title: Suburban Chicago Man Indicted for COVID-19 Testing Fraud Scheme

component: Federal Bureau of Investigation (FBI)

body_text: CHICAGO — A suburban Chicago man has been indicted by a federal grand jury on ten counts of wire fraud and one count of theft of government funds for purportedly submitting fraudulent claims for reimbursement on tests which were never performed, were performed improperly, or were already paid for by the client. ZISHAN ALVI, 44, of Inverness co-owned and operated Laboratory A, a laboratory located in Chicago, Illinois. Laboratory A purported to perform testing to detect for SARS-CoV-2 and offered two types of COVID-19 testing: PCR tests and antigen tests that delivered results within approximately 15 minutes (“rapid tests”). Laboratory A also offered a service where individuals and companies could pay a fee to receive COVID-19 PCR test results in an expedited fashion. The Health Resources and Services Administration (“HRSA”) was an agency of the U.S. Department of Health and Human Services that oversaw and administered the funds appropriated through federal legislation to cover the costs of COVID-19 testing for individuals without health insurance coverage (“the HRSA Uninsured Program”). As indicated in the indictment, Laboratory A enrolled in the HRSA Uninsured Program in or around December 2020. From approximately February 2021 through February 2022, Alvi along with others, are alleged to have knowingly devised, intended to devise, and participated in a scheme to defraud the government by causing Laboratory A to submit fraudulent claims and delivering inaccurate and unreliable test results to the public. The fraudulent claims sought reimbursement for purported tests when Alvi knew that (a) Laboratory A had not performed a test for COVID-19; (b) Laboratory A had modified a test for COVID-19 such that the results were unreliable; and (c) Laboratory A already had collected payment from the individuals who purportedly had been tested. The indictment further alleges that Alvi caused Laboratory A to provide negative test results to be released to individuals who had provided a specimen for testing, but for whom a COVID-19 test had not been performed. It is alleged that Alvi directed Laboratory A employees to falsely indicate in Laboratory A’s records that COVID-19 tests had been performed for these individuals, when Alvi knew that the test specimens had been discarded at his own direction and had not been tested. It is further part of the scheme that, in order to conceal the fact that tests were not performed, Laboratory A did not release positive COVID-19 results on specimens where tests were eventually performed, because a purported negative result had already been released. It was further part of the scheme that, to reduce costs and increase Laboratory A’s profits, Alvi directed Laboratory A employees to alter Laboratory A’s PCR testing method by using less of the materials necessary to process the PCR test, including the reagents, knowing that this made the test results unreliable. During its operation, Laboratory A obtained over $83 million from the HRSA Uninsured Program as payment for COVID-19 tests purportedly performed by Laboratory A. Alvi is alleged to have transferred some of the fraudulently obtained HRSA funds from Laboratory A’s accounts to a personal account, and to have used the funds for personal expenditures, including for vehicle purchases and investments in stocks and cryptocurrency. The indictment seeks forfeiture from the defendant of at least $6.8 million in alleged ill-gotten gains, in addition to five luxury vehicles and funds from other trade and investment accounts. The indictment is announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Mario Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. Substantial assistance was provided by the Illinois Attorney General’s Office. The government is represented by Assistant U.S. Attorneys Jared Hasten, Misty Wright, and Trial Attorney Claire Sobczak from the Department of Justice’s Health Care Fraud Unit. “The charges in this case allege that the defendant disregarded public health concerns in favor of personal financial gain. Doing so by compromising taxpayer-funded programs intended to fight the spread of coronavirus was particularly reprehensible” said Acting U.S. Attorney Pasqual. “I commend the work of our law enforcement partners who investigated this complex fraud scheme. Our office will relentlessly continue to bring to justice those who defrauded the government’s pandemic relief initiatives.” "The defendant defrauded the American people at a time when we were most vulnerable, in the midst of a global pandemic. This indictment shows that the FBI along with our law enforcement partners is continually working to keep Americans safe and uphold the Constitution as our mission demands of us," said Special Agent in Charge Wheeler. “The defendant’s alleged conduct resulted in money unjustly obtained from Federal programs established during the COVID-19 pandemic to keep Americans safe, and also placed patients at risk through his role in the release of false COVID-19 test results,” said Special Agent-in-Charge Pinto. “Our agency is committed to working with our law enforcement partners to ensure that those who defraud our federal health care programs and place patients at risk of harm are held accountable.” “It is absolutely reprehensible that the defendant would use a public health crisis to allegedly defraud taxpayers and further put public health at risk by providing fraudulent COVID-19 test results,” Attorney General Kwame Raoul said. “I want to thank the United States Attorney for the Northern District of Illinois, the Chicago Office of the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of the Inspector General, and all of the law enforcement partners working to hold those who perpetrated this scheme accountable.” The public is reminded that an indictment contains only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, and the count of theft of government funds is punishable by up to 10 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.


title: Home Health Provider and Two Executives Agree to Pay $1 Million to Resolve Kickback and Pandemic-Relief Fraud Allegations

body_text: ALEXANDRIA, Va. – A Fairfax-based home health care company and two executives agreed to pay $1 million to resolve claims arising from an alleged kickback scheme designed to obtain referrals for home health and hospice patients. The United States alleged that from 2012 to 2021, Pro Healthcare Servicing, LLC (Pro Health), its Chief Executive Officer, Erwin Cheng, and its Chief Administrator, Gloria Jiang, both of Ashburn, paid kickbacks to employees at various assisted living facilities and skilled nursing facilities throughout northern Virginia to induce those facilities to refer patients to Pro Health for home health and hospice services. Pro Health then billed Medicare for services rendered to those patients. The United States further alleged that while Pro Health was engaged in the kickback scheme, the company fraudulently obtained pandemic-relief loans through the Small Business Administration’s Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program by falsely certifying that the company was not engaged in any illegal activity when applying for the loans. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Federal Bureau of Investigation, and the Department of Health and Human Services Office of Inspector General. The matter was prosecuted by Assistant U.S. Attorney William Hochul and former Assistant U.S. Attorney Ilene Albala. The civil claims are allegations only; there has been no admission of liability. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia .


title: Illinois Attorney Found Guilty of Embezzlement, Bankruptcy Fraud, and Tax Fraud

body_text: CHICAGO — A federal jury has found a former Illinois attorney and real estate developer guilty on two counts of embezzlement, six counts of bankruptcy fraud, and eight counts of tax fraud following a nearly four week-long trial in Chicago. Evidence at trial revealed that ROBERT KOWALSKI, 61, of Chicago was a close associate of John Gembara, the former President of Washington Federal Bank for Savings (“WFBS”), a small bank in Chicago’s Bridgeport neighborhood which was closed in December 2017 after the Office of the Comptroller of the Currency determined that the bank was insolvent and had at least $66 million in nonperforming loans. Kowalski served a key role in the embezzlement scheme, specifically diverting from the bank more than $8 million, plus property which was rightly the collateral of the bank for other loans. The embezzled funds that Kowalski received from WFBS were concealed by entering them on the bank’s records as loan disbursements. However, WFBS never required Kowalski to repay these fraudulent loans. Along with his co-conspirators, Kowalski was involved in the falsification of bank records and the recording of false financial transactions to shift real estate interests into his own name for financial benefit. After the collapse of WFBS, the Federal Deposit Insurance Corporation attempted to collect on the money and properties that Kowalski obtained as part of the embezzlement scheme. To avoid losing the assets, Kowalski filed a fraudulent bankruptcy case, in which he attempted to concealed numerous assets. To substantiate the financial claims made within his bankruptcy filings, and avoid paying taxes, Kowalski filed false corporate returns in 2014 and 2015, and false personal returns in 2015, 2016, and 2017. Kowalski failed to file returns in 2013 and 2014. Sentencing has been set for June 2, 2023 before U.S. District Court Judge Virginia M. Kendall. Kowalski could face a sentence of up to 82 years in federal prison. The verdict was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Kathy A. Enstrom, Special Agent in Charge of the Chicago Region of the FDIC’s Office of Inspector General; Machelle L. Jindra, Special Agent in Charge of the U.S. Department of Housing and Urban Development's Office of Inspector General in Chicago; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Andrea Peacock, Special Agent in Charge of the of the Department of the Treasury, Office of Inspector General; Deborah Witzburg, City of Chicago Inspector General; and Kathryn Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the U.S. Trustee Program. The government was represented by Assistant U.S. Attorneys Jeremy Daniel, Kristin Pinkston, and Brian Netols, along with Special Assistant U.S. Attorney Jeffrey Snell.


