title: United States Attorney and New York State Attorney General Announce Substantial Recovery for the Beneficiaries of Defrauded Estates

component: Criminal - Money Laundering, Narcotics and Forfeiture Section

body_text: ALBANY, NEW YORK – United States Attorney Carla B. Freedman and New York State Attorney General Letitia James announced today that nearly $6.3 million in restitution has been collected and distributed to the victims of Richard J. Sherwood and Thomas K. Lagan, who were sentenced to both federal and state prison for stealing approximately $11.8 million from the estates of three deceased sisters. Nearly $5 million of the restitution came from criminally derived assets that were forfeited to the United States, and then approved by the Department of Justice to be directly applied to victim restitution. Of the funds restored to the victims, $3,559,426.90 was forfeited by Sherwood and $1,391,322.08 was forfeited by Lagan. The victims, which have received restitution distributions, include churches, Ukrainian-American civic organizations, a local hospital and a local university scholarship fund. The United States Attorney’s Office’s Asset Recovery Unit is still working to recover the remainder of the restitution owed, approximately $5.5 million. United States Attorney Carla B. Freedman stated: “This substantial recovery is the result of our efforts to make sure that crime does not pay. We will continue to use every available tool to enforce restitution judgments against Sherwood and Lagan and return as much money as possible to the victims of their fraudulent scheme.” New York State Attorney General Letitia James stated: “New Yorkers should be able to trust that their financial advisors and attorneys are looking out for their best interests—not stealing their hard-earned money. Sherwood and Lagan defrauded a well-meaning family, and in the process, cheated local nonprofit organizations out of funds intended to support their missions. Thank you to U.S. Attorney Freedman for her partnership in rooting out fraud and stopping individuals who abuse the system.” Lagan of Cooperstown, New York, was an investment advisor and attorney, and Sherwood of Guilderland, New York, was an attorney who served as Guilderland Town Justice, and practiced primarily in trusts and estates. Starting in 2006, Sherwood and Lagan provided estate planning and related legal services to Capital Region philanthropists Warren and Pauline Bruggeman, and to Pauline’s sister, Anne Urban, all of Niskayuna, New York. They were advising the Bruggemans when, in 2006, the Bruggemans signed wills directing that all their assets go to churches, civic organizations, a local hospital, and a local university scholarship fund, aside from bequests to Urban and Julia Rentz, Pauline’s sisters. Warren Bruggeman died in April 2009, and Pauline died in August 2011. At the time of her death, Pauline had personal and trust assets valued at approximately $20 million. In each pleading guilty, Sherwood and Lagan admitted that they conspired to steal, and did steal, millions of dollars from Pauline Bruggeman’s estate as well as from the estate of Urban, who died in 2013. Their conspiracy included the diversion and transfer to themselves of several million dollars belonging to Rentz, a resident of Ohio, who was suffering from dementia at the time of the thefts and died in 2013. Sherwood and Lagan each admitted that they induced Urban to create a trust whose purpose, unknown to her, was to allow them to transfer Bruggeman/Urban assets to themselves. They also set up more than ten bank accounts, and created a limited liability company (Empire Capital Trust, LLC), to first conceal the theft of the money and then transfer the money to themselves. The co-conspirators admitted that they stole $11,831,563, with Lagan admitting that that nearly $6.3 million was transferred outright to him. Sherwood admitted that nearly $3.6 million was transferred to him, with an additional $1.96 million transferred to Empire Capital Trust, LLC, an entity controlled by the co-conspirators. Sherwood also admitted that he transferred to himself the Bruggeman family camp located on Galway Lake, in Saratoga County. In December 2019, Sherwood was sentenced to 54 months in federal prison, and to also serve 3 to 9 years in state prison . That same month, Lagan was sentenced to 78 months in federal prison and to also serve 4 to 12 years in state prison . From prison, and notwithstanding his prior guilty pleas in federal and state court, Lagan then objected in New York State Surrogate’s Court to a petition filed by the New York Attorney General’s Office’s Charities Bureau to restore the appropriate trusts created by Anne Urban (before Lagan and Sherwood defrauded her). The Surrogate’s Court ultimately rejected Lagan’s challenge and granted summary judgment to the Charities Bureau, a decision that was affirmed on appeal. Assistant Attorney General Jennifer Allinson represented the Charities Bureau in the Surrogate’s Court case. Assistant U.S. Attorneys Elizabeth Conger and Melissa Rothbart represent the United States on the asset forfeiture and restitution matters in this case, with assistance from the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section. This case is part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.


title: Former Cybersecurity Consultant Arrested For $1.5 Million Extortion Scheme Against IT Company

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that VINCENT CANNADY was arrested in connection with his scheme to extort a publicly traded information technology infrastructure services provider of up to $1.5 million by threatening to publicly disclose the company’s confidential and proprietary information. CANNADY was arrested in El Dorado Springs, Missouri, this morning and is expected to appear in Missouri federal court tomorrow. U.S. Attorney Damian Williams said: “As alleged, Vincent Cannady used illegal and extortionate threats for the purpose of obtaining over a million dollars in payments from a public company after his engagement was terminated. When those entrusted with sensitive information steal that information on their way out the door, only to extort money with a threat of releasing that information, my Office will hold them responsible for their conduct.” As alleged in the Complaint: [1] CANNADY was assigned by a staffing company to work on an engagement with the victim company. Under the engagement, CANNADY’s responsibilities included assessing and remediating potential vulnerabilities that an unauthorized party could use to access the victim’s information systems. As a result, CANNADY had access to the victim company’s sensitive and proprietary information. After about a year, CANNADY’s engagement was terminated. Days after, and while he still had access to the company’s information, CANNADY downloaded the company’s sensitive and proprietary information without its authorization and uploaded the information to a personal cloud storage account. CANNADY then demanded that the company settle unspecified discrimination and emotional distress claims. He threatened to “upload all of the documents in his possession immediately once the case is filed” if the company did not settle his claims for $1.5 million. He added, “[a]s we all know those documents will imperil [the company’s] reputation and shake investor confidence.” He specifically demanded “a 10 year Certificate of Deposit for 1.5 million dollars,” which would “buy a[n] attestation that all files destroyed by me and a gag order preventing me from ever talking about what I saw or the documents I had in my possession or the documents I had created at [the company] or downloaded.” At several points during his attempt to get the company to agree to a settlement, CANNADY sought specifically to add in provisions to a draft settlement agreement that would prohibit the company from pursuing criminal charges against him in connection with the settlement. * * * VINCENT CANNADY, 57, of El Dorado Springs, Missouri, is charged with Hobbs Act extortion, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams thanked the Federal Bureau of Investigation’s (“FBI”) New York Field Office, Westchester Resident Agency and the FBI’s Kansas City Field Office, Joplin and Springfield Resident Agencies. This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Reyhan Watson and James McMahon are in charge of the prosecution. The charge contained in the Complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Magnolia Man Pleads Guilty to Possession of a Firearm by a Convicted Felon

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

body_text: Jackson, Miss. – A Magnolia man pled guilty to possession of a firearm by a convicted felon. According to court documents, Edward Dewayne Cockerham, 35, of Magnolia, Mississippi was found in possession of a firearm by Mississippi Bureau of Narcotics agents and a Pike County Sheriff’s deputy during a traffic stop. Cockerham had a prior felony conviction for failing to support minor children and was on supervised probation at the time he possessed the firearm. Cockerham was indicted by a federal grand jury for possessing the firearm as a convicted felon. He is scheduled to be sentenced on August 1, 2024, and faces a maximum penalty of 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement. The Mississippi Bureau of Narcotics, Pike County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Bert Carraway prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce 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.


title: Wall Man Sentenced to 30 Years in Federal Prison

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Wall, South Dakota, man convicted of Enticement of a Minor Using the Internet and Receipt of Child Pornography. The sentencing took place on April 26, 2024. Miguel Antonio Alvarez, 50, was sentenced to 30 years in federal prison for the Enticement charge and 20 years in federal prison for the Receipt charge, all to run concurrently. Additionally, Alvarez was sentenced to eight years of supervised released, and order to pay a $200 special assessment to the Federal Crime Victims Fund and $27,500 in restitution. Alvarez will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. Alvarez was indicted for Sexual Exploitation of a Minor, Enticement of a Minor, Distribution of Child Pornography, Receipt of Child Pornography, and Possession of Child Pornography by a federal grand jury in January of 2023. He pleaded guilty on January 24, 2024. The convictions stem from Alvarez enticing a 14-year-old girl between April of 2022 and May of 2022 in Wall, South Dakota. Additionally, Alvarez was in receipt of hundreds of images and videos of child pornography. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the South Dakota Division of Criminal Investigation, the Internet Crimes Against Children Taskforce, the FBI, the Pennington County’s Office, and the Lynnwood Police Department in Snohomish County, Washington. Assistant U.S. Attorney Sarah B. Collins prosecuted the case. Alvarez was immediately remanded to the custody of the U.S. Marshals Service.


