title: Marketers and Healthcare Providers in Texas, Virginia and South Carolina Agree to Pay Over $1.1M to Settle Laboratory Kickback Allegations

body_text: Two laboratory marketers — Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; three physicians — Dr. Abbesalom Ghermay, of Plano, Texas; Dr. Daniel Theesfeld, of Longview, Texas; and Dr. James Cook, of Richmond, Virginia; and medical practice owner Troy Belton, of Columbia, South Carolina, and associated entities, have agreed to pay a total of $1,137,914 to resolve False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute. The parties have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged schemes. “Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.” The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act. The Marketer Settlements The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia and Texas. Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey; Dallas, Texas; and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the health care providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for 10 years. John Bello and his marketing company, RiteRx4U LLC , agreed to pay $140,000 to resolve allegations that, from February 1, 2019, through February 28, 2021, they paid Dr. James Cook, of Richmond, Virginia, thousands of dollars in kickbacks to induce Dr. Cook to order testing from two clinical laboratories in Kenilworth, New Jersey, and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Dr. Cook’s referrals to these laboratories. The Healthcare Provider Settlements The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia and Texas. Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas. Dr. James Cook and his medical practice, Family Medical Centers, P.C. , agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey, and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories. Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC , agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas. Advantage Medical Group , an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton , agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey; Dallas, Texas; and Denton, Texas. “Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.” “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.” The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG. Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey handled the settlements. The United States has recovered over $53 million relating to conduct involving MSO kickbacks to health care providers, including False Claims Act settlements with 48 physicians. The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlements are allegations only. There has been no determination of liability. View the Naghshbandi Settlement here. View the Bello Settlement here. View the Cook Settlement here. View the AMG Settlement here. View the Theesfeld Settlement here. View the Ghermay Settlement here.


title: Marketers And Healthcare Providers In Texas, Virginia, And South Carolina Agree To Pay Over $1.1 Million To Settle Laboratory Kickback Allegations

component: USAO - New Jersey

body_text: NEWARK, N.J. – Two laboratory marketers, three healthcare providers, an outpatient clinic, and associated entities have agreed to pay a $1.14 million to resolve violations of the Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today. Shahram Naghshbandi, of Fort Worth, Texas, and John Bello, of Chesterfield, Virginia; and three physicians – Abbesalom Ghermay, of Plano, Texas, Daniel Theesfeld, of Longview, Texas, and James Cook, of Richmond, Virginia – and medical practice owner Troy Belton, of Columbia, South Carolina, agreed to settle False Claims Act allegations they took part in laboratory kickback schemes in violation of the Anti-Kickback Statute. “Kickbacks can harm taxpayer-funded healthcare programs and improperly influence healthcare providers’ medical decisions. Patients should always be able to rely on their medical professionals making decisions in the patients’ best interest, and not for any monetary reason. We will continue to pursue all those involved in illegal kickback schemes.” U.S. Attorney Philip R. Sellinger “Monetary inducements to healthcare providers undermine the integrity of taxpayer-funded healthcare programs and can improperly influence healthcare providers’ decision-making,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division said. “We will continue to hold accountable individuals, as well as companies, who disregard their legal obligations and participate in illegal kickback schemes.” “Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients,” said Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue working with law enforcement to investigate parties alleged to have violated the Anti-Kickback Statute.” The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The Anti-Kickback Statute ascribes liability to parties on both sides of an impermissible kickback arrangement. The settlements announced today resolve allegations that laboratory marketers and their companies paid or conspired to pay kickbacks to doctors, and that doctors and their companies received kickbacks in return for laboratory referrals. The alleged kickbacks resulted in the submission of false or fraudulent laboratory testing claims to Medicare in violation of the False Claims Act. The Marketer Settlements The settlements announced today resolve allegations that two marketers paid kickbacks in violation of the Anti-Kickback Statute to induce healthcare providers to make referrals to laboratories in New Jersey, Florida, Virginia, and Texas. Shahram Naghshbandi agreed to pay $400,000 to resolve allegations that he entered into illegal schemes to pay kickbacks to doctors for laboratory referrals. From August 2018 through July 2022, in return for Naghshbandi and his marketing company arranging for and/or recommending that several healthcare providers order laboratory testing from three clinical laboratories in Kenilworth, New Jersey, Dallas, Texas, and Orlando, Florida, these laboratories allegedly paid commissions to Naghshbandi’s marketing company based on reimbursements from the healthcare providers’ laboratory testing referrals. To induce these healthcare providers to order testing, Naghshbandi allegedly paid them thousands of dollars in kickbacks disguised as investment distributions from purported management service organizations (MSOs). In addition to the monetary settlement, Naghshbandi has been excluded from federal healthcare programs for ten years. John Bello and his marketing company, RiteRx4U LLC , agreed to pay $140,000 to resolve allegations that, from February 1, 2019 through February 28, 2021, they paid Dr. James Cook, of Richmond. Virginia, thousands of dollars in kickbacks to induce Cook to order testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Bello and RiteRx4U allegedly sought to disguise these payments as purported investment returns when they were in fact based on the volume and value of Cook’s referrals to these laboratories. The Healthcare Provider Settlements The settlements announced today also resolve allegations that healthcare providers received kickbacks in violation of the Anti-Kickback Statute in return for making referrals to laboratories in New Jersey, Virginia, and Texas. Dr. Abbesalom Ghermay agreed to pay $228,482 to resolve allegations that, from January 2016 to November 2018, he received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas. Dr. James Cook and his medical practice, Family Medical Centers, P.C. , agreed to pay $206,987 to resolve allegations that, from February 2019 to February 2021, they received thousands of dollars in payments from marketer RiteRx4U LLC in return for ordering testing from two clinical laboratories in Kenilworth, New Jersey and Chester, Virginia. Cook and his practice allegedly received thousands of dollars in payments from the marketer that were disguised as purported investment returns but in fact were based on the volume and value of Cook’s testing referrals to the two laboratories. Dr. Daniel Theesfeld and his medical practice, H8 Pain Management Center of Texas PLLC , agreed to pay $99,125 to resolve allegations that, from April 2017 to September 2018, they received thousands of dollars in payments from a purported MSO in return for ordering testing from a laboratory in Houston, Texas. Advantage Medical Group , an outpatient clinic in Columbia, South Carolina, and its owner, Troy Belton , agreed to pay $63,320 to resolve allegations that from June 2017 to July 2022, they received thousands of dollars in payments from two purported MSOs in return for ordering testing from three laboratories in Kenilworth, New Jersey, Dallas, Texas, and Denton, Texas. The parties have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged schemes. The settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG. The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section). The government’s pursuit of these matters 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 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlements are allegations only, and there has been no determination of liability. naghshbandi.settlementagreement.pdf ghermay.settlementagreement.pdf cook.settlementagreement.pdf bello.settlementagreement.pdf amg.settlementagreement.pdf theesfeld.settlementagreement.pdf


title: Oil Companies to Pay Record Civil Penalty for Violating Antitrust Pre-Transaction Notification Requirements

component: Antitrust Division

body_text: The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia against crude-oil producers XCL Resources Holdings LLC (XCL), Verdun Oil Company II LLC (Verdun) and EP Energy LLC (EP). The lawsuit alleges that the three companies violated the pre-transaction notification and waiting period requirements of the Hart-Scott-Rodino Act of 1976 (HSR Act), following Verdun’s $1.4 billion purchase agreement for EP on July 26, 2021. At the time of transaction, Verdun was under common management with XCL. According to the complaint , the three companies failed to observe a required waiting period following such a large transaction, in which federal agencies can investigate a potential merger before it closes. Instead, EP allowed Verdun and XCL to assume operational and decision-making control over significant aspects of its day-to-day business operations, including a stoppage to EP’s planned well-drilling and development at a time when the U.S. crude-oil market faced significant supply shortages and consumers faced soaring gasoline prices. Simultaneous to filing its complaint, the department filed a proposed settlement, subject to approval by the court, under which the defendants have agreed to pay a $5.6 million civil penalty to resolve the lawsuit, a record civil penalty for illegal pre-merger coordination in violation of the HSR Act. Further details about this matter are described in the FTC’s press release issued today, and in the complaint and competitive impact statement . Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register . Any person may submit written comments concerning the proposed settlement during a 60-day comment period via email to bccompliance@ftc.gov or by post to Maribeth Petrizzi, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8416, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.


