component: Civil Division

body_text: Athena Services International, LLC and its Owner Also Agree to Pay More Than $1.6 Million to Resolve Related Allegations. WASHINGTON – Herndon, Virginia-based contractor Paragon Systems Inc. (Paragon) has agreed to pay to the United States $52 million to settle allegations that the company violated the False Claims Act by knowingly causing purported small businesses that it controlled to fraudulently obtain small business set-aside contracts. The settlement further resolves allegations that Paragon violated the Anti-Kickback Act. Paragon is one of the Federal government’s largest providers of specialized security, fire and emergency response and mission support services, and the company provides security guards at federal buildings throughout the United States. “This settlement sends a message that flagrant misuse of government contracts through kickback schemes will not be tolerated,” said U.S. Attorney Erek L. Barron for the District of Maryland. “The integrity of our contracting programs is essential, and we remain committed to rooting out fraud that compromises fair access and accountability.” The settlement resolves allegations that Paragon, acting through former high-ranking corporate executives, knowingly engaged in a fraudulent scheme to use purported small businesses that it controlled to obtain U.S. Department of Homeland Security (DHS) set-aside contracts reserved for Woman-Owned Small Businesses (WOSBs), Service-Disabled Veteran Owned Small Businesses (SDVOSBs) and other small businesses. The former high-ranking Paragon officials who carried out this alleged scheme included the company’s President, Vice President of Business Development, Vice President of Operations, Compliance Manager and Contracts Manager. The United States contends the former Paragon executives engaged female relatives and friends to serve as figurehead owners of purported small businesses in order for those companies to obtain DHS set-aside contracts relating to the provision of security services at federal buildings, and that the Paragon-controlled companies then subcontracted substantially all of the work under the set-aside contracts to Paragon. The settlement further resolves allegations that the purported small businesses surreptitiously paid substantial sums of money to the Paragon Executives in violation of the Anti-Kickback Act. In total, the United States contends that the purported small businesses controlled by Paragon made over 300 separate payments to the former Paragon executives, totaling more than $11 million, which they attempted to conceal as purported “consulting payments” made to various shell companies formed by the former executives. One of the purported small businesses, Athena Services International LLC (ASI) and its joint venture with Paragon, Athena Joint Venture Services LLC (AJVS), along with their owner, Alisa Silverman, have collectively agreed to pay more than $1.6 million to resolve their liability in connection with the alleged small business contracting fraud scheme. The settlement further resolves allegations that ASI, through Silverman, improperly received a Paycheck Protection Program loan that SBA forgave in full based on false representations that ASI complied with all PPP rules. The settlement with ASI, AJVS and Silverman is based on their ability to pay. The United States has filed a complaint against another purported small business, Patronus Systems Inc. and its owner Mabel O’Quinn, for their role in the alleged misconduct. As part of the settlements, Paragon, ASI, AJVS and Silverman have agreed to cooperate with the Department’s investigation of other parties and any related litigation. “Those who fraudulently procure, or assist others to fraudulently procure, small business set-aside contracts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible companies obtain contracts reserved for veteran owned or socially or economically disadvantaged businesses, they prevent the small business community from receiving the contracting opportunities that Congress intended.” “This settlement is the largest civil recovery in over a decade by the Department of Homeland Security Office of Inspector General (DHS-OIG),” said Inspector General Joseph V. Cuffari Ph.D of DHS. “The settlement sends a clear message that the Federal Government will continue to investigate and prosecute fraud, waste, and abuse to protect small businesses owned by service-disabled veterans and other socially and economically disadvantaged individuals. I am grateful for the continued partnership with the Department of Justice and for the whistleblower who initiated the complaint.” “Small Business Administration (SBA) programs must be preserved for truly small businesses,” said SBA General Counsel Therese Meers. “Fraud on SBA’s procurement programs deprives legitimate small businesses of important procurement opportunities, and fraud on the Paycheck Protection Program unconscionably undermines critical pandemic relief. The results in this matter reflect SBA’s and the government’s ongoing commitment to identifying and pursuing those who perpetrate such fraud.” The settlements with Paragon, ASI, AJVS and Silverman resolve claims brought in a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The United States may intervene in the action, as it did in this case. The lawsuit is captioned United States ex rel. Pattison v. Paragon Systems Inc., et al. , Case No. 21-3260 (DMD). As part of the settlement with Paragon, the whistleblower, Todd Pattison, will receive more than $9 million, and he will receive approximately $280,000 in connection with the settlement with ASI and Silverman. This settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Maryland, the Civil Division’s Fraud Section, and the Department of Homeland Security’s Office of the Inspector General. U.S. Attorney Barron thanked Assistant U.S. Attorney Sarah Marquardt for the District of Maryland and Senior Trial Counsel Alicia J. Bentley of the Civil Division’s Commercial Litigation Branch, who handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability as to those claims. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Charlotte Man On Federal Supervised Release For A Firearms Violation Is Sentenced To More Than Nine Years In Prison For Illegal Gun Possession

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – James Earl Holmes, 45, of Charlotte, was sentenced today to 110 months in prison followed by three years of supervised release for possession of a firearm by a felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief Michael Hudgins of the Pineville Police Department (PPD), join U.S. Attorney King in making today’s announcement. According to court documents and court proceedings, on May 30, 2021, PPD officers responded to 911 calls about a shooting in a parking lot of an apartment complex. When the officers arrived, they found a female, identified as F.L., in the backseat of a vehicle. F.L. had sustained two gunshot wounds. The victim and witnesses on the scene told PPD officers that Holmes had shot F.L. The officers located Holmes nearby seated in his wheelchair and recovered three 9mm casings from the area where F.L. was shot. F.L. was transported to the hospital and Holmes was taken into custody. Holmes repeatedly denied having a firearm. While at the police station, officers discovered Holmes to have a firearm in his diaper. PPD officers retrieved from Holmes a loaded 9mm pistol with a round in the chamber. Court records show that, at the time of the incident, Holmes was on supervised release for a federal firearms conviction in the Eastern District of Wisconsin. As a result of that conviction, Holmes was prohibited from possessing a firearm or ammunition. During the investigation, F.L. told the officers that she was at the same party as Holmes and had rejected the defendant’s advances. After F.L. left the party, Holmes approached the victim while she was sitting in a parked vehicle and shot her. The victim recalled that she had begged Holmes not to shoot her, but Holmes told her, “Don’t be sorry now, b**ch,” and then shot her. According to court records, Holmes initially denied shooting the victim. However, the three 9mm discharged casings collected from the scene of the shooting, and a bullet fragment surgically removed from the victim’s body, were submitted to the Charlotte-Mecklenburg Police Department’s Crime Laboratory for analysis, which concluded that the three discharged casings and the bullet recovered from the victim’s body were all fired from Holmes’s 9mm pistol. According to court records, Holmes committed numerous offenses while in pretrial custody at the Mecklenburg County Jail (MCJ). In 2021, Holmes threatened a detention officer after she told the defendant to put on a shirt. Holmes then spit at the detention officer, bit her, and stabbed her with a shank. Court records show that, in March 2022, MCJ detention officers were performing a safety and security check on Holmes because he was being transported to a hospital for medical treatment. During the search, a detention officer found a four-inch shank in Holmes’s wheelchair. On yet another occasion, Holmes threw a brown liquid substance at a detention officer’s head. Holmes also assaulted a nurse at the jail and has repeatedly refused to follow lawful orders while in custody. On June 16, 2022, Holmes pleaded guilty to possession of a firearm by a convicted felon. At today’s sentencing hearing, the government argued that the defendant possessed the firearm in connection with the attempted murder of F.L. The Court agreed, applied the sentencing enhancement, and sentenced Holmes to 110 months in prison. Holmes will remain in federal custody until he is transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. Holmes still faces a potential revocation of supervised release and additional prison sentence in federal court in Wisconsin. In making today’s announcement, U.S. Attorney King commended the ATF and the Pineville Police Department for their investigation of the case and the Charlotte Mecklenburg Police Department’s Crime Laboratory for their invaluable assistance. Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Dallas Developer Pleads Guilty to Bribing Council Members

