title: USAO Civil Division Ends 2024 with Notable Achievements

component: USAO - Ohio, Northern

body_text: CLEVELAND – The Civil Division of the U.S. Attorney’s Office (USAO) for the Northern District of Ohio is responsible for litigating civil cases that involve the United States and its agencies throughout the 40 northern counties in the state of Ohio. The Assistant U.S. Attorneys in this division litigate a diverse docket of both affirmative and defensive court cases on behalf of the United States and its various agencies. Examples include cases that involve federal laws concerning the environment, disability and anti-discrimination, voting rights, fair housing, fraud recovery on behalf of Medicare and Medicaid, and more. The division also recovers money owed to the government or victims of crimes, and collects payment of criminal restitution, fines, and penalties. Additional areas of responsibility include protecting the United States’ interests in medical malpractice actions, bankruptcies, foreclosures, and social security matters. “Our civil division attorneys perform a broad array of work that protects the public fisc and has far-reaching impacts, from affirmatively protecting individual civil rights to defending the environment to recovering taxpayer money diverted by individuals and corporations through fraudulent conduct or deceptive health care practices,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “The division’s achievements this year are significant, and we will continue our efforts, next year and beyond, to hold accountable those who break federal laws and cheat the U.S. taxpayer, and to otherwise represent the United States’ interests in civil litigation.” Some of the division’s notable achievements in 2024 include the following resolutions: Investigation of the Cleveland Clinic Foundation - The Cleveland Clinic Foundation (CCF) agreed to pay $7,600,000 to resolve allegations that it violated the False Claims Act when it submitted federal grant applications and progress reports to the National Institutes of Health that did not disclose that a key employee involved in administering the grants had financial research support from other sources. U.S. ex rel. White, et al. v. Rite Aid Corp., et al. - Rite Aid Corporation and 10 subsidiaries and affiliates agreed to settle the government’s allegations of filling unnecessary prescriptions under the False Claims Act and Controlled Substances Act, asserted in United States ex rel. White et al. v. Rite Aid Corp., et al . Under the settlement, the government will be paid $7.5 million. U.S. ex rel. Rzeszutko v. Elixir Insurance Co., et al. – Three Rite-Aid subsidiaries, Elixir Insurance Company, RX Options LLC, and RX Solutions LLC, agreed to a settlement that resolved allegations that they violated the False Claims Act when they did not accurately report drug rebates to the Medicare program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million. U.S v. Gerber, et al. – A federal court prohibited Ohio physician Gregory Gerber, M.D., from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act and the False Claims Act. Allegations against Gerber include writing prescriptions for opioids and other controlled substances without a legitimate medical basis, causing a patient’s death due to a fentanyl patch overdose, and receiving kickback payments from a drug manufacturer when prescribing certain drugs that contain fentanyl. U.S. v. Norfolk Southern Railway Co., et al. – The Norfolk Southern Railway Company agreed to a settlement valued at over $363 million to hold it accountable, address, and pay for the damage caused by the Feb. 3, 2023, train derailment in East Palestine, Ohio. The USAO worked in conjunction with the Environmental Enforcement Section of the Justice Department’s Environment and Natural Resources Division to settle the case. The settlement included provisions requiring Norfolk Southern to fund a community health program that will monitor and treat individual medical needs of residents and first responders stemming from the disaster. It also required Norfolk Southern to fund extensive environmental site cleanup to restore the region’s waterways and habitats; to implement expanded rail safety and emergency response measures and measures to improve and protect waterways and wetlands; and to monitor drinking water to ensure it is safe. Additionally, the USAO’s Civil Division conducted numerous outreach efforts to connect with the community. In 2024, these included the following events: Voting with a Disability – In February, U.S. Attorney Rebecca Lutzko took part in an online forum to highlight concerns and address issues that voters with disabilities encounter. Advocacy groups and others from throughout the state listened to the presentation and identified areas of concern. This event was held in partnership with the USAO for the Southern District of Ohio. Legal Aid Society of Cleveland – In April, lawyers and support staff from the USAO volunteered their time and talents at a legal aid clinic. The event was held at the Cleveland Public Library-Memorial Nottingham Branch. Clinic volunteers provided advice and assistance to people with limited financial resources and addressed a range of civil, legal problems, such as landlord and tenant issues, employment, family law, and consumer law. Summer Camp ADA Compliance – In May the USAO corresponded with numerous summer camps in the district to remind them of their obligations under the Americans with Disabilities Act (ADA). In particular, summer camps must make reasonable modifications to enable campers with disabilities to participate fully in all camp programs and activities. Toledo Branch Office – Assistant U.S. Attorney Bill Rojas addressed local bar associations, providing current Department of Justice guidance for evaluating requests by debtors to discharge federal student loans. In May, he addressed the Bankruptcy Court Committee of the Toledo Bar Association. In December, AUSA Rojas participated on a panel for the Cleveland Metropolitan Bar Association’s William J. O’Neill and Pat E. Morgenstern-Clarren Bankruptcy Institute. The Department of Justice issued its student loan discharge guidance, in part, to set transparent discharge criteria and ease the burden on bankruptcy debtors in pursuing adversary proceedings. To report crimes or file a complaint, please visit https://www.justice.gov/action-center/report-crime-or-submit-complaint#complaint.


