component: USAO - Virginia, Western

body_text: ABINGDON, Va. – McKinsey & Company Inc. (McKinsey), a global management consulting firm based in New York, has agreed to pay $650 million to resolve a criminal and civil investigation into the firm’s consulting work with opioids manufacturer Purdue Pharma L.P. (Purdue). The resolution pertains to McKinsey’s advice to Purdue concerning the sales and marketing of Purdue’s extended-release opioid drug, OxyContin, including a 2013 engagement in which McKinsey advised on steps to “turbocharge” sales of OxyContin. Today’s resolution marks the first time a management consulting firm has been held criminally responsible for advice resulting in the commission of a crime by a client and reflects the Justice Department’s ongoing efforts to hold actors accountable for their roles in the opioid crisis. The resolution is also the largest civil recovery for such conduct. Additionally, a former McKinsey senior partner who worked on Purdue matters has been charged with obstruction of justice in federal court in Abingdon, Virginia. Martin E. Elling, 60, a U.S. citizen currently residing in Bangkok, Thailand, has been charged with one count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department. Elling has agreed to plead guilty and is expected to appear in federal court in Abingdon to enter his plea and for sentencing at later dates. As part of the government’s resolution with McKinsey, the company has entered into a five-year deferred prosecution agreement (DPA) ( part one and part two ) in connection with a criminal Information filed in U.S. District Court for the Western District of Virginia against McKinsey’s U.S. subsidiary (McKinsey & Company Inc. United States, “McKinsey U.S.”). The information charges McKinsey U.S. with one felony count of knowingly destroying records, documents and tangible objects with the intent to impede, obstruct, and influence the investigation and proper administration of a matter within the jurisdiction of the Justice Department; and one misdemeanor count of knowingly and intentionally conspiring with Purdue and others to aid and abet the misbranding of prescription drugs, held for sale after shipment in interstate commerce, without valid prescriptions. McKinsey has agreed to pay a penalty of over $231 million, a forfeiture amount of over $93 million (reflecting all money it was paid by Purdue from 2004 to 2019) and a payment of $2 million to the Virginia Medicaid Fraud Control Unit to resolve the criminal allegations. McKinsey also has entered into a civil settlement agreement in which it will pay over $323 million to resolve its liability under the False Claims Act for allegedly providing advice to Purdue Pharma L.P. that caused the submission of false and fraudulent claims to federal healthcare programs for medically unnecessary prescriptions of OxyContin, as well as allegedly failing to disclose to the U.S. Food and Drug Administration (FDA) conflicts of interest arising from McKinsey US’s concurrent work for Purdue and the FDA. This brings the total payments under the global resolution to $650 million. Today’s filing includes a 71-page Agreed Statement of Facts , which provides a detailed account of McKinsey’s work with Purdue relating to OxyContin. As part of the resolution, McKinsey has agreed to implement a significant compliance program, including a system of policies and procedures designed to identify and assess high-risk client engagements. As part of this compliance program, McKinsey will implement new document retention procedures and training for all partners, officers and employees who provide or implement advice to clients. This compliance program is in addition to the provisions negotiated between McKinsey and the Department in a concurrent resolution with McKinsey & Company Africa that was announced on Thursday, Dec. 5. McKinsey has also agreed that it will not do any work related to the marketing, sale, promotion or distribution of controlled substances during the five-year term of the DPA. The resolution requires McKinsey’s Managing Partner to certify, on an annual basis, the firm’s compliance with its obligations under the DPA and federal law. “For the first time in history, the Justice Department is holding a management consulting firm and one of its senior executives criminally responsible for the sales and marketing advice it gave resulting in the commission of crime by a client,” said U.S. Attorney Christopher R. Kavanaugh for the Western District of Virginia. “This ground-breaking resolution demonstrates the Justice Department’s ongoing commitment to hold accountable those companies and individuals who profited from our Nation’s opioid crisis.” “This global resolution shows the department’s commitment to holding accountable those who played key roles in fueling the opioid crisis,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Consulting companies cannot advise their clients to break the law, and then skirt responsibility when their clients do so.” “McKinsey schemed with Purdue Pharma to ‘turbocharge’ OxyContin sales during a raging opioid epidemic — an epidemic that continues to decimate families and communities across the nation. Today’s groundbreaking resolution makes clear our office’s commitment to holding powerful companies accountable for their part in the opioid epidemic, even if they did not make, sell, or dispense the drugs,” said U.S. Attorney Joshua Levy for the District of Massachusetts. “Consulting firms like McKinsey should get the message: if the advice you give to companies in boardrooms and PowerPoint presentations aids and abets criminal activity, we will come after you and we will expose the truth.” “No amount of money can make-up for the devastating impact and heartbreaking loss of life the opioid crisis has inflicted on the people of Massachusetts, and our country. But today’s settlement is a sobering reminder that if you try to capitalize on a crisis by putting profits over patient safety — and then try to obstruct a federal investigation — you will pay a hefty price,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “McKinsey is now being held criminally and financially accountable for devising an aggressive marketing strategy that was in reality a roadmap to boost sales of highly addictive opioids. Their actions resulted in powerful prescription painkillers being used in an unsafe, ineffective, and medically unnecessary manner. As both health care consumers, and taxpayers, this type of fraud negatively impacts all of us.” “McKinsey’s management consulting work with Purdue Pharmaceuticals significantly contributed to a devastating public health crisis affecting American families and communities nationwide,” said Inspector General Christi A. Grimm of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to holding accountable those who violate the law and put the public at risk, including health care consultants who are complicit in fraudulent schemes.” “Aiding and abetting in the potential misbranding and illegal distribution of controlled substances poses a danger to U.S. consumers,” said Special Agent in Charge George A. Scavdis of the FDA Office of Criminal Investigations Metro Washington Field Office. We will continue to investigate and bring to justice companies whose actions put profits over patient safety.” “Today’s resolution holds this defendant accountable for its role in the aggressive marketing and promotion of opioids. Their actions led to medically unnecessary opioid prescriptions, which compromised the integrity of VA’s healthcare system that cares for our nation’s veterans,” said Department of Veterans Affairs (VA) Inspector General Michael J. Missal. “We thank our law enforcement partners for their diligent work in bringing this case to closure.” “It shocks the conscience that a major consulting corporation would actively seek to increase the submission of fraudulent claims for medically unnecessarily opioid prescriptions in the midst of the opioid crisis,” said Inspector General Krista A. Boyd of the U.S. Office of Personnel Management Office of the Inspector General. “The outstanding efforts of our law enforcement partners and colleagues at the Department of Justice led to this ground-breaking result. We must hold accountable those who prey upon the most vulnerable Americans in the name of increased profits.” As described in the DPA, McKinsey received credit for its cooperation with the United States in connection with the criminal investigation, including providing updates regarding information obtained through is internal investigation; highlighting documents of interest in voluminous productions; and facilitating interviews. McKinsey also engaged in extensive remedial measures, including voluntarily stopping all work in 2019 on any opioid-specific business issues; terminating two senior partners, including Elling, who communicated about deleting opioid-related documents concerning Purdue; hiring a new chief legal officer and chief ethics and compliance officer; significantly enhancing its new client selection framework; and deploying a formalized diligence review and intake process for all clients. McKinsey has agreed to continue to cooperate with the United States. McKinsey’s Criminal Liability for Misbranding The criminal misbranding charge was based on McKinsey’s advice to Purdue Pharma L.P. as set forth in the Agreed Statement of Facts filed today. Between 2004 and 2019, McKinsey contracted with Purdue on 75 different engagements in the United States. In 2007, a Purdue affiliate pleaded guilty to misbranding OxyContin, from 1996 through 2001, by falsely marketing it as less addictive, less subject to abuse and diversion, and less likely to cause dependence and withdrawal than other pain medications, and Purdue entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. After the 2007 guilty plea, McKinsey partners maintained close contact with Purdue, and in 2009, worked with Purdue to enhance “brand loyalty” for OxyContin and protect market share. In 2010 McKinsey worked with Purdue to obtain FDA approval for a version of OxyContin that was reformulated with abuse-deterrent properties. Following the introduction of reformulated OxyContin in August 2010, OxyContin sales immediately began to decline. Purdue studied the drivers for this decline and attributed it, in large part, to a drop in prescriptions for individuals abusing OxyContin and increases in regulatory safeguards intended to hinder medically unnecessary prescribing of OxyContin. In May 2013, Purdue retained McKinsey to conduct a rapid assessment of the underlying drivers of OxyContin performance, identify key opportunities to increase near-term OxyContin revenue and develop plans to capture priority opportunities. This 2013 effort was called Evolve to Excellence, or “E2E,” and included McKinsey advising Purdue on how to “turbocharge” the sales pipeline for OxyContin by, among other strategies, intensifying marketing to High Value Prescribers, included prescribers who were writing opioid prescriptions for uses that were unsafe, ineffective, and medically unnecessary. McKinsey consultants spoke with Purdue about the concerns and increasing reluctance of pharmacists and pharmacy chains to fill prescriptions for OxyContin as abuse of the drug rose. McKinsey consultants also went on several “ride-alongs” with Purdue sales representatives in the field, as these sales representatives called on prescribers and pharmacists. In notes about one of these ride-alongs, a McKinsey consultant wrote, in part, “Pharmacist; [had] a gun and was shaking; abuse is definitely a huge issue[.]” In August 2013, McKinsey partners met with certain members of the Purdue Board of Directors (members of the family that controlled Purdue) to present McKinsey’s findings and proposal; as one McKinsey partner reported afterwards, “[b]y the end of the meeting the findings were crystal clear to everyone and they gave a ringing endorsement of ‘moving forward fast.’” McKinsey also described for Purdue the financial value at stake: “hundreds of millions, not tens of millions.” For Purdue and McKinsey, E2E was a financial success. Their targeting of High Value Prescribers slowed OxyContin’s declining sales and kept Purdue’s profits flowing at the expense of public health. After the conclusion of McKinsey’s work for Purdue on E2E, McKinsey performed additional work with Purdue that also sought to maximize OxyContin sales by further targeting sales efforts to High Value Prescribers. Obstruction of Justice by Former McKinsey Senior Partner According to the charging documents filed today, Elling served as the Director of the client services team for approximately 30 of McKinsey’s engagements with Purdue. He had a senior, relationship-focused role with respect to the E2E engagement and was involved in securing the engagement for McKinsey. On July 4, 2018, Elling allegedly emailed another senior partner: “Just saw in the FT that [Purdue board member] is being sued by states attorneys general for her role on the [Purdue] Board. It probably makes sense to have a quick conversation with the risk committee to see if we should be doing anything other [than] eliminating all our documents and emails. Suspect not but as things get tougher there someone might turn to us.” According to court documents, forensic analysis of Elling’s McKinsey-issued laptop found that Elling in fact removed materials related to McKinsey’s work for Purdue from the laptop, as well as a Purdue-related folder from his Outlook email account. Elling faces a maximum penalty of 20 years in prison, three years of supervised release and a fine up to $250,000 for the obstruction of justice charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. False Claims to Federal Healthcare Programs The department’s civil False Claims Act settlement resolves allegations that, from 2013 to 2014, McKinsey US, by advising Purdue to turbocharge OxyContin marketing to High Value Prescribers, some of whom were already prescribing very large quantities of OxyContin, as a means to increase OxyContin sales, and despite its awareness of the opioid crises, thereby knowingly caused false and fraudulent claims for OxyContin to be submitted to Medicare, Medicaid, TRICARE, the Federal Employees Health Benefit Program and the Veterans Health Administration. Along with the civil settlement, McKinsey US entered into a five-year Corporate Integrity Agreement with HHS-OIG. The CIA, HHS-OIG’s first with a management consulting firm, contains novel obligations regarding risk assessment and quality control. First, the CIA requires McKinsey’s Compliance Committee to establish a robust risk evaluation process, evaluating engagement risks and providing quality oversight for certain client deliverables. Second, it requires McKinsey to establish a Quality Review Program to assess the quality of McKinsey’s advice to certain life sciences and health care clients with the dual goals of ensuring that McKinsey complies with applicable laws and does not provide or assist clients with plans, advice, or strategies that violate the law. HHS-OIG will select an independent Compliance Expert to review McKinsey’s systems and processes under the Quality Review Program and to review a sample of McKinsey client engagements, including the advice provided to those clients. False Claims to FDA The department’s civil False Claims Act settlement also resolves allegations that, from 2014 to 2017, McKinsey US knowingly misled the FDA by assigning consultants to concurrently work on both FDA projects and competitively sensitive Purdue projects, contrary to McKinsey US’ conflict of interest policy. While soliciting a contract from the FDA, McKinsey US represented to the FDA that it had a conflict-of-interest policy in which its consultants serving the FDA would not be assigned to a competitively sensitive project for a significant period of time following an assignment for FDA. The FDA then awarded McKinsey US the first in a series of contracts on a project relating to the monitoring of the safety of FDA-regulated products. McKinsey US admitted that it did not inform the FDA that its consultants worked on the Purdue projects around the same time those consultants also worked on the FDA project. Assistant U.S. Attorney Randy Ramseyer for the Western District of Virginia; Assistant U.S. Attorneys Amanda P. Masselam Strachan and William B. Brady for the District of Massachusetts; Senior Trial Counsel Kristen M. Echemendia of the Civil Division’s Commercial Litigation Branch, Fraud Section; Trial Attorneys Jessica Harvey and Steven R. Scott of the Civil Division’s Consumer Protection Branch; and Special Assistant U.S. Attorneys and Assistant Attorneys General Kristin Gray and Kimberly Bolton of the Virginia Office of the Attorney General’s Medicaid Fraud Control Unit are prosecuting the criminal case against Elling and McKinsey. The civil resolution was handled by Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section. The FDA Office of Criminal Investigations, FBI and Offices of the Inspector General of the Department of Health and Human Services, Department of Veterans Affairs and Office of Personnel Management investigated the case, with assistance from the Department of Justice’s Computer Crimes and Intellectual Property Section Cybercrime Lab. The details contained in the charging documents and civil resolution are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Columbia Man Sentenced to Federal Prison After Police Find Gun and Drugs While Serving Arrest Warrant