component: Federal Bureau of Investigation (FBI)

body_text: A Dallas real estate developer who bribed two city officials pleaded guilty today, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Sherman Roberts, 70, who previously helmed City Wide Community Development Corporation, was indicted in December 2020 and pleaded guilty Tuesday to conspiracy to commit bribery. According to court documents, Mr. Sherman bribed two City Council Members, Mayor Pro Tem Dwaine Caraway and City Council Member Carolyn Davis, to support loans and low income housing tax credits for his apartment projects. In return for several thousand dollars in cash – plus the promise of future payments after her city council tenure ended – Council Member Davis lobbied for Mr. Roberts’s real estate projects, including Serenity Place, Runyon Springs, and Patriot’s Crossing. She promoted Serenity Place to the City Housing Committee, demanded other developers also seeking real estate funding withdraw their applications in order to increase Mr. Roberts’s chances of success, recommended Serenity Place receive a 9% low income housing tax credit, and voted to approve a $1.9 million City of Dallas loan. “Right now you and me are making money,” Mr. Roberts texted Council Member Davis shortly after the vote. About a month later, she repeatedly reached out to ask for more money, “just a few dollars.” He agreed. Then, she and Mr. Roberts met with Mayor Pro Tem Caraway to address a problem with his Patriot’s Crossing project. In return for several hundred dollars cash and a $2,000 monthly stipend, Mayor Pro Tem Caraway agreed to stop the city from issuing a request for proposal (RFP) for the Patriots Crossing project and to deliver the project for Mr. Roberts. “How much is the project worth?” Mayor Pro Tem Caraway asked. “Once you’re successful with this project, don’t forget about me.” “I won’t forget about you,” Mr. Roberts responded. “That’s where the money is… the money has never been an issue.” Mr. Roberts now faces up to five years in federal prison. He is slated to be sentenced on March 12, 2025. Mayor Pro Tem Caraway pleaded guilty in 2019 to conspiracy to commit honest services fraud and tax evasion and was sentenced to more than four years in federal prison. The same year, City Council Member Carolyn Davis pleaded guilty to conspiracy to commit bribery concerning an agent of a local government receiving federal benefits, but passed away in a car crash before she could be sentenced. Mr. Roberts was one of three real estate developers charged in connection with the bribery scandal. Devin Hall , the developer behind the Grand Park Place apartment project, pleaded guilty in August 2020. Ruel Hamilton , the AmeriSouth Realty Group executive who backed the Royal Crest housing project, is awaiting retrial on conspiracy and bribery charges. The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of IRS – Criminal Investigation’s Dallas Field Office. Assistant U.S. Attorney Marcus Busch is prosecuting the case with the help of Assistant U.S. Attorney Donna Max.


title: Oregon Man Pleads Guilty to Three Federal Hate Crimes for Defacing Synagogue

component: Civil Rights Division

body_text: An Oregon man pleaded guilty today to three federal hate crimes after intentionally defacing a synagogue in Eugene, Oregon, on multiple occasions. Adam Edward Braun, 34, of Eugene, pleaded guilty to two counts of intentionally defacing a synagogue and one count of attempting to intentionally damage the synagogue because the synagogue was a place of religious worship for Jewish people. According to court documents and statements made in court, Braun targeted Temple Beth Israel, a Jewish synagogue in Eugene, with graffiti on two separate occasions. Between Sept. 10 and 11, 2023, Braun spray-painted the numbers “1377” on the exterior of the synagogue building. Braun admitted that he selected the numbers “1377” because it was similar to “1488,” a popular white-supremacist slogan that references Adolf Hitler and the “Fourteen words.” Months later, in January, Braun attempted to damage the synagogue’s glass doors using a ball-peen hammer. Braun stopped when he saw he was being recorded by a surveillance camera and went to another area of the property where he spray-painted the slogan “WHITE POWER” in large letters. Braun faces a maximum penalty of one year in prison for each of the three charges, as well as fines and restitution. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Natalie K. Wight for the District of Oregon and Special Agent in Charge Douglas Olson of the FBI Portland Field Office made the announcement. The FBI Portland Field Office investigated the case with assistance from the Eugene Police Department. Trial Attorney Cameron A. Bell of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Gavin W. Bruce for the District of Oregon are prosecuting the case.


title: UCHealth Agrees to Pay $23M to Resolve Allegations of Fraudulent Billing for Emergency Department Visits

body_text: University of Colorado Health, known as UCHealth and headquartered in Aurora, Colorado, has agreed to pay $23 million to resolve allegations that it violated the False Claims Act in seeking and receiving payment from federal health care programs for visits to its emergency departments, by falsely coding certain Evaluation & Management (E&M) claims submitted to the Medicare and TRICARE programs. “Improperly billing federal health care programs drains valuable government resources needed to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated or unsupported claims.” E&M claims relate to medical visits that involve evaluating and managing a patient’s health and medical conditions, including qualifying visits to a hospital’s emergency department. In submitting an E&M claim to Medicare or TRICARE, a hospital may use one of five Current Procedural Terminology (CPT) codes (CPT 99281 through CPT 99285), depending on the hospital resources associated with the visit. An E&M facility claim coded with CPT 99285 represents the highest hospital resource usage. The United States alleged that, from November 1, 2017, through March 31, 2021, UCHealth hospitals automatically coded certain claims for emergency room visits using CPT 99285. UCHealth used this code whenever its health care providers had checked a patient’s set of vital signs more times than the total number of hours that the patient was present in the emergency department, excepting patients who were in the emergency department for fewer than 60 minutes, despite the severity of the patient’s medical condition or the hospital resources used to manage the patient’s health and treatment. The United States alleged that UCHealth knew that its automatic coding rule associated with monitoring of vital signs did not satisfy the requirements for billing to Medicare and TRICARE because it did not reasonably reflect the facility resources used by the UCHealth hospitals. “Fraudulent billing by healthcare companies undermines Medicare and other federal healthcare programs that are vital to many Coloradans,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will hold accountable health care companies who adopt automatic coding practices that lead to unnecessary and improper billing.” “Health care providers that participate in federal health care programs such as Medicare are required to obey laws meant to preserve the integrity of program funds, including requiring that providers submit only appropriate and accurate claims for reimbursement,” said Special Agent in Charge Linda T. Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this settlement demonstrates, HHS-OIG and our law enforcement partners will continue working together to protect both public safety and the integrity of our federal health care system.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a private individual, Timothy Sanders. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States, et al. ex rel. Sanders v. University of Colorado Health et al. , No. 21-cv-1164 (D. Colo.). As part of today’s resolution, Mr. Sanders will receive $3.91 million of the proceeds from the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Colorado, with assistance from HHS-OIG and the Defense Criminal Investigative Service. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorney David G. Miller of the Civil Division and Assistant U.S. Attorney Lila Bateman for the District of Colorado handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Montgomery Man Charged with Possession of a Machinegun Conversion Device on the Campus of Tuskegee University

