title: Responsible Parties Reach Settlement for More Than $33 Million to Restore Natural Resources in Portland Harbor

component: Energy and Natural Resources Division

body_text: The Justice Department lodged two proposed consent decrees yesterday in federal court among Tribal, state and federal natural resource trustees and over 20 potentially responsible parties (PRPs) at the Portland Harbor Superfund Site in Oregon. The agreements, with an estimated restoration value of approximately $33.2 million, require the PRPs to pay cash damages or purchase credits in projects to restore salmon and other natural resources that were lost due to contamination released from the responsible parties’ facilities into the Willamette River. This settlement includes more than $600,000 in damages for the public’s lost recreational use of the river, and restoration and monitoring of culturally significant plants and animals. The settlement also includes additional funds to pay costs incurred by the Portland Harbor Natural Resource Trustee Council for assessing the harm to the injured natural resources. The Trustee Council is comprised of representatives from the Five Tribes, which includes the Confederated Tribes of the Grand Ronde Community of Oregon, Confederated Tribes of Siletz Indians, Confederated Tribes of the Umatilla Indian Reservation, Confederated Tribes of the Warm Springs Reservation of Oregon and the Nez Perce Tribe, along with representatives of the U.S. Department of the Interior (DOI), National Oceanic and Atmospheric Administration (NOAA) and State of Oregon. “This settlement represents years of hard work by the Portland Harbor natural resource trustees and responsible parties who cooperated to restore the harm caused by those parties’ contamination,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The resulting restoration projects funded by these agreements will provide permanent ecological benefits to help restore the biodiversity of the Willamette River system.” “The Confederated Tribes of the Grand Ronde Community of Oregon, Confederated Tribes of Siletz Indians, Confederated Tribes of the Umatilla Indian Reservation, Confederated Tribes of the Warm Springs Reservation of Oregon and the Nez Perce Tribe wholly support this settlement,” said the Five Tribes. “Contamination has uniquely affected tribal members because of their cultural use of and relationship with affected natural resources in and around the Portland Harbor Superfund Site. The Five Tribes believe the collaborative process of this settlement represents the best path forward for restoring Portland Harbor natural resources for the benefit of both current and future generations.” “The trustees are very pleased that the responsible parties in this settlement have advanced restoration over litigation. The large-scale restoration projects facilitated by this settlement will help address the most important habitat needs of fish and wildlife injured by contamination in Portland Harbor,” said Director Curt Melcher of Oregon’s Department of Fish and Wildlife. “We will continue our settlement discussions with the remaining responsible parties who are participating in the early settlement initiative so we can achieve additional permanent restoration of natural resources. Partnering with restoration project developers has already produced on-the-ground restoration even prior to today’s settlement.” The use of restoration credits in four natural resource projects that were developed in partnership with private developers is a novel and critical feature of the settlement. Restoration credits are like ecological “shares” in a restoration project, and the natural resource trustees decide how many “shares” each project is worth. Defendants in the settlement can purchase restoration credits from the restoration project developers instead of paying cash to resolve the ecological injury portion of their liability. Using this approach at Portland Harbor has produced on-the-ground restoration much sooner and at less cost than traditional cash-only settlements. Collectively, the restoration value in these projects is the largest natural resource credit bank at any Superfund Site in the country. The four restoration projects selling restoration credits – Alder Creek, Harborton, Linnton Mill and Rinearson Natural Area – provide habitat for juvenile Chinook salmon listed under the Endangered Species Act and of tremendous cultural significance to the Five Tribes. The projects will also restore habitat for other fish and wildlife injured by contamination in Portland Harbor – like bald eagle, mink and lamprey – as well as Tribally significant native plants – like camas, wapato and sweetgrass. Construction is complete and habitat development is underway at all four projects, which are expected to provide ecological benefits in perpetuity, will be permanently protected from development and will receive long-term stewardship. The agreements result from an early settlement collaboration between the natural resource trustees at the Portland Harbor Superfund Site and a group of PRPs who participated in that effort. Negotiations are continuing with other PRPs that also are participating in the trustees’ early settlement initiative. If the trustees reach agreements in those ongoing negotiations, it could include additional cash settlements or restoration credit purchases in the four restoration projects. On behalf of the trustees on the Trustee Council, the Environment and Natural Resources Division’s Environmental Enforcement Section filed the complaint and lodged the proposed consent decrees in the U.S. District Court for the District of Oregon. The proposed decrees resolve the natural resource damages allegations of the United States, Oregon and the Five Tribes for releases of contamination from the PRPs’ identified facilities. Alleged violations are in connection with Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act; the Oil Pollution Act and the Clean Water Act. The settlement is subject to a 45-day public comment period and final court approval. It is available for viewing at www.justice.gov/enrd/consent-decrees . Please refer to the upcoming Federal Register notice for instructions on submitting any public comments on the settlement. Additional information is available on the Portland Harbor Natural Resource Trustee Council website at www.fws.gov/portlandharbor/news/two-consent-decrees-lodged .


title: International Fugitive Wanted for Embezzling Approximately $10 Million Arrested by the FBI in Miami

component: USAO - New Hampshire

body_text: CONCORD – A Guatemalan man has been arrested by the Federal Bureau of Investigation (FBI) following an international manhunt, announces U.S. Attorney Jane E. Young and Jodi Cohen, Special Agent in Charge of the FBI, Boston Division. Roberto Montano, a/k/a Jorge Roberto Montano Midence, a/k/a Roberto Pellegrini, a/k/a Alberto Yardi, 57, was arrested yesterday at the Miami International Airport. He will make an initial appearance in the United States District Court for the Southern District of Florida at a later time. Montano was charged with wire fraud by complaint in 2015 and indictment in 2021 by the District of New Hampshire. According to the charging documents, Montano is a citizen of Guatemala who managed two forestry projects in Guatemala for a New Hampshire-based investment adviser between 2007 and 2014. Beginning in approximately late 2009, Montano’s management company, Green Millennium, embezzled the projects' funds by (1) diverting cash and concealing the diversions using altered bank and financial statements; (2) mortgaging the Projects' properties without authorization and investing the proceeds in business ventures; and (3) stealing teak forestry subsidies paid by the Guatemalan government. Authorities believe the total loss of this fraud may be approximately $10 million. After Montano was alerted to an investigation into the fraud in 2014, he fled the United States for Guatemala. Eventually, he moved to Nicaragua, where he has been living for several years under an alias. Since 2014, the FBI has been actively engaged in efforts to locate and arrest Montano and his wanted poster has now been updated to reflect his capture: https://www.fbi.gov/wanted/wcc/jorge-roberto-montano-pellegrini/download.pdf . Montano is also wanted in Guatemala for an alleged embezzlement scheme. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the amount stolen, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The FBI is leading the investigation. Valuable assistance was provided by the International Criminal Police Organization (INTERPOL), Republic of Guatemala, the FBI’s Legal Attaché in Panama City, Panama, the FBI Miami Field Office, Department of Homeland Security, the U.S. State Department, specifically the U.S. Embassy in Managua, Nicaragua and the Embassy of Italy in Managua, Nicaragua. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###


title: Justice Department Announces Civil Rights Investigations into Conditions in South Carolina Jails