title: United States Attorney Talbert Announces His Resignation

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — U.S. Attorney Phillip A. Talbert has announced his resignation effective midnight on Jan. 11, 2025. Talbert has served as the Presidentially appointed U.S. Attorney for the Eastern District of California for two and a half years. “It has been the honor of my lifetime to serve as the United States Attorney for the Eastern District of California, the district where I served as a federal prosecutor for two decades,” said Talbert. “I thank President Biden for nominating me to the position and am grateful to the late Senator Dianne Feinstein, Senator Alex Padilla, and Attorney General Merrick Garland for their support and confidence in me to lead this office of dedicated public servants. It has been a privilege to work alongside the talented attorneys and staff of this office as well as with our federal, state, and local law enforcement partners to protect the over 8 million residents who live in our district, to seek justice on behalf of victims, to safeguard civil rights, and to uphold the rule of law. After my departure, I am confident the office will continue to perform at a high level of excellence and will continue to demonstrate its commitment to pursuing justice in a fair, ethical, and nonpartisan manner, with a clear understanding of the need to maintain the public’s confidence and trust.” The United States Attorney serves as the chief federal law enforcement officer and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras and has almost 100 attorneys and almost 100 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield. Upon Mr. Talbert’s resignation, Michele M. Beckwith will become the Acting U.S. Attorney for the Eastern District of California pursuant to the Vacancies Reform Act. Ms. Beckwith is a veteran federal prosecutor who served as First Assistant U.S. Attorney to Mr. Talbert and earlier as Executive Assistant U.S. Attorney and Criminal Chief. U.S. Attorney Talbert has served the Department of Justice for more than 31 years, and over the last 14 years he has made a lasting mark on the Eastern District of California through his steady, team-oriented, and innovative leadership. He first assumed the role of First Assistant U.S. Attorney in the office in 2011, and later led the office for almost two years in 2016-2017 as the Acting and Interim U.S. Attorney. He returned to the First Assistant U.S. Attorney position in 2017, and then again led the office as the Acting and Interim U.S. Attorney in 2021-2022 before being confirmed as the Presidentially appointed U.S. Attorney in June 2022. His stalwart leadership throughout changes in Administrations and within the U.S. Attorney’s Office embodies the office’s commitment to excellence and its enforcement of federal law without bias and unaffected by partisanship. At the national level, Mr. Talbert also served the U.S. Department of Justice through multiple subcommittees and working groups, including the Civil Rights Subcommittee and its Hate Crimes Working Group, the Controlled Substances Subcommittee and its Prevention Working Group, the Office of Management and Budget Subcommittee, and the Resource Allocation Working Group. Previously, Mr. Talbert served as an Assistant U.S. Attorney in this district, first in the Narcotics and Violent Crime Unit in Sacramento where he prosecuted drug trafficking cases and then as the Chief of Appeals and Training in which he supervised the office’s appellate practice and trained incoming Criminal Division Assistant U.S. Attorneys. Mr. Talbert also taught professional responsibility for four years as an adjunct professor at the U.C. Davis School of Law. Prior to joining the U.S. Attorney’s Office, Mr. Talbert worked as a Trial Attorney in the Criminal Division of the U.S. Department of Justice in Washington, D.C. after being hired in the Attorney General’s Honors Program; as an attorney at the law firm of Stoel Rives LLP in Seattle, Washington, in the firm’s Litigation Department and White Collar Defense Practice Group; and as an Assistant Counsel and Associate Counsel at the Office of Professional Responsibility of the U.S. Department of Justice where he investigated claims of prosecutorial misconduct and other allegations made against Department of Justice attorneys. He also served as a law clerk to the Honorable David R. Thompson (deceased), Circuit Judge, United States Court of Appeals for the Ninth Circuit. Mr. Talbert received his Bachelor of Arts, magna cum laude in Economics, from Harvard University; his Master of Economics from the University of Sydney, Australia, which he attended on a Rotary Foundation Scholarship; and his Juris Doctor from the UCLA School of Law where he was the Chief Articles Editor for the UCLA Law Review. Notable criminal cases the office has handled under U.S. Attorney Talbert’s leadership include: Criminal prosecutions of major frauds, including cases against the two co-founders and co-CEOs of Bitwise Industries, who received 11-year and 9-year sentences for a $115 million fraud centered on a failed Fresno-based tech startup; a former congressman charged with fraud in conducting his private business dealings; the owner of a chain of supermarkets who allegedly employed undocumented workers then used their immigration status to avoid paying for overtime; and a former local water district manager convicted of a long-running scheme to divert and sell managed water. Investigations and cases undertaken in concert with federal, state, and local law enforcement partners to reduce violent crime, including prosecution of MS-13 and Aryan Brotherhood defendants who committed and directed murders, other violent crimes, and drug trafficking crimes, and the prosecution of illegal firearms trafficking schemes, including a ring alleged to have illegally brought over 500 guns from Georgia to the Eastern District of California and another unrelated scheme that allegedly resulted in the sale of over 100 guns used in crimes across California and neighboring states. Cases targeting individuals who prey upon and sexually exploit children, including multiple defendants who extorted minors online for child sexual abuse material, multiple defendants who used hidden recording devices to surreptitiously film children in various stages of undress, and a defendant sentenced to 30 years for the sex trafficking of a minor. The indictment of two individuals, leaders of the Terrorgram Collective, for allegedly soliciting over Telegram the murder of federal officials and mass hate crimes as well as other federal crimes. The investigation and indictment of individuals operating major drug trafficking organizations in and through the district, including one case that led to seizures of 12,900 pounds of methamphetamine, 23 kilograms of fentanyl, and 35 firearms, and another case involving counterfeit pills containing fentanyl trafficked by a defendant who called himself the “M30 king of Fresno.” Cases targeting individuals who defrauded the state and federal government out of millions of dollars of pandemic relief funds intended for people and companies legitimately needing the assistance, including a former gang member serving a life sentence for murder in state prison who allegedly attempted a $550 million COVID relief tax credit fraud scheme while he was simultaneously directing a methamphetamine trafficking organization operating outside of prison walls. Cases protecting the environment, including the indictment of a group of defendants who allegedly conspired to create, distribute, and use a sophisticated software system to obtain passing smog check tests for vehicles that would otherwise fail, in violation of the Clean Air Act, and cases against others who distributed defeat devices that unlawfully interfered with the emissions control systems in trucks. The indictment of eleven “burglary tourists” alleged to have used blowtorches and cellphone jammers to commit a string of bank robberies in multiple states. Criminal prosecutions of law enforcement officers violating victims’ civil rights while acting under color of law, including a state prison guard who assaulted two inmates, resulting in one’s death, and later with fellow officers engaged in an attempted coverup, and a police officer alleged to have abused his official position to sexually assault women. Cases against perpetrators of violent crimes, including sexual assaults, in Yosemite National Park. Prosecution and conviction of 20 individuals in a series of cases involving corruption at the California Department of Motor Vehicles. Notable civil cases the office has handled under U.S. Attorney Talbert’s leadership include: Multiple cases of health care fraud, including the following: Health Net Federal Services paid more than $97 million for overstated billings to the Veteran’s Administration; Nor-Cal Pharmacies Inc. was shut down and ordered to pay $1 million for dispensing oxycodone and hydrocodone based on invalid prescriptions; Oroville Hospital is to pay $10.25 million for paying kickbacks to physicians in order to increase hospital admissions and admitting patients for whom they knew inpatient care was not medically necessary; and Dr. Francis Lagattuta and his clinic agreed to pay $11.4 million for billing for allegedly medically unnecessary skin biopsies, spinal cord stimulation surgeries, and urine drug testing. Recoveries for damage to federal lands based on negligently caused forest fires, including a $117 million payment by PG&E relating to the 2018 Camp Fire. Multiple civil settlements for fraud in COVID relief programs. A case resulting in a $3.1 million settlement for the manufacture and sale of illegal devices to circumvent emission control systems of diesel trucks. The opening of a civil rights investigation with the Civil Rights Division into allegations of sexual abuse of inmates by staff at California’s largest women’s prison. Throughout his time in the office, Mr. Talbert participated in and supported the development of the office’s community outreach program, especially in the area of interfaith outreach, working to build strong community bonds among various groups and between those groups and law enforcement. He launched the Fresno Area Hate Crimes Task Force, modeled on the successful Sacramento Area Hate Crimes Task Force which he also led, and he worked to increase the public’s awareness of the threat and impact of hate crimes, the importance of reporting them to law enforcement, and the need for different parts of the community and law enforcement to stand up to acts of hate together. Within the federal court family, he ensured that the U.S. Attorney’s Office took a leadership role through its innovative Special Emphasis Program to raise awareness of issues impacting all parts of the community and to further develop leadership opportunities for women lawyers. He also helped create the Sacramento Region Diversity Career Fair, the first legal career fair in the area connecting diverse law students and newer lawyers with prospective employers, and he helped establish the fair as an annual event for three years running.


