title: Wyoming man sentenced to three years in prison for traveling to Bozeman with intent to engage in sex with minor

component: USAO - Montana

body_text: MISSOULA — A Wyoming man was sentenced today to three years in prison, to be followed by 10 years of supervised release, after he admitted he traveled to Montana with the intent to engage in sex with a minor, U.S. Attorney Jesse Laslovich said. Jeremy George Lusk, 39, of Crowley, Wyoming, pleaded guilty in June to travel with intent to engage in illicit sexual conduct. U.S. District Judge Dana L. Christensen presided. The government alleged in court documents that in January, law enforcement was working undercover and responded to an ad on a social media site that was looking for a sexual encounter. The undercover responded, asking the user, who was later identified as Lusk, if he had age limits. Lusk responded that he did not, and the undercover replied that she was 14 years old and lived in Bozeman. Lusk expressed hesitation with the undercover’s purported age before re-engaging and expressing a desire for someone her age. The communications led to Lusk sending a nude photo of himself and to sexually explicit conversations. Ultimately, the two discussed Lusk traveling to Bozeman to meet and have sex. Law enforcement arrested Lusk when he arrived in Bozeman from Wyoming believing he was going to meet the undercover. Inside his truck were lubricant jell, condoms and a sex toy. Assistant U.S. Attorney Zeno B. Baucus prosecuted the case. The Bozeman Police Department, Montana Internet Crimes Against Children Task Force and Homeland Security Investigations conducted the investigation. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. XXX


title: Berks County Man Sentenced To Life Imprisonment Plus 5 Years For Drug Distribution Resulting In Death And Serious Bodily Injury And Possession Of A Firearm

component: USAO - Pennsylvania, Middle

body_text: SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 27, 2023, Miguel Eduardo Rosario, age 37, of Reading, Pennsylvania, was sentenced to life imprisonment by United States District Court Judge Robert D. Mariani for the distribution of a controlled substance resulting in death and serious bodily injury, followed by a consecutive term of five years’ imprisonment for possession of a firearm in furtherance of a drug trafficking crime. According to United States Attorney Gerard M. Karam, Rosario was found guilty of multiple federal crimes on February 2, 2023, following a seven-day jury trial before Judge Mariani. The evidence showed that Rosario was a large-scale drug dealer operating out of Reading. While on state parole for a prior drug conviction, Rosario continued to sell fentanyl, heroin, cocaine, methamphetamine, oxycodone, and Xanax in the Berks and Schuylkill County areas between January 2017 and November 2019. Rosario was found guilty on all counts of the indictment, including counts relating to an individual who first overdosed from heroin and fentanyl distributed to him by Rosario, and then suffered death approximately six months later from heroin and fentanyl again distributed to him by Rosario. Rosario was also convicted of firearm charges related to his distribution of methamphetamine in exchange for firearms. During the seven-day trial, prosecutors from the U.S. Attorney’s Office presented the testimony from approximately 35 witnesses, including expert witness testimony from a forensic pathologist, multiple forensic toxicologists, a medical toxicologist, and a forensic cell phone examiner. The life sentence imposed by Judge Mariani was mandated pursuant to federal law for defendants found guilty of distributing a controlled substance resulting in death, after having previously been convicted of a felony drug offense. Rosario’s criminal history involved multiple felony drug offenses, which also rendered him a career offender under federal law. However, Judge Mariani stated that even without the mandatory sentence, he would have sentenced Rosario to a term of life imprisonment. The five-year term of imprisonment was also mandated pursuant to federal law to run consecutive to the drug trafficking sentence. Rosario was also ordered to pay restitution in the amount of $3,801.00 representing the funeral costs associated with the decedent. The investigation was conducted by the Federal Bureau of Investigation (FBI) in Scranton, the Pennsylvania State Police, and the Monroe County District Attorney’s Office. Assistant United States Attorneys Michelle Olshefski and Brian Gallagher prosecuted the case. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses. This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: Justice Department Issues Guidance on the Americans with Disabilities Act and Employment Services for People with Disabilities

component: Civil Rights Division

body_text: As we commemorate National Disability Employment Awareness Month, the Justice Department announced today that it has issued guidance to explain how the Americans with Disabilities Act (ADA)'s “integration mandate” applies to public employment and day services. The integration mandate requires state and local governments to provide services to people with disabilities in the most integrated setting appropriate. Integrated employment services can help people with disabilities work in typical jobs where they can interact with non-disabled coworkers, customers and peers. Integrated day services allow people with disabilities to engage in community activities of their choosing — like social, educational, recreational or cultural activities — when they are not working. As the guidance describes, the ADA requires state and local governments to make their employment and day services available in the most integrated setting appropriate to each person’s needs. Nationally, however, many people with disabilities spend most of their time receiving public services in segregated settings like sheltered workshops and facility-based day programs. Sheltered workshops are segregated facilities that primarily or exclusively employ people with disabilities. In facility-based day programs, people with disabilities participate in non-work activities with other people with disabilities. These settings separate individuals from the community and provide little or no opportunity to spend time with people without disabilities, other than paid staff. “Simply put, people with disabilities are entitled to work alongside their friends, peers and neighbors without disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employment is fundamental to contributing to and being fully included in society, This guidance makes clear that the ADA requires that people with disabilities have access to the integrated services they need to contribute, grow and advance in typical workplaces throughout the country.” The Civil Rights Division has published this guidance to help state and local governments understand their nondiscrimination obligations and people with disabilities understand their rights under the federal law in this area. The guidance provides an overview of the ADA, the integration mandate and the types of employment and day services that are often offered to people with disabilities. It then answers nine questions about how the ADA applies to those service systems. For example, the guidance explains: The ADA’s integration mandate applies to public employment and day services. The most integrated employment setting under the ADA is the one that lets people with disabilities spend time with non-disabled people as much as possible. People with disabilities who receive services in segregated employment or day services settings should receive accurate information about integrated employment options. The guidance may be found at www.ada.gov/resources/olmstead-employment-qa/ . A Federal Register notice discussing the guidance will be forthcoming. To learn more about the ADA, call the toll-free ADA Information Line at 1-800-514-0301 or 1-833-610-1264 (TDD), or access the Justice Department’s ADA website at ada.gov .


title: KC Man Sentenced for Meth Conspiracy, Illegal Firearm

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man has been sentenced in federal court for his role in a conspiracy to distribute methamphetamine and for illegally possessing a firearm. Ruben Chigo Paz, 27, was sentenced by U.S. District Judge Greg Kays on Monday, Oct. 30, to 10 years in federal prison without parole. On July 11, 2022, Paz pleaded guilty to one count of conspiracy to distribute methamphetamine and heroin, and one count of conspiracy to commit money laundering. Paz admitted that he is responsible for the distribution of more than 1.5 kilograms of methamphetamine during the conspiracy. Paz admitted that he sold a total of 1,314.49 grams of methamphetamine to a law enforcement confidential source from July 13 to Dec. 4, 2018. Paz was arrested at a residence in Kansas City, Mo., in which law enforcement officers found 37 pounds of methamphetamine, one pound of heroin, and a Zenith .45-caliber pistol with a magazine. This case is being prosecuted by Assistant U.S. Attorney Robert M. Smith. It was investigated by the FBI, the Independence, Mo., Police Department, the Jackson County Drug Task Force, the Kansas City, Mo., Police Department, the Jackson County, Mo., Sheriff’s Department, Homeland Security Investigations, and the U.S. Marshals Service. Organized Crime and Drug Enforcement Task Force This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: York County Man Sentenced To 45 Years’ Imprisonment For Child Exploitation Offenses Involving His Infant Daughter

