defendant to be sentenced in this case. Steed was sentenced on March 25, 2021, to 16 years and eight months in federal prison without parole. Co-defendants Richard J. Smith, 48, of Springfield, Rashad J. Moore, 31, of Branson, Mo. and Damario J. Brown, 33, whose address was unknown, also pleaded guilty and have been sentenced. This case was prosecuted by Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Organized Crime and Drug Enforcement Task Force This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Omaha Man Sentenced for Distributing Methamphetamine

component: USAO - Nebraska

body_text: Acting United States Attorney Susan Lehr announced that Justin Britthouer, 36, formerly of Omaha, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for possession of methamphetamine with intent to distribute. Britthouer was sentenced to 132 months in prison and will also serve 5 years on supervised release. There is no parole in the federal system. On August 13, 2022, Britthouer was stopped for erratic driving by the Beatrice Police Department. While performing standardized field sobriety tests, Britthouer admitted there were drugs in the vehicle he had been driving. The resulting search of the vehicle located three bags of methamphetamine. The methamphetamine was tested by the Nebraska State Patrol Crime Lab, which confirmed it was methamphetamine. The total amount seized was at least 68 grams pure methamphetamine. Britthouer admitted to distributing drugs in southeast Nebraska during an interview and was arrested. This case was investigated by the Beatrice Police Department.


title: Spiro Resident Pleads Guilty To Distribution Of Methamphetamine

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Presley Edward Lawson, age 49, of Spiro, Oklahoma, entered a guilty plea to one count of distribution of methamphetamine. The Indictment, filed on June 14, 2023, charged Lawson with four counts of Distribution of Methamphetamine. According to investigators, Lawson sold methamphetamine to a subject on four occasions between June and August 2022. The total amount of methamphetamine distributed was just over 855 grams. The charges arose from an investigation by the U.S. Drug Enforcement Agency, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Sequoyah Sheriff’s Office, and the Federal Bureau of Investigation. The Honorable D. Edward Snow, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Lawson was remanded to the custody of the U.S. Marshals Service pending sentencing. Assistant United States Attorney James Seaman represented the United States.


title: Cherokee And Tulsa County Residents Plead Guilty To Firearms Offenses

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

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Eduardo Garcia, age 53, Eric Lopez, age 44, Eric Jesus Lopez, age 27, Savanna Jade Lopez, age 27, and Christian Lopez, age 26, all of Tahlequah, Oklahoma, and Francisco Hernandez, age 24, of Tulsa, Oklahoma, each entered guilty pleas to federal firearms charges. On May 18, 2023, Eduardo Garcia pleaded guilty to one count of Felon in Possession of a Firearm. At the hearing, Garcia admitted to possessing multiple firearms despite knowing that he was prohibited from possessing firearms as a convicted felon. On July 19, 2023, Christian Lopez pleaded guilty to one count of False Statement During Purchase of a Firearm. On August 30, 2023, Eric Lopez, Eric Jesus Lopez, and Savanna Jade Lopez each pleaded guilty to one count of False Statement During Purchase of a Firearm. On September 11, 2023, Francisco Hernandez pleaded guilty to one count of False Statement During Purchase of a Firearm. The Indictment alleged that on November 4, 2022, Eduardo Garcia, knowing he was a convicted felon, unlawfully possessed three firearms. The Indictment further alleged that Eric Lopez, Eric Jesus Lopez, Savanna Jade Lopez, Christian Lopez, and Francisco Hernandez, on various dates, purchased firearms from licensed firearms dealers, indicating on the ATF Form 4473 that they were buying the firearms for themselves when they were actually buying the firearms for someone else. The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the pleas and ordered the completion of presentence investigation reports. All defendants will remain out of custody pending sentencing. Assistant United States Attorney Erin Cornell represented the United States.


title: Seminole County Resident Pleads Guilty To Second Degree Murder

component: Federal Bureau of Investigation (FBI)

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Douglas Vaughn Switch, Jr., age 46, of Seminole, Oklahoma, entered a guilty plea to an Information charging him with one count of Murder in Indian Country – Second Degree, punishable by up to life in prison. According to investigators, on October 23, 2023, Switch shot the victim in the head with a .380 pistol, killing her instantly. The crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Federal Bureau of Investigation, the Oklahoma State Bureau of Investigation, and the Seminole County Sheriff’s Department. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. The defendant was remanded to the custody of the United States Marshal. Assistant United States Attorney Erin Cornell represented the United States.