title: Former Track Star Sentenced to 20 Years in Prison for Firearms Offenses

component: USAO - Florida, Southern

body_text: MIAMI – A felon in possession of a firearm and ammunition was sentenced to 240 months in prison, for attempting to shoot a victim on his front porch and confronting a tow truck driver with a second firearm a week later. On Jan. 3, U.S. District Court Judge David S. Leibowitz imposed an upward variance of 105 months and sentenced Olivier Ricardy Alexandre, 28, to 240 months in prison. Alexandre previously pled guilty to the two-count indictment, charging him with possession of ammunition by a convicted felon, and possession of a firearm and ammunition by a convicted felon. On Feb. 15, 2023, Alexandre, formerly a track and field athlete, was sentenced to probation in Warren County, Ky., on felony charges related to the trafficking of marijuana. Less than a month later, in Miami-Dade County, on March 13, 2023, Alexandre ran up to a victim, who was entering his home after work, and fired at least 18 rounds of ammunition at the victim without reloading. The Miami-Dade Police Department (MDPD) Forensic Services Division linked the shell casings from that shooting to three prior shootings in Miami-Dade County, including an incident on Oct. 9, 2022, when the same victim was shot with the same gun. On March 21, 2023, officers with the Plantation Police Department conducted surveillance on Alexandre’s home in anticipation of executing a search warrant, when Alexandre ran outside and retrieved a handgun with an extended drum magazine to confront a tow truck driver who was repossessing a vehicle. Alexandre was promptly arrested. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, Acting Inspector in Charge Steven Hodges of the U.S. Postal Inspection Service (USPIS), Miami Division and Director Stephanie V. Daniels of MDPD made the announcement. ATF, USPIS and MDPD investigated this case with the assistance of the Plantation Police Department and Broward Sheriff’s Office. Assistant U.S. Attorney Hayden P. O’Byrne prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-20354. ###


title: Indictment Charges Norwich Man on Federal Supervised Release with Drug and Gun Offenses

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JAVON MORSE, 29, of Norwich, with cocaine distribution and firearm possession offenses. According to court documents and statements made in court, on December 13, 2017, Morse was sentenced in Bridgeport federal court to 60 months of imprisonment and four years of supervised release for trafficking cocaine. He was released from prison in January 2021. On October 14, 2024, while on federal supervised release, Morse was arrested by Norwich Police and charged with multiple offenses stemming from his alleged possession of nearly a kilogram of cocaine, narcotic pills, items used to process and package narcotics, four handguns, loaded high capacity magazines, and other items. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. The indictment, which was returned on December 17, 2024, charges Morse with one count of possession with intent to distribute 500 grams or more of cocaine, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and one count of unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years. Morse faces additional penalties if he is found in violation of the conditions of his supervised release. Morse has been detained in federal custody since December 12, 2024. He appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This investigation is being conducted by the Norwich Police Department, the Connecticut State Police, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn .


title: Virginia contractor to pay over $2.6M to settle allegations of falsely obtaining small business contracts

component: Civil Division

body_text: NEWPORT NEWS, Va. – R&K Enterprises Inc. (R&K), headquartered in Newport News, has agreed to pay over $2.6 million to resolve allegations under the False Claims Act and the common law that the company represented that it was eligible for certain small business set-aside contracts when it did not meet the program rules to qualify as a small business. The United States alleged that R&K represented and certified in its bid that it met the size standard for the General Services Administration’s One Acquisition Solution for Integrated Services Small Business Pool 1 Contract — measured in average revenue over the previous three years from the date of the bid — when it did not. To appear to meet the size standard, R&K allegedly novated a contract to another company, K&P Management Inc. (K&P), and represented the two companies were not affiliated. The United States alleged that, under the applicable rules, the two companies were affiliated based on several factors, including that the wife of R&K’s owner owned K&P, all of K&P’s purported revenue came from R&K, the two companies shared executives, and R&K exercised control over K&P. As a result, the United States contended that R&K should have included K&Ps revenue in R&K’s calculation of its size. “My office is committed to identifying, investigating and eradicating attempts to exploit programs intended to protect competition for contracts,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “The complex, multi-agency investigation that culminated in this settlement exemplifies the importance of strong partnerships that maximize our expertise and authority to effectively enforce the law.” “Small business set-aside contracts assist small businesses to compete,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies fraudulently obtain contracts reserved for small businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.” “We will work with law enforcement partners to investigate allegations of small business fraud, including companies that misrepresent their status to get federal contracts,” said Deputy Inspector General Robert C. Erickson of the General Services Administration (GSA). The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Division’s Commercial Litigation Branch, Fraud Section with assistance from the GSA Office of Inspector General, Small Business Administration and Department of Transportation Office of Inspector General. Assistant U.S. Attorney Clare Wuerker for the Eastern District of Virginia and Trial Attorney Danielle Rowan of the Justice Department’s Civil Division investigated the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Owner of Addiction Treatment Chain That Billed for Recovery Services Not Provided Sentenced to More Than Eight Years in Federal Prison  in Health Care Fraud Conspiracy