body_text: HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Wyatt Andrew Jones, age 28, formerly of York County, Pennsylvania, was sentenced today by the Honorable Christopher C. Conner to 45 years’ imprisonment to be followed by 15 years of supervised released based upon his previously entered guilty plea for production of images containing the sexual exploitation of a child and distribution of child pornography. Jones was also ordered to pay $36,000 in restitution to the victims of his offenses. Jones is currently incarcerated at the York County Prison on related local charges. According to United States Attorney Gerard M. Karam, Jones produced and distributed images of him sexually abusing his infant daughter and solicited and received sexually explicit images from a 13-year-old female victim located in Australia. Jones began sexually abusing his infant daughter in January 2021 when she was just three days old and continued that abuse until April 2021 when he was arrested on related local charges now pending in the York County Court of Common Pleas. Jones produced numerous videos of the sexual abuse of his infant daughter and distributed the videos using the internet. The infant’s mother, Marisel Toro, pled guilty to producing images containing the sexual exploitation of her infant daughter and is scheduled for sentencing on January 18, 2024. This case was brought as part of Project Safe Childhood , a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . The case was investigated by the York City Police Department and the Federal Bureau of Investigation (FBI) and was prosecuted by former Assistant U.S. Attorney Paul J. Miovas and Assistant U.S. Attorney Bruce D. Brandler. # # #


title: New Mexico man sentenced to 21 months in prison for cyberstalking Poplar woman

component: Federal Bureau of Investigation (FBI)

body_text: GREAT FALLS — A New Mexico man who admitted to cyberstalking a Poplar woman for more than two years was sentenced today to 21 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said. Jicarilla Juan Tiznado, 23, of Dulce, New Mexico, pleaded guilty in June to cyberstalking. Chief U.S. District Judge Brian M. Morris presided. The government alleged in court documents that from about June 2020 through October 2022, Tiznado repeatedly harassed and intimidated the victim, identified as Jane Doe, using his computer, cell phone, email and the Internet. Tiznado called, emailed and messaged Jane Doe hundreds of times, threatening to harm and kill her, kill her brother, harm her friends and relatives, send nude images of her to her teachers or post them to her school’s Facebook account. Tiznado also harassed Jane Doe by calling and emailing schools she attended, attempting to get her into trouble, submitting unsubstantiated complaints about her and her family to state and tribal agencies and calling 911 with a false report about her. Assistant U.S. Attorneys Wendy A. Johnson and Amanda L. Myers prosecuted the case. The FBI and Fort Peck Law Enforcement conducted the investigation. XXX


title: Hardin County man sentenced to federal prison for bank robbery

body_text: BEAUMONT, Texas– A Kountze man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Timothy Shane Mitchell, 39, pleaded guilty to bank robbery and was sentenced to 87 months in federal prison by U.S. District Judge Marcia Crone on Oct. 31, 2023. According to information presented in court, on June 6, 2022, Mitchell robbed the Lumberton branch of the Community Bank of Texas. Mitchell approached a teller’s station at the bank and gave the teller a note demanding money. Mitchell told the teller he had a gun, which he threatened to use if she alerted authorities. The teller gave Mitchell a stack of currency and he left the bank. The teller immediately activated the panic button alerting police to the robbery. Witnesses were able to describe Mitchell’s vehicle, which was apprehended shortly after the robbery. Mitchell was arrested and the $5,860 in currency was recovered at that time. This case was investigated by the Lumberton Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joseph R. Batte. # # #


title: Fort Wayne Man Sentenced to 63 Months in Prison

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

body_text: FORT WAYNE–Lydell E. Trainor Jr., 30 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady upon his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Trainor was sentenced to 63 months in prison followed by 2 years of supervised release. According to documents in the case, on or about April 29, 2022, Trainor traveled to his in-laws’ residence in the early morning hours while possessing a loaded 9mm firearm. During an argument, Trainor pointed the firearm which he later hid underneath a vehicle. Based on his prior felony convictions for battery and possession of cocaine, Trainor was prohibited from possessing the firearm in this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Justin Sheridan and former Assistant United States Attorney Brent Ecenbarger. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: California Man Sentenced for Making Threatening Calls

component: USAO - Massachusetts

body_text: BOSTON – A California man has been sentenced for making threatening communications to the Tufts University Police Department (TUPD) in May 2021. Sammy Sultan, 50, of Hayward, Calif., was sentenced on Oct. 26, 2023 by U.S. District Court Judge Leo T. Sorokin to 27 months in prison and three years of supervised release. In November 2022, Sultan pleaded guilty to one count of making threats in interstate commerce. On or about May 28, 2021, Sultan made eight phone calls to TUPD, six of which included specific threats. During the calls, which collectively lasted about an hour, Sultan claimed to be hiding beneath a bed in a dorm room with a taser and pistol somewhere on campus. Sultan stated that he intended to use the taser if a woman returned to the dorm room and discovered him hiding. During the calls, Sultan played the sounds of a taser activating and a pistol racking – a pistol’s chamber being emptied and reloaded. TUPD and local police carried out a room-by-room search of numerous buildings on Tufts University’s Medford campus but failed to locate the caller. A subsequent investigation of electronic evidence determined that Sultan had made the calls from California. A law enforcement officer familiar with Sultan’s voice from a prior investigation recognized Sultan’s voice on the TUPD call recordings. Sultan previously pleaded guilty in December 2017 in the Northern District of California to making hundreds of obscene and harassing phone calls to law enforcement agencies and was sentenced to two years in prison. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the Tufts University Police Department; Massachusetts State Police; Illinois State Police; and the Medford, Somerville, North Andover, Malden and Peabody Police Departments. Assistant U.S. Attorney Timothy H. Kistner of the National Security Unit prosecuted the case.


title: St. Louis Man Sentenced to 57 Months in Prison for Aiding $666,656 in Pandemic Fraud

body_text: ST. LOUIS – U.S. District Judge John A. Ross on Tuesday sentenced a man who helped at least 20 people file fraudulent pandemic loan applications that reaped $666,656 to a prison term of 57 months and ordered him to repay the money. Jacob Eldridge, 45, of St. Louis, solicited at least 20 friends and acquaintances to file fraudulent applications for Paycheck Protection Program loans from at least Jan. 1, 2021 to Jan. 13, 2022. Eldridge often drafted and submitted fraudulent applications on behalf of those people. On at least 10 applications, Eldridge included entirely fictitious or substantially inflated gross annual income figures to max out the loans. He often also submitted bogus IRS forms on behalf of the businesses. In exchange for his help, many of the applicants paid Eldridge at least ten percent of the loan proceeds, totaling about $50,000. The loans were intended to help struggling business owners and their employees during the COVID-19 pandemic. In court, Assistant U.S. Attorney Derek Wiseman said Eldridge used the “darkest days” of the pandemic, when Americans were suffering, “to line his pockets.” Judge Ross echoed that, tell Eldridge, “We were in a desperate situation… and you took advantage of it.” Eldridge pleaded guilty in May to one felony count of wire fraud. The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.