component: USAO - South Carolina

body_text: COLUMBIA, S.C. —Shiloh Wright, 42, of Columbia, was sentenced to seven years in federal prison after pleading guilty to possession with intent to distribute fentanyl, cocaine, and crack cocaine and possession of a firearm during a drug trafficking offense. Evidence presented to the court showed that on Sept. 1, 2022, officers with the City of Columbia Police Department went to a local truck stop to arrest Wright on an outstanding warrant. The officers found Wright driving a vehicle and took him into custody. Officers searched Wright in preparation to take him to the detention center and found plastic baggies containing crack cocaine and cocaine in his underwear. Officers also searched Wright’s vehicle and found a digital scale, a black bookbag containing a loaded firearm, fentanyl pills, marijuana, and a debit card belonging to Wright. Wright has previous convictions for possession with intent to distribute crack cocaine, distribution of crack cocaine, resisting arrest, domestic violence, and assault and battery. United States District Judge Cameron McGowan Currie sentenced Wright to 84 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. 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 City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case. ###


title: Former Secret Service Agent Pleads Guilty to Theft of Cryptocurrency from Evidence Vault

component: USAO - Arizona

body_text: TUCSON, Ariz. – Anthony Joseph Evans, 32, of Tucson, pleaded guilty last week to Officer or Employee of the United States Converting Property of Another. Evans is scheduled to be sentenced on February 19, 2025, before United States District Judge Rosemary Márquez. Evans admitted that while working as a Special Agent for the United States Secret Service in the Phoenix, Arizona Field Office in early 2022, he accessed cryptocurrency on a hard wallet held in the agency’s secure evidence vault. Evans then transferred the cryptocurrency, worth approximately $56,000, to two wallets he owned or controlled. Evans moved the cryptocurrency through various exchanges, converted most of it into U.S. dollars, and transferred the proceeds to multiple bank accounts he owned. Evans later used the money to pay for personal expenditures, including repayment of debt. Under the terms of the plea agreement, Evans faces up to a year and a day in prison and is required to pay restitution to the victim for the value of the cryptocurrency, including any appreciation in value incurred prior to sentencing. The United States Secret Service’s Cyber Investigative Section in Washington, DC conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution. CASE NUMBER: CR 24-6868-TUC-RM RELEASE NUMBER: 2024-175_Evans # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Rapid City Man Sentenced to Nine Years in Federal Prison for Illegal Possession of Firearm

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on December 11, 2024. Charles Colhoff, age 36, was sentenced to nine 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. Colhoff was indicted by a federal grand jury in February 2024. He pleaded guilty on October 3, 2024. On November 4, 2023, Colhoff was involved in a shooting in Rapid City where he and another individual exchanged gunfire following an argument. Colhoff was uninjured but the other individual sustained two gunshot wounds and required surgery. Officers processing the scene located three 9mm cartridge casings related to the shooting. Colhoff was located by law enforcement on November 11, 2023, and found to be in possession of a Browning 9mm semi-automatic pistol believed to be the same pistol Colhoff used in the shooting. Ballistics testing was conducted, which confirmed the three 9mm casings recovered at the shooting scene were fired from the pistol recovered from Colhoff. Colhoff knew he was prohibited from possessing firearms based on a prior federal felony offense, which also involved a firearm. 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, the Pennington County Sheriff's Office, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case. Colhoff was immediately remanded to the custody of the U.S. Marshals Service.