title: Hassan Tucker Facing Federal Money Laundering Charges

component: Organized Crime Drug Enforcement Task Forces

body_text: Baltimore , Maryland – A federal grand jury has returned an indictment charging Hassan Tucker, age 43, of Baltimore, Maryland, with money laundering and violation of Bank Secrecy Act transaction reporting requirements. The indictment was returned on April 9, 2024, and unsealed today upon Tucker’s recent arrest. The defendant made an initial appearance on Monday April 29, 2024, in the U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson. Further proceedings will be set at a later date. The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Kareem Carter of IRS Criminal Investigation, Baltimore Field Office, and Special Agent in Charge Jarod Forget of the Drug Enforcement Administration, Baltimore Field Office. According to the two-count indictment, on January 27, 2023, Tucker accepted $27,000 in U.S. Currency from an undercover federal agent posing as a drug trafficker in exchange for the purchase of a luxury SUV. Before completing the transaction, the undercover federal agent represented to Tucker that the $27,000 in U.S. Currency was the proceeds of drug trafficking activity. To conceal the transaction and the true owner of the SUV, Tucker agreed to place the SUV in the name of a female associate of the undercover federal agent, and did not report the cash transaction as he knew he was required to do under federal law. If convicted, Tucker faces a maximum sentence of 20 years in federal prison under Count One and five years in federal prison under Count Two. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. United States Attorney Erek L. Barron commended IRS-CI and the DEA for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Steven T. Brantley, who is prosecuting the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Wanblee Man Sentenced to Four Years in Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Chief Judge Roberto A. Lange has sentenced a Wanblee, South Dakota, man convicted of Failure to Register as a Sex Offender and Assault Resulting in Serious Bodily Injury. The sentencing took place on April 25, 2024. Richard Lorn Brown, 28, was sentenced to a total of four years in federal prison, followed by five years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Judge Lange imposed an 18-month sentence on the Failure to Register charge and a 30-month sentence on the Assault charge, and ordered the sentences to run consecutively. Brown was indicted for Failure to Register as a Sex Offender, Committing a Crime of Violence While Failing to Register, Assault Resulting in Serious Bodily Injury, and Assault with a Dangerous Weapon by a federal grand jury in July of 2023. He pleaded guilty on January 26, 2024. The conviction stems from Brown failing to update his sex offender registration in July of 2022 and then stabbing a man with a knife in July of 2023. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court. This case was investigated by the U.S. Marshals Service, FBI, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth prosecuted the case. Brown was immediately remanded to the custody of the U.S. Marshals Service.


title: Jury finds Cincinnati man guilty of sex trafficking, exploiting 2 teens

component: USAO - Ohio, Southern

body_text: CINCINNATI – A federal jury has convicted Kelly Richards, 43, of Cincinnati, with sex trafficking minors, sexually exploiting children and illegally possessing a firearm as a previously convicted felon. Richards is also known as “Scorpio” and has a tattoo of a scorpion on the left side of his face. The jury found him guilty on all counts following a six-day trial before U.S. District Judge Jeffery P. Hopkins. According to court documents and trial testimony, investigators were alerted in March 2023 that two juveniles had been screened as potential sex trafficking victims. Richards picked up two minor victims who had fled a group home in Dayton and drove them to an apartment complex in Cincinnati. At the apartment, Richards provided the minors with cocaine before sexually assaulting them. Richards also enticed the females into having sex with other men for money that was paid to Richards. The defendant created prostitution advertisements online with explicit pictures of the minor victims and used physical violence against them. Court documents detail that one victim was prostituted up to four times per day in hotels and homes. Sexually exploiting children is a federal crime punishable by a range of 15 to 30 years in prison. Sex trafficking minors carries a potential penalty of at least 10 years and up to life in prison. Illegal possession of a firearm in this case is punishable by up to 15 years in prison. Sentencing of the defendant will be determined by the Court at a future hearing. Federal agents arrested Richards on May 16, 2023. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the FBI’s Anti-Trafficking Task Force announced the verdict returned the evening of April 30. Assistant United States Attorneys Kyle J. Healey and Megan Painter Gaffney are representing the United States in this case. # # #


title: Michigan Woman Sentenced to 78 Months in Prison

component: Federal Bureau of Investigation (FBI)

body_text: FORT WAYNE – Erin Alldredge, 42 years old, of Sturgis, Michigan, was sentenced by United States District Court Chief Judge Holly A. Brady, after pleading guilty to three counts of Distribution of Methamphetamine, announced United States Attorney Clifford D. Johnson. Alldredge was sentenced to 78 months in prison followed by 3 years of supervised release. According to documents in the case, on three separate occasions in September 2022, Alldredge sold 180 grams of pure methamphetamine in Howe, Indiana. This case was investigated by the Federal Bureau of Investigation with assistance from the Indiana State Police. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.


title: Custer Man Sentenced for Receipt of Child Pornography

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange has sentenced a Custer, South Dakota, man for receiving child pornography. The sentencing took place on April 25, 2024. Nathan Frisch, a 43-year-old former teacher in both Custer and Rapid City, was sentenced to five years in federal prison, followed by five years of supervised release. Frisch was also ordered to pay $1,000 in restitution, a $5,000 special assessment to the Victims of Trafficking Fund, a $5,000 special assessment to the Amy, Vicky and Andy Child Pornography Assistance Fund, and a $100 special assessment to the Federal Crime Victims Fund. Frisch was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in March of 2023. On January 17, 2024, he pleaded guilty to receiving child pornography. Frisch admitted that he knowingly downloaded child pornography from the internet, using his cell phone and laptop between September 4, 2022, and December 30, 2022. Frisch also admitted that he used the “Reface” application to transpose the faces of female minors onto sexually explicit depictions of adult women. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by Homeland Security Investigations and the South Dakota Internet Crimes Against Children Task Force. Assistant U.S. Attorney Heather Knox prosecuted the case. Frisch was immediately remanded to the custody of the U.S. Marshals Service.


title: Rapid City Man Sentenced on Firearm Charge

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. Chief District Judge Roberto A. Lange has sentenced a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person. The sentencing took place on April 26, 2024. Tristan Alvie Habben, 22, was sentenced to three years and two months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Habben was indicted for Possession of a Firearm and Ammunition by a Prohibited Person by a federal grand jury in October of 2023. He pleaded guilty on January 31, 2024. The charge relates to Habben, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Taurus model PT740, .40 Smith & Wesson caliber, semi-automatic pistol and rounds of Winchester .40 Smith & Wesson caliber ammunition in Rapid City in August of 2023. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Anna Lindrooth prosecuted the case. Habben was immediately remanded to the custody of the U.S. Marshals Service.


title: Newburgh Woman Charged With Defrauding Military Charities And The Veteran’s Administration And With Fraudulently Claiming To Be A Purple Heart Recipient