title: Justice Department Announces Eight Indictments Against China-Based Chemical Manufacturing Companies and Employees

component: USAO - Florida, Southern

body_text: MIAMI – The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals. The indictments build on prosecutions announced in June 2023 and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States. The indictments complement actions taken today by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs. “We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.” “The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of Agents and Officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.” “The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.” “Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said DEA Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as One DEA, to defeat the cartels and their entire global supply chain.” “This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.” The Drug Enforcement Administration (DEA) led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the U.S. Postal Inspection Service also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure. Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January 2023, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues. Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021. The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users. These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds. The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States. Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents. Southern District of Florida Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage. “Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.” Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation. The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering. Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida. Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps. Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives. According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico. Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States. The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases. Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture. The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF. Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community. Middle District of Florida Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States. According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years. “The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.” Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao. Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf. Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu. Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful. Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering. DEA investigated these cases. Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases. The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Indictments are attached to this release. Indictment-23cr335 Indictment-23CR338 Indictment-23CR334 Indictment-23CR336 Indictment-23CR333 CaseNo-23-20393-CR-ALT CaseNo-23-20394-CR-ALT CaseNo-23-60176-CR-SING ###


title: Justice Department Awards More Than $36 Million To Support Community Safety In The Middle District Of Florida

component: USAO - Florida, Middle

body_text: Tampa, FL – The Justice Department announced that it has awarded more than $4.4 billion to support state, local, and Tribal public safety, and community justice activities. Of that amount, more than $36.6 million has been awarded to entities in the Middle District of Florida. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies. “Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.” “Improving the safety of our communities requires a comprehensive approach and commitment by those working on the front lines,” said U.S. Attorney Roger B. Handberg. “The funding announced today will greatly support those working tirelessly to help keep our citizens safe every day.” The more than $36.6 million in grant funding being awarded this fiscal year in the Middle District of Florida will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges. “Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.” “The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.” “Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.” More information about the awards announced today, including those within the Middle District of Florida, can be found by visiting www.ojp.gov/funding/fy23awards .


title: Justice Department Secures Compensation for Servicemembers After Property Management Company Illegally Charged Lease Termination Fees at New Jersey Apartment Complex

component: Civil Rights Division

body_text: The Justice Department announced today that JAG Management Company LLC (JAG), which manages large apartment properties in several states, agreed on Friday to pay $61,581 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The Justice Department’s complaint alleges that JAG imposed illegal fees on at least nine servicemembers who had exercised their right under the SCRA to terminate their leases after receiving qualifying military orders. The servicemembers were residents of the Jefferson Mount Laurel apartment complex in Mount Laurel, New Jersey. The termination fees ran as high as $2,750 per servicemember. “Servicemembers should not have to pay any fees – much less exorbitant fees – to landlords when they are simply complying with their military orders and protecting our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution reaffirms the Justice Department’s unwavering commitment to protecting the rights of servicemembers, veterans and their families.” “Our office is committed to protecting the rights of servicemembers who make tremendous sacrifices on behalf of our nation,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Landlords and property managers may not unlawfully penalize members of our armed forces who are simply carrying out their duty. Through this consent order, we protect the rights of servicemembers and provide compensation to those who suffered harm when they were allegedly unlawfully charged early lease termination fees upon receiving military orders.” The complaint filed today in the U.S. District Court for the District of New Jersey alleges that Coast Guard Lieutenant Daniel Pereira sought to terminate his lease with JAG Management after he received permanent change of station orders transferring him from Philadelphia to New London, Connecticut. Lt. Pereira provided JAG with timely written notice of his lease termination and a copy of his transfer orders before vacating his apartment. However, two months after moving, Lt. Pereira was notified – for the first time – that JAG was demanding that he repay a $2,100 rent concession he received when he signed his lease. Despite Lt. Pereira’s efforts to resolve the matter, including providing JAG with the relevant provisions of the SCRA and prior Justice Department cases on this issue, JAG reported the debt to credit reporting agencies and Lt. Pereira’s credit score was downgraded. The complaint also alleges that JAG charged illegal fees to at least eight other servicemembers, representing the U.S. Air Force, Army, Coast Guard and Air National Guard, who had exercised their right to terminate their residential leases upon receipt of qualifying military orders. Under the terms of the proposed consent order, which was filed with the complaint and is subject to court approval, JAG Management must pay a total of $41,581 in damages to the nine servicemembers. JAG must also pay a civil penalty of $20,000 to the federal government. In addition, JAG must implement policies to ensure it complies with the SCRA, trains employees on the protections afforded by the SCRA and reports future SCRA-related complaints to the federal government. The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section investigated JAG Management’s leasing practices after receiving a referral from the Justice Department’s Servicemembers and Veterans Initiative. The purpose of the SCRA is to allow servicemembers to devote their entire energy to the national defense. The SCRA provides protections to servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement without paying a penalty or an early termination charge. Since 2011, the department has obtained over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov . Servicemembers and their dependents who believe their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil . Individuals who believe their civil rights have been violated may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339. jag_management_complaint.pdf jag_management_consent_decree.pdf


title: Previously Deported Honduran Man Sentenced To 19 Months’ Imprisonment For Illegal Re-Entry