title: Phoenix Man Sentenced to 37 Months for Selling Machine Gun to Undercover Agent

component: USAO - Arizona

body_text: PHOENIX, Ariz. – Carlos Negrete Farias, 27, of Phoenix, was sentenced on October 2, 2023, by United States District Judge Douglas L. Rayes to 37 months in prison, followed by three years supervised release. Farias pleaded guilty on February 8, 2023, to Possession of a Machine Gun. On January 31, 2022, Farias agreed to provide an Undercover Agent (UC) a “fun AR” and $3,000.00 in exchange for a .50 caliber rifle. Subsequently, Farias sent the UC a video of an unknown individual shooting a fully automatic AR-15 style rifle. Farias was arrested on February 8, 2022, during an exchange with the UC. At the time of his arrest, Farias was found with a machine gun conversion device in his pocket, knowing that it was a part designed and intended for use in converting a semi-automatic weapon into a machinegun. This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution. CASE NUMBER: CR-22-00149-PHX-DLR RELEASE NUMBER: 2023-167_Farias # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Yuma Man Sentenced to 52 Months in Prison for Conspiracy

body_text: PHOENIX, Ariz. – Omar Molina-Galeana, 22, of Yuma, was sentenced last week by United States District Judge David G. Campbell to 52 months in prison, followed by three years of supervised release. Molina-Galeana pleaded guilty on June 13, 2023, to Conspiracy. Between November 3, 2021, and April 14, 2022, Molina-Galeana obtained 48 firearms using nine “straw purchasers.” Each straw purchaser made false statements and representations regarding the actual purchaser of the firearm(s) to gun stores in Arizona. This case was 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime. The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution. CASE NUMBER: CR-22-00318-PHX-DGC RELEASE NUMBER: 2023-168_Molina-Galeana # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: Houston felon sentenced to federal prison for firearms violation in Jefferson County

body_text: BEAUMONT, Texas– A Houston man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs. Ashton Jherimiah Robertson, 25, pleaded guilty to possession of a firearm by a prohibited person and was sentenced to 63 months in federal prison by U.S. District Judge Marcia A. Crone on Oct. 31, 2023. According to information presented in court, on May 7, 2021, Robertson was pulled over in Beaumont for not wearing a seatbelt. During the stop, law enforcement officers discovered Robertson had outstanding warrants from Beaumont and Harris County. Robertson was arrested and the vehicle was searched. During the search, officers discovered a firearm. Further investigation revealed Robertson was a previously convicted felon and prohibited from owning or possessing firearms or ammunition. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove. # # #


title: Two sentenced for drug trafficking in the Eastern Panhandle

component: USAO - West Virginia, Northern

body_text: MARTINSBURG, WEST VIRGINIA – Two people have been sentenced for their roles in a drug trafficking operation in Hampshire and Mineral Counties. Dylan Carl Keckler, age 30, of Augusta, West Virginia, was sentenced today to six years in federal prison for distribution of fentanyl. According to court documents and statements made in court, Keckler sold fentanyl with a purple hue on several occasions. During a search warrant at Keckler ‘s home, officers found fentanyl and drug paraphernalia. Lisa Gail Crouse, age 42, of Cross Junction, Virginia, was sentenced today to 27 months in prison for conspiracy to possess with intent to distribute and to distribute heroin and fentanyl. Crouse was one of the distributors in the operation. Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted. U.S. District Judge Gina M. Groh presided.


title: Baltimore Man Sentenced to 24 Months in Federal Prison for Scheme to Obtain More Than $550,000 in Fraudulent Covid-19 CARES Act Loans

component: USAO - Maryland

body_text: Used CARES Act Loan Proceeds to Purchase a Mercedes-Benz and to Lease and Fully Furnish a Luxury Apartment in Downtown Baltimore Baltimore , Maryland – U.S. District Judge Richard D. Bennett sentenced Lawrence A. Walker, age 64, of Baltimore, Maryland, today to 24 months in federal prison, followed by 6 months of home confinement, and 3 years of supervised release, for conspiracy to commit wire fraud and fraudulently obtaining more than $262,000 through the Paycheck Protection Program (“PPP”), intended to provide financial assistance to small businesses under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Judge Bennett also ordered that Walker must forfeit the cash seized during the search, a Mercedes-Benz, and pay a money judgment and restitution of $232,152. The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Robert McCullough of the Baltimore County Police Department. According to the plea agreement, from March 2021 through December 2021, Walker and a co-conspirator engaged in a scheme to fraudulently obtain a PPP loan for Walker’s business, Nutscola Street Promotions, LLC (“Nutscola”). Walker was the owner and resident agent, but Nutscola had no employees at the time and was not in operation. As detailed in the plea agreement, on March 21, 2021, Walker and his co-conspirator submitted a PPP loan application that contained multiple misrepresentations, including that Nutscola had 13 employees and an average monthly payroll of $104,900.87. Walker and his co-conspirator fabricated a tax form and a February 2020 bank statement purportedly from Nutscola’s business account which were submitted in support of the loan application. Walker opened the Nutscola bank account on March 6, 2021, as part of the fraud scheme. Based on the false representations and fraudulent documentation, the PPP loan was funded and approximately $262,252 in loan proceeds was distributed to the Nutscola bank account. After receiving the loan proceeds, Walker provided his co-conspirator with a kickback for his work in obtaining the loan—two checks totaling $78,000, which was approximately 30 percent of the loan amount. Walker and his co-conspirator knew that, under the PPP rules, interest and principal on a PPP loan were eligible for forgiveness, if the business spent the loan proceeds on permissible items within a designated period of time and used a certain portion of the loan toward payroll expenses. To make it appear that the PPP loan funds were being used for legitimate purposes, on March 30, 2021, Walker signed an agreement with a payroll processor to provide payments using the PPP funds to purported employees of Nutscola, including Walker, his brother, and various other friends and associates. Use of the payroll services also created documentation that could be used to substantiate a request for the PPP loan to be forgiven. According to the plea agreement, a total of $159,000 in sham payroll payments were made using funds traceable to the PPP loan obtained by Walker and Nutscola. None of the purported employees were actually employed by Nutscola and several of the purported employees provided the funds directly back to Walker. Walker used the loan proceeds to purchase a Mercedes-Benz automobile valued at more than $76,000 and to lease and fully furnish a luxury apartment in downtown Baltimore that overlooked Camden Yards baseball stadium. Neither use of the funds was permissible under PPP rules. On December 31, 2021, Walker’s co-conspirator also fraudulently applied for an Economic Injury Disaster Loan (EIDL) under the CARES Act on behalf of Walker and Nutscola. The fraudulent EIDL loan did not close. On April 26, 2022, law enforcement executed a federal search warrant at Walker’s residence and seized multiple electronic devices, including Walker’s phone, as well as over $30,000 in cash hidden in a garbage bag inside a heater in Walker’s bedroom. The $30,000 in cash constituted fraudulently obtained PPP funds. Walker has made no payments in connection with the PPP loan obtained for Nutscola, and the entire PPP loan amount of $262,252 remains outstanding. The District of Maryland Strike Force is one of three strike forces established throughout the United States by the U.S. Department of Justice to investigate and prosecute COVID-19 fraud, including fraud relating to the CARES Act. The CARES Act was designed to provide emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. The strike forces focus on large-scale, multi-state pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can 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 . United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation and thanked the Small Business Administration Office of Inspector General for its assistance. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the case. He also recognized the assistance of the Maryland COVID-19 Strike Force Paralegal Specialist Joanna B.N. Huber. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md . # # #


