title: Florida Ophthalmology Practice Agrees to Pay $1.3M to Resolve Allegations of Fraudulent Claims for Cranial Ultrasounds

component: Civil Division

body_text: Brandon Eye Associates P.A. (Brandon Eye), an ophthalmology practice with offices in Brandon, Sun City and Plant City, Florida, has agreed to pay $1.3 million to resolve alleged violations of the False Claims Act and an analogous Florida statute arising from its billing for trans-cranial doppler ultrasounds (TCDs) provided through a kickback arrangement with a third party. Brandon Eye has agreed to cooperate with the Justice Department’s investigations of other participants in the alleged scheme. “The payment of kickbacks can bias medical decision making, result in unnecessary services, and drive up health care costs at the expense of the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will continue to hold accountable those who enter into kickback arrangements that undermine the integrity of federal health care programs.” The settlement announced today resolves allegations that Brandon Eye knowingly submitted, and caused the submission of, false claims for medically unnecessary TCDs performed on Brandon Eye’s patients. Brandon Eye and a third-party provider of turnkey mobile TCD services, through an agreement, performed TCDs on Brandon Eye patients who had been diagnosed with common health conditions such as diabetes, hypertension and glaucoma. Before the patient received the TCD result, Brandon Eye and the third-party provider identified the patients as having received a serious diagnosis — most commonly of occlusion and stenosis of their cerebral arteries — that could qualify the patient for reimbursement of a TCD by Medicare or Medicaid. However, nearly all patients who received TCDs never had occlusion and stenosis of cerebral arteries, and that diagnosis was accordingly not reflected in the patient’s medical history or in the TCD results. For each TCD ordered for each Medicare Part B patient, Brandon Eye claimed reimbursement for the technical component of the test, paid the third-party TCD provider based on the volume or value of tests ordered, and referred the patient to the TCD provider’s preferred radiology group for the TCD’s professional component. The United States alleged that as a result of this scheme, Brandon Eye submitted, or caused the submission of, false claims to Medicare and Medicaid for TCDs that were medically unnecessary, that were premised on false diagnoses, and that resulted from violations of the Anti-Kickback Statute and the Stark Law. Of the $1.3 million total settlement amount, $1,210,245.70 is to be paid to the United States, and $89,754.30 is to be paid to the State of Florida for its share of Medicaid, which is a jointly funded federal and state program. “This settlement demonstrates the continued commitment of the U.S. Attorney’s Office to investigate and hold responsible medical providers seeking reimbursement from federal health care programs for unnecessary medical tests at taxpayers’ expense,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to pursue these actions against providers who exploit federal health care programs for personal gain.” “We are all victims when the Medicare and Medicaid systems taxpayers fund are cheated,” said Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office. “This is why the FBI vigorously investigates alleged kickback schemes and false billing practices, because it is our mission to protect the American people.” “Kickback arrangements meant to boost company profits can corrupt the legitimate medical decision-making process and undermine the integrity of federal healthcare programs,” said Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners will continue to pursue allegations of improper billing and kickback schemes to protect both Medicare and Medicaid and those served by those programs.” The settlement 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 Middle District of Florida, with assistance from HHS-OIG and the FBI. Trial Attorney Nelson Wagner of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Mamie Wise for the Middle District of Florida handled the matter. The government’s pursuit 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 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Hartford, Connecticut Man Sentenced to 35 Months in Northeast Kingdom Drug Conspiracy

component: USAO - Vermont

body_text: Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that on November 8, 2024, Marvin Byrd, 29, of Hartford, Connecticut, was sentenced by Chief United States District Judge Christina Reiss to a term of 35 months’ imprisonment to be followed by a 3-year term of supervised release. Byrd previously pleaded guilty to conspiracy to distribute controlled substances, including fentanyl. According to court records, Byrd agreed with multiple other individuals to acquire and ultimately distribute controlled substances in Orleans County in Vermont. Between at least March and August 2023, Byrd—who went by “TJ” while in Vermont—stayed with multiple local residents in Orleans County and used their residences as places to prepare and distribute controlled substances. The last residence Byrd occupied for that purpose was in Barton, Vermont. Investigators performed multiple controlled purchases involving Byrd and his coconspirators in that time, including one purchase of fentanyl directly from Byrd in April 2023. United States Attorney Nikolas P. Kerest noted that this case was part of a sustained joint federal, state, county and local law enforcement investigation into drug-and-firearms-trafficking activities in Vermont’s Northeast Kingdom. He stated that the United States Attorney’s Office remains committed to its partnerships in the Kingdom and their long-term, in-depth investigations. U.S. Attorney Kerest commended the collaborative investigatory efforts of the Northeast Vermont Drug Task Force; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; the Orleans County Sheriff’s Department; the Newport Police Department; the Air & Marine Operations division of Customs and Border Protection, and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Matthew Lasher. Byrd was represented by Assistant Federal Public Defender Sara Puls and defense attorney Arthur Ruben, Esq.


title: USP McCreary Lieutenant Indicted for Civil Rights Violations

component: USAO - Kentucky, Eastern

body_text: LONDON, KY – A Federal Bureau of Prisons (FBOP) lieutenant at U.S. Penitentiary (USP) McCreary, in Pine Knot, Kentucky, was indicted on Thursday by a federal grand jury in London, Kentucky, for federal civil rights violations, including violating an individual’s rights under the color of law, falsifying records to impede an investigation, and witness tampering. The indictment alleges that Zachary Toney, 33, while acting under color of law as a USP McCreary lieutenant, repeatedly kicked and struck a victim while the victim was on the ground and handcuffed behind his back, which caused bodily injury to the victim. The indictment further alleges that Toney then wrote a memorandum documenting a false account of his interactions with the victim intended to cover up the unlawful force that he had used against the victim, omitting that he repeatedly kicked and struck the victim and stating that there were no inmate injuries. The indictment also alleges that Toney, while acting as a lieutenant, instructed three correction officers to write reports omitting the force that they had observed Toney using against the victim. “The Justice Department’s mission is to protect the civil rights of all Americans, including those who are incarcerated,” said Deputy Attorney General Lisa Monaco. “As alleged, Lieutenant Zachary Toney assaulted a defenseless person in his custody then tried to cover up that misconduct by falsifying records and tampering with witnesses. These charges make clear we will hold accountable Federal Bureau of Prisons personnel who abuse their positions of authority.” “Correctional officers have an obligation to respect the constitutional rights of the people in their custody and to report honestly on any misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce those obligations in federal as well as state and local facilities.” “We trust Federal Bureau of Prisons employees to foster a safe and humane environment for inmates to serve out their sentences. Instead, this indictment alleges that Toney violently assaulted a defenseless inmate and lied to cover it up,” said Inspector General Michael E. Horowitz of the Justice Department. “The Department of Justice Office of the Inspector General will continue to aggressively investigate any FBOP employee who allegedly violates the civil rights of an inmate in their custody and care.” “Ensuring the safety and security of inmates in the custody of the government is critically important,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “We remain committed to ensuring that custody and care is in accordance with the law.” If convicted, Toney faces a maximum penalty of 10 years in prison for the deprivation of rights charge and a maximum penalty of 20 years in prison for each count of the falsification of records charge and witness tampering charges. Upon any conviction, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Justice Department’s Office of the Inspector General and FBI investigated the case. Assistant U.S. Attorney Zach Dembo for the Eastern District of Kentucky and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case. FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the Department’s reform efforts. Any indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. — END —