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging SHARON TONEY‑FINCH with defrauding military charities and the Veteran’s Administration (“VA”) and with fraudulently claiming to have received a Purple Heart. TONEY-FINCH was arrested today and will be presented in White Plains federal court before U.S. Magistrate Judge Judith C. McCarthy. U.S. Attorney Damian Williams said: “As alleged, Sharon Toney-Finch falsely claimed to have received a military award bestowed on those wounded or killed in the line of duty, and she used this lie to drive donations to her charitable organization, which in fact was a ruse the defendant allegedly used to line her own pockets. The defendant’s alleged crimes are dishonorable to the highest degree, and I thank the career prosecutors of this Office and our law enforcement partners for bringing today’s charges and exposing Toney-Finch’s attempt to profit on stolen valor.” FBI Assistant Director in Charge James Smith said: “Sharon Toney-Finch allegedly engaged in a series of lies in which she misappropriated donations for military charities and falsely nominated herself as a Purple Heart recipient to receive illicit disability benefits. Acts of stolen valor are especially egregious as they distract from sacrifices of those who were truly injured defending our nation. The FBI does not tolerate those who choose to perpetuate fraudulent schemes at the expense of our armed forces and will continue to aggressively investigate those who choose to do so.” As alleged in public court filings and the Indictment unsealed today in White Plains federal court: [1] Between at least July 2019 through about September 2023, TONEY-FINCH engaged in a scheme to defraud donors to her charitable organization by falsely claiming that donation funds would be spent solely to support homeless military veterans, when in fact she spent the funds on personal expenses. She further falsely claimed that she survived and was injured in a terrorist attack to a vehicle convoy in Iraq in or about March 2010 and that she is a Purple Heart recipient. Between at least March 2016 through the present, TONEY-FINCH knowingly obtained hundreds of thousands of dollars in disability benefits from the VA by fraudulently representing that, during her military service in Iraq, she sustained combat-related injuries during a mortar attack in or about February 2010 and a vehicle rollover that occurred in or about March 2010. Between about August 2021 through the present, TONEY-FINCH has falsely claimed that she is a Purple Heart recipient in statements made to donors to her charitable organization, an application to the New York Department of Motor Vehicles to obtain a vanity license plate, and an application to the National Purple Heart Hall of Honor to obtain a medallion and recognition on their website. TONEY-FINCH has also used, possessed, and exhibited a military discharge certificate that had been altered to reflect falsely that she is a Purple Heart recipient. * * * TONEY-FINCH, 43, of Newburgh, New York, is charged with wire fraud, which carries a maximum potential sentence of 20 years in prison; theft of government funds, which carries a maximum potential sentence of 10 years in prison; stolen valor, which carries a maximum potential sentence of one year in prison; and altering military discharge paperwork, which carries a maximum potential sentence of one year in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Mr. Williams praised the work of the FBI Hudson Valley White Collar Crime Task Force, the Orange County District Attorney’s Office, the Orange County Sheriff’s Office, the U.S. Department of Veterans Affairs – Office of Inspector General, and the U.S. Army Criminal Investigation Division. This case is being handled by the Office’s White Plains Division. Assistant U. S. Attorneys Ryan W. Allison and Margaret N. Vasu are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: U.S. Attorney's Office Announces the Formation of Multi-Agency Health Care Fraud Task Force

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Together with state and federal partners, U.S. Attorney Adair F. Boroughs announced the formation of the Palmetto Health Care Fraud Task Force (PHCF Task Force), which has been created as a dedicated task force to combat health care fraud and recover taxpayer money in the District of South Carolina through criminal and civil actions. Other agencies that have joined the PHCF Task Force include investigators from the Department of Labor and the South Carolina Attorney General’s Medicaid Fraud Control Unit. In February 2023, the FBI, U.S. Attorney’s Office for the District of South Carolina, and other federal, state, and local agency partners began meeting as part of a Health Care Fraud Working Group with the goal of combatting health care fraud in the District of South Carolina. The PHCF Task Force was created after the FBI and the U.S. Attorney’s Office saw great success from the Working Group meetings. The creation of the PHCF Task Force demonstrates an increased effort to bring to justice those who defraud the health care system, to deter future health care fraud and abuse, and to promote trust in the healthcare system. Additional resources available to the PHCF Task Force will include the FBI's Data Analytics Response Team (DART), numerous forensic accountants, and Intelligence Analysts from various agencies, which all will promote efficiency in prosecuting cases. Health care fraud is an enormous burden on South Carolina taxpayers. In 2023, taxpayer funded healthcare programs spent approximately $23 billion in South Carolina alone. Although it is difficult to approximate the amount of money lost to waste, fraud, and abuse each year, the Government Accountability Office estimates it could be as much as 10% of money spent. The PHCF Task Force will better equip the United States to detect wrongdoers and recoup money lost to fraud in South Carolina—which costs taxpayers billions each year. The PHCF Task Force and agencies involved in the Health Care Fraud Working Group will meet regularly to aggressively investigate allegations of false billings, COVID-19 fraud, violations of the Anti-Kickback Statute, and other schemes that victimize patients, health care providers, private insurers, and government insurers, such as Medicare, TRICARE, and Medicaid, in the District of South Carolina. “Health care fraud impacts our citizens, both as patients and taxpayers,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “The Palmetto Health Care Fraud Task Force demonstrates our commitment to working with our partners to protect those seeking quality medical care and the federal programs meant to support them. The U.S. Attorney’s Office for the District of South Carolina commends our partners for the creation of the Palmetto Health Care Fraud Task Force and will continue to vigorously prosecute and pursue those who abuse and take advantage of health care programs.” “Fraud committed within our health systems affects everyone and weakens public trust,” said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. “The FBI created the PCHF Task Force to bolster the local, state, and federal posture against health care fraud, and it will enhance our investigative approaches to hold offenders accountable. We appreciate our federal and state partners that have joined the task force in this effort.” “We welcome the PHCF Task Force and will continue to assist investigative partners combatting health care fraud,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Our unwavering commitment at HHS-OIG remains steadfast in protecting Medicare, Medicaid, and the well-being of their beneficiaries from fraudulent schemes. The impact of defrauding federal health care programs diverts crucial resources from those deserving of vital medical attention and will not be tolerated." The U.S. Attorney’s Office for the District of South Carolina anticipates broader enforcement as a result of the PHCF Task Force, building on its past success. For example, in April 2019, the District of South Carolina announced its participation in a nationwide operation aimed at dismantling one of the largest Medicare fraud schemes in history. In March 2024, one of the Defendants, Andrew Chmiel, was sentenced to nine years in federal prison for his role in this scheme. The District of South Carolina also recently announced the successful prosecution of Jeffrey Brooks for submitting false durable medical equipment claims. Mr. Brooks pled guilty to conspiracy to commit health care fraud and was sentenced to seven and a half years in federal prison. He also paid $850,000 to the United States as part of a civil settlement. If you suspect healthcare fraud, please report it by phone at 1-800-CALL-FBI (1-800-225-5324) or submit a tip at tips.fbi.gov. ###


title: Hopewell man sentenced for illegally possessing a firearm

body_text: A Hopewell man was sentenced today to five years and five months in prison for being a felon in possession of a firearm and ammunition. According to court documents, on Nov. 19, 2022, Hopewell Police officers found Azontay Malik Perry, 27, passed out in the driver seat of a BMW with the engine running in the intersection of Ashland Street and Oaklawn Boulevard. Officers awakened Perry and ordered him out of the vehicle. Perry ignored their commands and drove into the back of a parked police vehicle. Perry attempted to flee at high speed, but crashed into a dumpster at an apartment complex. Perry then fled on foot. At the scene, officers observed a.40 caliber handgun on the floor of the vehicle. The firearm included an extended magazine with 27 rounds of ammunition. Officers later obtained a search warrant for the vehicle and recovered 18 grams of methamphetamine and 10.84 grams of fentanyl. In 2016, Perry was convicted of possession of schedule I or II drugs after being caught with narcotics in his vehicle during a traffic stop. Later that year, Perry was convicted again of possession of schedule I or II drugs, as well as possession of a concealed weapon, possession of a firearm while in possession of schedule I or II drugs, and monument damage. In 2023, Perry was convicted of a probation violation related to his multiple 2016 convictions for not turning himself in on outstanding warrants and absconding from supervised probation. In 2019, Perry once again was convicted of possession of schedule I or II drugs, along with driving on a suspended license. As a previously convicted felon, Perry cannot legally possess a firearm or ammunition. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Greg Taylor, Chief of Hopewell Police, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson. Assistant U.S. Attorney Erik S. Siebert and former Special Assistant U.S. Attorney Devon E. Schulz, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-106.