title: Miami Art Dealer Sentenced to 51 Months in Prison for Smuggling Ivory

component: USAO - Florida, Southern

body_text: MIAMI – A federal judge in Miami has sentenced Eduardo Ulises Martinez (“Martinez”), a local art dealer, to 51 months in prison for illegally smuggling sculptures containing ivory, and for obstructing justice. Ivory is a form of wildlife that comes from various mammals, including elephants, walruses, hippopotamuses, warthogs, narwals, and whales. Ivory must be declared to the United States Fish and Wildlife Service (USFWS) and made available for inspection prior to its importation and exportation from the United States. After a seven-day trial, a federal jury found Martinez guilty on 9 counts of smuggling items containing ivory in and out of the United States without declaring it or making the ivory available for inspection by the USFWS, and one count of obstruction of justice for soliciting false evidence, documents, and testimony from a witness during the ongoing investigation. Martinez purchased numerous sculptures containing ivory from auction houses located in Spain, England, Canada, and Australia, later importing the sculptures into the United States for commercial purposes using various methods of concealment. On some occasions, Martinez dismantled the sculptures into their ivory, bronze, and marble components and later shipped the individual components in different boxes to evade detection from law enforcement. Martinez also shipped the components to various addresses that were not associated with his business or his home. On other occasions, Martinez used third parties located in Spain and England to collect or receive the sculptures from auctions houses in Europe, creating the appearance that the sculptures would stay within the European Union, and thereafter directed the third parties to ship the ivory-containing sculptures to the United States. On another occasion, Martinez concealed the entry of ivory into the United States by packing the ivory components in his luggage. In every instance, Martinez, or others at Martinez’s direction, would fraudulently and falsely declare the contents of the shipping paperwork as bronze and marble, porcelain, bronze, or other false descriptions of the contents to evade inspection and declaration requirements. Once the sculptures arrived in the United States, Martinez would fix any imperfections in them prior to offering them for sale at a significant mark up. In several instances, Martinez had new ivory parts carved for the illegally imported sculptures before offering them for resale. Martinez sold sculptures containing ivory to buyers in other countries and facilitated the transportation of those sculptures, knowing that they were intended to be exported from the United States. Throughout the trial, the jury heard evidence via emails, messages, and audio files demonstrating that Martinez knew his actions were illegal, but he continued to engage in those actions for personal financial gain. After Martinez was stopped at the Miami International Airport on September 8, 2021, and was caught with ivory in his luggage, Martinez removed illegally imported ivory sculptures from his showroom and obstructed law enforcement’s investigation by approaching a witness on various occasions, asking the witness to provide false evidence and testimony. It was undisputed at trial that Martinez had never made a declaration of wildlife, including ivory, to the USFWS. In addition to the 51-month sentence, the federal district court ordered Martinez to pay a $20,000 fine, serve three years of supervised release following his prison term, and entered a criminal forfeiture order of various sculptures containing ivory. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Stephen Clark of the U.S. Fish & Wildlife Service (USFWS), Southeast Region, and acting Special Agent in Charge Michael E. Buckley, Homeland Security Investigations (HSI), Miami, announced the sentence. USFWS and HSI Miami investigated this case. Assistant United States Attorneys Marty Fulgueira Elfenbein and Lindsey Lazapoulos Friedman prosecuted the case. Assistant United States Attorney Joshua Paster is handling asset forfeiture. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov , under case number 22-cr-20137. ###


title: Ongoing Jungle Life Mafia Street Gang Prosecution Results in Multiple Guilty Pleas and Sentencings for Nine Tangipahoa Parish Residents

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

body_text: NEW ORLEANS, LOUISIANA – MICHAEL ALEXANDER, SR. , a/k/a “Monsta,” a/k/a “Jamond,” age 40, ATRELL ANDERSON, a/k/a “Trey,” a/k/a “Trel,” a/k/a “Da Boi,” age 31, TERRELL HAYNES, a/k/a “Redman,” age 44, MICHAEL ALEXANDER, JR., a/k/a “Mike Mike,” age 22 , BRANDON BAKER, age 37, LOUIS BELLS, JR., age 22, JERALD ALEXANDER , age 37, STAR ROBICHAUX, age 43, and JOSHUA PRINE, age 42, residents of Tangipahoa Parish, Louisiana, have now all pled guilty before U.S. District Judge Jay C. Zainey, announced U.S. Attorney Duane A. Evans. According to court documents, Drug Enforcement Administration (“DEA”) agents began investigating the drug trafficking activities of the Jungle Life Mafia street gang in Tangipahoa Parish, Louisiana in 2019. The investigation spanned two years which led to the seizure of drugs, drug proceeds, and guns. In total, DEA agents seized $590,602 in U.S. currency and 10 illegal guns. On March 9, 2023, ALEXANDER, SR. pled guilty to conspiracy to distribute 400 grams or more of fentanyl, 100 grams or more of heroin, and a quantity of cocaine, possession with intent to distribute fentanyl, heroin, and cocaine, possession of firearms in furtherance of drug trafficking crimes, and being a felon in possession of firearms. For the conspiracy charge, ALEXANDER, SR. faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For possession with intent to distribute heroin and fentanyl, he faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For possessing firearms in furtherance of a drug trafficking offense, ALEXANDER, SR. faces a mandatory minimum sentence of 5 years, up to life imprisonment, to run consecutive with any other sentence, a fine of up to $250,000, and up to 5 years of supervised release. If convicted of being a felon in possession of firearms, ALEXANDER, SR. faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the four (4) charges against him , ALEXANDER, SR. must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER, SR. is scheduled for June 13, 2023. On October 6, 2022, ANDERSON pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 100 grams or more of heroin. He also pled guilty to distribution of methamphetamine and use of a communication facility in furtherance of a drug trafficking crime. On March 9, 2023, ANDERSON was sentenced to 188 months imprisonment, 5 years of supervised release, and a $600 mandatory special assessment fee. On September 19, 2022, HAYNES pled guilty to conspiring to distribute 400 grams or more of fentanyl, 50 grams or more of methamphetamine, and 1 kilogram or more of heroin. He also pled guilty to distribution of methamphetamine and possessing a firearm as a convicted felon. For the conspiracy count, he faces a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. For distribution, HAYNES faces a statutory mandatory minimum sentence of 5 years, up to 40 years imprisonment, a fine of up to $5,000,000, and at least 4 years of supervised release following any term of imprisonment. For being a felon in possession of a firearm, HAYNES faces up to 10 years imprisonment, a fine of up to $250,000, and up to 3 years supervised release. For each of the three (3) charges against him , HAYNES must also pay a $100 mandatory special assessment fee. Sentencing for HAYNES is scheduled for April 18, 2023. On October 19, 2022, ALEXANDER, JR. pled guilty to conspiring to distribute quantities of heroin and methamphetamine, possession with intent to distribute heroin and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and use of a communication facility in furtherance of drug trafficking. On February 14, 2023, ALEXANDER, JR. was sentenced to 7 years imprisonment, 5 years of supervised release, and a $500 mandatory special assessment fee. On January 18, 2023, JERALD ALEXANDER pled guilty to conspiracy to distribute marijuana, possession with intent to distribute marijuana, possession of a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. For the marijuana offenses, he faces up to 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release. For possessing a firearm in furtherance of drug trafficking, ALEXANDER faces a mandatory minimum sentence of 5 years up to life imprisonment, to run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. For being a felon in possession of a firearm, he faces a maximum of ten years imprisonment, up to a $250,000 fine, and up to 3 years of supervised release. For each of the four (4) charges against him, ALEXANDER must also pay a $100 mandatory special assessment fee. Sentencing for ALEXANDER is scheduled for April 18, 2023. On August 2, 2022, BELLS pled guilty to being a felon in possession of a firearm. On October 25, 2022, BELLS was sentenced to 71 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee. On October 4, 2022, BAKER pled guilty to conspiracy to distribute quantities of heroin and methamphetamine. On February 28, 2023, he was sentenced to 27 months imprisonment, 3 years of supervised release, and a $100 mandatory special assessment fee. On September 14, 2022, ROBICHAUX pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. On October 18, 2022, PRINE pled guilty to conspiracy to distribute 400 grams or more of fentanyl and 1 kilogram or more of heroin. Both ROBICHAUX and PRINE face a statutory mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release following any term of imprisonment. Sentencing for ROBICHAUX is scheduled for April 25, 2023 and sentencing for PRINE is scheduled for June 13, 2023. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case was investigated by the federal Drug Enforcement Administration, Hammond Police Department, Tangipahoa Parish Sheriff’s Office, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, 21 st Judicial District Attorney’s Office, St. Tammany Parish District Attorney’s Office, Jefferson Parish Sheriff’s Office, and the U.S. Marshals Service. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.


