title: International Tax Advisor Arrested For Helping To Conceal Over $100 Million Of Income For High-Net-Worth U.S. Taxpayers

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced the indictment of FRANK BUTSELAAR for participating in a conspiracy to engage in tax fraud over the course of over seven years. BUTSELAAR was an advisor to high-net-worth DJs and fashion industry clients who earned income all over the world (the “Clients”). The Clients earned millions of dollars every year. In certain years, these Clients became U.S. tax residents, meaning they had a legal obligation to pay U.S. taxes on their worldwide income. BUTSELAAR, working with other professionals, devised a strategy to unlawfully conceal from the U.S. Government millions of dollars of income the Clients were earning outside the United States during years they were U.S. tax residents. After having been arrested earlier this year following a request from the United States to Italy for provisional arrest for purposes of extradition, BUTSELAAR was taken back into custody earlier this week in Italy following a favorable ruling on the U.S. extradition request. U.S. Attorney Damian Williams said: “As alleged, this defendant and his co-conspirators devised strategies to file false and fraudulent returns with the IRS for U.S. taxpayers of incredible means. Butselaar, as a tax advisor to many wealthy clients, knew intimately the responsibility his clients had to pay U.S. taxes on their income but ignored this obligation, opting instead to deceptively hide this income from the IRS. Our Office will continue to pursue those who use their expertise to unlawfully conceal income.” IRS-CI Special Agent in Charge Thomas Fattorusso said: “Butselaar thought he was above the law. It’s alleged he operated this international fraud scheme to conceal millions of dollars in income earned by his high-profile clients around the world. This wasn’t just a get rich quick scheme, but rather Butselaar sought to play the long game and used a variety of sophisticated techniques to perpetuate this tax fraud over the course of several years. IRS-CI has a global reach, and we thank our J5 collaborators for their valuable partnership on this case. For Butselaar, it’s time to pay the tab.” As alleged in the Indictment unsealed in White Plains federal court: [1] FRANK BUTSELAAR conspired to defraud the United States and to conceal from the IRS through fraudulent, deceitful, and dishonest means the existence of millions of dollars of worldwide income generated by various clients, including Client-1 and Client-2, who are internationally renowned DJs (the “DJ Clients”). The DJ Clients, in particular, utilized offshore entities that at all relevant times BUTSELAAR and his co-conspirators knew the DJ Clients beneficially owned and effectively controlled. These entities were, in turn, held by trusts that the DJ Clients established on the advice of BUTSELAAR and others (the “Offshore Structures”). As part of their efforts to conceal the DJ Clients’ worldwide income, BUTSELAAR and his co-conspirators created and implemented a fraudulent scheme to use straw beneficiaries to conceal the income held within the DJ Clients’ Offshore Structures from the IRS. In addition, FRANK BUTSELAAR and his co-conspirators devised and implemented similar fraudulent schemes for certain fashion industry clients (the “Fashion Industry Clients”) that involved fraudulent transfers of the Fashion Industry Clients’ overseas companies to family members, knowing that the Fashion Industry Clients would maintain beneficial ownership of the overseas companies and the income therefrom. The tax evasion schemes, created and implemented by FRANK BUTSELAAR and his co-conspirators, caused to be filed Forms 1040 for the DJ Clients and the Fashion Industry Clients (during the time those Clients were U.S. tax residents) that fraudulently omitted over $100 million in worldwide income earned by those Clients. * * * BUTSELAAR, 63, of Naarden, Netherlands, was charged with one count of conspiracy to defraud the United States, which carries a maximum penalty of five years in prison, and five counts of aiding and abetting the filing of false tax returns, each of which carries a maximum penalty of three years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the outstanding investigative work of the IRS-CI and the Joint Chiefs of Global Tax Enforcement (“J5”). Mr. Williams also thanked the Justice Department’s Office of International Affairs and Italy’s Ministero della Giustizia, Arma dei Carabinieri, and Guardia di Finanza for their assistance. The J5 works together to gather information, share intelligence, and conduct coordinated operations against transnational financial crimes. The J5 includes the Australian Taxation Office, the Canadian Revenue Agency, the Dutch Fiscal Intelligence and Investigation Service, His Majesty’s Revenue and Customs from the United Kingdom, and the IRS-CI from the U.S. This case is being handled by the Office’s White Plains Division and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Shiva H. Logarajah and Nicholas S. Bradley are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. U.S. v. Butselaar Indictment


title: Providence Man Admits to Passport Fraud, Theft of Government Funds and Fraudulent Use of Another Person’s Identity to Obtain  Social Security Disability Benefits

component: USAO - Rhode Island

body_text: PROVIDENCE – A Providence man admitted to a federal judge that he fraudulently collected more than $230,000 in Social Security Administration (SAA) disability benefits in his own name, all the while continuing to work using another person’s identity, announced United States Attorney Zachary A. Cunha. Additionally, Leonardo Durango, 62, admitted that he used the name of that same person, without his knowledge, to fraudulently collect more than $26,000 in federally funded COVID-related unemployment benefits, and that he also made a false statement in a U.S. passport application. Durango admitted that he was not entitled to receive the funds. Durango pleaded guilty on Thursday to charges of concealment to disclose affecting rights to SSA benefits payments, passport fraud, and theft of government property. Durango is scheduled to be sentenced on October 12, 2023. The defendants’ sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. The case is being prosecuted by Assistant United States Attorney Ly T. Chin. The matter was investigated by the U.S. Department of State, U.S. Social Security Administration, and U.S. Department of Labor. ###


title: East St. Louis Drug Dealer Sentenced to 16 Years in Federal Prison

component: USAO - Illinois, Southern

body_text: EAST ST. LOUIS, Ill. – A U.S. District judge sentenced an East St. Louis man to spend 16 years in federal prison on drug distribution and firearm charges. Mosezell Jones, 43, pled guilty to one count of possession with intent to distribute a controlled substance and one count of felon in possession of a firearm. “Illicit drugs and firearms result in fear and destruction to a neighborhood, and families in East St. Louis are better off with one less criminal infecting the community,” said U.S. Attorney Rachelle Aud Crowe. “I applaud the officers for apprehending this defendant.” “Illinois State Police special agents are committed to seeking out and holding accountable those individuals pushing life-destroying meth into our communities,” said ISP Director Brendan F. Kelly. According to court documents, undercover agents with the Metropolitan Enforcement Group of Southern Illinois of ISP conducted several controlled buys of a total of approximately 25 grams of methamphetamine from Jones at his home in East St. Louis in June 2021. Following the operation, officers executed a search warrant on Jones’s home and detained him. From the search, officers recovered approximately 140 grams of methamphetamine, an AK-47-style rifle, 12-guage shotgun, a revolver, ammunition and drug paraphernalia. Due to prior felony convictions, Jones is unable to legally possess firearms. During the investigation, officers discovered Jones was using a pill press machine to disguise methamphetamine, an addictive and deadly stimulant, as multi-colored tablets that appeared similar to candy or vitamins. ISP led the investigation with support from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).


title: Santa Fe Man Pleads Guilty to Firearms Offense

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Gilbert Michael Coriz pled guilty to being a felon in possession of firearms and ammunition. Coriz, 37, of Santa Fe, will remain in custody pending sentencing, which has not been scheduled. A federal grand jury indicted Coriz on Dec. 8, 2021. According to court records, on Jan. 1, 2021, officers from the Santa Fe Police Department responded to a report of shots fired at a residence on Camino Capitan. After obtaining a search warrant, officers cleared and searched the residence and found Coriz allegedly hiding in a water heater closet in the garage. Officers also found two firearms and various types of ammunition. Coriz was previously convicted of aggravated battery, felon in possession of a firearm, tampering with evidence, possession of a controlled substance and residential burglary. As a previously convicted felon, Coriz cannot legally possess firearms or ammunition. At sentencing, Coriz faces up to ten years on prison. The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe Police Department. Assistant United States Attorney Samuel A. Hurtado is prosecuting the case. # # # 23-150


title: Suspected Russian Intelligence Operative Extradited from Estonia to Face Charges Related to Providing American-Made Electronics and Ammunition to Russian Military