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Nicholas Heriberto Vallecillo-Tejeda, age 41, was sentenced on September 29, 2023, by U.S. District Court Judge Malachy Mannion, to 19 months’ imprisonment on the charge of illegal re-entry into the United States by a previously deported alien. Vallecillo-Tejeda was previously convicted of the offense after a two-day jury trial before Judge Mannion in April 2023. According to United States Attorney Gerard M. Karam, Vallecillo-Tejeda was previously deported from the United States to Honduras in November 2008 and again in July 2009. He re-entered the United States again sometime after July 2009 without first obtaining legal permission to do so. Vallecillo-Tejeda was encountered in Schuylkill County, Pennsylvania, on September 5, 2020, when he was arrested by the Shenandoah Police Department on charges which eventually led to convictions for simple assault and weapons possession. The matter was investigated by U.S. Immigration and Customs (ICE) Enforcement and Removal Operations (ERO). Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher prosecuted the case. ###


title: Fort Walton Beach Man Sentenced To 25 Years In Federal Prison For Drug Conspiracy

body_text: PENSACOLA, FLORIDA – Maurice Pearce Head, 38, of Fort Walton Beach, Florida, was sentenced to 25 years in federal prison after previously pleading guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, fentanyl, and heroin. The sentence was announced by Jason R. Coody, U.S. Attorney for the Northern District of Florida. “Hundreds of individuals are killed every day in communities throughout our country due to the distribution of fentanyl,” said U.S. Attorney Coody. “Each of these deaths is a tragedy, robbing individuals of their promise and crippling families left behind with unimaginable grief. We remain committed to working with our law enforcement partners to identify and aggressively prosecute those who distribute these addictive, controlled substances. This sentence serves as a significant deterrent to drug traffickers and demonstrates our resolve to hold them accountable.” Evidence introduced at the sentencing hearing established that Head conspired with others to distribute over 50 kilograms of methamphetamine and thousands of pills containing fentanyl in the Northern District of Florida and elsewhere. On June 8, 2021, Head was found in possession of over a kilogram of a mixture of drugs containing methamphetamine, fentanyl, and heroin, during a federal search warrant at a warehouse in Fort Walton Beach, Florida. Evidence introduced at the sentencing hearing also established that, while Head’s case was pending, he obstructed justice by attempting to offer to pay a witness $10,000 if that witness would agree not to testify against Head. “Fentanyl remains the deadliest drug threat facing our communities. Last year, over 110,000 American lives were lost to drug poisonings, with a majority of these deaths due to a synthetic opioid like illicit fentanyl,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The DEA Miami Field Division remains committed to working with our law enforcement partners to aggressively pursue those who bring this poison into our Florida communities and to hold drug traffickers accountable for their crimes.” “We all know fentanyl alone, and/or laced with other drugs, is deadly. People dealing these drugs simply don’t care. We must continue to work to educate the public, but law enforcement agencies and their partners like the U.S. Attorney’s Office know putting dealers behind bars and out of business is a critical component of the multi-pronged attempt to hold dealers accountable for their crimes and try to save lives,” said Okaloosa County Sheriff Eric Aden. FDLE Pensacola Special Agent in Charge Chris Williams said, “Our agents proactively investigate drug dealers and trafficking organizations to intercept these dangerous drugs. Still, fentanyl and methamphetamines kill thousands of Floridians each year. There is no doubt that investigating and arresting Maurice Head helped stop the flow of these dangerous drugs into our Northwest Florida communities.” “The Florida Highway Patrol is committed to enforcing the laws of Florida with an intentional effort to interdict and remove illicit controlled substances along Florida roadways that poison our communities,” said Colonel Gary Howze, Director of the Florida Highway Patrol . “The collaborative relationships between our partner federal, state, and local law enforcement agencies are key in the successful arrest and prosecutions of criminals.” Head’s prison sentence will be followed by 5 years of supervised release. This prosecution resulted from a combined investigation conducted by the Okaloosa County Sheriff’s Office, the Drug Enforcement Administration, the Florida Department of Law Enforcement, and the Florida Highway Patrol. Assistant United States Attorneys J. Ryan Love and Alicia H. Forbes prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Armed Career Criminal Sentenced to More than 15 Years in Prison For Illegal Gun Possession

component: USAO - North Carolina, Eastern

body_text: NEW BERN, N.C. – A Raleigh man with two prior federal convictions was sentenced as an armed career criminal offender today for possession of a firearm by a felon. Donald Melvin, age 52, was sentenced to 188 months in prison followed by five years of supervised release. On March 9, 2023, Melvin pled guilty to the charge. Melvin’s previous convictions for drug trafficking and breaking and entering qualified him as an armed career criminal. According to court documents and other information presented in court, Melvin, 52, was living at an apartment in Raleigh on January 6, 2022, when Raleigh Police Department (RPD) attempted to serve an outstanding arrest warrant. Melvin initially lied about his identity. However, RPD officers were able to confirm his identity and took him into custody after Melvin attempted to flee. Melvin was carrying a loaded 9mm gun, and a search of his apartment revealed four additional firearms, ammunition and a variety of narcotics including heroin, cocaine, fentanyl, and Phencyclidine. Firearms recovered at the apartment included a 9mm with an extended magazine, two 12-gauge shotguns and .243 caliber rifle, Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Raleigh Police Department investigated the case and Assistant U.S. Attorney Ashley Foxx prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.22-CR-00143-FL. ###


title: United States Settles Kickback Allegations with BioTek reMEDys Inc., Chaitanya Gadde  and Dr. David Tabby