title: KC Man Pleads Guilty to Gun Trafficking, Drug Trafficking

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to traffic firearms, including machine guns, and to drug trafficking. Cody Bonhomme, 30, pleaded guilty before U.S. District Judge Greg Kays to one count of conspiracy to traffic firearms and to one count of conspiracy to distribute cocaine. By pleading guilty today, Bonhomme admitted that he illegally sold nine firearms, including six that had been converted to machine guns, 20 machine gun conversion devices, and cocaine to a confidential informant and an undercover federal agent on several occasions. Bonhomme admitted that he participated in the conspiracy to traffic firearms from March 1 to May 31, 2023. Those firearms included four Anderson AM-15 multi-caliber semi-automatic pistols converted to machine guns, a Glock .40-caliber pistol converted to a machine gun, a DPMS multi-caliber converted to a machine gun, an Anderson AM-15 multi-caliber semi-automatic pistol, a Polymer80 9mm pistol, and a Polymer80 pistol with no serial number. On May 31, 2023, law enforcement officers executed search warrants at Bonhomme’s residence and elsewhere. Officers arrested Bonhomme and others and seized more than 100 firearms (many of which had been converted to machine guns), machine gun conversion devices, high-capacity magazines, 4.5 kilograms of purported marijuana, and other contraband. Bonhomme was in possession of multiple machine guns and approximately 673 grams of suspected cocaine. Under federal statutes, Bonhomme is subject to a mandatory minimum sentence of five years in federal prison without parole up to a sentence of 65 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department. Project Safe Neighborhoods This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Oregon Woman Pleads Guilty to Union Embezzlement

body_text: BOSTON – An Oregon woman, formerly of Middleborough, pleaded guilty today in federal court in Boston to embezzling nearly $40,000 from a labor union. Andrea Anderson, 61, pleaded guilty to one count of embezzlement from a labor union. U.S. District Court Judge Patti Saris scheduled sentencing for Feb. 27, 2024. Anderson was charged on Sept. 6, 2023. From approximately 2013 through July 2022, Anderson worked as a part-time administrative employee of the Brotherhood of Shoe and Allied Craftsman (BSAC), whose union office was located inside the garage of Anderson’s father’s residence in Lakeville. Anderson’s duties included signing checks, secretarial work and paying bills. Additionally, Anderson was a signatory on the union bank account, signed and prepared checks and had a union debit card. During her tenure working for BSAC, Anderson embezzled a total of $39,169 from the union. She repaid BSAC some $8,000 leaving a loss to BSAC of $30,316. The charge of labor embezzlement provides for a sentence of up to five years in prison, up to two years supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of the Criminal Division is prosecuting the case.


title: Clewiston Felon Charged With Multiple Firearm And Drug Trafficking Offenses

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Javier Velasquez, Jr. (37, Clewiston) with two counts of distribution cocaine, three counts of possessing a firearm as a convicted felon, illegal possession of a machinegun, and carrying of firearms during and in relation to a drug trafficking crime. If convicted on all counts, Velasquez, Jr. faces a minimum mandatory penalty of five years, up to life, in federal prison. The indictment also notifies Velasquez, Jr. that the United States intends to forfeit the firearms which are alleged to have facilitated some of the offenses. According to the indictment, Velasquez, Jr. committed the offenses between July 13 and September 19, 2023. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Mark Morgan. 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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Alameda Resident Pleads Guilty To Four Counts Of Wire Fraud, Admits Operating A Ponzi Scheme To Dupe Victims Out Of Millions Of Dollars

component: USAO - California, Northern

body_text: SAN FRANCISCO - Long Nguyen, a resident of Alameda, California, has pleaded guilty to charges related to his scheme to defraud at least 20 individuals out of approximately $2 million, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. Nguyen’s guilty plea was accepted by the Hon. Trina L. Thompson, United States District Judge. In his plea agreement, Nguyen, 35, admitted that, between September 2015 and July 2021, he operated a scheme to defraud his victims by making false statements about himself, his investment opportunities, how he would invest his victims’ money, and what he in fact did with their money. For example, pursuant to the plea agreement, Nguyen admitted making the following false statements, among others, to induce victims to give him money: that (i) he was a billionaire; (ii) other people who invested with him had received large payouts at a high rate of return; (iii) he was starting his own hedge fund; (iv) he had access to pre-IPO investment opportunities that he would and did invest victims’ money into; and (v) he managed a real estate investment trust that he would and did invest victims’ money into and that would provide victims with monthly income. Nguyen also admitted creating fake screenshots that purported to show victims’ growing investment account balances, and falsely telling victims not only that they were making money, but also that he would buy—and, in some cases, had bought—them Teslas and homes. According to the plea agreement, Nguyen also admitted that he did not, in fact, invest the majority of the money he received from his victims. Rather, Nguyen admitted spending victims’ money for his own personal use and operating a Ponzi scheme by using money he had received from some victims to pay other victims back. And Nguyen admitted he devised and executed his fraudulent scheme with the intent to defraud his victims. Nguyen was indicted by a federal grand jury on October 18, 2022, on four counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to his plea agreement, Nguyen pleaded guilty to all four counts on October 27, 2023. As part of his guilty plea, Nguyen has agreed to pay at least $1 million in restitution to his victims. Judge Thompson has scheduled Nguyen’s sentencing for February 2, 2024. Nguyen faces a statutory maximum of 20 years in prison for each of the wire fraud counts. As part of any sentence, Judge Thompson may also order the defendant to serve an additional term of supervised release, to pay a fine of up to $250,000 per count, and to pay restitution to his victims. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Assistant United States Attorney Kelsey Davidson is prosecuting the case with the assistance of Paralegal Specialist Lance Libatique and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI.


title: Unlicensed Wholesaler Sentenced To Prison For Distributing Foreign Unapproved New Drugs And Mail Fraud

body_text: Tampa, Florida – U.S. District Judge Mary S. Scriven today sentenced Marina Sievert (58, Dunedin) to two years in federal prison for mail fraud and introduction into interstate commerce of a foreign unapproved new drug. As part of her sentence, the court entered an order of forfeiture in the amount of $1.5 million, the proceeds of the charged criminal conduct, and ordered Sievert to pay $20,000 in criminal fines. Sievert had pleaded guilty on June 21, 2023. According to court documents, beginning in July 2019, and continuing through April 2022, Sievert owned and operated Beauty Forever Florida, Inc. (BFF), a Florida corporation that she used to order, purchase, import, receive, and distribute unapproved and misbranded drugs and medical devices. For instance, Sievert distributed Innotox Medytox and Meditoxin, which contained botulinum toxin type A, a highly potent toxin that could cause the disease botulism. Sievert acquired these products from a Korean pharmaceutical company that did not have the required approvals of the Food and Drug Administration (FDA) for distribution in the United States. Sievert made fraudulent representations on her BFF website to her customers, such as false and misleading claims that BFF’s products were “FDA approved,” had “cleared customs,” and had “guaranteed authenticity.” Sievert collected online orders from the BFF website and used the United States Postal Service and private and commercial interstate carriers to acquire the unapproved new drugs from foreign pharmaceutical retailers. Sievert then distributed the unapproved new drugs across the United States via the mail. This case was investigated by the United States Food and Drug Administration—Office of Criminal Investigations and Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Greg Pizzo.