title: California Man Sentenced for International Money Laundering Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – A California man was sentenced last week for his involvement in a sophisticated international money laundering and drug trafficking organization. Qinliang Chen, 34, of Rosemead, Calif., was sentenced by U.S. District Court Angel Kelley to 15 months in prison and two years of supervised release. In February 2024, Chen pleaded guilty to money laundering conspiracy. In May 2023, Chen was among 12 individuals from Massachusetts, Rhode Island, New York and California charged in a superseding indictment for their alleged involvement in a sophisticated international money laundering and drug trafficking organization allegedly led by Jin Hua Zhang. According to the charging documents, Zhang’s organization was first detected in 2021 in the greater Boston area, throughout the United States and overseas. It was determined that for a fee, Zhang laundered bulk cash for drug dealers and laundered profits from other illegal businesses. In less than a year, Zhang and his organization allegedly laundered at least $25 million worth of drug proceeds and funds from other illegal businesses. Funds were allegedly traced and seized from the Zhang organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations. On two occasions in 2022, Zhang told an undercover agent that there was bulk cash that needed to be picked up in Florida. Cooperating witnesses picked up the cash in Florida that was delivered by Chen. Specifically, in August 2022, Chen delivered over $125,000 to a cooperating witness. Chen had previously been stopped at the Orlando International Airport trying to bring more than $99,000 in cash through a security checkpoint. At a second meeting in September 2022, over $161,000 in cash in vacuum-sealed bags were seized from a compartment in Chen’s rental car. Zhang pleaded guilty in October 2024 and is scheduled to be sentenced on Jan. 21, 2025. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Christopher Pohl, Brian A. Fogerty and Meghan C. Cleary of Levy’s Criminal Division are prosecuting the case. The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


component: USAO - Florida, Middle

body_text: Tampa, FL – Brandon Eye Associates P.A. (Brandon Eye), an ophthalmology practice with offices in Brandon, Sun City and Plant City, Florida, has agreed to pay $1.3 million to resolve alleged violations of the False Claims Act and an analogous Florida statute arising from its billing for trans-cranial doppler ultrasounds (TCDs) provided through a kickback arrangement with a third party. Brandon Eye has agreed to cooperate with the Justice Department’s investigations of other participants in the alleged scheme. “The payment of kickbacks can bias medical decision making, result in unnecessary services, and drive up health care costs at the expense of the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates that the Justice Department will continue to hold accountable those who enter into kickback arrangements that undermine the integrity of federal health care programs.” The settlement announced today resolves allegations that Brandon Eye knowingly submitted, and caused the submission of, false claims for medically unnecessary TCDs performed on Brandon Eye’s patients. Brandon Eye and a third-party provider of turnkey mobile TCD services, through an agreement, performed TCDs on Brandon Eye patients who had been diagnosed with common health conditions such as diabetes, hypertension and glaucoma. Before the patient received the TCD result, Brandon Eye and the third-party provider identified the patients as having received a serious diagnosis — most commonly of occlusion and stenosis of their cerebral arteries — that could qualify the patient for reimbursement of a TCD by Medicare or Medicaid. However, nearly all patients who received TCDs never had occlusion and stenosis of cerebral arteries, and that diagnosis was accordingly not reflected in the patient’s medical history or in the TCD results. For each TCD ordered for each Medicare Part B patient, Brandon Eye claimed reimbursement for the technical component of the test, paid the third-party TCD provider based on the volume or value of tests ordered, and referred the patient to the TCD provider’s preferred radiology group for the TCD’s professional component. The United States alleged that as a result of this scheme, Brandon Eye submitted, or caused the submission of, false claims to Medicare and Medicaid for TCDs that were medically unnecessary, that were premised on false diagnoses, and that resulted from violations of the Anti-Kickback Statute and the Stark Law. Of the $1.3 million total settlement amount, $1,210,245.70 is to be paid to the United States, and $89,754.30 is to be paid to the State of Florida for its share of Medicaid, which is a jointly funded federal and state program. “This settlement demonstrates the continued commitment of the U.S. Attorney’s Office to investigate and hold responsible medical providers seeking reimbursement from federal health care programs for unnecessary medical tests at taxpayers’ expense,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to pursue these actions against providers who exploit federal health care programs for personal gain.” “We are all victims when the Medicare and Medicaid systems taxpayers fund are cheated,” said Special Agent in Charge Matthew Fodor of the FBI Tampa Field Office. “This is why the FBI vigorously investigates alleged kickback schemes and false billing practices, because it is our mission to protect the American people.” “Kickback arrangements meant to boost company profits can corrupt the legitimate medical decision-making process and undermine the integrity of federal healthcare programs,” said Special Agent in Charge Stephen Mahmood of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners will continue to pursue allegations of improper billing and kickback schemes to protect both Medicare and Medicaid and those served by those programs.” The settlement 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 Middle District of Florida, with assistance from HHS-OIG and the FBI. Trial Attorney Nelson Wagner of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Mamie Wise for the Middle District of Florida handled the matter. The government’s pursuit 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 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: California man sentenced to 240 months for receiving child pornography

component: USAO - Kansas

body_text: KANSAS CITY, KAN. – A California man was sentenced to 240 months in prison after soliciting and receiving child sexual abuse materials. According to court documents, Timothy Vigil, 38, of Lemore, California pleaded guilty to one count of receipt of child pornography. In 2023, the Federal Bureau of Investigation (FBI) arrested Jordan Escobar,18, of Kansas City, Kansas. Escobar admitted to recording child sexual abuse material then distributing it on an online platform. After reviewing Escobar’s electronic devices and a subsequent investigation, agents identified Timothy Vigil as the owner of an account to which Escobar sent the images. Vigil direct messaged Escobar specifically requesting materials containing child pornography. Between December 2023 and January 2024, Vigil also distributed 29 MEGA links to other platform users that contained child sexual abuse material, including more than 3,000 videos. Escobar pleaded guilty to one count of distribution of child pornography and is awaiting sentencing. The Federal Bureau of Investigation (FBI) investigated the case. Assistant U.S. Attorney Audrey McCormick prosecuted the case. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ 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 https://www.justice.gov/psc . ###


title: Bronx Juvenile Detention Center Supervisor Pleads Guilty In Connection With Beating Of 16-Year-Old Resident And False Report

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today the guilty plea of DAQUAN SEYMOUR, a supervisor at the Horizon Juvenile Center (“Horizon”), a secure detention center for juveniles located in the Bronx, New York, in connection with his beating of a 16-year-old resident at Horizon (“Minor Victim-1”), and attempt to cover-up the beating, on April 25, 2022. SEYMOUR pled guilty to depriving Minor Victim-1 of his constitutional rights under color of law. As part of his guilty plea, SEYMOUR admitted that he prepared a false report following the assault of Minor Victim-1 on April 25, 2022, in which he omitted reference to the assault of Minor Victim-1. In addition, as part of his guilty plea, SEYMOUR also agreed not to dispute that he falsified another incident report in connection with an earlier attempted assault of a 17-year-old resident at Horizon (“Minor Victim-2”) on December 29, 2021. SEYMOUR was arrested on July 26, 2023, and pled guilty today before U.S. District Judge Edgardo Ramos. U.S. Attorney Damian Williams said: “Daquan Seymour, a supervisor at a juvenile detention facility, abused his position of authority by assaulting a vulnerable sixteen-year-old boy who was detained pending trial. Seymour also lied on his reports about this and another assault on a minor in his care. Seymour’s pattern of violence toward youth and obstruction has now come to an end as he faces justice. This Office is committed to protecting the constitutional rights of all New Yorkers, including minors residing at youth detention facilities, and will ensure that those who abuse their power and harm vulnerable members of our society are held accountable.” According to the allegations in the Indictment, Superseding Indictment, other public court documents, and statements made in court proceedings: On or about April 25, 2022, SEYMOUR was employed as an Associate Youth Development Specialist at Horizon, which was operated by the New York City Administration for Children’s Services (“ACS”). Associate Youth Development Specialists at Horizon are responsible for, among other things, supervising other staff members and ensuring the safety of all juvenile residents. At the time of the beating, Minor Victim-1 was a 16-year-old juvenile resident at Horizon, who was detained pending trial. Following a confrontation between several staff members and juvenile residents at Horizon, including Minor Victim-1, SEYMOUR, along with a fellow supervisor violently dragged Minor Victim-1 by his forearms across the floor of a residential hall and into a private room (the “Room”). Once inside the Room, SEYMOUR and the other supervisor beat Minor Victim-1, striking him repeatedly and forcefully as Minor Victim-1 lay on the floor. As a result of the beating, Minor Victim-1 suffered bodily injuries, including a deep laceration to his upper lip area, which required Minor Victim-1 to be transported to a nearby hospital for emergency medical care where he received nine stitches. Following the beating of Minor Victim-1, SEYMOUR attempted to cover up his participation in the beating. In particular, SEYMOUR prepared an incident report that described the confrontation between Horizon residents and staff members that immediately preceded the assault but failed to disclose that he dragged or physically assaulted Minor Victim-1. * * * SEYMOUR, 34, of the Bronx, New York, pled guilty to one count of deprivation of rights under color of law, which carries a maximum sentence of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the efforts of the Department of Investigation for their outstanding work on this matter. Mr. Williams also thanked the Special Agents of the U.S. Attorney’s Office for the Southern District of New York for their significant assistance. The prosecution of this case is being handled by the Office’s Civil Rights Unit in the Criminal Division. Assistant U.S. Attorneys Jamie Bagliebter, Lisa Daniels, and Mitzi S. Steiner are in charge of the prosecution.