component: Civil Division

body_text: BioTek reMEDys Inc. (BioTek), located in New Castle, Delaware, and its chief executive officer, Chaitanya Gadde, have agreed collectively to pay $20 million based on their ability to pay to resolve allegations that they violated the False Claims Act by paying kickbacks to patients and physicians to protect its revenue stream. When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance or a deductible (collectively copays). Congress included copay requirements in the Medicare program in part to serve as a check on health care costs. The Federal Anti-Kickback Statute prohibits the offering, paying, soliciting or accepting, directly or indirectly, of any remuneration – which includes money or any other thing of value – to refer or arrange for the referral of items or services payable by any federal health care program. This prohibition extends to companies that routinely waive the copays of Medicare patients without determination of financial need. The Anti-Kickback Statute also extends to the payment of remuneration to physicians in exchange for patient referrals. The government alleged that, from at least August 2015 through May 2020, BioTek, a specialty pharmacy that offers drugs and infusion services, routinely waived the copayments of Medicare and TRICARE patients to induce those patients to purchase its drugs and services. Many of the specialty drugs offered by BioTek were expensive and required patients to pay large copays. The government alleged that BioTek sought to avoid deterring patients from purchasing its drugs and services by engaging in a scheme, orchestrated and implemented by Gadde and others, to routinely waive these large copays, without regard for whether the patients were experiencing financial hardship. Today’s settlement also resolves allegations that BioTek provided remuneration in the form of gifts, dinners and free administrative and clinical support services to physicians – in particular Dr. David Tabby, who operated a neurology practice in Bala Cynwyd, Pennsylvania – to induce those physicians to refer patients to BioTek. The government also alleged that Dr. Tabby knowingly solicited and accepted this remuneration in exchange for referring numerous patients to BioTek. Dr. Tabby has separately paid $480,000 to settle these allegations, based on his ability to pay. “Participants in federal health care programs may not offer improper inducements to physicians or patients to generate business,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects the government’s continuing commitment to protect the integrity of these programs and the healthcare decisions made by and on behalf of beneficiaries.” “BioTek allegedly provided improper physician inducements and covered up kickbacks for patient referrals by waiving co-pays,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania (EDPA). “These improper and corrupt business practices will not be tolerated in this District. BioTek’s alleged scheme, orchestrated and implemented by Gadde, Dr. Tabby, and others, to routinely waive these copays – without regard for whether the patients were experiencing financial hardship – ensured a steady revenue stream for BioTek and undermined patient care to citizens of this District. EDPA will continue to invest itself in the pursuit of health care providers who violate the law for personal gain.” “The Anti-Kickback Statute protects the financial integrity of federal healthcare programs and helps ensure that decisions about patient treatment are made on the basis of sound medical judgment rather than providers’ financial interests,” said U.S. Attorney David C. Weiss for the District of Delaware. “Kickbacks not only increase healthcare costs for all beneficiaries, they also violate the trust of patients. My office and the rest of the department will continue to pursue healthcare providers who put self-interest ahead of patient care and compliance with the law.” “Kickbacks impose hidden costs on the health care system and compromise medical decision-making,” said Special Agent in Charge Maureen R. Dixon for the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Alongside our law enforcement partners, HHS-OIG is committed to safeguarding the integrity of federal health care programs by, in part, holding individuals who unlawfully bill the programs accountable for their actions." “The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners to investigate healthcare fraud and protect TRICARE, the healthcare system for military members and their dependents,” stated Special Agent in Charge Patrick J. Hegarty of the Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General. “When health care companies pay physicians and submit false claims for improper referrals, they undermine the integrity of TRICARE and place an unnecessary financial burden on the program.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former BioTek employees Shantae M. Wyatt and Latoya Sparrow. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Wyatt and Sparrow will receive $4 million as their share of the settlement with BioTek and Gadde, and $91,200 as their share of the settlement with Dr. Tabby. The qui tam case is captioned United States of America ex rel. Wyatt et al. v. BioTek reMEDys, Inc. , No. 19-6069 (EDPA). The resolutions obtained in this matter were the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the U.S. Attorney’s Office for the District of Delaware, the HHS-OIG, the Office of Inspector General for the Office of Personnel Management, and the Defense Criminal Investigative Service. The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477). The matter was handled by Senior Trial Counsel Jennifer Cihon and Financial Analyst Craig Yamaoka of the Civil Division’s Commercial Litigation Branch, U.S. Attorney Jacqueline Romero, Assistant U.S. Attorneys Charlene Fullmer and Judith Amorosa, and Auditor George Niedzwicki for the Eastern District of Pennsylvania, and Assistant U.S. Attorney Dylan Steinberg for the District of Delaware. The claims asserted by the United States are allegations only and there has been no determination of liability. Settlement


title: Woman Sentenced to Over Six Years in Federal Prison for Back-to-Back Bank Robberies