title: U.S. Attorney's Office for District of Arizona to Collaborate With Colorado River Indian Tribes on Domestic Violence Cases

number: 2023-169_CRIT OVW Grant

body_text: Colorado River Indian Tribes Awarded Grant to Prosecute Domestic Violence and Sexual Assault Cases PHOENIX, Ariz. ⸺ The Department of Justice, Office of Violence Against Women awarded the Colorado River Indian Tribes (CRIT) $830,000 to prosecute domestic violence and sexual assault occurring on tribal lands. Among other things, this grant will fund a Tribal Special Assistant United States Attorney (SAUSA). The OVW grant will enhance the capacity of CRIT to hold domestic violence offenders accountable by partnering with the U.S. Attorney’s Office for the District of Arizona to increase law enforcement coordination, and strengthen the relationship between federal prosecutors and CRIT. Most importantly, the OVW grant will allow a CRIT SAUSA to prosecute these cases alongside Assistant U.S. Attorneys in federal court, while simultaneously staying connected to the tribe and identifying cases to remain in tribal court. “The prosecution of these crimes is a priority for my office,” said U.S. Attorney Gary Restaino. “I am very pleased that attorneys from my office will be able to work with a CRIT SAUSA, who will bring personal cultural sensitivity to this very difficult work.” “The Colorado River Indian Tribes is pleased and honored to have been selected to receive the Tribal Special Assistant United States Attorney grant,” said Amelia Flores, Chairwoman of the Colorado River Indian Tribal Council. “Domestic violence and sexual assault continue to harm our members, families, and children. The grant funding will allow us to improve communication and coordination among the various jurisdictions, apply best practices, improve outcomes of prosecution and community safety and ensure victims receive the services and support they need.” OVW provides leadership in developing the nation’s capacity to reduce violence through implementing Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw . ### For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news. RELEASE NUMBER: 2023-169_CRIT OVW Grant


title: U.S. Attorney’s Office and Justice Department’s Civil Rights Division Hold Forum on Civil Rights Protections for Religious Land Use

component: USAO - New Jersey

body_text: NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Rights Division held an outreach forum yesterday on combatting religious discrimination and promoting religious liberty through enforcement of the Religious Land Use and Institutionalized Persons Act (RLUIPA). RLUIPA is a federal law that protects persons and religious institutions from discriminatory and overly burdensome land use regulations. U.S. Attorney Philip R. Sellinger for the District of New Jersey and Deputy Assistant Attorney General Johnathan Smith of the Justice Department’s Civil Rights Division held the first of a series of public education and outreach events convened by the Civil Rights Division to ensure that communities know about their protections under RLUIPA and the work that the Justice Department is doing to enforce this important law. “Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. RLUIPA provides important protections for religious groups throughout New Jersey. At the same time, we will continue to use every legal authority at our disposal to bring justice to those who commit illegal acts of hate, and we will confront anti-Semitism, Islamophobia and any form of religious hatred wherever it occurs. No one in the United States of America should have to live in fear of violence or discrimination because of how they worship or where they or their family came from.” U.S. Attorney Philip R. Sellinger “The ability to practice one’s faith freely, and without interference, is a fundamental right, enshrined in our constitution and protected by our nation’s civil rights laws,” said Deputy Assistant Attorney General Smith. “The Justice Department is committed to protecting religious liberty. Recent events both domestically and abroad, have resulted in increasing threats to people of faith, including Jewish, Muslim, and other communities and institutions. It is in moments like this that we must refocus our efforts on protecting religious freedom for all people in our country.” U.S. Attorney Sellinger, Deputy Assistant Attorney General Smith, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections and attorneys who have experience litigating RLUIPA cases spoke at the event. Approximately 100 members of many religious communities, including Muslim, Jewish and Christian communities, attended the event. For more information about the event and others the Civil Rights Division plans to hold around the country, please see the department’s RLUIPA’s website . All events are open to the public. RLUIPA was passed unanimously by Congress and signed into law on Sept. 22, 2000, and contains provisions covering religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the Department has opened over 150 formal investigations and filed 28 lawsuits and 34 friend of the court briefs related to RLUIPA’s land use provisions, including several in the District of New Jersey. Since 2016, the U.S. Attorney’s Office has filed four lawsuits and two friend of court brief’s related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship . Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at www.justice.gov/usao-nj/civil-rights-enforcement/complaint or call the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal on the Place to Worship Initiative website.


title: Massachusetts Man Sentenced for Straw Purchase Conspiracy

body_text: PORTLAND, Maine: A Brockton, Massachusetts man was sentenced today in U.S. District Court in Portland for conspiring to violate federal firearms laws. U.S District Judge Nancy Torresen sentenced Antoine Montrond , 23, to a year plus one day in prison followed by three years of supervised release. Montrond pleaded guilty on April 26, 2023. According to court records, in January 2020, Montrond and a co-conspirator used a straw purchaser to buy two firearms from a store in Kittery. The purchaser falsely indicated they were the true purchaser of the firearms when in fact they were buying them for Montrond and his co-conspirator. In May 2020, police recovered one of the firearms, a Glock Model 23 .40 caliber pistol, from Montrond during a traffic stop. In total, Montrond’s co-conspirators succeeded in illegally straw purchasing seven firearms; they were previously sentenced by Judge Torresen for their respective roles in the scheme. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. STRAW PURCHASING: A straw purchase is an illegal firearm purchase where the actual buyer of the gun, being unable to pass the required federal background check or desiring to not have his or her name associated with the transaction, uses a proxy buyer who can pass the required background check to purchase the firearm for him/her. Project Safe Neighborhoods : 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. To learn more information about Project Safe Neighborhood, visit www.justice.gov/psn . ###


title: Second Wiregrass Region Defendant Sentenced for Wire Fraud and Identity Theft

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced that a federal judge sentenced 26-year-old Jalen Kendel Whaley, a resident of Slocomb, Alabama, to 61 months in prison for his role in an identity theft scheme. According to his plea agreement and other court records, in 2020, Whaley and co-defendant Courtney Jamal Byrd, 29, from Headland, Alabama, operated a scheme through which they obtained and then used stolen identifying information, identification documents, and credit or debit cards. Whaley and Byrd transferred the stolen information physically and by digital means, including social media. They then used the identity information to make fraudulent financial transactions. Previously, Whaley and Byrd pleaded guilty to wire fraud and aggravated identity theft in federal court. On October 3, 2023, a judge sentenced Byrd to 51 months in prison. Whaley’s sentencing occurred on October 25, 2023. The FBI and Dothan Police Department investigated this case, with Assistant United States Attorney J. Patrick Lamb prosecuting.


title: Nevada Man Charged for Using Art Appraisal to Conceal Fraud

body_text: NEW ORLEANS, LOUISIANA - The United States Attorney’s Office announced today that Nevada resident, MICHAEL JON SCHOFIELD , age 76, has been charged on October 30, 2023 with misprision of a felony. The bill of information alleges that SCHOFIELD concealed wire fraud, by emailing an art appraisal that misrepresented SCHOFIELD’s honest assessment of the appraised art’s value. Misprision is punishable by up to three years imprisonment followed by up to one year of supervised release, a fine of up to $250,000, and a $100 mandatory special assessment fee. The United States Attorney’s Office reiterated that the bill of information is merely a charge and that the defendant’s guilt must be proven beyond a reasonable doubt. This case is being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit, is in charge of the prosecution.


title: Two Men Charged After Smuggling 22 Undocumented Noncitizens in a Water Truck

number: 2023-170_Varela-Verdugo, et al.

body_text: YUMA, Ariz. – Antonio Varela-Verdugo, a U.S. citizen, and Gilberto Villalva, a citizen of Mexico, were charged by complaint on October 25, 2023, with Conspiracy to Transport Illegal Aliens. The complaint alleges that Varela-Verdugo and Villalva conspired to smuggle 22 undocumented noncitizens in the tank of a water truck. On October 23, 2023, Yuma Station Border Patrol agents followed a water truck suspected of transporting undocumented noncitizens in its tank from California into Yuma, Arizona, where the water truck stopped at a local residence. Across the street, a Honda Civic, operated by Villalva, was suspected of waiting to guide the water truck to a local stash-house. Agents interdicted both vehicles after departing the stash-house and discovered 22 individuals, all citizens of Mexico, stuffed into the tank of the water truck. A conviction for Conspiracy to Transport Illegal Aliens carries a maximum penalty of up to 10 years in prison, a fine of $250,000, or both, and a term of up to three years supervised release. A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. Customs and Border Protection's U.S. Border Patrol - Yuma, conducted the interdiction and subsequent investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix Division, Yuma Office, is handling the prosecution. CASE NUMBER: 23-02657MJ RELEASE NUMBER: 2023-170_Varela-Verdugo, et. al. # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: U.S. Attorney’s Office for The Eastern District of Louisiana Announces Funding Awards During  Domestic Violence Awareness Month

