title: Attorney Pleads Guilty To Operating $18.8 Million Ponzi Scheme And To Money Laundering, Obstruction Of Justice, And Perjury Charges

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 that ROBERT WISNICKI pled guilty today to participating in a $18.8 million Ponzi scheme designed to lure investors to purchase real estate through his New York-based law firms, Wisnicki & Associates LLP and Wisnicki Neuhauser LLP (the “Wisnicki Firms”). WISNICKI also pled guilty to a separate conspiracy to commit money laundering using his law firm trust accounts to conceal the proceeds of healthcare fraud, during which WISNICKI obstructed justice and committed perjury while testifying before a grand jury. U.S. Attorney Damian Williams said: “As he has now admitted, Robert Wisnicki committed a wide array of criminal acts as part of multiple schemes designed to line his own pockets and cover his tracks. As a practicing attorney, Wisnicki knew better, but he flouted the law anyway, even going so far as to obstruct justice and commit perjury while testifying before a grand jury. Wisnicki now potentially faces years in prison and will pay millions in forfeiture and restitution to atone for his crimes.” FBI Assistant Director in Charge James Smith said: “Illegal activity involving the investment industry, especially Ponzi schemes, has unfortunately brought financial ruin to many Americans. While Wisnicki’s actions are unacceptable, they are even more egregious considering his position of trust as an attorney. The FBI will continue to work closely with our partners to pursue and prosecute individuals who offer victims false promises and take advantage for their own personal benefit.” If you believe you are a victim of these crimes, please contact the FBI at 1-800-CALL-FBI and reference this case. According to the Indictment, plea agreement, and statements made in court: The Ponzi Scheme The Wisnicki Firms specialized in real estate transactional work — namely, assisting clients with purchasing and selling property. In or about 2007, WISNICKI began a real estate investment business using the Wisnicki Firms. Existing clients of the Wisnicki Firms (“Investor Clients”) asked WISNICKI to identify potential real estate investment opportunities for them. The Investor Clients then either transferred funds to WISNICKI or asked him to retain their funds that were already held in the Wisnicki Firms’ Interest Only Lawyers Accounts (“IOLA”) accounts. WISNICKI then identified real estate investment opportunities for the Investor Clients, and the Wisnicki Firms represented the Investor Clients in the resulting investment transactions. The Investor Clients began suffering losses in the investments that WISNICKI had arranged. Rather than notify the Investor Clients of their losses, WISNICKI used funds from the Wisnicki Firms’ clients who did not participate in the real estate investments, which were held in trust in the Firms’ IOLA accounts, and transferred those funds to the Investor Clients to mask their losses. WISNICKI falsely represented to these other clients that their funds were still held in the Wisnicki Firms’ IOLA accounts, when in fact he had transferred those funds to his Investor Clients. WISNICKI also used funds from new Investor Clients to cover up losses suffered by prior Investor Clients. WISNICKI falsely told the new Investor Clients that their funds would be invested in real estate, when in fact he used those funds to repay his prior Investor Clients. WISNICKI continued the above-described fraud through at least in or about 2022. WISNICKI owes approximately $18.8 million to certain Investor Clients, which includes approximately $6.3 million to members of his family and approximately $12.5 million to non-family members. He is also owed approximately $6.7 million by various former clients. The Money Laundering, Obstruction, and Perjury Scheme New York and New Jersey no-fault insurance laws require a driver’s automobile insurance company to pay automobile insurance claims automatically for certain types of motor vehicle accidents, provided that the claim is legitimate and is below a particular monetary threshold (the “No-Fault Laws”). Pursuant to these requirements, insurance companies will often pay medical service providers directly for the treatment they provide to automobile accident victims without the need to bill the victims themselves. This process resolves automobile claims without apportioning blame or fault for the accident, thereby avoiding protracted disputes and the costs associated with an extended investigation of the accident. Beginning in or about 2014, a criminal organization (the “Gulkarov Conspiracy” or the “Gulkarov Conspirators”) began a scheme to exploit the No-Fault Laws. As part of the scheme, the Gulkarov Conspirators fraudulently owned and controlled more than a dozen medical professional corporations – including medical, acupuncture, and chiropractic practices – by paying licensed medical professionals to use their licenses to incorporate the professional corporations (collectively, the “Gulkarov Clinics”). The Gulkarov Conspirators further defrauded automobile insurance companies by billing insurance companies for unnecessary, harmful, and excessive medical treatments and lying under oath to insurance company representatives. The Gulkarov Conspirators laundered the proceeds of the healthcare fraud through, among other ways, the Wisnicki Firms. In or about 2016 and 2017, one of the Gulkarov Conspirators (“CC-1”), using checks, transferred funds from the Gulkarov Clinics to the Wisnicki Firms. WISNICKI deposited the checks into one of his IOLA accounts, despite the fact that the Wisnicki Firms did not represent the Gulkarov Clinics and had no attorney-client relationship with the Gulkarov Conspirators. The Gulkarov Conspirators then arranged for the Wisnicki Firms to use the healthcare fraud proceeds to pay for real estate on behalf of the leaders of the Gulkarov Conspiracy. In or about April 2021, the Wisnicki Firms were served with a subpoena from a grand jury sitting in the Southern District of New York (the “Subpoena”). Among other things, the Subpoena required the Wisnicki Firms to produce documentation concerning the checks from the Gulkarov Clinics. WISNICKI then communicated with CC-1 and learned that the proceeds of the checks were the proceeds of unlawful activity. WISNICKI, CC-1, and a second member of the Gulkarov Conspiracy (“CC-2”) agreed to respond to the Subpoena by submitting fabricated documents to the grand jury, lying in communications with the U.S. Attorney’s Office for the Southern District of New York, and committing perjury before the grand jury. WISNICKI, CC-1, and CC-2 further agreed to re-launder the proceeds of the checks from the Gulkarov Clinics in response to the Subpoena. At the direction of CC-1, WISNICKI wrote checks, drawn on his IOLA, purporting to return the monies that had been previously paid to his firm. The checks were made payable to physicians who purported to be owners of the Gulkarov Clinics and to family members of the Gulkarov Conspirators (together, the “Payees”). WISNICKI wrote the checks under the false pretense that the Payees were clients of the Wisnicki Firms who had previously paid money to the Wisnicki Firms for legal services. WISNICKI and others agreed that the checks to the Payees would be deposited, and the funds would then be withdrawn and returned to the Wisnicki Firms. WISNICKI delivered the checks to CC-1 for this purpose. Thereafter, on or about April 19, 2021, WISNICKI submitted to the grand jury over a dozen fabricated retainer agreements. The same day, WISNICKI falsely stated to the U.S. Attorney’s Office that the funds paid to the Wisnicki Firms “were originally supposed to be used for a [sic] retainer fees, which is why the agreements were originally prepared,” but that the clients ultimately “instead asked us to hold the funds to be used for future investments.” WISNICKI further represented that the Wisnicki Firms decided to return the retainer fees after receiving the Subpoena. On or about July 6, 2021, WISNICKI was called to appear before the grand jury as custodian of records for the Wisnicki Firms. WISNICKI falsely testified to the grand jury, among other things, that payments to the Wisnicki Firms had been made for the purpose of opening a “lending platform” that was never completed, and that WISNICKI had not spoken to anyone outside of the Wisnicki Firms about the Subpoena. * * * ROBERT WISNICKI, 44, of Forest Hills, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison, and one count of conspiracy to commit money laundering, which carries a maximum sentence of five years in prison. As part of his plea agreement, WISNICKI agreed to pay forfeiture of $19,010,548.06 and restitution of $18,800,000. 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. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the White Plains Division. Assistant U.S. Attorneys Mathew Andrews, Timothy Capozzi, and Ryan Allison are in charge of the prosecution.