component: USAO - South Carolina

body_text: WASHINGTON – The Justice Department announced today that it has opened two separate civil investigations into the conditions in the Sheriff Al Cannon Detention Center in Charleston, South Carolina, and the Alvin S. Glenn Detention Center in Columbia, South Carolina. Based on an extensive review of publicly available information and information gathered from stakeholders, the department has found significant justification to open these investigations. The department received credible allegations that incarcerated persons have died from use of force, gross medical neglect or suicide in the Sheriff Al Cannon Detention Center. The department also received credible allegations that the Alvin S. Glenn Detention Center is structurally unsafe and that there have been sexual assaults, homicides and prevalent violence resulting in serious injuries. “People confined in local jails across our country do not abandon their civil and constitutional rights at the jailhouse door,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We are launching these investigations to determine whether the jail conditions in two of South Carolina’s largest counties comply with basic constitutional standards. We are committed to ensuring that people held inside jails and prisons are not subjected to excessive force, violent conditions, inadequate medical and mental health care, and other dangerous physical conditions while in the custody of their local government.” “Our office is committed to protecting the constitutional rights and ensuring the safety of all people in South Carolina, including those being detained or incarcerated in county detention centers,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “We look forward to working with the Civil Rights Division to ensure the safety of those housed in these facilities.” These facilities are both local jails, separately operated and funded by Charleston and Richland Counties. The Sheriff Al Cannon Detention center is operated by the Charleston County Sheriff’s Office and Alvin S. Glenn Detention Center is operated by the County through a Director. The investigation of the Sheriff Al Cannon Detention Center will examine medical and mental health care, use of isolation and use of force. It will also examine whether the Charleston County Sheriff’s Office discriminates against persons with disabilities inside the Detention Center. At the Alvin S. Glenn Detention Center, the department will examine living conditions and whether the detention center fails to protect incarcerated individuals from violence. Before this announcement, officials from the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for South Carolina notified Charleston and Richland County officials, and officials in both counties have pledged to cooperate with the investigation. The department has not reached any conclusions regarding the allegations in this matter. Both investigations will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Al Cannon Detention Center investigation will also be conducted under the Americans with Disabilities Act (ADA). Both statutes give the department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The department’s work has led to important reforms to protect the rights of people in jails and prisons. The Civil Rights Division’s Special Litigation Section is conducting these investigations jointly with the U.S. Attorney’s office in the District of South Carolina. Individuals with relevant information are encouraged to contact the department about the Alvin S. Glenn Detention Center via phone at (888) 473-3201 or by email at Community.Glenn@usdoj.gov and the Sheriff Al Cannon Detention Center via phone at (888) 473-4059 or by email at Community.Cannon@usdoj.gov . Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons . ###


title: Former King County Jail guard and five others indicted for bribery scheme that brought meth and fentanyl into Seattle jail

component: USAO - Washington, Western

body_text: Seattle – A former King County Jail guard, two Department of Corrections inmates, and three co-conspirators were indicted by a federal grand jury for five federal felonies including bribery, drug possession with intent to distribute, and conspiracy. Those arrested today will appear in U.S. District Court in Seattle at 2:00 this afternoon. “Fentanyl and meth are horribly destructive in our community, and our correctional institutions are not immune. The challenge of keeping inmates safe is made much more difficult when correctional staff betray their positions of trust and authority,” said Acting U.S. Attorney Tessa M. Gorman. “I credit King County law enforcement officials with working quickly and cooperatively with the FBI to identify those allegedly involved in this bribery and drug smuggling conspiracy.” According to the indictment, former King County Jail Guard Mosses Ramos, 39, of Milton, Washington, worked as a correctional officer for 17 years - from June 2006 until he was fired in September 2023. According to the indictment, between March and May 2023, Ramos accepted bribes to bring methamphetamine and fentanyl into the jail for the benefit of inmates Michael Anthony Barquet, 37, and Francisco Montero, 25. Both men are currently incarcerated. The web of bribes and drug trafficking extended outside the jail with coconspirators who are associates of the two inmates: Neca Silvestre, 38, of Kent; Katrina Cazares, 38, of Burien; and Kayara Zepeda Montero, 27, of Seattle. “Impact in our community is built on the foundation of partnership and trust,” said Richard A. Collodi, Special Agent in Charge of FBI Seattle. “We are grateful for the exceptional collaboration with the King County Jail, King County Sheriff’s Office, King County Prosecutor’s Office, and the U.S. Attorney's Office for their shared commitment to holding public servants who violate trust accountable and for steadfast efforts to keep drugs out of our correctional facilities. Our partners identified the actions of an employee and brought the case to our attention which resulted in a successful joint investigation. This demonstrates the commitment by public safety professionals to hold those who violate this trust to the highest standards.” Each of the defendants is charged with four counts in the five-count indictment. Ramos is charged with soliciting and accepting a bribe. The other defendants are charged with bribery for paying the bribes. All are charged with conspiracy to engage in bribery, conspiracy to distribute controlled substances, and possession of controlled substances with intent to distribute. ramos_et_al_indictment.pdf For Ramos, Barquet, and Montero, the charges carry mandatory minimum sentences if convicted of ten years in prison and up to life in prison. The other defendants face up to 20 years in prison if convicted. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case was investigated by the FBI, the King County Sheriff’s Office, and the King County Prosecuting Attorney’s Office. The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Vince Lombardi.


title: Sand Springs Man Pleaded Guilty to Assault and Strangulation

component: USAO - Oklahoma, Northern

body_text: TULSA, Okla. – A Sand Springs man who assaulted and strangled his victim, pleaded guilty today in federal court, announced U.S. Attorney Clint Johnson. Phillip Gene Laird, 42, pleaded guilty to assault of an intimate/dating partner by strangling, suffocating, and attempting to strangle and suffocate in Indian Country. Laird is a tribal member of the Choctaw Nation. According to the plea agreement, Laird admitted while he was intoxicated and arguing with the victim, that he pinned her to the ground. Larid further admitted that he strangled his victim. Laird will remain in custody pending sentencing that will be scheduled at a later date. He faces a maximum penalty of up to 10 years in prison. A federal district court judge will determine any sentence and restation after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI and Sand Springs Police Department conducted the investigation. Assistant U.S. Attorneys Chantelle Dial, Michael Harder and Melissa Weems are prosecuting the case.


title: Rapid City Man Sentenced on Firearm Charge

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on October 24, 2023. Jonah Burning Breast, 29, was sentenced to four years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Burning Breast was indicted for the charge by a federal grand jury in February of 2023. He pleaded guilty on August 4, 2023. The conviction stems from Burning Breast, a previously convicted felon who is prohibited from possessing firearms, knowingly being in possession of an O.F. Mossberg & Sons Incorporated 12 gauge, pump-action shotgun in Rapid City in January of 2023. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Heather Knox prosecuted the case. Burning Breast was immediately remanded to the custody of the U.S. Marshals Service.


title: Durham Man Sentenced to Six Life Terms in Prison for Sex Trafficking

component: USAO - North Carolina, Middle

body_text: GREENSBORO – CHESTER FLETCHER WALLACE was sentenced today to life in prison after being convicted of sex trafficking, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina. WALLACE, age 62, was convicted by a jury on July 14, 2023, at the conclusion of a four-day trial. He was convicted of conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion and five counts of using force, threats of force, fraud, and coercion to cause five victims to engage in commercial sex acts. Evidence at trial showed that WALLACE ran a sex trafficking ring based out of a three-bedroom house located in Durham that he rented from July 2021 until late spring of 2022. WALLACE recruited women who were homeless or suffering from substance abuse, promising them housing and drugs if they came to live at the residence. Once there, all five victims testified that they were photographed for advertisements posted for commercial sex posted on sites such as “Mega Personals” and “Skipthegames,” and that WALLACE and a co-defendant set up the “dates” for commercial sex. The victims further testified that WALLACE established certain house rules that all the victims had to obey and used violence and coercion to enforce the rules of the house. Two victims testified that they tried to run away but WALLACE either found them and brought them back to the house or sent others to do so. WALLACE was sentenced today to six life terms of imprisonment, to run concurrent with one another, by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, WALLACE was ordered to pay restitution in the amount of $68,000.00. A hearing to determine additional restitution will be held on November 14. WALLACE’s co-defendant, Leslie Chevonne Stout, pleaded guilty on October 16, 2023, to the conspiracy count. Stout’s sentencing is scheduled for July 18, 2024. “Today’s sentencing handed down just punishment, and it brings to an end the cruel and inhumane misogyny perpetrated by this defendant,” said United States Attorney Sandra Hairston. “We deeply appreciate the diligent law enforcement officers and prosecutors who worked on the case. Their efforts prevent the defendant and his co-defendant from claiming more victims and provide a measure of justice which we hope will allow the victims to begin healing from this terrible ordeal.” “The reign of unimaginable terrors that Wallace viciously inflicted upon his victims is over and they can breathe easier knowing he will never again be able to victimize them or anyone else,” said Ronnie Martinez, Special Agent in Charge for HSI Charlotte, which covers North and South Carolina. “This is another example of the great results that are possible when law enforcement and community partners work together. In this case, we must recognize the DHS Center for Countering Human Trafficking and the Durham Police for the invaluable assistance they provided in bringing this monster to justice.” The case was investigated by Homeland Security Investigations and the Durham Police Department, with support and assistance from the Durham County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Nicole DuPré and former Assistant United States Attorney Tanner Kroeger. ###


title: Operation Smoke and Mirrors Update: Charleston Man Pleads Guilty to Role in Methamphetamine Trafficking Organization