title: Postal Employee Accused of Stealing Checks from the Mail

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – A former U.S. Postal Service supervisor appeared in court Thursday to answer an indictment accusing her of stealing checks from the mail. Benita D. Randle, 42, was indicted December 11 in U.S. District Court in St. Louis on one count of theft of mail by a U.S. Postal Service employee. She pleaded not guilty Thursday. The indictment says that on Oct. 31, 2023, Randle stole about 90 checks from mail that had been entrusted to the Postal Service for delivery. Randle was a supervisor at the St. Louis Processing and Distribution Center in St. Louis at the time, the indictment says. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The U.S. Postal Inspection Service and the U.S. Postal Service Office of Inspector General investigated the case. Assistant U.S. Attorney Jonathan Clow is prosecuting the case.


title: Southern California-Based Clinics, Laboratory and Their Owners to Pay $10M for False Claims Arising from Kickbacks and Self-Referrals

component: Civil Division

body_text: WASHINGTON – Mohammad Rasekhi M.D., Sheila Busheri, Southern California Medical Center (SCMC) and R & B Medical Group Inc., doing business as Universal Diagnostic Laboratories (UDL) (collectively, the defendants), have agreed to pay $10 million to resolve allegations that they submitted false claims to Medicare and California’s Medicaid program, known as Medi-Cal, arising from allegations of paying kickbacks and making self-referrals. The defendants are all based in southern California. Rasekhi is the founder and chief medical officer of SCMC and the co-owner of UDL. Busheri is the chief executive officer of SCMC and the co-owner and chief executive officer of UDL. SCMC is a federally qualified health center that operates six clinics in southern California. UDL is a reference and esoteric laboratory in Southern California. The United States alleged that the defendants knowingly submitted or caused the submission of false claims to Medicare and Medi-Cal by (a) paying kickbacks to marketers to refer Medicare and Medi-Cal beneficiaries to SCMC clinics in violation of the Anti-Kickback Statute (AKS), (b) paying kickbacks to third-party clinics in the form of above-market rent payments, complimentary and discounted services to clinic staff and write-offs of balances owed by patients and clinic staff in exchange for referring Medicare and Medi-Cal beneficiaries to UDL for laboratory tests in violation of the AKS and (c) referring Medicare and Medi-Cal beneficiaries from SCMC clinics to UDL for laboratory tests in violation of the Stark Act prohibition against self-referrals. The AKS prohibits parties who participate in federal health care programs from knowingly and willfully offering or paying remuneration in return for referring an individual to, or arranging for, the furnishing of any item or services for which payment is made by, a federal health care program. Likewise, the Stark Act, which is also known as the Physician Self-Referral Law, prohibits physicians from referring patients to receive “designated health services” payable by Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies. “Designated health services” include “clinical laboratory services.” Compliance with the AKS and Stark Act are conditions of payment under federal healthcare programs. “Kickback and self-referral schemes risk impairing the judgment of healthcare providers and diminish the reliability of the care that they render,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This resolution upholds the department’s commitment to ensuring that Medicare and Medicaid beneficiaries receive care that is untainted by the providers’ financial interest.” “Providers who exploit the Medicare, Medicaid and TRICARE programs for their personal financial gain will be held accountable under the False Claims Act,” said U.S. Attorney Martin Estrada for the Central District of California. “This significant resolution evidences our steadfast commitment to ensuring the integrity of federally funded health care programs.” “There is an expectation that providers who receive Medicare and Medicaid program funds obey the law and operate with integrity,” said Acting Special Agent in Charge Eric Larson of the Department of Health & Human Services Office of the Inspector General (HHS-OIG). “This settlement is a reminder that HHS-OIG is committed to working with our law enforcement partners on holding those providers accountable who exploit taxpayer-funded healthcare programs for their own personal gain.” “The announced settlement brings closure to the defendants’ schemes to defraud federal healthcare programs, including the Department of Defense’s TRICARE program,” said Special Agent in Charge Bryan D. Denny of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Western Field Office. “This case underscores DCIS’ commitment to working with its partners to hold accountable those who defraud TRICARE, particularly in instances wherein the alleged illicit activities jeopardize patient care.” Medicaid is funded jointly by the states and the federal government. The State of California paid a portion of the Medicaid claims at issue and will receive approximately $4 million from the settlement. The settlement announced today resolves, in part, claims brought under the qui tam or whistleblower provisions of the False Claims Act by Ferzad Abdi, Julia Butler, Jameese Smit and Karla Solis, who were former employees or managers of SCMC and UDL. The qui tam provisions permit a private party called a “relator” to file an action on behalf of the United States and receive a portion of any recovery. The relators’ qui tam case is captioned United States ex rel. Abdi v. Rasekhi , No. 18-cv-03966 (CDCA). Concurrent with this announcement, the relators reached a separate settlement with the defendants for $5 million to resolve additional allegations in their qui tam complaint. The United States and the State of California declined to intervene as to those allegations and was not a party to the separate agreement. The relators’ share of the two settlements has not yet been determined. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, U.S. Attorney’s Office for the Central District of California and California Department of Justice, with assistance from HHS-OIG. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorney Samson Asiyanbi of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jack Ross for the Central District of California handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Court Authorizes Service of John Doe Summons for IRS to Seek Identities of U.S. Taxpayers Who Participated in the “Gig Economy” Via a Digital Platform