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – The owner of a now defunct Rhode Island-based chain of addiction treatment centers who, as described in court documents “embezzled and cheated his way through life,” has been sentenced to more than eight years in federal prison for defrauding Medicare, Medicaid, and other health insurers out of millions of dollars, announced United States Attorney Zachary A. Cunha. Michael Brier, 62, of Newton, MA, previously admitted to a federal judge that he and his company, Recovery Connections Centers of America, Inc. (RCCA), short changed patients suffering from substance abuse disorders in Rhode Island and Massachusetts by failing to provide them with required counseling sessions and treatment that were an important part of their care, while simultaneously billed Medicare, Medicaid, and other health care payors for those sessions. In many cases, RCCA routinely billed for 45-minute counseling sessions, while in fact providing sessions that were only 5-10 minutes or less in length. “Michael Brier held out his business as a lifeline to vulnerable patients - men and women fighting to turn their lives around and escape the grim toll of addiction, but instead used it as a front for fraud that shortchanged those patients and lined his own pockets at taxpayer’s expense,” remarked U.S. Attorney Zachary Cunha. “Instead of providing the care these patients required and deserved, Brier directed his own employees not to provide the sessions that these patients needed, that his own therapists wanted to provide, and that the law required, while at the same time wildly overbilling federal and private health care payors. Today’s sentence should leave no doubt that those who attempt to feed their own greed from funds intended to care for those in need will be held accountable.” “Brier and RCCA orchestrated a fraud scheme that not only robbed taxpayer funds from Medicare and Medicaid, but also undermined the health of vulnerable patients who sought help for their addiction,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s sentencing should serve as a stern reminder that those who seek to exploit our nation’s health care system at the expense of patients and taxpayers will be brought to justice.” “Today’s sentence holds this career criminal accountable for capitalizing on the opioid crisis by defrauding taxpayer-funded federal health care programs out of millions of dollars and leaving the patients who came to his clinics deprived of treatment,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “Michael Brier is a liar, a cheat, and the mastermind of this sophisticated scheme, and the FBI and our partners are gratified we could shut him down, along with his chain of addiction treatment centers, which were little more than a front for fraud.” As described in a criminal complaint filed in this matter, under the guise of running recovery clinics that supposedly provided much-needed medical and therapy services to men and women in Rhode Island and Massachusetts who needed help in their struggles with addiction, the defendants shortchanged their patients, providing them with little to no therapy or support, all the while billing Medicare and other insurers as if they had fully served their patients. For example, Brier and RCCA billed the government or insurance providers for 45 minutes sessions when, in fact, patients were actually seen for less than 15 minutes - in some cases substantially less than that. One counselor was known as the “five-minute queen” because the counseling sessions would last that long and no longer. In another instance, an employee was equipped with a bell that they would ring to ensure that the flow of patients moved along briskly. Briar and RCCA previously admitted that they caused a fraudulent application to be submitted to Medicare which, among other things, misrepresented and concealed the role that Brier was playing in the business and failed to disclose Brier’s 2013 criminal conviction for federal tax crimes, which was relevant to Medicare’s consideration of the application; Brier was sentenced to 27 months incarceration by a federal judge as a result of that 2013 conviction. In this most recent matter, Brier was sentenced today by U.S. District Court Judge Mary S. McElroy to 98 months of incarceration to be followed by three years of supervised release and ordered to pay restitution in the amount of $3,515,100. At the government’s request, the court ordered Brier to forfeit approximately one million dollars contained in various bank and investment accounts, his interest in a beachfront property in Caracol Beach, Panama, and two luxury vehicles. RCCA was sentenced by U.S. District Court Judge Mary S. McElroy to one year probation and ordered to pay restitution in the amount of $3,515,100. The case was prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard, with the assistance of Assistant United States Attorney Milind M. Shah. The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Department of the Attorney General for their assistance in the investigation. ###


title: Florida Woman Sentenced for Laundering Millions of Dollars from Romance Scams

body_text: A Florida woman was sentenced today to 30 months in prison for her role in a money laundering conspiracy connected to romance scams that defrauded American victims. Cristine Petitfrere, 30, of Miramar, Florida, was sentenced after admitting to personally laundering millions of dollars as part of her participation in the conspiracy. Petitfrere helped to funnel large sums of money from victims of romance scams into the hands of her overseas co-conspirators, retaining a portion as payment for her services and transferring the rest. Romance scams target unsuspecting individuals, many of whom are seeking companionship online, and involve fraudsters who create fake personas to build relationships with victims. The fraudsters then convince victims to send money, often under false pretenses such as emergency situations or investments. These schemes not only cause significant financial losses, but also deeply impact the lives of victims. Petitfrere pleaded guilty to conspiracy to commit money laundering in the Southern District of Florida in September 2024. According to her plea agreement, Petitfrere personally laundered over $2.7 million of criminal proceeds. As part of her sentence, Petitfrere was ordered to forfeit $203,815.59 in proceeds that she personally received from the offense. “Romance scams are a growing threat to Americans, particularly to the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to vigorously pursue those who help facilitate these criminal enterprises, whether they work on the frontlines of deception or behind the scenes.” The FBI Miami Field Office investigated the case. Trial Attorneys Matthew A. Robinson and Lauren M. Elfner of the Civil Division’s Consumer Protection Branch are prosecuting the case. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . Elder fraud complaints may be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov .


title: Local trafficker sentenced for having firearm while dealing cocaine and marijuana

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 28-year-old Donna resident has been sentenced for utilizing a firearm in furtherance of drug trafficking activity, announced U.S. Attorney Alamdar S. Hamdani. Roberto Segura Jr. pleaded guilty Oct. 1, 2024. U.S. District Judge Drew B. Tipton has now ordered Segura to serve 60 months in federal prison followed by 5 years of supervised release, On July 24, 2024, authorities conducted a search warrant at Segura’s residence. At that time, they discovered marijuana, over 400 grams of cocaine and body armor within the home. Authorities also found a firearm in Segura’s bedroom next to the body armor. Segura admitted he was in possession of the firearm to protect himself during his drug trafficking activity. Segura will remain in custody pending transfer to a Bureau of Prisons facility to be determined in the near future. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Alamo Police Department conducted the joint investigation. Assistant U.S. Attorney Cahal P. McColgan prosecuted the case as part of the joint federal, state and local Project Safe Neighborhoods ( PSN ) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.


title: Michigan Farmer To Pay $87,500 To Settle Allegations He Wrongfully Obtained Crop Insurance And Farm Benefits

component: USAO - Michigan, Western

body_text: GRAND RAPIDS – U.S. Attorney for the Western District of Michigan Mark Totten today announced that David G. Zelmer of Niles, Michigan, has agreed to pay $87,500 to resolve allegations that he violated the False Claims Act by obtaining federal crop insurance coverage and Farm Service Agency (FSA) benefit payments for crops he did not farm. “Michigan farmers depend on federal programs to provide economic security,” said U.S. Attorney Mark Totten . “But the wellbeing of these programs depends on farmers telling the truth and playing by the rules. My office is committed to working with our law enforcement partners to investigate allegations of false claims to these federal programs.” The United States alleges that Zelmer owned and farmed land in Berrien County but entered into a lease agreement with another farmer in 2015 in which he leased certain tracts of that land to the other individual to farm. This lease agreement continued through 2017. The United States alleges that, despite leasing those farm tracts to the other farmer, Zelmer certified that he was the sole producer of the crops on those farm tracts when seeking benefit payments from the FSA in crop years 2015, 2016, and 2017, when he was not. The United States further alleges that Zelmer certified that he was the sole producer of the crops on those same farm tracts when obtaining federal crop insurance coverage from the Federal Crop Insurance Corporation, when he was not. “The U.S. Department of Agriculture, Office of Inspector General is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act,” said Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General . “Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from which they were intended. We are thankful to the U.S. Attorney’s Office and USDA’s Risk Management Agency for their partnership on this joint investigation, and OIG will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.” The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan and USDA-OIG and USDA’s Risk Management Agency. Assistant United States Attorney Andrew J. Hull prosecuted this case. The claims resolved by the settlement are allegations only, and there has been no determination of liability. # # #


title: Justice Department Sues Six Large Landlords for Algorithmic Pricing Scheme that Harms Millions of American Renters