title: U.S. Attorney’s Office Co-hosts Protecting Places of Worship Forum

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that the United States Attorney’s Office is co-hosting a forum on Protecting Places of Worship on March 14, 2023, at the Gateway Center at the Gibson Health Hub from 6 until 9 pm. The forum will provide faith-based leaders and other community members with strategies to protect places of worship from hate crimes and other threats of violence. Topics will include an overview of religious hate crimes and laws, tools and resources from federal and local law enforcement to assess the safety of places of worship, an overview of active shooter training and situations, and best practices for the prevention of and response to hate crimes against places of worship. “Terror and fear and hatred blossom in the dark,” said U.S. Attorney Uballez, “because in the dark, we think that we are alone. Only by shining the light do we see that we are never alone but are instead standing side-by-side facing the darkness. I’m proud to help shine the light of love on New Mexico.” The event will be facilitated by the Community Relations Service of the Department of Justice and co-hosted by the City of Albuquerque’s Office of Equity and Inclusion. DOJ’s Community Relations Service was born in the Civil Rights era and is “America’s Peacemaker,” dedicated to facilitating, mediating, training, and consulting with communities to prevent and resolve conflict arising from actual or perceived race, color, national origin, gender, gender identity, sexual orientation, religion, or disability. The City of Albuquerque’s Office of Equity and Inclusion has led the effort to bring together the Department of Justice, law enforcement agencies and community for this ground-breaking forum. The Protecting Places of Worship forum is part of United Against Hate, a nationwide Department of Justice initiative to combat unlawful acts of hate by building trust and community. The District of New Mexico was selected to participate in the second cohort of USAO’s to rollout the United Against Hate initiative. Speakers for the event will include representatives from the U.S. Attorney’s Office, the New Mexico Office of the Attorney General, the Federal Bureau of Investigation, the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the Albuquerque Police Department, and local Interfaith leaders. The forum will be held at the Gateway Center at the Gibson Health Hub located on 5400 Gibson Boulevard Southeast, Room #1, Albuquerque, New Mexico 87108. Registration is open until March 14, 2023 at 12 noon and can be accessed through Eventbrite: https://www.eventbrite.com/e/protecting-places-of-worship-forum-tickets-532056143247 . Food will be provided, and interpreters will be present. # # # 23-49


title: St. Louis Man Admits Assaulting Deputy U.S. Marshals, Selling Methamphetamine

component: Drug Enforcement Administration (DEA)

body_text: ST. LOUIS – A man from St. Louis, Missouri on Monday admitted assaulting two deputy U.S. marshals in 2021 and selling methamphetamine. Emilio Justin Sandoval, 34, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to one count of possession with the intent to distribute methamphetamine and two counts of assaulting an officer of the United States. The Drug Enforcement Administration began investigating Sandoval’s drug sales in December 2019 and learned that he was storing and selling methamphetamine by the ounce out of his home in the 4400 block of Dewey Avenue in St. Louis. Sandoval sold two ounces of methamphetamine on Oct. 20, 2020 for $1,000, which led to a consensual search of his home and the discovery of five baggies containing a total of 545 grams of methamphetamine as well as three guns and $11,234 in a safe. After Sandoval was indicted in U.S. District Court in St. Louis on Aug. 25, 2021, the U.S. Marshals were tasked with arresting him. On Nov. 10, 2021, they found him at his home. While the marshals were watching, Sandoval and his significant other ran to a vehicle and tried to escape, ramming marshals’ vehicles multiple times and injuring two of the deputy marshals. One suffered serious injuries to his left knee, left elbow and left hand. The other was struck by the open passenger door, knocked down and dragged by Sandoval’s vehicle. She suffered serious, permanent and life-threatening injuries to her head, neck and spine. As part of the plea, both sides have agreed to recommend a sentence of 27 years in federal prison. Sandoval is scheduled to be sentenced June 27. The Drug Enforcement Administration and the U.S. Marshals Service investigated this case.


title: Nebraska Woman Charged with Assaulting, Resisting, and Impeding a Federal Officer

component: USAO - South Dakota

body_text: SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Winnebago, Nebraska, woman for two counts of Assaulting, Resisting, and Impeding Federal Officers. Trista Whitewater, age 33, was indicted in November of 2022. She appeared before U.S. Magistrate Judge Veronica L. Duffy on March 10, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $200 to the Federal Crime Victims Fund. Restitution may also be ordered. The Indictment alleges that on June 8, 2022, Whitewater, who was booked at the Bureau of Indian Affairs (BIA) Yankton Sioux Correctional Facility in Wagner, South Dakota, for several tribal charges, assaulted a Lead Correctional Officer and a Correctional Officer. The charges are merely accusations and Whitewater is presumed innocent until and unless proven guilty. The investigation is being conducted by the BIA. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case. Whitewater was remanded to the custody of the U.S. Marshals Service pending trial, which has been set for May 16, 2023.


title: Rochester Man Arrested, Charged With  Multiple Child Pornography Charges

component: USAO - New York, Western

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Leonard Ortiz, Jr., 20, of Rochester, NY, was arrested and charged by criminal complaint with receipt, distribution, and possession of child pornography. The charges carry a minimum penalty of five years in prison, a maximum of 20 years and a $250,000 fine. Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, the New York State Police executed a search warrant at Ortiz’s residence after receiving a report from the National Center for Missing and Exploited Children that Ortiz traded child pornography on a social media application with other users. Multiple digital devices were seized and turned over to Homeland Security Investigations for forensic analysis. The review uncovered at least 625 images and 117 videos of child pornography on Ortiz’s cell phone, some of which depicted the rape of prepubescent children. Investigators also executed search warrants on Ortiz’s social media accounts and discovered additional child pornography that he distributed to and received from others. In addition, investigators found multiple message threads during which Ortiz and other users openly discussed child pornography and the sexual abuse of children. Ortiz made an initial appearance before U.S. Magistrate Judge Marian W. Payson and was released on conditions, including no contact with minors, unsupervised use of computers and GPS location monitoring. The criminal complaint is the result of an investigation by the New York State Police, under the direction of major Brian Ratajczak and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Troy Resident Sentenced to Prison for Role in Nationwide “Felony Lane Gang” Conspiracy