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Jeremy Rayshad Walker, 35, of Charleston, pleaded guilty today to conspiracy to distribute cocaine. Walker admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area. According to court documents and statements made in court, between January and March 2023 Walker obtained cocaine from several individuals that he re-distributed to customers as part of the DTO conspiracy. Walker also admitted to conspiring to distribute other controlled substances. Walker communicated with his drug suppliers by cell phone. On February 1, 2023, Walker spoke with one supplier by cell phone about obtaining methamphetamine and sought advice about how much he should charge customers. Walker admitted that he also discussed the price he was charging customers for cocaine during a cell phone call with an associate on February 15, 2023. Walker further admitted to additional cell phone conversations with a drug supplier to obtain quantities of cocaine in March 2023. Walker is scheduled to be sentenced on March 4, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. Walker is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash. Walker and 21 other defendants have pleaded guilty. Indictments against the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department. Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case. The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-31. ###


title: Guatemalan National Indicted for Alleged Possession of Child Pornography

component: USAO - Texas, Western

body_text: EL PASO, Texas – A Guatemalan national was indicted in a federal court in El Paso with two counts related to child sexual abuse material. According to court documents, Jesus Menjibar Salinas, 20, was arrested by U.S. Border Patrol agents east of Sierra Blanca on Oct. 3. An affidavit filed in a criminal complaint alleges that Salinas possessed a cell phone with photos and videos depicting child sexual abuse material stored within the device and in a messaging application. Salinas is charged with one count of transportation of child pornography and one count of possession of child pornography. If convicted, he faces a penalty of five to 20 years in prison for the transportation charge and a maximum penalty of 20 years in prison for the possession charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. HSI and USBP are investigating the case. Assistant U.S. Attorney Michael Osterberg is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Former Utah HOA Treasurer Admits to Stealing Over $230,000

component: USAO - Utah

body_text: ST. GEORGE, Utah – A Washington County resident pleaded guilty today to wire fraud and making a false statement on a tax return after she abused her Homeowners Association (HOA) position of power to divert thousands of dollars to her personal account. She then underreported her personal income to the Internal Revenue Service (IRS). According to court documents, Sharon Lee Ann Gordon, 66, of Hurricane, Utah, embezzled approximately over $232,000 from four Lava Bluff HOA bank accounts between 2016 and March 2022. In execution of the scheme, Gordon diverted the funds electronically by transferring them directly to her personal account, writing checks to herself and her boyfriend and forging other board members’ signatures, depositing checks representing HOA member fees directly into her personal accounts, writing checks to casinos from HOA accounts, and withdrawing cash from HOA accounts. In April 2022, Gordon electronically filed a Form 1040 U.S. Individual Income Tax Return with the Internal Revenue Service that falsely stated her total income for 2021 was $13,502, when in fact she received at least $20,000 more. Additionally, in tax years 2017 through 2021, Gordon failed to report income derived from her scheme to defraud Lava Bluff HOA. As a result, Gordon was ordered by the court to pay $20,490 in restitution to the IRS for tax loss from unreported income between 2017 and 2021. Gordon is also ordered to pay the remaining $63,448.32 from the $232,078 in restitution to Lava Bluff HOA. To date, Gordon has paid the HOA $168,629.68 in restitution. Gordon pleaded guilty to wire fraud and false statement on a tax return. She is scheduled to be sentenced at a later date in courtroom 2B at the St. George Courthouse before a U.S. District Court Judge in St. George, Utah. U.S. Attorney Trina A. Higgins of the District of Utah made the announcement. The case is being investigated jointly by the Internal Revenue Service Criminal Investigation (IRS-CI) and the FBI Salt Lake City Field Office, St. George Resident Agency. Assistant United States Attorney Stephen P. Dent of the District of Utah is prosecuting the case.


title: Little Eagle Man Sentenced for Methamphetamine Conspiracy

body_text: ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Little Eagle, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on October 30, 2023. Jesse James Clairmont, age 54, was sentenced to four years and three months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Clairmont was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in February of 2021. He pleaded guilty on July 24, 2023. The conviction stemmed from Clairmont distributing methamphetamine primarily within the Standing Rock Indian Reservation between January 1, 2015, and February 8, 2021. During the time frame of the conspiracy, Clairmont was responsible for distributing at least 50 grams but less than 200 grams of methamphetamine. This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the FBI. Assistant U.S. Attorney Wayne Venhuizen prosecuted the case. Clairmont was immediately remanded to the custody of the U.S. Marshals Service.


title: Rapid City Man Sentenced for Failing to Register as a Sex Offender

body_text: ABERDEEN - United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Failing to Register as a Sex Offender was sentenced on October 30, 2023, by U.S. District Judge Charles B. Kornmann. Leonard Jones, age 37, was sentenced to 18 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Jones was indicted by a federal grand jury in May of 2023. He pleaded guilty on August 2, 2023. Jones is required to register as a sex offender under federal law. Jones had registered an address in Rapid City with the Rapid City Police Department in August of 2022, following his release from prison. In January of 2023, Jones left that address without notifying the police or his probation officer. Jones did not update his registration until his arrest for Failure to Register as a Sex Offender in July of 2023. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Carl Thunem prosecuted the case. Jones was immediately remanded to the custody of the U.S. Marshals Service.


title: Deadwood Man Receives 10 Years in Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Deadwood, South Dakota, man convicted of Attempted Enticement of a Minor Using the Internet. The sentencing took place on October 24, 2023. Donald William Laun, 62, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Laun will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. Laun was indicted for Attempted Enticement of a Minor Using the Internet by a federal grand jury in August of 2022. He pleaded guilty on August 11, 2023. Laun was arrested as a result of an undercover sex trafficking operation conducted during the 2022 Sturgis Motorcycle Rally, targeting internet predators. Following multiple chats and sexually explicit text messages with a person Laun believed to be a 14-year-old girl, but who was in fact an undercover agent, Laun proceeded to negotiate a time and place he would meet the minor to engage in unlawful sex acts. When Laun went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the Internet Crimes Against Children Taskforce, South Dakota Division of Criminal Investigation, Homeland Security Investigations, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case. Laun was immediately remanded to the custody of the U.S. Marshals Service.


title: Allen Man Sentenced to Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced an Allen, South Dakota, man convicted of Abusive Sexual Contact and Possession of Child Pornography. The sentencing took place on October 26, 2023. Joshua Isaac Sharp, 39, was sentenced to 30 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund, following his conviction for Abusive Sexual Contact. Sharp was also sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay another $100 special assessment to the Federal Crime Victims Fund, following his conviction for Possession of Child Pornography. The Court ordered that the sentences be run concurrently. Sharp was indicted for the charges by a federal grand jury in July of 2022. He pleaded guilty on July 28, 2023. The conviction stems from Sharp engaging in sexual contact with a child who was less than 12 years old in November of 2021 near Allen. Sharp also possessed child pornography on his cellular telephone during this time. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in Federal court as opposed to State court. This case was investigated by the Oglala Sioux Tribe Department of Public Safety, Internet Crimes Against Children Taskforce, and the FBI. Assistant U.S. Attorney Megan Poppen prosecuted the case. Sharp was immediately remanded to the custody of the U.S. Marshals Service.