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS - U.S. Attorney Duane A. Evans joins The Department of Justice, survivors, victim service providers, advocates, and communities nationwide in recognizing October as National Domestic Violence Awareness Month (DVAM). This is a time to center the experiences of survivors, honor those who lost their lives to domestic violence; express gratitude to the countless individuals in the movement to end violence; and raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As part of its monthlong observance of DVAM, the U.S. Attorney’s Office for the Eastern District of Louisiana (EDLA) is proud to announce that the Department’s Office on Violence Against Women (OVW) awarded $949,920 to EDLA to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking. Data from the most recent National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals. The announced grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes. Specifically, the Eastern District of Louisiana received the following funding awards for the 2023 fiscal year: OVW awarded $450,000.00 to Vietnamese Initiatives In Economic Training under the Grants to Enhance Culturally Specific Services for Victims of Sexual Assault, Domestic Violence, Dating Violence and Stalking Program (Culturally Specific Program) to help community-based organizations develop culturally relevant programs specific to American Indian and Alaska Native populations, Black, Asian-American, Native Hawaiian and Pacific Islander, Hispanic, and Tribal communities to support survivors. Through this new Culturally Specific Services Program project, Vietnamese Initiatives in Economic Training (VIET) will implement a project addressing increased community capacity to provide culturally specific resources and support for victims of domestic violence, dating violence, sexual assault, and stalking crimes and their families; strengthen criminal justice interventions, by providing training for law enforcement, prosecution, courts, probation, and correctional facilities on culturally specific responses to domestic violence, dating violence, sexual assault, and stalking; enhance traditional services to victims of domestic violence, dating violence, sexual assault, and stalking; work in cooperation with the community to develop education and prevention strategies highlighting culturally specific issues and resources regarding victims of domestic violence, dating violence, sexual assault, and stalking; and provide culturally specific resources and services that address the safety, economic, housing, and workplace needs of victims of domestic violence, dating violence, sexual assault, or stalking, including emergency assistance for the Asian and Vietnamese communities in Southeast Louisiana. OVW awarded $499,920.00 to Dillard University under the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (Campus Program ) to support colleges and universities to develop and strengthen effective security and investigation strategies for such crimes and to develop prevention education and awareness programs. The OVW award falls under the new Strengthening Culturally Specific Campus’ Approaches to Address Domestic Violence, Dating Violence, Sexual Assault, and Stalking Initiative to support new programs at Historically Black Colleges and Universities (HBCUs), Hispanic Serving Institutions (HSIs), and Tribal Colleges and Universities (TCUs). With this new award, Dillard University, in collaboration with its campus partners, will create culturally specific strategies tailored to LGBTQ and immigrant communities and work with the designated Campus technical assistance provider to build the capacity of the institution to develop a culturally specific, coordinated community response to address domestic violence, dating violence, sexual assault, and stalking by securing relevant partnerships, conducting trainings, and developing resources tailored to the campus community; develop an action plan to outline key strategies necessary to establish a coordinated community response; and establish a coordinated community response team that will oversee and implement project activities. U.S. Attorney Duane A. Evans commented: “I am pleased to announce that the Eastern District of Louisiana has been awarded funding from the Office on Violence Against Women.” “These awards highlight DOJ’s commitment to give our community partners the tools needed to enhance public safety through programs that specifically addresses domestic violence and sexual assault public safety initiatives.” “Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.” OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.]


title: Dallas Man Pleads Guilty to Receipt of Child Pornography from Butte County

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Cameron Andrew Garcia, 29, of Dallas, Texas, pleaded guilty today to two counts of receipt of visual depictions of children engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. According to court documents, Garcia formed an online relationship with a minor victim from Butte County and instructed the minor victim to send him sexually explicit photos and videos, which the victim did. Garcia later sent Instagram messages to the same victim, threatening to post sexually explicit images and videos of the victim to public websites unless the victim produced new sexually explicit images and videos for him and sent him money. Garcia also used the Instagram app and the internet to communicate with a second minor victim who he knew was under the age of sixteen, and solicited and received multiple videos of that victim engaged in sexually explicit conduct. When this second minor victim was not forthcoming with an additional picture, Garcia again resorted to extortion by threatening to post explicit content of the victim publicly. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall is prosecuting the case. U.S. District Judge John A. Mendez is scheduled to sentence Garcia on Feb. 13, 2024. On each count of conviction, Garcia faces a maximum statutory penalty of 20 years in prison (with a minimum sentence of five years in prison), mandatory restitution, up to a lifetime of supervised release, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . Click on the “resources” tab for information about internet-safety education.


title: Sacramento County Men Indicted for Money Laundering Conspiracy

body_text: SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment last week against brothers Denis Gutsu, 31, of Antelope, and Maxim Gutsu, 26, of Rancho Cordova, charging them with conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced. According to court documents, between December 2017 and March 2019, Denis Gutsu and Maxim Gutsu bought gift cards for a national retailer from persons who had obtained the gift cards using stolen credit card numbers. The Gutsu brothers bought these gift cards at a significant discount and then, usually within a day, sold the gift cards to an online gift card exchange. The brothers agreed with the exchange to sell these gift cards at a discount. In return, the online exchange passed on the discount to buyers who would quickly spend the gift cards. This sequence allowed the fraudulently obtained gift cards to be spent before the national retailer could void them due to fraud. This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case. If convicted, Denis Gutsu and Maxim Gutsu each face a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the money laundering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Rancho Cordova Man Pleads Guilty to Drug Importation and Money Laundering Offenses

body_text: SACRAMENTO, Calif. —Adan Navarro, 29, of Rancho Cordova, pleaded guilty today to conspiracy to import heroin, methamphetamine, and fentanyl pills, conspiracy to distribute and possess with intent to distribute heroin, methamphetamine, and fentanyl pills, and conspiracy to launder money to Mexico, United States Attorney Phillip A. Talbert announced. According to court documents, on June 2, 2020, Navarro coordinated and received a $20,000 cash payment on behalf of a Mexico-based drug trafficker in order to pay down a multi-kilogram heroin debt and to facilitate future larger shipments of heroin. On July 24, 2020, U.S. border agents seized a drug load that Navarro partially owned and coordinated. The load was seized immediately after it crossed from Mexico into the United States and contained approximately 21 pounds of pure methamphetamine, 2 kilograms of heroin, and 977 fentanyl-laced counterfeit prescription pills. Following this seizure, Navarro and an associate arranged to send additional money to a Mexico-based source of supply to coordinate a new shipment of drugs. This case was the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team (TRIDENT), with assistance from Customs and Border Protection, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Rancho Cordova Police Department, the Citrus Heights Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney David W. Spencer is prosecuting the case. Co-defendant Lionel Chavez pled guilty on March 21, 2023, and is scheduled to be sentenced on Dec. 12, 2023. Navarro is scheduled to be sentenced by Judge Dale A. Drozd on March 19, 2024. Navarro faces a maximum statutory penalty of life in prison and a $10,000,000 fine on each of three drug trafficking counts, and a maximum statutory penalty of 20 years in prison and a $500,000 fine for conspiracy to launder money. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.