body_text: INDIANAPOLIS- Shamiya Hunt, 37, of Indianapolis, Indiana, has been sentenced to 76 months in federal prison after pleading guilty to bank robbery and attempted bank robbery while on supervised release for a previous heroin trafficking conviction. According to court documents, on October 25, 2022, at approximately 9:30 a.m., Hunt entered a Chase Bank in Speedway, Indiana, approached the bank teller and gave her a note demanding that she put money in the bag, and if she did no one would get hurt. In response, the teller pressed her panic button alarm and walked away from her station. Hunt left the bank without receiving any money. An hour later, Hunt entered the Regions Bank located at 86th Street in Indianapolis. Again, she approached the bank teller and gave her a note demanding that she put the money in the bag so no one will get hurt. After receiving the note, the teller gave Hunt $750 in cash. As she left the Regions Bank, an employee saw her get into the back seat of a maroon Honda Accord with body damage and a busted taillight. FBI agents located the getaway car approximately an hour later and arrested her. During questioning, Hunt admitted to the attempted robbery of the Chase Bank and the robbery of the Regions Bank. Hunt was released from federal prison in March 2022, after serving a 10-year sentence for heroin trafficking. She was sentenced to 30 months in prison for violating the terms of her supervised release. U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Special Agent in Charge of the FBI’s Indianapolis Field Office Herbert J. Stapleton, made the announcement. “Robbing banks won’t get you some quick cash, it will get you time in federal prison,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “It is especially important to hold repeat offenders accountable, to protect the public from their ongoing refusal to abide by our laws. Thanks to the quick investigative work of the FBI, this defendant has been held accountable for her decision to rob and intimidate innocent bank employees simply doing their jobs.” This case was investigated by the FBI. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Hunt be supervised by the U.S. Probation Office for 3 years following her release from federal prison. U.S. Attorney Myers thanked Assistant United States Attorney Jeremy C. Fugate, who prosecuted this case. ###


title: Genomic Health Inc. Agrees to Pay $32.5 Million to Resolve Allegations Relating to the Submission of False Claims for Genomic Diagnostic Tests

body_text: Genomic Health, Inc. (GHI), a Delaware corporation headquartered in Redwood City, California, has agreed to pay $32.5 million to resolve allegations that it violated the False Claims Act by engaging in a nationwide scheme to improperly bill Medicare for certain laboratory tests used to diagnose and treat cancer patients. GHI is a wholly owned subsidiary of Exact Sciences Corporation, which acquired GHI in November 2019. GHI provides genomic-based clinical diagnostic tests. Its principal test, Oncotype DX®, is used for patients diagnosed with breast, colon and prostate cancer. The United States alleged that GHI perpetrated a scheme to evade Medicare’s 14-Day Rule, which governs the billing of genomic laboratory tests like Oncotype DX®. During some or all of the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for covered tests if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay in an inpatient or outpatient setting. For inpatient beneficiaries, such tests were covered under a lump-sum payment hospitals receive from the Medicare Program called the Diagnosis-Related Group (DRG) payment. For outpatient beneficiaries, Medicare’s 14-day Rule required (for most of the relevant time) tests ordered within 14 days of the patient’s discharge to be billed to the hospital but the hospital could then seek reimbursement from Medicare. However, if the test was performed more than 14 days after discharge from a hospital stay either in an inpatient or outpatient setting, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test. The United States contends that GHI improperly manipulated the 14-Day Rule in four ways: GHI sought direct reimbursement from the Medicare Program for claims on behalf of Medicare beneficiaries, when Oncotype DX® tests were ordered and submitted for testing within 14 days after an inpatient discharge. By submitting separate claims for these tests, GHI received direct payment for tests that should have been covered as part of the DRG payment to the hospital. GHI sought direct reimbursement from the Medicare Program for Oncotype DX® tests ordered within 14 days of a beneficiary’s outpatient procedure. By submitting separate claims for these tests, GHI received direct payment from Medicare for tests that should have been billed to the hospital. GHI conspired with and encouraged hospitals and physicians to cancel and reorder Oncotype DX® tests and failed to discourage providers who ordered tests within 14 days from canceling and reordering the tests after the 14-day time period had elapsed. GHI failed to send timely invoices to hospitals for laboratory services that fell under the 14 Day Rule and instead wrote off the unpaid fees for laboratory services, thereby violating the Anti-Kickback Statute. “Participants in federal health care programs must comply with applicable rules when providing and billing for their services,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will use the tools at its disposal to prevent companies from manipulating these programs for their own monetary benefit.” “This settlement rightly requires the payment of double damages caused by delayed tests for cancer patients for no reason other than to circumvent a Medicare requirement and allow improper payment to GHI,” said U.S. Attorney Breon Peace for the Eastern District of New York. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for those suffering from the ravages of cancer.” “Health care providers that unnecessarily delay services to evade Medicare requirements put their own profits over the well-being of vulnerable patients,” said Special Agent in Charge Naomi D. Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise patient well-being and the integrity of our federal health care programs.” The civil settlement includes the resolution of allegations brought in two separate actions filed against GHI under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, private parties can file an action on behalf of the United States and receive a portion of any recovery. The relator’s share from the proceeds of the settlement in this case will be $5,687,500. The qui tam cases are captioned United States ex rel. Caughron v. Genomic Health, Inc., Civil Action No. 16-CV-4038 (EDNY) and United States ex rel. Doe v. Genomic Health, Inc., et al., Civil Action No. 17-CV-4460 (EDNY). The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). The cases were handled by former Assistant U.S. Attorney Deborah B. Zwany and Assistant U.S. Attorney Anjna Kapoor for the Eastern District of New York and monitored by Senior Trial Counsel Sanjay M. Bhambhani of the Civil Division’s Commercial Litigation Branch. The HHS-OIG and the FBI assisted in the investigation of these cases. The claims resolved by the settlement are allegations only and there has been no determination of liability. Settlement