title: Former Woodson Terrace Police Officer Admits Civil Rights Violation

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A former police officer in Woodson Terrace, Missouri on Thursday admitted kicking a man who was on the ground and being held at gunpoint by another officer. David W. Maas, 57, pleaded guilty in front of U.S. District Judge Henry E. Autrey to a charge of deprivation of rights under color of law, namely the victim’s right to be free from the use of unreasonable force. Maas admitted that on April 14, 2019, he and officers from other agencies were pursuing a car stolen in an armed robbery in Bridgeton. The officers were told that a weapon had been implied but not displayed by the robber. Maas was on-duty and in full police uniform and in a marked police vehicle. That pursuit traveled through St. Ann, Breckenridge Hills, St. John, unincorporated north St. Louis County, Bel-Nor, Greendale and Pagedale before terminating on Oak Grove Avenue in Wellston. The robber got out of the passenger side of the stolen car on Oak Grove Avenue and ran away. He was later caught. The driver, referred to in court only by his initials, “I.F.,” turned back onto Dr. Martin Luther King Drive and struck a St. Ann police vehicle. A Pagedale officer immediately ran up to the passenger side of the car and ordered I.F. at gunpoint to get out of the car with his hands in the air and to get on the ground. While I.F. was on the ground, Maas ran up to him, stepped over him and then kicked him in the forehead, causing swelling and pain. The charge carries a penalty of up to 10 years in prison, a $250,000 fine, or both. Maas is scheduled to be sentenced January 23, 2024. The FBI investigated the case. Assistant U.S. Attorney Christine Krug is prosecuting the case.


title: Florida Laboratory Agrees to Pay Over $1.1 Million to Settle Kickback Allegations

component: Civil Division

body_text: Clinical laboratory Genesis Reference Laboratories LLC (Genesis), of Orlando, Florida, has agreed to pay $1,195,845 to resolve False Claims Act allegations that its marketers paid illegal kickbacks to healthcare providers in violation of the Anti-Kickback Statute to induce laboratory testing referrals. Genesis has agreed to cooperate with the Justice Department’s investigations of, and litigation against, other participants in the alleged scheme. “The payment of kickbacks by laboratories or their representatives to induce laboratory test referrals undermines the integrity of federal healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue those who offer or receive kickbacks for patient referrals regardless of how those unlawful inducements are characterized or provided.” 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 settlement announced today resolves allegations that from 2019 to 2021 Genesis paid marketing companies Corum Group LLC, Provisional Medical Consultants LLC and RMC Medical LLC to arrange for and recommend that healthcare providers in Missouri and Texas order Genesis’ laboratory tests, and the marketing companies kicked back a portion of those payments to referring healthcare providers, in violation of the Anti-Kickback Statute. The health care providers allegedly were paid using purported management services organizations (MSOs), which attempted to disguise the kickbacks as investment returns but actually offered the payments to health care providers to induce laboratory testing referrals to Genesis. The settlement resolves allegations that, despite knowing of the MSO kickbacks to health care providers and receiving those providers’ subsequent patient referrals, Genesis nevertheless submitted to Medicare the claims for laboratory testing ordered by those providers, in violation of the False Claims Act. “Kickbacks have no place in our healthcare system,” said U.S. Attorney Philip Sellinger for the District of New Jersey. “Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper and may violate the Anti-Kickback Statute. Our office is committed to holding responsible individuals and entities who commit and profit from health care fraud. We have pursued and will continue to pursue the laboratories who enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments by promising unjust financial enrichment.” “Violations of the Anti-Kickback Statute can induce medically unnecessary testing and influence physicians’ decision-making inappropriately,” said Special Agent in Charge Naomi Gruchacz for the Department of Health and Human Services Office of Inspector General (HHS-OIG). “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.” The settlement was 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. The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey. The United States has recovered over $36 million relating to conduct involving MSO kickbacks to health care providers, including False Claims Act settlements with 41 physicians, two laboratories, four medical practices, three healthcare executives and one office manager. 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 HHS 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. Settlement


title: Two Sioux Falls Women Sentenced for Their Roles in Multi-Pound Methamphetamine and Fentanyl Conspiracy

body_text: SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced two Sioux Falls, South Dakota, women convicted of Conspiracy to Distribute a Controlled Substance. The sentencings took place on October 30, 2023. Kessara Mikkelson, 35, was sentenced to nineteen years and seven months in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Asia Gunhammer. 31, was sentenced to ten years and six months in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Mikkelson and Gunhammer were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in June of 2023. Mikkelson pleaded guilty on July 25, 2023, and Gunhammer pleaded guilty on July 20, 2023. Mikkelson and Gunhammer were involved in a large-scale methamphetamine and fentanyl distribution network that originated out of California and made its way into South Dakota through shipments that were both mailed through FedEx and driven in semi-trailers. The source of supply for this organization, Terry Morris, Jr., who was also indicted as part of this conspiracy, was, and continues to be, incarcerated in a California state prison. He is set to be sentenced on November 13, 2023. Mikkelson was personally responsible for organizing and handling over 100 pounds of methamphetamine and 25,000 fentanyl pills during her involvement in this conspiracy. Gunhammer was one of the known sub-distributors for Mikkelson. The methamphetamine in this conspiracy was known to be sourced by the Mexican cartels. This case was investigated by the FBI, Sioux Falls Police Department, and the Minnehaha County Sheriff’s Office. Assistant U.S. Attorney Mark Hodges prosecuted the case. Mikkelson and Gunhammer were immediately remanded to the custody of the U.S. Marshals Service.


title: Charlotte Man Is Sentenced For Prescription Fraud And Pill Distribution

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell sentenced Savonte Watkins, 46, of Charlotte, to 42 months in prison on drug charges yesterday, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Bell also ordered Watkins to serve three years under court supervision after he is released from prison. According to filed court documents and today’s sentencing hearing, in the spring of 2020, Watkins was involved in a scheme to get fraudulent prescriptions for oxycodone filled at local pharmacies in order to illegally distribute the pills. Court documents show that Watkins was responsible for at least 20 fraudulent prescriptions for approximately 1,200 pills of oxycodone. According to filed documents and court proceedings, Watkins recruited others, often suffering from opioid addiction, to get the prescriptions filled and would pay them with a portion of the filled prescription. On May 31, 2023, Watkins pleaded guilty to conspiracy to obtain controlled substances by fraud and possession with intent to distribute oxycodone. Watkins is currently released on bond. Upon designation of a federal facility, he will report to the federal Bureau of Prisons for his term of imprisonment. In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration’s Tactical Diversion Squad, the Charlotte Mecklenburg Police Department, and the Mooresville Police Department for their investigation of this case. Assistant U.S. Attorney Nick J. Miller of the U.S. Attorney’s Office in Charlotte prosecuted the case.


title: Fentanyl Dealer Is Sentenced In Federal Court

body_text: CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Antonio Morquett Phillips, 46, of Hickory, N.C., to seven years in prison followed by five years of supervised release for distribution of fentanyl, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement. According to court documents and today’s sentencing hearing, in February 2022, law enforcement initiated an investigation into Phillips for suspected distribution of fentanyl-based pressed pills. During the investigation, an ATF special agent acting in an undercover capacity conducted multiple controlled purchases of fentanyl-pressed pills from Phillips. On May 25, 2022, law enforcement executed a search warrant at Phillips’ residence. During the search, officers seized approximately 1,000 fentanyl pills, five firearms, and body armor. On May 23, 2023, Phillips pleaded guilty to possession with intent to distribute fentanyl. In making today’s announcement, U.S. Attorney King thanked the ATF, the SBI, and the Hickory Police Department for their investigation of this case. Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case. Fentanyl is a synthetic opioid that is 50 times more potent than heroin and remains the deadliest drug threat in the United States. According to the Drug Enforcement Administration’s (DEA) One Pill Can Kill public awareness campaign, the agency has seized a record 62 million fentanyl pills to date in 2023, which exceeds last year’s totals of 58 million pills. Laboratory testing indicates 7 out of 10 pills seized by DEA contain a lethal dose of fentanyl. For information and resources related to substance use disorder, please call the Substance Abuse and Mental Health Services Administration helpline at 1-800-662-HELP (4357) or visit the online treatment locator .