title: Former U.S. Postal Service Employee in Chicago Admits Stealing Stimulus Checks From the Mail

component: USAO - Illinois, Northern

body_text: CHICAGO — A former U.S. Postal Service employee in Chicago has pleaded guilty in federal court to stealing government stimulus checks from the mail. OLIVIA L. BRYANT admitted in a plea agreement that in 2020 and 2021 she stole hundreds of pieces of mail from her route in Chicago’s Logan Square neighborhood. Some of the stolen mail contained government stimulus checks that were issued by the U.S. Treasury during the Covid-19 pandemic, the plea agreement states. Bryant admitted that five of the stimulus-check thefts occurred on St. Patrick’s Day 2021 when she removed the checks from her postal satchel and transferred them to her purse. Bryant, 35, of Chicago, pleaded guilty Thursday to a charge of theft from the U.S. mail. The conviction is punishable by a maximum sentence of five years in federal prison. U.S. District Judge John Robert Blakey set sentencing for Dec. 7, 2023. The guilty plea was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Scott Pierce, Special Agent-in-Charge of the Chicago Great Lakes Area Field Office of the U.S. Postal Service Office of Inspector General; and J. Russell George, Inspector General of the Treasury Department Inspector General for Tax Administration (TIGTA). The government is represented by Special Assistant U.S. Attorney Malgorzata Tracz Kozaka. Bryant plea agreement


title: Man Sentenced for Sexually Abusing Child in Fiji

component: Criminal Division

body_text: A Florida man was sentenced today to 60 years in prison for sexually abusing a child while traveling in Fiji. According to court documents, Jason R. Moore, 43, of Milton, sexually abused a child on multiple occasions during trips to Fiji in 2013 and 2016. In late 2022, Moore was arrested in Santa Rosa County by special agents from the Department of Homeland Security (DHS) and Florida Department of Law Enforcement (FDLE). Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jason R. Coody for the Northern District of Florida, and Special Agent in Charge John Condon of Homeland Security Investigations (HSI) Tampa made the announcement. HSI, FDLE, and the New York State Police investigated the case. Trial Attorney Adam Braskich of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney David L. Goldberg for the Northern District of Florida prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Colombian National Pleads Guilty to Illegal Reentry into the United States

component: USAO - New Hampshire

body_text: CONCORD – A previously removed Colombian national pleaded guilty in federal court in connection to his illegal reentry into the United States after being deported in 2013, United States Attorney Jane E. Young announces. Jheisson Rizo Suarez, 39, pleaded guilty to one count of reentry after deportation. U.S. District Court Judge Landya B. McCafferty scheduled sentencing for January 4, 2024. Suarez was indicted by a federal grand jury on June 21, 2023. On July 9, 2021, the defendant was arrested by the Dover Police Department in connection with a residential burglary in progress. A juvenile female, who was home alone and hiding under a bed, called 911 and whispered that an unknown number of individuals had forced entry into her home. The subsequent investigation revealed that the defendant was illegally in the United States, after having been previously deported on or about January 28, 2013. The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Dover Police Department and Immigration and Customs Enforcement led the investigation. The case is being prosecuted by Assistant U.S. Attorney Geoffrey Ward. ###


title: Ocean County Man Charged with Sexually Exploiting Minors

component: USAO - New Jersey

body_text: TRENTON, N.J. – An Ocean County, New Jersey, man made his initial court appearance today on charges of producing and distributing videos and images depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced. Christopher Budelman, 36, Brick, New Jersey, is charged by complaint with two counts of production of child pornography and one count of distribution of child pornography. He made his initial appearance before U.S. Magistrate Judge Douglas E. Arpert by videoconference and was detained. According to documents filed in this case and statements made in court: In June 2022, while communicating via an online video chat site, Budelman enticed at least two minors to engage in sexually explicit conduct while he masturbated. Budelman recorded and saved those video chats on his computer. From September 2021 to June 2022, Budelman used two Kik Messenger accounts to send images and videos containing child sexual abuse, including images and videos depicting prepubescent minors, to others. The charges of sexual exploitation of children each carry a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison, and a $250,000 fine. The charge of distribution of child exploitation material carries a mandatory minimum penalty of five years in prison, a maximum potential penalty of 20 years in prison, and a $250,000 fine. U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Ocean County Prosecutor’s Office High Tech Crime Unit, under the direction of Prosecutor Bradley D. Billhimer; the New Jersey State Police, under the direction of Superintendent Col. Patrick J. Callahan; and Brick Township Police Department, under the direction of Chief David Forrester, with the investigation leading to the charges. The government is represented by Assistant U.S. Attorney Ashley Super Pitts of the Criminal Division in Trenton. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. budelman.complaint.pdf


title: Three Nevada Men Sentenced in Multimillion-Dollar Prize Notice Scheme

component: Civil Division

body_text: Three men were sentenced on Friday in Las Vegas for perpetrating a prize-notification scheme that stole more than $10 million from elderly and vulnerable victims. Mario Castro, 55, of Las Vegas, was sentenced to 240 months in prison. Miguel Castro, 58, of Las Vegas, was sentenced to 235 months in prison. Jose Luis Mendez, 49, of Henderson, Nevada, was sentenced to 168 months in prison. In April, a jury found the three men guilty of conspiracy to commit mail fraud and multiple individual counts of mail fraud. According to court documents and evidence presented at trial, the three defendants and other co-conspirators printed and mailed millions of fraudulent prize notices that led their victims to believe that they could claim a large cash prize if they paid a fee of about $20 to $25. This was false; victims who paid the fees did not receive anything of value. Once victims fell prey to the scheme, the defendants bombarded them with more fraudulent prize notices. The defendants produced the fake prize notices at their warehouse in Las Vegas. The defendants received millions of dollars of money from victims. “For eight years, Mario Castro, Miguel Castro, and Jose Luis Mendez used lies and deceit to steal from the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The jury’s verdict and the sentences hold them accountable for their predatory conduct. The department is committed to protecting consumers from mass-mailing schemes.” The defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Justice Department obtained a court order shutting down the fraudulent mail operation. Mario Castro, Miguel Castro and Jose Luis Mendez worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The defendants and their co-conspirators ignored multiple cease and desist orders from the U.S. Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded to the cease and desist orders by changing the names of their companies and using straw owners to hide their continuing fraud. “These defendants took part in a conspiracy that preyed upon and deceived elderly consumers with repeated promises of large cash prizes,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Consumer Protection Branch and U.S. Postal Inspection Service to protect vulnerable members of our community, and to investigate and prosecute fraudsters who target seniors.” “Postal Inspectors are steadfast in our dedication to protecting the American people from prize-notice schemes and other mail fraud schemes, especially those that target seniors and their hard-earned savings” said Inspector in Charge Eric Shen of the Criminal Investigations Group of the U.S Postal Inspection Service (USPIS). “We work to rid the mail stream from fraudulent mass mailing solicitations and make the mail safe for all.” Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this prize notice scheme: Patti Kern, 65, of Henderson; Andrea Burrow, 43, of Las Vegas; Edgar Del Rio, 45, of Las Vegas; and Sean O’Connor, 54, of Las Vegas. The USPIS investigated the case. Trial Attorneys Timothy Finley and Daniel Zytnick of the Civil Division's Consumer Protection Branch and Assistant U.S. Attorney Mina Chang for the District of Nevada prosecuted the case. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . For more information about the U.S. Attorney’s Office for the District of Nevada visit www.justice.gov/usao-nv . Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov .


title: U.S. Settles False Claims Act Lawsuit Against Cardiologist And His Medical Practice For Paying Millions In Kickbacks For Referrals