component: USAO - New York, Eastern

body_text: Vadim Konoshchenok will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn on an indictment charging him with conspiracy and other charges related to a global procurement and money laundering network on behalf of the Russian government . Konoshchenok, a Russian citizen with alleged ties to Russia’s Federal Security Service (FSB), was arrested in Estonia on a provisional arrest warrant issued from the Eastern District of New York and extradited from Estonia to the United States on July 13, 2023. Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General for the Justice Department’s Criminal Division; Andrew C. Adams, Director, Task Force KleptoCapture; Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan Carson, Special Agent-in-Charge, U.S. Department of Commerce, Office of Export Enforcement, New York Field Office (DOC), announced the extradition. “As alleged, the defendant was a critical participant in a scheme to provide sensitive, American-made electronics and ammunition in furtherance of Russia’s war efforts and weapons development, violating U.S. export controls, economic sanctions and other criminal statutes,” stated United States Attorney Peace. “Let this case serve as the latest example that no matter where you are in the world, if you violate U.S. export controls or evade U.S. sanctions, we will not rest until you face justice in a U.S. courtroom.” United States Attorney Peace thanked the Department of Justice’s Office of International Affairs and Estonian authorities, including Estonian Internal Security Service (KAPO) and the Prosecutor General’s Office of the Republic of Estonia for their significant assistance in securing foreign evidence, the arrest and extradition of Konoshchenok. “In early December, I met with Estonian counterparts in Tallinn regarding the pending U.S. request to arrest Vadim Konoshchenok,” stated Assistant Attorney General Polite. “I would like to pay tribute to Prosecutor General Andres Parmas’s team, and to the Estonian Internal Security Service, for their prioritization of this case, and for their close coordination with the Department of Justice’s Office of International Affairs on the provisional arrest and extradition of Konoshchenok.” “This defendant, who is suspected of having ties to the FSB, smuggled hundreds of thousands of illicit munitions in support of Moscow’s war machine, using front companies to conceal his criminal enterprise,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice remains steadfast in its mission to counter Russian aggression and we will give no quarter to those who violate U.S. sanctions to further fuel its war effort.” “Vadim Konoshchenok allegedly provided cutting edge, American-developed technologies and ammunition to Russia for use in their illegal and unprovoked invasion of Ukraine. Far from the battlefield, Konoshchenok will now face justice in an American courthouse, thanks to the staunch commitment of our Estonian partners and the federal prosecutors and agents who have dedicated their time and talents to disrupting the Kremlin’s war machine,” stated KleptoCapture Director Adams. “Last year, charges were announced against the defendant and others involved in this complex transnational criminal scheme under the direction of Russian intelligence services. Today’s extradition of Vadim Konoshchenok is a testament to the team of law enforcement professionals dedicated to enforcing U.S. export controls,” stated DOC Special Agent-in-Charge Carson. “We will continue to enforce the unprecedented export controls implemented in response to Russia’s illegal war against Ukraine and the Office of Export Enforcement intends to pursue these violators wherever they may be worldwide.” According to the indictment and court filings, the defendants were affiliated with Serniya Engineering and Sertal LLC (the “Serniya Network”), Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal and several individuals and companies engaged in the scheme, calling them “instrumental to the Russian Federation’s war machine.” As alleged in the indictment, the Serniya Network was licensed to conduct highly sensitive and classified procurement activities by Russia’s FSB, Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB. In electronic communications, Konoshchenok explicitly identified himself as an FSB “Colonel” and enclosed a photograph of himself wearing his FSB uniform. Additionally, a review of electronic communications equipment recovered from Konoshchenok revealed saved contacts beginning with the prefix “FSB” and email addresses from “FSB[.]ru” domains. One of Konoshchenok’s calendar entries referenced an “FSB order.” As described in the indictment, Estonia was a popular transshipment point, where Konoshchenok would smuggle U.S.-origin items across the border into Russia. On October 27, 2022, Konoshchenok was detained by Estonian authorities attempting to cross into Russia from Estonia with approximately 35 different types of semiconductors and electronic components, including several U.S.-origin and export-controlled items. Konoshchenok has also been repeatedly stopped by Estonian border officials attempting to smuggle hundreds of thousands of American-made and export-controlled rounds into Russia, including 6.5 mm, 7 mm, .338 and .308 magnum rounds, which are commonly used by snipers, as well as military-grade .223 rounds. To date, over half a ton of military-grade ammunition linked to Konoshchenok has been recovered or interdicted before being smuggled into Russia. Konoshchenok used an Estonian front company called “Stonebridge Resources” and communicated frequently with other co-conspirators about sourcing, transporting and paying for controlled items. In electronic communications, Konoshchenok is clear that his fee is “10%” because he “can’t do less. Sanctions . . . Sanction item for 10%.” If convicted, the defendant faces a maximum of 30 years’ imprisonment. The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell, Craig Heeren, and Matthew Skurnik are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section. The Defendant : VADIM KONOSHCHENOK Age: 48 Tallin, Estonia E.D.N.Y. Docket No. 22-CR-409 (HG)


title: Electronic Health Records Vendor NextGen Healthcare Inc. to Pay $31 Million to Settle False Claims Act Allegations

component: Civil Division

body_text: NextGen Healthcare Inc. (NextGen), an electronic health record (EHR) technology vendor, has agreed to pay $31 million to resolve allegations that NextGen violated the False Claims Act (FCA) by misrepresenting the capabilities of certain versions of its EHR software and providing unlawful remuneration to its users to induce them to recommend NextGen’s software. “Electronic health records are an essential part of our health care system” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “Every day, millions of patients and health care providers across the country rely on such records to accurately identify and transmit vital health information. The Civil Division is committed to protecting the integrity of the electronic health records software that is available to providers and the process by which they decide which software to select.” The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage health care providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments to eligible health care providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria; the company must also identify any software components on which their EHR relies to perform the criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS. In a complaint filed in conjunction with the settlement, the United States contends that NextGen falsely obtained certification for its software in connection with the 2014 Edition certification criteria published by HHS’s Office of the National Coordinator. Specifically, the government alleges that NextGen relied on an auxiliary product designed only to perform the certification test scripts, which concealed from the certifying entity that NextGen’s EHR lacked critical functionality. The government alleges that, consequently, the EHR that NextGen ultimately released to its users lacked certain required functionalities, including the ability to record vital sign data, translate data into required medical vocabularies, and create complete clinical summaries. In its complaint, the government also alleges that NextGen violated the Anti-Kickback Statute, which prohibits anyone from offering or paying, directly or indirectly, any remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. In its complaint, the government contends that, notwithstanding this prohibition, NextGen knowingly gave credits, often worth as much as $10,000, to current customers whose recommendation of NextGen’s EHR software led to a new sale. The government alleges that other remuneration, including tickets to sporting events and entertainment, was also provided to induce purchases and referrals. “Electronic health records play a pivotal role in the provision of safe, effective health care, and the testing and certification process of the EHR Incentive Program was intended to provide assurances to providers that their EHR can perform certain important functions,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “With this settlement, our office has now resolved five investigations into misconduct by EHR companies, demonstrating our commitment to ensuring that EHR companies are held responsible for their misrepresentations.” “Medical providers must be able to rely on electronic health records systems to correctly document and process important health data for continuity of patient care,” said Special Agent in Charge Maureen R. Dixon for the HHS, Office of the Inspector General (HHS-OIG). “We will continue to work with our valuable law enforcement partners to evaluate allegations brought under the False Claims Act and ensure the integrity of Medicare programs.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Toby Markowitz and Elizabeth Ringold, health care professionals at a facility that used NextGen’s software. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers in this case will receive $5,580,000. The qui tam case is captioned United States ex rel. Markowitz et al. v. NextGen Healthcare Inc., Case No. 2:18-cv-195 (D. Vt.). The investigation and pursuit of this matter illustrate the government’s emphasis on combating health care fraud, including in the health care technology arena. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). 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 U.S. Attorney’s Office for the District of Vermont. Investigative support and assistance was provided by the Department of Health and Human Services, Office of Counsel to the Inspector General and OIG Office of Investigations. The matter was handled by Fraud Section Attorneys Christelle Klovers and Kelley Hauser and Assistant U.S. Attorney Lauren Almquist Lively for the District of Vermont. The claims in the relators’ and the government’s complaints are allegations only and there has been no determination of liability. Settlement Complaint


title: Chicago Man Sentenced to 30 Years in Federal Prison for Enticing Girls in the Philippines To Produce Sexually Explicit Images

component: USAO - Illinois, Northern

body_text: CHICAGO — A Chicago man has been sentenced to 30 years in federal prison for enticing at least nine girls in the Philippines to produce sexually explicit photos and videos of themselves and send them to him. KARL QUILTER, 58, pleaded guilty last year to a federal charge of sexual exploitation of children. U.S. District Judge Virginia M. Kendall imposed the 30-year sentence after a hearing July 7, 2023, in federal court in Chicago. Quilter admitted in a plea agreement that he communicated with the girls via Facebook, Viber, and Skype from 2017 to 2020. Quilter referred to the minor victims as his “girlfriends” to manipulate and pressure them into sending specific types of photos and videos that he demanded. Quilter also preyed on the victims’ financial difficulties, using money transfers to the victims’ families to entice the girls to take the sexually explicit images. In a message to one 16-year-old victim in 2020, Quilter promised to send money to her family for medicine and food if she complied with his demands. “If u do what I tell you… I will make sure u can buy food for 2 weeks and your medication,” Quilter said in the message. “Think of your little sister that she can e[a]t for 2 weeks everyday 3 meals a day and u get well.” Quilter traveled to the Philippines in 2017 and 2018 and explicitly referenced his plans to have sex with several of the minors when he next visited the country in December 2020. Law enforcement arrested Quilter in Chicago in November 2020. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sean Fitzgerald, Special Agent-in-Charge of Homeland Security Investigations in Chicago. The Chicago Police Department provided valuable assistance. “Victim by victim, and message by message, defendant used social media and the internet to target and groom young Filipino girls,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “This was not a one-time aberration, but rather a years-long pattern of predatory abuse and exploitation of minors.” If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.