title: Fitchburg Man Indicted for Firearm Offense

component: USAO - Massachusetts

body_text: BOSTON – A Fitchburg man has been indicted by a federal grand jury in Worcester for unlawfully possessing a firearm as a convicted felon. Satron Pridgen, 45, was charged with being a felon in possession of a firearm and ammunition. He will appear in federal court in Worcester on Nov. 6, 2023 before U.S. District Court Magistrate Judge David H. Hennessy. According to the charging documents, at approximately 1:30 a.m. on Sept. 16, 2023, Pridgen was in an altercation outside of Mill City Pub in Fitchburg. It is alleged that, during the altercation, Pridgen pulled out a loaded pistol which he used to beat another man in the head multiple times. When law enforcement intervened, Pridgen allegedly ran off and attempted to discard the firearm by a dumpster before being apprehended. Pridgen is prohibited from possessing firearms and ammunition due to numerous prior convictions out of Worcester Superior Court including: a November 1999 conviction of assault and battery by means of a dangerous weapon for which he was sentenced to nine to 10 years in state prison; an October 2011 conviction of armed assault with intent to rob, assault and battery by means of a dangerous weapon causing serious bodily injury and possession of a firearm and ammunition as a career criminal for which he was sentenced to 12 years in state prison; and an October 2011 conviction of possession with intent to distribute a controlled substance and distribution of cocaine, for which he was sentenced to nine to 10 years in state prison. The charge of being a felon in possession of a firearm provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division; and Fitchburg Police Chief Ernest F. Martineau made the announcement today. Assistant U.S. Attorney Kristen Noto of the Worcester Branch Office is prosecuting 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 violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Hickory, N.C. Man Is Sentenced To Prison For Distribution Of Methamphetamine And Possession Of A Firearm By A Felon

body_text: CHARLOTTE, N.C. – A Hickory, N.C. man was sentenced to five years in prison today for possession with intent to distribute methamphetamine and possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Edward Leroy Bailey, 48, was also ordered to serve four years under court supervision after he is released from prison. Alicia Jones, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement. According to court documents and court proceedings, in October 2022, law enforcement received information that Bailey was distributing narcotics from his hotel room in the Hickory area. Over the course of the investigation, law enforcement conducted controlled purchases of narcotics from Bailey, and, on October 18, 2022, they executed a search warrant at Bailey’s hotel room. During the search, law enforcement found and seized distribution quantities of methamphetamine, as well as cocaine base and marijuana, and more than $1,800 in cash. Law enforcement also seized three stolen firearms, two of which were loaded, and ammunition. Bailey has a criminal history that includes convictions for Robbery with a Dangerous Weapon and Possession of a Firearm by Felon, and he is not permitted to own or possess firearms. On July 12, 2023, Bailey pleaded guilty to possession with intent to distribute methamphetamine, and possession of a firearm by a convicted felon. The ATF and the Hickory Police Department investigated the case. Special Assistant U.S. Attorney (SAUSA) William Wiseman of the U.S. Attorney’s Office in Charlotte prosecuted the case. Mr. Wiseman is a state prosecutor with the office of the 26 th Prosecutorial District and was assigned by District Attorney Spencer Merriweather to serve as a SAUSA with the U.S. Attorney’s Office in Charlotte. Mr. Wiseman is sworn in both state and federal courts. The SAUSA position is a reflection of the partnership between the District Attorney’s Office and the U.S. Attorney’s Office.


title: Florida Laboratory Agrees to Pay over $1.1 Million to Settle Kickback Allegations

component: USAO - New Jersey

body_text: NEWARK, N.J. – A clinical laboratory located in Orlando, Florida, has agreed to pay more than $1.1 million to resolve kickback allegations, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today. Genesis Reference Laboratories LLC (Genesis) has agreed to pay $1,195,845.82 to resolve False Claims Act allegations that its marketers paid illegal kickbacks to health care providers in violation of the Anti-Kickback Statute to induce the providers’ laboratory testing referrals. Genesis has agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged scheme. “Kickbacks have no place in our healthcare system. Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper and may violate the Anti-Kickback Statute. Our office is committed to holding responsible individuals and entities who commit and profit from health care fraud. We have pursued and will continue to pursue the laboratories who enter into unlawful financial arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments by promising unjust financial enrichment.” U.S. Attorney Philip R. Sellinger “The payment of kickbacks by laboratories or their representatives to induce laboratory test orders undermines the integrity of federal healthcare programs,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will pursue those who offer or receive kickbacks for patient referrals regardless of how those unlawful inducements are characterized or provided.” “Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and influence physicians’ decision-making inappropriately,” Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General said. “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.” 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 settlement announced today resolves allegations that from 2019 to 2021, Genesis paid marketing companies Corum Group LLC, Provisional Medical Consultants LLC, and RMC Medical LLC to arrange for and recommend that health care providers in Missouri and Texas order Genesis’ laboratory tests, and the marketing companies kicked back a portion of those payments to referring health care providers, in violation of the Anti-Kickback Statute. The health care providers allegedly were paid using purported management services organizations (MSOs), which attempted to disguise the kickbacks as investment returns but actually offered the payments to health care providers to induce laboratory testing referrals to Genesis. The settlement resolves allegations that, despite knowing of the MSO kickbacks to health care providers and receiving those providers’ subsequent patient referrals, Genesis nevertheless submitted to Medicare the claims for laboratory testing ordered by those providers, in violation of the False Claims Act. 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 health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlements are allegations only, and there has been no determination of liability. genesis.settlement.pdf


title: Armed Methamphetamine Trafficker Is Sentenced To 11 Years In Federal Prison

body_text: ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced Joel Wesley Creech, 45, of Brevard, N.C., to 132 months in prison for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also imposed five years of supervised release following incarceration. According to filed documents and information introduced at the sentencing hearing, between 2020 and 2022, Creech was responsible for trafficking large quantities of methamphetamine in McDowell, Haywood, Transylvania, and Buncombe Counties. Court documents show that Creech supplied the methamphetamine to other individuals for further local distribution. On June 22, 2021, law enforcement executed search warrant at Creech’s residence, where they seized more than 1.5 kilograms of methamphetamine buried in Creech’s backyard, and $2,950 in cash. Law enforcement also seized eight firearms, some of which were loaded, multiple high-capacity magazines, and multiple of rounds of ammunition. According to court records, over the course of the conspiracy, Creech was responsible for assisting and distributing multiple kilograms of methamphetamine. On April 24, 2023, Creech pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and aiding and abetting possession with intent to distribute methamphetamine. He remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. In making today’s announcement, U.S. Attorney King thanked the Drug Enforcement Administration, the Haywood County Sherriff’s Office, Transylvania County Sheriff’s Office, and the McDowell County Sheriff’s Office for their investigation of this case. Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Asheville, prosecuted the case.