title: St. Louis County Man Admits Being Caught Again with Child Pornography

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A St. Louis County man only recently released from custody for possession of child pornography on Tuesday admitted being caught with the material while on home confinement. John V. Knowles IV, 45, pleaded guilty in U.S. District Court in St. Louis Tuesday to one count of possession of child pornography. He admitted that after his release from prison in a 2018 child pornography case, he was again in possession of child sexual abuse material. Knowles downloaded the material after police initially searched his home and seized computer equipment, but before he was indicted for the 2018 case. Knowles was released into home confinement from a halfway house on Sept. 1, 2023. When probation officers visited 11 days later, they spotted electronic devices, including iPads, iPhones and laptops, that Knowles was prohibited from possessing or accessing under the terms of his supervised release. A court-approved search of the electronics found child sexual abuse material, Knowles’ plea agreement says. Knowles is scheduled to be sentenced on Jan. 30, 2025. Possession of child pornography is punishable by up to 20 years in prison, a $250,000 fine or both prison and a fine. The FBI, the U.S. Probation Office and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Colleen Lang is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Two Somali Pirates Sentenced To 30 Years Each In Prison For Armed Hostage Taking Of American Journalist

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that ABDI YUSUF HASSAN and MOHAMED TAHLIL MOHAMED were both sentenced to 30 years in prison for hostage taking, terrorism, and firearms offenses, in connection with the 977-day hostage taking of an American journalist in Somalia. A jury in the Eastern District of New York convicted HASSAN and MOHAMED of those offenses in February 2023 following a three-week trial. The sentences were imposed by U.S. District Judge Allyne R. Ross, who also presided over the trial. U.S. Attorney Damian Williams said: “For nearly three years, Michael Scott Moore was held hostage in Somalia by pirates. He was beaten, chained to the floor, and threatened with assault rifles and machine guns. Hassan and Mohamed were key players in that hostage taking. Both abused their positions in Somalia’s government—Hassan, as a senior security official, and Mohamed as an army officer—by keeping a U.S. citizen captive to satisfy their own greed. Today’s sentences demonstrate our resolve to hold those who take Americans hostage accountable for their crimes.” According to the Complaints, Indictments, evidence at trial, and statements made in public court proceedings: In January 2012, Michael Scott Moore, an American freelance journalist, traveled to Somalia to research piracy and the Somali economy. On January 21, 2012, Moore was driving in the vicinity of Galkayo, Somalia, when his vehicle was suddenly surrounded by a group of heavily armed men carrying assault rifles and rocket-propelled grenade launchers. The men pulled Moore from his vehicle, beat him with their weapons, and drove him away in another vehicle to a secluded area, where they held him with two Seychellois fishermen (“Fisherman-1” and “Fisherman-2”). The fishermen had been abducted off the Somali coast in October 2011. Moore was held in various locations in the vicinity of Hobyo, Somalia, for approximately three months. In April 2012, Moore and Fisherman-1 were transferred to a boat, F/V Naham III , which had previously been hijacked in March 2012. The pirates kept Moore and Fisherman-1 captive aboard the Naham III , along with 28 crew members of the ship. Moore learned from the crew members, who were from Vietnam, China, Philippines, and Taiwan, that the hostage takers murdered the captain of the ship when they captured the vessel and that his body was kept in the ship’s freezer. The hostage takers kept Moore on the Naham III until approximately August 2012, when they transferred him back to land. On one occasion, in approximately May 2012, Moore’s captors took him from the Naham III to the Somali bush, where they forced Moore to watch as they hung Fisherman-1 from a tree by his feet and beat Fisherman-1 with a cane. During the torture of Fisherman-1, the pirates who were present were armed with heavy weaponry, including machine guns and grenade launchers. Moore remained a hostage for another two years. During this time, his captors shuttled him between safehouses, chained him at night to prevent his escape, surrounded him with armed guards, and repeatedly threatened him with bodily harm. Moore was also forced to make several proof-of-life videos requesting large ransom payments for his release. The kidnappers provided Moore with almost no information, and his access to the outside world was limited to a radio. In September 2014, following the payment of a ransom, Moore’s captors released him. HASSAN and MOHAMED each played significant roles in Moore’s captivity. HASSAN, a naturalized U.S. citizen, served as the Minister of the Interior (a role that made him responsible for police and security forces) in Galmudug province in Somalia, where Moore was held hostage. HASSAN served as an overall leader of the pirates and headed their efforts to extort a massive ransom from Moore’s aging mother. Among other things, HASSAN directed the production of proof-of-life videos with Moore, participated in negotiations for ransom payments, and used his own home as a base of operations for the pirates. MOHAMED, a serving officer in the Somali army, was a supervisor of the pirates guarding Moore during the early stages of the hostage taking. After Moore had been moved several times, MOHAMED continued to play an essential role in the hostage taking, relying on his military position, training, and experience to serve as the pirates’ head of security and armorer. As head of security, MOHAMED was in charge of moving Moore from location to location around Somalia. MOHAMED also leveraged his military background to provide and repair heavy machine guns, grenade launchers, and other weapons that the pirates used to ensure that Moore could not escape. * *. * In addition to the prison term, HASSAN, 56, of Minneapolis, Minnesota, and MOHAMED, 43, of Mogadishu, Somalia, were sentenced to one day of supervised release. Mr. Williams praised the outstanding efforts of the International Operations Division of the Federal Bureau of Investigation (“FBI”), the FBI’s International Violent Crimes Unit, the FBI Boston Field Office and its Portland Resident Agency, the FBI Minneapolis Field Office, the U.S. Department of State Diplomatic Security Service, the U.S. Attorney’s Office for the Eastern District of New York, the Department of Justice’s Office of International Affairs, and the Counterterrorism Section of the Department of Justice’s National Security Division for their assistance. This prosecution is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorney Sam Adelsberg is in charge of the prosecution, with assistance from Trial Attorney Josh Champagne of the Counterterrorism Section.