component: Criminal Division

body_text: A Russian citizen with alleged ties to Russia’s Federal Security Service (FSB) will be arraigned today on an indictment charging him with conspiracy and other charges related to a global procurement and money laundering network on behalf of the Russian government. According to court documents, Vadim Konoshchenok, 48, of Tallinn, Estonia, was arrested in Estonia on a provisional arrest warrant issued from the Eastern District of New York and extradited from Estonia to the United States on July 13. “This defendant, who is suspected of having ties to the FSB, smuggled hundreds of thousands of illicit munitions in support of Moscow’s war machine, using front companies to conceal his criminal enterprise,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice remains steadfast in its mission to counter Russian aggression and we will give no quarter to those who violate U.S. sanctions to further fuel its war effort.” “In early December, I met with Estonian counterparts in Tallinn regarding the pending U.S. request to arrest Vadim Konoshchenok,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “I would like to pay tribute to Prosecutor General Andres Parmas’s team, and to the Estonian Internal Security Service, for their prioritization of this case, and for their close coordination with the Department of Justice’s Office of International Affairs on the provisional arrest and extradition of Konoshchenok.” “As alleged, the defendant was a critical participant in a scheme to provide sensitive, American-made electronics and ammunition in furtherance of Russia’s war efforts and weapons development, violating U.S. export controls, economic sanctions and other criminal statutes,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Let this case serve as the latest example that no matter where you are in the world, if you violate U.S. export controls or evade U.S. sanctions, we will not rest until you face justice in a U.S. courtroom.” “The FBI and our partners work diligently to bring to justice those who assist Russia’s military interests and put national security at risk,” said Assistant Director Suzanne Turner of the FBI’s Counterintelligence Division. “According to the allegations in the indictment, Konoshchenok helped the FSB smuggle military grade ammunition and a range of nuclear and computer equipment which could be used as instruments of war. Today’s indictment is a fierce reminder of the lengths Russian intelligences services will go to advance Russia’s military capabilities. The FBI is deeply committed to disrupting and dismantling these actions.” According to the indictment and court filings, Konoshchenok and his co-defendants were affiliated with Serniya Engineering and Sertal LLC (the Serniya Network), Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications. Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal and several individuals and companies engaged in the scheme, calling them “instrumental to the Russian Federation’s war machine.” As alleged in the indictment, the Serniya Network was licensed to conduct highly sensitive and classified procurement activities by Russia’s FSB, Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB. According to court documents, in electronic communications, Konoshchenok explicitly identified himself as an FSB “Colonel” and enclosed a photograph of himself wearing his FSB uniform. Additionally, a review of electronic communications equipment recovered from Konoshchenok revealed saved contacts beginning with the prefix “FSB” and email addresses from “FSB[.]ru” domains. One of Konoshchenok’s calendar entries referenced an “FSB order.” As described in the indictment, Estonia was a popular transshipment point, where Konoshchenok would smuggle U.S.-origin items across the border into Russia. On Oct. 27, 2022, Konoshchenok was detained by Estonian authorities while attempting to cross into Russia from Estonia with approximately 35 different types of semiconductors and electronic components, including several U.S.-origin and export-controlled items. Konoshchenok has also been repeatedly stopped by Estonian border officials attempting to smuggle hundreds of thousands of American-made and export-controlled rounds into Russia, including 6.5 mm, 7 mm, .338 and .308 magnum rounds, which are commonly used by snipers, as well as military-grade .223 rounds. Konoshchenok used an Estonian front company called Stonebridge Resources and communicated frequently with other co-conspirators about sourcing, transporting and paying for controlled items. In electronic communications, Konoshchenok is clear that his fee is “10%” because he “can’t do less. Sanctions . . . Sanction item for 10%.” To date, over half a ton of military-grade ammunition linked to Konoshchenok has been recovered or interdicted before being smuggled into Russia. If convicted, Konoshchenok faces a maximum penalty of 30 years in prison. The FBI is investigating the case. The Justice Department’s Office of International Affairs and the Estonian authorities, including Estonian Internal Security Service (KAPO) and the Prosecutor General’s Office of the Republic of Estonia, provided significant assistance in securing foreign evidence, the arrest and extradition of Konoshchenok. Assistant U.S. Attorneys Artie McConnell and Matthew Skurnik for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case. This case has been coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.


title: La Crosse Man Charged with Drug Crimes

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – In an indictment returned on June 28, 2023 by a federal grand jury sitting in Madison, Wisconsin, a La Crosse, Wisconsin man is charged with possessing methamphetamine for distribution and maintaining a drug house. The indictment is announced by Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin. The indictment charges Alfredo Almanza, 42, with possessing 50 grams or more of methamphetamine with intent to distribute. The indictment alleges that he possessed the methamphetamine on March 22, 2023. The indictment also charges him with using and maintaining a place in La Crosse from March 15 to March 22, 2023, for the purpose of distributing and using methamphetamine. Almanza was arrested on Wednesday, July 12 in La Crosse by investigators with the La Crosse and Tomah Police Departments and the Monroe County Sheriff’s Office. Almanza will make an initial appearance in U.S. District Court in Madison today. If convicted, Almanza faces a mandatory minimum penalty of 5 years and a maximum of life in federal prison on the charge of possessing 50 grams or more of methamphetamine for distribution, and a maximum of 20 years on the charge of maintaining a drug house. The charges against him are the result of an investigation by the La Crosse and Tomah Police Departments and the Monroe County Sheriff’s Office. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.


title: Electronic Health Records Vendor NextGen Healthcare, Inc. To Pay $31 Million To Settle False Claims Act Allegations

body_text: Burlington, Vermont – NextGen Healthcare, Inc. (NextGen), an electronic health record (“EHR”) technology vendor, has agreed to pay $31 million to resolve allegations that NextGen violated the False Claims Act by misrepresenting the capabilities of certain versions of its EHR software and providing unlawful remuneration to its users to induce them to recommend NextGen’s software. “Electronic health records are an essential part of our healthcare system” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Every day, millions of patients and healthcare providers across the country rely on such records to accurately identify and transmit vital health information. The Civil Division is committed to protecting the integrity of the electronic health records software that is available to providers and the process by which they decide which software to select.” The American Recovery and Reinvestment Act of 2009 established the Medicare and Medicaid EHR Incentive Program to encourage healthcare providers to adopt and demonstrate their “meaningful use” of EHR technology. Under the program, the U.S. Department of Health and Human Services (HHS) made incentive payments to eligible healthcare providers that adopted certified EHR technology and met certain requirements relating to their use of the technology. To obtain certification for their product, companies that develop and market EHR technology are required to demonstrate that their product(s) satisfies all applicable HHS-adopted certification criteria; the company must also identify any software components on which their EHR relies to perform the criteria. Developers must first pass testing performed by an independent, accredited testing laboratory authorized by HHS, and then obtain and maintain certification by an independent, accredited certification body authorized by HHS. In a complaint filed in conjunction with the settlement, the United States contends that NextGen falsely obtained certification for its software in connection with the 2014 Edition certification criteria published by HHS’s Office of the National Coordinator. Specifically, the government alleges that NextGen relied on an auxiliary product designed only to perform the certification test scripts, which concealed from the certifying entity that NextGen’s EHR lacked critical functionality. The government alleges that, consequently, the EHR that NextGen ultimately released to its users lacked certain required functionalities, including the ability to record vital sign data, translate data into required medical vocabularies, and create complete clinical summaries. In its complaint, the government also alleges that NextGen violated the Anti-Kickback Statute, which prohibits anyone from offering or paying, directly or indirectly, any remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. In its complaint, the government contends that, notwithstanding this prohibition, NextGen knowingly gave credits, often worth as much as $10,000, to current customers whose recommendation of NextGen’s EHR software led to a new sale. The government alleges that other remuneration, including tickets to sporting events and entertainment, was also provided to induce purchases and referrals. “Electronic health records play a pivotal role in the provision of safe, effective healthcare, and the testing and certification process of the EHR Incentive Program was intended to provide assurances to providers that their EHR can perform certain important functions,” said United States Attorney for the District of Vermont, Nikolas P. Kerest. “With this settlement, our office has now resolved five investigations into misconduct by EHR companies, demonstrating our commitment to ensuring that EHR companies are held responsible for their misrepresentations.” “Medical providers must be able to rely on electronic health records systems to correctly document and process important health data for continuity of patient care,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue to work with our valuable law enforcement partners to evaluate allegations brought under the False Claims Act and ensure the integrity of Medicare programs.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Toby Markowitz and Elizabeth Ringold, healthcare professionals at a facility that used NextGen’s software. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers in this case will receive $5,580,000. The qui tam case is captioned United States ex rel. Markowitz et al. v. NextGen Healthcare, Inc., Case No. 2:18-cv-195 (D. Vt.). The investigation and pursuit of this matter illustrate the government’s emphasis on combating healthcare fraud, including in the healthcare technology arena. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). 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 Vermont. Investigative support and assistance was provided by the Department of Health and Human Services, Office of Counsel to the Inspector General and OIG Office of Investigations. The matter was handled by Assistant U.S. Attorney Lauren Almquist Lively and Fraud Section Attorneys Christelle Klovers and Kelley Hauser. The claims in the Relators’ and the government’s complaints are allegations only and there has been no determination of liability. nextgen_complaint_in_intervention.pdf nextgen_settlement_agreement.pdf