body_text: Attorneys General of Illinois and Massachusetts Join Suit Against RealPage and Apartment Landlords, Bringing Total State and Commonwealth Co-Plaintiffs to 10 The Justice Department, together with its state co-plaintiffs, filed an amended complaint today in its antitrust lawsuit against RealPage, to sue six of the nation’s largest landlords for participating in algorithmic pricing schemes that harmed renters. The amended complaint alleges the landlords — Greystar Real Estate Partners LLC (Greystar); Blackstone’s LivCor LLC (LivCor); Camden Property Trust (Camden); Cushman & Wakefield Inc and Pinnacle Property Management Services LLC (Cushman); Willow Bridge Property Company LLC (Willow Bridge) and Cortland Management LLC (Cortland) — participated in an unlawful scheme to decrease competition among landlords in apartment pricing, harming millions of American renters. Together, these landlords operate more than 1.3 million units in 43 states and the District of Columbia. The Attorneys General of Illinois and Massachusetts joined the amended complaint as co-plaintiffs, increasing the total number of State and Commonwealth co-plaintiffs to 10. At the same time, the Justice Department filed a proposed consent decree with landlord Cortland that requires it to cooperate with the government, stop using its competitors’ sensitive data to set rents and stop using the same algorithm as its competitors without a corporate monitor. “While Americans across the country struggled to afford housing, the landlords named in today’s lawsuit shared sensitive information about rental prices and used algorithms to coordinate to keep the price of rent high,” said Acting Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action against RealPage and six major landlords seeks to end their practice of putting profits over people and make housing more affordable for millions of people across the country.” The amended complaint alleges that the six landlords actively participated in a scheme to set their rents using each other’s competitively sensitive information through common pricing algorithms. Along with using RealPage’s anticompetitive pricing algorithms, these landlords coordinated through a variety of means, including: Directly communicating with competitors’ senior managers about rents, occupancy, and other competitively sensitive topics. In one example, Greystar supplied Camden with information not only about very recent renewal rates, but also its approach to pricing for the upcoming quarter, its acceptance of RealPage’s pricing recommendations, use of concessions and competitively sensitive information about occupancy. Likewise, executives at Camden and LivCor communicated over the course of months about their pricing strategies, including plans for certain price increases. Regularly conducting “call arounds.” During these discussions, euphemistically referred to as “market surveys,” property managers called or emailed competitors to share, and sometimes discuss, competitively sensitive information about rents, occupancy, pricing strategies and discounts. Participating in “user groups” hosted by RealPage. For instance, landlords discussed via user groups how to modify the software’s pricing methodology, as well as their own pricing strategies. In one example, LivCor and Willow Bridge executives participated in a user group discussion of plans for renewal increases, concessions and acceptance rates of RealPage rent recommendations. Sharing information with competitors about parameters in RealPage’s software. As an example, at the request of Willow Bridge’s director of revenue management, Greystar’s director of revenue management supplied its standard auto-accept parameters for RealPage’s software, including the daily and weekly limits and the days of the week for which Greystar used “auto-accept.” The Justice Department also announced a proposed consent decree that, if approved by the court, would resolve its claims against Cortland, a landlord that manages over 80,000 rental units in 13 states. Under the proposed consent decree, Cortland would cooperate in the Justice Department’s investigation and litigation and be barred from, among other things: Using competitors’ competitively sensitive data to train or run any pricing model; Using third-party software or algorithms to price apartments without the supervision of a court-appointed monitor; and Soliciting, disclosing or using any competitively sensitive information with any other property manager as part of setting rental prices or generating rental pricing recommendations. As required by the Tunney Act, the proposed consent decree, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decree during a 60-day comment period to Chief, Technology and Digital Platforms Section, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest. Co-plaintiffs in the case are the Attorneys General of California, Colorado, Connecticut, Illinois, Massachusetts, Minnesota, North Carolina, Oregon, Tennessee and Washington. Greystar is headquartered in Charleston, South Carolina; LivCor and Cushman & Wakefield (whose residential property management business formerly operated independently as Pinnacle) are headquartered in Chicago; Willow Bridge (formerly known as Lincoln Residential) is headquartered in Dallas; Camden is headquartered in Houston; and Cortland is headquartered in Atlanta. All manage multifamily apartment buildings; several own some or all of the properties under their management. Proposed Final Judgment - US et al. v. RealPage Inc.pdf Amended Complaint - U.S. et al. v. RealPage Inc..pdf


title: City Man Sentenced to Five Years in Prison for Setting Fire to West Philadelphia Building in May 2020

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

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Tyrone Wise, 34, of Philadelphia, Pennsylvania, was sentenced today by United States District Court Judge Timothy J. Savage to 60 months in prison and three years of supervised release for setting fire to a West Philadelphia building. In September, Wise pleaded guilty to a one-count indictment charging him with malicious damage by means of fire of a building used in interstate commerce. He admitted that, on May 31, 2020, at about 8:49 p.m., amid both lawful protests and unlawful civil disturbances occurring in Philadelphia, he intentionally set fire to the SunRay Drugs Pharmacy located on the first floor of 25 South 60th Street in West Philadelphia. The blaze caused extensive fire, water, and smoke damage to the pharmacy on the first floor and throughout the remainder of the building, which included a basement, and apartments on the second and third floors. The fire resulted in $1.2 million in damage and caused the SunRay Drugs at that location to close. “Tyrone Wise’s actions were incredibly dangerous,” said U.S. Attorney Romero. “He set this fire with no regard for the two apartments upstairs and any people who might be in them, the potential for the flames to spread to adjacent buildings, or the risks to first responders who would have to fight the blaze. Arson threatens lives and communities, and my office will continue to work with our investigative partners to prosecute these offenders and hold them fully accountable.” “Tyrone Wise took advantage of the lawlessness of the moment to torch this drug store and extensively damage people’s apartments for no reason,” said Eric DeGree, Special Agent in Charge of the ATF’s Philadelphia Field Division. “Arson not only hurts our communities with property damage, but also wrecks opportunity and puts people in danger of injury and death. In cooperation with our law enforcement partners, we will continue to track down and prosecute arsonists in Philadelphia for the safety and prosperity of our city.” The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Kevin Jayne.


title: Violent Waterbury Gang Member Sentenced to 35 Years in Federal Prison

body_text: DAYQUAIN SINISTERRA, also known as “Quan,” 27, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 420 months of imprisonment, followed by three years of supervised release, for offenses stemming from his participation in the 960 gang, a violent Waterbury street gang. Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Maureen T. Platt, State’s Attorney for the Waterbury Judicial District; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; and Waterbury Police Chief Fernando C. Spagnolo. According to court documents and statements made in court, in an effort to address drug trafficking and related violence in Waterbury, the FBI, ATF, and Waterbury Police have been investigating multiple Waterbury-based groups, including the 960 gang. On September 14, 2021, a federal grand jury in Hartford returned a 36-count indictment charging Sinisterra and 15 other 960 gang members with racketeering, narcotics trafficking, firearm possession, murder, attempted murder and assault, and obstruction of justice offenses. On March 13, 2024, Sinisterra pleaded guilty to one count of racketeering conspiracy, six counts of attempted murder and assault with a dangerous weapon in aid of racketeering, and three counts of carrying and using a firearm during and in relation to a crime of violence. Sinisterra specifically admitted that he and other 960 members were engaged in violent activity and conspired to shoot and murder members of rival gangs, including: On September 21, 2018, in retaliation for the murder of an associate, Sinisterra and other 960 members participated in drive-by shootings of occupied residences on Lounsbury Street and Scott Road in Waterbury. On October 6, 2018, in a drive-by shooting, Sinisterra and other gang members attempted to murder individuals believed to be members of a rival gang, which resulted in gunshot wounds to an individual. On October 11, 2018, in an effort to murder rival gang members, Sinisterra and other gang members participated in a drive-by shooting that resulted in the death of an innocent bystander, 30-year-old Fransua Guzman, and the paralysis of a second victim. On November 1, 2018, Sinisterra shot a rival gang member. On November 18, 2018, Sinisterra and other gang members participated in a drive-by shooting of rival gang members, which resulted in gunshot wounds to two individuals. Sinisterra has been detained since November 21, 2018. This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, Waterbury Police Department, ATF, and U.S. Marshals Service, with the assistance of the Southington Police Department, Watertown Police Department, New Milford Police Department, Connecticut State Police, Connecticut Department of Correction, Connecticut Forensic Science Laboratory, and the DEA Laboratory. The case is being prosecuted by Assistant U.S. Attorneys Geoffrey M. Stone, John T. Pierpont, Jr. and Natasha M. Freismuth, and Supervisory Assistant State’s Attorney Don E. Therkildesen, Jr. and Deputy Assistant State’s Attorney Alexandra Arroyo, who were cross-designated as Special Assistant U.S. Attorneys in this matter. This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) and Organized Crime Drug Enforcement Task Forces (OCDETF) programs. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn . OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Former Indiana Police Lieutenant Sentenced for Federal Excessive Force and Obstruction of Justice Charges