title: Convicted Felon Sentenced to 11 Years in Prison for Distributing Fentanyl Following his Release from Prison

body_text: BOSTON – A previously convicted felon was sentenced today in federal court in Boston for his involvement in a fentanyl distribution conspiracy. Ruben Depina, 25, of Rockland, Mass. was sentenced by U.S. District Court Judge Julia E. Kobick to 11 years in prison, to be followed by five years of supervised release. In August 2024, Depina pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 400 grams and more of fentanyl; one count of distributing and possessing with intent to distribute fentanyl; and three counts of distributing and possessing with intent to distribute 40 grams and more of fentanyl. Depina was arrested and charged in September 2023 and has remained in custody since. In May 2023, a law enforcement officer – who previously worked in an undercover capacity – received a call from Depina who introduced himself as “Jake.” Depina told the officer that he recently got out of jail and was contacting his best customers because he was selling drugs again. Depina subsequently participated in four controlled sales in May and June 2023 during which he sold differing quantities of fentanyl to a confidential informant in exchange for cash. Specifically, on or about May 8, 2023, Depina sold approximately 21 grams of fentanyl to the confidential informant; on or about May 16, 2023, Depina sold at least 40 grams of fentanyl to the informant; on or about May 25, 2023, Depina sold at least 40 grams of fentanyl to the informant; and on or about June 5, 2023, Depina sold at least 40 grams of fentanyl to the informant. On June 11, 2023, Depina’s vehicle was observed speeding in East Bridgewater. The vehicle sped off after being stopped by law enforcement and collided with a van at an intersection. When law enforcement approached the vehicle, Depina was observed reaching towards the passenger side floor before complying with instructions to show his hands. Depina was immediately removed through the passenger side window and arrested. During a search of Depina’s vehicle, a loaded firearm, multiple cellphones, a digital scale and a satchel containing at least 20 grams of cocaine base were recovered. On June 12, 2023, during a search of a residence and loft connected to Depina, over 400 grams of fentanyl, multiple cellphones, four firearms, multiple rounds of ammunition, drug paraphernalia (including digital scales and cutting agent) and paperwork in Depina’s name were recovered. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Plymouth County District Attorney’s Office; the Massachusetts State Police; the Suffolk, Plymouth and Bristol County Sheriff's Departments; and the Boston, Brockton, Bridgewater, East Bridgewater, Rockland and Westport Police Departments. Assistant U.S. Attorney Kaitlin R. O’Donnell of the Criminal Division prosecuted the case.


title: Justice Department Sues to Block UnitedHealth Group’s Acquisition of Home Health and Hospice Provider Amedisys

component: Office of the Attorney General

body_text: The Justice Department, together with the Attorneys General of Maryland, Illinois, New Jersey, and New York, filed a civil antitrust lawsuit today to block UnitedHealth Group Incorporated (UnitedHealth)’s proposed $3.3 billion acquisition of rival home health and hospice services provider Amedisys Inc. (Amedisys). The complaint filed in the District of Maryland alleges that the transaction would eliminate competition between UnitedHealth and Amedisys (Defendants). Since UnitedHealth’s prior acquisition of Amedisys’s home health and hospice rival LHC Group Inc. (LHC) in 2023, Defendants have been two of the largest home health and hospice providers in the United States. Eliminating the competition between UnitedHealth and Amedisys would harm patients who receive home health and hospice services, insurers who contract for home health services, and nurses who provide home health and hospice services. “We are challenging this merger because home health and hospice patients and their families experiencing some of the most difficult moments of their lives deserve affordable, high quality care options,” said Attorney General Merrick B. Garland. “The Justice Department will not hesitate to check unlawful consolidation and monopolization in the healthcare market that threatens to harm vulnerable patients, their families, and health care workers.” “Millions of patients depend on United and Amedisys to receive home health and hospice care in the comfort of their homes,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “The Department’s lawsuit demonstrates our commitment to ensuring that consolidation does not threaten quality, affordability, or wages in these vital healthcare markets. I commend the staff of the Antitrust Division for their extraordinary work on this matter.” “American healthcare is unwell. Unless this $3.3 billion transaction is stopped, UnitedHealth Group will further extend its grip to home health and hospice care, threatening seniors, their families and nurses,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I want to thank my colleagues at the Antitrust Division for their tireless efforts to fight on behalf of Americans for a competitive economy.” As described in the complaint , home health and hospice services constitute critically important parts of the American healthcare system. Home health care helps patients recover from hospitalization or receive continuing treatment for a chronic condition at home, while hospice provides comfort and support to terminally ill patients and their family members. Patients rely on the skill and expertise of home health and hospice nurses, who must effectively treat patients at home. Today, Defendants are fierce competitors in the provision of home health and hospice services. According to the complaint, Amedisys’s former CEO and current Board Chairman, has acknowledged that the “pure competition” between UnitedHealth and Amedisys helps them “keep each other honest” and “driv[e] better and better quality” to the benefit of their patients. Further, the two companies view each other as close competitors for home health and hospice nurses. UnitedHealth’s proposed acquisition of Amedisys would eliminate that competition and threaten the benefits it provides. UnitedHealth’s market share after the transaction would make the merger presumptively illegal in: Hundreds of local home health care markets, with an annual volume of commerce exceeding $1.6 billion annually, in 23 states and the District of Columbia; Dozens of local hospice markets, with an annual volume of commerce exceeding $300 million annually, in 8 states; and Hundreds of local markets for home health and hospice nurse labor, employing at least 8,000 nurses, in 24 states. To address some of the overlaps between UnitedHealth and Amedisys, UnitedHealth has proposed to divest certain facilities to VitalCaring Group (VitalCaring). But as the complaint alleges, the proposed divestiture does not alleviate harm in over 100 home health, hospice, and labor markets, which generate at least a billion dollars in revenue annually, serve at least 200,000 patients, and employ at least 4,000 nurses. As further alleged in the complaint, VitalCaring has lower quality scores than either UnitedHealth or Amedisys and is beset by financial challenges, including a potential legal judgment approaching a half-billion dollars. According to a Texas court, before becoming CEO of VitalCaring, its current CEO was running a competitor of VitalCaring while also running VitalCaring “from the shadows.” The United States also seeks civil penalties against Amedisys for falsely certifying compliance with its obligations under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (HSR Act). The complaint alleges that Amedisys violated the HSR Act because, at the time of its sworn certification, Amedisys failed to produce millions of documents or disclose the deletion of other documents. For each day that Amedisys was in violation of the HSR Act, the United States seeks a monetary penalty of up to $51,744, as authorized by statute. UnitedHealth is a publicly traded Delaware corporation headquartered in Minnetonka, Minnesota. UnitedHealth is a vertically integrated insurer, healthcare provider, pharmacy benefit manager, and healthcare software and services vendor that brought in $372 billion in revenue in 2023. In 2022, before their company was acquired by UnitedHealth, LHC nurses and other healthcare professionals made approximately 12 million visits to patients in 37 states and the District of Columbia and earned over $2.3 billion in revenue. Amedisys is a home health and hospice services provider and a publicly traded Delaware corporation headquartered in Baton Rouge, Louisiana. In 2023, Amedisys nurses and other healthcare professionals made 10.6 million visits to patients in 37 states and the District of Columbia, earning the company $2.2 billion in revenue.