title: Former Corrections Officer Is Sentenced To 17 Years For Traveling From Tennessee To North Carolina To Engage In Sexual Activity With A Minor

body_text: ASHEVILLE, N.C. – John Allen Biggins, 42, of Surgoinsville, Tennessee, was sentenced today to 17 years in prison followed by a lifetime of supervised release, for traveling to Western North Carolina to engage in illicit sex acts with a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Biggins to register as a sex offender after he is released from prison. Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Jeff Cassidy, Sheriff of the Sullivan County Sheriff's office in Tennessee, join U.S. Attorney King in making today's announcement. "As a sworn officer of the law, Biggins compromised public trust and violated federal statutes," said U.S. Attorney King. "Protecting our children from harm is one of our highest priorities, and identifying and prosecuting predators like Biggins is at the forefront of our efforts to combat child sexual exploitation. I commend Homeland Security Investigations and the Sullivan County Sheriff's Office for taking swift action. Thanks to their work and coordination, children are safe from this dangerous predator." “Thankfully, Biggins’ plan to exploit a child was thwarted and he will be held accountable for his heinous crime. Additionally, he also stole the public’s trust when he betrayed his oath to protect the community and enforce the law,” said Special Agent in Charge Martinez. “Finding and arresting predators involved in victimizing and exploiting children is one of HSI’s highest priorities and we are committed to working with our law enforcement partners to use all available resources to protect our communities.” “I’m thankful for the work of Homeland Security Investigations agents who identified this predator and took immediate action,” said Sheriff Cassidy. “I hope this case sends a very clear message that no matter where you work or what title you hold, we have no tolerance for those seeking to sexually exploit and abuse children.” According to filed court documents and today’s sentencing hearing, beginning in June 2022, Biggins communicated with undercover agents expressing interest in engaging in illicit sexual acts with a minor female child. On July 8, 2022, Biggins traveled from his home in Surgoinsville to the Western District of North Carolina for the purposes of engaging in sexual acts with a female toddler and was subsequently arrested. When law enforcement arrested Biggins, he was found to be in possession of child pornography images and videos as well as a personally owned Glock 17 9mm semi-automatic pistol and other police equipment. At the time of the offense, Biggins was employed in a position of public trust as a corrections officer at the Sullivan County Sheriff’s Office. Upon notification of the offense, Sheriff Cassidy immediately terminated Biggins from the Sullivan County Sheriff’s Office. On February 27, 2023, Biggins pleaded guilty to traveling in interstate commerce to engage in illicit sexual conduct with a minor. U.S. Attorney King credited HSI with the investigation leading to today’s sentence. Assistant U.S. Attorney Alexis Solheim with the U.S. Attorney’s Office in Asheville prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.


title: Nigerian National Pleads Guilty to Multi-Million Dollar Cyber Fraud Scheme Targeting Tulsa Company and Four Other Companies

component: Criminal - Office of International Affairs

body_text: TULSA, Okla. – A Nigerian national pleaded guilty Tuesday to wire fraud and transportation of stolen property in federal court, announced U.S. Attorney Clint Johnson. Sunday Daniel Ganyo, 37, pleaded guilty to four separate counts of conspiracy to commit wire fraud, wire fraud, conspiracy, and transportation of stolen property. In July, Ganyo was extradited from South Africa pursuant to a 2020 federal criminal complaint alleging his involvement in a cyber fraud scheme targeting a Tulsa company that almost succeeded in stealing nearly half a million dollars’ worth of computers and shipping them to South Africa. Investigators were able to intercept the shipment in route and track it to a warehouse in South Africa controlled by Ganyo, leading to his arrest by the South African Police Service. It was later determined that Ganyo had engaged in a wide range of similar schemes targeting at least four companies in California, Illinois, and New York with a total loss amount of nearly 3 million dollars. According to Ganyo’s plea agreement, from January of 2017 through January of 2021, he conspired to commit wire fraud in the Northern District of Oklahoma and elsewhere. He specifically created email addresses that appeared to be employees of well-known businesses. He would use those false email address to impersonate employees and place large orders of computer equipment. Ganyo would then use the fictious email accounts to redirect the orders and send other conspirators to pick up the various equipment and ship the stolen goods to South Africa. Sunday Ganyo will remain in custody pending a later sentencing date that is yet to be scheduled. He faces a maximum penalty of up to 20 years in prison. A federal district court judge will determine any sentence and restitution after considering the U.S. Sentencing Guidelines and other statutory factors. The Justice Department’s Office of International Affairs worked with law enforcement partners of the South African Police Service to secure the arrest and extradition of Ganyo. The FBI is investigating the case. Assistant U.S. Attorneys Christopher J. Nassar and Thomas Buscemi are prosecuting the case. If you would like to report fraud, please contact the appropriate investigative agency as follows: https://www.justice.gov/criminal/criminal-fraud/report-fraud


title: Former Soldier Charged with Threatening to Kill Military Personnel at Fort Irwin Army Base in San Bernardino County

component: USAO - California, Central

body_text: LOS ANGELES – A Northern California man has been charged with a felony offense for allegedly posting online videos of himself threatening to kill multiple military personnel at the Fort Irwin army base in San Bernardino County, the Justice Department announced today. Christian Ernest Beyer, 41, of Petaluma, has been charged with interstate threats, a crime that carries a statutory maximum sentence of five years in federal prison. Beyer, an army veteran formerly stationed at Fort Irwin and who was court martialed in 2021 for assault, was arrested Wednesday at his father’s Sonoma County residence. A federal magistrate judge in San Francisco today ordered Beyer jailed without bond. Beyer is expected to be arraigned in the Central District of California in the coming weeks. According to an affidavit filed with the complaint on Wednesday, on October 30, Beyer posted a YouTube video – using an account in his own name – in which he threatened to kill specific military personnel at Fort Irwin. In one of the YouTube videos posted on October 30, Beyer allegedly said, “I had a great…life and I will…die for what I believe in. If you come to…get me and you have a …uniform on, you’re a[n]…enemy and I will not look at you as anything else. I will…fight you ‘til I take you down.” On October 30, Beyer allegedly got into an altercation in Mendocino County with a group of elderly individuals after leaving his car in a neighborhood in which he did not live. Beyer allegedly brandished a knife at one of the elderly people, got in his car, drove away, then turned around and sped towards the group, driving his vehicle approximately 13 feet off the street at them. Beyer then sped away and drove to a parking lot, where local law enforcement confronted him, according to the affidavit. He allegedly got out of his car and fled, leading to a manhunt that ended with his arrest. A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The FBI is investigating this matter as part of its Los Angeles Joint Terrorism Task Force. Assistant United States Attorney Daniel H. Weiner of the General Crimes Section is prosecuting this case.


title: Warren Woman Sentenced To 20 Years In Prison for Sexual Exploiting an Infant and Young Child

component: USAO - Michigan, Eastern

body_text: DETROIT – A Warren resident was sentenced today to 20 years in federal prison on charges of sexual exploitation of children and distribution of child pornography, announced United States Attorney Dawn N. Ison. Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. Sentenced was Amber Nicole Dunbar, 27. Dunbar pleaded guilty in March before United States District Judge George Caram Steeh. As part of her plea, Dunbar admitted that in August 2022 she created images of herself engaging in sexually explicit conduct with an infant. She sent these images to another individual located in Tennessee, who was being investigated for child pornography charges. This individual had caused numerous women to produce and send him child pornography. Once agents in Michigan learned of this abuse, they swiftly executed a search warrant and Dunbar admitted to the abuse of the child. Further investigation revealed that Dunbar had also produced child pornography involving a five-year-old child. “I am thankful for the agents who acted so quickly to save these children from continued abuse. This defendant not only engaged in unthinkable abuse of an infant, but also shared the abuse with someone else on the internet. This sentence demonstrates our commitment to ensure that those who harm the most vulnerable in our community will pay a significant price for their actions. responsible,” said U.S. Attorney Ison. "Ms. Dunbar's exploitation of her daughter and other victims is deplorable," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "While the harm the defendant inflicted on these innocent children cannot be undone, we hope this sentence brings a small sense of justice to all those impacted in this case. Protecting children from dangerous predators is a top priority for the FBI, and we remain fully committed to investigating criminals who take advantage of minors in this indefensible way. We continue to urge the public to report alleged crimes of child sexual and physical abuse by calling 1-800-CALLFBI (1-800-225-5324) or submitting tips online to http://tips.fbi.gov." The case was investigated by the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Christopher Rawsthorne.