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Terrell McDonald, age 32, of Troy, New York, was sentenced today to 65 months in prison after previously pleading guilty to conspiracy to commit bank fraud and aggravated identity theft. United States Attorney Carla B. Freedman; Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (FBI); and Putnam County Sheriff Kevin J. McConville made the announcement. In previously pleading guilty, McDonald admitted that he was involved in a fraud scheme known as “Felony Lane Gang” between 2018 and 2020. McDonald and his co-conspirators traveled across the country breaking into cars, often targeting those parked by women at locations such as health and fitness centers, daycares, outdoor recreational parks, and dog parks. McDonald and other members of the conspiracy stole debit cards, credit cards, checkbooks, and photo identifications in these “smash-and-grab” vehicle thefts, and they used these stolen items to commit bank fraud by recruiting women to impersonate the smash-and-grab victims and cash checks in drive-through bank lanes. The recruited check cashers were almost always suffering from an addiction to controlled substances and were provided payment at least partially in narcotics. As part of his sentence, McDonald was ordered to pay restitution in the amount of $133,190, and to pay a forfeiture money judgment of $17,648.28. McDonald will serve a 3-year term of supervised release after completing his term of imprisonment. McDonald was one of nine men charged in a 13-count indictment for their roles in the scheme. Tyrone Parker, age 41, of Fort Lauderdale, Florida, previously pled guilty to his role in the indictment and was sentenced to 57 months in prison. Keyshawn Arnold, age 25, of Schenectady, New York; Gary Grier, age 37, of Fort Lauderdale; and Joshua Mallory, age 37, of Fort Lauderdale, previously pled guilty for their roles in the indictment and are awaiting sentencing. The remaining co-defendants are: TYRONE PARKER, JR. a/k/a “Ty,” a/k/a “Cheese,” a/k/a “Little Thigh,” age 22, of Fort Lauderdale, Florida; CEDRIC LYNCH, a/k/a “City,” a/k/a “C,” age 37, of Orlando, Florida; ROBERT NATSON, a/k/a “Big Rob,” age 36, of Fort Lauderdale; and RANDALL TAYLOR , a/k/a “Gucci,” a/k/a “Guwop,” age 37, of Fort Lauderdale. Each of the remaining defendants is charged with conspiracy to commit bank fraud and/or aggravated identity theft, and they are scheduled for trial in federal court in Albany on July 10, 2023. The charges in the indictment are merely accusations, and the defendants whose cases remain pending are presumed innocent unless and until proven guilty. This case is being investigated by the FBI Westchester Resident Agency of the New York Field Office and the Putnam County Sheriff’s Department, with assistance from the FBI Field Offices in Albany, Miami, and Salt Lake City, and Resident Agencies in Savannah, Georgia, and Portland, Maine, and from the U.S. Attorney’s Office for the District of Maine, the Saratoga County District Attorney’s Office, and the Ulster County District Attorney’s Office. Additional assistance was provided by numerous law enforcement agencies, including, within New York, the New York State Police; Columbia County Sheriff's Office; Genesee County Sheriff’s Office; Monroe County Sheriff’s Office; Saratoga County Sheriff’s Office; Warren County Sheriff’s Office; and the police departments of the Town of Bethlehem; Glens Falls; Gloversville; Greenburgh; Greece; and Watervliet; and elsewhere, Connecticut State Police; Florida Department of Law Enforcement; Georgia State Patrol; Illinois State Police; Massachusetts State Police; Broward County, FL Sheriff’s Office; Northern York County, PA Regional Police; Southern Chester County, PA Regional Police; Utah County, UT Sheriff's Office; and the police departments of Auburn, MA; Bath, ME; Biddeford, ME; Bozeman, MT; Brunswick, ME; Caernarvon Township, PA; Chester Township, PA; Cinnaminson, NJ; Darien, CT; East Norriton Township, PA; Easthampton, MA; Greenwich, CT; Lower Moreland Township, PA; Manheim Township, PA; Portland, ME; Portsmouth, NH; Saco, ME; Salisbury, MA; Sanford, ME; Scarborough, ME; Somersworth, NH; South Portland, ME; St. George, UT; Syracuse, UT; Tinicum, PA; Towamencin, PA; Tewksbury, MA; Wakefield, MA; Yarmouth, ME; and York, ME. Assistant United States Attorneys Matthew J. McCrobie, Michael F. Perry, and Paul Tuck are prosecuting the case.


title: Former Niskayuna Surgeon To Pay $42,000 For Defrauding Medicare

body_text: ALBANY, NEW YORK – Steven A. St. Lucia has agreed to pay $42,000 to the United States to resolve allegations that he caused Union Foot Solutions, LLC, d/b/a Union Orthotics and Pedorthics (Union Foot Solutions), to submit false claims for payment to Medicare in violation of the False Claims Act, announced United States Attorney Carla B. Freedman. St. Lucia has pled guilty to state health care fraud charges and is scheduled for sentencing on March 17, 2023. As part of the Settlement Agreement, St. Lucia admitted to the following: In early 2000, the New York State Board of Professional Medical Conduct revoked St. Lucia’s medical license based on findings that he had committed conduct demonstrating moral unfitness and gross incompetence. Later that year, the Office of Inspector General for the United States Department of Health and Human Services (HHS-OIG) excluded St. Lucia from participating in all Federal health care programs, including Medicare. The effect of an exclusion is that no Federal health care program may make payment for items or services furnished by an excluded person, or at the medical direction or on the prescription of an excluded person. St. Lucia subsequently opened Schenectady-based Union Foot Solutions, a medical supply company, and applied to the Centers for Medicare and Medicaid Services (CMS) for Union Foot Solutions to participate in Medicare. That enrollment application falsely represented both that St. Lucia had never had a revocation or suspension of a license to provide health care and that he had never faced suspension or exclusion from Federal health care programs. CMS denied the application, explaining that St. Lucia was “excluded from the Medicare program” and, therefore, Union Foot Solutions “cannot receive Medicare payment.” St. Lucia later transferred his ownership interest in Union Foot Solutions to a third party, and Union Foot Solutions’ new owner reapplied for and obtained authorization to participate in Medicare. St. Lucia continued to work for Union Foot Solutions and rendered orthotic and prosthetic care to patients. The United States alleges that, from December 1, 2016 through February 28, 2018, St. Lucia caused Union Foot Solutions to present false claims for payment to Medicare for services that he furnished to and ordered for Medicare beneficiaries. The United States further alleges that, to conceal his involvement in the treatment of Medicare beneficiaries and to circumvent the effect of his exclusion, St. Lucia caused Union Foot Solutions to bill services that he furnished to and items that he ordered for Medicare beneficiaries in the name of another pedorthist. The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, HHS-OIG, and the New York State Offices of the Inspector General. The United States was represented by Assistant United States Attorney Adam J. Katz.


title: Statement Of U.S. Attorney Damian Williams On The Conviction Of Former Congressman Stephen Buyer For Insider Trading

component: USAO - New York, Southern

body_text: Former Congressman Stephen Buyer leveraged his privileged position as a corporate advisor to twice use his clients’ material nonpublic information to commit insider trading. Buyer’s conviction underscores this Office’s commitment to detect and hold accountable those who break our insider trading laws just to make a buck.


title: USAO-KS Warns Public About Spoofing Scams

component: USAO - Kansas

body_text: KANSAS CITY, KAN. – The U.S. Attorney’s Office – District of Kansas is warning the public about phone scams in which callers spoof or fraudulently display themselves as having numbers belonging to government agencies in attempt to defraud victims of money. Anyone who receives a call from someone claiming to be from a government or law enforcement agency while demanding payment is encouraged to immediately hang up. Scammers will do everything they can to keep you from ending the call. Since spoofed phone numbers belong to a legitimate agency, please take the next step by directly calling the agency in question. A legitimate caller will encourage you to take the time to verify the information. “If the first time you hear about supposedly owing the government money that must be paid immediately is through a phone call, it’s more than likely a scam. That’s not how the government does business, so please take the time to find out if the number in your Caller ID actually belongs to the person with whom you are speaking,” said Duston Slinkard, First Assistant. If you are a victim of a phone or an online scam, immediately contact the bank you used to try to recall the wire transfer. Then file an online complaint with the FBI’s Internet Crime Complaint Center ( www.IC3.gov ). ###


title: Associate Attorney General Vanita Gupta Issues Statement on the FBI’s Supplemental 2021 Hate Crime Statistics