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today that the United States has filed and settled a civil fraud lawsuit against KLAUS PETER RENTROP and his medical practice GRAMERCY CARDIAC DIAGNOSTIC SERVICES P.C. (“GRAMERCY CARDIAC”) for paying millions of dollars in kickbacks to physicians and their practices for patient referrals. The kickbacks took the form of inflated office “rental payments” and fees paid to contracted cardiologists. Specifically, the Complaint alleges that, from 2010 to 2021, RENTROP and Gramercy Cardiac entered into office space rental agreements, often in excess of fair market value, with primary care and other physicians (or their medical practices) in order to induce these physicians to refer patients to GRAMERCY CARDIAC-contracted cardiologists who saw patients at the rented office space. These cardiologists then regularly ordered diagnostic tests and procedures that were performed at GRAMERCY CARDIAC locations and were paid a flat fee for each referral. GRAMERCY CARDIAC provides cardiac diagnostic imaging services, including PET and SPECT scans, and previously operated four offices in New York City. RENTROP founded and owns GRAMERCY CARDIAC and serves as its President. Under the settlement approved today by U.S. District Judge Jesse M. Furman, RENTROP and GRAMERCY CARDIAC will pay $4,510,678 to the United States and have admitted and accepted responsibility for conduct alleged in the Complaint as further described below. RENTROP and GRAMERCY CARDIAC have also agreed to pay $1,989,362 to the State of New York to resolve the State’s claims, for a total recovery of $6.5 million. The settlement amount is based on the Office’s assessment of RENTROP’s and GRAMERCY CARDIAC’s ability to pay based on the financial information they provided. The parties have also executed a Consent Judgment in the amount of $64,416,515, which may be enforced if Defendants do not make the payments required under the settlement agreement. In addition, RENTROP has agreed to relinquish his ownership and control over GRAMERCY CARDIAC by the end of the calendar year and will pay a portion of the proceeds of any sale of the practice to the United States. Further, RENTROP is indefinitely barred from working for any entity that bills federal healthcare programs. He also entered into a Voluntary Exclusion Agreement with HHS-OIG, which prohibits him from, among other things, participating in Medicare, Medicaid, or other federal healthcare programs for five years. U.S. Attorney Damian Williams said: “Over more than a decade, Klaus Peter Rentrop and Gramercy Cardiac paid millions of dollars to doctors and their medical practices in exchange for patient referrals for cardiac testing and procedures. The Anti-Kickback Statute is meant to ensure that when making medical decisions, a doctor considers only the patient’s best interests — not the doctor’s or others’ financial interests. The defendants violated those doctor-patient relationships through their kickback arrangements, and now they are being held to account.” HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Individuals and entities that participate in the federal healthcare system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients. Certain violations of the Anti-Kickback Statute can induce medically unnecessary testing and influence physicians’ decision-making inappropriately.” According to the Complaint, from 2010 through 2021: RENTROP and GRAMERCY CARDIAC offered and paid physicians and their practices millions of dollars in kickbacks in the form of inflated “rental payments” and referral fees to induce them to refer patients to Gramercy-contracted cardiologists and to Gramercy Cardiac for diagnostic tests and procedures, in violation of the Anti-Kickback Statute and the Stark Law. RENTROP and GRAMERCY CARDIAC’s scheme worked as follows. RENTROP and GRAMERCY CARDIAC entered into office space rental agreements, often in excess of fair market value, with primary care and other physicians or their medical practices (the “Rental Practices”). These agreements typically provided for the use of an exam room once or twice a month, as well as for the use of basic equipment ( e.g. , a telephone and a computer) and front desk staff to assist with scheduling. The defendants often agreed to pay thousands of dollars each month in rent. RENTROP and GRAMERCY CARDIAC also entered into independent contractor agreements with dozens of cardiologists (the “Gramercy-Contracted Cardiologists”) who were sent to see patients at the Rental Practices. In exchange for the purported “rental payments,” the Rental Practices referred patients to the Gramercy-Contracted Cardiologists, who in turn referred many of these patients to a GRAMERCY CARDIAC office to undergo cardiac diagnostic tests and procedures. RENTROP and GRAMERCY CARDIAC paid the Gramercy-Contracted Cardiologists a flat fee for each test or procedure performed on referred patients at a Gramercy Cardiac location, with larger fees paid for tests and procedures for which GRAMERCY CARDIAC received a greater reimbursement. These per-procedure fees were the only compensation paid to some Gramercy-Contracted Cardiologists. To ensure the kickbacks paid to the Rental Practices were working, RENTROP directed his staff to calculate GRAMERCY CARDIAC’s return on investment from the “rental payments” paid to each Rental Practice. RENTROP insisted on a minimum return on investment of at least 300% from the kickbacks. These Rental Practices referred tens of thousands of patients to the Gramercy-Contracted Cardiologists, who in turn referred more than 23,000 patients for PET and SPECT scans at GRAMERCY CARDIAC. A significant proportion of these patients were Medicare or Medicaid beneficiaries: GRAMERCY CARDIAC billed Medicare or Medicaid for tests or procedures provided to tens of thousands of Medicare or Medicaid beneficiaries who were referred by the Rental Practices, including for PET and SPECT scans for many thousands of these beneficiaries. As a result, the claims submitted for payment for these tests and procedures were false and violated the federal False Claims Act. As part of the settlement, RENTROP and GRAMERCY CARDIAC each admits, acknowledges, and accepts responsibility for the following conduct: From 2010 through 2021, GRAMERCY CARDIAC, at RENTROP’s direction, entered into rental agreements (the “Rental Agreements”) with more than 130 physicians and medical practices (the “Rental Practices”) under which GRAMERCY CARDIAC leased a portion of the practice’s office space, usually one or two exam rooms for certain days or hours each month. RENTROP took part in the negotiation of the Rental Agreements and signed them on behalf of GRAMERCY CARDIAC. GRAMERCY CARDIAC paid a total of more than $11 million to the Rental Practices pursuant to the Rental Agreements. From 2010 through 2021, GRAMERCY CARDIAC, at RENTROP’s direction, entered into independent contractor agreements (the “Independent Contractor Agreements”) with more than 50 cardiologists (the “Gramercy-Contracted Cardiologists”) or their medical practices. RENTROP took part in the negotiation of the Independent Contractor Agreements and signed them on behalf of GRAMERCY CARDIAC. GRAMERCY CARDIAC sent the Gramercy-Contracted Cardiologists to the rented office space one or more times each month to see patients who were referred for an assessment by the healthcare providers at the Rental Practice. The Gramercy-Contracted Cardiologists in turn referred these patients to GRAMERCY CARDIAC to undergo diagnostic tests and procedures, such as PET and SPECT scans. GRAMERCY CARDIAC paid many of the Gramercy-Contracted Cardiologists a flat fee for each diagnostic test or procedure which the cardiologist referred to GRAMERCY CARDIAC provided that the patient received the test or procedure at a GRAMERCY CARDIAC location. These “per procedure” fees were the only compensation GRAMERCY CARDIAC provided to the Gramercy-Contracted Cardiologists. Certain versions of Independent Contractor Agreements stated that the Gramercy-Contracted Cardiologist was to be paid not for the referrals to GRAMERCY CARDIAC, but rather for the “[a]dministration and supervision” of the PET and SPECT scans to be performed at GRAMERCY CARDIAC. However, in many cases, the Gramercy-Contracted Cardiologists did not, in fact, administer and supervise the PET and SPECT scans and were nonetheless paid by GRAMERCY CARDIAC based solely on the number of tests and procedures referred. At the time the Rental Agreements were executed, it was understood that the Rental Practices would refer their patients to the Gramercy-Contracted Cardiologists. Indeed, GRAMERCY CARDIAC calculated the number of hours per month that GRAMERCY CARDIAC leased the office space based on the volume of expected patient referrals. GRAMERCY CARDIAC calculated its return on investment from its Rental Agreements — which it internally referred to as the “efficiency” of the Rental Agreements — by comparing the revenue GRAMERCY CARDIAC generated from the patient referrals to the payments it made to the Rental Practice. When a Rental Agreement’s return on investment fell below the minimum threshold, GRAMERCY CARDIAC, at RENTROP’s direction, would often refuse to pay the Rental Practice the amounts due under the Rental Agreement. In addition, at RENTROP’s direction, GRAMERCY CARDIAC Physician Liaisons advised Rental Practice physicians that if the volume of referrals to Gramercy-Contracted Cardiologists did not increase, rent would be decreased, or the Rental Agreement would be terminated. GRAMERCY CARDIAC terminated a number of Rental Agreements because the return on investment through patient referrals was too low. When negotiating or re-negotiating the monthly rental payment to be made under a Rental Agreement, GRAMERCY CARDIAC took into account the expected or historic return on investment based on the volume of patient referrals generated from the Rental Practice. The rental fees paid by GRAMERCY CARDIAC under the Rental Agreements were in excess of fair market value for at least some Rental Agreements. In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act. * * * Mr. Williams praised the outstanding investigative work of HHS-OIG, and he thanked the Medicaid Fraud Control Unit at the New York State Attorney General’s Office for its extensive collaboration in the investigation. The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jacob Lillywhite is in charge of the case.