title: 14 Defendants, Including Leaders of the Colombo Organized Crime Family, Plead Guilty to Various Felony Charges

body_text: Earlier today, at the federal courthouse in Brooklyn, Vincent Ricciardo, also known as “Vinny Unions,” a captain in the Colombo crime family of La Cosa Nostra, pleaded guilty to racketeering related to his extortion of a high-ranking official of a Queens-based labor union (the “Labor Union”), loansharking, and conspiracy to commit money laundering. Ricciardo is the last of the defendants indicted in 2021 and 2022 in connection with various offenses committed by members and associates of the Colombo crime family involving extortion, money laundering conspiracy, drug-trafficking, fraud and loansharking offenses. Previously, Benjamin Castellazzo, the Colombo family underboss, pleaded guilty to money laundering conspiracy and Ralph DiMatteo, the Colombo consigliere, pleaded guilty to racketeering involving extortion and money laundering conspiracy. Colombo family captains Theodore Persico, Jr., who was slated to become the crime family’s next boss, and Richard Ferrara also pleaded guilty to racketeering. Other defendants convicted of racketeering included Colombo family soldier Michael Uvino and associates Thomas Costa and Dominick Ricciardo. In addition, various employee welfare benefit plan brokers and providers, including Albert Alimena, Joseph Bellantoni, and Erin Thompkins, pleaded guilty to health care fraud conspiracy stemming from their agreement with Colombo family members to divert benefit funds to the Mafia family. The guilty pleas took place before United States District Judge Hector Gonzalez. Breon Peace, United States Attorney for the Eastern District of New York, announced the guilty pleas. “Today, there can be no doubt that the Colombo crime family has been decapitated as a result of the guilty pleas by its leadership and other facilitators of lucrative schemes,” stated United States Attorney Peace. “This Office, and the outstanding prosecutors, Special Agents, and detectives responsible for this significant blow are nevertheless mindful of the resilience of organized crime and we will not relent in our efforts to dismantle, disrupt, and disable this destructive menace in our communities.” Mr. Peace expressed his appreciation to the Federal Bureau of Investigation, New York Field Office (FBI), the New York City Police Department, the U.S. Department of Labor’s Employee Benefits Security Administration and Office of the Inspector General, the Nassau County Police Department, the New York City Department of Investigation, the U.S. Department of Labor, and the Department of Justice’s Organized Crime and Gang Section for their invaluable assistance in the investigation. According to earlier court filings and facts presented during the guilty plea proceedings, the defendants and their co-conspirators committed a variety of crimes – including extortion, loansharking, fraud, and drug-trafficking – to enrich themselves and to promote the continued operation of the Colombo organized crime family of La Cosa Nostra. The Colombo family’s administration, including boss Andrew Russo (who passed away during the pendency of the case), underboss Castellazzo and consigliere DiMatteo, as well captains Persico, Ferrara, and Vincent Ricciardo, agreed to use extortionate means, including threats of bodily harm, to force the official to give over a portion of his salary and, eventually, to take decisions at the Labor Union and with its affiliated healthcare benefit fund (the “Health Fund”) that would enrich the Colombo crime family’s administration, including attempts to force the trustees of the Health Fund to select vendors who were associated with the Colombo crime family and handpicked by some of the defendants. The crime family’s administration sought to divert more than $10,000 per month from the Health Fund’s assets to the Mafia. In addition, Castellazzo, DiMatteo, Persico, Ferrara, Ricciardo, and Uvino joined with defendants Alimena, Thompkins, and Bellantoni to devise a scheme to launder money from Health Fund contracts and vendor payments. These defendants attempted to re-bid Health Fund vendor contracts for claims administration, pharmaceuticals, and other health services to persons and companies affiliated with Bellantoni, and to select a company run by Alimena as the Health Fund’s third-party administrator. Bonanno crime family soldier John Ragano, who was also known as “Bazoo” and the “Maniac,” also led a scheme to issue fraudulent workplace safety training certifications from two occupational safety schools he purported to operate in Long Island. Rather than provide workplace safety trainings required to obtain Occupational Safety and Health Administration (OSHA) certification, Ragano along with John Glover and Domenick Ricciardo, falsified paperwork submitted to the U.S. Department of Labor and other government agencies which represented that hundreds of workers had completed construction safety training courses when they had not. Instead, various defendants used Ragano’s schools to conduct meetings involving members of La Cosa Nostra and to store illegal drugs and fireworks. In November 2022, Ragano pleaded guilty to conspiracy to commit fraud in connection with a means of identification. He was sentenced in April 2023 to 57 months’ imprisonment. In December 2022, Domenick Ricciardo pleaded guilty to racketeering and was sentenced in June 2023 to 28 months’ imprisonment. When sentenced, Castellazzo, DiMatteo, Ferrara, Martino, Persico, Vincent Ricciardo, and Uvino each face up to 20 years in prison. Costa faces up to 30 years in prison. Glover faces up to 15 years in prison. Alimena, Bellantoni, and Thompkins face up to 10 years in prison. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald, Devon Lash, Michael W. Gibaldi, and Andrew Reich are in charge of the prosecution. The Defendants : ALBERT ALIMENA Age: 69 Pompano Beach, Florida JOSEPH BELLANTONI Age: 41 Massapequa, New York BENJAMIN CASTELLAZZO (also known as “Benji”) Age: 85 Manahawkin, New Jersey THOMAS COSTA Age: 54 West Islip, New York RALPH DIMATTEO Age: 68 Merrick, New York RICHARD FERRARA Age: 61 Brooklyn, New York JOHN GLOVER Age: 64 Queens, New York VINCENT MARTINO Age: 45 Medford, New York THEODORE PERSICO, JR. (also known as “Teddy”) Age: 59 Brooklyn, New York JOHN RAGANO (also known as “Bazoo” and the “Maniac”) Age: 61 Franklin Square, New York DOMENICK RICCIARDO Age: 57 Franklin Square, New York VINCENT RICCIARDO (also known as “Vinny Unions”) Age: 77 Franklin Square, New York ERIN THOMPKINS Age: 55 Franklin Square, New York MICHAEL UVINO Age: 57 Garden City, New York E.D.N.Y. Docket No. 21-CR-466 (S-1) (HG)


title: Massachusetts Man Charged with Drug and Gun Trafficking in Bennington Area

component: USAO - Vermont

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Keniel Santiago (a.k.a. “Kas”), 20, of Springfield, Massachusetts, was arraigned yesterday on drug and firearms trafficking charges. A federal grand jury, sitting in Rutland, charged Santiago with five counts: one count of conspiracy to distribute heroin and cocaine base; one count of possession of a firearm during a drug trafficking crime; and, three counts of aiding in the unlawful acquisition of firearms from licensed firearms dealers by making false statements. The alleged criminal conduct occurred in the Bennington area from September 2020 through March 2021. During the hearing, Santiago pleaded not guilty to the charges, and U.S. District Court Magistrate Judge Kevin Doyle ordered Santiago remanded to the custody of the U.S. Marshals Service pending further proceedings. The indictment is an accusation only and Santiago is presumed innocent until and unless proven guilty. If convicted, Santiago faces a maximum sentence of life imprisonment, a mandatory sentence of five years imprisonment, a $1,000,000 fine, and three years of supervised release, which would follow any sentence of imprisonment. The actual sentence will be advised by the Federal Sentencing Guidelines. This case is being investigated by Homeland Security Investigations, the Bennington Police Department, the Vermont State Police, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The United States is represented by Assistant U.S. Attorney Joseph Perella. Santiago is represented by Ian Carleton, Esq. 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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn .


title: Two More Dublin Federal Correctional Officers To Plead Guilty To Sexually Abusing Multiple Female Inmates

component: USAO - California, Northern

body_text: OAKLAND - As part of its ongoing investigation into Bureau of Prisons officials at FCI Dublin, the U.S. Attorney’s Office today announced charges against two more federal prison correctional officers (CO), Nakie Nunley and Andrew Jones, for sexually abusing multiple female inmates. The two officers were each charged by Information with multiple counts of sexually abusing female inmates and then lying about the abuse to federal investigators. Both Nunley and Jones were employed as federal correctional officers at the time of the abuse. Both have agreed to plead guilty in written plea agreements, which were filed concurrently with the charging documents. “The sexual abuse charges and guilty pleas announced today are the result of the Department of Justice’s sustained commitment to rooting out sexual misconduct at the Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “As these guilty pleas reflect, we will continue to hold accountable correctional officers who abuse their positions of trust and fail to humanely care for those in their custody.” “This Office’s ongoing investigation into FCI Dublin has revealed significant findings of wrongdoing by multiple correctional officers at that facility,” said U.S. Attorney Ismail J. Ramsey of the Northern District of California. “The Department of Justice has repeatedly warned that criminal misconduct in the care and safety of incarcerated persons will not be tolerated. Correctional officers have an obligation to ensure the safety of incarcerated persons and all Bureau of Prisons employees should view these latest two prosecutions as confirmation that the Department of Justice will do its part to ensure that those who stray from these obligations are held accountable.” “Nunley and Jones are the seventh and eighth individuals charged with sexually abusing inmates at FCI Dublin. Five individuals, including the Warden and Chaplain, have been convicted of sexual abuse of inmates. The Department of Justice Office of the Inspector General is continuing to investigate these heinous allegations at FCI Dublin and is aggressively pursuing justice for victims of sexual abuse at the hands of rogue BOP employees," said Inspector General Michael E. Horowitz. “Incarcerated individuals should be able to serve their sentences without fear of being sexually assaulted by correctional institution staff,” said FBI San Francisco Special Agent In Charge Robert Tripp. “Nakie Nunley and Andrew Jones abused their positions and will be held accountable. Protecting civil rights stands among the FBI’s highest priorities, and we will continue to investigate such claims as they come to light.” Nunley, 48, of Fairfield, was charged with engaging in sexual acts and sexual contacts with five women who were serving prison sentences at FCI Dublin at the time of the abuse. He was also charged with lying to federal investigators about the sexual abuse and writing sexually explicit notes with one of his victims. Jones, 35, of Pleasanton, was charged with engaging in sexual acts with three women who were serving prison sentences at FCI Dublin, as well as lying to federal investigators about sexually abusing one of these victims. Nakie Nunley Nunley was employed as a correctional officer at FCI Dublin where he supervised prisoners who worked in UNICOR, a trade name for the federal prison industries. All of Nunley’s victims worked at the UNICOR call center at the time of his abuse. According to his plea agreement, Nunley admits that between March 2020 and November 2021, he engaged in sexual acts with two prisoners, including having oral and vaginal sex with one victim and digitally penetrating another victim on multiple occasions. He also admitted that he engaged in illegal sexual contacts with three other prisoners and that he lied to federal investigators about sexually abusing his victims and about sending one of his victims sexually explicit notes. In addition to the five victims he is charged with abusing in the Information, Nunley also admitted in his plea agreement that he sexually abused two other prisoners who worked at UNICOR. Nunley admitted that he digitally penetrated one victim’s vagina and caused her to touch his penis under his pants, resulting in him ejaculating in her hand. Nunley admitted that he caused another victim to perform oral sex on him. Nunley also admitted that he engaged in other inappropriate behavior. For example, Nunley agreed that he wrote sexual notes to one of his victims and made sexual comments to multiple victims. Moreover, when one of his victims approached him about his conduct towards another victim, Nunley threatened her by raising with her the potential that she could be transferred to another facility and that she could lose her job. Similarly, Nunley admitted that he told another victim that if she wanted to keep her job at UNICOR, she needed to pull down her underwear and bend over. When she complied, Nunley slapped her buttocks several times. Andrew Jones Jones was employed as a correctional officer at FCI Dublin where he supervised prisoners who worked in the Food Services Department. According to his plea agreement, between July 2020 and June 2021, Jones admitted that he received oral sex from, or had sexual intercourse with, three female prisoners who worked for him in the FCI Dublin kitchen. Jones admitted that he sexually abused these prisoners in multiple places near the FCI Dublin kitchen, including a staff bathroom, a warehouse, and a room where kitchen utensils were kept. In addition, like Nunley, Jones admitted in his plea agreement that he engaged in improper conduct in addition to the conduct for which he was charged in the Information. Specifically, Jones admitted that he also had sexual intercourse and received oral sex from an additional victim on multiple other occasions between July and December 2020, and that he had sexual intercourse with yet another victim multiple times between March and June 2021. FCI Dublin Investigation As part of the Department of Justice’s ongoing investigation into FCI Dublin, eight FCI Dublin correctional officers, including the former Warden, have been charged with crimes related to the sexual abuse of the female prisoners at the facility. In December of 2022, former Warden Ray J. Garcia was convicted by a jury of sexually abusive conduct against three female victims and was sentenced to 70 months in prison for his crimes. To date, the tally of correctional officers (“COs”) charged with misconduct as part of the Department of Justice’s investigation are as follows: NAME CASE NUMBER STATUS Warden Ray J. Garcia 4:21-cr-00429-YGR Convicted on all counts by jury on December 8, 2022; sentenced to 70 months in prison CO John Bellhouse 4:22-cr-00066-YGR Convicted on all counts by jury on June 5, 2023; sentencing scheduled for October 27, 2023 Chaplain James Highhouse 4:22-cr-00016-HSG Pleaded guilty on February 24, 2022; sentenced to 84 months in prison CO Enrique Chavez 4:22-cr-00104-YGR Pleaded guilty on October 27, 2022; sentenced to 20 months in prison CO Ross Klinger 4:22-cr-00031-YGR Pleaded guilty on February 10, 2022; sentencing scheduled for December 13, 2023 CO Darrel Smith (a/k/a “Dirty Dick Smith”) 4:22-cr-00110-YGR Indicted on April 13, 2023; status conference scheduled for August 3, 2023 CO Nakie Nunley 4:23-cr-00213-HSG Information and Plea Agreement filed on July 13, 2023 CO Andrew Jones 4:23-cr-00212-HSG Information and Plea Agreement filed on July 13, 2023 These cases are being prosecuted by Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson, with the assistance of Madeline Wachs, Sara Slattery, Christine Tian, Claudia Hyslop, Leeya Kekona, and Kay Konopaske. The prosecutions are the result of an investigation by the DOJ-OIG and the FBI. 4-23-cr-00212-hsg_information_2023_07_13.pdf 4-23-cr-00213-hsg_information_2023_07_13.pdf


title: Task Force Agent Arrested

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

body_text: SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on Thursday, July 13, 2023, charging Antonio Pizarro Adorno, a Puerto Rico Special Investigations Bureau (“NIE” as known in Spanish) officer assigned to the U.S. Department of Homeland Security (HSI), for concealing $170 during a law enforcement seizure. According to court documents, on April 27, 2023, Pizarro Adorno, took $170 in cash seized by the Puerto Rico Police Bureau (PRPB), with the intent to impair its integrity and availability for use in an investigation being conducted by the U.S. Department of Homeland Security and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives related to drug trafficking in a community in San Juan, Puerto Rico. “Investigating and prosecuting officials who abuse their positions of trust will continue to be a top priority in the Justice Department and this office,” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. Pizarro Adorno is scheduled for his initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI San Juan Field Office, Public Corruption Unit is investigating the case, with the collaboration of the Department of Homeland Security and the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Marie Christine Amy is prosecuting the case. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Kansas City Men Sentenced for Kidnapping and Torturing Victim in Wyandotte County