component: Civil Rights Division

body_text: The Justice Department issued following statement from Associate Attorney General Vanita Gupta on the FBI’s announcement of the 2021 hate crime statistics supplement: “Preventing, investigating and prosecuting hate crimes are top priorities for the Justice Department, and reporting is key to each of those priorities. The FBI’s supplemental report demonstrates our unwavering commitment to work with our state and local partners to increase reporting and provide a more complete picture of hate crimes nationwide. We will not stop here: We are continuing to work with state and local law enforcement agencies across the country to increase the reporting of hate crime statistics to the FBI. Hate crimes and the devastation they cause communities have no place in this country. The Justice Department is committed to every tool and resource at our disposal to combat bias-motivated violence in all its forms.” *** Additional information on hate crime statistics collection: The FBI’s 2021 Hate Crime Statistics Supplemental Report released in December 2022, was the first year using annual hate crimes statistics reported entirely through the National Incident-Based Reporting System (NIBRS). Compared to the previous crime data collection system, NIBRS collects significantly more detailed data for each individual criminal incident. Since 2016, the Justice Department has worked with law enforcement agencies to assist in their transition to reporting crime data through NIBRS, including allocating over $120 million in grants to support agencies’ transition. As a result of the shift to NIBRS-only data collection, law enforcement agency participation in submitting all crime statistics, including hate crimes, fell significantly from 2020 to 2021. Several of the nation’s largest law enforcement agencies, as well as some states, did not make the transition to NIBRS in time to submit data prior to the reporting deadline, and were not included in the 2021 Hate Crime Statistics. In order to increase agency participation for the 2021 data year, the FBI’s Uniform Crime Reporting Program accepted hate crime data submissions from the summary reporting data collection system and additional NIBRS hate crime reports from 3,025 agencies that covered a combined population of 87,239,467 to help compile this supplemental report. As a result, 14,859 agencies covering 91.1% of the population are represented in this report compared to the 11,834 agencies representing 64.8% represented in the December 2022 report. Nationally, reported hate crime incidents increased 11.6% from 2020 to 2021. Steps taken by the Justice Department since January 2021 in response to a rise in hate crimes and hate incidents include: Aggressively investigating and prosecuting hate crimes – the department has charged more than 70 defendants in over 60 different cases and secured more than 60 convictions of defendants; Designating a Deputy Associate Attorney General as the department’s first-ever Anti-Hate Crimes Resources Coordinator; Designating the chief of the Criminal Section of the Civil Rights Division to serve in role of facilitating the expedited review of hate crimes; Designating an inaugural Language Access Coordinator to improve knowledge, use and expansion of the department’s language resources; Announcing that by September 2023 all 94 U.S. Attorneys’ Offices will host a United Against Hate program to help improve the reporting of hate crimes by teaching community members how to identify, report and help prevent hate crimes and to provide an opportunity for trust building between law enforcement and communities; Elevating civil rights violations and hate crimes enforcement for prioritization among the FBI’s 56 field offices; Designating at least one Assistant U.S. Attorney as a Civil Rights Coordinator in every U.S. Attorney’s Office (USAO); Facilitating FBI-hosted regional conferences across the country with state and local law enforcement agencies regarding federal civil rights and hate crimes laws; to encourage reporting; strengthen relationships between law enforcement and local civil rights organizations; and build trust within the diverse communities they serve; Launching an FBI-led National Anti-Hate Crimes Campaign involving all 56 FBI field offices to encourage reporting. The campaign includes outdoor advertising, billboards and radio streaming in addition to social media; Revitalizing the Community Relations Service (CRS) by, among other things, facilitating nearly a dozen Protecting Places of Worship forums to provide interfaith communities with resources and information on securing their places of worship, help faith leaders build relationships with law enforcement; Adding information to the department’s website on reporting hate crimes in 24 languages, including 18 of the most frequently spoken AAPI languages in the United States; Awarding over $32 million in grant funding, including through the Matthew Shepard and James Byrd Jr. Hate Crimes Program, which supports state, local and Tribal law enforcement and prosecution, victim assistance and public awareness; the Community Based Approaches to Prevent and Address Hate Crimes initiative, which promotes community awareness, preparedness and responsiveness; the Jabara-Heyer NO HATE Act State-Run Hate Crime Reporting Hotlines Program; and the Community IMPACT program, which supports community organizations in their efforts to serve and support victims of hate crimes; and With the Department of Education, issuing facts sheets addressing harassment and discrimination in school, including harassment based on COVID-19 related issues, harassment of LGBTQI+ students and discrimination based on national origin and immigration status. More information about the department’s response to hate crimes is available here .


title: District Man Found Guilty of Charges for Shooting Four People in Northeast Washington D.C.

component: USAO - District of Columbia

body_text: WASHINGTON - Travis Littlejohn, 38, of Washington, D.C., was found guilty by a jury of the July 5, 2019, shooting of three men and a woman in Northeast Washington, D.C., announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department. The verdict was returned late in the day on March 10, 2023. The Honorable Maribeth Raffinan scheduled sentencing for June 2, 2023. Littlejohn was found guilty following a two-week trial in the Superior Court of the District of Columbia, of all charges in the 28-count indictment, including four counts of assault with intent to kill while armed, one count of aggravated assault while armed, and three counts of assault with significant bodily injury, along with related firearms offenses. According to the government’s evidence, on the night of July 5, 2019, after getting into a verbal and physical altercation with a group of people gathered in the 3800 block of Minnesota Avenue NE, Washington, D.C., Littlejohn drove to an apartment two blocks away. Littlejohn drove back to the block minutes later, and after exchanging words with the group again, fired at least seven rounds at them from a semiautomatic firearm from a short distance away. Littlejohn shot four people before two members of the group returned gunfire. Three of the victims suffered significant injuries, but one victim was more seriously injured. This case was investigated by Metropolitan Police Department Detective Kurt Hansen with assistance of Sixth District Officer Keith Cyphers. The case was prosecuted and tried by Assistant U.S. Attorneys Michael Toogun and Samuel White, and indicted by Assistant U.S. Attorney Michael McCarthy of the Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by Paralegal Specialists Renee Prather, Debra McPherson & Crystal Waddy, SA Nelson Rhone of the Criminal Investigation Unit, and Litigation Technology Specialist Leif Hickling.


title: Justice Department and Consumer Financial Protection Bureau File Statement of Interest in Appraisal Discrimination Case

body_text: The Justice Department and the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al. , a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal. “Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.” “The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.” “Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.” The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%. The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPB address three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of Section 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court. The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), national origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt . More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov . Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing fairhousing@usdoj.gov , or submitting a report online . Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online . In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online .


title: Michigan Nonprofit Organizations Agree to Pay $225,887 to Settle False Claims Act Allegations Relating to Improper Receipt of Paycheck Protection Program Loans

component: Civil Division

body_text: Two Michigan nonprofit organizations, the Michigan Education Association (MEA) and the Michigan Education Special Services Association (MESSA), have agreed to settle allegations that the organizations violated the False Claims Act (FCA) by applying for and obtaining loans under the Paycheck Protection Program (PPP) for which they knew or should have known they were ineligible. Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to certain small businesses and other entities struggling to pay employees and other business expenses. Under the rules applicable at the time of the loans covered by today’s settlement, certain nonprofit organizations were not eligible to receive a PPP loan. In 2020, MEA, a 501(c)(5) nonprofit labor union organization, and MESSA, a 501(c)(9) voluntary employees’ beneficiary association, each applied for and obtained a PPP loan. The United States contended that these organizations knew or should have known they were ineligible to receive their PPP loans, and that they caused the Small Business Administration (SBA) to pay lender fees to the bank that processed the loans. In connection with the settlements announced today, MEA will pay $115,265 and MESSA will pay $110,622 to the United States resolve these allegations. MEA and MESSA repaid their loan proceeds in full in December 2020. “The PPP was intended to provide critical economic relief to eligible small businesses and other entities,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement reflects the department’s commitment to ensuring the integrity of the PPP loan process.” “Those who violate the False Claims Act by fraudulently receiving SBA pandemic program funds meant for eligible small businesses will be held accountable,” said Special Agent in Charge Sharon Johnson of SBA OIG’s Central Region. “Today’s settlements send a strong message that those responsible will be held accountable. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.” The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the FCA, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by the Mackinac Center for Public Policy and is captioned U.S. ex rel. Mackinac Center for Public Policy v. Michigan Education Association, et al., Dkt. No. 1:22-cv-00028-HYJ-PJG (W.D. Mich.). Under the False Claims Act, private citizens can sue on behalf of the government and share in any recovery. The Mackinac Center for Public Policy’s share of the settlement has not been determined. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General. This matter was handled by Trial Attorney Evan J. Ballan of the Civil Division and Assistant U.S. Attorney Andrew J. Hull of the Western District of Michigan. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here . Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The claims resolved by the settlements are allegations only, and there has been no determination of liability.