title: Two sentenced in burglary of British Consul General’s residence

component: USAO - Texas, Southern

body_text: HOUSTON – A Houston man and woman have been sentenced for damaging property occupied by a foreign government, announced U.S. Attorney Alamdar S. Hamdani. Darion Benjamin Woods, 28, and Christin Danielle Brinkley, 26, pleaded guilty May 16, admitting they broke into, damaged and stole several items from the private residence of the Consul General for Great Britain. U.S. District Judge Randy Crane has now ordered Woods to serve 30 months in prison followed by three years of supervised release. Brinkley received 14 months followed by one year of home detention as part of her three years of supervised release after her sentence. Both were also ordered to pay $56,636.15 in restitution. In imposing the sentence, the court considered a statement from the victim and noted the seriousness of the conduct and extent of damage to the residence. At the time of the pleas, both admitted to burglarizing the home on July 23, 2022. Nobody was in the residence at the time of the incident. Security cameras captured Brinkley and Woods pulling up to the gated residence with a U-Haul, jumping over the gate and eventually driving through it and causing significant damage. Once inside, they stole multiple items, including the two cars (one of which was the property of the British Consulate), jewelry, electronics, documents and a safe. Authorities later located the stolen vehicles at an address in Houston and observed Brinkley inside both vehicles at different times. They took Brinkley and Woods into custody and recovered the vehicles as well as some property from the residence, most of which was damaged. Both were ordered into custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The Department of State – Diplomatic Security Service and the FBI conducted the investigation with the assistance of the Harris County Sheriff’s Office. Assistant U.S. Attorneys Luis Batarse and Richard W. Bennett prosecuted the case.


title: Fort Myers Roofing Contractors Sentenced to Prison for Evading Over $1.1 Million in Taxes

component: Tax Division

body_text: Two Florida businessmen, David Aaron and Russell Ultes, were sentenced today to 18 months and nine months in prison, respectively, for a scheme to evade over $1.1 million in income taxes. According to court documents and statements made in court, Aaron and Ultes were co-owners of Marlin Construction Group LLC (Marlin), a Fort Myers-based residential and commercial roofing company. In 2018 and 2019, Aaron and Ultes diverted millions of dollars of customer checks made payable to Marlin, by cashing them at check-cashing businesses in nearby counties. Aaron and Ultes used the cash to pay personal expenses, such as the purchase of jet-skis, boats and vehicles. To carry out the scheme, Aaron and Ultes caused Marlin’s books and records to falsely underreport the business’s gross receipts and income for those years. Aaron and Ultes provided false information to Marlin’s tax return preparers, resulting in the preparation of false 2018 and 2019 corporate income tax returns (Forms 1120S) that did not report all gross receipts and income. Because the income from the false corporate returns flowed through to Aaron and Ultes’s personal returns, their 2018 and 2019 personal income tax returns (Forms 1040) were similarly false. In total, Aaron and Ultes caused a tax loss to the IRS of over $1.13 million. U.S. District Judge Sheri P. Chappell for the Middle District of Florida also ordered that, in addition to their prison sentences, Aaron serve three years of supervised release and pay a $50,000 fine and that Ultes serve nine months of home confinement, followed by three years of supervised release and pay a $75,000 fine. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement. IRS-Criminal Investigation investigated the case. Senior Litigation Counsel Stanley J. Okula Jr. and Trial Attorney Richard J. Hagerman of the Tax Division prosecuted the case with support from the U.S. Attorney’s Office for the Middle District of Florida.


title: Fort Myers Man Sentenced To Federal Prison For Unlawfully Possessing Firearms As A Convicted Felon

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – U.S. District Court Judge Thomas Barber has sentenced Travis Lavon Anderson (36, Fort Myers) to nine years in federal prison for possessing firearms as a previously convicted felon. The court also ordered Anderson to forfeit the firearms and ammunition possessed during the offense. Anderson had pleaded guilty on June 12, 2023. According to court documents, in the afternoon of June 8, 2022, Fort Myers Police Department (FMPD) officers were alerted to multiple rounds of gunfire in quick succession in the vicinity of a residence on Lantana Street in Fort Myers. During a subsequent investigation into the origin of the gunfire, officers obtained surveillance video depicting Anderson discharging a firearm 10 times in front of his residence on Lantana Street. The FMPD obtained a search warrant for the interior of the residence where officers found three firearms and several dozen rounds of ammunition belonging to Anderson, including a loaded AR-15-style rifle and two handguns. As a convicted felon, Anderson is prohibited from possessing firearms or ammunition under federal law. This case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Simon R. Eth. 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: Three Nevada Men Sentenced In Multimillion-Dollar Prize Notice Scheme

component: USAO - Nevada

body_text: LAS VEGAS – Three men were sentenced on Friday in Las Vegas, Nevada for perpetrating a prize-notification scheme that stole more than $10 million from elderly and vulnerable victims. Mario Castro, 55, of Las Vegas, Nevada, was sentenced to 240 months in prison. Miguel Castro, 58, of Las Vegas, Nevada, was sentenced to 235 months in prison. Jose Luis Mendez, 49, of Henderson, Nevada, was sentenced to 168 months in prison. In April, a jury found the three men guilty of conspiracy to commit mail fraud and multiple individual counts of mail fraud. According to court documents and evidence presented at trial, the three defendants and other co-conspirators printed and mailed millions of fraudulent prize notices that led their victims to believe that they could claim a large cash prize if they paid a fee of about $20 to $25. This was false; victims who paid the fees did not receive anything of value. Once victims fell prey to the scheme, defendants bombarded them with more fraudulent prize notices. The defendants produced the fake prize notices at their warehouse in Las Vegas. The defendants received millions of dollars of money from victims. “For eight years, Mario Castro, Miguel Castro, and Jose Luis Mendez used lies and deceit to steal from the elderly and vulnerable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The jury’s verdict and today’s sentences hold them accountable for their predatory conduct. The department is committed to protecting consumers from mass-mailing schemes.” The defendants operated the scheme from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. Mario Castro, Miguel Castro, and Jose Luis Mendez worked at the printing and mailing businesses that sent the fraudulent mail and shared the profits from the fraudulent prize notices. The defendants and their co-conspirators ignored multiple cease and desist orders from the United States Postal Service that prohibited their mailing companies from sending fraudulent mail. The defendants responded to the cease and desist orders by changing the names of their companies and using straw owners to hide their continuing fraud. “These defendants took part in a conspiracy that preyed upon and deceived elderly consumers with repeated promises of large cash prizes,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Consumer Protection Branch and U.S. Postal Inspection Service to protect vulnerable members of our community, and to investigate and prosecute fraudsters who target seniors.” “Postal Inspectors are steadfast in our dedication to protecting the American people from prize-notice schemes and other mail fraud schemes, especially those that target seniors and their hard-earned savings” said Inspector in Charge Eric Shen of the Criminal Investigations Group of the United States Postal Inspection Service. “We work to rid the mail stream from fraudulent mass mailing solicitations and make the mail safe for all.” Four other people previously pleaded guilty to conspiracy to commit mail fraud in connection with this prize notice scheme: Patti Kern, 65, of Henderson, Nevada; Andrea Burrow, 43, of Las Vegas; Edgar Del Rio, 45, of Las Vegas; and Sean O’Connor, 54, of Las Vegas. The U.S. Postal Inspection Service investigated the case. Trial Attorneys Timothy Finley and Daniel Zytnick of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Mina Chang of the District of Nevada prosecuted the case. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch . For more information about the U.S. Attorney’s Office for the District of Nevada visit their website at www.justice.gov/usao-nv . Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov . ###


title: Kissimmee Man Sentenced To More Than 15 Years In Federal Prison For Possessing Over One Million Files Of Child Sexual Abuse Material

body_text: Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Edward Nicholas Carney (54, Kissimmee) to 15 years and 8 months in federal prison, followed by a lifetime of supervised release, for receiving and possessing child sexual abuse material. The court also ordered Carney to forfeit more than 50 electronic devices which were used to commit the offense. Carney had pleaded guilty on June 22, 2023. According to court documents, Carney shared hundreds of depictions of child sexual abuse material using a social media platform. Upon executing a search warrant on his home, law enforcement uncovered more than one million depictions of child sexual abuse material on Carney’s electronic devices. Carney had screen savers displaying child sexual abuse on his computers when law enforcement entered his residence. Upon his arrest, Carney asked a law enforcement officer, “You’ve never had any curiosity about something? Just to look and see?” As of the date of Carney’s sentencing hearing, more than 2 terabytes of child sexual abuse material, including 137 known series of child sex abuse, have been located on Carney’s electronic devices. “This investigation is yet another example of the dedication and determination of the FBI and its law enforcement partners in unmasking child predators and keeping our children safe,” said FBI Tampa Division Special Agent in Charge David Walker. “The detectives at the Osceola County Sheriff’s Office who dedicate hundreds of hours investigating monsters like Edward N. Carney are the true heroes. The partnerships we develop with organizations like the FBI is a great way of demonstrating to the community that we can do remarkable things together as one”, said Osceola Sheriff Marcos Lopez. This case was investigated by the Federal Bureau of Investigation, with assistance from the Osceola County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones. This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Long Island Man Sentenced to More Than 17 Years in Prison for Distributing Child Pornography in Cyber-Bullying Case