title: Federal Bureau of Prisons Correctional Officer Sentenced for Three Counts of Sexual Abuse of a Ward

component: Federal Bureau of Investigation (FBI)

body_text: A Kentucky man was sentenced today to 100 months in prison followed by a lifetime of supervised release and restitution of $21,000 to each of the three victims for three counts of sexual abuse of a ward. According to his plea agreement, from Sept. 5, 2020, to Dec. 21, 2020, Jacob Salcido, 40, of Lexington, while employed as a correctional officer at the Federal Medical Center in Lexington, knowingly engaged in sexual acts with three inmates. Salcido admitted that, based on his training and experience, he was aware that any sexual contact between FMC staff and inmates was strictly forbidden and constituted a criminal offense. “Jacob Salcido exploited his power as a correctional officer by sexually abusing three women in his custody,” said Deputy Attorney General Lisa Monaco. “This conviction and significant sentence reflect the Justice Department’s commitment to eradicating sexual abuse in federal prisons, bringing to justice those who violate the public trust by abusing those in their custody.” “Salcido’s duty as a Correctional Officer was to foster a safe and humane environment for inmates,”said Inspector General Michael E. Horowitz. “Instead, Salcido sexually abused three inmates in his custody and care. Salcido’s lengthy prison sentence sends a clear message that federal Correctional Officers who abuse inmates will be brought to justice.” “Instead of securing and caring for those in his custody, the defendant preyed on vulnerable individuals and betrayed an important public charge,” said U.S Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “This despicable conduct has done enduring damage to his victims. And beyond that, when public officials act with such disregard for those in their care, it erodes faith in all law enforcement. We will continue our efforts to protect these individuals, and to combat abuses by those violating the public trust.” The Justice Department’s Office of Inspector General and FBI investigated the case. Assistant U.S. Attorney Zach Dembo for the Eastern District of Kentucky prosecuted the case. The Federal Bureau of Prisons is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the department’s reform efforts.


title: Florida Man Pleads Guilty to Odometer Tampering Charges

component: Civil Division

body_text: Drew Mitchell Schreiber, of Orlando, Florida, pleaded guilty yesterday in the U.S. District Court for the Middle District of Florida to three counts of odometer tampering. Schreiber, owner of Central Florida Automotive Group (now-named Southeastern Credit Union Solutions), in Winter Garden, Florida, purchased high-mileage used vehicles from wholesale automobile auctions throughout Florida. The vehicles’ odometers were then rolled back as much as 428,000 miles and resold to unsuspecting used-vehicle dealers via auto auctions or by online direct sales. The rolled-back vehicles were then sold to victims throughout the United States enriching Schreiber with fraudulent gains. In all, Schreiber sold rolled-back vehicles. Because many of these vehicles were more than 10 years old, Schreiber obtained so-called “exempt” titles that did not reveal the actual mileage of the vehicles. “Just because a motor vehicle may be exempt from mileage recording on a title does not give a dealer the right to roll back odometers,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “With vehicles remaining in use for longer periods of time, many Americans rely on older vehicles as their primary mode of transportation. Used car buyers deserve peace of mind knowing that the odometer reading in their vehicle is correct.” A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation investigated this case. Trial Attorney David Sullivan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Kara Wick for the Middle District of Florida prosecuted the case. Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch .


title: Texas Man Indicted on Child Sexual Exploitation Charges

component: Criminal Division

body_text: An indictment was unsealed today in the Middle District of Tennessee charging a Texas man for child sexual exploitation offenses. According to court documents, between October 2018 and May 2019, Philip Taylor Sobash, 34, of Austin, then a practicing physician, engaged in an online sexually explicit relationship with Minor Victim 1, who resided in the Middle District of Tennessee. This online relationship allegedly began after they connected on a dating website that facilitates “sugar daddy” relationships. Although Minor Victim 1 represented that she was 18 when she signed up for the website, the site did not verify the age of its users. As alleged, after their communications moved to text message, Minor Victim 1 quickly informed Sobash of her true age and sent him a photo of her driver’s license, which confirmed that she was a minor. Sobash allegedly requested that Minor Victim 1 produce and send him sexually explicit images of herself and provided her thousands of dollars in cash and gifts to entice her to do so. Over the course of more than seven months, Minor Victim 1 allegedly sent hundreds of sexually explicit photos and videos to Sobash, most of which constituted child sexual abuse material (CSAM). Although Sobash allegedly assured Minor Victim 1 that the images she sent him would remain private between them, he distributed the images online. This led to unknown persons contacting Minor Victim 1 and attempting to blackmail her to produce more CSAM. Court filings indicate that the FBI discovered in 2024 that Minor Victim 1’s CSAM was available for sale on a publicly accessible website and was labeled with Minor Victim 1’s first and last name. The CSAM was part of a larger collection of sexually explicit images and videos of about 70 young women and girls called the “DiscreetGent” collection. According to court documents, evidence from various sources that indicates Sobash is “DiscreetGent” and is responsible for the sexually explicit imagery found in the online collection. The court filings further allege that in addition to Minor Victim 1, at least four other victims featured in the “DiscreetGent” collection were minors at the time they created CSAM for Sobash. Sobash allegedly sent electronic payments to Minor Victim 1 and the other minor victims, sometimes with sexual comments attached, and Sobash’s Apple iCloud account contained copies of Minor Victim 1’s CSAM. Sobash was arrested earlier today in the Western District of Texas. He is charged with one count of sexual exploitation of a minor, one count of coercing a minor to engage in prostitution or unlawful sexual activity, and one count of receipt of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison on the sexual exploitation of a minor count, a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison on the coercing a minor to engage in prostitution or unlawful sexual activity count, and a mandatory minimum penalty of five years in prison and a maximum penalty of 20 years in prison for the receipt of child pornography count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Anyone who believes they or their minor dependent was victimized by Sobash is asked to visit the following FBI website and complete a short online questionnaire: www.fbi.gov/SobashVictims . Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division; Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee; and Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division made the announcement. The FBI’s Child Exploitation Operational Unit is investigating the case. Trial Attorney Adam Braskich of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Monica R. Morrison for the Middle District of Tennessee are prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the 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. The defendant is presumed innocent until proven guilty in a court of law.


title: Seattle man pleads guilty to wire fraud and aggravated identity theft for schemes to steal from employer, disaster relief program, and former significant other

component: USAO - Washington, Western

body_text: Seattle – A 31-year-old Seattle man pleaded guilty today in U.S. District Court in Seattle to two counts of wire fraud and one count of aggravated identity theft for three different fraud schemes between 2019 and 2022, announced U.S. Attorney Tessa M. Gorman. Westcott Francis-Curley has been in custody since March 2024, following his indictment in August 2023. U.S. District Judge Ricardo S. Martinez scheduled sentencing for March 21, 2025. The schemes began in 2019, when Francis-Curley embezzled money from his then-employer by misusing cloud computing resources and accounts available to him as an employee. Francis-Curley used employer bank accounts and his employee work authorizations to purchase cloud computing resources, then sell them back to the company—paying himself with company money—at many times their market value. Through this scheme he obtained more than $550,000, and he was caught while attempting to obtain another half-million dollars. He spent significant portions of the proceeds on extravagances, such as private jets. In 2020, Francis-Curley defrauded the Paycheck Protection Program, a COVID assistance program designed to help small businesses and their employees weather the pandemic. Francis-Curley filed paperwork claiming that two companies he controlled had large payrolls that qualified for assistance, when in fact they had no operations, had no payroll, and did not qualify for relief. He obtained nearly $100,000 and spent much of it on personal goods and services. Finally, in October 2022, Francis-Curley applied for and obtained a credit card in the name of his former significant other. Francis-Curley used the card for more than $1,000 in personal expenditures. For the totality of that conduct, prosecutors and Francis-Curley’s attorneys will recommend a three-year prison term. Judge Martinez is not bound by the recommendation and can impose any sentence allowed by law. Francis-Curley has agreed to pay restitution to his former employer, to the Small Business Administration, and to the person whose identity he used to obtain the credit card. Wire fraud is punishable by up to 20 years in prison. Wire fraud in connection with a national disaster is punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory two years in prison to run consecutive to any other sentence imposed in the case. The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney David T. Martin.