title: Convicted Felon Sentenced To 40 Months For Possessing A Firearm

body_text: Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Byron Louder (35, Orlando) to three years and four months in federal prison for possessing a firearm as a convicted felon. Louder entered a guilty plea on August 15, 2024. According to court records, in the late afternoon on December 25, 2022, law enforcement observed Louder standing in the parking lot of a closed business wearing a ski mask, drinking liquor, and conducting several quick hand-to-hand transactions. The officers also observed a firearm in Louder’s waistband. After detaining Louder, a Sig Sauer pistol was recovered from his person. Louder had been convicted of at least three felonies prior to this incident. As a previously convicted felon, he is prohibited from possessing firearms or ammunition under federal law. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orlando Police Department. It was prosecuted by Assistant United States Attorney Stephanie A. McNeff. 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: Former Used-Car Dealer Sentenced to Federal Prison for $3 Million Fraud Scheme

component: USAO - Georgia, Northern

body_text: GAINESVILLE, Ga. - Mitchell C. Simpson, who stole $3 million from companies that provided floor-plan financing to his used-car dealership, has been sentenced to federal prison for wire fraud. “Simpson abused his position of trust and hurt the companies that enabled him to operate his business,” said U.S. Attorney Ryan K. Buchanan. “Our office, along with our law enforcement partners, is dedicated to investigating and prosecuting individuals who take advantage of others under false pretenses.” “Simpson lied to the very people who were the lifeline to his small business,” said FBI Atlanta Senior Supervisory Resident Agent Mitchell Jackson. “We value our partnerships with local and state law enforcement to ensure these offenders are held accountable and the victims get justice.” According to U.S. Attorney Buchanan, the charges and other information presented in court: From early 2012 through early 2019, Simpson operated Mitch Simpson Motors, a used car dealership in Cleveland, Georgia. Three floor-plan lenders, Dealer Financial Holdings LLC, Americash Advance, Inc., and Floorplan Xpress, LLC-OK, each provided Simpson with a revolving line of credit. Commonly known as floor-plan financing, this credit line allowed Simpson to purchase an inventory of vehicles to re-sell to customers. Each line of credit was governed by a written contract, also known as a floor-plan financing agreement. Simpson was required to abide by the terms and conditions of the agreements, and he was required to provide the floor-plan lenders with complete and truthful information concerning all matters related to the agreements. When Simpson wanted to borrow money to purchase a vehicle to add to his dealership’s inventory, he would contact one of the floor-plan lenders and provide that lender with a description of the vehicle, including the vehicle identification number, and the amount of the loan requested. If the vehicle was subject to any other liens or security interests, Simpson was required to disclose that fact to the floor-plan lender. If Simpson led the lender to believe that the vehicle was not subject to any other liens or security interests, the lender would transfer the requested funds to Simpson’s custody and control. In return for the loan, the dealership would grant the floor-plan lender a purchase-money security interest in the vehicle. Simpson was also required to keep the vehicle free from all other liens and security interests until sold. Simpson defrauded the floor-plan lenders by using a single vehicle as collateral for more than one floor-plan loan, which is a deceptive and illegal practice referred to in the used-car industry as double floor-planning and triple floor-planning – a practice expressly prohibited by the floor-plan financing agreements. To hide the double and triple floor-planning, Simpson made false and misleading statements and omitted material facts in his communications with the floor-plan lenders. In addition, whenever Simpson sold a vehicle in which one of the floor-plan lenders held a security interest, Simpson was required to hold the proceeds from the sale of that vehicle in trust for the secured lender and promptly pay the secured lender all amounts due under the applicable floor-plan financing agreement. But Simpson did not always pay the floor-plan lenders, as required. Instead, he engaged in a shell game with vehicle titles and did not always provide truthful information to lenders concerning the location of vehicles and concerning whether vehicles had been sold. This is an illegal practice referred to in the used-car industry as operating “out of trust,” which was expressly prohibited by the floor-plan financing agreements. Simpson’s fraudulent scheme resulted in a loss of more than $3 million to the floor-plan lenders. Mitchell C. Simpson, 56, of Cornelia, Georgia, was sentenced by U.S. District Judge Steve C. Jones to three years, five months in prison to be followed by three years of supervised release. He was also ordered to pay restitution in the amount of $105,803.70. Simpson was convicted of wire fraud on July 2, 2024, after he pleaded guilty. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney John Russell Phillips and former Assistant U.S. Attorney David A. O’Neal prosecuted the case. For further information, please contact USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Southeast Missouri Man Sentenced to 179 Months in Prison on Child Pornography Charge

body_text: CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Tuesday sentenced southeast Missouri man to 179 months in prison for receiving and possessing child sexual abuse material. Justin Wade Welker, 40, was caught after the FBI office in Detroit learned that two people were discussing engaging in sex acts with a minor on the Kik messaging and chat app. The FBI traced one of the participants to Welker’s home in the village of Sedgewickville, in Bollinger County, Missouri. FBI agents approached Welker at work, and he admitted viewing child pornography via Kik. His phone also contained child sexual abuse material. Welker pleaded guilty in U.S District Court in Cape Girardeau in August to one count of receipt of child pornography. The FBI and the Bollinger County Sheriff’s Office investigated the case. Assistant U.S. Attorney Julie Hunter is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: St. Louis Man Caught After 6 Years on the Run Admits Robbing Credit Union

body_text: ST. LOUIS – A man who was on the run for six years after he robbed a St. Louis, Missouri credit union pleaded guilty Tuesday. Daniel Harris, 66, pleaded guilty in U.S. District Court in St. Louis to one felony count of bank robbery. He admitted robbing a credit union in the 4400 block of Chippewa Street in St. Louis on March 15, 2017. Harris approached a teller and placed a note on the counter that read, “I have a gun give me the money now.” The teller handed Harris cash and he left, discarding two jackets and a baseball cap nearby. Investigators found those items and a receipt in a jacket pocket with Harris’ name. His image, captured on surveillance cameras during the robbery, was identified by a relative and a former employer. Harris was indicted Oct. 11, 2017. He was located by the FBI in Phoenix and arrested there on August 9, 2023. Harris is scheduled to be sentenced on March 4, 2025. The charge carries a potential penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine. The St. Louis Metropolitan Police Department and the FBI investigated the case. Assistant U.S. Attorney Linda Lane is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Armed Henderson Drug Trafficker Sentenced to More Than 11 Years in Prison

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

body_text: NEW BERN, N.C. – A Henderson man was sentenced to 138 months in prison for armed drug trafficking. On August 15, 2024, Cedric Neal pled guilty to possession with the intent to distribute 40 grams or more of fentanyl and a quantity of cocaine and possessing a firearm in furtherance of a drug trafficking crime. According to court documents and other information presented in court, Neal, 38, was previously sentenced to 105 months imprisonment for conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. He was released from federal prison on July 27, 2022, and was placed on supervised release for five years. By January 2023, investigators received a tip that Neal—while on supervised release—had resumed drug trafficking activities. Investigators conducted seven controlled purchases of crack, fentanyl, or both from Neal, then executed search warrants at three locations associated with him. The search warrants yielded fentanyl, cocaine, cocaine base, marijuana, and numerous firearms. Ultimately, Neal was held accountable for 1,205 grams of marijuana, 451 grams of cocaine, 288 grams of fentanyl, nine grams of cocaine base, and five firearms. Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Henderson Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Charles E. Loeser prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-40-FL.


title: Second Man Indicted For Series Of Robberies In Polk, Marion, And Hillsborough Counties

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of a criminal complaint charging Ron Yarde (23, Hillsborough) with conspiracy to commit Hobbs Act Robbery. If convicted, Yarde faces a maximum penalty of 20 years in federal prison. Yarde is the second individual charged in connection with these offenses. His alleged accomplice, Malcolm Green, was indicted on September 12, 2024, and is currently pending trial. If convicted, Green faces a minimum sentence of seven years, up to life, in federal prison. According to court documents, between May 27 and July 27, 2024, Yarde, Green, and one other co-conspirator committed a series of robberies in Brooksville, Ocala, and Tampa, robbing a convenience store, a drug store, a gas station and two retail stores. At the time he committed these robberies, Yarde was on state probation for various offenses, including aggravated battery with a deadly weapon, burglary, grand theft, and carrying a concealed firearm. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Diego F. Novaes. A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.