component: USAO - New York, Eastern

body_text: Earlier today, at the federal courthouse in Central Islip, Lorenzo Arana was sentenced by United States District Judge Gary R. Brown to 210 months in prison for distribution of child pornography in connection with his circulation on social media of sexually explicit videos of a 12-year-old girl. Arana pleaded guilty to the charge in November 2022. Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the sentencing. “Today’s sentence brings justice to a vulnerable young girl and many others like her throughout the country who were terrorized and harmed by the defendant’s weaponization of social media to target them for undeserved cruelty, vulgarity, and abuse,” stated United States Attorney Peace. “It will always be a priority of this Office to protect children and hold online predators accountable for their actions. My message to parents and caregivers is please talk to your children about the dangers of communicating online with strangers who may exploit them and to seek help from a trusted adult if they are being threatened.” “It is particularly evil for a person to prey upon young people and exploit their innocence, but to do so to the point where a victim sees no reason to live is beyond reprehensible,” stated HSI New York Special Agent-in-Charge Arvelo. “The defendant, Lorenzo Arana, got what he deserved today for his actions. There is no place in our society for such heinous behavior, and HSI New York is committed to protecting our children in every way possible.” Arana, who also used the online alias “Lorenzo Blake,” has a lengthy and well-documented history of using social media—where he amassed thousands of followers, many of whom were minors—to target underage girls for harassment and abuse. Arana leveraged his large following across social media platforms, including Facebook, Instagram, Tik Tok, Snapchat and YouTube, to bully, harass and exploit underage girls, including through blackmail with sexually explicit material he solicited from them, threatening to publicly distribute the material—along with other sensitive information, such as the victims’ cellphone numbers—for a range of conduct Arana deemed unacceptable, from refusing to send additional pornographic materials to simply declining his phone calls. Arana’s conviction in this case related specifically to his online harassment and abuse in September 2020 of a 12-year-old described in the indictment as Jane Doe #2. After soliciting sexually explicit material from “Jane Doe #2,” Arana intentionally distributed those videos to her friends and classmates on social media (including other minors), causing Jane Doe #2 to attempt suicide. Arana posted about his conduct on social media, acknowledging that he distributed the compromising material to “expose” Jane Doe #2 for refusing to respond to his calls. Law enforcement recovered a text message on Jane Doe #2’s cellphone, in which Arana stated “kill ur . . . self.” Upon learning that Jane Doe #2 was contemplating suicide, Arana responded, “I don’t care . . . she deserves it.” Local police in another state received an emergency call, requesting a welfare check of Jane Doe #2. Responding officers found Jane Doe #1 unconscious in her bed, along with loose pills, two pill bottles, a firearm, and a suicide note. The victim survived. This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution. The Defendant : LORENZO ARANA (also known as “Lorenzo Blake”) Age: 22 Island Park, New York E.D.N.Y. Docket No. 21-CR-19 (GRB)


title: New Orleans Man Found Guilty of Hobbs Act  Robberies and Weapons Violations

component: Federal Bureau of Investigation (FBI)

body_text: NEW ORLEANS, LA – United States Attorney Duane A. Evans announced today that MARVIN LEGENDRE , age 40, of New Orleans, was found guilty as charged on September 13, 2023 after a three-day jury trial before U.S. District Judge Carl J. Barbier. The jury found LEGENDRE guilty as charged as to all five counts in the indictment. The indictment charged LEGENDRE, in Counts 1 and 3, with Hobbs Act robberies, in violation of Title 18, United States Code, Section 1951(a). Counts 2 and 4 charged LEGENDRE with using a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1). Count 5 charged LEGENDRE with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). The FBI’s New Orleans Violent Crime Task Force worked in conjunction with the New Orleans Police Department and the St. Bernard Parish Sheriff’s Office to investigate several Hobbs Act Robberies linked to LEGENDRE . As charged in the indictment, on March 7, 2021, LEGENDRE committed an armed robbery at a Cricket Wireless in Chalmette, LA. and on March 10, 2021, LEGENDRE committed an armed robbery at a Boost Mobile in New Orleans, LA. During the investigation, detectives and agents used both physical and video surveillance to track a distinctive vehicle that LEGENDRE , was using to travel to and from the robberies. Agents then located LEGENDRE ’s residence on N. I-10 Service Rd., executed a search warrant, and arrested LEGENDRE . The search yielded the clothes LEGENDRE wore during the robberies as well as firearms. Upon further investigation, agents confirmed phone records that placed LEGENDRE at the respective scenes as well as incriminating videos, pictures, and texts sent from LEGENDRE’s phone. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation, New Orleans Police Department and the St. Bernard Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Inga Petrovich and Mike Trummel of the Violent Crime Unit.


title: Chief Engineer Sentenced to More Than a Year in Prison for Obstruction of Justice and Oil Dumping Offenses

component: Energy and Natural Resources Division

body_text: Chief engineer Denys Korotkiy of the vessel Donald was sentenced on Sept. 15 to serve twelve months and a day in prison after being convicted of conspiracy to obstruct justice, obstruction of justice and failure to maintain an accurate oil record book. U.S. District Court Judge Todd W. Robinson for the Southern District of California sentenced Korotkiy. Trial evidence showed that oily bilge water – typically containing oil contamination from cleaning and operating a vessel’s machinery – was illegally dumped from the Donald , without being legally recorded, directly into the ocean through the vessel’s sewage tank and not properly processed through required pollution prevention equipment. Korotkiy made false and fictitious entries in the oil record book claiming oily bilge had been transferred from the engine room bilge wells to the bilge holding tank. He also conspired with others to obstruct the U.S. Coast Guard from inspecting and investigating the mishandling of oily bilge water on the Donald . Vessel operating company Interunity Management (Deutschland) GMBH previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water and was ordered to pay a total of $1.25 million, including more than $312,000 to benefit marine and coastal natural resources in or near the Tijuana River National Estuarine Research Reserve. Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Andrew R. Haden for the Southern District of California made the announcement. The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service investigated the case. Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division's Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.


title: Three Southern Idaho Drug Traffickers Sentenced to Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: BOISE – U.S. Attorney for the District of Idaho Josh Hurwit announced the results of three separate drug trafficking cases in Southern Idaho today involving fentanyl, methamphetamine, and firearms. “In each of these three cases, the defendant chose to distribute significant quantities of dangerous drugs in the Treasure Valley. As a result, each defendant is now heading to federal prison for a significant period of time,” said U.S. Attorney Hurwit. “Anyone else thinking of dealing drugs like fentanyl or methamphetamine in Idaho should think twice because, along with the DEA and our local law enforcement partners, we will spare no effort to hold you accountable and keep Idahoans safe.” On September 14, 2023, Chief U.S. District Judge David C. Nye sentenced Bradley Don Oakes, 39, of Nampa, to 188 months in federal prison followed by five years of supervised release and a $1,000 fine. According to court records, Oakes sold a combined 139.9 grams of methamphetamine to law enforcement on two occasions in late 2022. On January 3, 2023, Oakes was pulled over on Interstate 84 for a traffic violation and found to be in possession of a .38 special revolver, a stolen 9mm semi-automatic pistol, 223.6 grams of methamphetamine, 2,315 grams of marijuana, 4 grams of psilocybin mushrooms, 14 grams of hashish, and six tabs of LSD. Oakes was deemed to be a career offender under the U.S. Sentencing Guidelines due to two prior felony convictions for crimes of violence. In 2004, Oakes was convicted in California for assault with a firearm on a person. In 2013, also in California, Oakes was convicted of assault with a deadly weapon upon a peace officer. Additionally, Oakes was previously convicted of attempted possession of a controlled substance, possession of a stolen vehicle, violation of a domestic violence protection order, and possession of methamphetamine. At the time of his current federal offense, he was on felony probation out of Canyon County. Oakes pleaded guilty to the charges on June 14, 2023. U.S. Attorney Hurwit commended the cooperative efforts of the Drug Enforcement Administration, the Boise Police Department, the Nampa Police Department, and the Idaho State Police, which led to the charges in the Oakes case. Assistant U.S. Attorney Christian Nafzger prosecuted this case. In a separate case, Jason Lee Elsberry, 40, of Caldwell, was sentenced by U.S. District Judge Amanda K. Brailsford to six and a half years in federal prison to be followed by four years of supervised release for the possession with intent to distribute fentanyl. Elsberry pleaded guilty to the charge on May 23, 2023. According to court records, on March 8, 2022, law enforcement officers responded to a car fire in Boise. When officers arrived on scene, they conducted an ID verification and discovered Elsberry had two outstanding arrest warrants. While placing Elsberry in handcuffs, he dropped a small ziploc bag that officers believed, based on their training and experience, to be consistent with a controlled substance. A subsequent field test identified the substance as fentanyl and a search of Elsberry’s vehicle uncovered approximately 3,000 fentanyl pills, in the center console. Elsberry admitted that he possessed those pills with the intent to distribute them to other persons. He also admitted that he sold between one and five boats a day (a boat is a street term for 1,000 fentanyl pills), that he received approximately 10,000 pills per week and about a kilogram of fentanyl powder every two weeks. U.S. Attorney Hurwit commended the investigation by the Boise Police Department, which led to the charges in the Elsberry case. Assistant U.S. Attorney David Morse prosecuted this case. In another case, Eric Moore, 40, of Boise, was sentenced by Judge Brailsford to 41 months in federal prison to be followed by three years of supervised release for the possession with intent to distribute fentanyl. Moore pleaded guilty to the charge on March 31, 2023 According to court records, between April and June 2022, Moore distributed fentanyl and methamphetamine to an undercover officer in the Treasure Valley on five separate occasions. When Moore was arrested for these offenses, he possessed 60 grams of fentanyl pills. U.S. Attorney Hurwit credited the cooperative efforts of Drug Enforcement Administration, Boise Police Department, and the Boise Area Narcotics Drugs Interdiction Taskforce, which led to the charges in the Moore case. Assistant U.S. Attorney Erin Blackadar prosecuted the case. ###