title: Ottumwa Man and Woman Sentenced for Defrauding the Internal Revenue Service, Iowa Workforce Development, and Numerous Citizens

component: USAO - Iowa, Southern

body_text: Des Moines, IA – On September 29, 2023, Thein Maung, 47, of Ottumwa, was sentenced to twelve years in prison after pleading guilty to forty-nine fraud- and tax-related charges. Phyo Mi, 21, of Ottumwa, was sentenced to nine years in prison after a jury convicted her of sixteen fraud-related charges. In all, Maung and Mi’s fraud resulted in nearly $4 million in losses to the Internal Revenue Service, Iowa Workforce Development, and numerous Iowa citizens. According to public court documents and evidence presented at trial, for several years, Maung and Mi ran a fraudulent tax-preparation business out of their family’s Ottumwa home. In exchange for a cash fee, Maung and Mi would prepare and file their customers’ tax returns. Maung and Mi primarily catered to immigrants and refugees who worked at meat-packing facilities in Iowa and who had little or no ability to read, write, or speak English. Without their customers’ knowledge or approval, Maung and Mi included fraudulent items on their customers’ federal tax returns, like false claims for residential energy credits, business-expense deductions, or moving-expense deductions for members of the United States Armed Forces. The effect of Maung and Mi including fraudulent items on the tax documents was to increase the refunds their clients received and increase Maung and Mi’s customer base. In all, from 2018 to 2022, Maung and Mi caused over 1600 tax returns to be filed from their residence. Those returns claimed over $3.5 million in fraudulent residential energy credits. It is estimated that from 2018 to 2022, Maung and Mi received over $200,000 in cash fees from their customers. In addition, on their customers’ returns, Maung and Mi sometimes directed that portions of the fraudulent refunds be sent to financial institution accounts accessible to Maung and Mi. As a result, Maung and Mi obtained nearly $50,000 in fraudulent tax refunds. Maung and Mi also offered to help customers with applying for unemployment benefits from Iowa Workforce Development. Without their customers’ knowledge or approval, Maung and Mi submitted materials to Iowa Workforce Development directing that their customers’ benefits payments be sent to financial institution accounts that Maung and Mi had access to. Maung and Mi obtained nearly $70,000 in fraudulent unemployment insurance benefits payments be sent from Iowa Workforce Development to their accounts, instead of to eligible claimants. At sentencing, Chief United States District Court Judge Stephanie M. Rose described Maung and Mi’s fraud as being elaborate and extensive, involving layers of subterfuge, and victimizing hundreds of vulnerable immigrants and refugees with little education and limited English fluency. Following their prison terms, Maung and Mi will be on supervised release for three years. There is no parole in the federal system. “This sentence should send a strong message to any return preparers who are looking to cheat innocent taxpayers and the U.S. government that a prison cell awaits them,” said Special Agent in Charge Thomas F. Murdock, IRS Criminal Investigation (CI), St. Louis Field Office. “Maung and Mi preyed on people who were vulnerable. CI special agents do not take this kind of fraud lightly. Our law enforcement partners worked diligently to help us bring these two to justice.” United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by Internal Revenue Service Criminal Investigation and the Ottumwa Police Department. Assistant U.S. Attorneys Kyle Essley and Laura Roan prosecuted the case.


title: Former First NBC Bank Officers and Former Borrower Sentenced for Bank Fraud Conspiracy

body_text: NEW ORLEANS – On September 28, 2023, United States District Judge Eldon E. Fallon sentenced WILLIAM J. BURNELL , age 73, of Kenner, ROBERT B. “BRAD” CALLOWAY , age 63, of Metairie, and FRANK J. ADOLPH , age 63, of New Orleans, announced U.S. Attorney Duane A. Evans. All three defendants previously pleaded guilty to bank fraud conspiracy for their role in the fraudulent scheme that led to the collapse and failure of New Orleans-based, First NBC Bank (Bank), in April 2017. BURNELL was sentenced to 48 months in prison, three years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon ordered a restitution hearing to be held at a later date. According to court documents, from 2006 through April 2017, BURNELL was the Bank’s Chief Credit Officer. He was responsible for the overall quality of the Bank’s lending function; the Bank’s credit policies and administration; the Bank’s loan recovery and collection efforts; and the Bank’s monitoring and managing of past due loans, including the approval of the Bank’s internal list of past-due loans. BURNELL was also responsible for compiling month-end reports, including lists of overdrawn borrowers and past-due loans. Nevertheless, BURNELL conspired with Bank President, Ashton J. Ryan, Jr., and others, to conceal material information and defraud the Bank. Among other things, BURNELL fraudulently risk rated loans to past due borrowers so new loans could be issued to them to conceal the borrowers’ past due status from the Board. CALLOWAY was sentenced to 30 months in prison, two years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon likewise ordered a restitution hearing to be held at a later date. According to court documents, CALLOWAY was the Bank’s Executive Vice President and specialized in tax credits. CALLOWAY and other bank officers, including Ryan and BURNELL , conspired to conceal the financial condition of bank borrower, Gary R. Gibbs, from Bank’s Board of Directors, auditors, and examiners. Among other things, they falsely stated in loan documents that Gibbs was able to pay his loans with cash generated by his businesses. They concealed from the Bank’s Board of Directors, auditors, and examiners that Gibbs was only making his existing loan payments by getting new loans from the Bank. ADOLPH was sentenced to 20 months in prison, two years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon ordered restitution in the amount of $5,706,279.62. According to court documents, ADOLPH was a borrower at the Bank, both individually and through various companies. One of these companies, Metro Rediscount, was a factoring company that purchased other companies’ accounts receivable. ADOLPH was habitually unable to pay his Bank loans. With Ryan’s knowledge, ADOLPH lied about Metro Rediscount’s assets on loan applications. As a result, Ryan was able to ensure ADOLPH received loans that kept him and his companies off the past due list. U.S. Attorney Evans said, “These sentences demonstrate our office’s commitment to prosecuting white collar crime. They also show that employees cannot use the defense that they were merely ‘following orders.’ Each citizen has an individual responsibility to follow the law.” U.S. Attorney Evans praised the work of the agencies that conducted this years-long investigation: the Federal Bureau of Investigation New Orleans Field Office; the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Regional Office; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, Miami Field Office. Assistant U.S. Attorneys Matthew R. Payne and Nicholas D. Moses of the Financial Crimes Unit, J. Ryan McLaren of the Appellate Unit, and Rachal Cassagne of the Narcotics Unit, are in charge of the prosecution.