component: Tax Division

body_text: A federal court in California entered an order on Monday authorizing the IRS to serve a John Doe summons on JustAnswer LLC, seeking information about U.S. taxpayers who were paid for answering questions as “experts” during the years 2017-2020. The IRS is seeking the records of individuals who were paid by JustAnswer, which operates a digital platform through which members of the public can pay to have questions answered by professionals such as doctors, lawyers, veterinarians, engineers and tax professionals. JustAnswer is headquartered in Covina, California. The “gig economy” is where people earn income providing on-demand work, services or goods through a digital platform like a website or an app. Well-known examples of such platforms include Airbnb, Uber, Lyft, DoorDash, Etsy, Handy and TaskRabbit. The gig economy is a recent phenomenon associated with the increased prevalence of smart phones and their applications, facilitating the development of online marketplaces and platforms in which individuals can connect to obtain and offer goods and services. Digital platforms commonly serve as intermediaries, connecting sellers or service providers with customers while also processing payments. In the court’s order, U.S. District Judge Dolly M. Gee for the Central District of California found that there is a reasonable basis for believing that U.S. taxpayers who were paid by JustAnswer to answer questions as experts may have failed to comply with federal tax laws. The court’s order grants the IRS permission to serve what is known as a John Doe summons on JustAnswer. There is no indication that JustAnswer has engaged in any wrongdoing in connection with its digital platform business. Rather, the IRS uses John Doe summonses to obtain information about individuals whose identities are unknown and who possibly violated internal revenue laws, such as by not reporting income they received. This John Doe summons directs JustAnswer to produce records identifying U.S. taxpayers who have used its platform to earn income, along with other documents relating to their work. “The gig economy has grown in recent years and with it, the concern for tax compliance issues has increased,” said Deputy Assistant Attorney General David Hubbert of the Justice Department’s Tax Division. “This John Doe summons demonstrates that working with the IRS we will use all the tools available to us to ensure that no matter how U.S. taxpayers earn income, they are properly reporting it and paying their taxes. Those who choose to be on the forefront of the gig economy must be aware of, and abide by, all their tax obligations.” “Like their fellow Americans who earn income through traditional means, U.S. taxpayers who earn income from digital and other platforms that comprise the gig economy need to pay their fair share of taxes,” said IRS Commissioner Danny Werfel. “The world is getting smaller for tax cheats, and we will work collaboratively with our partners to vigorously enforce the nation’s tax laws.” The IRS Small Business Self-Employed Division and IRS Office of Fraud Enforcement assisted with the investigation that led to this case. The Justice Department and the IRS are committed to ensuring that taxpayers abide by all federal tax laws. Federal law requires U.S. individual taxpayers to pay taxes on all income earned worldwide. Individuals must report all income earned from the gig economy on a tax return. This includes income from part-time, temporary or “side work”; income not reported on an information return form (like a Form W-2 or 1099) or other income statement; or income paid in cash, property, goods or digital assets. The Tax Division reminds gig economy workers that the IRS has information and tips for how they can comply with their tax obligations. The IRS also has guidance for digital platform providers about their tax reporting and filing requirements. John Doe Ex Parte Petition Order - JA.pdf