component: Civil Rights Division

body_text: A former Lieutenant with the New Castle, Indiana, Police Department was sentenced today to 151 months in prison for using excessive force against people in custody and obstructing justice by attempting to deceive investigators. On Oct. 4, 2024, a federal jury convicted Aaron Jason Strong, 47, of three counts of deprivation of rights under color of law and one count of witness tampering. At trial, evidence introduced by the government established that Strong had intentionally used excessive force against people in police custody on multiple occasions. “The severe sentence imposed on this former law enforcement official should send a clear message: ‘street justice’ has no place in 21st-century policing and violators will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The vicious and lawless abuse that Aaron Strong perpetrated has no place in modern law enforcement. This sentence reflects the senseless cruelty of the defendant’s conduct, the serious physical injuries inflicted on victims and the harms to society when those entrusted with public authority arrogate to themselves the power to mete out summary punishment.” “Aaron Strong viciously beat, stomped, and shot three defenseless men with no lawful justification — causing serious injuries including a fractured spine,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “After good officers horrified by these abuses reported his actions, Strong lied in an attempt to cover up his crimes. The vast majority of police serve the public honorably, and when criminals like Aaron Strong violate their oaths and brutalize the public, an already difficult and dangerous profession grows even more so. Our U.S. Attorney’s Office and the Justice Department, together with our partners at the FBI and Indiana State Police, are committed to doing the work necessary to earn and keep the trust of the public. The serious prison sentence imposed here demonstrates that there are consequences for police brutality, because no one is above the law.” “This sentence underscores the FBI’s commitment to holding law enforcement officers accountable when they violate the rights of individuals,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “Law enforcement officers take an oath to serve and protect the public and when that trust is violated, it erodes the integrity of those who serve honorably every day. The FBI and our law enforcement partners will continue to protect the civil rights of the public and ensure those who abuse their power are held responsible.” Evidence presented at trial established that, in August 2019, then-Lieutenant Strong responded to another officer’s report of a foot chase. As Strong arrived, the suspect stopped running, put his hands up, said “I’m done” and lowered himself to the ground. As another officer approached to take the suspect into custody, Strong ran up and struck the suspect at least 12 times with a metal police baton, nearly striking a fellow officer. Other involved officers promptly reported the incident, and the Indiana State Police were called in to conduct an independent criminal investigation. During a meeting with the State Police investigator, Strong gave a false account of the incident in which he minimized his own use of force and exaggerated the danger posed by the suspect. Strong was also convicted of using excessive force against two men being detained pending trial in a low-security annex of the Henry County, Indiana, jail. While assisting correctional officers with a dormitory search, Strong stomped on the head of a detainee who was complying with commands to lie on the ground. A few moments later, Strong approached a second inmate, who was kneeling, not moving, with his back to Strong, and shot him point-blank in the back with a less-lethal “beanbag” round, which Strong had been trained could cause death or serious bodily injury when used at short ranges. The impact from the round fractured the detainee’s spine. The FBI Indianapolis Field Office and Indiana State Police investigated the case, with assistance from the New Castle Police Department. Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana are prosecuting the case.


title: Chairman and CEO of MoviePass’ Parent Company Pleads Guilty to Securities Fraud Scheme and Conspiracy

component: Criminal Division

body_text: A Florida man pleaded guilty today in the Southern District of Florida to charges of defrauding and conspiring to defraud investors in two public companies. According to court documents, Theodore Farnsworth, 62, of Miami, engaged in schemes to defraud investors in Helios & Matheson Analytics Inc. (HMNY), a publicly traded Florida- and New York-based company that was the parent of MoviePass Inc. (MoviePass), and Vinco Ventures Inc. (Vinco), a publicly traded New York-based company. From August 2017 through March 2019, Farnsworth and his co-conspirators made materially false and misleading representations relating to HMNY’s and MoviePass’ business and operations to artificially inflate the price of HMNY stock and to attract new investors. At the time, Farnsworth was HMNY’s chairman and CEO. From November 2020 through September 2024, Farnsworth and his co-conspirators used the same strategy to defraud Vinco investors. Farnsworth also briefly served as Vinco’s CEO. “Theodore Farnsworth — formerly the CEO of two publicly traded companies — repeatedly lied to the public to artificially inflate these companies’ stock prices, defraud investors, and enrich himself and his co-conspirators,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “He concealed that MoviePass’ subscription model was a money-losing gimmick and falsely claimed that HMNY used artificial intelligence to monetize MoviePass’ subscriber data, among other misrepresentations. The Criminal Division is committed to protecting investors from criminals who engage in fraudulent schemes, including those that employ AI washing.” “Theodore Farnsworth’s plans and promises for MoviePass seemed too good to be true — they were in fact part of a securities fraud scheme,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “As he admitted today, Farnsworth’s ploys and boasts were actually lies and misrepresentations designed to boost stock prices. The FBI will continue to ensure anyone attempting to commit fraudulent schemes at the expense of investors is held accountable in the criminal justice system.” MoviePass was a privately held company that offered subscribers a certain number of movie tickets per month at a flat monthly fee. HMNY acquired a majority ownership interest in MoviePass, after which MoviePass introduced a new “unlimited” plan that purported to allow new subscribers to see unlimited movies in theaters with no blackout dates for a flat monthly fee of $9.95 (the “unlimited” plan). Farnsworth and his co-conspirators falsely claimed that MoviePass’ “unlimited” plan was tested, sustainable, and would be profitable or break even on subscription fees alone. However, Farnsworth knew that the “unlimited” plan was a temporary marketing gimmick to attract new subscribers and, in turn, to artificially inflate HMNY’s stock price and attract new investors. In reality, MoviePass lost money from the “unlimited” plan. In addition, Farnsworth falsely claimed that HMNY possessed and used technologies — such as “big data” and “artificial intelligence” capabilities — to generate revenue by analyzing and monetizing the data MoviePass collected from subscribers. But Farnsworth knew HMNY did not possess these capabilities to monetize MoviePass’ subscriber data and had incorporated any such technologies into the MoviePass application. The charges in this case, originally brought in 2022, represent one of the Criminal Division’s first “AI washing” cases. Farnsworth also made false and misleading representations about the positive impact that multiple revenue streams (other than subscription fees) were having on MoviePass’ profitability and self-sufficiency. At the time, however, Farnsworth knew MoviePass did not have non-subscription revenue streams that would make MoviePass self-sufficient or otherwise offset the losses MoviePass experienced as a result of the unprofitable “unlimited” plan. Additionally, Farnsworth falsely claimed that MoviePass’ cost of goods, as reflected in the number of tickets each subscriber purchased using their subscription, was naturally declining over time consistent with publicly stated expectations. In fact, Farnsworth and his co-conspirators directed MoviePass employees to implement numerous tactics to prevent certain subscribers from using the purportedly “unlimited” service to try to ease MoviePass’ cash shortfalls. These tactics included directing MoviePass employees to “throttle” subscribers who most frequently used the service to buy movie tickets, thereby inhibiting their ability to use the MoviePass service. In addition to the fraud scheme related to HMNY and MoviePass, Farnsworth conspired with others to unjustly enrich themselves by falsely inflating the price of Vinco stock. Specifically, Farnsworth and his co-conspirators concealed from investors the true facts relating to the business and diverted the proceeds of the conspiracy for their personal use and benefit. Farnsworth and his co-conspirators took steps to conceal the conspiracy from regulators, law enforcement, investors, and the media. Farnsworth pleaded guilty to one count of securities fraud and one count of conspiracy to commit securities fraud. He faces a maximum penalty of 20 years in prison on the securities fraud count and five years in prison on the conspiracy to commit securities fraud count. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI New York Field Office is investigating the case. Trial Attorneys Lauren Archer, Kate McCarthy, and Matthew Reilly of the Criminal Division’s Fraud Section are prosecuting the case. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section provided substantial assistance with the investigation and prosecution.