title: Manhattan Man Charged With Running $43 Million Ponzi Scheme

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging IDIN DALPOUR with wire fraud in connection with a multi-year Ponzi scheme that defrauded investors of at least $43 million. DALPOUR was arrested this morning and will be presented in Manhattan federal court before U.S. Magistrate Judge Barbara Moses later today. U.S. Attorney Damian Williams said: “Idin Dalpour told investors that they could reap huge returns by investing through him in a purported Las Vegas hospitality business and a crypto trading operation. As alleged, Dalpour’s promises were a mirage, and he was running a classic Ponzi scheme by paying investors purported returns with other investors’ money. Instead of using investors’ funds as promised, Dalpour spent lavishly on himself, which included racking up gambling losses of approximately $1.7 million and paying for his children’s private school tuition. Now, Dalpour’s gamble has him facing federal criminal charges for his alleged crimes.” FBI Assistant Director in Charge James Smith said: “For four years, Idin Dalpour allegedly used false promises of high returns to entice victims to invest in his purported hospitality and cryptocurrency trading enterprises, but in reality, used these payments to satisfy other debts or personal expenditures. Cheating investors of millions severs the trust of clients and credibility of prospective advisors, both of which are vital to the success of the investment market. Today’s arrest illustrates the FBI’s dedication to maintaining economic justice and ensuring the actions of one individual are not at the expense of others.” According to allegations contained in the Indictment: [1] From at least approximately 2020 through April 2024, DALPOUR ran a Ponzi scheme targeting investors located in the U.S. and abroad. DALPOUR solicited investments from victims through an entity that he controlled (“Entity-1”), which purported to have an interest in two business ventures: a Las Vegas hospitality enterprise and a cryptocurrency trading enterprise. In reality, DALPOUR did not use investors’ funds as promised and paid earlier investors purported returns using funds that were contributed by later investors. DALPOUR defrauded investors of at least $43 million over the course of the scheme. As part of the purported Las Vegas hospitality enterprise, DALPOUR falsely represented that Entity-1 had contracted with a management company (the “Management Company”) and/or a prominent Las Vegas hotel (the “Hotel”) to rent condominiums to Las Vegas visitors for a fee. DALPOUR further claimed that the Hotel arranged entertainment packages for these visitors, including food, nightlife, and sports events, and that DALPOUR and Entity-1 received a portion of these proceeds. DALPOUR also falsely claimed that he owned shares in several Las Vegas-based sports stadiums (the “Stadiums”) and would receive a portion of concessions revenues when these visitors went to the Stadiums. DALPOUR lured investors into the Las Vegas hospitality enterprise through false promises of lucrative returns beginning at 42% interest per year. In order to further the fraud, DALPOUR provided certain investors with fabricated contracts between Entity-1, the Management Company, and the Stadiums. DALPOUR also fabricated email correspondence from the Hotel falsely claiming that his company, Entity-1, was owed millions of dollars and created phony bank statements overstating the assets in Entity-1’s bank accounts. DALPOUR also claimed that investors’ money was safe because it was insured and/or would be held in escrow. These statements were false. In connection with the Ponzi scheme, DALPOUR further misrepresented a so-called cryptocurrency trading enterprise that DALPOUR purportedly operated. As part of the cryptocurrency trading scheme, DALPOUR falsely represented to investors that he purchased cryptocurrency at wholesale and sold the cryptocurrency at a profit to retail investors. As with the Las Vegas hospitality enterprise, DALPOUR promised investors lucrative annual returns and that their money was insured. These statements were false. In reality, DALPOUR did not use investor money for the Las Vegas hospitality enterprise or the cryptocurrency trading enterprise. Instead, DALPOUR used investor money to pay other investors their expected returns, as well as to pay for his own personal expenses. These personal expenses included, among other things, approximately $1.7 million in gambling losses, over $400,000 from Art Direct, and private school tuition for his children. DALPOUR also lied to investors when they sought to recoup their money. Among other things, DALPOUR claimed that his company’s funds were temporarily frozen because the Hotel’s servers had been hacked and that the Nevada-based bank allegedly holding Entity-1’s funds would not release the proceeds. In fact, Entity-1 did not even have a bank account with the Nevada-based bank, as DALPOUR well knew. In or about November 2023, a group of victims confronted DALPOUR about the Ponzi scheme. During this conversation, DALPOUR admitted that he had lied to the victims about the operation of the Las Vegas hospitality business, that he had not used investor money for its intended purpose, and that he had fabricated contracts and bank records that he had provided to the victims. DALPOUR further stated, in his own words, “[w]hat you already have, you have, you can put me in jail now. Like right now.” If you believe you are a victim of these crimes, please contact the FBI at 1-800-CALL-FBI and reference this case. * * * DALPOUR, 39, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the investigative work of the FBI. This case is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Mathew Andrews and Kingdar Prussien are in charge of the prosecution. The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Possession of Heroin and Illegal Possession of Stolen Firearms Lands Two South Louisiana Men in Federal Prison

body_text: LAFAYETTE/LAKE CHARLES, La. – United States Attorney Brandon B. Brown the sentencing of two defendants yesterday in both the Lafayette and Lake Charles Divisions of the Western District of Louisiana. Daryl Beloney, Sr. , 50, of Lake Charles, Louisiana , was sentenced by United States District Judge James D. Cain, Jr. to 120 months in prison, followed by 3 years of supervised release, for possession of stolen firearm or ammunition. On April 1, 2022, law enforcement agents with the Combined Anti-Drug Task Force executed a search warrant at a residence on Vanessa Avenue in Calcasieu Parish. During the search, agents discovered a Taurus Millennium PT 145, a Ruger P90, and a Beretta M1934 pistol, in addition to an assortment of controlled substances, including 7.4 pounds of marijuana. Beloney admitted to law enforcement agents that he possessed the firearms and that he had reasonable cause to believe that one of the firearms had been stolen and pleaded guilty to the charge on January 25, 2024. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Combined Anti-Drug Task Force and prosecuted by Assistant United States Attorney Lauren L. Gardner. In a separate and unrelated case, United States District Judge S. Maurice Hicks, Jr. sentenced Montel Joseph Wilridge , 30, of Lafayette, Louisiana, to 120 months in prison, followed by 4 years of supervised release, for possession with intent to distribute heroin and being a felon in possession of firearms. On March 6, 2021, agents with the Lafayette Parish Sheriff’s Office executed a search warrant at a residence in Lafayette. During their search, agents discovered a large amount of marijuana and other various controlled substances packaged in individual ounce bags, as well as a digital scale and three firearms. Agents later learned that the Sig Sauer P365 and Taurus Millennium pistols recovered had both been reported as stolen. Agents also recovered suspected heroin with an approximately weight of 149 grams. The suspected heroin was sent to the DEA Southeast Laboratory for testing and confirmed to be heroin with a net weight of 141.2 grams. Wilridge pleaded guilty to the two charges on December 28, 2023. The case was investigated by the DEA, ATF, and Lafayette Parish Sheriff’s Office Narcotics Unit and prosecuted by Assistant United States Attorney Casey Richmond. # # #


title: Chicago Woman Sentenced to Prison for Participating in $16 Million Covid-Relief Fraud