title: Southern California-Based Clinics, Laboratory, and Owners to Pay $15 Million to Settle Allegations of False Claims Arising from Kickbacks and Self-Referrals

component: USAO - California, Central

body_text: SETTLEMENT AGREEMENT LOS ANGELES – A former Van Nuys physician, a medical center he founded, a laboratory he co-owned, and an executive at these entities have agreed to pay $15 million to settle allegations that they submitted false claims to Medicare and Medi-Cal from the payment of illegal kickbacks and self-referring patients, the Justice Department announced today. Mohammad Rasekhi, who surrendered his medical license in December 2024; Sheila Busheri; Southern California Medical Center (SCMC); and R & B Medical Group, Inc. d/b/a Universal Diagnostic Laboratories (UDL) agreed to pay the amount. Rasekhi is the founder and chief medical officer of SCMC and the co-owner of UDL. Busheri is the chief executive officer of SCMC and the co-owner and chief executive officer of UDL. SCMC is a federally qualified health center that operates six clinics in Southern California. UDL is a reference and esoteric laboratory in Southern California. Medicaid is funded jointly by the states and the federal government. The State of California paid a portion of the Medicaid claims at issue and will receive approximately $7 million from the settlement. The United States alleged that the defendants knowingly submitted or caused the submission of false claims to Medicare and Medi-Cal by: paying kickbacks to marketers to refer Medicare and Medi-Cal beneficiaries to SCMC clinics in violation of the Anti-Kickback Statute (AKS): paying kickbacks to third-party clinics in the form of above-market rent payments, complimentary and discounted services to clinic staff, and write-offs of balances owed by patients and clinic staff in exchange for referring Medicare and Medi-Cal beneficiaries to UDL for laboratory tests in violation of the AKS; and referring Medicare and Medi-Cal beneficiaries from SCMC clinics to UDL for laboratory tests in violation of the Stark Act’s prohibition against self-referrals. The AKS prohibits parties who participate in federal health care programs from knowingly and willfully offering or paying remuneration in return for referring an individual to, or arranging for the furnishing of any item or services for which payment is made by, a federal health care program. Likewise, the Stark Act, which is also known as the Physician Self-Referral Law, prohibits physicians from referring patients to receive “designated health services” payable by Medicare or Medicaid from entities with which the physician or an immediate family member has a financial relationship, unless an exception applies. “Providers who exploit the Medicare, Medicaid, and TRICARE programs for their personal financial gain will be held accountable under the False Claims Act,” said U.S. Attorney Martin Estrada. “This significant resolution evidences our steadfast commitment to ensuring the integrity of federally funded health care programs.” “Kickback and self-referral schemes risk impairing the judgment of healthcare providers and diminish the reliability of the care that they render,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This resolution upholds the Department’s abiding view that Medicare and Medicaid beneficiaries deserve care that is free from the taint of referrals that were driven by the providers’ financial interest.” “There is an expectation that providers who receive Medicare and Medicaid program funds obey the law and operate with integrity,” said Acting Special Agent in Charge Eric Larson of the U.S. Department of Health & Human Services Office of the Inspector General (HHS-OIG). “This settlement is a reminder that HHS-OIG is committed to working with our law enforcement partners on holding those providers accountable who exploit taxpayer-funded healthcare programs for their own personal gain.” “The announced settlement brings closure to the defendants’ schemes to defraud federal healthcare programs, including the Department of Defense’s TRICARE program,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”), Western Field Office. “This case underscores DCIS’s commitment to working with its partners to hold accountable those who defraud TRICARE, particularly in instances wherein the alleged illicit activities jeopardize patient care.” The settlement announced today resolves claims brought under the qui tam, or “whistleblower,” provisions of the False Claims Act in a joint filing by Ferzad Abdi, Julia Butler, Jameese Smith, and Karla Solis, who were former employees or managers of SCMC and UDL. The qui tam provisions permit a private party called a “relator” to file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Abdi v. Rasekhi , No. 18-cv-03966 (C.D. Cal.). The settlement announced today includes a $10 million payment for the portion of the case handled by the United States and a $5 million payment in a separate settlement between the relators and the defendants. The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and the California Department of Justice. The U.S. Department of Health and Human Services, Office of Inspector General; the U.S. Department of Defense, Office of Inspector General; and DCIS provided assistance. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). Assistant United States Attorney Jack D. Ross of the Civil Fraud Section and Justice Department Trial Attorney Samson Asiyanbi of the Fraud Section handled this matter for the United States. The claims resolved by the settlement are allegations only and there has been no determination of liability.