title: Danbury Business Owner Sentenced to Prison for Tax Evasion

component: USAO - Connecticut

body_text: Vanessa R. Avery, United States Attorney for the District of Connecticut, announced that BILL G. MAKROS, 58, of Danbury, was sentenced today by U.S. District Judge Vernon D. Oliver in Hartford to seven months of imprisonment, followed by two years of supervised release, for tax evasion. According to court documents and statements made in court, Makros owned and operated a tree service business known as Budget Tree and Stump Removal Service, LLC. From 2016 through 2020, Makros’ business gross receipts totaled $1,426,915, but he concealed his income by receiving customer payments in the form of checks made payable to “cash” or to him personally, and by depositing the checks into bank accounts other than his business bank account. At times, he also cashed check payments and did not deposit the cash into any business or personal accounts. For the 2016 through 2020 tax years, Makros failed to file his federal individual tax returns, and failed to pay taxes totaling $140,694. In addition, during the COVID-19 pandemic, Makros received two pandemic relief loans totaling $31,200. As part of the application process, Makros submitted IRS Schedule C forms for his business that purported to be part of his tax returns for 2019 and 2020, even though he had not filed tax returns with the IRS for those years. The loans were subsequently forgiven. Judge Oliver ordered Makros to pay $137,672 in restitution to the IRS. On July 1, 2024, Makros pleaded guilty to tax evasion. In 2008, Makros was convicted in Connecticut state court of two counts of failing to pay over sales tax. Makros, who is released on bond, is required to report to prison on January 7, 2025. This investigation was conducted by the Internal Revenue Service – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Anastasia King.


title: Fentanyl Distributor Is Sentenced To Five Years In Prison For Firearms Offense

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – A Charlotte fentanyl distributor was sentenced to five years in prison today for possession of a firearm in furtherance of a drug trafficking crime, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Demetrius Lamar Mattox, 39, was also ordered to serve three years under court supervision after he is released from prison. Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement. According to filed court documents and court proceedings, over the course of an investigation into drug trafficking activities in Charlotte, law enforcement identified Mattox as a local fentanyl distributor. The investigation determined that Mattox sold fentanyl and firearms to a confidential source on multiple occasions between September and October 2023. Mattox pleaded guilty on August 13, 2024. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. The ATF led the investigation. Assistant U.S. Attorney Alfredo De La Rosa 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: Dominican Man Charged with Illegal Reentry

body_text: Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that on October 31, 2024 a federal grand jury returned an indictment charging Luis Edison Capellan-Ortiz, 49, of the Dominican Republic, with illegally reentering the United States after being removed for the commission of an aggravated felony. Capellan-Ortiz entered a plea of not guilty to the charges during an arraignment on November 8, 2024, before United States Magistrate Judge Kevin J. Doyle. On October 21, 2024, at Capellan-Ortiz’s initial appearance, Judge Doyle previously ordered that Capellan-Ortiz be detained during the pendency of this matter. The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Capellan-Ortiz is presumed innocent until and unless proven guilty. Capellan-Ortiz faces up to 20 years of imprisonment if convicted. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors. United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Border Patrol. The prosecutor is Assistant United States Attorney Andrew C. Gilman. Capellan-Ortiz is represented by Assistant Federal Public Defender Sara M. Puls.


title: Convicted Drug Felon Sentenced to 20 Years in Federal Prison for Possessing Loaded Firearm and Trafficking Fentanyl, Heroin, Crack Cocaine, and Cocaine at a North Philadelphia Residence

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Euddy Izquierdo, 42, of Philadelphia, Pennsylvania, was sentenced today by United States District Judge Juan R. Sánchez to 240 months in prison to be followed by 10 years of supervised release for possessing with intent to distribute fentanyl, para-flourofentanyl, heroin, crack cocaine, and cocaine, and unlawfully possessing a firearm. On January 10, 2022, Izquierdo was arrested by the Drug Enforcement Administration, after agents seized a large cache of drugs from a residence on the 2000 block of Sanger Street in Philadelphia. The defendant admitted to the agents that he rented the place to store and package his drugs, which he sold in the city’s Kensington neighborhood. Inside the basement apartment, DEA agents recovered 237.8 grams of para-flourofentanyl (a fentanyl analogue), 93.1 grams of fentanyl, 132.1 grams of heroin, 29.7 grams of crack cocaine, 153.8 grams of cocaine, and 26 grams of xylazine (also known as “tranq”), a veterinary sedative commonly used as a cheap cutting agent to dilute controlled substances on the street and increase profits for drug traffickers. Agents also recovered a loaded 9mm pistol on a table in the apartment. At the time of his arrest, Izquierdo was on federal supervised release following a previous drug trafficking conviction in 2015. Because of his prior conviction, Izquierdo was not permitted to possess a firearm under federal law. On June 18, 2024, after a two-day trial, a federal jury found Izquierdo guilty of possession with intent to distribute 100 grams or more of para-fluorofentanyl, 40 grams or more of fentanyl, 100 grams or more of heroin, 28 grams or more of crack cocaine, and cocaine; maintaining a drug-involved premises; possession of a firearm by a felon; and possession of a firearm in furtherance of a drug trafficking crime. “Euddy Izquierdo was like a one-stop shop for narcotics,” said U.S. Attorney Romero. “Heroin, crack, fentanyl, powder cocaine — he pushed all of it into Kensington, profiting from other people’s pain and addiction. Getting illegal drugs off the street and illegal guns out of criminals’ hands makes our city immeasurably safer. My office and the DEA will continue to put these traffickers out of business and behind bars.” “Izquierdo received a severe sentence in federal prison for the distribution of dangerous drugs such as fentanyl, heroin, crack cocaine, and cocaine, which was further aggravated by the fact that he was on supervised release for a prior federal drug conviction at the time of his arrest,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Izquierdo was convicted at trial for distributing these drugs in Kensington, an area that has been disproportionately affected by the ravages of the opioid crisis. For that he will spend the next 20 years in a federal prison.” This case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.


title: Armed Folk Nation Gang Member Receives Eight Years in Prison

body_text: NEW BERN, N.C. – Joseph Lee, age 28, of Wilmington, was sentenced to 100 months in prison, followed by four years of supervised release, for conspiracy to distribute and possession with the intent to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine, distribution of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On August 13, 2024, Lee pled guilty to the charges. According to court documents and other information presented in court, on June 29, 2023, law enforcement made a controlled purchase using a confidential informant, of approximately an ounce of methamphetamine from Lee around the Market North Apartment in Wilmington. Lee was armed with a handgun at the time. Between June 29 and August 3, law enforcement purchased an additional 40 grams of methamphetamine from Lee. According to law enforcement, Lee is a validated gang member of Folk Nation. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Louise W. Flanagan. The ATF and the New Hanover County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:23-CR-00121-FL.


title: Sacramento Man Sentenced to 27 Months in Prison for Being a Felon in Possession of a Firearm

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — John Damian, 30, of Sacramento, was sentenced today by U.S. District Judge William B. Shubb to two years and three months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced. According to court documents, on Nov. 8, 2023, law enforcement officers attempted to serve a search warrant on an armed robbery suspect who was walking with Damian. Damian was on parole for multiple felonies and was subject to a search clause. Damian initially hesitated to comply with the law enforcement officers’ commands and attempted to go around the side of the robbery suspect’s vehicle. But as the officers approached him, he admitted to having a gun. A loaded Glock 27 semi-automatic firearm was found in his right sweatshirt pocket. The firearm contained a 13-round magazine loaded with .40 caliber ammunition, but no round in the chamber. In his left sweatshirt pocket, detectives located approximately 20.74 grams of cocaine. Damian has previously been convicted of multiple felonies including assault with force likely to produce great bodily injury, being a felon in possession of a firearm, assault on person with a semi-automatic firearm, and willful discharge of a firearm in a negligent manner. This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Police Department. Special Assistant U.S. Attorney Matthew De Moura 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 U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Stanislaus County Man Pleads Guilty to Transportation of a Minor with Intent to Engage in Criminal Sexual Activity