component: USAO - Kansas

body_text: KANSAS CITY, KAN. – Two Kansas men were sentenced to substantial terms of imprisonment following their convictions on kidnapping, firearm, and drug charges. In February 2023, a federal jury found David Carr, 36, of Kansas City, and James Michael Poterbin, 47, of Edwardsville, guilty of kidnapping, conspiracy to distribute methamphetamine, and discharging a firearm in connection with a drug trafficking crime. On July 6, 2023, a U.S. District Judge sentenced Carr to life in prison and Poterbin to 40 years’ imprisonment. The convictions and sentences relate to the 2019 kidnapping and torture of a victim in Kansas City, Kansas. According to court documents and evidence presented at trial, after Carr and Poterbin mistakenly believed a woman had stolen drug money from them, they kidnapped her boyfriend and demanded payment for his release. After beating, shooting, and stabbing the victim, Carr and Poterbin believed the victim was dead and left him in the house for days before he was discovered by another individual. After the victim was found alive and rescued, Carr ordered a co-conspirator to burn the house to the ground, endangering neighbors and first responders. The Federal Bureau of Investigation (FBI) and the Kansas City, Kansas Police Department investigated the case. The Kansas City, Kansas Fire Department investigated the arson. Assistant U.S. Attorneys Ryan J. Huschka and D. Christopher Oakley prosecuted the case. Assistant U.S. Attorney Sheri Catania presented the indictment to a grand jury and prepared the case for trial. OCDETF Strike Force Cases This prosecution is part of an 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. This 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 Kansas City Metro Strike Force’s mission also includes targeting violent street gangs and cartel members operating in and around the metropolitan area that are engaged in violent offenses and firearms offenses. ###


title: High Level Member of ISIS Sentenced to Life in Prison for Material Support to a Foreign Terrorist Organization Resulting in Death

body_text: Earlier today, Mirsad Kandic was sentenced by United States District Judge Nicholas G. Garaufis to life imprisonment following his May 2022 trial conviction on one count of conspiracy to provide material support to the Islamic State of Iraq and al-Sham (ISIS), and five substantive counts of providing material support to ISIS in the forms of personnel, including himself, Australian citizen Jake Bilardi, and others, as well as services, weapons, property, and equipment, and false documentation and identification, all between January 2013 and June 2017, when the defendant was arrested in Sarajevo, Bosnia and Herzegovina. Kandic was convicted by a federal jury in May 2022 following a three-week trial in federal court in Brooklyn . Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Edward A. Caban, Acting Commissioner, New York City Police Department (NYPD), announced the sentence. “Kandic was a high-ranking member of ISIS who relished the death and destruction he wrought while providing every conceivable form of material support to a terrorist organization, including the recruitment of countless others to ISIS’s bloody campaigns in Syria and elsewhere,” stated United States Attorney Peace. “Today’s sentence holds the defendant accountable for his conduct and ensures that he will never again pose a threat to the United States or any of our allies. This Office will remain relentless in prosecuting terrorists who threaten the safety and security of the United States and U.S. interests around the world.” “Serving ISIS’s deadly terror campaign, this defendant fought on the battlefield, spread propaganda, smuggled weapons, and radicalized Western recruits,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The National Security Division was created to counter foreign terrorist organizations like ISIS and, with our partners, we remain committed to identifying and holding accountable those who provide support to such terrorist groups.” “Let this sentence affirm that HSI will not abide any individual or organization that threatens the national security of the United States,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “Mirsad Kandic’s steadfast physical and material support of ISIS brought untold additional members into the organization, sowing death and destruction throughout ISIS territory and the world. This investigation and successful prosecution were only possible through the close collaboration of U.S. and international partners working together to track down those who provide support to foreign terrorist organizations and bring them to justice.” As proven at trial, Kandic had multiple responsibilities within ISIS, including recruiting foreign fighters, trafficking foreign fighters from the West through Turkey and into Syria, and obtaining weapons, military equipment, maps, money, and false identifications for ISIS fighters. In carrying out these responsibilities, Kandic worked directly with ISIS emirs and battlefield commanders, including Bajro Ikanovic, who commanded an ISIS training camp in Syria beginning in or around 2014. Ikanovic, in turn, reported to Omar Shishani, then the top military commander for ISIS, and a key advisor to Abu Bakr al-Baghdadi, at the time the leader of ISIS and the self-declared Caliph of the Islamic State. After several failed attempts to travel from the United States to Istanbul, Turkey, Kandic took a two-day Greyhound bus ride from New York City to Monterrey, Mexico, in November 2013, and flew through Panama, Brazil, Portugal, Germany, Kosovo, and Turkey before arriving in Syria at the end of 2013. Once in Syria, the defendant joined ISIS and became a fighter for the group in Haritan, an ISIS stronghold in the outskirts of Aleppo, wielding Russian-made PK machine guns and AK-47 assault rifles. ISIS leadership then sent the defendant to Turkey to take up the role of smuggling foreign fighters and weapons into Syria from abroad, and to serve as an emir for ISIS media. Kandic disseminated ISIS recruitment messages and gruesome propaganda using more than 120 Twitter accounts. For example, the defendant sent out an ISIS-produced “documentary” titled the “Flames of War.” This video celebrated ISIS atrocities and macabre executions of ISIS captives, including instances where victims were forced to dig their own graves before being summarily executed by gunshot. The defendant tweeted that this video was the “best thing ever seen on screen.” Kandic was a prolific recruiter of foreign fighters for ISIS. He sent thousands of radicalized ISIS volunteer fighters from Western countries into ISIS-controlled territories in Syria and elsewhere in the Middle East. This included a fellow New Yorker, Ruslan Maratovich Asainov, who became an ISIS sniper and sniper trainer, and another individual who became an emir for ISIS safehouses in the Idlib province of Syria. Asainov was convicted after trial in February 2023 of conspiracy to provide material support to ISIS, two substantive counts of providing material support to ISIS, one count of receiving military-type training from ISIS, and obstruction of justice. He is awaiting sentencing. A foreign fighter recruited by the defendant was Jake Bilardi of Australia. Bilardi contacted the defendant in June 2014 for assistance in traveling to Syria to join ISIS. Kandic provided Bilardi—who had just turned 18 years old and had never traveled internationally before—with instructions and guidance for reaching Istanbul, Turkey. Kandic then arranged for Bilardi to be picked up at the airport in Istanbul and smuggled him into Syria. Kandic maintained contact with Bilardi as he became an ISIS fighter and ISIS suicide bomber. Bilardi went on to commit a suicide truck attack with fellow ISIS members on March 11, 2015, in Ramadi Iraq, killing himself, more than 30 Iraqi soldiers, and an Iraqi policeman. Prior to the attack, the defendant wished Bilardi well and stated, “May Allah make there [sic] inner organs implode.” Bilardi’s attack was coordinated with others committed at the same time; 30 members of the Iraqi military were killed, 61 were injured, and 25 were missing, whose bodies were never found, all as a result of this coordinated series of attacks. After the attack, the defendant celebrated Bilardi’s service to ISIS, on Twitter and to a co-conspirator. A member of the Iraqi Army general staff testified at trial that the March 11, 2015 attack paved the way for ISIS’s takeover of Ramadi and the Anbar Province of Iraq several weeks later. Kandic also provided battlefield intelligence to top ISIS leadership. He also shaped the information environment in which ISIS operated by enforcing ISIS media and publicity discipline. For example, the defendant directed other ISIS supporters to refrain from posting any information about the success (or failure) of ISIS recruitment efforts as well as to minimize any reporting about ISIS military action in specific military actions. Kandic managed money for ISIS fighters in Syria, including two ISIS fighters who gave the defendant their bank cards, from which bank records showed more than $40,000 was transacted. Kandic smuggled weapons to ISIS in Syria, including a night vision scope for an ISIS sniper. Kandic operated a private market via Telegram—called “Khilafah (Caliphate) Market”—for which the he was the group administrator with authority to restrict access to the group. Members posted firearms and military equipment for sale, including mortars and suicide belts, i.e., improvised explosive devices. Among the members of Kandic’s private Telegram market was Abu Luqman, who, at the time, was the ISIS governor for the Raqqa province, ISIS’s de facto capital in Syria. The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Saritha Komatireddy and J. Matthew Haggans are in charge of the prosecution, with assistance from Paralegal Specialist Huda Abouchaer, and Trial Attorney Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice. The Justice Department’s Office of International Affairs, the FBI’s Legal Attachés abroad, and foreign authorities in multiple countries on three continents provided critical assistance in this case. The Department of State’s Regional Security Office in Sarajevo provided critical assistance in this case. In addition, the Office extends its appreciation to the Bosnian State Investigation and Protection Agency, the Bosnian State Intelligence and Security Agency, the Bosnian Foreigner’s Affairs Service, the Bosnian State Prosecutor’s Office, the Australian Federal Police, the Victoria Police (Australia), the Australian Border Force, the Australian Department of Foreign Affairs and Trade, the Australian Attorney-General’s Department, the Prosecutor General’s Office of the Republic of Kazakhstan, the Iraqi Ministry of Defense, Joint Operations Command in Iraq, and the FBI Legal Attaché Offices in Sarajevo, Canberra, Nur-Sultan, and Baghdad, for their extraordinary assistance in the investigation and prosecution. The Office also thanks the Ministry of Justice for the Republic of Finland, the Stuttgart Police Department and Federal Office of Justice in the Federal Republic of Germany, the Department of Justice & Constitutional Development in the Republic of South Africa, and the central authorities responsible for mutual legal assistance in Albania, North Macedonia, Montenegro, and Ukraine; and the FBI’s Legal Attaché Offices in those countries for their assistance in the investigation. The Defendant : MIRSAD KANDIC Age: 41 Brooklyn, New York; Kosovo E.D.N.Y. Docket No. 17-CR-449 (NGG) Related Defendants : RUSLAN MARATOVICH ASAINOV Age: 46 Syria and Bay Ridge, Brooklyn, New York E.D.N.Y. Docket No. 19-CR-402 (NGG)