title: Former Top Executive of Investment Fund Admits $294 Million Securities Fraud Conspiracy

body_text: TRENTON, N.J. – A former co-founder and top executive of an investment fund pleaded guilty today for conspiring to defraud dozens of victim investors out of $294 million in funds, U.S. Attorney Philip R. Sellinger announced. John Hughes, 56, of Mahwah, New Jersey, pleaded guilty before U.S. District Court Judge Michael A. Shipp in Trenton federal court to an information charging him with one count of conspiracy to commit securities fraud. “John Hughes admitted today that he orchestrated a complex and sophisticated scheme to bilk investors of their hard-earned money. Securities fraud enforcement is a top priority for this office. Investors need to be able to trust that the people who are handling their money are behaving honorably. The defendant broke that trust to enrich himself. He will now face just punishment for his crimes.” U.S. Attorney Philip R. Sellinger “Hughes actively led clients to believe they were investing responsibly, putting their money into low-risk funds,” Richard Langham, Acting Special Agent in Charge of the FBI’s Philadelphia Division, said. “As these lies continued and the losses mounted, he engaged in a cover-up, trying to conceal the staggering fraud. Securities schemes like this can be simply devastating for the victim investors. That’s why the FBI is committed to bringing financial fraud to light and perpetrators like Hughes to justice.” According to documents filed in this case and statements made in court: Hughes co-founded Prophecy Asset Management LP (Prophecy) and worked as its chief operating officer and chief compliance officer. Prophecy solicited investments and operated funds that, at their peak, had over $360 million in assets under management. Prophecy’s other co-founder worked as its CEO and portfolio manager. From January 2015 to March 2020, Hughes conspired with his co-founder to falsely represent to investors that Prophecy employed a “first-loss” trading strategy that purportedly allocated investor money to a diverse array of traders, called sub-advisors, who were required to provide cash collateral in order to gain access to the investors’ pooled money and backstop any potential losses. Hughes and his co-founder also falsely represented to investors that if a sub-advisor began to experience trading losses that approached the amount of their required cash collateral, Prophecy would contact the sub-advisor to increase or replenish their collateral and, if necessary, suspend allocations and trading, or even terminate the sub-advisor if losses were substantial. These false claims induced victims to believe that Prophecy operated low-risk, transparent, and diversified funds. In reality, over time, Hughes and his co-founder allocated most of the funds’ capital to a single, primary sub-advisor without requiring him to provide cash collateral to back potential losses. They also failed to suspend his allocations or trading, even though he sustained approximately $290 million in losses that far exceeded his cash collateral. Hughes and his co-founder fraudulently concealed this and other information from victim investors, causing the victims to believe their investments were far more secure than they actually were. Hughes, his co-founder, and the sub-advisor also actively covered up these spiraling losses and collateral deficiencies by using, among other things, bogus transactions and forged documents. In turn, the sub-advisor helped Hughes and his co-founder conceal millions of dollars in losses they caused Prophecy’s funds through bad investments. They used fake documents and money that the sub-advisor provided to paper over and hide these bad investments from victim investors and Prophecy’s auditor. The fraud ultimately resulted in trading losses that wiped out Prophecy’s funds and caused over $294 million in losses to the victims. The conspiracy to commit securities fraud charge carries a maximum penalty of five years in prison and a $250,000 fine. Sentencing for Hughes is scheduled for March 21, 2024. The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against Hughes based on the same and additional conduct. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Richard J. Langham, Philadelphia Division, with the investigation leading to today’s plea. He also expressed appreciation for the Securities and Exchange Commission, under the direction of Gurbir S. Grewal, Director, Division of Enforcement. The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark. hughes.information.pdf


title: Michigan Man Sentenced to Prison for Check-Kiting Scheme that Caused Loss of Nearly $150 Million

component: USAO - Ohio, Northern

body_text: CLEVELAND –Najeeb Khan, 70, of Edwardsburg, Michigan was sentenced to 97 months imprisonment by U.S. District Court Judge Pamela A. Barker after earlier pleading guilty to bank fraud and attempted tax evasion. Judge Barker also ordered Khan to pay over $150,000,000 in restitution to the victims of his bank fraud and the IRS, and to serve 3 years of supervised release once released from prison. According to court documents, Khan owned and operated Interlogic Outsourcing Inc. (“IOI”), a payroll processing company that, at one point, provided services to approximately 6,000 clients. Beginning in 2014, however, Khan operated a check-kiting scheme using his company’s business bank accounts to fraudulently obtain funds from various financial institutions, including KeyBank. Khan used these funds to support the growth of his payroll processing business and fund his lifestyle, which included the purchase of automobiles, aircraft, and vacation homes. As part of his scheme, Khan wrote checks and made wire transfers between multiple accounts under his control at various banks. This type of fraud is commonly known as check-kiting, and it involves the perpetrator continually writing checks back and forth between accounts he or she controls to fraudulently inflate account balances, thus deceiving banks into honoring checks written with insufficient funds. Khan wrote checks from IOI accounts at Lake City Bank for deposit into IOI accounts at KeyBank and then wrote checks from IOI accounts at Berkshire Bank for deposit into IOI accounts at Lake City Bank. To cover the check funds issued from Berkshire Bank, Khan wired funds from IOI accounts at KeyBank to IOI accounts at Berkshire Bank. This long-running check-kiting scheme caused a financial loss of nearly $150 million to businesses around the country and to KeyBank in the Northern District of Ohio. Khan also failed to report income gained from the check-kiting scheme on his annual tax return for the tax years 2014 to 2017. “This defendant essentially gave himself a $150,000,000 loan, spent money however he wanted on himself and his business, then defaulted, all without ever getting the banks’ approval to give him that loan,” said U.S. Attorney Rebecca C. Lutzko. “These types of financial crimes undermine the well-being of our financial institutions and harm our entire community. This office will vigilantly investigate and prosecute persons who engage in such conduct to protect and prevent harm to financial institutions locally and nationwide.” “Financial crimes can have serious and long-term consequences. Complex financial crimes that impact the economic well-being of institutions is reprehensible,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “The defendant orchestrated an elaborate business fraud scheme that caused extensive monetary harm to financial institutions nationwide. The FBI will work diligently and seek justice for individuals and entities who fall victim to conniving criminals who cheat and lie for the sole purpose of personal gain.” This case was investigated by the Cleveland FBI and IRS Criminal Investigations (“CI”). This case was prosecuted by Assistant U.S. Attorneys Chelsea S. Rice and Alejandro A. Abreu.


title: Northern District of Oklahoma Granted Funding for  Investments in Public Safety

component: Community Oriented Policing Services (COPS)

body_text: The Justice Department announced today several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime . Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement. Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide “I am pleased to announce that the Department’s Office of Justice Programs has awarded more than $5 million to combat violent crime and maintain public safety in our district,” said U.S. Attorney Clint Johnson. “These grants will help fund and enhance public safety and deepen law enforcement’s connections to the communities we serve.” 2023 COPS Office School Violence Prevention Program (SVPP) awarded Quapaw Nation $238,037.00. The SVPP provides funding directly to states, units of local government, Indian tribes, and public agencies to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs. 2023 COPS Hiring Program (CHP) awarded City of Bixby $125,000.00; City of Sand Springs $119,329.00; Muscogee Creek Nation $2,000,000.00 and City of Pryor Creek $125,000.00. The CHP awards provide funding directly to law enforcement agencies to hire or rehire career law enforcement officers for the advancement of public safety through an increase in their community policing capacity and crime prevention efforts. 2023 COPS Office Coordinated Tribal Assistance Solicitation (CTAS) awarded Muscogee Creek Nation $899,537.00; Quapaw Nation $738,793.00; and Wyandotte Nation $665,551.00. The TRGP award provides funding directly to federally recognized tribes and tribal consortia consisting of two or more federally recognized Indian tribes. TRGP was designed to expand the implementation of community policing and meet the most serious needs of law enforcement in tribal communities through a broadened comprehensive program. 2023 Community Policing Development (CPD) Program awarded Tulsa Community College $160,000.00. This program is used to develop the capacity of law enforcement to implement community policing strategies by providing guidance on promising practices through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting new, creative approaches to preventing crime and promoting safe communities. “Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.” Lastly, the Deputy Attorney General and Associate Attorney General announced that this December 11-13, in Indianapolis, the Justice Department’s will bring together 1,500 local and federal partners from across the country, including representatives from the more than 50 PSP jurisdictions and from Project Safe Neighborhoods for a Violent Crime Reduction Summit, to be hosted by OJP BJA. Complete lists of all program award recipients, including funding amounts, can be found here .