component: USAO - Alabama, Middle

body_text: Montgomery, Ala. – A Montgomery, Alabama, man is facing a federal charge for possessing a firearm with a machinegun conversion device, announced Acting United States Attorney Kevin Davidson. On Nov. 10, 2024, law enforcement arrested 25-year-old Jaquez Myrick, alleging that he illegally possessed a machinegun. According to the criminal complaint and other court records, on Nov. 10, 2024, law enforcement responded to a reported mass shooting at a parking lot on the campus of Tuskegee University in Tuskegee, Alabama. Upon arrival, responding officers observed a large number of people gathered in the parking lot and heard shots being fired. One of the officers observed Myrick holding a handgun and detained him. When agents inspected the handgun retrieved from Myrick, they determined that it was equipped with a machinegun conversion device. When installed on a firearm, a machinegun conversion device, commonly known as a “switch,” allows a gun to function as a fully automatic weapon capable of firing up to 20 rounds per second with a single pull of the trigger. The possession of a machinegun — which under the relevant federal statute, includes the possession of a conversion device alone — carries a penalty of up to ten years in prison and a $250,000 fine. Myrick made his initial appearance in federal court this afternoon in Montgomery. A criminal complaint is merely an allegation that a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The Alabama Law Enforcement Agency (ALEA), Tuskegee University Police Department, City of Tuskegee Police Department, Macon County Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Federal Bureau of Investigation (FBI), the Fifth Judicial Circuit District Attorney’s Office, and the Alabama Attorney General’s Office are investigating this case. Assistant U.S. Attorney Tara S. Ratz for the Middle District of Alabama is prosecuting the case. Law enforcement is asking for the public’s assistance in this investigation. Anyone with information is asked to please submit tips at 1-800-CALL-FBI and upload any digital files regarding this incident online at: fbi.gov/tuskegeeshooting24 .


title: Inmate Sentenced to Prison for Possessing Weapon at FCI McDowell

component: USAO - West Virginia, Southern

body_text: BLUEFIELD, W.Va. – Tony Lashon Cleveland Jr., 27, an inmate at the Federal Correctional Institution (FCI) McDowell, was sentenced today to one year and three months in prison, to be followed by three years of supervised release, for possession of a weapon by an inmate at a federal prison. According to court documents and statements made in court, on or about September 12, 2023, an FCI McDowell staff member conducted a pat-down search of Cleveland and found a handcrafted weapon commonly known as a “shank” in one of his socks. The shank was a piece of metal approximately five inches long with a sharpened point on one end and melted plastic on the other end to form a handle. Cleveland admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon. Today’s sentence will run consecutively to his undischarged term of incarceration. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-62.


title: Former Missouri State Trooper Charged with Civil Rights Crimes

body_text: CAPE GIRARDEAU – A former Missouri State Highway Patrol trooper was indicted Tuesday and accused of unlawfully searching women’s cell phones during traffic stops to find nude pictures. David McKnight, 39, was indicted by a grand jury in U.S. District Court in Cape Girardeau with one count of destroying records in a federal investigation and nine counts of deprivation of rights under color of law, namely the right to be free from unreasonable search and seizure. The indictment says that between Sept. 1, 2023, and August 19, 2024, McKnight took cell phones from nine different women. McKnight then searched the phones and used his personal cell phone to photograph nude pictures that he found, the indictment says. He later deleted the images from his cell phone, it says. McKnight stopped most of the women for traffic violations, the indictment says. He took their phones under the auspices of confirming that they had insurance coverage or verifying their identification, it says. “These allegations are being taken very seriously, and we’d like to encourage anyone who believes they had a concerning interaction with McKnight to contact the FBI,” said U.S. Attorney Sayler A. Fleming. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. Anyone with information is asked to contact the FBI by calling 1-800-CALL-FBI (800-225-5324) or via tips.fbi.gov . The Missouri State Highway Patrol and the FBI investigated the case. Assistant U.S. Attorney Christine Krug is prosecuting the case.


component: USAO - Colorado

body_text: DENVER – University of Colorado Health, known as UCHealth and headquartered in Aurora, Colorado, has agreed to pay $23 million to resolve allegations that it violated the False Claims Act in seeking and receiving payment from federal health care programs for visits to its emergency departments, by falsely coding certainEvaluation & Management (E&M) claims submitted to the Medicare and TRICARE programs. “Improperly billing federal health care programs drains valuable government resources needed to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated or unsupported claims.” E&M claims relate to medical visits that involve evaluating and managing a patient’s health and medical conditions, including qualifying visits to a hospital’s emergency department. In submitting an E&M claim to Medicare or TRICARE, a hospital may use one of five Current Procedural Terminology (CPT) codes (CPT 99281 through CPT 99285), depending on the hospital resources associated with the visit. An E&M facility claim coded with CPT 99285 represents the highest hospital resource usage. The United States alleged that, from Nov. 1, 2017, through March 31, 2021, UCHealth hospitals automatically coded certain claims for emergency room visits using CPT 99285. UCHealth used this code whenever its health care providers had checked a patient’s set of vital signs more times than the total number of hours that the patient was present in the emergency department, excepting patients who were in the emergency department for fewer than 60 minutes, despite the severity of the patient’s medical condition or the hospital resources used to manage the patient’s health and treatment. The United States alleged that UCHealth knew that its automatic coding rule associated with monitoring of vital signs did not satisfy the requirements for billing to Medicare and TRICARE because it did not reasonably reflect the facility resources used by the UCHealth hospitals. “Fraudulent billing by health care companies undermines Medicare and other federal health care programs that are vital to many Coloradans,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will hold accountable health care companies who adopt automatic coding practices that lead to unnecessary and improper billing.” “Health care providers that participate in federal health care programs such as Medicare are required to obey laws meant to preserve the integrity of program funds, including requiring that providers submit only appropriate and accurate claims for reimbursement,” said Special Agent in Charge Linda T. Hanley of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “As this settlement demonstrates, HHS-OIG and our law enforcement partners will continue working together to protect both public safety and the integrity of our federal health care system.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a private individual, Timothy Sanders. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States, et al. ex rel. Sanders v. University of Colorado Health et al. , No. 21-cv-1164 (D. Colo.). As part of today’s resolution, Mr. Sanders will receive $3.91 million of the proceeds from the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Colorado, with assistance from HHS-OIG and the Defense Criminal Investigative Service. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorney David G. Miller of the Civil Division and Assistant U.S. Attorney Lila Bateman for the District of Colorado handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement Agreement


title: Insurance Mogul Pleads Guilty to $2B Fraud and Money Laundering Scheme

component: Criminal Division

body_text: A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere. According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled. To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions. As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation. “Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.” “Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.” “Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.” Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the U.S. Marshals. In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing. The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation. Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina are prosecuting the case.


title: Insurance Mogul Pleads Guilty To $2B Fraud And Money Laundering Scheme

body_text: CHARLOTTE, N.C. – A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled. To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions. As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation. “Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.” “Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney King. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.” “Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.” Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the United States Marshals. In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing. The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation. Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina and Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section are prosecuting the case.