title: President of Oklahoma Steel Pole Manufacturer Pleads Guilty to Tax Evasion

component: Tax Division

body_text: An Oklahoma man pleaded guilty, on Friday, March 10, to evading over $1 million in income taxes. According to court documents, from 2014 to 2019, Phillip Barry Albert of Tulsa was President of Pelco Structural LLC and directed its outside payroll service company to pay him over $2.6 million. Albert instructed that the payments be classified as reimbursements rather than income, so that federal income taxes would not be withheld, and the payments would not be reported on his Forms W-2 as wages. Albert filed individual income tax returns for 2014 through 2019 that did not report the payments, totaling $2,615,750, thus causing a tax loss to the IRS of $1,000,232. Albert faces a maximum penalty of 5 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Clinton J. Johnson for the Northern District of Oklahoma made the announcement. IRS-Criminal Investigation and the FBI are investigating the case. Trial Attorney Meredith Havekost of the Justice Department’s Tax Division and Assistant U.S. Attorneys Richard Cella and Thomas Duncombe of the Northern District of Oklahoma are prosecuting the case.


title: Oklahoma City Man Sentenced to Serve 188 Months in Federal Prison for Drug and Firearms Offenses

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – Earlier this week, MARCUS KELLY SMITH , 38, of Oklahoma City, was sentenced to serve more than 15 years in federal prison for conspiracy to possess with intent to distribute fentanyl and possession of a firearm after a felony conviction, announced United States Attorney Robert J. Troester. On July 5, 2022, a federal grand jury returned a two-count Indictment against Smith. Count 1 charged Smith with drug conspiracy and Count 2 charged him with felon in possession of a firearm. On August 2, 2022, a Superseding Information charged Smith with one count of drug conspiracy and one count of felon in possession of a firearm. On November 1, 2022, Smith pleaded guilty to both counts of the Superseding Information. At a sentencing hearing on March 8, 2023, U.S. District Court Judge Joe Heaton sentenced Smith to serve 188 months in federal prison. In support of his sentence, Judge Heaton cited, among other things, the serious nature of the offense and Smith’s criminal history. Judge Heaton also ordered that upon release from prison, Smith must serve four years of supervised release. Smith has been in federal custody since his arrest on June 28, 2022. Public records reflect that Smith had a lengthy criminal history. His criminal convictions include: Oklahoma County District Court cases CF-2012-5752 – aggravated assault and battery; CF-2012-297 – possession of a firearm after felony, possession with intent to distribute, and pointing a firearm; CF-2011-4239 – possession of controlled dangerous substance and assault and battery; CF-2011-4023 – possession of controlled dangerous substance; CF-2004-6983 – possession of a firearm after felony and possession of controlled dangerous substance; CF-2004-4415 – possession of a firearm after felony and pointing a firearm; CF-2004-1115 – possession of controlled dangerous substance with intent to distribute and acquiring drug proceeds; CF-2003-4500 – possession of controlled dangerous substance with intent to distribute; and Pottawattamie County District Court case CF-2000-67 – robbery with a dangerous weapon. This case was the result of an investigation by the FBI Oklahoma City Field Office and the Oklahoma City Police Department, with assistance from the Oklahoma County District Attorney’s Office. Prosecuted by Assistant U.S. Attorneys Wilson D. McGarry and D.H. Dilbeck, the case is part of Project Safe Neighborhoods, a Department of Justice program to reduce violent crime. In October 2017, the Department announced the reinvigoration of Project Safe Neighborhoods and directed U.S. Attorney’s Offices to develop crime-reduction strategies that incorporate lessons federal law enforcement has learned since the program’s launch in 2001. This case is also part of “Operation 922.” Operation 922 is the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal crimes connected to domestic violence. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok . Reference is made to court filings for further information.


title: Maryland U.S. Attorney’s Office, Justice Department’s Civil Rights Division and the Consumer Financial Protection Bureau File Statement of Interest in Case Alleging Unlawful Appraisal Discrimination

component: USAO - Maryland

body_text: Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, along with the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals. The statement of interest was filed in Connolly, et al. v. Lanham, et al. , a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal. “The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney for the District of Maryland Erek L. Barron. “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.” “Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law. The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.” “Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez. “CFPB's Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.” The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore, Maryland. The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black. They also allege that they told the lender, loanDepot.com, LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them. When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner. This appraisal resulted in a valuation of $750,000 – an increase of almost 60%. The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPBaddress three legal principles incorrectly represented in loanDepot’s motion to dismiss. First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA. Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory. Third, the statement explains that a violation of § 3617 of the FHA does not require an underlying violation of another provision of the FHA. The motions to dismiss are currently pending before the court. The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), nation origin and disability. ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorney Nathan Shulock of the Justice Department’s Civil Rights Division, who handled the Government’s Statement of Interest. More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt . More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov/ . Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing fairhousing@usdoj.gov , or submitting a report online . Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online . In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online . For more information on the Maryland U.S. Attorney’s Office, its priorities, and information on civil rights laws and resources, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/civil-rights . # # #


title: Pennsylvania Owners of Landscape and Excavation Firm Charged with  Conspiring to Defraud the IRS and Employment Tax Crimes

body_text: A federal grand jury in Philadelphia returned an indictment charging a Pennsylvania man and woman with conspiring to defraud the IRS and other tax crimes, including failing to pay employment taxes to the IRS. According to the indictment, which was unsealed today, from approximately October 2013 through December 2021, Theodore Shearba and Jennifer Cemini, both of Perkiomenville, owned and operated a landscaping and excavation business and attempted to defraud the IRS by (1) not reporting the income they received from the business, (2) using business funds to pay for personal expenditures, (3) not paying employment taxes, including the income tax withheld from employees’ paychecks and Social Security and Medicare taxes and (4) changing business names and concealing business income to thwart IRS efforts to collect the unpaid employment taxes. It is also alleged that Shearba did not file individual income tax returns for years 2019 through 2021. If convicted, Shearba and Cemini each face a maximum penalty of five years in prison for the conspiracy count and each employment tax count. Shearba also faces a maximum penalty of one year in prison for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case. Assistant Chief Thomas F. Koelbl and Trial Attorney George Meggali of the Justice Department’s Tax Division are prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Kenai Woman Sentenced to 10 Years for Drug Trafficking and Firearms Possession

body_text: ANCHORAGE – Cristina Lynn Rifredi was sentenced on March 9, 2023, was sentenced to 10 years in prison for federal drug trafficking and firearms charges. According to court documents, Cristina Lynn Rifredi, 42, of Kenai, Alaska, sold over 60 grams of methamphetamine, 1 gram of heroin, and a 12-gauge shotgun to another person between November 21, 2019, and December 8, 2020. When law enforcement executed a search warrant on Rifredi’s vehicle and residence, they found she possessed 27 firearms, a silencer, and additional quantities of methamphetamine and heroin. Rifredi was charged with drug trafficking and firearms crimes by a federal grand jury in November 2021 and pleaded guilty in December 2022. U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Alaska State Troopers (AST), and the Kenai Police Department (KPD) investigated the case. Assistant U.S. Attorney Seth Brickey prosecuted the case. ### usao/ak/23-018


title: United States Files Complaint Alleging that Rite Aid Dispensed Controlled Substances in Violation of  the False Claims Act and the Controlled Substances Act