component: USAO - Illinois, Northern

body_text: CHICAGO – A Chicago woman has been sentenced to a year and a half in federal prison for participating in an organized scheme to fraudulently obtain more than $16 million in small business loans and grants under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. MILICA SUMAKOVIC was among seven defendants indicted in U.S. District Court in Chicago for participating in a scheme that submitted more than 300 fraudulent applications seeking more than $40 million in benefits from the Economic Injury Disaster Loan Program (EIDL). As a source of relief under the CARES Act, the EIDL program was intended to provide loan assistance or grants to cover working capital and other operating expenses for legitimate businesses that suffered revenue losses as a result of the Covid-19 pandemic. Sumakovic and her co-defendants claimed in their applications that they owned and operated various businesses in Illinois and Florida. The applications and supporting documents contained materially false representations about the defendants’ purported companies, including the number of employees and revenue amounts. The defendants’ scheme caused the U.S. Small Business Administration to pay out more than $16 million in fraudulent benefits. Sumakovic personally submitted and assisted co-defendant MARKO NIKOLIC in submitting eighteen of the fraudulent applications that sought more than $2.6 million in benefits. Sumakovic, 33, of Chicago, pleaded guilty last year to a federal wire fraud charge. U.S. District Judge Nancy L. Maldonado on April 25, 2024, sentenced Sumakovic to 18 months in federal prison and ordered her to pay $1.68 million in restitution to the SBA. Marko Nikolic, 36, of La Grange, Ill., and BRANKO ALEKSIC, 34, of Chicago, each pleaded guilty last year to wire fraud and money laundering charges. Marko Nikolic was sentenced in January 2024 to four years and two months in prison and ordered to pay $6.9 million in restitution, while Aleksic was sentenced in November 2023 to two years and eleven months in prison and ordered to pay $575,000 in restitution. The four other defendants – MAJA NIKOLIC, 36, of Brookfield, Ill., NEBOJSA SIMEUNOVIC, 38, of Lyons, Ill., MIJAJLO STANISIC, 34, of Willowbrook, Ill., and DORDE TODOROVIC, 33, of Chicago – are considered fugitives and may currently be residing overseas. Warrants for their arrests have been issued. The sentences were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago, Heather M. Hill, Acting Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA), Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, and Hannibal Ware, Inspector General of the U.S. Small Business Administration. The government was represented by Assistant U.S. Attorneys Kavitha J. Babu and Brian Hayes. “The relief programs provided by the CARES Act were designed to assist small businesses struggling to survive the Covid-19 pandemic,” said Acting U.S. Attorney Pasqual. “Our office is committed to working with our law enforcement partners to root out abuse of these important programs and hold accountable anyone who seeks to fraudulently profit from them.” “This sentence is a great example of what can be accomplished when federal and local law enforcement agencies work in collaboration,” said HSI SAC Fitzgerald. “We will continue to work tirelessly to investigate criminals who seek to exploit the United States government and bring them to justice.” “The sentence imposed on Sumakovic underscores the federal government's dedication to holding accountable individuals who defrauded vital programs that served as a lifeline for businesses during the pandemic,” said IRS-CI SAC Campbell. “Make no mistake: CI and its fellow law enforcement partners remain steadfast in their commitment to holding accountable the fraudsters who exploited Covid-relief programs for personal gain.” Last month, the Justice Department’s Covid-19 Fraud Enforcement Task Force released its 2024 report detailing the efforts of the task force and its member agencies in response to widespread fraud involving many Covid-19 programs targeted by fraudsters and other criminals who sought to exploit the government’s relief efforts for their personal gain. Anyone with information about attempted fraud involving Covid-19 is encouraged to report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at (866) 720-5721 or filing an online complaint here .


title: Regional Leader Of Sanctioned Russian Organization Pleads Guilty To Lying To FBI

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of TOMAS IANCHAUSKAS, a regional leader of a sanctioned Russian Organization known as the Tsargrad Society (the “Society”), for lying to the Federal Bureau of Investigation (“FBI”) about his participation in the Society and its predecessor during an in-person interview in the U.S. IANCHAUSKAS pled guilty before U.S. District Judge Coleen McMahon and is scheduled to be sentenced on July 11, 2024. U.S. Attorney Damian Williams said: “While enjoying the benefits of U.S. permanent residency, Tomas Ianchauskas served as a regional leader of the Tsargrad Society, a sanctioned Russian organization controlled by sanctioned oligarch Konstantin Malofeyev, who was previously indicted by this Office for willfully violating U.S. sanctions laws. On two separate occasions, Ianchauskas lied to the FBI, falsely claiming that he had no involvement in the Tsargrad Society whatsoever, and no involvement in its predecessor entity the Double Headed Eagle Society for the three prior years. Together with our law enforcement partners, we will continue to hold accountable those who seek to undermine critical sanctions put in place to challenge Russia’s aggression.” According to the Complaint previously filed against IANCHAUSKAS, the Information, and other filings: IANCHAUSKAS is a U.S. green card holder who principally resides in Russia. By operation of the Ukraine-Related Executive Orders 13660, 13661, 13662, and 14024, IANCHAUSKAS is prohibited from, among other things, making any contribution or provision of funds, goods, or services to or for the benefit of sanctioned Russian oligarch Konstantin Valeryevich Malofeyev or certain Malofeyev-controlled designated entities, including the Society, formerly known as the Double Headed Eagle Society (“DHES”). The Office of Foreign Assets Control (“OFAC”) initially designated Malofeyev in 2014, explaining that he was one of the main sources of financing for Russians promoting separatism in Crimea and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of, the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk. The Society was designated by OFAC in or about April 2022 for being owned or controlled by, or for having acted or purported to act for or on behalf of, Malofeyev. As described by OFAC, the Society was formerly known as DHES, a Russia-registered organization which has been accused of involvement in espionage on behalf of Russia. OFAC further explained that the Society is part of Malofeyev’s “malign influence ecosystem” and “advocates for Russia to return to a monarchical system of government and counts among its core principles revanchist aims like the ‘reunification of the Russian people’ and ‘returning the Russian Empire to its historical borders’ — to include, in the Society’s definition, Ukraine, Belarus, the Baltic States, Moldova, Central Asia, and the Caucasus.” [1] Following OFAC’s designations, on or about April 6, 2022, this Office indicted Malofeyev on one count of conspiracy to violate the International Emergency Economic Powers Act (“IEEPA”) and one count of violation of IEEPA. On or about January 12, 2022, during an in-person interview with FBI agents in the Southern District of New York, IANCHAUSKAS falsely stated, in substance and in part, that he had no involvement in the Society whatsoever, he had no involvement with DHES for approximately three years, and he never had a leadership position at DHES and never did anything on behalf of DHES. In truth and in fact, and as IANCHAUSKAS knew, from at least in or about 2020 through in or about 2022, IANCHAUSKAS served as the head of the Penza Regional Branch of DHES, which in or about November 2020 was renamed the Society. In his leadership capacity, IANCHAUSKAS planned DHES events in Russia and received funding from DHES in or about 2020, among other times. Subsequent to his interview with the FBI in January 2022, IANCHAUSKAS continued his membership in the Society and provided services to the Society. In or about April 2023, when inviting individuals to attend an event with Malofeyev in Penza, Russia, IANCHAUSKAS wrote, among other things, “we are his regional department,” and distributed a photograph of Malofeyev with the message, in part and substance, “it is thanks to him and his subordinates that Crimea was joined to Russia and Donbass began to be joined.” During a second interview with the FBI on December 22, 2023, IANCHAUSKAS reiterated certain false statements, including that he had never been a member of the Society. * * * IANCHAUSKAS, 39, a U.S. green card holder principally residing in Russia, pled guilty to one count of making false statements to special agents of the FBI, which carries a maximum sentence of five years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the outstanding investigative work of the FBI. The prosecution is being handled by the Office’s Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Thane Rehn and Vladislav Vainberg are in charge of the prosecution. [1] U.S. Department of Treasury, Press Release “U.S. Treasury Designates Facilitators of Russian Sanctions Evasion,” available online https://home.treasury.gov/news/press-releases/jy0731


title: Staffing Company to Pay $2.7M for Alleged Failure to Provide Adequate Cybersecurity for COVID-19 Contact Tracing Data

component: Civil Division

body_text: Insight Global LLC, headquartered in Atlanta has agreed to pay $2.7 million to resolve allegations that it violated the False Claims Act by failing to implement adequate cybersecurity measures to protect health information obtained during COVID-19 contact tracing. The United States alleged that during the COVID-19 pandemic, the Pennsylvania Department of Health hired Insight Global to provide staffing for COVID-19 contact tracing and paid Insight Global using funds from the U.S. Centers for Disease Control and Prevention. Insight Global understood that personal health information of contact tracing subjects needed to be kept confidential and secure, but it failed to do so. For example, certain personal health information and/or personally identifiable information of contact tracing subjects was transmitted in the body of unencrypted emails, staff used shared passwords to access such information, and such information was stored and transmitted using Google files that were not password protected and were potentially accessible to the public via internet links. The United States further alleged that from November 2020 through January 2021, Insight Global managers received complaints from Insight Global staff that such information was unsecure and potentially accessible to the public, but Insight Global failed to start remediating the issue until April 2021. At that point, Insight Global addressed the issue, including by securing such information, investigating the cause and scope of the incident, strengthening internal controls and procedures, adding more data-security resources and issuing a public notice regarding the scope of the potential exposure and offering free credit monitoring and identity protection services to those affected. Insight Global also cooperated with the United States’ investigation. “The resolution announced today reflects our continuing commitment to ensure that government contractors fulfill their cybersecurity obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Failure to do so can compromise sensitive information of individuals and the government. The Justice Department will hold accountable those contractors who knowingly fail to satisfy cybersecurity requirements.” “We will continue to work tirelessly here in the Middle District of Pennsylvania to make sure that those who do business with the government fulfill their commitments,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Increasingly, cybersecurity is a critical part of most, if not all, federally funded contracts. We are thankful for the support of HHS-OIG and their assistance in investigating this case.” “Contractors for the government who do not follow procedures to safeguard individuals’ personal health information will be held accountable,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the security of their personal health data.” On Oct. 6, 2021, the Deputy Attorney General announced the department’s Civil Cyber-Fraud Initiative , which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here . The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The settlement in this case provides for the whistleblower, Terralyn Williams Seilkop, a former Insight Global staff member who worked on the contact tracing at issue, to receive a $499,500 share of the settlement amount. The case is captioned United States ex rel. Seilkop v. Insight Global LLC , No. 1:21-cv-1335 (M.D. Pa.). Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Tamara J. Haken for the Middle District of Pennsylvania handled this matter, with assistance from HHS-OIG. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Portland Man Pleads Guilty to Bank Fraud, Identity Theft