title: Cornell Student Arrested for Making Online Threats to Jewish Students on Campus

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK – Patrick Dai, age 21, a junior at Cornell University who is originally from Pittsford, New York, was arrested today on a federal criminal complaint charging him with posting threats to kill or injure another using interstate communications. The announcement was made by United States Attorney Carla B. Freedman; Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); New York State Police Acting Superintendent Dominick L. Chiumento; and Cornell University Police Chief Anthony Bellamy. The complaint alleges that Dai posted threatening messages to the Cornell section of an online discussion site, including posts calling for the deaths of Jewish people and a post that said “gonna shoot up 104 west.” According to information provided by Cornell University Police and other public information, 104 West is a Cornell University dining hall that caters predominantly to Kosher diets and is located next to the Cornell Jewish Center, which provides residences for Cornell students. In another post, Dai allegedly threatened to “stab” and “slit the throat” of any Jewish males he sees on campus, to rape and throw off a cliff any Jewish females, and to behead any Jewish babies. In that same post, Dai threatened to “bring an assault rifle to campus and shoot all you pig jews.” The charges and the allegations in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. The charge filed against Dai carries a maximum term of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Dai is expected to make his initial appearance tomorrow in federal court in Syracuse, New York, before a United States Magistrate Judge. The FBI’s Joint Terrorism Task Force (JTTF), which includes the New York State Police, is investigating this case along with the Cornell University Police Department and the Ithaca Police Department. The United States Attorney’s Office for the Northern District of New York is prosecuting the case, in conjunction with the Counterterrorism Section of the Department of Justice.


title: United States Attorney’s Office Honors Law Enforcement Personnel for Exceptional Service

body_text: BOSTON – Acting United States Attorney Joshua S. Levy has announced the recipients of the 2023 Law Enforcement Awards. Over 100 federal, state and local law enforcement personnel and community leaders who have contributed to the success of federal cases during the 2022 calendar year are being recognized for their commitment to pursuing justice and public safety. Each year the U.S. Attorney in Massachusetts holds a formal ceremony to honor award recipients, which took place earlier today. These awards recognize federal agents, state police, local police, investigators, analysts and community leaders for their leadership, collaboration, investigative achievement and excellence, victim assistance and distinction in community engagement. Honorees were nominated by the Assistant U.S. Attorneys who prosecuted the cases. “Every successful investigation and prosecution in this office is a direct result of the outstanding work of these law enforcement professionals. Great police work rarely makes for flashy headlines, but my colleagues and I see the commitment and compassion of federal, state and local law enforcement officers every day. Their sole mission is to keep our communities safe, even when it means putting their own lives at risk. Today, we take this moment to thank them, and their families, for their sacrifices and commitment to public service,” said Acting U.S. Attorney Levy. “These awards reflect and honor only a small portion of the countless law enforcement professionals across the Commonwealth who serve and protect us every day.” The category of Excellence in Community Outreach & Prevention recognizes individuals, or a team of individuals, who have shown outstanding commitment and/or innovation in the area of law enforcement and community outreach to include training, relationship building, prevention programs and other similar activities. The following programs and agencies were honored today: Project Safe Neighborhoods “You Can Be Anything You Want to Be” Speaker Series Agency/Organization of Recipient(s) : Hampden County District Attorney’s Office; Holyoke Medical Center; Holyoke Police Department; University of Massachusetts Department of Communication Disorders Project Safe Childhood Training: Keeping Kids Safe and Secure Online Agency/Organization of Recipient(s) : Homeland Security Investigations The category of Investigative Achievement is reserved for those who substantially contributed to the mission of the U.S. Attorney’s Office and the Department of Justice. The following cases and agencies will be honored: U.S. v. Seth Bourget Agency/Organization of Recipient(s) : Department of Justice, Office of the Inspector General U.S. v. Junior Melendez, et. al Agency/Organization of Recipient(s) : Bureau of Alcohol, Tobacco, Firearms & Explosives; Worcester Police Department U.S. v. Dana Pullman, et. al Agency/Organization of Recipient(s) : Federal Bureau of Investigation; Internal Revenue Service, Criminal Investigations U.S. v. Binh Thanh Le, et. al Agency/Organization of Recipient(s) : U.S. Postal Inspection Service; Homeland Security Investigations; Massachusetts State Police The category of Investigative Excellence recognizes an individual whose actions led directly to the arrest of a dangerous subject or to the exposure of a significant criminal conspiracy. The following case and agency will be honored: U.S. v. Michael Cecchetelli, et. al Agency/Organization of Recipient(s) : Federal Bureau of Investigation U.S. v. Ronald Hall Agency/Organization of Recipient(s) : Homeland Security Investigations; Massachusetts State Police; Cranston (R.I.) Police Department The category of Outstanding Collaborative Investigation recognizes investigators from a multi-agency collaboration whose exceptional efforts to overcome significant challenges led to a successful conclusion. The following cases and agencies will be honored: U.S. v. Jammy Alphonse Agency/Organization of Recipient(s) : Boston Police Department; Department of Labor, Office of the Inspector General; Federal Bureau of Investigation; U.S. Secret Service U.S. v. Baystate Health Agency/Organization of Recipient(s) : U.S. Department of Health & Human Services, Office of Civil Rights U.S. v. Louis Coleman III Agency/Organization of Recipient(s) : Boston Police Department; Delaware State Police; Federal Bureau of Investigation; Wilmington (Del.) Police Department U.S. v. Cristina Lopez, et. al Agency/Organization of Recipient(s) : Drug Enforcement Administration; Homeland Security Investigations; Massachusetts State Police; U.S. Attorney’s Office District of Massachusetts, Financial Analyst; U.S. Treasury Inspector General for Tax Administration U.S. v. Brian Orlandella Agency/Organization of Recipient(s) : Homeland Security Investigations; Port Neches (Texas) Police Department The category of Exceptional Contribution to a Federal Investigation/Prosecution will honor the following agencies: Braintree Police K-9 Lucky Agency/Organization of Recipient(s) : Braintree Police Working Dog Foundation U.S. v. Cedric Cromwell, et. al Agency/Organization of Recipient(s) : Federal Bureau of Investigation; Internal Revenue Service, Criminal Investigations U.S. v. John Michael Rathbun Agency/Organization of Recipient(s) : East Longmeadow Police Department; Federal Bureau of Investigation; Longmeadow Fire Department; Longmeadow Police Department; Massachusetts State Police U.S. v. Antonio Santonastaso Agency/Organization of Recipient(s) : Department of Transportation, Office of the Inspector General The category of Victim Service will honor the following agencies: U.S. v. Hassan Abbas Agency/Organization of Recipient(s) : Federal Bureau of Investigation U.S. v. Bernadito Carvajal Agency/Organization of Recipient(s) : Andover Police Department; Drug Enforcement Administration


title: Oldsmar Man Indicted For Producing, Distributing, And Possessing Child Sexual Abuse Material