title: Bluefield Man Sentenced to 14 Years in Prison for Federal Drug Crime

body_text: BLUEFIELD, W.Va. – Matthew Alexander Wilson, 29, of Bluefield, was sentenced today to 14 years in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl and methamphetamine. According to court documents and statements made in court, on August 16, 2023, Wilson and Denise R. Allen were apprehended at a gun store in Princeton, West Virginia. Following their arrest, Wilson and Allen consented to a search by law enforcement officers of a truck they had rented using a stolen identity. Officers found nearly a pound of methamphetamine, 45 grams of fentanyl and two Glock 9mm semiautomatic handguns during the search of the rental truck. Wilson and Allen admitted they possessed the methamphetamine and fentanyl and intended to distribute it. Wilson, a convicted felon, was also involved in directing Allen to use a stolen identification to purchase firearms on his behalf. Allen, 30, of Bluefield, was sentenced on June 10, 2024 to five years in prison, to be followed by five years of supervised release, after pleading guilty to possession with intent to distribute fentanyl and methamphetamine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Southern Regional Drug and Violent Crime Task Force. The task force consists of members of the West Virginia State Police, the Bluefield Police Department, the Princeton Police Department, the Mercer County Sheriff’s Department, the McDowell County Sheriff’s Department, and the Wyoming County Sheriff’s Department. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:23-cr-152. ###


title: Ozark Business Owner Sentenced for Social Security Fraud, Perjury

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A former Harrisonville, Mo., man has been sentenced in federal court for Social Security fraud and for committing perjury when he testified at his trial. Michael Sylvara, 39, who currently lives and owns a business in Ozark, Mo., but lived in Harrisonville at the time of the offense, was sentenced by U.S. District Judge Roseann A. Ketchmark on Wednesday, Nov. 6, to two years and three months in federal prison without parole. The court also ordered Sylvara to pay $42,369 in restitution to the government. Sylvara is the co-owner of Volleyball Beach Ozark, the second largest indoor sand facility in the world, and maintains a real estate license. On March 23, 2023, Sylvara was found guilty at trial of one count of Social Security fraud and one count of perjury. Sylvara was originally indicted for Social Security fraud. Sylvara, who oversaw his disabled father’s Social Security benefits from 2016 to 2019, converted $42,369 of his father’s benefits to his own use. Sylvara testified in his own defense during a trial in October 2022, which resulted in a hung jury. Sylvara was subsequently charged in a superseding indictment on Nov. 17, 2022. The superseding indictment contains the original charge of Social Security fraud and adds the perjury charge. Sylvara was designated as the representative payee for his father, who is now deceased. As the representative payee, Sylvara was legally obligated to use all of the benefit payments to meet his father’s needs. Evidence introduced during the trial indicated that Sylvara instead converted some of his father’s benefit payments for his personal use to pay his utility, insurance and student loan bills, as well as his realtor association fees, over a period of 30 months. A witness at the trial in October 2022 testified that she purchased basic necessities for Sylvara’s father, including clothes, underwear, socks, and a pair of shoes, without being reimbursed. She also testified that the only items in his father’s refrigerator were water, bread, cat food, and condiments. She described seeing Sylvara’s father eat cat food. Sylvara presented testimony that he knew was false while under oath during his first trial in October 2022. Sylvara attempted to justify multiple cash withdrawals (totaling over $23,000) he made from the representative payee account. He claimed under oath he had a written agreement with the Social Security Administration that he could be paid $14 an hour for taking care of his father. Subsequent investigation showed there is no such agreement and there never has been. This case was prosecuted by Special Assistant U.S. Attorneys Bradley Cooper, Amanda Hanson, and Courtney Pratten. It was investigated by the Social Security Administration.


title: Former Air National Guardsman Sentenced to 15 Years in Prison for Unlawfully Disclosing Classified National Defense Information

body_text: A former member of the U.S. Air National Guard (USANG), Jack Douglas Teixeira, 22, of North Dighton, Massachusetts, was sentenced today in federal court in Boston for retaining and transmitting hundreds of pages of classified National Defense Information (NDI), including many documents designated top secret, on an online social media platform in 2022 and 2023. Teixeira, was sentenced to 15 years in prison to be followed by three years of supervised release. Teixeira was also barred from having contact with foreign agents. In March, Teixeira pleaded guilty to six counts of willful retention and transmission of classified information relating to the national defense. Teixeira was arrested in April 2023 and charged by criminal complaint with retention and transmission of NDI and unauthorized removal and retention of classified documents or materials. He was subsequently indicted by a federal grand jury in Boston in June 2023. He has remained in federal custody since his arrest. “Jack Teixeira repeatedly shared classified national defense information on a social media platform in an attempt to impress anonymous friends on the internet – instead, it has landed him a 15 year sentence in federal prison,” said Attorney General Merrick B. Garland. “Teixeira’s profound breach of trust endangered our country’s national security and that of our allies. This sentence demonstrates the seriousness of the obligation to protect our country’s secrets and the safety of the American people.” “This sentencing is a stark warning to all those entrusted with protecting national defense information: betray that trust, and you will be held accountable,” said FBI Director Christopher Wray. “Jack Teixeira’s criminal conduct placed our nation, our troops, and our allies at great risk. The FBI will continue to work diligently with our partners to protect classified information and ensure that those who turn their backs on their country face justice.” “Mr. Teixeira is responsible for engaging in one of the most significant leaks of classified documents and information in United States history, which resulted in exceptionally grave and long-lasting damage to the national security of the United States,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “He exploited his Top-Secret security clearance to share critical defense information online. In doing so, he exposed sensitive defense information involving our allies, putting our intelligence community and our troops at risk. It is vital that our classified information remains just that – classified. Leaking and distributing this kind of information poses significant and real consequences across the globe. This is disturbing conduct that will not go unnoticed and unchecked.” Teixeira enlisted in the USANG in September 2019. Until his arrest in 2023, he served with the 102nd Intelligence Wing at Otis USANG Base in Massachusetts as a Cyber Defense Operations Journeyman. Teixeira's primary responsibility was maintaining and troubleshooting the classified workstations of other members of the 102nd Intelligence Wing. In order to perform his job, Teixeira was granted a Top-Secret//Sensitive Compartmented Information security clearance in 2021. Beginning in or around January 2022, Teixeira unlawfully retained and transmitted NDI classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information (SCI), onto the social media platform Discord to persons not authorized to receive such information. Teixeira used a secure workstation at the Otis USANG Base to conduct hundreds of searches for classified documents containing NDI that were unrelated to his duties. On two separate occasions, Teixeira’s superiors warned him not to take notes on classified intelligence information and to stop conducting “deep dives” into classified intelligence information. Despite these warnings and his considerable training, Teixeira purposefully and repeatedly removed classified information and documents containing NDI without authorization from the secure facility where he worked. Teixeira subsequently transmitted the information by typing it into an online social media platform, where it was further transmitted by other users. Teixeira also posted images of hundreds of classified documents to a social media platform, nearly all of which bore standard classification markings – including “SECRET,” “TOP SECRET” and SCI designations – indicating that they contained highly classified U.S. government information. The documents and information illegally disseminated by Teixeira discussed a range of topics including descriptions of the Russia-Ukraine conflict and troop movements on a particular date. The information he retained and disseminated was derived from sensitive U.S. intelligence, gathered through classified sources and methods. Shortly before his arrest in April 2022, Teixeira took steps to conceal his disclosures by destroying and disposing of his electronic devices, deleting his online accounts, and encouraging his online acquaintances to do the same. The FBI Washington and Boston Field Offices investigated the case. Valuable assistance was provided by the Naval Criminal Investigative Service, Air Force Office of Special Investigations, and the U.S. Attorney's Office for the Eastern District of Virginia. Assistant U.S. Attorneys Nadine Pellegrini, Jared C. Dolan, and Jason A. Casey for the District of Massachusetts and Trial Attorney Christina A. Clark of the National Security Division's Counterintelligence and Export Control Section prosecuted the case.