body_text: PORTLAND, Maine: A Portland man pleaded guilty today in U.S. District Court in Portland to conspiracy to commit bank fraud and aggravated identity theft. According to court records, from May to June 2022, Paul Logugune , 22, and a coconspirator broke into unattended vehicles to steal purses and wallets to obtain driver’s licenses and checkbooks. Forged checks were then drawn on the stolen checkbooks and made payable to the names on the stolen licenses. They then recruited others to cash the forged checks at multiple credit union branches in Cumberland County using the stolen IDs to impersonate the ID theft victims. Logugune faces a maximum sentence of 30 years followed by up to five years of supervised release. He also faces a fine of up to $1 million. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI investigated the case. ###


title: Owner of Suburban Chicago Medical Supply Company Convicted in Procurement Fraud Scheme at U.S. Department of Veterans Affairs

body_text: CHICAGO — The owner of a suburban Chicago medical supply company has been convicted of federal fraud charges for paying kickbacks to a U.S. Department of Veterans Affairs employee in exchange for procuring orders of medical equipment. After a week-long trial in U.S. District Court in Chicago, the jury on Monday found DARREN A. SMITH, 59, of Hazel Crest, Ill., guilty of all eight wire fraud counts against him. Each count is punishable by up to 20 years in federal prison. U.S. District Judge Edmond E. Chang set sentencing for Sept. 10, 2024. Smith operated a medical distribution company based in Bolingbrook, Ill. Evidence at trial revealed that Smith schemed with a procurement clerk in the Veterans Health Administration Prosthetics Service in Chicago to have the VA order costly medical equipment from Smith’s company in exchange for concealed kickbacks to the clerk. The orders placed by the clerk involved unnecessary and more expensive rentals of certain medical equipment from Smith’s company instead of purchasing the equipment outright, as VA physicians had instructed. From 2017 to 2020, the VA spent more than $2.7 million at Smith’s company and fraudulently overpaid it by more than $1.3 million. In exchange, the clerk pocketed kickbacks from Smith of at least $220,000. The VA procurement clerk, ANDREW LEE, 68, of Chicago, pleaded guilty to a wire fraud charge prior to trial. He is awaiting sentencing. Smith’s conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Gregory Billingsley, Special Agent-in-Charge of the Department of Veterans Affairs, Office of Inspector General, Central Field Office. The government is represented by Assistant U.S. Attorney Heidi Manschreck and Special Assistant U.S. Attorney Benjamin Christenson.


title: Violent Felon Found Guilty in Federal Court for Possessing a Machinegun and Perpetrating Over $1 Million Bank Fraud Scheme

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- A federal jury has found Derrick Barbour, 27, of Indianapolis, guilty of unlawful possession of a machinegun, being a felon-in-possession of a firearm, unlawful possession of a USPS Arrow Key, possession of stolen mail, and bank fraud, following a four-day trial. According to court documents and evidence introduced at trial, early in the morning on February 10, 2023, Indianapolis Metropolitan Police Department (IMPD) officers stopped Barbour, who was driving a stolen vehicle. Barbour, the only occupant in the vehicle, refused to exit, despite over 100 commands from law enforcement to do so. Eventually, IMPD SWAT officers physically removed Barbour from the vehicle and placed him under arrest. Searching Barbour’s person, they found a baggie of cocaine in one of his socks and part of a handgun in his other sock. Later, law enforcement officers searched the vehicle Barbour was driving. Inside, they found two loaded handguns, a 10 mm Glock model 20 handgun that had previously been reported stolen, and a Glock 17 9mm handgun equipped with a “Glock switch”—a small metallic device that converts a semi-automatic handgun into a fully automatic machinegun, where one press of the trigger fires multiple rounds. The handgun on which the “Glock switch” was installed had a magazine capable of holding 50 rounds. Installing a “Glock switch” requires the removal of a part of the handgun. The trial evidence showed that the handgun piece found in Barbour’s sock when he was arrested was the part of the Glock 17 handgun that had been removed to install the “Glock switch.” The jury found that Barbour’s possession of the “Glock switch” was illegal. Additionally, the jury found that Barbour’s possession of the two handguns was also unlawful, as Barbour had previously been convicted of multiple felonies, including attempted armed robbery, possession of cocaine, and residential entry. In addition to firearms, law enforcement officers also found a significant amount of stolen mail in the vehicle Barbour was driving. Inside the envelopes were checks and money orders made out to other people and businesses. Also, hanging from Barbour’s keyring were two “arrow keys,” which are used to access U.S. Postal Service collection boxes. Indeed, these specific keys were reported missing in late 2022 from the Bacon Station Post Office in Indianapolis. It is unlawful for any unauthorized person to possess an arrow key. The jury found Barbour guilty of possessing both stolen mail and the arrow keys. Finally, the jury convicted Barbour of bank fraud for washing the stolen checks and cashing them for himself. The jury saw that, in the trunk of Barbour’s vehicle, investigators recovered a laptop computer, a typewriter, and a duffel bag containing additional checks, as well as blank check stock. Many of the checks had been altered to include Barbour’s name. Additionally, the jury saw evidence that the ribbon of the typewriter found in the vehicle and used to alter the checks included Barbour’s name. The total value of the checks and money orders recovered from the Chevrolet Impala was approximately $$1,217,639.62 The United States Postal Service – Office of Inspector General, Bureau of Alcohol, Firearms, Tobacco and Explosives, U.S. Postal Inspection Service, and IMPD investigated this case. U.S District Court Judge James P. Hanlon presided over the trial and will impose sentence at a later date. Barbour faces up to 70 years in federal prison. U.S. Attorney Zachary A. Myers thanked Assistant United States Attorneys Kelsey L. Massa and Meredith Wood, who prosecuted this case. ###


title: Charleston Developer Pleads Guilty to Bankruptcy Fraud

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – John H. Wellford III, 73, of Charleston, pleaded guilty today to falsification of bankruptcy records. According to court documents and statements made in court, on March 29, 2019, Wellford filed for bankruptcy on behalf of Corotoman Inc., a real estate development company he owned and operated. As part of the bankruptcy, Corotoman’s Statement of Financial Affairs required Wellford to disclose all monetary transfers from Corotoman outside the ordinary course of business that had occurred in the two years prior to filing for bankruptcy. Wellford admitted that, despite this requirement, he did not disclose that he had transferred $925,326.43 from Corotoman on or around May 2, 2018 to another of Wellford’s businesses, Marsh Fork Development. Approximately 10 months prior to the bankruptcy filing, Corotoman received a large influx of cash while it was struggling financially and while one of its creditors was actively trying to collect on an outstanding debt. Wellford deposited a $1,978,101.40 check from American Electric Power in Corotoman’s bank account on or around April 30, 2018. Wellford then transferred $925,326.43 of the funds to Marsh Fork Development on or around May 2, 2018. From that money, Wellford transferred $680,000 to his lawyer’s client trust account. Over the next five months, Wellford caused his lawyer to transfer the entire $680,000 back to various businesses that Wellford owned, primarily Marsh Fork Development. Wellford admitted that all of these transactions were to ensure that he maintained possession and control over the money so that he could use the money for his businesses. Additionally, when Wellford attended a May 28, 2019 meeting of creditors, he testified that Corotoman had not made any payments to creditors outside the ordinary course of business in the year prior. When Wellford twice amended Corotoman’s bankruptcy filings to account for other undisclosed transactions that took place at the same time as the transfer, he failed to disclose the transfer. Wellford is scheduled to be sentenced on August 7, 2024, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. Wellford also owes $925,326.43 in restitution. “The defendant sought to abuse the bankruptcy process and conceal the transfer of these substantial funds because he wanted to keep that money and did not want it to be available to his company’s creditors,” said United States Attorney Will Thompson. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police, the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU) and the West Virginia Offices of the Insurance Commissioner-Special Investigations Division. The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. “Financial crimes undermine our foundation of economic stability. The message here is clear: our economy is not a marketplace for manipulation, theft, or criminal activity,” said FBI Pittsburgh Special Agent in Charge Kevin Rojek. “No one is above the law and the resolve to uphold it remains resolute for the FBI and our partners. Truth will always find its voice in the pursuit of justice.” “Debtors’ responsibility to provide truthful, accurate, and complete information is essential to the proper function of the bankruptcy system,” said Acting United States Trustee Gerard Vetter of Region 4, which includes West Virginia. “This case demonstrates the dedication of the United States Trustee Program and the Justice Department to enforce the statutes imposing that responsibility and to ensure a fair process for debtors, creditors and other stakeholders. We thank U.S. Attorney Thompson and our law enforcement partners for their commitment to protecting the integrity of the bankruptcy system.” Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Holly Wilson is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-63. ###