title: Former Orange County Resident Linked to White Supremacy Group Sentenced to 2 Years in Prison for Rioting at Political Rallies

component: USAO - California, Central

body_text: LOS ANGELES – A former resident of Huntington Beach who has been linked to a white supremacy extremist group was sentenced today to 24 months in federal prison for planning and engaging in riots at political rallies across California. Robert Paul Rundo, 34, was sentenced by United States District Judge Josephine L. Staton. Rundo pleaded guilty on September 13 to one count of conspiracy to violate the federal Anti-Riot Act. “This defendant sought to further his white-supremacist ideology by plotting riots and engaging in violence at political rallies,” said United States Attorney Martin Estrada. “Hate and violence are antithetical to American values and tear at our community. It is therefore critical that we protect the civil and constitutional rights of our community against those who promote divisiveness.” “After a lengthy investigation, during which the defendant became an international fugitive, Mr. Rundo has now been held accountable for his criminal activity which was motivated by his extremist dogma,” said Akil Davis, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “Mr. Rundo's movement did not ‘rise above’ whatever differences Americans may have, but was divisive, harmful to others and ultimately led him to prison. The FBI will continue to pursue those whose ideology leads to violence and lawlessness.” From March 2017 to May 2018, Rundo and others participated in an organization that ultimately was rebranded as the “Rise Above Movement” (RAM). RAM representing itself as a fighting group of a new nationalist and white supremacy identity movement. As part of their membership in RAM, Rundo and others attended rallies with the intent to provoke and engage in violence. To prepare for violent physical conflicts, Rundo and others held hand-to-hand and other fighting training sessions, which they organized through telephone calls, social media, and text messages. Rundo organized and attended several such training sessions in 2017. On various social media platforms, Rundo and others posted messages and photographs of themselves preparing for or engaging in violence, accompanied by statements such as “#rightwingdeathsquad.” In March 2017, Rundo and other RAM members held a training in San Clemente to prepare to engage in violence at political events, including a rally on March 25, 2017, in Huntington Beach. At the Huntington Beach rally, Rundo and other RAM members pursued and assaulted other persons, including one protestor whom Rundo tackled and punched multiple times. Following the event, Rundo and his co-conspirators posted online photographs and videos celebrating the assaults they had committed. Rundo also helped organize training for RAM members in anticipation of a rally scheduled to occur on April 15, 2017, in Berkeley. At the Berkeley rally, there were several violent clashes throughout the day. In one such instance, Rundo and several of his co-conspirators crossed a police barrier erected to separate opposing groups. They then punched and kicked several people. Following the event, Rundo and his co-conspirators again posted online photographs and videos celebrating the assaults they had committed. On June 10, 2017, Rundo and others attended a rally in San Bernardino, at which they confronted and pursued protesters. In the months following these events, Rundo and his co-conspirators continued to publicly celebrate their assaults, including through online posts with photos and videos of RAM members assaulting people. Two other defendants have been charged in this case: Robert Boman, 31, of Torrance, who has pleaded not guilty to one count of conspiracy to violate the Anti-Riot Act and one count of rioting, and has a trial date of February 18, 2025, scheduled; and Tyler Laube, 28, of Redondo Beach, who pleaded guilty in October 2023 to one count of interfering with a federally protected right and later was fined $2,000 and sentenced to time already served in custody. The FBI’s Joint Terrorism Task Force investigated this case. Assistant United States Attorneys Kathrynne N. Seiden and Anna P. Boylan of the Terrorism and Export Crimes Section are prosecuting this case.


title: United States Settles False Claims Act Allegations Against Pharmaceutical Distributor for Paying Kickbacks Through Inventory Management Systems

body_text: ASD Specialty Healthcare LLC (ASD), doing business as Besse Medical (Besse), has agreed to pay $1.67 million to resolve allegations that it violated the Anti-Kickback Statute and False Claims Act by providing inventory management systems to retina practices at no cost to induce them to purchase drugs from Besse. ASD, headquartered in Carrollton, Texas, distributes specialty medical and pharmaceutical products nationwide, including ophthalmological injections that treat neovascular age-related macular degeneration (wet AMD). As part of the settlement agreement , ASD admits that it acquired a commercially available inventory management system, known as PODIS, in May 2017. Through November 2023, ASD offered PODIS at no cost to customers who met certain purchase requirements, including that they purchase branded Wet AMD drugs from ASD and convert to an ASD customer if not a current customer. The government alleges that ASD caused physicians to submit false claims to Medicare, TRICARE and the Department of Veterans Affairs induced by these kickbacks. The Anti-Kickback Statute prohibits any person, including specialty medical and pharmaceutical suppliers, from offering or paying, directly or indirectly, any remuneration — which includes money or anything of value, such as free inventory management systems — to induce the purchase of a drug that Medicare pays for. “According to the allegations in today’s settlement, ASD purchased a commercially available product and leveraged it to gain business in violation of the AKS,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue kickbacks at all levels of the distribution chain to preserve the integrity of federal health care programs.” “Pharmaceutical distributors cannot violate the law to gain a financial advantage,” said U.S. Attorney Joshua S. Levy for the District of Massachusetts. “Offering improper incentives to health care customers can increase health care costs and disadvantage competitors who are playing by the rules. Our office is committed to continue pursuing these investigations with our federal law enforcement partners.” “Improper financial inducements can compromise medical judgement and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services Office of Inspector General. “We are committed to pursuing allegations of kickbacks and false claims as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.” “Investigating schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Justice Department to pursue those individuals and corporations that submit false claims to the TRICARE system.” “Investigations such as these help safeguard the integrity of the healthcare industry marketplace and protect taxpayer funds,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General (VA OIG)’s Northeast Field Office. “The VA OIG thanks the Justice Department and our federal law enforcement partners for their collaboration in this joint investigation.” The settlement resolves claims brought under the whistleblower or qui tam provisions of the FCA by Julianne Nunnelly and Matthew Shanks. Ms. Nunnelly and Mr. Shanks are former employees of Regeneron Pharmaceuticals Inc., which manufactures and sells a drug to treat wet AMD. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. Mr. Shanks and Ms. Nunnelly will receive $250,705.20 from the proceeds of the settlement. The lawsuit is captioned United States ex rel. Nunnelly et al. v. Regeneron Pharmaceuticals, Inc. et al. , No. 20-cv-11401-PBS (Dist. Mass.). The United States filed a complaint in intervention against Regeneron Pharmaceuticals, Inc. , on March 28, that remains pending. The investigation of this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the District of Massachusetts, with assistance from the Department of Health and Human Services Office of Inspector General, FBI, DCIS, VA-OIG and the Office of Personnel Management Office of Inspector General. The investigation and resolution of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Trial Attorneys Douglas Rosenthal and Samuel Lehman of the Justice Department’s Civil Division and Assistant U.S. Attorneys Diane Seol and Lindsey Ross for the District of Massachusetts handled the matter. The claims resolved by the settlement are allegations only, and there has been no determination of liability.


title: Fentanyl Dealer Sentenced to Eight Years

body_text: RALEIGH, N.C. – A Wake Forest man was sentenced to 96 months in prison for dealing fentanyl in Raleigh. On September 23, 2024, Michael Anthony Weidner pled guilty two counts of distribution of a quantity of fentanyl. According to court documents and other information presented in court, Michael Weidner, 31, sold cocaine, and fentanyl and Adderall pills from October 2022 through April 2024. In addition, in November of 2022, Weidner, a convicted felon, was found intoxicated and asleep in the driver’s seat of a car with a loaded AR-15 style firearm on the passenger seat. When a Wake County Sheriff’s Deputy approached and awakened Weidner, Weidner reached for the firearm and was taken into custody. As a previously convicted felon, Weidner cannot legally possess a firearm or ammunition. This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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. Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Federal Bureau of Investigation, Raleigh Police Department, and Wake County Sheriff’s Office investigated the case and Assistant U.S. Attorney Charles E. Loeser prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-85-M-KS.