body_text: The Justice Department announced today that the United States has filed a complaint in intervention in a whistleblower lawsuit brought under the False Claims Act (FCA) against Rite Aid Corporation and various subsidiaries (collectively Rite Aid) alleging that Rite Aid knowingly filled unlawful prescriptions for controlled substances. In addition to alleging claims under the FCA, the government’s complaint also alleges violations of the Controlled Substances Act (CSA). Rite Aid is one of the country’s largest pharmacy chains, with over 2,200 pharmacies in 17 states. “The Justice Department is using every tool at our disposal to confront the opioid epidemic that is killing Americans and shattering communities across the country,” said Attorney General Merrick B. Garland. “That includes holding corporations, like Rite Aid, accountable for knowingly filling unlawful prescriptions for controlled substances.” “We allege that Rite Aid filled hundreds of thousands of prescriptions that did not meet legal requirements,” said Associate Attorney General Vanita Gupta. “According to our complaint, Rite Aid’s pharmacists repeatedly filled prescriptions for controlled substances with obvious red flags, and Rite Aid intentionally deleted internal notes about suspicious prescribers. These practices opened the floodgates for millions of opioid pills and other controlled substances to flow illegally out of Rite Aid’s stores.” “The opioid crisis has exacted a heavy toll on communities across the United States,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s complaint is an important reminder that the Justice Department will hold accountable any individuals or entities, including pharmacies, that fueled this terrible crisis.” “Pharmacies, physicians, corporations, and other health care entities that have contributed to the proliferation of opioids in our communities and the tragic loss of life from overdose deaths must answer for their role in the crisis we now face,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “This complaint is a continuation of the Justice Department’s commitment to hold accountable those entities that aggravated and profited from the opioid crisis.” The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly filled at least hundreds of thousands of unlawful prescriptions for controlled substances that lacked a legitimate medical purpose, were not for a medically accepted indication, or were not issued in the usual course of professional practice. These unlawful prescriptions included, for example, prescriptions for the dangerous and highly abused combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as oxycodone and fentanyl, and prescriptions issued by prescribers whom Rite Aid pharmacists had repeatedly identified internally as writing illegitimate prescriptions. The government alleges that Rite Aid pharmacists filled these prescriptions despite clear “red flags” that were highly indicative that the prescriptions were unlawful. The government further alleges that Rite Aid not only ignored substantial evidence from multiple sources that its stores were dispensing unlawful prescriptions, including from certain pharmacists, its distributor, and its own internal data, but compounded its failure to act by intentionally deleting internal notes about suspicious prescribers written by Rite Aid pharmacists and directing district managers to tell pharmacists “to be mindful of everything that is put in writing.” By knowingly filling unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA. Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs, Corp.; Rite Aid of Connecticut, Inc.; Rite Aid of Delaware, Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania; and Rite Aid of Virginia. “The action supported today by the Drug Enforcement Administration (DEA) should serve as a warning to those in the pharmacy industry who choose to put profit over customer safety,” said Special Agent in Charge Orville O. Greene of the DEA. “Pharmacies are required to ensure prescription drugs are only dispensed based on valid prescriptions,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG). “Prescriptions which are not medically necessary, and not for a medically accepted indication, will not be paid for by Medicare and Medicaid. HHS-OIG will continue to work with our law enforcement partners and the Department of Justice’s Civil Division to recover improperly paid funds through the FCA.” Whistleblowers Andrew White, Mark Rosenberg, and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies, filed an action in October 2019 under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties. The case is captioned United States ex rel. White et al. v. Rite Aid Corp., et al., No. 1:21-cv-1239 (N.D. Ohio). The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Northern District of Ohio. The DEA Cleveland Field Division, FBI Cleveland Field Office, and HHS-OIG provided substantial assistance in the investigation. The United States is represented in this matter by Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald and Elizabeth Berry for the Northern District of Ohio. The Justice Department is committed to holding responsible those who have fueled the opioid crisis by violating the law. Last week, the Associate Attorney General announced the creation of the Opioid Epidemic Civil Litigation Task Force, which formalizes and enhances coordination of the Department’s existing work and will consider new initiatives. Because of the scope and duration of the crisis, the Task Force includes U.S. Attorneys’ Offices, the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch (Fraud Section), the Drug Enforcement Administration, and other Department components. The Task Force will steer the Department’s civil litigation efforts involving actors alleged to have contributed to the opioid epidemic, including by diverting prescription opioids. The claims asserted against defendants are allegations only and there has been no determination of liability.


title: U.S. Customs and Border Protection Officer Indicted for Using Excessive Force and Obstruction of Justice

body_text: A federal grand jury in the Western District of Texas returned a three-count indictment that was unsealed today, charging a U.S. Customs and Border Protection officer with deprivation of rights under color of law and the falsification of a document in a federal investigation. According to the indictment, Miguel Delgado Jr. used excessive force in two separate incidents that occurred on or about June 15, 2020, and Oct. 20, 2019, while he was on duty at the Bridge of Americas Port of Entry in El Paso, Texas. As alleged in the indictment, both victims suffered bodily injury as a result of Delgado’s unlawful use of force. The indictment also charges Delgado with including false statements in a report about one of the incidents. If convicted, Delgado faces a maximum sentence of 10 years in prison for each of the use of force incidents and a maximum of 20 years in prison for submitting a false report about one of the incidents. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney for the Western District of Texas Jaime Esparza, Special Agent in Charge Jaime Ordonez of the Department of Homeland Security Office of Inspector General and Special Agent in Charge Gilberto Carreon Jr. of the U.S. Customs and Border Protection’s Office of Professional Responsibility made the announcement. Assistant U.S. Attorneys Patricia Aguayo for the Western District of Texas and Trial Attorney Olimpia Michel of the Civil Rights Division’s Criminal Section 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: United States Settles Claims of Genetics Testing Fraud

component: USAO - Delaware

body_text: WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Dr. Kathy Cornelius, a Delaware physician who now resides in Huntsville, Alabama, has agreed to pay $500,000 to resolve allegations that she violated the False Claims Act by ordering medically unnecessary genetic testing for Medicare beneficiaries residing in Delaware. Between October 2020 and February 2022, Dr. Cornelius referred more than 250 Delaware residents for medically unnecessary genetic tests that were paid for by Medicare. The United States alleges that Dr. Cornelius had no medical relationship with these patients and that the referrals were based on brief telemedicine consultations – often two minutes or less in duration – during which Dr. Cornelius failed to establish any legitimate medical justification for the tests. The genetic tests Dr. Cornelius ordered often cost thousands of dollars per patient. “Doctors who refer patients for medically unnecessary services such as genetic testing drain vital funds from Medicare and other government healthcare programs,” said U.S. Attorney Weiss. “This office will continue to use all available means to identify healthcare providers who increase costs through unnecessary procedures and to hold them accountable.” “Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, Region III. “HHS-OIG and the U.S. Attorney’s Office will continue to evaluate and pursue allegations of medically unnecessary services”. This matter was handled by Assistant U.S. Attorney Dylan J. Steinberg and Affirmative Civil Enforcement Auditor David Cheung. The government’s pursuit of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477). The claims resolved by the settlement are allegations only and there has been no determination of liability. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.


title: Former Nurse Sentenced for Stealing Opioids from Kansas Hospital

body_text: KANSAS CITY, KAN. – A Kansas man was sentenced to 18 months in prison and his nursing license forfeited after stealing controlled substances from his employer. According to court documents, in March 2021, Alec Ramirez, 32, of Overland Park removed vials of fentanyl and hydromorphone from an automated dispensing cabinet at Menorah Medical Center in Overland Park and replaced the substances with an alternate liquid before returning the vials to the cabinet. In December 2022, Ramirez pleaded guilty to one count of tampering with a consumer product and one count of possession of fentanyl by deception and subterfuge. The Drug Enforcement Administration and the Food and Drug Administration – Office of Criminal Investigations investigated the case. Assistant U.S. Attorneys Faiza Alhambra and Trent Krug prosecuted the case. ###


title: Sayfullo Saipov To Be Sentenced To Life In Prison For 2017 Truck Attack For ISIS

component: National Security Division (NSD)