body_text: SACRAMENTO, Calif. — Cristian Ceja, 27, of Turlock, pleaded guilty today to transportation of a minor with intent to engage in criminal sexual activity, U.S. Attorney Phillip A. Talbert announced. According to court documents, between Aug. 27, 2023, and Jan. 3, 2024, Ceja transported a minor victim from the Eastern District of California to Idaho with the intent to engage in criminal sexual activity. Ceja met the minor victim when Ceja was working as a delivery driver and delivered food to the minor’s house. Ceja thereafter used the minor victim’s phone number to track her down on social media and communicate with her. Ceja began a lengthy sexual relationship with the minor victim who, at that time, was 15. During the course of their sexual relationship, Ceja would sneak into the minor victim’s bedroom to have sex with her without being detected by her parents. On at least two occasions, Ceja video recorded himself engaging in sexual contact with the minor victim. On Aug. 26, 2023, the minor victim’s mother contacted law enforcement because she found provocative photographs of the minor victim in her bedroom and was concerned her daughter was having a sexual relationship with an adult. In the early morning hours of Aug. 27, 2023, Ceja took the minor victim and fled to avoid detection and to continue the sexual relationship. While on the run, Ceja attempted to evade detection by placing stolen license plates on his vehicle, obliterating the VIN from his vehicle’s dashboard, spray painting the vehicle a different color, and adopting a false name. In order to avoid detection, Ceja discarded his cellphone while in flight and used a “burner” phone. Ceja first took the minor victim to Nevada and then to Idaho where they lived for several months in a small camper trailer without running water or heat. Law enforcement found the minor victim after she contacted a family member via social media. On Jan. 3, 2024, law enforcement officers arrived at the camper trailer, rescued the minor victim, and arrested Ceja. This case is the product of an investigation by the Stanislaus County Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case. Ceja is scheduled to be sentenced by U.S. District Judge John A. Mendez on Feb. 25, 2025. Ceja faces a mandatory statutory minimum of 10 years in prison and a maximum of life in prison, and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.


title: Former Pain Center Receptionist Sentenced for Conspiracy to Distribute Oxycodone and Methadone

body_text: LONDON, Ky. – A Chicago woman, Judith Harskey, 56, was sentenced Tuesday to two years in prison, by U.S. District Judge Claria Horn Boom, for conspiracy to distribute oxycodone and methadone. According to her plea agreement, beginning in 2019 through November 2022, Harskey conspired with others to distribute oxycodone and methadone, while working as a receptionist at the Midwest Physician Pain Center, a pain clinic in Chicago. During the conspiracy timeframe, numerous Perry County, Kentucky patients regularly traveled to the clinic; and without seeing a doctor, they paid Harskey a cash co-pay. She then filled out prescriptions that were previously signed by the absent owner/physician, for oxycodone, methadone, and other controlled substances. Harskey never possessed prescribing authority. When law enforcement ultimately executed a search warrant, on November 18, 2022, they recovered 541 blank, pre-signed prescriptions from Harskey’s office, including 30 from her purse. Under federal law, Harskey must serve 85 percent of her prison sentence. Upon her release from prison, he will be under the supervision of the U.S. Probation Office for 3 years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jim Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentence. The investigation was conducted by the DEA. Assistant U.S. Attorney Pearce Nesbitt is prosecuting the case on behalf of the United States. – END –


title: Philadelphia Man Admits to Drug Trafficking in Monongalia County

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Rodney Johnson, 47, of Philadelphia, Pennsylvania, has admitted to his role in an organization that was supplying large amounts of methamphetamine, fentanyl, and cocaine to North Central West Virginia. According to court documents, Johnson helped transport significant quantities of illicit drugs from Philadelphia to Morgantown, West Virginia. The organization utilized several properties in Monongalia County to store the drug supply. Johnson faces up to 20 years in federal prison for each of the seven counts to which he pled. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government. This case was investigated by the Mon Metro Drug Task Force, a HIDTA-funded initiative. The task force consists of the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Drug Enforcement Administration; the West Virginia State Police; the Monongalia County Sheriff’s Office; the Monongalia County Prosecuting Attorney’s Office; the Morgantown Police Department; the WVU Police Department; the Granville Police Department; and the Star City Police Department. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . U.S. Magistrate Michael John Aloi presided.


title: Ahoskie Man Sentenced to 8.5 Years for Violent Armed Robbery of Verizon Store

body_text: NEW BERN, N.C. – An Ahoskie man was sentenced to 102 months in prison for the armed robbery of a Verizon Store and the use of a firearm during and in relation to the robbery. On June 11, 2024, Marcus Lee Deloatch pled guilty to the charges. According to court documents and other information presented in court, Deloatch, age 40, forced his way into the store through the back door as the manager was closing for the night on December 21, 2023. Deloatch, who was a former employee of the store, pistol-whipped the manager, knocking her to the ground and then went to the front of the store where the register was located. He pointed his firearm at another employee while he grabbed $1,200 out of the register. During the encounter Deloatch complained that the store owed him his last paycheck for $200. Deloatch then fled out the rear of the store. Both victims recognized their former coworker and police were able to quickly find and arrest Deloatch, who commented that he had not planned on getting locked up until after Christmas. Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI and Ahoskie PD investigated the case. Assistant U.S. Attorney Phil Aubart prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:24-CR-11-FL.


title: Former Assistant Treasurer for Bridgestone Americas Arrested and Charged with a $15 Million Wire Fraud and Money Laundering Scheme

body_text: NASHVILLE – A criminal complaint unsealed today charges Sajju Khatiwada, 43, of Franklin, Tennessee, with wire fraud and money laundering for conducting a scheme in which he submitted approximately $15 million in bogus reimbursement invoices to his employer, Bridgestone Americas, Inc., for payments to himself, announced Acting United States Attorney for the Middle District of Tennessee Thomas J. Jaworski. According to the complaint, starting in 2016, Khatiwada was employed by Bridgestone in various positions, and he was working as Bridgestone’s Assistant Treasurer, Capital Planning and Funding, when he left the company in April 2024. Khatiwada was responsible for managing the relationships with banks that provided credit card processing services at each of the retail Bridgestone locations across the United States, acting as a liaison with bank representatives and initiating payments for bank fees and credit card processing fees. In July 2020, Khatiwada created a phony vendor called Paymt-Tech, LLC and began submitting bogus invoices to Bridgestone for purported bank fees owed to Paymt-Tech. Each month from August 2020 to April 2024, Khatiwada sent an email from his Bridgestone email account to initiate a payment to Paymt-Tech, LLC for the fictitious monthly bank fees. The email would contain a bogus PDF invoice and would request payment of the invoice. Bridgestone approved payment of these invoices, believing they were for true bank fees for a legitimate vendor, Chase Paymentech. In April 2024, Khatiwada left his employment at Bridgestone. Approximately two months later, Bridgestone Accounting Department personnel questioned the significant decrease in monthly bank fees being paid by Bridgestone. The subsequent investigation identified that between August 2020 and April 2024, Khatiwada had submitted 47 false invoices to Bridgestone for a total amount paid of $14,923,978.57, which the FBI traced back to Khatiwada. If convicted, Khatiwada faces up to 20 years in federal prison on the wire fraud count and 10 years in federal prison on the money laundering count, and a fine of up to twice the value of the money laundered. This case is being investigated by the Federal Bureau of Investigation, Nashville Field Office. Assistant U.S. Attorney Kathryn Booth is prosecuting the case. A federal complaint is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law. # # # # #


title: Paragon Systems Agrees to Pay $52M to Resolve False Claims Act Allegations Concerning Fraudulently Obtained Small Business Contracts and Kickbacks

body_text: 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. “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.” 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 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. “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.” “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 the 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 General Counsel Therese Meers of the SBA. “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. The settlement was the result of a coordinated effort among the Civil Division’s Fraud Section, U.S. Attorney’s Office for the District of Maryland and DHS-OIG. Senior Trial Counsel Alicia J. Bentley of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Sarah Marquardt for the District of Maryland handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability as to those claims. Paragon Settlement Athena - Silverman Settlement


title: St. Louis Man Sentenced to 9 Years in Prison for Trying to Buy 40 Pounds of Methamphetamine