title: Doctor Charged for Unlawful Distribution of Oxycodone and Other Controlled Substances

body_text: A New Jersey doctor was arrested yesterday for unlawfully distributing oxycodone and other controlled substances. According to court documents, Larry Pettis, 76, of Westampton, owned a medical practice that had multiple locations in New Jersey that purported to provide pain management and other services. Pettis allegedly pre-signed prescriptions for controlled substances so that another individual, who was not allowed to issue such prescriptions, could issue them when Pettis was out of the office. Pettis allegedly caused prescriptions for controlled substances, including opioids such as oxycodone, to be issued to patients even though Pettis had failed to assess the patients. Pettis is also alleged to have issued prescriptions for controlled substances when a patient’s drug test results raised red flags for substance abuse and drug diversion and to have caused medical records to be altered and fabricated. Pettis is charged with four counts of unlawful distribution of controlled substances. If convicted, he faces a maximum penalty of 20 years in prison on each count. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director in Charge Wayne A. Jacobs of the FBI Philadelphia Field Office, South Jersey Resident Agency; Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration (DEA) New Jersey Division, Camden District Office made the announcement. FBI, HHS-OIG, and DEA are investigating the case. Trial Attorneys Nicholas Peone and Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing Victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit: www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas . The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: ASD Specialty Healthcare (D/B/A Besse Medical) Agrees To Pay $1.67 Million for Allegedly Paying Kickbacks to Retina Practices

component: USAO - Massachusetts

body_text: BOSTON – ASD Specialty Healthcare, LLC (ASD), doing business as Besse Medical (Besse), has agreed to pay $1.67 million to resolve allegations that it provided inventory management systems to retina practices at no cost to induce them to purchase drugs from Besse, in violation of the Anti-Kickback Statute. ASD, headquartered in Carrollton, Texas, distributes specialty medical and pharmaceutical products nationwide, including ophthalmological injections that treat neovascular age-related macular degeneration (wet AMD). As part of the settlement agreement, ASD admitted and accepted responsibility for certain facts providing the basis of the settlement. In May 2017, ASD acquired an inventory management system known as PODIS, which was specialized for retina practices to manage inventory of, and reimbursements for, high-cost injectable medications such as drugs that treat wet AMD. Through November 2023, ASD offered PODIS at no cost to customers who entered into “prime vendor agreements” that required them to purchase a certain percentage of their specialty drugs from ASD. ASD required customers who did not enter into prime vendor agreements to pay a monthly fee for access to PODIS. Following its acquisition of PODIS, ASD then discontinued access to PODIS for non-ASD customer retina practices that had used PODIS prior to the acquisition, including customers who offered to pay a monthly fee to continue using PODIS. The government alleges that ASD caused physicians to submit false claims to Medicare, TRICARE and the Department of Veterans Affairs induced by these kickbacks. “Pharmaceutical distributors cannot violate the law to gain a financial advantage,” said United States Attorney Joshua S. Levy. “Offering improper incentives to health care customers can increase health care costs and disadvantage competitors who are playing by the rules. Our office is committed to continue pursuing these investigations with our federal law enforcement partners.” “According to the allegations in today’s settlement, ASD purchased a commercially available product and leveraged it to gain business in violation of the AKS,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue kickbacks at all levels of the distribution chain to preserve the integrity of federal health care programs.” “Improper financial inducements can compromise medical judgement and threaten the integrity of the Medicare program,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “We are committed to pursuing allegations of kickbacks and false claims as we work to protect the integrity of the taxpayer-funded Medicare program, and we encourage the public to come forward with information about such conduct.” “Today’s settlement resolves allegations that Besse Medical paid kickbacks to medical practices treating patients with age-related macular degeneration in an effort to drum up business for the drugs they sold and increase their revenue,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “This case highlights the FBI’s commitment to rooting out health care fraud, one case at a time, and ensuring accountability for those who run afoul of the law.” “Investigating schemes that undermine the integrity of TRICARE, the healthcare system for military members and their families, is a top priority for the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS)," stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today’s announcement demonstrates our commitment to work with our partner agencies and the Department of Justice to pursue those individuals and corporations that submit false claims to the TRICARE system.” “Investigations such as these help safeguard the integrity of the healthcare industry marketplace and protect taxpayer funds,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG thanks the Department of Justice and our federal law enforcement partners for their collaboration in this joint investigation.” The settlement resolves, in part, claims brought under the whistleblower or qui tam provisions of the False Claims Act by former employees of Regeneron Pharmaceuticals, Inc., also a named defendant in the case, which manufactures and sells a drug to treat wet AMD. The government intervened in the qui tam and filed a complaint against Regeneron concerning separate allegations, and the parties currently are litigating that matter in U.S. District Court. Under the FCA, private parties may sue on behalf of the government for false claims for government funds and receive a share of any recovery. The whistleblowers will receive $250,705.20 from the proceeds of the settlement. The lawsuit is captioned U nited States ex rel. Nunnelly et al. v. Regeneron Pharmaceuticals, Inc. et al. , No. 20-cv-11401-PBS (Dist. Mass.). U.S. Attorney Levy, AAG Boynton, FBI SAC Cohen, HHS-OIG SAC Coviello, DCIS SAC Hegarty and VA-OIG SAC Algieri made the announcement today. This matter was handled by Assistant U.S. Attorneys Lindsey Ross and Diane Seol of the District of Massachusetts and Trial Attorneys Douglas Rosenthal and Samuel Lehman of the Justice Department’s Civil Division.


component: USAO - Florida, Middle

body_text: Orlando, FL – Drew Mitchell Schreiber, of Orlando, Florida, pleaded guilty yesterday in the U.S. District Court for the Middle District of Florida to three counts of odometer tampering. Schreiber, owner of Central Florida Automotive Group (now-named Southeastern Credit Union Solutions), in Winter Garden, Florida, purchased high-mileage used vehicles from wholesale automobile auctions throughout Florida. The vehicles’ odometers were then rolled back as much as 428,000 miles and resold to unsuspecting used-vehicle dealers via auto auctions or by online direct sales. The rolled-back vehicles were then sold to victims throughout the United States enriching Schreiber with fraudulent gains. In all, Schreiber sold rolled-back vehicles. Because many of these vehicles were more than 10 years old, Schreiber obtained so-called “exempt” titles that did not reveal the actual mileage of the vehicles. “Just because a motor vehicle may be exempt from mileage recording on a title does not give a dealer the right to roll back odometers,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “With vehicles remaining in use for longer periods of time, many Americans rely on older vehicles as their primary mode of transportation. Used car buyers deserve peace of mind knowing that the odometer reading in their vehicle is correct.” A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The National Highway Traffic Safety Administration Office of Odometer Fraud Investigation investigated this case. Trial Attorney David Sullivan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Kara Wick for the Middle District of Florida prosecuted the case. Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch . plea_agreement.pdf


title: Charleston Man Sentenced to 10 Years in Federal Prison for Weapon and Drug Violations

body_text: CHARLESTON, S.C. — Antwon Rashad Brown, 30, of Charleston, was sentenced to 10 years in federal prison after pleading guilty to possession of a firearm by a felon and possession with intent to distribute controlled substances. Evidence presented to the court showed that Brown engaged in a multiple year conspiracy to distribute marijuana. Between May 2021 and July 2022, Brown was arrested four times and charged with multiple narcotics and firearms violations. On July 22, 2021, law enforcement searched Brown’s residence and located more than 1.5 kilograms of marijuana, extended firearm magazines, ammunition, digital scales, a money counter, more than $1,000 in cash, a loaded AR-15 style pistol, and a loaded 9mm pistol throughout the residence and his bedroom. Brown had multiple felony convictions preventing him from legally possessing a firearm and ammunition, including multiple violent acts involving firearms. United States District Judge David C. Norton sentenced Brown to 1o years imprisonment followed by four years of court-ordered supervision. 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, Charleston Police Department, and Charleston County Sheriff’s Office. Assistant U.S. Attorney Chris Lietzow is prosecuting the case. ###


title: Port St. Lucie Man Sentenced to 15 years in Prison for Third Bank Robbery Conviction

component: USAO - Florida, Southern

body_text: MIAMI – A Port St. Lucie man was sentenced to 15 years in prison after pleading guilty to bank robbery, which is his third such conviction. David Abram Ziesel, 45, previously pled guilty to robbing a bank in Fellsmere, Fla. According to court records, in January of 2024, Ziesel entered the bank with his face and head covered, and immediately began shouting, “This is a robbery!” Ziesel demanded bank employees put cash in his pillowcase, and then Ziesel fled the bank. Law enforcement officers quickly located Ziesel’s vehicle as it traveled at speeds of over 100 m.p.h. Ziesel then led officers on a high-speed chase down I-95 and into the City of Fort Pierce, weaving in and out of cars, driving down the wrong side of the road, and running red lights. The pursuit ended when Ziesel crashed his car into another vehicle, and it came to rest against a power pole. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, and Jeffrey B. Veltri, Special Agent in Charge, FBI, Miami Field Office, made the announcement. FBI Miami investigated this case with assistance from the Fellsmere Police Department, Florida Highway Patrol, and Indian River County Sheriff’s Office. Assistant U.S. Attorney Justin Hoover is prosecuting the case. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 24-cr-14009. ###


title: Trio Pleads Guilty in Reservation Murder

body_text: Jackson, Miss. – Three individuals pled guilty today to their roles in a murder on the Mississippi Band of Choctaw Indians’ Reservation. According to court documents, in September 2023, Michael Jeffrey Shaffer, Sr., 48, and Montero Ray Willis, 22, used a firearm to shoot and kill a tribal member in the Pearl River Community of the Mississippi Band of Choctaw Indians’ Reservation. Deyonkia Alice Willis, 30, acted as an accessory after the fact to the murder. The defendants were indicted by a federal grand jury in November of 2023. The defendants will be sentenced at a later date to be determined by the court. Michael Jeffrey Shaffer, Sr., and Montero Ray Willis both face up to life in prison for murder in the second degree. Deyonkia Alice Willis faces up to fifteen years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee and Acting Special Agent in Charge Robert A. Eikhoff of the Federal Bureau of Investigation made the announcement. The Choctaw Police Department and the Federal Bureau of Investigation investigated the case as part of the Project Safe Neighborhoods Tribal Initiative. Assistant U.S. Attorneys Kevin J. Payne and Brian K. Burns prosecuted the case. Project Safe Neighborhood’s Tribal Initiative refers to the inclusion of tribal law enforcement officials and community leaders within the Project Safe Neighborhoods (PSN) program, a national initiative by the U.S. Department of Justice that aims to identify and address the most pressing violent crime issues in a community by bringing together federal, state, local, tribal law enforcement, prosecutors, and community partners to develop comprehensive solutions; essentially, it signifies the program's efforts to actively involve tribal entities in combating crime within their jurisdictions.