title: Three Gang Members Plead Guilty to RICO Charge and Admit Roles in the Robbery and Fatal Shooting of LAPD Officer

component: USAO - California, Central

body_text: LOS ANGELES – Three members of a Los Angeles street gang have pleaded guilty to violating the federal racketeering statute for their roles in the robbery and fatal shooting last year of Los Angeles Police Officer Fernando Arroyos, the Justice Department announced today. The following defendants – all members of the South Los Angeles-based Florencia 13 (F13) street gang – each pleaded guilty late Thursday to one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act: Luis Alfredo de la Rosa Rios, 29, a.k.a. “Lil J” and “Lil Malo”; Ernesto Cisneros, 24, a.k.a. “Gonzo” and “Spooky”; and Jesse Contreras, 35, a.k.a. “Skinny Jack” and “Flaco.” According to three plea agreements filed Thursday afternoon, on the night of January 10, 2022, the defendants were driving in Rios’ truck around F13’s “territory” in the Florence-Firestone area of South Los Angeles, looking for people to rob. The three defendants decided to rob Officer Arroyos because he was wearing gold chains around his neck. Arroyos was accompanied by his girlfriend, another victim who is identified in court documents as “A.M.” Contreras handed Rios a loaded gun. Cisneros already possessed a loaded gun. Rios and Cisneros, both armed, then exited Rios’ truck. Cisneros approached the off-duty officer, patted him down, and then took his chains and wallet, which contained Arroyos’ LAPD identification card. Rios approached A.M., patted her down and stole her property. After robbing Arroyos, Rios and Cisneros opened fire. Arroyos was struck by a single bullet, which killed him. Rios and Contreras further admitted in their plea agreements to committing armed robberies against two victims outside a bar in the Florence-Firestone area earlier the same day. “This case starkly illustrates the devastating impact of gangs on our community,” said United States Attorney Martin Estrada. “A young man who had achieved great success and returned to serve his community as a Los Angeles Police officer was murdered while shopping for a home in the city he took an oath to protect. These senseless tragedies are repeated too often. Our work in this case sends a message that we will aggressively prosecute violence against our community.” “The defendants admitted to their role in the callous and cowardly murder of an off-duty police officer,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “These defendants now face spending the better part of their lives in prison and will no longer be in a position to prey on innocent victims.” “The murder of LAPD Officer Fernando Arroyos was a senseless murder,” said Los Angeles County Sheriff Robert G. Luna. “The Los Angeles County Sheriff’s Department is thankful for the interagency collaboration with the LAPD, and other local and federal agencies. LASD’s Homicide Bureau is appreciative of the Federal Bureau of Investigation and the United States Department of Justice for their efforts in bringing some semblance of justice to Officer Arroyos’ loved ones.” The three gang members pleaded guilty Thursday before United States District Judge Percy Anderson, who scheduled sentencing hearings on September 25 for Rios and Contreras, and an October 16 sentencing hearing for Cisneros. As a result of their guilty pleas, each defendant faces a statutory maximum sentence of life in federal prison. Prosecutors have agreed to seek terms of between 35 and 50 years in prison for Rios and Cisneros, and a prison term of 35 years for Contreras. Haylee Marie Grisham, 20, an F13 associate who was Rios’ girlfriend, pleaded guilty on April 5 to one count of violent crime in aid of racketeering for participating in the fatal robbery of Arroyos. Her sentencing hearing is scheduled for September 11, at which time she will face a statutory maximum sentence of life imprisonment. The Los Angeles County Sheriff’s Department and the FBI investigated this matter. Assistant United States Attorneys Joanna M. Curtis, Chief of the General Crimes Section; Christopher C. Kendall of the International Narcotics, Money Laundering, and Racketeering Section; and Kathy Yu of the Violent and Organized Crime Section are prosecuting this case.


title: Monroe County Man Charged With Drug Trafficking And Firearms Offenses

component: USAO - Pennsylvania, Middle

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 11, 2023, Pernell Riddick, age 34, of Monroe County, Pennsylvania, was charged by a federal grand jury with trafficking methamphetamine, fentanyl, and cocaine. Riddick was also indicted for possessing multiple firearms in furtherance of his drug trafficking operation. According to United States Attorney Gerard M. Karam, the indictment charges Riddick with possession with intent to distribute 50 grams or more of methamphetamine, fentanyl, and cocaine on September 2, 2022. The indictment also charges Riddick with possessing a firearm in furtherance of a drug trafficking crime. This matter was investigated by the Pocono Mountain Regional Police Department, the Monroe County District Attorney’s Office, and the Drug Enforcement Administration (DEA). Assistant United States Attorney Brian J. Gallagher is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. Riddick faces a maximum penalty of life in prison, a $10 million dollar fine, and a lifetime term of supervised release following imprisonment. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Former Virginia Police Officer Pleads Guilty to Civil Rights Offense for Sexually Assaulting Minor Victim

component: Civil Rights Division

body_text: A former police officer pleaded guilty today in federal court in the Eastern District of Virginia to violating the civil rights of a minor victim by forcibly sexually assaulting her. According to court documents, Cleshaun A. Cox, 31, admitted that on or about May 27, 2019, while he was in uniform and working in his official capacity as an officer with the Portsmouth Police Department in Portsmouth, Virginia, he encountered Victim 1, a 17-year-old female, during a call for a noise complaint. After another, more senior officer told Victim 1 to drive home, Cox followed Victim 1 to her home in his marked police vehicle. Cox instructed Victim 1 to drive to a parking lot, where he then instructed her to get into his vehicle. Cox then drove Victim 1 to an isolated area. There, he forced Victim 1 to have vaginal sex with him against her will. Cox admitted that he knew that Victim 1 was only 17 years old and that he knew that she did not want to have sex with him. Cox also admitted to lying to state investigators about his actions that night. “The defendant violated his oath and abused his power to sexually assault a child,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The federal government will not tolerate law enforcement officials who commit acts of sexual assault and abuse, and we will continue to seek justice for the survivors of these heinous crimes.” “Police officers are entrusted to safeguard and protect our community, especially vulnerable children,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Police officers are not above the law. Those who abuse their position to commit such abhorrent acts must and will be held accountable.” “Our communities trust police officers to keep their members safe, and the defendant violated that trust when he sexually assaulted a child while on duty,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “The FBI is committed to ensuring that law enforcement officers who abuse their authority are held accountable for their crimes.” Sentencing has been set for Nov. 28. With his guilty plea, Cox faces a minimum of 15 years in prison and a maximum of 20 years in prison, up to five years of supervised release and registration as a sex offender under the Federal Sex Offender Registration and Notification Act. In August 2021, Cox pleaded guilty to state level charges of carnal knowledge and abduction and was sentenced to 15 years in prison, 10 years of which was later suspended by the court. The FBI Norfolk Field Office investigated the case. Special Litigation Counsel Kathryn E. Gilbert of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney E. Rebecca Gantt for the Eastern District of Virginia are prosecuting the case.