title: Three men sentenced in local Indian Arts and Crafts Act case

component: USAO - Alaska

body_text: JUNEAU, Alaska – Three men were sentenced today for their roles in a scheme to sell hundreds of Philippine produced products as authentic Alaska Native produced artwork, violating the Indian Arts and Crafts Act. According to court documents, between May 2019 and December 2021, Travis Lee Macasaet, 39, of Ketchikan, Simeon Cabansag, 39, of Ketchikan, and Jessie Reginio, 28, of Seattle, Washington, were employees of both Alaska Stone Arts LLC. and Rail Creek LLC., two stores located in Ketchikan, for differing periods of time. Alaska Stone Arts LLC. primarily sold stone carvings, and Rail Creek LLC. primarily sold wood totem poles. Court documents explain that from April 2016 to December 2021, Cristobal Rodrigo, 59, his wife Glenda Rodrigo, 46, and their son Christian Rodrigo, 24, were the owners and operators of the stores and were co-conspirators in the case. The investigation revealed that the carvings and totem poles sold in both stores were sourced from Rodrigo Creative Crafts, a company owned by Glenda Rodrigo and located in the Philippines. The company used Filipino labor to produce the artwork before shipping them to the Rodrigo’s stores in Alaska, where they were sold as authentic Alaska Native art. According to court documents, the Rodrigo’s hired Alaska Natives and non-Alaska Native employees at both Ketchikan stores to help with day-to-day operations and represent and sell Philippine produced artwork as their own authentic Alaska Native artwork. Macasaet and Cabansag were two of the Alaska Natives hired by the Rodrigo family. Reginio was one of the non-Alaska Native employees hired by the family. The defendants conspired with others to sell the artwork to customers and falsely represent that the art was all produced from locally sourced materials and made by Alaska Natives. Court documents outline that Macasaet misrepresented to customers that he was the sole artisan of the totem poles carved and sold at Rail Creek LLC. Court documents also describe that Cabansag and Reginio misrepresented to customers that they were the sole artisans of stone carvings sold in both stores under the names “Simeon” and “jr,” respectively. During the course of the conspiracy, the defendants and others involved in the scheme sold hundreds of Philippine made stone and wood carvings as authentic Alaska Native carvings. Macasaet was sentenced to five years’ of probation and 250 hours of community service. Cabansag was sentenced to three years’ supervised release and time served. Reginio was sentenced to three years’ probation release and a $5,000 fine. All defendants are required to joint and several payment of restitution to the victims in this case and are required to write apology letters to the victims and the Tlingit and Haida Indian Tribes to be published publicly. “The defendants’ actions represent a profound betrayal of the Alaska Native artisans who take immense pride in preserving and practicing their craft,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Their fraudulent conduct not only jeopardizes the livelihoods of genuine artists, but also disrespects the rich cultural heritage to which two of the defendants belong. These sentencings represent a critical step toward securing justice for tribal communities and the innocent victims who were deceived in this case through forgery and misrepresentation. Our office remains steadfast in its commitment to upholding the integrity of Indian Arts and Crafts laws through prosecutions, safeguarding both Alaska Native culture and the integrity of art for all consumers.” “The Indian Arts and Crafts Board administers and enforces the Indian Arts and Crafts Act, a truth-in-marketing law,” said IACB Director Meridith Stanton. “The Act is intended to rid the Alaska Native and Indian arts marketplace of counterfeits to protect the cultural heritage and economic likelihoods of Alaska Native and Indian artists and their Tribes and Villages, as well as the buying public. Authentic Alaska Native art, such as totem poles which hold profound significance among the Tlingit and Haida, is an important tool for passing down cultural traditions, artistic skills, and traditional knowledge from one generation to the next. Travis Macasaet, a member of the Tlingit and Haida Indian Tribes, was a key participant in the Rodrigo family’s wide-ranging conspiracy to sell Philippine made totem poles and stone carvings as Alaska Native made. As an Alaska Native, he had the credibility to vouch for the carvings’ authenticity with customers. Indeed, Macasaet went so far as to sign the totem poles and take pictures with the carvings as the purported artist, falsely asserting that he had made them. Simeon Cabansag, an Alaska Native who also worked at one of the Rodrigo’s stores, similarly sold imported stone carvings as made by himself and other Alaskan Natives. Counterfeits, such as those marketed for huge sums of money by Macasaet, Cabansag, and Jessie Regino acting on the behest of the Rodrigos, tear at the very fabric of Alaska Native culture, livelihoods, and communities.” “Travis Macasaet, Simeon Cabansag, and Jessie Reginio were employed by the Rodrigos and collaborated with them to misrepresent Philippine made stone carvings and totem poles as Alaska Native made,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Cabansag used his tribal affiliation and falsely told the public he was the artist of the imported stone carvings. Macasaet used his tribal affiliation and falsely told the public that he was the artist of the wooden totem poles. These deceptive business practices cheated customers and undermined the economic livelihood of Alaska Native artists. Our special agents investigate crimes in violation of the Indian Arts and Crafts Act on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board. Protecting Alaska Native culture and traditions is a critical part of the act. We thank our partners at the U.S. Department of Justice, the IACB, CBP, and the U.S. Forest Service for their assistance with this investigation.” Co-conspirators in this case include: Cristobal Rodrigo was sentenced to two years in prison in August 2023 for his role in the scheme. His sentence was reduced to 18 months in June 2024, but remains the longest sentence a defendant has received for any Indian Arts and Crafts Act violation in the U.S., according to the Indian Arts and Crafts Board. Glenda Rodrigo was sentenced to up to six months’ home confinement and 240 hours of community service on July 8, 2024. Christian Rodrigo was sentenced to up to three months’ home confinement and 200 hours of community service on July 8, 2024. Cameron Losi, fka “Cameron Lawrence,” 39, was charged with 29 federal counts in February 2024. The Department of Interior – U.S. Fish and Wildlife Service and Office of Law Enforcement, with assistance from the Indian Arts and Crafts Board, U.S. Customs and Border Protections, and U.S. Department of Agriculture, investigated the case. Assistant U.S. Attorney Jack Schmidt prosecuted the case. If you suspect potential Indian Arts and Crafts Act violations are being committed, a complaint may be submitted through the Indian Arts and Crafts Board’s online complaint form, www.doi.gov/iacb/should-i-report-potential-violation, by emailing iacb@ios.doi.gov, or by calling 888-278-3253. ###


title: Fresno County Man Indicted for Mailing Falsified Disability Insurance Claims

component: USAO - California, Eastern

body_text: FRESNO, Calif. — A federal grand jury returned an eight-count indictment against Leonel Hernandez, 51, of Parlier, charging him with mail fraud, U.S. Attorney Phillip A. Talbert announced. According to court documents, Hernandez was employed as a supervisor for a farm labor contractor in Sanger. Between March 2017 and October 2020, Hernandez submitted falsified disability insurance claims using identities of individuals known to him, including some who were already deceased and some who were farm laborers in Sanger or Fresno. Hernandez forged physician signatures on the disability insurance claim forms, falsely certifying that the physicians had examined the claimants and falsely certifying other medical information that was allegedly obtained through such examinations. Hernandez used the U.S. mail to submit at least 20 claims and caused losses exceeding $300,000. This case is the product of an investigation by the Federal Bureau of Investigation and the California Employment Development Department. Assistant U.S. Attorneys Chan Hee Chu and Joseph Barton are prosecuting the case. If convicted, Hernandez faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Former Hinds County Sheriff Convicted for Soliciting Bribes and Providing Ammunition to a Convicted Felon