title: Cambridge Man Sentenced to 10 Years in Prison for Drug Distribution Conspiracy and Possession of Firearms

body_text: BOSTON – A Cambridge man was sentenced today in federal court in Boston for federal drug and firearm charges. Ahsan Arty, a/k/a/ “Hass,” 24, was sentenced by U.S. District Court Judge Richard G. Stearns to 10 years in federal prison, followed by three years of supervised release. In May 2023, Arty pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances, and conspiracy to possess and use firearms during and in relation to a drug offense. In February 2021, Arty conspired to sell crack cocaine to an undercover officer and was captured on recording brokering the drug deal. Intercepted communications revealed that Arty also conspired with others to distribute cocaine. In August 2021, Arty travelled to California as part of a promotional music tour for an associate. While in California, Arty went to the residence of another associate and stole approximately four kilograms of cocaine. Text messages recovered during the investigation showed that Arty sent the kilograms of cocaine to Massachusetts and later began distributing them upon his return. In December 2021, Arty and another man traveled to Lawrence to rob an individual who they suspected of having drugs and valuables in their residence. During this incident, Arty was armed with a handgun. They entered the residence and pistol-whipped one of the individuals and demanded the whereabouts of drugs and cash. Ultimately, the drugs and cash were not present. Arty was identified through surveillance video of the vehicle utilized in the incident and text messages proved his involvement. In February 2022, Arty and two other accomplices broke into the residence of an individual in Everett that he suspected of having drugs and cash. The individual was not present. While inside the residence, Arty stole car keys and luxury brand clothing and recorded a livestream video that he published on the internet. Following the break-in, the victim posted a video online with jewelry and cash suggesting that the break-in was poorly executed. The next morning, after viewing the video, associates of Arty attempted to break-in and rob the victim at the same apartment and multiple rounds of gunfire were discharged during the incident. According to text messages recovered in the case, Arty came to pick up the robbers and ultimately taking them on a high-speed chase from responding law enforcement. The vehicle was later located and impounded. Text messages also captured Arty and the robbers developing an alibi for the vehicle’s use in the robbery and chase. In April 2022, Arty was arrested outside of a Boston nightclub due to a report of him having a firearm. When law enforcement responded to the scene, Arty drove his vehicle at the officers and struck a nearby vehicle. Arty and another passenger were immediately taken into custody. Two firearms, including a 9mm firearm that was equipped with a selector switch, rendering it capable of firing fully automatic, were located in Arty’s vehicle. It was learned during the investigation that the target of the February 2022 burglary and robbery was believed to be inside of the nightclub and that Arty was outside of the premises waiting for an opportunity to rob him as he exited. At the time of the offense, Arty was on pretrial release for multiple pending state firearm offenses. These included a January 2019 arrest for possessing a firearm in Boston and a July 2019 arrest for possessing a firearm in Revere. During the Revere incident, Arty fled the scene of an accident and later attempted to flee law enforcement. Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; Suffolk County District Attorney Kevin R. Hayden; Middlesex County District Attorney Marian T. Ryan; Boston Police Commissioner Michael Cox; Cambridge Police Commissioner Christine Elow; Everett Police Chief Steven A Mazzie; Lawrence Acting Police Chief William Castro; and Revere Police Chief David J. Callahan made the announcement. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.


title: Jackson County Man Pleads Guilty to Possession  with Intent to Distribute 70 Grams of Methamphetamine

body_text: Gulfport, Miss. – A Jackson County man pled guilty to possession with intent to distribute 70 grams of methamphetamine. James Richard Morgan, 42, pled guilty in U.S. District Court in Gulfport. According to court documents, Federal Bureau of Investigation and Mississippi Bureau of Narcotics agents utilized a confidential informant to purchase 70 grams of 42% purity methamphetamine from Morgan and co-defendant Karlos Brown in the parking lot of Walmart located on Denny Avenue in Pascagoula. Morgan is scheduled to be sentenced on February 14, 2024, and faces a mandatory minimum of 5 years and a maximum of 40 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Brown previously pled guilty and was sentenced on February 27, 2023, to 70 months in prison. U.S. Attorney Todd W. Gee and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation made the announcement. The case was investigated by the Federal Bureau of Investigation, the Pascagoula Police Department, and the Mississippi Bureau of Narcotics. The case was prosecuted by Assistant U.S. Attorney Erica Rose. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor- led, intelligence driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: United States Seized and Files Forfeiture Action to Recover over $54 Million of Cryptocurrency Traceable to Narcotics Distribution Scheme

body_text: NEWARK, N.J. – The U.S. Attorney’s Office filed a civil forfeiture action today to recover $54 million of cryptocurrency that it previously seized and is traceable to the proceeds of an illegal narcotics distribution scheme operating in and around New Jersey, U.S. Attorney Philip R. Sellinger announced. “The civil action we are taking today seeks to recover millions of dollars of cryptocurrency, which the defendant allegedly obtained from drug sales. Whether it’s as simple as bags of cash or as sophisticated as cryptocurrency, we will take the steps necessary to seize financial gains defendants obtain from criminal activity.” U.S. Attorney Philip R. Sellinger “Many criminals use cryptocurrency on the darknet to operate away from the prying eyes of law enforcement,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our forfeiture action of $54 million should serve as a lesson to those who mistakenly believe we can't trace their illicit behavior or their ill-gotten proceeds. We will successfully hold all criminals responsible in the open, with real world consequences.” According to the complaint: From 2010 to 2015, Christopher Castelluzzo and others conspired to sell various narcotics. Around 2013, Castelluzzo and his conspirators began to sell narcotics on darknet sites in exchange for Bitcoin. Castelluzzo then used some of the Bitcoin he had earned from narcotics sales to purchase 30,000 Ether in Ethereum’s Initial Coin Offering in July 2014. Castelluzzo also received an amount of an additional cryptocurrency – 30,000 Ethereum Classic – in 2016. Castelluzzo used the additional cryptocurrency to purchase various other cryptocurrencies. The complaint seeks the forfeiture of all of the cryptocurrency Castelluzzo obtained as a result of his narcotics sales. Castelluzzo is currently serving concurrent 20-year federal and state prison sentences for drug distribution convictions. While Castelluzzo was incarcerated as a result of these convictions, and as Ethereum increased in value, Castelluzzo plotted from prison to avoid taxes and to move the 30,000 Ether outside of the United States. Before he could do so, however, the United States learned of Castelluzzo’s efforts to launder the cryptocurrency through recorded prison telephone calls in 2021, intervened, and seized Castelluzzo’s cryptocurrency holdings traceable to his drug trafficking crimes. Today, the value of the 30,000 Ether is approximately $54 million. U.S. Attorney Sellinger credited members of the FBI’s Virtual Assets Unit (VAU) under the direction of Assistant Director Luis Quesada of the Financial Crimes Section of the Criminal Investigative Division; FBI Newark Atlantic City Resident Agency under the direction of Special Agent in Charge James E. Dennehy; the FBI-Denver Field division, under the direction of Special Agent in Charge Mark D. Michalek; Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the New Jersey Attorney General’s Office, under the direction of Attorney General Matthew J. Platkin; the New Jersey Special Investigation Division under the direction of Timathy Gonzalez; and the Colorado Springs, Colorado, Police Department, under the direction of Chief Adrian Vasquez, with the investigation. The government is represented by Assistant U.S. Attorneys Robert Frazer of the Organized Crime and Gangs Unit, DeNae M. Thomas of the Health Care Fraud Unit, and Jordan M. Anger of the Asset Recovery and Money Laundering Unit. The accusations in the complaint, and the description of the complaint, constitute only allegations. castelluzzo.complaint.pdf