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Matthew T. Schelp on Tuesday sentenced a St. Louis, Missouri man to nine years in prison for trying to buy 40 pounds of methamphetamine. On July 29, 2020, Richard Treis, now 51, and another man, Dennis Dewrock, arrived at a gas station in Pacific, Missouri with a black bag full of cash, expecting to purchase the meth. The deal had been arranged on a cell phone smuggled into prison. But Homeland Security Investigations in El Paso was aware of their plan. They learned a month earlier that Tarik “Morocco” Mazhar, an inmate in the Great Plains Correctional Institution in Hinton, Okla., wanted to purchase a large quantity of methamphetamine. An undercover HSI special agent got involved. Tries called the undercover agent and confirmed that the delivery would happen in Missouri, and both Treis and Mazhar, via the smuggled cell phone, sent pictures of the cash to the agent. Agents arrested both Treis and Dewrock after they swapped the cash for the drugs. Treis pleaded guilty conspiracy to possess with intent to distribute 50 grams or more of methamphetamine. As part of his plea, he has agreed to forfeit $128,000 that has been in the custody of Homeland Security Investigations. Mazhar, 43, pleaded guilty in December 2021 to the same methamphetamine conspiracy charge. He is serving a 13-year prison sentence. Dewrock, 55, also pleaded guilty to the conspiracy charge and was sentenced to five years in prison. Homeland Security Investigations investigated the case. Assistant U.S. Attorney Ricardo Dixon is prosecuting the case.


title: Utah Businessmen Indicted for Defrauding Investors and Lenders Millions of Dollars

body_text: SALT LAKE CITY, Utah – A federal grand jury in Salt Lake City returned a 16 count indictment charging two Utah businessmen with various financial crimes, including wire fraud and money laundering. The two business partners are accused of defrauding private investors and lenders in restaurant businesses such as Dirty Bird, Everbowl, and Crumbl Cookies. Aaron A. Wagner, 42, of Alpine, Utah, was initially charged by complaint on October 23, 2024, in the District of Utah and taken into custody. Wagner and his business partner and codefendant, Michael Mains, 46, of Alpine, Utah, were indicted November 6, 2024. According to court documents, from March 2021 and continuing to the present, Wagner and Mains devised a fraudulent scheme to trick lenders and investors to send millions of dollars to entities Wagner and Mains controlled through Wagscap Food Services, LLC. These entities included, Hello Sugar, Dirty Bird, Everbowl, Crumbl Cookies, Las Botellas, and others. Wagner would tell lenders and investors that their funds would be used for developing certain restaurants. Instead, Wagner used the funds for personal expenses or investments, or to prop up projects for other investor groups, which also included himself as an investor. Court documents allege Wagner would further trick investors that he was a successful businessman by showing off his own lavish lifestyle, including personal jets, exotic vehicles, and luxury vacations. Wagner failed to disclose a large part of his success was financed by investor funds he allegedly stole from the businesses they were meant to support. Essentially, Wagner used new investor money, obtained through fraud, to falsely appease previous investors. As a result of the scheme, Wagner brought in more than $40 million from investors. Wagner and Mains diverted millions for their own personal benefit to make purchases, including but not limited to a $4 million dollar second home for Wagner in Scottsdale, Arizona; an $8 million personal airplane; a $4.5 million commercial property to be developed into a nightclub; and $8 million real estate property in Missoula, Montana. Wagner and Mains are charged with wire fraud, conspiracy to commit wire fraud, transactional money laundering, and concealment money laundering. Their initial appearance on the indictment was November 8, 2024, before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. A jury trial is scheduled for February 3, 2025. United States Attorney Trina A. Higgins for the District of Utah made the announcement. The case is being investigated by the FBI Salt Lake City Field Office. Assistant United States Attorneys Carl D. LeSueur and Brent L. Andrus of the U.S. Attorney’s Office for the District of Utah are prosecuting the case. If you believe you are a victim of the alleged fraud mentioned in this press release or have information concerning the fraud in this press release, please email wagnermainsfraud@fbi.gov. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Defendant Convicted of Sex Trafficking and Interstate Prostitution on Long Island and in Other States

component: USAO - New York, Eastern

body_text: A federal jury in Central Islip today convicted Michail McKen of two counts of sex trafficking by force and two counts of interstate prostitution in connection with a sex trafficking business he operated in Suffolk and Nassau Counties, New York, Virginia, Arizona, Massachusetts and elsewhere. The verdict followed a six-day trial before United States District Judge Joan M. Azrack. When he is sentenced, McKen faces a mandatory minimum term of 15 years in prison and up to life in prison. Breon Peace, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Robert Waring, Acting Commissioner, Suffolk County Police Department (SCPD), announced the verdict. “The defendant stands convicted today of luring vulnerable women into his web of deceit and coercing them to have commercial sex with men all over the country, including on Long Island,” stated United States Attorney Peace. “He falsely promised his victims a better life, but instead controlled their lives with threats of violence and manipulation to enrich himself. Prosecuting sex traffickers like McKen is a priority of my Office and it is also my hope that today’s verdict brings some measure of consolation to survivors of this awful, exploitative crime.” Mr. Peace expressed his appreciation to the Arizona Desert Hawk Violent Crime Task Force, the FBI’s Baltimore and Richmond Field Offices and the Henrico County, Virginia, Police Division for their assistance on the case. FBI Assistant Director in Charge Dennehy stated, “For three years, Michail McKen established a national trafficking route to ensnare and force countless women into sexual slavery. False promises and deceit progressed into physical violence and degradation to ensure his victims remained captive. May today's conviction demonstrate the FBI's commitment to apprehending all individuals who implement perverted tactics to profit off another's body.” As proven at trial, between 2019 and 2022, McKen was a pimp who used violence and threats of violence to coerce multiple women to engage in commercial sex acts for his own profit. McKen often recruited sex workers through social media and then caused them to travel to Long Island, where McKen is originally from, to engage in commercial sex acts in hotels and other locations. As part of his sex trafficking business, McKen sent his victims all over the country to engage in commercial sex acts, including Virginia, Massachusetts, Pennsylvania, Arizona, Kentucky, Alabama and Oregon. McKen enticed the victims with false promises of a better life and a lucrative partnership based on sharing illicit proceeds. He also choked, beat and threatened the victims at gunpoint to control them. Some of McKen’s victims suffered from drug addiction and he would maintain leverage over those victims by forcing them to engage in commercial sex acts in exchange for a rationed supply of opioids that would prevent them from going through complete withdrawal. McKen forced his victims to abide by strict rules, such as forbidding them from talking to other pimps or even making eye contact with other men in public and wearing lingerie under their street clothes, so they were always prepared for sex work. McKen also took identification documents from victims, which he held as ransom to prevent them from acting independently of him. One victim who testified at trial had the word “Cavalli,” the defendant’s street name which he adopted from the name of a famous fashion designer, tattooed across her ribcage. The government’s case is being handled by the Criminal Section of the Office’s Long Island Division. Assistant United States Attorneys Megan E. Farrell and Samantha Alessi are in charge of the prosecution with the assistance of Paralegal Specialist Adam Bernard, Legal Assistant Hannah Valoy, and Victim Witness Specialist Stephanie Marroquin. The Defendant : MICHAIL MCKEN (also known as “Kells” and “Cavalli”) Age: 36 Baldwin, New York and Phoenix, Arizona E.D.N.Y. Docket No. 23-CR-377 (JMA)