title: Raymore Man Sentenced for Drug Trafficking, Illegal Firearms

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Raymore, Mo., man was sentenced in federal court today for his role in a drug-trafficking conspiracy and for illegally possessing firearms. Tony Diaz, 41, was sentenced by U.S. District Judge Greg Kays to nine years in federal prison without parole. His brother and co-defendant, Serjio Diaz, 40, of Belton, Mo., was sentenced on Oct. 9, 2024, to 15 years in federal prison without parole. On April 9, 2024, Serjio and Tony Diaz each pleaded guilty to one count of conspiracy to distribute heroin, methamphetamine, and cocaine, one count of possessing heroin with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime. Tony Diaz also pleaded guilty to one count of being a felon in possession of firearms. Serjio Diaz also pleaded guilty to one count of money laundering. Serjio Diaz admitted that he was the primary organizer of the drug-trafficking organization during the conspiracy that lasted from Jan. 1, 2019, to June 22, 2021. The investigation began on March 18, 2019, when federal agents interdicted and seized a package from California that contained more than 4.5 kilograms of methamphetamine, which was addressed to Serjio Diaz’s residence. On the same day, federal agents also interdicted and seized a package from California that contained more than three kilograms of methamphetamine, which was addressed to the residence of Tony Diaz. During the course of the investigation, investigators conducted 23 controlled transactions from Serjio and Tony Diaz, utilizing an FBI confidential source. Over the course of these controlled purchases, law enforcement purchased more than seven kilograms of methamphetamine, more than six kilograms of heroin, and 468.6 grams of cocaine from Serjio and Tony Diaz for a total of $243,900. In one transaction, for example, the confidential source purchased a kilogram of methamphetamine for $9,000 from Tony Diaz. In another instance, the confidential source purchased 222.4 grams (7.5 ounces) of cocaine from Serjio Diaz for $7,000. On June 22, 2021, law enforcement officers arrested Serjio and Tony Diaz and searched Serjio Diaz’s residences and vehicles. Officers found almost nine kilograms of heroin, 166 grams of cocaine, six bags of pills that contained fentanyl and weighed a total of 78 grams, a Glock 9mm semi-automatic pistol, and $82,250 in cash. Officers searched Tony Diaz’s residence and found 1,128 grams of suspected heroin, 28 grams of suspected cocaine, a Zastava Arms 7.62x39mm semi-automatic rifle, a Romarm Cugir 7.62x39mm semi-automatic rifle, and $5,461 in cash in Tony Diaz’s bedroom. Officers also found a Remington Arms .22-caliber rifle in a shed, one pound of suspected marijuana in his Lincoln Navigator SUV, and a Ruger 9mm semi-automatic pistol and 3.4 grams of suspected marijuana in his BMW X5. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Tony Diaz has a prior felony conviction for possession of a controlled substance. From May 1, 2019, to Dec. 31, 2020, Serjio Diaz deposited 93 money orders, totaling $82,145, into either his personal bank account or the bank account of his business, Imperial Window & Gutter Cleaning, LLC. Serjio Diaz went to multiple post offices on the same date to purchase money orders; 21 of those purchases occurred soon after a controlled drug purchase was made by law enforcement in this investigation. Serjio Diaz limited his purchase to a maximum of $2,000 at each post office in order to avoid federal reporting requirements. Co-defendant Maria Jasmin Lopez, 24, of Phoenix, Arizona, also pleaded guilty to her role in the drug-trafficking conspiracy and was sentenced on Aug. 1, 2023, to 11 years and two months in federal prison without parole. Co-defendant Vicente Aguilera pleaded guilty to using a cell phone to facilitate a drug-trafficking conspiracy and was sentenced on Nov. 1, 2024, to 16 months in federal prison without parole. This case is being prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the U.S. Postal Inspection Service, the FBI and the Jackson County Drug Task Force. Organized Crime and Drug Enforcement Task Force This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: Former Postal Employee Guilty of Delaying and Stealing Contents of U.S. Mail

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – United States Attorney Duane A. Evans announced that on December 4, 2024, RANDY BROWN, JR. (“BROWN”) , age 31, a resident of Gretna, Louisiana, pled guilty to the four-count indictment filed against him. BROWN is charged with unlawful delay of U.S. Mail matter by a postal employee, in violation of Title 18, United States Code, Section 1703(a), and theft of U.S. Mail matter by a postal employee, in violation of Title 18, United States Code, Section 1709. According to court documents, between on or about July of 2022, through October 4, 2022, BROWN unlawfully secreted, detained, and delayed U.S. mail, entrusted to him as a postal employee; and on September 26, 2022, September 27, 2022, and October 3, 2022, BROWN did knowingly embezzle, steal, abstract, and remove checks from U.S. mail, entrusted to him as a postal employee. At sentencing, as to Counts 1-4, BROWN faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. BROWN also faces payment of a $100 mandatory special assessment fee for each individual count. The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Troy L. Bell of the Violent Crimes Unit is in charge of the prosecution.


title: Former Harlem Globetrotter Sentenced to Seven Years in Prison in COVID-19 Fraud Scheme

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – Quentin Allen Jackson, 58, was sentenced to 84 months in prison and ordered to pay three million dollars in restitution. Jackson pled guilty to one count of conspiracy to commit money laundering with respect to the fraudulent proceeds Paycheck Protection Act (“PPP”) COVID-19 loans guaranteed by the Small Business Administration. “We in the Carolinas idolize our basketball stars, especially the ACC greats who played on Tobacco Road,” said U.S. Attorney Michael F. Easley, Jr. “As a college point guard and Harlem Globetrotter, Jackson’s crossover was deadly. But he drew a foul when he used his talents and reputation to recruit people into a multi-million-dollar fraud on our nation’s pandemic relief program. This seven-year prison sentence should stand as a warning to anyone who took advantage of our nation’s generosity in a time of need. We are patient, persistent, and willing to use every second on the shot clock.” “Schemes to fraudulently obtain federal funds meant to provide assistance to small businesses is unacceptable,” said Special Agent in Charge Donald “Trey” Eakins, Internal Revenue Service Criminal Investigation (IRS-CI) in the Charlotte Field Office. “The defendant took advantage of critical aid programs intended to provide relief for businesses affected during the pandemic by fraudulently applying for and obtaining COVID-19 program funds. “IRS Criminal Investigation special agents will continue to pursue individuals who try to exploit federal relief programs for their personal gain.” This sentence follows the recent guilty plea following four days of trial testimony of Earl Lamont Taylor, who worked with Quentin Jackson and Edward Whitaker to obtain fraudulent PPP loans. Mr. Jackson is the 27th defendant to be sentenced in this investigation, with five others awaiting sentencing. Jackson conspired with others to obtain fraudulent PPP loans in the names of several companies under Jackson’s control. After receiving the proceeds of the fraudulent PPP loans, Jackson carried out a series of steps detailed by his co-conspirators to make it appear as though the borrower’s company was paying bi-weekly payroll to its employees. These actions made it appear as though Jackson’s companies were paying regular wages as intended by the CARES Act. Jackson instructed his purported employees to cash the checks, and then return the illicit cash to him. In addition to directly engaging in the PPP fraud described above, Jackson also served as a middleman, earning a fee from his co-conspirators for each additional fraudulent borrower he recruited. He ultimately recruited over a dozen individuals who obtained fraudulent PPP loans. Those Jackson recruited engaged in the same scheme described above to launder the proceeds of the fraudulent loans. Nearly $4 million of fraudulent PPP disbursements are attributable to Jackson or to individuals he recruited to the scheme. In March 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was designed to provide emergency financial assistance to millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the Small Business Administration (SBA). Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after United States District Judge James C. Dever III announced the sentence. The Internal Revenue Service (IRS) Criminal Investigation is investigating the case. Assistant U.S. Attorneys David G. Beraka and William M. Gilmore are prosecuting the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-cr-00180-D.