title: Rhode Island Man Charged with Violating the Migratory Bird Treaty Act

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – A Rhode Island man has been charged by way of a federal criminal information with violating the Migratory Bird Treaty Act, having allegedly shot at, injured, and /or killed Red-Tailed and Cooper hawks in and around his property in an effort to protect squirrels, announced United States Attorney Zachary A. Cunha. It is alleged in charging documents that, between October 1, 2018, and April 18, 2021, Robert J. Ferreira, 64, of Portsmouth, repeatedly used a pump-action pellet air gun to shoot at hawks in his back yard. Ferreira is alleged to have told a U.S. Fish and Wildlife Service agent that he estimates that he shot at approximately 50-80 hawks, which he believed were a threat to squirrels that visited squirrel feeders on his property. According to court documents, on various dates neighbors reported hearing popping sounds from the area of Ferreira’s property that were consistent with the firing of a weapon, and found approximately eight injured and deceased hawks on or near Ferreira’s property. The Migratory Bird Treaty Act (MBTA) protects certain migratory birds, including the Red-Tailed hawk and Cooper hawk, and forbids hunting, capturing, or killing these birds unless authorized by permit. Ferreira is charged by way of a federal criminal information with four counts of hunting, taking, killing, or attempting to kill migratory birds, a violation of the Migratory Bird Treaty Act. He is scheduled to appear for his arraignment on the information before a magistrate judge on October 12, 2023. Hunting, taking, or killing, or attempting to kill migratory birds is a misdemeanor, punishable by up to 6 months of imprisonment and fine of up to $15,000. A federal criminal information is merely an accusation. A defendant is presumed innocent unless and until proven guilty. The case is being prosecuted by Assistant United States Attorney Denise M. Barton. The matter was investigated by U.S. Fish and Wildlife Service, Office of Law Enforcement. ###


title: Justice Department Awards Over $4.4 Billion to Support Community Safety

component: Office of Justice Programs (OJP)

body_text: WASHINGTON – The Justice Department announced that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies. Colorado will receive $70,830,033 in grants in 71 awards from the Department of Justice. “Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.” “This funding is good news for communities throughout Colorado,” said U.S. Attorney Cole Finegan. “I am pleased to announce that Colorado will receive nearly $71 million in grant funding and applaud these efforts to make Colorado a safer place to live.” The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges. “Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.” “The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.” “Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.” Grants will support five major community safety and justice priorities: Awards totaling more than $1 billion will promote safety and strengthen trust , helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country. More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders. Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse. More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization. Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims. In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards .


title: Dental Provider And Associated Individuals Agree To Resolve Allegations Of Improper Billing Of TennCare

body_text: KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Dr. Michael Sawaf and his affiliated company Premier Dental Group PLLC of Knoxville, f/k/a Orthodontic Designs by Michael Sawaf, PLLC (“PDG”), have agreed to pay $985,541 to resolve allegations that they knowingly and improperly submitted false claims for dental services to TennCare in violation of the False Claims Act (“FCA”) and the Tennessee Medicaid False Claims Act (“TMFCA”). Erin Ferdowsi and Reja Ferdowsi, both of whom were affiliated with PDG, also agreed to resolve similar allegations against them. TennCare prohibits billing for services that are not provided, upcoding claims to receive higher reimbursements to which a provider is not entitled, and billing for unnecessary services. TennCare also requires that dentists apply for and receive approval to participate in the TennCare program before billing for services rendered to beneficiaries. The credentialing process is intended to ensure that beneficiaries receive the highest quality of care from competent providers who have been vetted prior to rendering services. Dr. Sawaf owns and sees patients at PDG, a dental and orthodontics clinic located at 303 S. Concord Street, Suite 323, in Knoxville, TN. Erin and Reja Ferdowsi operated, managed, and/or worked at PDG. The settlement resolves allegations that, from January 1, 2016, through December 31, 2020, PDG knowingly submitted, or caused the submission of, false claims to TennCare for payment relating to various dental procedures. The settlement also resolves allegations that, between August 14, 2019, and September 11, 2019, PDG knowingly submitted, or caused the submission of, claims for payment to TennCare that falsely identified credentialed dentists as the rendering provider for services that were actually rendered by uncredentialed dentists who were ineligible to bill TennCare. This settlement is the result of a collaborative effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the Federal Bureau of Investigation, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation. The investigation that preceded the settlement was prompted by a lawsuit filed in 2020 under the qui tam or “whistleblower” provisions of the FCA and TMFCA, which permit a private individual (known as a “relator”) to sue on behalf of the government for false claims and to share in any recovery. The relators’ share of the recovery in this case is $182,325. Assistant U.S. Attorney Joseph C. Rodriguez represented the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability. ###