title: Former Utah Movie Producer Sentenced for Tax Evasion and Forcibly Retaking Property Seized Under Court Order

body_text: A Utah man was sentenced on Monday to an aggregate of six years in prison for tax evasion and forcibly retaking a house and land that had been seized under court order to pay his outstanding tax debt. According to court documents and evidence presented at trial, Paul Kenneth Cromar, formerly of Cedar Hills, Utah, owned a home in Cedar Hills and operated Blue Moon Productions LLC, a freelance film and media production company. From 1999 through 2005, Cromar did not file any federal income tax returns or pay any tax. In 2005, the IRS conducted an audit and assessed him with $703,266.96 in taxes, interest and penalties. For more than a decade thereafter, Cromar did not make any payments towards his outstanding debt and took steps to obstruct the IRS’s ability to collect his delinquent taxes. In 2019, due to this course of conduct, a federal judge ordered that Cromar’s home be sold at auction to satisfy his tax obligations, which by then had ballooned to over $1 million. Cromar then attempted to stop the sale by filing false documents on the property’s title and with the IRS, including a false promissory note. He also attempted to intimidate potential purchasers of the home and harassed IRS personnel by filing frivolous lawsuits against them personally. Shortly before the sale closed, Cromar broke into the home and attempted to reclaim it. With the help of others, he occupied the home unlawfully for five months, fortifying it with firearms, sandbags and wooden boards tactically placed throughout the house. In addition to his prison sentence, U.S. District Judge Howard C. Nielson Jr. for the District of Utah ordered Cromar to serve three years of supervised release and to pay approximately $723,028.65 in restitution to the United States as a condition of his supervised release. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Trina A. Higgins for the District of Utah and Special Agent in Charge Carissa Messick of IRS Criminal Investigation’s Phoenix Field Office made the announcement. IRS Criminal Investigation’s Phoenix Field Office and the Treasury Inspector General for Tax Administration (TIGTA) jointly investigated the case. The FBI assisted in locating and apprehending Cromar, who had been a fugitive from justice in a related Utah state court criminal matter since August 2022. Trial Attorneys Meredith Havekost and Patrick Burns of the Tax Division and Assistant U.S. Attorney Mark Woolf for the District of Utah prosecuted the case. Trial Attorney Peter Anthony of the Tax Division assisted with the investigation.