body_text: Jackson, Miss. – On Friday, November 8, 2024, A federal jury convicted Marshand Crisler, a former Hinds County, Mississippi Sheriff, on both counts of an indictment charging him with soliciting and accepting $9,500 in bribes and for knowingly providing ammunition to a convicted felon. The trial lasted three days and the jury deliberated for approximately two hours. According to court documents and evidence presented at trial, Crisler, 55, was appointed as Sheriff of Hinds County in August 2021. In September, October, and November 2021, Crisler solicited and accepted $9,500 in cash bribes in exchange for agreeing to provide information concerning criminal investigations to the convicted felon who paid the bribes, protect a jailed family member of that felon by moving that family member to a safer place within the Hinds County Jail, and award employment with the Hinds County Sheriff’s Office to the felon. Crisler also gave ammunition to that same convicted felon, knowing that the person was a convicted felon. It is against federal law for a public official to solicit or accept bribes. It is also against federal law to provide firearm ammunition to a known convicted felon. Crisler is scheduled for sentencing on February 6, 2025, and faces a maximum penalty of 10 years in prison and a $250,000 fine for each offense. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. “This conviction should serve as notice to public officials in Mississippi who sell their office in exchange for bribes that the Department of Justice will work to hold them accountable,” said U.S. Attorney Todd W. Gee. “The steadfast commitment of the FBI and the USAO in protecting the community has been exemplified with the conviction of Mr. Crisler,” said FBI Special Agent in Charge Robert A. Eikhoff. “Public officials accepting bribes and violating the public’s trust will continue to be aggressively investigated by the FBI.” The case was investigated by the FBI. Assistant U.S. Attorneys Herbert S. Carraway and Charles W. Kirkham prosecuted the case.


component: USAO - Massachusetts

body_text: BOSTON – Jack Douglas Teixeira, a former member of the United States Air National Guard (USANG) stationed in Massachusetts, was sentenced today in federal court in Boston for retaining and transmitting hundreds of pages of classified National Defense Information (NDI), including many documents designated Top Secret, on an online social media platform in 2022 and 2023. Teixeira, 22, of North Dighton, Mass., was sentenced by U.S. District Court Judge Indira Talwani to 15 years in prison to be followed by three years of supervised release. Teixeira was also barred from having contact with foreign agents. In March 2024 , Teixeira pleaded guilty to six counts of willful retention and transmission of classified information relating to the national defense. Teixeira was arrested in April 2023 and charged by criminal complaint with retention and transmission of NDI and unauthorized removal and retention of classified documents or materials. He was subsequently indicted by a federal grand jury in Boston in June 2023 . He has remained in federal custody since his arrest. “Jack Teixeira repeatedly shared classified national defense information on a social media platform in an attempt to impress anonymous friends on the internet – instead, it has landed him a 15-year sentence in federal prison,” said Attorney General Merrick B. Garland. “Teixeira’s profound breach of trust endangered our country’s national security and that of our allies. This sentence demonstrates the seriousness of the obligation to protect our country’s secrets and the safety of the American people.” “Mr. Teixeira is responsible for engaging in one of the most significant leaks of classified documents and information in United States history, which resulted in exceptionally grave and long-lasting damage to the national security of the United States. He exploited his Top-Secret security clearance to share critical defense information online. In doing so, he exposed sensitive defense information involving our allies, putting our intelligence community and our troops at risk,” said Acting United States Attorney Joshua S. Levy. “Leaking and distributing classified information poses significant and real consequences across the globe. Today, justice was served for all the men and women serving our country overseas with honor and fealty to their oath.” “This sentencing is a stark warning to all those entrusted with protecting national defense information: betray that trust, and you will be held accountable,” said FBI Director Christopher Wray. “Jack Teixeira’s criminal conduct placed our nation, our troops, and our allies at great risk. The FBI will continue to work diligently with our partners to protect classified information and ensure that those who turn their backs on their country face justice.” “Jack Teixeira is the textbook example of an insider threat, and today’s sentence holds him accountable for being one of the most prolific leakers of classified national defense information in American history. This former Air National Guardsman grossly betrayed our country and the oath he took to safeguard its secrets in order to boost his ego and impress his friends,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This was not a victimless crime. The exceptionally grave damage he caused will impact our national security for decades to come. This case should serve as a warning to others that the FBI will not hesitate to investigate anyone who discloses classified material to anyone not authorized to receive it.” “Teixeira violated his oath to defend the United States by recklessly and repeatedly sharing highly classified national defense information on a social media platform,” said Roman Rozhavsky, Special Agent in Charge of the FBI Washington Field Office's Counterintelligence Division. “His callous disregard for his duty undermined national security and risked the safety of U.S. and allied troops. The FBI moved swiftly to arrest Teixeira, and today's sentence reflects the gravity of his crimes. The FBI will continue to hold accountable anyone who divulges U.S. secrets and threatens the security of the American people." Teixeira enlisted in the USANG in September 2019. Until his arrest in 2023, he served with the 102d Intelligence Wing at Otis USANG Base in Massachusetts as a Cyber Defense Operations Journeyman. Teixeira’s primary responsibility was maintaining and troubleshooting the classified workstations of other members of the 102 Intelligence Wing. In order to perform his job, Teixeira was granted a Top-Secret//Sensitive Compartmented Information security clearance in 2021. Beginning in or around January 2022, Teixeira unlawfully retained and transmitted NDI classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information (SCI), onto the social media platform Discord to persons not authorized to receive such information. Teixeira used a secure workstation at the Otis USANG Base to conduct hundreds of searches for classified documents containing NDI that were unrelated to his duties. On two separate occasions, Teixeira’s superiors warned him not to take notes on classified intelligence information and to stop conducting “deep dives” into classified intelligence information. Despite these warnings and his considerable training, Teixeira purposefully and repeatedly removed classified information and documents containing NDI without authorization from the secure facility where he worked. Teixeira subsequently transmitted the information by typing it into an online social media platform, where it was further transmitted by other users. Teixeira also posted images of hundreds of classified documents to a social media platform, nearly all of which bore standard classification markings – including “SECRET,” “TOP SECRET” and SCI designations – indicating that they contained highly classified United States government information. The documents and information illegally disseminated by Teixeira discussed a range of topics including descriptions of the Russia-Ukraine conflict and troop movements on a particular date. The information he retained and disseminated was derived from sensitive U.S. intelligence, gathered through classified sources and methods. Shortly before his arrest in April 2022, Teixeira took steps to conceal his disclosures by destroying and disposing of his electronic devices, deleting his online accounts, and encouraging his online acquaintances to do the same. Attorney General Garland; Acting U.S. Attorney Levy; FBI Director Wray; FBI SAC Cohen; and FBI Washington SAC Rozhavsky made the announcement today. Valuable assistance was provided by the Naval Criminal Investigative Service; Air Force Office of Special Investigations; and the U.S. Attorney’s Office for the Eastern District of Virginia. Assistant U.S. Attorneys Nadine Pellegrini and Jared C. Dolan, Chief and Deputy Chief of the U.S. Attorney’s National Security Unit, respectively, Jason A. Casey of the U.S. Attorney’s National Security Unit, and Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.


title: Montgomery County Man, N.J. Woman Sentenced for Conspiracy to Commit Visa Fraud, Conspiracy to Obstruct Justice, Respectively