title: Batesburg-Leesville Woman Sentenced to Federal Prison for Wire Fraud Conspiracy

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Julia Renae Mullinax, 43, of Batesburg-Leesville, was sentenced to 13 months in federal prison after pleading guilty to conspiracy to commit wire fraud. Evidence presented to the court showed that Mullinax participated in a wire fraud conspiracy to defraud Lowe’s Home Improvement by purchasing items on the commercial credit accounts of local businesses while posing as the authorized representative of those accounts. Mullinax and others perpetuated this fraudulent scheme at multiple Lowe’s stores in South Carolina and other states in the southeast from 2023 to 2024. United States District Judge Joseph F. Anderson, Jr. sentenced Mullinax to 13 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Additionally, Mullinax was ordered to pay Lowe’s $47,234.10 in restitution. This case was investigated by the United States Secret Service and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Scott Matthews is prosecuting the case.


title: Campaign Treasurer for Candidate for Brooklyn Borough President Pleads Guilty to Scheme to Defraud New York City’s Campaign Finance Board

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Brooklyn, Erlene King pleaded guilty to wire fraud in connection with her attempt to steal funds from New York City’s Campaign Finance Board (CFB). Today’s proceeding was held before United States District Judge Carol Bagley Amon. When sentenced, King faces up to 20 years in prison. Breon Peace, United States Attorney for the Eastern District of New York and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea. “Instead of playing by the rules New York City established for free and fair elections, the defendant attempted to use the city’s matching funds program to give the campaign an unfair advantage,” stated United States Attorney Peace. “My Office and our law enforcement partners are focused on rooting out corruption in our electoral system to ensure that all candidates are operating on a level playing field.” Mr. Peace expressed his appreciation to the CFB for its cooperation and assistance during the investigation. “Erlene King deprived New York City residents of a fair election by attempting to manipulate hundreds of thousands of dollars in donor contributions to unlawfully favor her candidate,” stated FBI Assistant Director in Charge Dennehy. “King abused her position as a campaign treasurer and attempted to profit from exploiting a system designed to represent the voices of the city. The FBI remains steadfast in its mission to eliminate any source of corruption polluting our city’s democratic processes.” CFB Overview The CFB oversees and administers a publicly funded campaign finance system in connection with municipal elections in New York City. This includes a “matching funds program” that provides eligible candidates with public funds based on the number and amount of certain donor contributions. According to the CFB, the program “empowers New Yorkers in every neighborhood to make their voices heard in city elections.” In addition, the CFB maintains that “by encouraging candidates to raise small-dollar contributions from average New Yorkers, the program increases engagement between voters and those who seek to represent them.” Candidates running for the Office of the Brooklyn Borough President in the 2021 election cycle were eligible to participate in the CFB’s matching funds program if they met certain criteria. Among other things, to be eligible to receive public funds, candidates were required to meet a two-part fundraising threshold. Specifically, a candidate had to collect a minimum number of donations and raise a minimum amount of money from New York City residents before the CFB paid any matching funds. For candidates who ran for the Office of the Brooklyn Borough President during the 2021 election cycle, candidates received up to $8 in matching funds for each $1 of eligible contributions, up to $175 per contributor. If a candidate received an eligible contribution of $175, then that candidate could collect up to $1,400 in matching funds. In total, the matching funds program provided up to $1,457,777 in public matching funds to a candidate for the Office of the Brooklyn Borough President. Because campaigns for Brooklyn Borough President during the 2021 election cycle needed to raise at least $50,000 in eligible contributions to receive any matching funds, any candidate who was eligible to receive matching funds necessarily received at least $400,000 in matching funds from the CFB. The Scheme King served as the campaign treasurer for a candidate who ran in a primary for the Office of the Brooklyn Borough President during the 2021 election cycle (Candidate #1). King admitted that she obtained fraudulent donations for the purpose of inducing the CFB to provide matching funds to Candidate #1’s campaign. A number of those contributions, which were obtained at King’s direction, were fraudulent nominee contributions made in the names of individuals who either did not personally fund the contributions or were later reimbursed for their contributions ( i.e. , straw donors). For example, King used CashApp to send money to intermediaries and instructed them to distribute the money to fund contributions from straw donors to Candidate #1. Other fraudulent contributions were made in the names of individuals whose identities were stolen and who had not personally contributed to Candidate #1. The CFB ultimately determined that the campaign submitted fictitious records and did not pay any public matching funds to the campaign. The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Eric Silverberg are in charge of the prosecution, with the assistance of Paralegal Specialist Rachel Friedman. The Defendant : ERLENE KING Age: 71 Brooklyn, NY E.D.N.Y. Docket No. 24-CR-374 (CBA)


title: Former New Castle Police Lieutenant Sentenced to 12.5 Years in Federal Prison for Repeatedly Using Excessive Force and Attempted Coverup