title: SCDC Inmate Among 5 Indicted for Conspiracy to Distribute Meth, Fentanyl

component: USAO - South Carolina

body_text: FLORENCE, S.C. — A federal grand jury in Florence returned a four-count indictment against Jawan Rayel White, 37; Derrell Sherald, 38; Amon Rasheem Rutledge, 34; Alexis Nicole Loscar, 30; and Christian Vargas, 21, for conspiracy to distribute and distribution of methamphetamine and fentanyl. The indictment alleges that White, while incarcerated in the South Carolina Department of Corrections on a 25-year sentence for drug distribution, conspired with his co-defendants to distribute large quantities of methamphetamine and fentanyl into South Carolina and surrounding states. White faces a maximum penalty of life imprisonment and is currently incarcerated in SCDC on an unrelated state conviction. Rutledge faces a maximum sentence of life imprisonment and is currently detained pending an initial appearance and detention hearing before the Honorable Kaymani D. West, United States Magistrate Judge. Sherald, Loscar, and Vargas each face penalties of 20 years in prison and are currently detained pending an initial appearance and detention hearing before the United States District Court. 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. The case was investigated by Drug Enforcement Administration, United States Postal Inspection Service, and the South Carolina Department of Corrections Office of Inspector General. Assistant United States Attorney Matthew Ellis is prosecuting the case. U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty. ###


title: Former general manager of Anchorage business charged with wire fraud, tax evasion

component: USAO - Alaska

body_text: ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment last week charging an Alabama man with wire fraud and tax evasion after he allegedly defrauded a local Anchorage business while serving as their general manager. According to court documents, in 2008, James Wohlers, 56, of Deatsville, Alabama, was hired by GBR Equipment/Oilfield Services (GBR), an Anchorage based business that provides oilfield services on the North Slope and elsewhere, as their human resource manager. In 2009, Wohlers became their general manager, overseeing vendor interface, employee hiring, payroll and accounting. Part of his responsibilities included coordinating wire transfers from GBR’s bank account to outside accounts. In 2019, an audit was completed on the company’s finances and bank records after employees determined the company was earning sufficient revenue but was unable to pay vendors and employees. The audit revealed that from at least 2013 to 2019, Wohlers allegedly executed wire transfers from the GBR account that did not benefit the company, and allegedly used GBR’s corporate credit cards for personal expenses, like paying personal credit card bills. The indictment alleges that in 2015, Wohlers formed a partnership named BGI Industrial Services (BGI), which was registered with the Alabama Secretary of State. In 2017, GBR performed services for two companies. Wohlers allegedly sent both companies invoices from BGI for $25,000 and $2,500 respectively, and both companies paid the invoices. The money was deposited into BGI’s bank account. Wohlers also allegedly used GBR credit cards to pay for business expenses related to BGI and used employees paid by GBR to complete work on behalf of BGI. In late 2015, Wohlers announced GBR employee pay cuts of 5 to 10 percent, along with other restrictive measures to address GBR’s poor financial condition. A few months later, Wohlers announced additional GBR employee pay cuts of 5 to 15 percent. Within two weeks of making his second announcement, Wohlers allegedly used over $43,000 of GBR’s funds to pay for airfare and other expenses related to a personal trip to China. Wohlers was terminated by GBR in August 2019, and the company sent the defendant a demand letter stating he owed GBR $1.5 million. After being terminated, Wohlers allegedly deleted roughly 10,000 emails from GBR’s servers. Wohlers is charged with one count of wire fraud and three counts of tax evasion. The defendant is scheduled for his initial court appearance on Jan. 10 before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, he faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney S. Lane Tucker for the District of Alaska, Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office and Special Agent in Charge Adam Jobes of the IRS Criminal Investigation, Seattle Field Office made the announcement. The FBI Anchorage Field Office and the IRS Criminal Investigation Seattle Field Office are investigating the case. Assistant U.S. Attorney Tom Bradley is prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Twenty-Nine-Year-Old Felon who Illegally Possessed Multiple Guns Sentenced to Federal Prison

component: USAO - Iowa, Northern

body_text: A convicted felon who possessed two firearms was sentenced December 20, 2024, to two years in federal prison. Devonte Oye Robertson, age 29, of Cedar Rapids, Iowa, received the prison term after an August 14, 2024, guilty plea to one count of possession of firearms by a felon. At the plea hearing, Robertson admitted that on January 19, 2024, he possessed Sig Sauer and Smith & Wesson pistols after having been convicted of two felonies. Robertson was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Robertson was sentenced to 24 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. 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. Robertson is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Special Assistant United States Attorney Michael S.A. Hudson and it was investigated by the Cedar Rapids Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Investigations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-cr-00054. Follow us on X @USAO_NDIA.