body_text: Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Justin Ryan Culmo, (39, Oldsmar) with three counts of production of child sex abuse material, one count of distribution, and one count of possession of child sexual abuse material. If convicted, Culmo faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison for each production count, a minimum mandatory 5 years, up to 20 years, for the distribution count, and up to 20 years in federal prison for the possession offense. The indictment also notifies Culmo that the United States intends to forfeit personal property that was used to facilitate the offenses. According to a previously filed complaint affidavit and the indictment, Culmo has been linked to an online community of individuals who regularly produce, distribute, and receive child sexual abuse material via hidden service websites also known as dark web sites. The websites Culmo accessed are exclusively dedicated to the sexual abuse of children. Culmo allegedly produced and distributed child sexual abuse material on these sites. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Stacie B. Harris. Any person who was, or knows of someone who may have been, a possible victim of Culmo is urged to contact HSI at 1-866-347-2423 or http://www.ice.gov/webform/hsi-tip-form . This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. If you see something, say something. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-347-2423 or by completing its online tip form . Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196. Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST (800-843-5678). Download Indictment


title: Gangster Disciples Member Sentenced to 17+ Years in Prison for Gun Charge


title: Martinsville Man Pleads Guilty to Methamphetamine and Gun Charge

component: USAO - Virginia, Western

body_text: ROANOKE, Va. – A Martinsville, Virginia man pled guilty last week in United States District Court to one count of possession with intent to distribute five grams or more of methamphetamine and one count of being a felon in possession of a firearm. Donald Edward Ponder, III, 36, will be sentenced on February 29, 2024. According to court documents, on May 4, 2022, officers with the Martinsville Police Department encountered Ponder walking towards Fidelity Bank in Martinsville, Virginia. Ponder had an outstanding warrant for his arrest and was known to local police. As Ponder approached the entrance of the bank, officers placed him under arrest for the outstanding warrant and escorted him away from bank customers and into the parking lot. During a subsequent search of Ponder, officers discovered a Jennings .22 caliber pistol in his right hip pocket and observed a black zip container hanging from his front belt loop. A search of that container revealed 17 individually packaged jewelry baggies containing approximately 11 grams of methamphetamine. Ponder told officers there was another firearm in his backpack. A search of the backpack revealed a Taurus G2C 9mm pistol, an additional G2C magazine, a baggie of jewelry bags, and a working electronic digital scale. Both pistols were fully loaded with one bullet in each chamber. Further investigation revealed the defendant had been previously convicted of a felony and was prohibited from possessing a firearm. At sentencing, Ponder faces a minimum sentence of five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsville Police Department investigated the case. Special Assistant United States Attorney J. Parker Gochenour, an Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section is prosecuting the case.


title: "John Doe" Indicted for Aggravated Identity Theft in Connection with Fraud to Acquire Passport and PUA Benefits

body_text: BOSTON – A man whose true identity is unknown and who has been residing in Dorchester has been indicted for mail fraud, false statement in a passport application, misuse of a social security number and aggravated identity theft. According to the charging documents, the defendant – referred to as John Doe – submitted an application for a passport using the name, date of birth and Social Security number of a victim. The passport was issued to John Doe. John Doe also used the victim’s name, date of birth and Social Security number to successfully apply for a Massachusetts driver’s license. John Doe then allegedly used the victim’s identity to apply for Pandemic Unemployment Assistance (PUA) and received over $6,000 in PUA funds. According to court documents, the victim has suffered garnishment of his wages for child support costs that John Doe has failed to pay. The charge of misuse of a social security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. The charge of false statement in a passport application provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charges of mail fraud and wire fraud provides for a sentence of up to 20 years in prison, three years supervised release, and a fine of up to $250,000. The charge of aggravated identity theft calls for a mandatory minimum sentence of two years in prison to be added to the felony committed while using the means of identification of another without lawful authority. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. The investigation was conducted by HSI’s Document and Benefit Fraud Task Force, a specialized investigative group comprising personnel from various state, local and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes. Assistant U.S. Attorney Brian J. Sullivan of the Major Crimes Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Drugmaker Nostrum and CEO Agree to Pay Up to $50 Million to Resolve Claims of Underpaying Rebates Owed Under Medicaid Drug Rebate Program

body_text: BOSTON – Nostrum Laboratories, Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000 and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension (Nitro OS). The variable amount of the settlement is based on Nostrum’s and Mulye’s financial condition. Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases that outpace inflation. These rebates are calculated by comparing the drug’s current price to the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later. As part of the settlement, Nostrum and Mulye admitted that: Nostrum acquired Nitro OS from another manufacturer in December 2015 and continued to market the product pursuant its preexisting FDA approval; In January 2018, Nostrum temporarily ceased manufacturing Nitro OS because the amount of lead in the product did not comply with updated 2018 FDA guidance. After modifying quantities of two inactive ingredients to reduce overall lead levels, Nostrum resumed manufacturing and marketing Nitro OS in August 2018. Nostrum characterized the relaunched version of Nitro OS as a “reformulation” but Nostrum did not add or subtract any ingredients and the active ingredients remain unchanged. Nitro OS also remained in the same dosage form and strength as it did prior to 2018. Nostrum continues to market this version of Nitro OS under the same FDA Approval as the pre-2018 version and maintains that it is legal to do so because no major changes have been made to the drug; After relaunching Nitro OS in August 2018, Nostrum increased its price from $474.75 to $2,392.32 per bottle, which triggered significantly higher Medicaid Drug Rebate invoices from the States on account of the inflation-based rebate and; Beginning with the fourth quarter of 2018 through the first quarter of 2020 (when Nostrum withdrew from the Medicaid Drug Rebate Program), Nostrum and Mulye did not pay these entire invoiced amounts, despite learning that the larger rebate invoices were tied to the price increase and inflation-based rebate and being notified by CMS that it should pay the higher calculated amounts. Instead, and despite prior communications to FDA that no “major changes” had been made to the drug, Nostrum wrote CMS arguing that it should not have to pay the inflation-based rebate because this version of Nitro OS is actually a “new” drug and therefore Nostrum should not have to pay rebates based upon the prior version’s applicable price. The United States contends that, as a result of these actions, it has certain civil claims against Nostrum and Mulye from Oct. 1, 2018 through March 31, 2020 for failing to pay the required rebate amounts owed for Nitro OS as required by the Rebate Statute and Rebate Agreement and as invoiced by state Medicaid programs. “The Medicaid program is a critical safety net, providing health care to some of the most vulnerable Americans. By deliberately failing to pay required rebates to Medicaid, Nostrum diverted resources from needy patients to generate more profits. This office will not turn a blind eye to such flagrant abuse and greed, especially when it involves patients and taxpayers,” said Acting United States Attorney Joshua S. Levy. “The department is committed to ensuring that pharmaceutical manufacturers meet their obligations to taxpayer funded health care programs, which support elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will hold accountable those who knowingly fail to satisfy these obligations.” “The Medicaid program provides medical treatment for some of our most vulnerable citizens, and when a drug company improperly circumvents rules designed to protect the Medicaid program from overpaying for prescription drugs, the American taxpayer pays the price,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “As illustrated by this settlement, pharmaceutical companies that disregard their obligation to play by the rules for financial gain will be held accountable for those actions.” “Nostrum Laboratories reduced the amount it paid to the Medicaid program by improperly calculating the rebates it owed, even after hiking the cost of one of their drugs by over 400%,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement is a win for taxpayers by ensuring that that this pharmaceutical company cannot boost its bottom line at the expense of the Medicaid program and the vulnerable population it serves.” The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the District of Massachusetts with assistance from HHS OIG and the FBI. Tips and complaints 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). Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; HHS-OIG SAC Coviello; and FBI SAC Cohen made the announcement today. Assistant U.S. Attorney Evan Panich of the Affirmative Civil Enforcement Unit and Trial Attorneys Augustine Ripa and Michael Hoffman of the Justice Department’s Civil Division handled the matter. The claims resolved by the settlement are allegations only and there has been no determination of liability.