title: Former Chicopee Superintendent of Schools Sentenced for Lying About Sending Nearly 100 Threatening Messages to Chief of Police Candidate

component: USAO - Massachusetts

body_text: BOSTON – The former Superintendent of the Chicopee Public Schools was sentenced yesterday for making false statements in connection with her sending 99 threatening messages to a candidate for Chicopee Police Chief. Lynn Clark, 53, of Belchertown, was sentenced by U.S. District Court Judge Mark G. Mastroianni to serve one year of probation and pay a $1,000 fine. In January 2024, Clark pleaded guilty to two counts of making false statements. “In a relentless effort to evade accountability, Ms. Clark’s actions and lies not only harmed innocent people and tarnished the reputation of Chicopee, but also sowed chaos and wasted invaluable investigative resources. She abused her position of trust as a community leader to engage in a series of baseless accusations and to weave a web of intricate lies. Ms. Clark’s scheme led to months of needless stress for the City and halted its crucial search for a Chief of Police. Additionally, her lies resulted in hundreds of hours of wasted investigation as she pointed the finger at completely innocent people,” said Acting United States Attorney Joshua S. Levy. “This calculated misconduct, which spanned false accusations against police officers, a city employee, and even her own son, underscores a flagrant disregard for the repercussions of her actions.” “Former Chicopee School Superintendent Lynn Clark failed to lead by example when she falsely claimed she was a victim of a crime and then repeatedly lied to the FBI. In doing so, she caused unnecessary stress and reputational harm to those she accused, and wasted hundreds of hours of investigative resources,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence makes it clear that willfully lying to federal agents will be result in serious consequences. The FBI can’t properly pursue our investigative mandate – in this case, fighting public corruption – if the people we interview think they can deceive us with impunity.” In December 2021, the City of Chicopee was in the process of hiring a new Police Chief. On Dec. 3, 2021, law enforcement received a report that a candidate for the position was receiving threats intended to force the victim to withdraw their application for Chicopee Police Chief. In November 2021, after submitting their application for Police Chief, the victim received numerous text messages from unknown numbers containing threats to expose information that would cause the victim reputational harm. As a result, the victim withdrew their application and the City delayed the selection process. In meetings with law enforcement over the course of several months during the investigation, Clark falsely stated that she did not know who sent the messages and attempted to dissuade law enforcement from pursuing the investigation any further, expressing concern that the investigation was harming her reputation and “tearing the city apart.” Clark also falsely claimed to be a victim and stated that she received threatening text messages from unknown phone numbers, when, in fact she sent the messages to herself. Additionally, over the course of the investigation, Clark falsely accused at least five other, innocent individuals of sending the threatening text messages – including the victim’s fellow police officers, a City employee and her own son. The investigation revealed that a total of approximately 99 threatening messages were sent from fictitious phone numbers purchased through a mobile app. Phone and internet records revealed that these numbers were purchased by Clark and that these accounts sent each of the threatening messages. Clark made false statements to law enforcement denying that she had downloaded a mobile app with which she purchased the fictitious phone numbers to send the messages. Clark later admitted that she did indeed send the messages and downloaded the app. Acting U.S. Attorney Levy and FBI SAC Cohen made the announcement. Assistant U.S. Attorney Neil L. Desroches of the Springfield Branch Office prosecuted the case.


title: Beckley Man Pleads Guilty to Federal Drug Crime

body_text: BECKLEY, W.Va. – Michael Dwayne Kelly II, 34, of Beckley, pleaded guilty today to possession with intent to distribute fentanyl, cocaine, and heroin. According to court documents and statements made in court, on January 27, 2022, Kelly sold approximately 6.9 grams of fentanyl to a confidential informant for $700 at Kelly’s residence in Beckley. Kelly admitted to the transaction and further admitted to selling approximately 28 grams of fentanyl to the confidential informant for $500 at his residence, on February 10, 2022. Law enforcement officers executed a search warrant at Kelly’s residence on February 17, 2022, and seized 189 grams of fentanyl, 56 grams of cocaine, 27 grams of heroin, a Ruger LCP .380-caliber handgun, a Taurus model 22LR handgun, a Sig Sauer model 1911 .45-caliber handgun, a Glock model 42 .380-caliber handgun and $13,046. Kelly admitted that he intended to distribute the seized drugs in and around the Southern District of West Virginia. Kelly is scheduled to be sentenced on August 23, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. Co-defendant Savannah Elizabeth Todd, 31, of Beckley, awaits sentencing after pleading guilty to possession with intent to distribute fentanyl, cocaine and heroin on March 1, 2024. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-163. ###


title: Washington man sentenced to four years in prison for fentanyl trafficking in Missoula

body_text: MISSOULA — A Washington man who brought fentanyl pills to Missoula for distribution was sentenced today to four years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, Dustin William Slaney, 44, of Tacoma, Washington, pleaded guilty in December 2023 to possession with intent to distribute controlled substances. U.S. District Judge Dana L. Christensen presided. The government alleged in court documents that law enforcement learned from sources that Slaney was a prolific drug dealer in the Missoula area from approximately January 2021 through December 2022 and that he brought drugs from Spokane to Missoula for redistribution. Investigators learned that an individual purchased more than 3,000 fentanyl pills over a 60-day period from Slaney and that he had been seen in possession of 10,000 fentanyl pills and a half-pound of meth. In December 2022, a Montana state search warrant was served on Slaney’s vehicle and resulted in the recovery of fentanyl, meth, heroin, various drug paraphernalia, firearms, and U.S. currency. Assistant U.S. Attorney Tara J. Elliott prosecuted the case. The FBI’s Montana Regional Violent Crime Task Force and Missoula Police Department conducted the investigation. 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. XXX


title: Montgomery County Resident Sentenced for Transmitting Threats to North Carolina Jewish Organization

component: USAO - North Carolina, Middle

body_text: GREENSBORO – A North Carolina man was sentenced today to 18 months in prison, after pleading guilty to one count of communicating threats in interstate commerce, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina. JEFFREY SCOTT HOBGOOD, age 64, of Troy, North Carolina, was sentenced to an 18-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the MDNC, to be followed by a 3-year term of supervised release and 20 hours of community service weekly for twelve weeks. He pleaded guilty on January 3, 2024, to communicating threats in interstate commerce, a violation of Title 18, United States Code, Section 875(c). According to court records, on October 11, 2023, HOBGOOD sent a threatening email to a Jewish organization located in Charlotte, North Carolina, addressing the recipients as “Israeli jews of David star,” and threatening to “take every one of you out,” writing that “you semite [sic] pieces of s- will be annihilated.” Two days later, HOBGOOD sent a second threatening email to the same organization, again making a reference to the religion of the recipients. In his plea agreement, HOBGOOD admitted that he selected the targets of his offense of conviction because of the actual and perceived religion of the victims. "It is abhorrent to threaten someone with violence because of who they are or how they worship. The FBI worked tirelessly with prosecutors from the U.S. Attorney’s Office for the Middle District Of North Carolina to ensure Jeffrey Hobgood could not offer excuses for his hate-filled messages and would instead, serve time in federal prison," said Robert M. DeWitt, the FBI Charlotte Special Agent in Charge. The case was investigated by the Federal Bureau of Investigation’s civil rights and public corruption squad, the Troy Police Department, and the Charlotte-Mecklenburg Police Department. The case was prosecuted by Assistant United States Attorneys JoAnna G. McFadden and Ashley R. Waid. ###