title: Genomic Health Inc. to Pay $32.5 Million to Resolve Allegations Relating to the Submission of False Claims for Genomic Diagnostic Tests

component: USAO - New York, Eastern

body_text: Breon Peace, United States Attorney for the Eastern District of New York, and Naomi D. Gruchacz, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of the Inspector General, New York Region (HHS-OIG) announced that the United States has reached a settlement with Genomic Health, Inc. (GHI) to resolve allegations that it violated the False Claims Act in an alleged nationwide scheme to improperly bill Medicare for laboratory tests known as “Oncotype DX®.” Under the terms of the settlement, GHI will pay $32.5 million for losses caused by GHI’s submission of false claims to the Medicare Program. “This settlement rightly requires the payment of double damages caused by delayed tests for cancer patients for no reason other than to circumvent a Medicare requirement and allow improper payment to GHI,” stated United States Attorney Peace. “We will continue to enforce Medicare rules to protect the program and its vital role in our health care system, especially for those suffering from the ravages of cancer.” Mr. Peace expressed his gratitude for the support of the United States Department of Health and Human Services for their assistance in investigating these important claims. “Health care providers that unnecessarily delay services to evade Medicare requirements put their own profits over the well-being of vulnerable patients,” stated HHS-OIG Special Agent-in-Charge Gruchacz. “With our law enforcement partners, HHS-OIG is committed to investigating potentially fraudulent billing that can compromise patient well-being and the integrity of our federal health care programs.” GHI is a Delaware corporation headquartered in Redwood City, California. GHI is a provider of genomic-based clinical diagnostic tests. Its principal test, Oncotype DX®, has been used for patients diagnosed with breast, colon and prostate cancer. GHI was acquired by Exact Sciences Corporation (“Exact”) in November 2019 and is a wholly-owned subsidiary of Exact. The United States contends that GHI perpetrated a scheme to evade Medicare regulations when submitting claims to the Medicare Program for its test to circumvent Medicare’s 14-Day Rule (which establishes which entity may bill Medicare for certain laboratory services). During the time period covered by the settlement, Medicare’s 14-Day Rule prohibited laboratories from separately billing Medicare for certain tests if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay either in an outpatient or inpatient setting. Such claims were required to be submitted by the hospital. However, if the test was performed more than 14 days after discharge, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test. The United States contends that GHI perpetrated its scheme in four ways: GHI sought direct reimbursement from the Medicare Program for claims on behalf of Medicare beneficiaries, when Oncotype DX® tests were ordered and submitted for testing within 14 days after an inpatient discharge. This caused the Medicare Program to incur additional costs beyond what it would have otherwise paid. GHI sought direct reimbursement from the Medicare Program for Oncotype DX® tests ordered within 14 days of a beneficiary’s out-patient procedure. GHI conspired with and encouraged hospitals and physicians to cancel and reorder Oncotype DX® tests and failed to discourage providers who ordered tests within 14 days from canceling and reordering the tests after the 14-day time period had elapsed. GHI failed to send timely invoices to hospitals for laboratory services that fell under the 14-Day Rule and instead wrote off the unpaid fees for laboratory services, thereby violating the Anti-Kickback Statute. The civil settlement includes the resolution of two actions brought under the qui tam or whistleblower provisions of the False Claims Act against GHI. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and reaches a monetary agreement with the defendant. The relator share from the proceeds of the federal settlement in this case will be $5,687,500. The qui tam cases are captioned United States ex rel. Caughron v. Genomic Health, Inc., Civil Action No. 16-CV-4038 (E.D.N.Y) and United States ex rel. Doe v. Genomic Health, Inc., et al., Civil Action No. 17-CV-4460 (E.D.N.Y.). The claims resolved by the settlement are allegations only and there has been no determination of liability. The government’s case was handled by former Assistant U.S. Attorney Deborah B. Zwany and Assistant U.S. Attorney Anjna Kapoor with assistance from Affirmative Civil Enforcement Auditor Michael Gambrell, Paralegal Specialist Loan Ngyuen, and Sanjay Bhambhani, Senior Trial Counsel, Fraud Section, Commercial Litigation Branch. The Office of Inspector General at the Department of Health and Human Services assisted in the investigation of these cases.