body_text: INDIANAPOLIS— Aaron Jason Strong, 47, a former Lieutenant with the New Castle Police Department, was sentenced today to 151 months in prison for using excessive force against people in custody and obstructing justice by attempting to deceive investigators. On Oct. 4, 2024, a federal jury convicted Strong of three counts of deprivation of rights under color of law and one count of witness tampering. At trial, evidence introduced by the government established that Strong had intentionally used excessive force against people in police custody on multiple occasions. “The severe sentence imposed on this former law enforcement official should send a clear message: ‘street justice’ has no place in 21st-century policing and violators will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The vicious and lawless abuse that Aaron Strong perpetrated has no place in modern law enforcement. This sentence reflects the senseless cruelty of the defendant’s conduct, the serious physical injuries inflicted on victims and the harms to society when those entrusted with public authority arrogate to themselves the power to mete out summary punishment.” “Aaron Strong viciously beat, stomped, and shot three defenseless men with no lawful justification—causing serious injuries including a fractured spine,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “After good officers horrified by these abuses reported his actions, Strong lied in an attempt to cover up his crimes. The vast majority of police serve the public honorably, and when criminals like Aaron Strong violate their oaths and brutalize the public, an already difficult and dangerous profession grows even more so. Our U.S. Attorney’s Office and the Department of Justice, together with our partners at the FBI and Indiana State Police, are committed to doing the work necessary to earn and keep the trust of the public. The serious prison sentence imposed here demonstrates that there are consequences for police brutality, because no one is above the law.” Evidence presented at trial established that, in August 2019, then-Lieutenant Strong responded to another officer’s report of a foot chase. As Strong arrived, the suspect stopped running, put his hands up, said “I’m done” and lowered himself to the ground. As another officer approached to take the suspect into custody, Strong ran up and struck the suspect at least twelve times with a metal police baton, nearly striking a fellow officer. Other involved officers promptly reported the incident, and the Indiana State Police were called in to conduct an independent criminal investigation. During a meeting with the State Police investigator, Strong gave a false account of the incident in which he minimized his own use of force and exaggerated the danger posed by the suspect. Strong was also convicted of using excessive force against two men being detained pending trial in a low-security annex of the Henry County, Indiana, jail. While assisting correctional officers with a dormitory search, Strong stomped on the head of a detainee who was complying with commands to lie on the ground. A few moments later, Strong approached a second inmate, who was kneeling, not moving, with his back to Strong, and shot him point-blank in the back with a less-lethal “beanbag” round, which Strong had been trained could cause death or serious bodily injury when used at short ranges. The impact from the round fractured the detainee’s spine. The FBI Indianapolis Field Office and Indiana State Police investigated the case, with assistance from the New Castle Police Department. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett and Trial Attorney Alec Ward of the Justice Department’s Civil Rights Division, who prosecuted this case. If you have concerns regarding Civil Rights violations in the Southern District of Indiana, you can now report them to our office via email USAINS-CivilRights@usdoj.gov or using our online form. ###


title: Delaware Man Pleads Guilty to Participation in International Sextortion and Money Laundering Scheme

body_text: A Delaware man pleaded guilty today in connection with his participation in a widespread international sextortion and money laundering scheme. According to court documents, from May 2020 and through December 2022, Mohamed Diarra, 33, of Wilmington, participated in an international, financially motivated sextortion and money laundering scheme. Financially motivated sextortion refers to the practice of fraudulently obtaining a victim’s sexual photographs or videos, threatening to distribute the victim’s sexual material to others, and demanding that the victim pay money to avoid the threatened distribution. Diarra conspired with co-conspirators in Côte d’Ivoire who sextorted victims and utilized a network of Delaware-based “money mules,” including Diarra, to assist with laundering the victims’ illegally obtained funds. As a “money mule” for the conspiracy, Diarra collected victims’ funds into his own financial accounts, including accounts with peer-to-peer (P2P) payment transfer services and into financial accounts in others’ names which he controlled. Diarra also provided other co-conspirators with access to his accounts and recruited other individuals to serve as money mules to receive and transfer funds at his direction. Diarra and his co-conspirators used a variety of methods to collect and “cash out” the victims’ funds, including by receiving funds into the money mules’ P2P accounts they controlled, transferring funds to linked U.S. bank accounts, withdrawing the funds as cash, or transferring them to other money mule co-conspirators. Diarra and his co-conspirators also used a variety of methods to further transfer the victims’ funds, after they had been converted to cash or goods, to co-conspirators and others who were located in Côte d’Ivoire and elsewhere overseas. Diarra pleaded guilty to one count of conspiracy to engage in money laundering. He faces a maximum penalty of 20 years in prison. A sentencing hearing will be set at a later date, when a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division; U.S. Attorney David C. Weiss for the District of Delaware; and Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division made the announcement. The FBI is investigating the case, with assistance from the Justice Department’s Office of International Affairs and the government of Côte d’Ivoire. Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section, Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Briana Knox for the District of Delaware are prosecuting the case. If you, your child, or someone you know is being exploited via sextortion, contact your local FBI field office , call 1-800-CALL-FBI (1-800-225-5324), or report it online at the Internet Crime Complaint Center (IC3) . Additional resources can found at Financially Motivated Sextortion — FBI . For more information about a related financially motivated sextortion case and if you believe you are a victim in this particular case, please also visit www.justice.gov/criminal/criminal-vns/case/united-states-v-hadja-fanta-kone-siaka-ouattara-sidi-diakite-almamy-moustapha-diaby .


title: Justice Department Secures Forfeiture of Two Miami Condos for Violations of Russia-Related U.S. Sanctions

component: Criminal - Money Laundering, Narcotics and Forfeiture Section

body_text: The Department of Justice announced today that, pursuant to a court-ordered default judgment and final order of forfeiture entered on Jan. 7, it has secured the forfeiture of two luxury Miami condominiums that were maintained, transferred, and leased in violation of U.S. sanctions against Russian national Viktor Perevalov. The forfeited properties have a combined value of approximately $1.8 million. The judgment is the result of a civil forfeiture complaint filed by the United States in February 2024 seeking the forfeiture of the properties. “Today’s successful forfeiture once again demonstrates that the attempt to hide assets behind nominees and shell companies is a risky short-term game with real long-term costs,” said Co-Director Michael Khoo of the Justice Department’s Task Force KleptoCapture. “The prosecutors and agents who investigated and brought this case are the proof that the United States has the people, the tools, and the will to vigorously enforce our nation’s sanctions programs.” As alleged in the complaint, Viktor Perevalov and Valeri Abramov were co-founders of VAD, AO, a Russia-based construction company responsible for constructing the Tavrida Highway in the Russian-occupied Crimea Region of Ukraine. On Jan. 26, 2018, pursuant to Executive Order 13685, the U.S. Department of the Treasury Office of Foreign Assets Control (OFAC) sanctioned Victor Perevalov, Valeri Abramov, VAD, AO, and others following the Russian invasion of Crimea. OFAC added Perevalov, Abramov, and VAD, AO to the Specially Designated Nationals (SDN) and Blocked Persons List. OFAC never issued a license, which was required for anyone to transact with, or on behalf of, Perevalov and Abramov. Perevalov was also re-designated by OFAC on Dec. 18, 2024, pursuant to E.O. 14024, for operating in the construction sector of the Russian economy. From in or around January 2018 through in or around March 2023, the condominiums were maintained, transferred, and leased in violation of the International Emergency Economic Powers Act (IEEPA). Specifically, on or about June 14, 2018, a Miami real estate agent retained to manage the properties transferred the two condominiums owned by Perevalov to a limited liability company set up to obfuscate Perevalov’s interest in the properties. Following the transfer, the properties continued to be leased, generating proceeds used to maintain them. The FBI Miami Field Office investigated the case with assistance from the Sunny Isles Beach Police Department. Assistant U.S. Attorneys Joshua Paster, Marx P. Calderón, and Eli Rubin for the Southern District of Florida, Trial Attorneys Sinan Kalayoglu and Lindsay Gorman of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Joshua E. Kurland of the National Security Division’s Counterintelligence and Export Control Section prosecuted the civil action. This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that, beginning in 2014, the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the Department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.


title: Pittsburgh Man Pleads Guilty to Cocaine Trafficking Charge

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of possession with the intent to distribute more than 500 grams of cocaine, United States Attorney Eric G. Olshan announced today. David Loveings, age 71, of Pittsburgh, Pennsylvania pleaded guilty to one count before United States District Judge Christy Criswell Wiegand. In connection with the guilty plea, the court was advised that Loveings was pulled over by officers from the Pittsburgh Bureau of Police for various traffic violations. The traffic stop eventually led to a search of Loveings’ vehicle and the seizure of approximately 927 grams of cocaine. Judge Wiegand scheduled sentencing for May 13, 2025. The law provides for a total sentence of not less than five years in prison and not more than forty years in prison, a fine of not more than $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government. The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Loveings.