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury was unable to reach a unanimous decision as to whether to authorize the death penalty for SAYFULLO SAIPOV. U.S. District Judge Vernon S. Broderick will sentence SAIPOV to the statutorily mandated sentence of life in prison for carrying out a terrorist attack on October 31, 2017 , in the name of the Islamic State of Iraq and al-Sham (“ISIS”), in which SAIPOV used a truck to murder eight victims and injure many more on a bike path in lower Manhattan. On January 26, 2023, the same jury convicted SAIPOV of all 28 counts in the Indictment, which charged SAIPOV with murder for the purpose of gaining entrance to a racketeering enterprise (ISIS); assault with a dangerous weapon and attempted murder for the purpose of gaining entrance to a racketeering enterprise (ISIS); providing material support to a designated foreign terrorist organization (ISIS) resulting in death; and damage and destruction to a motor vehicle resulting in death. U.S. Attorney Damian Williams said: “On October 31, 2017, Sayfullo Saipov stole eight innocent lives – and devastated the lives of many more – in a horrendous terrorist attack. This evil act was fueled by Saipov’s allegiance to ISIS, an allegiance which Saipov proudly maintained after the attack and up through his trial. Today a jury has declined to authorize the death penalty for Saipov, and accordingly the defendant will be subject to a mandatory sentence of life imprisonment without the possibility of parole.” Saipov’s crimes were predicated on ISIS’s commitment to murder innocent civilians and its disdain for rule of law. But, in the end, Saipov’s actions have highlighted one of the pillars of the rule of law in this country: the right to a full and fair public trial before a jury drawn from the community. We thank the jurors for their careful consideration of the evidence and the law during this long trial, and for their willingness to serve. We also thank the families of the murdered victims, and the surviving victims, for their patience and understanding as the legal process played out. Even though the trial has ended, we know that their pain and grief endures. We stand with them in honoring the lives of their loved ones, and all who were affected by this senseless attack.” As set forth in public documents in the case and statements made during court proceedings: On Halloween afternoon in 2017, SAYFULLO SAIPOV used a 6,000-pound truck to strike more than 20 innocent people on the Hudson River Bike Path in lower Manhattan. SAIPOV killed eight of his victims and critically injured many others, including a 14-year-old child. SAIPOV’s surviving victims suffered amputations, serious brain injuries, life-altering physical injuries, and significant psychological trauma. SAIPOV committed his attack after years of devotion to the brutal terrorist organization ISIS and after months of careful planning. In the weeks before his attack, for example, SAIPOV rented a truck to practice maneuvering it so that he could hit as many people as possible. SAIPOV brought a note to the attack with the ISIS flag and rallying cry written on it. After his attack, while in custody at a hospital, SAIPOV told the FBI that he committed the attack in response to calls from the leader of ISIS and that he was proud of what he had done. SAIPOV smiled when describing his attack and sought to hang the ISIS flag in his hospital room. After the attack, ISIS praised SAIPOV as an Islamic State soldier and called his attack one of the most prominent attacks in the United States. In the years since his attack, SAIPOV continued to demonstrate his devotion to ISIS, including though statements in court, recorded telephone calls, and writings seized from his prison cell. In prison, SAIPOV also made statements confirming his continued belief that enemies of ISIS should be eliminated and threatening to cut the heads off of corrections officers. At the liability and sentencing phases of trial, many of SAIPOV’s victims and their family members bravely described the terror he caused and the pain and suffering they continue to endure. * * * SAIPOV, 34, of Uzbekistan, will be sentenced to life in prison on all nine capital counts in the Indictment. Mr. Williams praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the FBI Legal Attaché Office for Central Asia and the FBI’s Counterterrorism Division, Laboratory Division, Victim Services Division, and Language Services Section, Homeland Security Investigations, New York, and the Department of Justice’s National Security Division, Capital Case Section, Organized Crime and Gang Section, Office of Enforcement Operations, and Office of International Affairs for their assistance. The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Jason A. Richman, Alexander Li, and Andrew Dember, with the assistance of Paralegal Specialist Daniel Sitko, are in charge of the prosecution, with assistance from Trial Attorney John Cella of the National Security Division’s Counterterrorism Section and Trial Attorney Michael Warbel of the Capital Case Section. Mr. Williams also thanked Wendy Olsen and the Office’s Victim and Witness Section for their outstanding efforts in assisting the victims of this crime and their families.


title: Seven Charged in Sophisticated Stolen Identity Tax Refund Fraud Scheme that Sought Over $100 Million from the IRS

body_text: On March 7, a federal grand jury in Austin returned an indictment, unsealed today, charging seven individuals with conspiracy to commit mail and wire fraud and other crimes arising out of their scheme to defraud the IRS using stolen identities. According to the indictment, from 2018 through 2021, Abraham Yusuff, of Round Rock, Meghan Inyang, of San Antonio, Christopher Eduardo, of Round Rock, Christian Mathurin, of Nashville, Tennessee, Dillon Anozie, of San Antonio, Babajide Ogunbanjo, of Austin, and Aydin Mammadov, of Houston, engaged in a conspiracy to claim fraudulent tax refunds using the stolen identities of accountants and taxpayers by filing at least 371 false tax returns claiming over $111 million in refunds from the IRS. Yusuff allegedly recruited and directed Eduardo, Mathurin, Anozie, Ogunbanjo and Mammadov to provide addresses to him that could be used in the scheme. Yusuff and others then allegedly registered with the IRS, posing as authorized agents of multiple taxpayers using stolen information relating to the taxpayers and their real tax preparers. The conspirators then allegedly directed the IRS to change the addresses on file for the taxpayers and to send their tax information, including account transcripts and wage records, to the addresses controlled by the conspirators. The conspirators then allegedly used this information to electronically file tax returns claiming fraudulent refunds and directed the refunds the IRS to split the refunds among several prepaid debit cards. Prior to issuing tax refunds to some taxpayers, the IRS allegedly sent verification letters to the addresses controlled by the defendants, and the defendants and others, pretending to be the taxpayers, instructed the IRS to release the refunds. The indictment also charges that Yusuff, Inyang, Eduardo, Anozie, Ogunbanjo and Mammadov obtained the prepaid debit cards that were to be used to receive the fraudulent refunds and that once the refunds were deposited onto the prepaid debit cards, they laundered the funds by purchasing, among other things, money orders from local stores in amounts low enough to avoid reporting thresholds. Yusuff and others also allegedly used the prepaid debit cards and money orders to purchase designer clothing, home renovation materials and used cars at auction. The indictment alleges that all defendants kept or received money orders purchased with the fraudulent refunds as their share of the illegal proceeds. The indictment charges each defendant with varying crimes, including mail and wire fraud, conspiracy to commit mail and wire fraud, aggravated identity theft, money laundering and access device fraud. If convicted, they face a maximum sentence of 20 years in prison for the mail and wire fraud and the conspiracy of said fraud, 20 years for money laundering, 10 years for access device fraud, and a mandatory sentence of two years for aggravated identity theft. In addition to any term of imprisonment, each of the defendants also faces a period of supervised release, monetary penalties, restitution and forfeiture. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement. The IRS–Criminal Investigation and the Treasury Inspector General for Tax Administration are investigating the case. Assistant Chief Michael Boteler and Trial Attorneys Mitchell T. Galloway and Mary Frances Richardson of the Justice Department’s Tax Division 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: St. Cloud, MN, Woman Pleads Guilty to Leading a Major Dangerous Drug Distribution Enterprise from Mexico

component: USAO - North Dakota

body_text: FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on March 13, 2023, Macalla Lee Knott a/k/a Kayla, age 30, from St. Cloud, MN, pled guilty in Federal Court in Fargo, ND, before Chief Judge Peter W. Welte, to the offenses of Conspiracy to Distribute Controlled Substances, Money Laundering Conspiracy and Continuing Criminal Enterprise (CCE). Sentencing is scheduled for August 7, 2023. At the plea hearing, Knott admitted to supervising, managing, and leading more than five people in the enterprise. Knott, who had been living in Mexico since March of 2020, directed shipments of methamphetamine, cocaine, and fentanyl to various distributors across the upper Midwest and arranged payments to sources of supply in Mexico. This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of methamphetamine, cocaine, and fentanyl and was aided by coordination with the U.S. Attorney’s Office, District of Minnesota. This investigation has led to eighteen (18) defendants charged in North Dakota. The investigation has been tied to seizures of over 100 pounds of methamphetamine, 9 pounds of fentanyl powder and 120,000 fentanyl pills. The investigation remains very active. Sentenced in this case so far are: Mary Thompson, 29, Moorhead, Minnesota – 100 months (8.3 years) imprisonment and 3 years supervised release. Melanie Quick, 28, St. Cloud, Minnesota – 108 months (9 years) imprisonment and 3 years supervised release. This case is being investigated by the Central Minnesota Violent Offenders Task Force (CMVOTF), Federal Bureau of Investigation, St. Cloud Police Department, Stearns County Sheriff’s Office, Sartell Police Department, Benton County Sheriff’s Office, Sherburne County Sheriff’s Office, Morrison County Sheriff’s Office, Internal Revenue Service – CID, Fargo Police Department, West Fargo Police Department, Minnesota Bureau of Criminal Apprehension and the Drug Enforcement Administration. The cases are being prosecuted by Assistant U.S. Attorneys Christopher C. Myers and Alex Stock, District of North Dakota, with the assistance from the U.S. Attorney’s Office for the District of Minnesota and the Stearns County Attorney’s Office. # # #