title: Hardin County Man Sentenced for Child Pornography Violations

body_text: BEAUMONT, Texas – A Silsbee man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. Michael Joseph Fontenot, 51, pleaded guilty to possessing child pornography and was sentenced to 78 months in federal prison today by U.S. District Judge Marcia A. Crone. According to public information, an investigation by the Denver Innocent Images Task Force into individuals viewing and downloading child pornography through a social media application led to Fontenot in Hardin County, Texas. A search warrant was executed by federal law enforcement at Fontenot’s residence and several electronic devices were seized, including a cell phone, tablet, flash drives and a laptop. A forensic review of the items revealed over 600 images of child pornography. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove. ###


title: Sharon Resident Convicted of Drug Trafficking and Firearm Crimes

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, PA – Raymond Briskey was convicted of committing cocaine and crack trafficking and firearm crimes, United States Attorney Eric G. Olshan announced today. Briskey, age 38, of Sharon, Pennsylvania, pled guilty before United States District Judge Joy Flowers Conti. He pled guilty to possessing with intent to distribute cocaine and cocaine base on October 21, 2020, and to possessing a firearm in furtherance of a drug trafficking crime on that date. Judge Conti scheduled sentencing to occur on April 18, 2024, at 11:00 a.m. Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States. The Mercer County Drug Task Force, the Pennsylvania Office of Attorney General, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the return of the Indictment in this 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 of Justice 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: Two Leaders of KC Street Gang Sentenced for Drug-Trafficking, Drive-By Shooting, Illegal Firearms

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – Two Kansas City, Mo., men who led 246, a violent street gang, were sentenced in federal court today for their roles in a drug-trafficking conspiracy and other violent criminal behavior that included illegal firearms and a drive-by shooting outside a daycare center where children were present. Ladele D. Smith, also known as “Dellio” and “Dog,” 36, and Roy Franklin, Jr., 33, were sentenced in separate appearances before U.S. District Judge Greg Kays. Smith was sentenced to 35 years in federal prison without parole. Franklin was sentenced to 30 years in federal prison without parole. On Sept. 15, 2022, Smith and Franklin were found guilty at trial of participating in a conspiracy to distribute heroin, cocaine, oxycodone, and marijuana from Jan. 1, 2011, to Oct. 1, 2019. Smith was also convicted of 15 additional counts that charged him with various drug-trafficking and firearms crimes, including a drive-by shooting and discharging a firearm during a crime of violence. Franklin was also convicted of nine additional counts that charged him with various drug-trafficking and firearms crimes, including the drive-by shooting and discharging a firearm during a crime of violence. Co-defendants David J. Duncan, IV, also known as “Deej” or “DJ,” 34, and Gary O. Toombs, 43, both of Kansas City, Mo., also were convicted during the same trial and are scheduled to be sentenced on Sept. 26, 2023. The investigation into the 246 street gang, operating in the Kansas City metropolitan area, began in June 2017. The gang is an alliance of gang members from the 24th, 43rd, and 68th streets of Kansas City, Mo. Smith was identified as a leader of the gang, and Franklin, Duncan and Toombs as members of the gang. Smith and Duncan are local rap artists who often posted to social media platforms, such as YouTube, with references to the 246 gang. In some of the videos, Smith and others show firearms and large amounts of cash. The social media posts also portrayed Smith and others wearing expensive jewelry, watches, hats, and clothing that depicted 246 gang affiliation. Smith only made about $300 from his music, according to court documents, but he spent about $54,000 at Halls Department Store between 2017 and 2019, and spent more than $27,000 on rental cars from Enterprise during that time. Those financial records don’t include the money spent on other luxury items (such as clothes, shoes, and accessories) seized by law enforcement from Smith’s residence. Members of the 246 gang used a residence in the 4400 block of Kensington, which is within 1,000 feet of George Washington Carver Dual Language School, a public elementary school, for gang and drug-trafficking business. No one utilized the house as a primary or permanent residence. On Oct. 2, 2019, law enforcement officers executed a search warrant at the house and seized heroin as well as two assault rifles and a stolen vehicle that had been used in a drive-by shooting the previous month. Officers also found a Glock 9mm semi-automatic pistol and a Century Arms International 7.62x39mm pistol under the couch in the living room and a Glock .40-caliber semi-automatic pistol on the kitchen cabinet. Smith was arrested at his apartment on Oct 2, 2019. Officers searched his residence and found codeine, $31,601 in cash, and jewelry valued at over $40,000. Duncan was also arrested at his apartment on Oct. 2, 2019. Officers searched his residence and found a Zastava 7.62 x 39mm rifle, a Norinco 7.62 x 39mm rifle, a Glock 9mm semi-automatic pistol, two loaded rifle magazines, and a loaded handgun magazine under the bed in a bedroom. Officers found $7,100 in cash and four bags of pills that contained oxycodone in the living room. Smith, Franklin and Toombs also were found guilty at trial of participating in a conspiracy to possess firearms in furtherance of a drug-trafficking crime. In addition to the two conspiracies, Smith was found guilty of one count of drive-by shooting, one count of discharging a firearm in furtherance of a crime of violence, one count of maintaining a drug-involved premises, one count of distributing marijuana, one count of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School), four counts of distributing heroin, and four counts of distributing heroin near a school (within 1,000 feet of George Washington Carver Dual Language School). In addition to the two conspiracies, Franklin was found guilty of one count of drive-by shooting, one count of discharging a firearm in furtherance of a crime of violence, one count of maintaining a drug-involved premises, two counts of distributing marijuana and two counts of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School). Duncan also was found guilty of possessing oxycodone the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and five counts of money laundering related to the purchases of money orders with drug-trafficking proceeds. Toombs also was found guilty of maintaining a residence for the purpose of manufacturing, distributing, and using controlled substances. Fourteen co-defendants in this case have pleaded guilty and been sentenced. This case is being prosecuted by Assistant U.S. Attorneys Ashleigh Ragner, Mary Kate Butterfield and Ben Hurst. It was investigated by the FBI, the Kansas City, Mo., Police Department, IRS-Criminal Investigation, and the Missouri State Highway Patrol. KC Metro Strike Force This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.