title: Whitefish doctor sentenced for defrauding Medicare and other federal health programs

body_text: Note: This release has been updated to include a quote from the U.S. Department of Health and Human Services Office of Inspector General. MISSOULA — A Whitefish doctor who admitted defrauding Medicare and other federal government health programs through a telemedicine conspiracy that resulted in more than $31 million in false billing was sentenced today to six months in prison, to be followed by six months of home confinement, fined $100,000 and ordered to pay $780,509 restitution, the U.S. Attorney’s Office said. The defendant, Ronald David Dean, 64, pleaded guilty in July to conspiracy to commit wire fraud. The case was part of the Justice Department’s 2024 National Health Care Fraud Enforcement Action. U.S. District Judge Donald W. Molloy presided. The court also ordered Dean to be placed on one year of supervised release after his confinement. “Submitting false claims for medical services that were not provided will not be tolerated,” said Special Agent in Charge Dimitriana Nikolov with the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “Today’s sentencing is a testament to VA OIG’s dedication to investigating those who commit fraud and seek to benefit improperly from programs that are meant for deserving veterans.” “Our office will continue to work alongside other federal agencies investigating crimes like this. The efforts of the VA-OIG, HHS-OIG and RRB-OIG agents, and the supporting personnel, combatted this fraudulent activity. We have an obligation to protect federal funds, and the abuse of our Medicare system will not be tolerated,” said Railroad Retirement Board Deputy Assistant Inspector General for Investigations Douglas Williams. “Every American pays for healthcare fraud, potentially through higher health insurance premiums, exposure to unnecessary medical procedures, and increased taxes” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Ronald Dean put profit before patients. This case, along with the coordinated nationwide effort, reaffirms the FBI’s commitment to investigating fraud, protecting patients, and maintaining the integrity of government funded programs.” “Holding health care professionals accountable for causing the submissions of false claims to Medicare is crucial for maintaining public trust and ensuring critical resources are appropriately used, “ said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We are committed to protecting the integrity of federal health care programs and the people who rely on those programs, including investigating schemes that undermine the legitimate delivery of telehealth services.” The government alleged in court documents that Dean, a licensed physician, was paid by a telemedicine company to sign orders for durable medical equipment that patients did not need. Dean then fraudulently charged Medicare, CHAMPVA and the Railroad Retirement Board programs for telemedicine office visits that did not occur. The telemedicine company also used Dean’s information to prescribe unneeded and unnecessary covid tests to patients. The conspiracy ran from about January 2022 until July 2023. The total amount billed to Medicare, the VA and the Railroad Retirement Board based on orders Dean signed was $31,432,001, and the total amount paid from those programs was $13,785,724. As part of the scheme, Dean relied on information provided by people he did not know, with an unknown amount of training or experience, to prescribe braces for beneficiaries he did not see or evaluate himself. Dean frequently did not even talk to the beneficiaries, and when he did it was merely to tell them the braces were approved. Dean had no idea if those people who received braces actually needed them. With the covid tests, Dean provided blanket authorization for the telemedicine company to send out tests to anyone and bill Medicare for as many covid tests as the company desired. The case was part of a strategically coordinated, two-week nationwide law enforcement action that resulted in criminal charges against 193 defendants for their alleged participation in health care fraud and opioid abuse schemes that resulted in the submission of over $2.75 billion in alleged false billings. The defendants allegedly defrauded programs entrusted for the care of the elderly and disabled to line their own pockets, and the Government, in connection with the enforcement action, seized over $231 million in cash, luxury vehicles, gold, and other assets. The U.S. Attorney’s Office for the District of Montana worked with the Department’s Criminal Division and the following law enforcement organizations to investigate and prosecute the case filed during the enforcement period: the Department of Health and Human Services Office of Inspector General (HHS-OIG), Department of Veterans Affairs Office of Inspector General (VA-OIG), Railroad Retirement Board Office of Inspector General and FBI. XXX


title: New Orleans Man Pleads Guilty of Federal Gun Control Act Violation

body_text: NEW ORLEANS, LOUISIANA – LEO TATE (“TATE”) , age 31, a resident of New Orleans, pled guilty on December 11, 2024, before United States District Judge Jane Triche Milazzo to being a felon in possession of a firearm, a violation of the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans. According to court records, in April 2024, Federal Bureau of Investigation agents stopped a vehicle occupied by TATE , who agents knew had a felony arrest warrant from Orleans Parish, and another man, for whom agents had a federal warrant to obtain a DNA swab. When agents stopped the vehicle, TATE and the other man attempted to flee, but were apprehended shortly after exiting the vehicle. During a search of the vehicle, agents found a Glock pistol with an extended magazine and a round in the chamber that TATE admitted was his. TATE also admitted knowing he was prohibited from possessing a firearm, due to his numerous prior felony convictions. Judge Milazzo set sentencing for January 30, 2025. TATE faces a maximum term of fifteen years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigations and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Haller, Senior Litigation Counsel and PSN Coordinator.


title: Informational: Federal Court arraignments

component: USAO - Montana

body_text: The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt: Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 13 was: Jerod John Chambers, 35, of Miles City, on charges of possession with intent to distribute fentanyl and possession of an unregistered short-barreled shotgun. If convicted of the most serious crime, Chambers faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Chambers was detained pending further proceedings. The Miles City Police Department, Montana Division of Criminal Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. PACER case reference. 24-24. Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan pleading not guilty on Dec. 10 was: Jeremy Allen Malloy, 42, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Malloy faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. Malloy was detained pending further proceedings. The Billings Police Department and Eastern Montana High Intensity Drug Trafficking Area Task Force conducted the investigation. PACER case reference. 24-145. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


title: Ponchatoula Woman Sentenced to Prison for Embezzling from Employer

body_text: NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on Tuesday, December 10, 2024, ANGELA C. MITCHELL (“MITCHELL”) , age 49, of Ponchatoula, Louisiana was sentenced to a year and a day in prison by U.S. District Judge Greg G. Guidry. MITCHELL had previously pleaded guilty to access device fraud in connection with her embezzlement from a Covington, Louisiana company ( “Company A” in court documents) where she worked from October 2016 to June 2018. According to court records, MITCHELL embezzled approximately $116,998.70 from Company A by, among other things, fraudulently transferring funds from Company A’s bank accounts via electronic transfers and by drafting unauthorized checks to herself. MITCHELL committed the fraud during her employment, and continued illegally accessing Company A’s accounts after she was terminated in June 2018. In addition to the term of imprisonment, Judge Guidry ordered MITCHELL to pay $116,998.70 in restitution to Company A. Judge Guidry also sentenced MITCHELL to three years of supervised release and ordered her to pay a $100 mandatory special assessment fee. U.S. Attorney Evans praised the work of the Homeland Security Investigations - New Orleans Field Office, in investigating this matter. Assistant U.S. Attorney Matthew R. Payne, of the Financial Crimes Unit, is in charge of the prosecution.


title: Repeat offender who was involved in a gun battle on Seattle’s Capitol Hill sentenced to 16 years in prison