title: Former Portsmouth Police Officer Pleads Guilty to Sexually Assaulting Minor Victim

body_text: NORFOLK, Va. – A former police officer pleaded guilty today in federal court in the Eastern District of Virginia to violating the civil rights of a minor victim by forcibly sexually assaulting her. According to court documents, Cleshaun A. Cox, 31, admitted that on or about May 27, 2019, while he was in uniform and working in his official capacity as an officer with the Portsmouth Police Department in Portsmouth, Virginia, he encountered Victim 1, a 17-year-old high school student, during a call for a noise complaint. After another, more senior officer told Victim 1 to drive home, Cox—unbeknownst to the other officer— followed Victim 1 to her home in his marked police vehicle. Cox instructed Victim 1 to drive to a parking lot, where he then instructed her to get into his vehicle. Cox then drove Victim 1 to an isolated area. There, he forced Victim 1 to have vaginal sex with him against her will. Cox admitted that he knew that Victim 1 was only 17 years old and that he knew that she did not want to have sex with him. Cox also admitted to lying to state investigators about his actions that night, including by falsely stating he did not know Victim 1’s true age and by falsely stating that it was Victim 1 who had proposed a sexual act to him. “Police officers are entrusted to safeguard and protect our community, especially vulnerable children,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Police officers are not above the law. Those who abuse their position to commit such abhorrent acts must and will be held accountable.” “The defendant violated his oath and abused his power to sexually assault a child,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The federal government will not tolerate law enforcement officials who commit acts of sexual assault and abuse, and we will continue to seek justice for the survivors of these heinous crimes.” “Our sworn police officers have a duty to uphold the constitution and are entrusted with protecting the safety and quality of life of the communities they serve,” said Brian Dugan, Special Agent in Charge of the FBI Norfolk Field Office. “Cleshaun Cox broke that trust when he, while acting under color of law, physically assaulted a teenage girl and violated her rights to bodily integrity. Cox’s conduct is not reflective of the honor and professionalism with which Portsmouth Police officers perform their duties, and I am grateful for the department’s collaboration in this investigation.” Sentencing is scheduled for November 28. Under the plea agreement, Cox faces at least 15 years and up to 20 years in prison, up to five years of supervised release and registration as a sex offender under the Federal Sex Offender Registration and Notification Act. In August 2021, Cox pleaded guilty in Portsmouth Circuit Court to charges of carnal knowledge and abduction and was sentenced to 15 years in prison, 10 years of which was later suspended by the court. Assistant U.S. Attorney E. Rebecca Gantt for the Eastern District of Virginia and Special Litigation Counsel Kathryn E. Gilbert of the Civil Rights Division’s Criminal Section are prosecuting the case. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Kristen Clarke, Assistant Attorney General of the Department of Justice’s Civil Rights Division and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. District Judge Elizabeth Wilson Hanes accepted the plea. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:23-cr-84.


title: FCI Schuylkill Inmate Indicted For Possession Of A Weapon

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 11, 2023, Deondray LuRon Crayton, age 36, a federal inmate incarcerated at the Federal Correctional Institution at Schuylkill (FCI Schuylkill), Pennsylvania, was indicted yesterday by a federal grand jury on the charge of possessing contraband in prison. According to United States Attorney Gerard M. Karam, the indictment alleges that on June 21, 2023, Crayton was found in possession of a homemade knife, commonly referred to as a “shank.” The case was investigated by the Federal Bureau of Investigations and the Special Investigative Services of the Federal Bureau of Prisons. Assistant U.S. Attorney Luisa Honora Berti is prosecuting the case. The maximum penalty under federal law for this offense is up to five years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: FCI Schuylkill Inmate Charged With Possessing Contraband

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 11, 2023, Charles Epps, age 26, an inmate at the Federal Correctional Institute Schuylkill (FCI Schuylkill), Pennsylvania, was charged by the grand jury with possessing contraband. According to United States Attorney Gerard M. Karam, the indictment alleges that on May 11, 2023, Epps was found in possession of a six-inch piece of plastic sharpened to a point with a cloth handle, commonly referred to as a “shank.” This matter was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant United States Attorney Brian J. Gallagher is prosecuting the case. Epps faces a maximum penalty of five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Two Mexican Nationals Sentenced for Conspiracy to Transport Illegal Aliens into the United States

component: USAO - North Dakota

body_text: FARGO – United States Attorney Mac Schneider, District of North Dakota, announced that on July 13, 2023, Armando De Dios-Carrillo, age 38 and Victor Manuel Perez-Aguilera, age 35, Mexican Nationals, were sentenced to federal prison for Conspiracy to Transport Illegal Aliens into the United States. De Dios-Carrillo was sentenced to 24 months in prison and a $100 special assessment and Perez-Aguilera was sentenced to 18 months in prison and a $100 special assessment. The third co-defendant, Jose Ramon Gonzalez-Resendiz, is set for a change-of-plea and sentence hearing on July 24, 2023. According to court documents, Armando De Dios-Carrillo and Victor Manuel Perez-Aguilera and others partially carried out the smuggling of a group of nationals of Mexico across the United States-Canada border into North Dakota in late March 2023, planning to move them further into the United States in exchange for payment of thousands of dollars per person. The plan fell apart when a pickup truck they were using got stuck in the snow. The pickup had to be towed from the drifted snow and was discovered by Border Patrol agents later at a Langdon, North Dakota, hotel where the smugglers and some of the people they smuggled were staying. “These strong sentences are another reminder to smugglers: If you think the northern border is a soft target, think again,” Schneider said. “Smugglers who put human lives at risk at the northern border will be caught by our partners in law enforcement, prosecuted by the United States Attorney’s Office, and face jail time.” This case was investigated by the U.S. Border Patrol, with assistance from U.S. Customs and Border Protection -- Office of Field Operations and Pembina County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Jacob T. Rodenbiker. # # #


title: Long Island Man Pleads Guilty to Massive COVID-19 Loan Fraud

body_text: Earlier today, Rami Saab, of Glen Cove, New York, pleaded guilty at the federal courthouse in Central Islip to conspiracy to commit wire fraud in connection with his participation in a scheme to defraud banks and the Small Business Association (SBA) of millions of dollars’ worth of small business loans under the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDLP). Today’s proceeding was held before United States District Judge Gary R. Brown. When sentenced, Saab faces up to 20 years in prison, as well as restitution of $9,668,508 and a fine of up to $250,000. Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York (IRS-CI), and J. Russell George, Treasury Inspector General for Tax Administration (TIGTA) announced the guilty plea. “Using fraud and deceit, the defendant callously stole millions of dollars during an unprecedented public health crisis at the expense of American small business owners,” stated United States Attorney Peace. “Those who engaged in blatant theft of taxpayer dollars intended to assist legitimate businesses and their employees during the COVID-19 pandemic should know they will be aggressively prosecuted by our Office.” Mr. Peace thanked the Nassau County Police Department for their assistance on this case. “As alleged, Rami SAAB stole nearly $10 million dollars in relief money intended for small businesses impacted by the COVID-19 global pandemic, for his own enrichment,” stated HSI Special Agent-in-Charge Arvelo. “This is an egregious case of fraud perpetrated by an individual who pilfered a program intended for those who truly needed emergency financial assistance. HSI and our law enforcement partners remain steadfastly committed to rooting out such thievery and ensuring violators are prosecuted to the fullest extent of the law.” “Saab pocketed nearly $10 million in ill-gotten gains by exploiting benefits meant to help those truly in need. Criminals like Saab continue to seek the quickest way to make a buck, regardless of the rule of law or those who may be victimized in the process. But as a result of strong law enforcement partnerships, today’s guilty plea means Saab now faces a large prison sentence for his criminal acts,” stated IRS-CI Special Agent-in-Charge Fattorusso. “As alleged, the defendant and his co-conspirators fraudulently obtained more than $9.5 million in Federal funds from the Payroll Protection Program and Emergency Injury Disaster Loans through applications containing fraudulent documents. Fraud schemes like these defraud not only a program intended to help small businesses weather a global pandemic but also the United States' taxpayers. The Treasury Inspector General for Tax Administration is committed to working with our law enforcement partners and the United States Attorney’s Office to prevent these types of fraud and to bring those responsible to justice.” As set forth in court filings, between May 2020 and May 2021, amid the height of the COVID-19 pandemic, Saab, working with others, fraudulently applied for, and received, at least 20 PPP and EIDLP loans totaling in excess of $9,500,000, on behalf of numerous corporate entities under his control. Saab submitted applications on behalf of these entities even though these were not, in fact, real businesses. Instead, these entities were “shell companies” that claimed false numbers of employees, payroll costs, and intended use of the loan proceeds – all of which was specifically designed to mislead the SBA and numerous banks administering the PPP and EIDLP loan programs. Shortly after the loans were funded, Saab engaged in numerous financial transactions designed to conceal the true nature and source of the funds, including electronically transferring portions of the loan proceeds between various bank accounts which Saab controlled. Saab, after transferring the loan proceeds though multiple accounts, utilized the laundered loan proceeds to enrich himself and others, including by personally making cash withdrawals and transferring funds to associates overseas. Congress created the PPP and EIDLP as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Enacted on March 29, 2020, the CARES Act provided emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs. Another source of relief provided by the CARES Act was the EIDLP, which provided low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. Under the program, EIDLP recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL. The amount of an EIDL advance –which did not need to be repaid – was determined based on the number of employees working for the applicant. The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Michael Maffei are in charge of the prosecution. The Defendant : RAMI SAAB (also known as “Rami Hasan”) Age: 44 Glen Cove, New York E.D.N.Y. Docket No. 22-CR-344 (GRB)