title: Son of Joaquin Guzman Loera aka “El Chapo” Arraigned on Federal Criminal Charges Following his Extradition from Mexico to the United States for International Drug Trafficking

component: Office of the Attorney General

body_text: Ovidio Guzman Lopez, 33, of Culiacan, Mexico, was arraigned in federal court in Chicago today after his extradition from Mexico to the United States on Sept. 15. In January, Guzman Lopez was arrested in Mexico pursuant to a U.S. request for his provisional arrest with a view toward extradition. Guzman Lopez, aka El Raton and Raton Nuevo, is charged in the Northern District of Illinois with five counts in a nine-count 12th superseding indictment alleging that from around May 2008 and continuing to at least Oct. 21, 2021, he engaged in a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges. Guzman Lopez is charged with conspiring to distribute cocaine, heroin, methamphetamine, and marijuana from Mexico and elsewhere for importation into the United States. According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), based in Washington, D.C., the Northern District of Illinois, the Southern District of California, and their law enforcement partners. Under the terms of the U.S.-Mexico extradition treaty, the United States had up to 60 days to present a fully supported request, one in compliance with the terms of the treaty. The United States submitted that request in February 2023. A Mexican court reviewed the U.S. request and last month favorably recommended his extradition. The Foreign Ministry reviewed the decision and similarly concluded that Guzman Lopez should be extradited to the United States. Guzman Lopez was subsequently extradited to the United States on Sept. 15. He was arraigned on the charges earlier today before U.S. District Judge Sharon Johnson Coleman of the U.S. District Court for the Northern District of Illinois and pleaded not guilty. He waived his right to a detention hearing and was ordered to remain detained without bond. Guzman Lopez is one of the sons of Joaquin Guzman Loera, aka El Chapo, who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel. Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, Guzman Lopez and his three brothers, Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Joaquin Guzman Lopez, aka “the Chapitos,” who are also charged in the indictment, allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel. Guzman Lopez was also indicted in the Southern District of New York on charges of continuing criminal enterprise, fentanyl importation conspiracy, fentanyl distribution conspiracy, possession of machineguns and destructive devices, conspiracy to possess machineguns and destructive devices, and conspiracy to commit money laundering. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Acting U.S. Attorney Andrew R. Haden for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI), and U.S. Drug Enforcement Administration (DEA) Administrator Anne Milgram made the announcement. This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies. The FBI Washington, San Diego, and El Paso Field Offices, HSI Nogales Office, DEA’s Chicago and San Diego Divisions, and IRS Criminal Investigation’s Chicago Office investigated the case. The Justice Department’s Office of International Affairs handled the extradition, in collaboration with the U.S. Marshals Service. The Office of Enforcement Operations also provided significant assistance in the case. The Justice Department thanks the Government of Mexico, including the Mexican Foreign Ministry and the Mexican Attorney General’s Office. Earlier today, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Attorney General Alejandro Gertz Manero to express his gratitude to Attorney General Gertz and the Government of Mexico for successfully extraditing Guzman Lopez. Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Pharmacy Operators and Pharmacist Charged with $33 Million Health Care Fraud, Wire Fraud, and Kickback Conspiracy

body_text: NEWARK, N.J. – Two pharmacy executives and a pharmacist were arraigned today on charges of defrauding Medicare and TRICARE by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced. The pharmacy executives are also charged with paying and conspiring to pay illegal kickbacks. William B. Welwart 69, of Staten Island, New York; Ethan B. Welwart, 35, of Bolivar, New York; and Gary Kaczka, 62, of Saddle Brook, New Jersey, are each charged in a 22-count indictment with conspiracy to commit health care fraud and wire fraud, and health care fraud. William and Ethan Welwart are additionally charged with wire fraud, conspiracy to violate the federal anti-kickback statute, and payment of illegal kickbacks. The defendants appeared today before U.S. District Judge Esther Salas and were each released on $250,000 bond. According to the indictment: From January 2017 to December 2020, the defendants operated pharmacies, including Apogee Bio-Pharm LLC in Edison, New Jersey. William B. Welwart was the CEO and owner of Apogee. Ethan B. Welwart was director of operations at Apogee and the purported owner of additional pharmacies used to perpetuate the scheme. Kaczka was a pharmacist-in-charge at Apogee. The defendants and others agreed to engage in a scheme to defraud insurance payors, including Medicare and TRICARE, by working with marketing companies to generate medically unnecessary prescriptions through a telemarketing and telemedicine scheme. The Welwarts and others also agreed to pay kickbacks to marketing companies in return for the marketing companies referring prescriptions for expensive medications to the pharmacies. The marketing companies identified Medicare and TRICARE beneficiaries to target for expensive drugs and contacted the beneficiaries by telephone to pressure them to agree to try expensive medications, such as pain creams, scar creams, eczema creams, and migraine medication. The marketing companies then transmitted recordings of telephone calls with the beneficiaries, together with pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements, to telemedicine companies. The marketers paid the telemedicine companies kickbacks for every beneficiary referred for a prescription, and the telemedicine companies paid doctors to approve the prescriptions. The marketing companies then directed the prescriptions to pharmacies, including Apogee, with which they had kickback arrangements. The pharmacies filled the prescriptions and sought reimbursement from federal health care benefit programs, including Medicare and TRICARE. The pharmacies, including Apogee, then paid a portion of each reimbursement to the marketing companies as a kickback. The defendants and their conspirators caused a loss to Medicare and other federal health care benefit programs of over $33 million. The health care fraud and wire fraud conspiracy charges carries a maximum potential penalty of 20 years in prison; the health care fraud charges carry a maximum potential penalty of 10 years in prison; the wire fraud charges carry a maximum potential penalty of 20 years in prison; the charge of conspiracy to violate the Anti-Kickback Statute carries a maximum potential penalty of five years in prison; and the charges of payment of illegal kickbacks are punishable by 10 years in prison. All of the counts are also punishable by a fine of $250,000, or twice the gain or loss from the offense, whichever is greatest. Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the indictment. The government is represented by Assistant U.S. Attorney Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark. The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. apogee.indictment.pdf


title: Middleton Man Sentenced to 32 Months for Illegal Gun Possesison

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Johnluke Spears, 32, Middleton, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 32 months in prison for being a felon in possession of a firearm. Spears pleaded guilty to this charge on April 12, 2023. On November 27, 2021, there was a shooting in the parking lot of Monkeyshines Bar in Fitchburg, Wisconsin. One person was shot, and surveillance video showed the injured person and his friend involved in a confrontation with another group. The injured person exchanged gunfire with at least one person in the other group. During the subsequent investigation, officers determined that Spears had been standing next to one of the shooters. In December 2021, detectives executed a search warrant at Spears’ residence and found a loaded Glock 22 .40 caliber handgun, which is consistent with casings found at the shooting scene. Spears’ DNA was found on that handgun. Spears is a convicted felon and prohibited from possessing firearms. At sentencing, Judge Peterson concluded that Spears is a “hard core gang guy” and, while he did not fire the shots at Monkeyshines, he hung around with friends who were involved in gun violence. Judge Peterson noted that the Glock .40 caliber handgun found in Spears’ apartment had a switch (which converted it to a machine gun) and drum magazine capable of holding 40 to 50 rounds making it very dangerous. Finally, Judge Peterson commented that Spears was on supervision for a prior weapons offense out of Illinois. Spears’ supervision on the Illinois case was revoked and Judge Peterson ordered the 32-month federal sentence to run concurrently with the 10 months remaining on Spears’ sentence in that Illinois case. The federal sentence imposed today will be followed by three years of supervised release. The charge against Spears was the result of an investigation conducted by the Fitchburg Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan prosecuted this case. This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.


title: Jefferson Parish Man Indicted for Violations of the  Federal Gun Control Act

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

body_text: NEW ORLEANS, LA – DAMION SMITH , age 22, of Metairie, Louisiana, was indicted on September 15, 2023, for violations of the Federal Gun Control Act. Specifically, he is charged with one count of being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8) and one count of possessing machine guns, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2), announced United States Attorney Duane A. Evans. According to court documents, SMITH was previously convicted of felony offenses in Jefferson Parish. Due to his criminal history, he is prohibited from having a firearm. On June 29, 2023, SMITH was found in possession of two (2) firearms, both of which were equipped with a Glock auto-sear. The auto-sear devices converted the semi-automatic firearms into fully-automatic machine guns. If convicted of possession of a firearm by a convicted felon, SMITH faces a maximum of fifteen (15) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. If convicted of possession of machine guns, SMITH faces a maximum of ten (10) years imprisonment, a fine of up to $250,000, and up to three (3) years of supervised release. He also faces payment of a $100 mandatory special assessment fee on each count. U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 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. U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives in investigating this matter. The case is being prosecuted by Assistant U.S. Attorney Greg Kennedy of the Violent Crime Unit.