title: Threats to murder Montana U.S. Sen. Jon Tester send Billings man to prison for 30 months

body_text: BILLINGS — A Billings man who admitted to threatening to kill Montana U.S. Senator Jon Tester in voicemail messages was sentenced today to 30 months in prison, to be followed by three years of supervised release, the U.S. Attorney’s Office said. The defendant, Anthony James Cross, 30, pleaded guilty in January to threats to injure and murder a United States Senator. U.S. District Judge Susan P. Watters presided. The court accepted a plea agreement in the case and ultimately dismissed a second count that charged Cross with threats against the President. The government alleged in court documents that on April 17, 2023, Sen. Tester’s office received voicemails containing direct threats to the senator and his family. The voicemails, which contained expletives, included threats that the caller was going to, among other things, “kill every single one of your (obscenity) family members,” and that they would experience a “horrendous death.” Law enforcement determined that the phone number associated with the calls was attributed to Cross, who lived in Billings and had previous interactions with law enforcement. A review of Cross’s social media activity indicated disturbing content. The government further alleged that on April 25, 2023, Google contacted the FBI regarding multiple comments made to YouTube videos flagged as threatening. The comments were attributed to Cross’s YouTube account. Some of the comments made in April 2023 included direct threats to kill the President and how “we are actively hunting down and killing any trans in our major cities.” When interviewed, Cross admitted to making the comments posted on YouTube and to using his cellular phone to make the comments. Assistant U.S. Attorneys Zeno B. Baucus and Jeffrey K. Starnes prosecuted the case. The FBI and United States Secret Service conducted the investigation. XXX


title: Staffing Company to Pay $2.7 Million for Alleged Failure to Provide Adequate Cybersecurity for COVID-19 Contact Tracing Data

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG - Insight Global LLC, headquartered in Atlanta, Georgia, has agreed to pay $2,700,000 to resolve allegations that it violated the False Claims Act by failing to provide adequate cybersecurity to protect health information obtained during COVID-19 contact tracing. The United States alleged that during the COVID-19 pandemic, the Pennsylvania Department of Health hired Insight Global to provide staffing for COVID-19 contact tracing, and paid Insight Global using funds from the U.S. Centers for Disease Control and Prevention. Insight Global understood that personal health information of contact tracing subjects needed to be kept confidential and secure, but it failed to do so. For example, certain personal health information and/or personally identifiable information of contact tracing subjects was transmitted in the body of unencrypted emails, staff used shared passwords to access such information, and such information was stored and transmitted using Google files that were not password protected and were potentially accessible to the public via internet links. The United States further alleged that from November 2020 through January 2021, Insight Global managers received complaints from Insight Global staff that such information was unsecure and potentially accessible to the public, but Insight Global failed to start remediating the issue until April 2021. At that point, Insight Global addressed the issue, including by securing such information, investigating the cause and scope of the incident, strengthening internal controls and procedures, adding more data-security resources, and issuing a public notice regarding the scope of the potential exposure and offering free credit monitoring and identity protection services to those affected. Insight Global also cooperated with the United States’ investigation. “The resolution announced today reflects our continuing commitment to ensure that government contractors fulfill their cybersecurity obligations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Failure to do so can compromise sensitive information of individuals and the government. The Justice Department will hold accountable those contractors who knowingly fail to satisfy cybersecurity requirements.” “We will continue to work tirelessly here in the Middle District of Pennsylvania to make sure that those who do business with the government fulfill their commitments,” said United States Attorney Gerard M. Karam. “Increasingly, cybersecurity is a critical part of most, if not all, federally funded contracts. We are thankful for the support of HHS-OIG and their assistance in investigating this case.” “Contractors for the government who do not follow procedures to safeguard individuals’ personal health information will be held accountable,” said Maureen R. Dixon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners remain dedicated to protecting the American public and the security of their personal health data.” On October 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative , which aims to hold accountable entities or individuals that put sensitive information at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents. Information on how to report cyber fraud can be found here . The United States’ investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to receive a share of any recovery. The settlement in this case provides for the whistleblower, Terralyn Williams Seilkop, a former Insight Global staff member who worked on the contact tracing at issue, to receive a $499,500 share of the settlement amount. The case is captioned United States ex rel. Seilkop v. Insight Global LLC , No. 1:21-cv-1335 (M.D. Pa.). This matter is being handled by Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant United States Attorney Tamara J. Haken of the United States Attorney’s Office for the Middle District of Pennsylvania, with assistance from the Department of Health and Human Services’ Office of Inspector General. The claims resolved by the settlement are allegations only, and there has been no determination of liability. # # #


title: Man Convicted Of Sex Trafficking A Child, Other Crimes

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal jury convicted Terrence Clay, age 39, of Kent County, on all charges: (1) sex trafficking of a child; (2) sexual exploitation of a child; and (3) distribution of child pornography. Clay is scheduled to be sentenced on September 17, 2024. “Treating his victim like nothing more than property, Terrence Clay repeatedly ordered a minor to sell herself for sex,” said U.S. Attorney Mark Totten . “Today’s guilty verdict on all counts secures a measure of justice for the victim and the entire community who is harmed by these heinous crimes. Working with our law enforcement partners, social service providers, and others we will continue our efforts to end the scourge of human trafficking.” Evidence introduced at trial showed that Clay met the minor victim at a park in the City of Grand Rapids in early October 2022. He had sex multiple times with the victim and ordered her to have sex with other men for money, at one point directing her to “make a sign” and “panhandle,” offering specific sex acts at set prices. After securing nude images of the minor victim, Clay advertised her online. Police found the minor victim in a library, and she was taken to a foster home in the Upper Peninsula, while law enforcement began its investigation. Meanwhile, Clay located the minor victim and picked her up at her foster home early on the morning of November 12, 2022, without the knowledge of the foster family. Shortly after crossing south of the Mackinac Bridge, law enforcement pulled over the vehicle and found the minor victim in the car with the defendant. “The conviction of Terrence Clay is a testament to the exceptional investigative work carried out by our WEBCHEX task force in partnership with law enforcement agencies to combat child trafficking,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan . “We are committed to doing everything in our power to protect our children from exploitation and will continue to work tirelessly towards this goal.” “Our Human Trafficking Task Force continues to make progress in prosecutions and building relationships with area victim service providers to further enhance Kent County’s response to sex and labor trafficking,” said Kent County Sheriff Michelle LaJoye-Young . “It is not lost on us the impact these horrible crimes have on victims and our overall community.” The case was investigated by the Kent County Sheriff’s Office, the FBI, Kentwood Police Department, Forsythe Police Department, Cheboygan Sheriff’s Office, Tuscarora Township Police Department, the Michigan State Police and prosecuted by Assistant United States Attorney Constance Turnbull. This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office for the Western District of Michigan; county prosecutor’s offices; HSI; Michigan State Police’s Internet Crimes Against Children task force; the West Michigan Based Child Exploitation Task Force (WEBCHEX); and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Anyone with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, please visit: https://www.justice.gov/usao-wdmi/project-safe-childhood . ###


title: Brookline Woman Charged With Embezzling More Than $650,000 From Medical Practice

body_text: BOSTON – A former office manager of a Brookline medical practice was charged today with embezzling over $650,000 from the business over several years. Kathleen Libby, 40, of Brookline, was charged with one count of wire fraud. According to the charging documents, Libby stole from the medical practice in a variety of ways, including by transferring funds from the practice to a personal PayPal account she established named “Medline Surgical Supplies.” In doing so, Libby allegedly created the false impression that transfers from the medical practice to the PayPal account were expenses the medical practice had incurred for supplies. It is further alleged that Libby used the medical practice’s bank account to make payments toward purchases she had made at a variety of retailers, including Louis Vuitton, Bloomingdales, Best Buy, Target and travel-related websites. The charging documents also allege that Libby placed two of her relatives on the medical practice’s payroll and used its credit cards for her own personal benefit. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Mackenzie A. Queenin of the Securities, Financial & Cyber Fraud Unit is prosecuting the case. The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.