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that two defendants charged for their roles in the alleged Savani Group racketeering conspiracy have been sentenced by United States District Court Judge Jeffrey L. Schmehl. Vivek Savani, 37, of North Wales, Pennsylvania, was sentenced today to 10 days' imprisonment, three years of supervised release, the first 60 days of which are served in home detention, a $1,000 fine, and a $100 special assessment for conspiracy to commit visa fraud. He pleaded guilty to that offense in July, admitting involvement in a scheme to unlawfully obtain H1-B nonimmigrant work visas, which allow an employer to temporarily employ a foreign worker in the United States on a non-immigrant basis in a “specialty occupation.” Susan Malpartida, 29, of Passaic, New Jersey, was sentenced on Friday to one year of probation, a $500 fine, and a $100 special assessment for conspiracy to obstruct justice. In May, Malpartida pleaded guilty to lying to a federal grand jury in an effort to thwart a government investigation into serious visa fraud crimes allegedly committed at her employer, American Unity Dental. Vivek Savani and Malpartida were among 12 defendants charged in a sweeping 42-count indictment unsealed in January 2023, which alleged that, for more than a decade, brothers Bhaskar Savani, Arun Savani, and Niranjan Savani, and others operated a criminal enterprise through a multi-state network of dental practices and related dental businesses. (Note: Vivek Savani is not related to the Savani brothers.) The case is scheduled to go to trial in April 2025. This case was investigated by the FBI; the Department of Health and Human Services Office of Inspector General; IRS Criminal Investigation; Homeland Security Investigations; the Department of State’s Diplomatic Security Service; the Food and Drug Administration Office of Criminal Investigations; the Department of Labor Office of Inspector General; the Pennsylvania Attorney General’s Office; and the State of Iowa Medicaid Fraud Control Unit. The case is being prosecuted by Assistant United States Attorneys Lesley Bonney, Kevin Jayne, and Anthony Scicchitano, and Department of Justice Money Laundering and Asset Recovery Section Attorney Darrin McCollough, Senior Policy Advisor. The asset seizure and forfeiture is being prosecuted by Assistant United States Attorneys Sarah Grieb and Andrew Jenemann.


title: Stockton Man Sentenced to 2 Years in Prison for Aggravated Identity Theft

body_text: SACRAMENTO, Calif. — Charles Dean Good, 55, of Stockton, was sentenced today to two years in prison for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced. According to court documents, Good stole hundreds of thousands of dollars in US postage stamps from the US Postal Service by passing counterfeit checks in the names of identity-theft victims. He passed the bad checks at numerous post offices in Sacramento and San Joaquin Counties. In connection with the postage-stamp-theft scheme, Good possessed and used the name and California driver’s license number of at least one identity-theft victim. Between Feb. 2, 2012, and Jan. 18, 2019, he passed at least 1,326 bad checks, for a total loss to the U.S. Postal Service of at least $252,631, which he was ordered to pay in restitution. This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.


title: Fort Dodge Man Guilty of  Possession with Intent to Distribute Methamphetamine

component: USAO - Iowa, Northern

body_text: Craig Carnell Pickens, age 41, from Fort Dodge, Iowa, pled guilty to possession with intent to distribute methamphetamine. At the plea hearing, evidence showed, law enforcement stopped a vehicle for an equipment violation. Upon contacting the driver, law enforcement noticed an odor of marijuana coming from the vehicle and asked the driver and Pickens, who was the passenger, to exit the vehicle. Both occupants initially refused to exit. Pickens eventually produced a glass jar of marijuana and a marijuana blunt from a backpack that was at his feet and provided it to law enforcement through the sunroof of the vehicle. After numerous requests by law enforcement, Pickens eventually exited the vehicle and was arrested. A search of the vehicle discovered multiple bags of methamphetamine totaling approximately 180 grams. Methamphetamine was found in the backpack that was at Pickens’ feet as well as drug paraphernalia. Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Pickens remains in custody of the United States Marshal pending sentencing. Pickens faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years to life of supervised release following any imprisonment. The case was investigated by the Garner Police Department and State of Iowa Department of Public Safety, Division of Narcotics Enforcement and is being prosecuted by Assistant United States Attorney Kraig R. Hamit. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-3032. Follow us on X @USAO_NDIA.


title: Las Vegas Man Sentenced To Over 16 Years In Prison For Sexual Exploitation Of Teenager

component: USAO - Nevada

body_text: LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Jennifer A. Dorsey to 16 years and eight months in prison to be followed by 10 years of supervised release for coercion and enticement, child sexual exploitation, and possession of child sexual abuse material (CSAM). According to court documents, Kenton Hardy King (29) met a 15-year-old child through Omegle, an online chat platform. In June 2020, he coerced and enticed the victim to engage in sexual activity with him and to engage in sexually explicit conduct for the purpose of producing sexually explicit material. King possessed CSAM on two of his cell phones. He threatened to send images and video of the victim to the victim’s family, friends, and schoolmates. In June 2024, following a five-day trial, a jury found King guilty of one count each of coercion and enticement; sexual exploitation of children; and possession of child pornography. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement. The FBI and the Henderson Police Department investigated the case. Assistant United States Attorneys Steven Rose and Jean Ripley prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or https://report.cybertip.org . ###


title: Convicted Felon Sentenced to Nearly Four Years in Federal Prison for Illegal Firearm Possession and Violating Sex Offender Laws

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Camela C. Theeler has sentenced a Pine Ridge, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person and Failure to Register as a Sex Offender. The sentencings took place on October 28, 2024. As to the conviction for Possession of a Firearm by a Prohibited Person, Jason Pumpkin Seed, age 36, was sentenced to three years and 10 months in federal prison, followed by three years of supervised release. For the conviction for Failure to Register as a Sex Offender, Pumpkin Seed was sentenced to 18 months in federal prison, followed by five years of supervised release. The Court ordered the prison sentences and periods of supervised release to be served concurrently. Pumpkin Seed was also ordered to pay $200 in special assessments to the Federal Crime Victims Fund. A federal grand jury indicted Pumpkin Seed in July and November of 2023. He pleaded guilty to both charges on July 23, 2024. The conviction for possessing a firearm resulted from Pumpkin Seed’s arrest after fleeing Rapid City Police officers in a stolen car in February of 2023. After Pumpkin Seed abandoned the car, officers recovered a loaded Hi-Point semi-automatic pistol with an obliterated serial number inside the car. Pumpkin Seed’s DNA was recovered from the car and the firearm. At the time he possessed the firearm, Pumpkin Seed was a convicted felon who is prohibited from possessing firearms, The conviction for failing to register as a sex offender stems from Pumpkin Seed failing to register his address with the sex offender compliance officer in May of 2023, as required by federal law. Pumpkin Seed had previously been convicted in federal court of a violent sex offense. His sex offense conviction requires him to register as a sex offender for the rest of his life. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. This case is also part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Rapid City Police Department, and the U.S. Marshals Service. Assistant U.S. Attorney Heather Knox prosecuted the case. Pumpkin Seed was immediately remanded to the custody of the U.S. Marshals Service.


title: Three People Indicted on Charges Related to Hate Crime Hoax

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces that Derrick Bernard Jr., 35, Ashely Blackcloud, 40, and Deanna West, 38, were indicted by a federal grand jury for maliciously conveying false information about a threat made by means of fire: a burning cross in front of a campaign sign defaced with a racial slur. According to the indictment, the three defendants were charged for their alleged roles in a conspiracy to spread disinformation about the threat. The 2023 Colorado Springs mayoral run-off election involved Candidate 1, who was Black, and Candidate 2, who was white. After the initial election but before the run-off, Bernard sent a message in which he explained he was “mobilizing my squad in defense. Black ops style big brother.” He also sent messages referencing a desire to prevent “the klan” from gaining political control of the city. Bernard then worked with Blackcloud and West to stage, at an intersection in the City of Colorado Springs in the early hours of April 23, 2023, a cross burning in front of a campaign sign for Candidate 1 defaced with a racial slur. The three then allegedly spread false information about the event through an email from an anonymous source to various news and civic organizations. All three defendants made their initial appearances in front of Magistrate Judge Timothy P. O’Hara. The charges in the indictment are allegations and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt. The investigation was conducted by the Federal Bureau of Investigation, with substantial assistance from the Colorado Springs Police Department. The case is being prosecuted by Assistant United States Attorneys Bryan Fields and Rebecca Weber. Case Number: 24-cr-00320-RMR