title: Connecticut Man Admits $2.19 Million Fraud Scheme Involving Kickbacks from Two French Distilleries

body_text: NEWARK, N.J. – A Connecticut man today admitted orchestrating a $2.19 million scheme to defraud an alcohol company and its owner by causing them to overpay for champagne and cognac and collecting kickbacks based on the inflated prices, U.S. Attorney Philip R. Sellinger announced. Mitchell E. Green, 44, of Westport, Connecticut, pleaded guilty today before U.S. District Court Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud. “Though he was supposed to negotiate the best deal possible for his employer, Green set up secret side deals to inflate what his employer paid so that he could reap millions of dollars in kickbacks. Companies must be able to rely on the integrity of their agents to conduct business. When employees violate that trust and engage in fraud -- like the defendant did here -- this Office and our law enforcement partners are prepared to hold them accountable.” U.S. Attorney Philip R. Sellinger “As Green has discovered, there’s no such thing as easy money,” FBI-Newark Special Agent in Charge James E. Dennehy said. “The FBI works tirelessly to ensure that the consequences for this type of fraud far outweigh the initial payout.” According to documents filed in the case and statements made in court: From June 2017 through February 2020, Green worked for a Hoboken, New Jersey-based liquor company owned by an internationally recognized music artist, producer, and entrepreneur. Green secretly negotiated side agreements with two French distilleries to pay him kickbacks through his company, Q Branch LLC, for each bottle of champagne and cognac that Green’s employer purchased from the distilleries. Green caused his employer to unknowingly pay the cost of his kickbacks by hiding it in the per-bottle price that the distilleries charged for the champagne and cognac. Based on those inflated prices, Green’s employer paid $14.8 million for the champagne and cognac, and Green collected $2.19 million in hidden kickbacks from the French champagne and cognac distilleries. The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense, whichever is greatest. Sentencing is scheduled for Jan. 23, 2024. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the today’s guilty plea. The government is represented by Assistant U.S. Attorneys Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit and Ari B. Fontecchio of the Special Prosecutions Division.. green.information.pdf


title: Man Sentenced for Sexual Exploitation of a Child

component: Criminal Division

body_text: A Pennsylvania man was sentenced today to 25 years in prison for manufacturing and attempting to manufacture child sexual abuse material (CSAM). According to court documents, David Dunn, 57, of Red Hill, used the mobile applications Snapchat and Likee to coerce and entice a 10-year-old female to engage in sexually explicit conduct. Dunn told the victim he was 11 years old and sent the minor female CSAM depicting minor boys, which he had downloaded from the Dark Web. Dunn captured the CSAM he coerced the victim to create and sent it to another individual via Telegram. Two cell phones seized from Dunn’s home contained thousands of images and videos of CSAM. Dunn pleaded guilty to one count of sexual exploitation of children. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania, and Acting Special Agent in Charge Richard Langham of the FBI Philadelphia Field Office made the announcement. The FBI Philadelphia Field Office investigated the case. Trial Attorney Kaylynn N. Foulon of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Kevin Jayne for the Eastern District of Pennsylvania prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Honduran National Indicted  for Illegal Re-Entry

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – WILLIAM LEONELL LOPEZ , age 36, was indicted on September 15, 2023, for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans. According to the indictment, WILLIAM LEONELL LOPEZ , ("LOPEZ") reentered the United States after being previously deported on June 19, 2009. If convicted, LOPEZ faces a maximum term of imprisonment of two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one year, and a mandatory $100 special assessment fee. U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.


title: Billings man admits obstructing justice by witness retaliation

body_text: GREAT FALLS — A Billings man accused of harassing and threatening witnesses in Browning, on the Blackfeet Indian Reservation, in an ongoing federal investigation admitted to obstruction charges today, U.S. Attorney Jesse Laslovich said. Jesse Ray Blackman, 41, pleaded guilty to two counts of obstructing justice by retaliating against a witness as charged in a superseding indictment. Blackman faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Jan. 31, 2024. Blackman was detained pending further proceedings. In court documents, the government alleged that beginning in October 2022, Blackman maintained an ongoing campaign of harassment against his ex-girlfriend, identified as Jane Doe, and her boyfriend, identified as John Doe, in Browning. Using the Messenger feature of Facebook, Blackman sent messages from multiple Facebook accounts to Jane Doe, threatening to harm both her and John Doe. Blackman also called Jane Doe’s place of employment multiple times a day and threatened her. In December 2022, Jane Doe obtained a restraining order against Blackman from the Blackfeet Tribal Court. The order enjoined the parties from having verbal and physical contact, but the threats continued. In March 2023, an FBI agent interviewed Blackman about his conduct. Blackman admitted to using Facebook to send messages to Jane Doe and that the messages could be viewed as threats. The agent advised Blackman that Jane Doe and John Doe were witnesses in an ongoing federal investigation, and that threats against them as witnesses could be criminal. The agents advised Blackman to cease all contact with them. Blackman contacted both Jane Doe and John Doe in April with the intent to retaliate against them for information they gave to law enforcement relating to the threats. In a phone call to Jane Doe on April 4, Blackman said, “I can’t believe what you did to me! You’re going to pay for it bitch!” Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The FBI and Blackfeet Law Enforcement Services, with assistance from the Yellowstone County Sheriff’s Office, conducted the investigation. XXX


title: Portland Man Sentenced to 25 Years in Federal Prison for Drug and Gun Crimes

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Portland man whose 20-year federal prison term was cut short by a commutation was sentenced to an additional 25 years in prison today for dealing counterfeit oxycodone pills containing fentanyl analogue, money laundering, and unlawfully possessing firearms, all while on supervised release from his last federal conviction. Dontae Lamont Hunt, 42, was sentenced to 300 months in federal prison and five years’ supervised release. Hunt was also ordered to pay $60,000 to satisfy a forfeiture money judgment. In September 2005, Hunt was sentenced to 240 months in federal prison and eight years’ supervised release after pleading guilty to possessing with intent to distribute crack cocaine and carrying a firearm during and in relation to a drug trafficking crime. In October 2016, Hunt was released from prison early, to a halfway house, after receiving a sentence commutation . According to court documents and trial testimony, only months after receiving his commutation, Hunt began distributing counterfeit oxycodone pills laced with carfentanil, a potent controlled substance sometimes used as an elephant tranquilizer. In December 2017, Hunt was shot multiple times outside an apartment building in Eugene, Oregon. A surveillance video of the shooting showed Hunt walking in a nearby parking lot while talking on a cellphone and carrying a satchel. Immediately after the shooting, Hunt’s girlfriend came to his aid, retrieved the satchel, and placed it in a vehicle used to drop Hunt off at a Eugene hospital. After departing the hospital, the vehicle was stopped by Eugene police officers for a traffic violation and searched. Officers recovered a bloodstained satchel containing two loaded firearms, both of which were later determined to have Hunt’s DNA on them. Back at the shooting scene, officers found a large amount of blood and an iPhone near where Hunt was shot. On the phone, investigators found evidence of Hunt’s drug trafficking, including text messages and photos of what appeared to be counterfeit Oxycodone pills. Further investigation revealed that Hunt distributed the counterfeit pills in and around Portland and that his drug trafficking was connected to a fatal drug overdose in June 2018. In September 2018, investigators searched three properties linked to Hunt, including his residence in Northeast Portland. At his residence, Hunt refused commands to surrender and remained alone upstairs for approximately 15 minutes. After he was taken into custody, Portland Police Bureau officers found blue pills adjacent to an upstairs toilet, consistent with and indicative of Hunt disposing of evidence. Agents also located several dozen additional blue pills concealed in a jar of baby ointment, three firearms, and a gun box labeled with the make, model, and serial number of one of the firearms found in the bloodstained satchel in Eugene. Lab reports later confirmed the pills seized contained fentanyl analogue. Cellphones seized from Hunt’s residence contained additional evidence of his drug trafficking activities. Agents also recovered more than $40,00 in cash and seized multiple vehicles. In October 2022, a federal jury found Hunt guilty on multiple gun, drug, and money laundering charges. This case was investigated jointly by the Portland Police Bureau, IRS-Criminal Investigation, and FBI with assistance from U.S. Drug Enforcement Administration and the Eugene Police Department. It was prosecuted by Peter Sax, Gary Sussman, and Suzanne Miles, Assistant U.S. Attorneys for the District of Oregon. Forfeiture litigation was handled by Assistant U.S. Attorney Julia Jarrett. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.