body_text: Seattle – A 50-year-old repeat offender was sentenced today in U.S. District Court in Seattle to 16 years in prison for possessing firearms while distributing drugs and violating his conditions of supervision from prior convictions, announced U.S. Attorney Tessa M. Gorman. Ruchell Gilbert was on supervised release for a 2012 conviction for illegal firearms possession and drug trafficking, when he became involved in a shoot-out in Seattle’s Capitol Hill neighborhood. One woman died after being hit by gunfire. At today’s sentencing hearing U.S. District Judge Ricardo S. Martinez said, “A young woman died that night from a gun battle on Capitol Hill. That is exactly the kind of danger that occurs when you have people dealing drugs while armed with firearms.” “This case is a stark reminder of why it is illegal for felons to possess firearms,” said U.S. Attorney Gorman. “In this case Mr. Gilbert got into an argument about a blocking parked car and reached for his gun with tragic consequences. The death of 20-year-old Essence Greene Madden has devastated her family and loved ones, and robbed the community of someone who was focused on doing good in the world.” According to records filed in the case, Gilbert had been released from prison and began his term of supervised release on May 30, 2022. Barely a year later, in July 2023, an unruly crowd gathered on Capitol Hill for a street racing event and Gilbert is seen driving a car which was ultimately blocked by another vehicle. Gilbert is seen getting out and getting into some kind of argument with those in the blocking car. On surveillance video from a nearby business it appears that Gilbert pulls up his shirt to flash a gun in his waistband. After returning to the car one of the people Gilbert confronted starts firing at his vehicle. Gilbert pulls his gun and fires back in a volley of at least four shots. One of the shots appears to hit a bystander in the head. Essence Greene Madden died at Harborview Medical Center. Gilbert drove from the scene and later is taken to Harborview Medical Center for treatment of a gunshot wound. When federal probation officers learned Gilbert had been involved in the shootout, they got a warrant for his arrest and to search his vehicle. In Gilbert’s truck they found distribution quantities of methamphetamine, fentanyl pills, cocaine, and marijuana as well as a loaded firearm. However, the firearm he used in the shoot-out has never been found. On March 14, 2024, Gilbert pleaded guilty to Possession of Controlled Substances with Intent to Distribute and Carrying a Firearm During and in Relation to a Drug Trafficking Crime. Today in court Essence Greene Madden’s father, Eldon Madden, said, “The decision that Mr. Gilbert made, changed the lives of our family, friends, and community…. (my daughter) was stripped of her life due to acts of anger – anger is what drove this incident…. My child did not deserve to die in the manner that she died in, she was on her way to being a productive, loving, caring, person who helped preserve life not take it away. That’s why she chose to work in the medical field.” In asking for a 192-month sentence, prosecutors noted Gilbert’s lengthy history of violent crimes and his unwillingness to change even with court supervision. “Mr. Gilbert appeared to be doing well on supervision, but in reality, it was an act. In retrospect, it is clear that Mr. Gilbert continued to deal drugs and continued to carry firearms – firearms he was more than willing to use if he felt himself provoked,” prosecutors wrote in their sentencing memo. Judge Martinez imposed five years of supervised release to follow the prison term. The case was investigated by the Seattle Police Department and U.S. Probation Office. The case was prosecuted by Assistant United States Attorney Vince Lombardi.


title: Genovese Crime Family Member Sentenced to 30 Months in Prison for Racketeering

component: USAO - New York, Eastern

body_text: Today, at the federal courthouse in Brooklyn, Carmelo Polito, also known as “Carmine Polito,” a former acting captain and soldier in the Genovese organized crime family, was sentenced to 30 months in prison by United States District Judge Eric N. Vitaliano for racketeering in connection with operating an illegal gambling business at the Gran Caffé in Lynbrook, Long Island, and attempting to extort an individual who owed him money stemming from a separate online sports betting business. Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Anne T. Donnelly, Nassau County District Attorney, announced the sentence. “Today’s sentence makes clear to the defendant that the outcome for participating in illegal gambling and making extortionate threats is the loss of something very valuable — your freedom,” stated United States Attorney Peace. “Thanks to the outstanding work of prosecutors in my Office and law enforcement, the alliance of the Genovese and Bonanno organized crime families’ rackets was a bust.” Mr. Peace expressed his appreciation to the New York City Police Department and the Nassau County Police Department for their invaluable assistance in the investigation. “The cards did not favor Carmelo Polito's illicit gambling parlor or his extortionate methods,” stated FBI Assistant Director in Charge Dennehy. “His illegitimate business and death threats financed the operations of two crime families. May today’s sentencing reaffirm the FBI’s commitment to doubling down on all organized crime activity plaguing our communities. “This defendant, along with other associates of the Genovese family, operated illegal gambling businesses in Nassau County that funneled money straight into organized crime,” stated District Attorney Donnelly. “Extortion, threats, and violence have no place in Nassau County. I thank our partners at the U.S. Attorney’s Office and the FBI for their collaboration in dismantling this illicit operation and working to rid organized crime from our communities.” Polito is a longtime, inducted member of the Genovese organized crime family. As detailed in earlier court filings, for years, numerous members and associates of the Genovese and Bonanno organized crime families operated several illegal gambling operations in the Eastern District of New York. Beginning in at least May 2012, the Genovese and Bonanno families jointly operated a lucrative illegal gambling parlor concealed inside a coffee shop called the Gran Caffé in Lynbrook. Polito and co-defendant Joseph Macario, also known as “Joe Fish,” on behalf of the Genovese crime family, and Anthony Pipitone, also known as “Little Anthony,” on behalf of Bonanno crime family, successfully negotiated a profit split for the gambling location, which ensured that each crime family benefited from the illegal gambling operation. In addition to the Gran Caffé, the Genovese crime family—through Polito, Macario, Joseph Rutigliano, also known as “Joe Box,” Salvatore Rubino, also known as “Sal the Shoemaker,” and others—operated illegal gambling parlors at establishments called Sal’s Shoe Repair and the Centro Calcio Italiano Club. Rutigliano and Rubino collected the proceeds for the Genovese crime family and distributed them up to higher ranking members, including Polito and Macario. Polito was surveilled distributing proceeds to higher ranking members on numerous occasions. Polito and co-defendant Mark Feuer also operated an illegal online gambling scheme in which bets were placed on sporting events through a website called “PGWLines.” In connection with his operation of PGWLines, Polito attempted to extort an individual who lost several thousand dollars in bets using death threats and other threats of violence. For example, during a September 2019 call concerning the debtor, Polito instructed another individual to tell the debtor that Polito would “break” the debtor’s “face.” When the debtor still did not pay Polito, Polito instructed the same individual to relay a new message to the debtor: “Tell him I’m going to put him under the f------g bridge.” Polito is the first defendant sentenced in this case and a related case against four members and associates of the Bonanno organized crime family of La Cosa Nostra. Macario, Rutigliano, Rubino and Feuer are awaiting sentencing. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar, Drew Rolle, Anna Karamigios and Sean M. Sherman are in charge of the prosecution, with the assistance of Paralegal Specialist Eleanor Jaffe-Pachuilo. The Defendants : CARMELO POLITO (also known as “Carmine Polito”) Age: 64 Whitestone, Queens Defendants Awaiting Sentencing: JOSEPH MACARIO (also known as “Joe Fish”) Age: 69 West Islip, Long Island SALVATORE RUBINO (“Sal the Shoemaker”) Age: 60 Bethpage, Long Island JOSEPH RUTIGLIANO (also known as “Joe Box”) Age: 65 Commack, Long Island MARK FEUER Age: 61 Oceanside, Long Island E.D.N.Y. Docket No. 22-CR-356 (ENV)


title: Federal Indictment Charges Four Men With Robbery and Firearm Offenses in Connection With Heist of Electronics Equipment in Chicago

body_text: CHICAGO — Four men have been indicted on federal robbery and firearm charges for allegedly participating in a heist of electronics equipment in Chicago. KAHDAFFIE GREEN, JAHJUAN GREEN, CHAQWON BIRDEN, and MARQUISE RAMYYEH conspired to rob Meade Electrical Company on the South Side of Chicago on Dec. 6, 2023, according to an indictment returned in U.S. District Court in Chicago. Wearing hoods and ski masks, the four defendants brandished firearms and robbed employees of a RIDGID camera and a Digitrak locator box, the indictment states. The indictment charges Kahdaffie Green, 25, Jahjuan Green, 27, Birden, 26, and Ramyyeh, 20, all of Chicago, with robbery conspiracy and brandishing firearms during a crime of violence. Kahdaffie Green and Ramyyeh are also charged with illegally possessing firearms as previously convicted felons. Arraignments in federal court in Chicago are scheduled for Jan. 2, 2025, at 10:00 a.m., before U.S. District Judge Rebecca R. Pallmeyer. The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Larry Snelling, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorney Emily C.R. Vermylen. Valuable assistance was provided by ATF’s Crime Gun Intelligence Center of Chicago. The CGIC is a centralized law enforcement hub that focuses exclusively on investigating and preventing gun violence in Chicago and throughout northern Illinois. The CGIC is an interagency collaboration that brings together - under one roof - federal, state, and local law enforcement officers, prosecutors, and intelligence analysts to move quickly to investigate and prosecute violent crimes. Holding firearm offenders accountable through federal prosecution is the centerpiece of Project Safe Neighborhoods , a nationwide Department of Justice initiative that brings together law enforcement officials, prosecutors, community leaders, and other stakeholders to develop comprehensive solutions to the most pressing violent crime problems in a community. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses. The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Brandishing a firearm during a crime of violence is punishable by a minimum sentence of seven years in federal prison and a maximum of life. The robbery conspiracy charge is punishable by up to 20 years, while illegal possession of a firearm by a felon carries a maximum of 15 years. 0001_-_0000_-_indictment_as_to_kahdaffie_green_1_counts_1-2.pdf