title: Foreign National Pleads Guilty to Laundering Millions of Dollars in Illicit Proceeds from Cryptocurrency Investment Scams

component: USAO - California, Central

body_text: LOS ANGELES – A foreign national pleaded guilty today to a federal criminal charge for his role in a scheme to launder proceeds from cryptocurrency investment scams. Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty to one count of conspiracy to commit money laundering. “Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.” According to court documents, Li admitted that he conspired with others to launder funds obtained from victims through cryptocurrency scams and related fraud. In furtherance of the conspiracy, he communicated with his co-conspirators through encrypted messaging services. To conceal or disguise the nature, location, source, ownership, and control of the fraudulently obtained victim funds, Li would instruct co-conspirators to open U.S. bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds. Li and other co-conspirators received victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators. Li admitted that at least $73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, including at least $59.8 million deposited from U.S. shell companies that laundered victim proceeds. “Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department. Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against U.S. victims — wherever the perpetrators are located.” “This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime,” said Acting Assistant Director of Investigations Michael Ball of the U.S. Secret Service (USSS). Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to Los Angeles. United States District Judge R. Gary Klausner scheduled a March 3, 2025, sentencing hearing, at which time Li will face a statutory maximum sentence of 20 years in federal prison. USSS’s Global Investigative Operations Center is investigating the case. Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, the Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and the Justice Department’s Office of International Affairs provided assistance. Assistant United States Attorneys Maxwell Coll of the Cyber and Intellectual Property Crime Section and Nisha Chandran of the Corporate and Securities Fraud Strike Force along with Justice Department Trial Attorney Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team are prosecuting this case. If you or someone you know is a victim of cryptocurrency investment scams, report it to IC3.gov .


title: Foreign National Pleads Guilty to Laundering Millions in Proceeds from Cryptocurrency Investment Scams

body_text: Daren Li, 41, a dual citizen of China and St. Kitts and Nevis, and a resident of China, Cambodia, and the United Arab Emirates, pleaded guilty today to one count of conspiracy to commit money laundering for his role in a scheme to launder millions of dollars in proceeds of cryptocurrency investment scams. “Daren Li and his co-conspirators laundered over $73 million from the victims of cryptocurrency investment scams, using a web of shell companies and international bank accounts,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Although Li committed this offense from outside the United States, he was not beyond the reach of the Justice Department. Today’s plea reflects our ongoing commitment to working with our domestic and international partners to hold accountable anyone responsible for cryptocurrency investment fraud against U.S. victims — wherever the perpetrators are located.” Li was arrested on April 12 at Hartsfield-Jackson Atlanta International Airport and subsequently transported to the Central District of California. According to court documents, Li admitted that he conspired with others to launder funds obtained from victims through cryptocurrency scams and related fraud. In furtherance of the conspiracy, he communicated with his co-conspirators through encrypted messaging services. In order to conceal or disguise the nature, location, source, ownership, and control of the fraudulently obtained victim funds, Li would instruct co-conspirators to open U.S. bank accounts established on behalf of shell companies and would monitor the receipt and execution of interstate and international wire transfers of victim funds. Li and other co-conspirators would receive victim funds in financial accounts they controlled, and then monitor the conversion of victim funds to virtual currency, specifically Tether (USDT), and the subsequent distribution of that virtual currency to cryptocurrency wallets controlled by Li and his co-conspirators. Li admitted that at least $73.6 million in victim funds were directly deposited into bank accounts associated with him and his co-conspirators, including at least $59.8 million deposited from U.S. shell companies that laundered victim proceeds. “Financial criminals and the money launderers who enable them wreak untold harm, ruining lives in the process,” said United States Attorney Martin Estrada for the Central District of California. “Investors should be diligent and on guard against anyone offering quick riches via new, exotic investments. A healthy dose of skepticism could prevent financial ruin down the road.” “This investigation demonstrates how domestic and international partnerships are vital to successfully combatting transnational crime,” said Acting Assistant Director of Investigations Michael Ball of the U.S. Secret Service (USSS). Li is scheduled to be sentenced on March 3, 2025. Li 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. USSS’s Global Investigative Operations Center is investigating the case. Homeland Security Investigations’ El Camino Real Financial Crimes Task Force, Customs and Border Protection’s National Targeting Center, the Dominican Republic National Drug Directorate Sensitive Investigative Unit and Fugitive Task Force, U.S. Marshals Service, Drug Enforcement Administration, and Justice Department’s Office of International Affairs provided assistance. Trial Attorney Stefanie Schwartz of the Criminal Division’s Computer Crime and Intellectual Property Section’s National Cryptocurrency Enforcement Team and Assistant U.S. Attorneys Maxwell Coll and Nisha Chandran for the Central District of California are prosecuting the case. If you or someone you know is a victim of cryptocurrency investment scams, report it to IC3.gov .


title: Tahlequah Resident Pleads Guilty To Federal Drug And Firearm Charges

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

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Trae Allen Cordell, age 30, of Tahlequah, Oklahoma, entered a guilty plea to one count of Possession with Intent to Distribute Methamphetamine and one count of Felon in Possession of Firearm. The Indictment alleged that on April 3, 2024, Cordell knowingly and intentionally possessed 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance, with intent to distribute. The Indictment also alleged that on the same date, Cordell knowingly possessed two semi-automatic pistols after having been convicted of a crime punishable by imprisonment for a term exceeding one year. The charges arose from an investigation by the Cherokee County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Honorable Gerald L. Jackson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Cordell will remain in the custody of the United States Marshal Service pending sentencing. Assistant United States Attorney T. Cameron McEwen represented the United States.


title: Edmond Resident Pleads Guilty To Attempted Coercion And Enticement

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lee Edward Redman, age 52, of Edmond, Oklahoma, entered a guilty plea to one count of attempting to coerce and entice a minor into illegal sexual activity. The Indictment alleged that beginning on or about October 21, 2022, and continuing until October 24, 2022, Redman knowingly attempted to persuade, induce, entice, and coerce an individual under the age of 18 years old to engage in sexual activity for which any person can be charged with a criminal offense. The charges arose from an investigation by the Muskogee County Sheriff’s Office and the Federal Bureau of Investigation. The Honorable Judge D. Edward Snow, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Redman will remain in the custody of the United States Marshal Service pending sentencing. Assistant United States Attorney Morgan Muzljakovich represented the United States.


title: Virginia Beach man pleads guilty to federal drug trafficking and firearms crimes

body_text: NORFOLK, Va. – A Virginia Beach man pled guilty today to possession of a machinegun, being a felon in possession of a firearm, possession with intent to distribute fentanyl, and possession of a firearm during and in relation to a drug trafficking crime. According to court documents, on June 8, Taekwon Malik Morris, 27, was driving a vehicle with expired temporary tags in Virginia Beach when Virginia Beach Police (VBPD) officers pulled up behind him at an intersection. Morris got out of the vehicle and began to inspect his rear tires. As officers approached Morris and told him that he was being stopped, he fled. After a brief chase, Morris was apprehended. Officers located a 9mm handgun equipped with a machine gun conversion device (MCD) on the driver-side floorboard in plain view. Officers also recovered three pills containing Oxycodone, 91 pills containing fentanyl, and $8,887 bound in rubber bands from Morris during his arrest. Morris previously was convicted of grand larceny of a firearm. As a felon, Morris cannot legally possess firearms or ammunition. Morris is scheduled to be sentenced on March 13, 2025. He faces a mandatory minimum of five years and up to life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after U.S. District Judge Elizabeth W. Hanes accepted the plea. Assistant U.S. Attorney Amanda L. Cheney is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-99.