title: Former Federal Bureau of Prisons employees convicted of charges arising from their failure to obtain medical care for an inmate who later died from his injuries

component: Civil Rights - Criminal Section

body_text: RICHMOND, Va. – A Federal Bureau of Prisons (FBOP) lieutenant was found guilty on Dec. 21 of violating the civil rights of an inmate by showing deliberate indifference to the inmate’s serious medical needs. The lieutenant and an FBOP nurse were also found guilty of making false statements to a federal agent with the intent to obstruct the investigation into the inmate’s death. According to court documents and evidence introduced at trial, Lieutenant Shronda Covington, 49, and Registered Nurse Tonya Farley, 53, both of Chesterfield, were on duty and working in their official capacities at the Federal Correctional Institution at Petersburg on Jan. 9, 2021. Covington willfully failed to ensure that the inmate, a 47-year-old man identified as W.W., was provided with necessary medical care, even though she knew that W.W. had a serious medical need, and Covington and Farley each made false statements to federal agents during the investigation into the inmate’s death. Another FBOP official, Lieutenant Michael Anderson, previously pleaded guilty for his role in the inmate’s death and was sentenced to three years in custody. “These defendants showed an appalling indifference and disregard for W.W.’s life,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those who fail in their duty to provide basic care and humane treatment to those in their custody.” “Federal inmates are human beings in a uniquely vulnerable environment,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Their care is the responsibility of corrections staff entrusted to uphold the highest standards of professional conduct. The failure to honor that trust in this case cost a man his life.” “Covington’s inexcusable apathy to the medical needs of W.W. over the course of two days caused his unnecessary death,” said Special Agent in Charge Tim Edmiston of the Justice Department’s Office of the Inspector General Mid-Atlantic Region. “Covington and Farley also decided to lie about their involvement in order to escape accountability. The Justice Department Office of the Inspector General will continue to investigate civil rights violations at the hands of Federal Bureau of Prisons employees.” Evidence presented at trial established that, in the early morning hours of Jan. 9, 2021, W.W.’s cellmate reported to facility staff that W.W. was exhibiting bizarre and unprecedented behavior, including that he was suddenly incontinent and unable to talk and walk normally. Over the course of two days, FBOP officials knew of but disregarded W.W.’s symptoms of a sudden neurological crisis, including his sudden incontinence, incomprehension, inability to talk, and struggles to stand or walk without falling. Without medical attention to address his sudden and serious medical need, W.W. fell into walls and other objects numerous times, causing significant bruising and bleeding to his head and body. Although FBOP policy requires staff to provide necessary medical care to inmates, Covington and Anderson ignored the policy and their training and failed to respond to repeated calls for help from inmates and line staff. W.W. finally fell head-first into a wall and then to the floor in an observation cell, where — despite inmate-observers’ continued calls for help — he lay for an hour and 40 minutes before officers rendered aid. An autopsy concluded that W.W. died of blunt force trauma to his head and that the lack of medical assistance he received during his series of falls and after his last fall contributed to his death. Covington is scheduled to be sentenced on May 7, 2025, and Farley is scheduled to be sentenced on May 8, 2025. Covington faces a maximum penalty of 15 years in prison, and Farley faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. The Justice Department’s Office of the Inspector General investigated the case. Assistant U.S. Attorney Thomas A. Garnett for the Eastern District of Virginia and Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Katherine McCallister of the Civil Rights Division’s Criminal Section are prosecuting the case and were previously assisted by then-Trial Attorney Matthew Tannenbaum of the Justice Department’s Civil Rights Division. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-68.


title: Inform Diagnostics Agrees to Pay $2.9 Million to Resolve Potential False Claims Act Liability for Self-Reported Violations

component: USAO - Massachusetts

body_text: BOSTON – Inform Diagnostics, Inc. (Inform) has agreed to pay $2.9 million to resolve potential False Claims Act liability arising out of conduct that potentially violated the Anti-Kickback Statute (AKS), resulting in the submission of false claims for payment to Medicare and other federal health care programs. Inform voluntarily self-disclosed the conduct to the U.S. Attorney’s Office earlier this year. Inform is a clinical laboratory with headquarters in Irving, Texas that provides anatomic pathology services to physician practices throughout the United States. According to the settlement , Inform admitted that, from 2018 through 2023, Inform had purchased test arrangements (PTAs) with a small number of its physician practice customers. Reimbursement for anatomic pathology laboratory services involves two components: a “technical” component, involving the physical preparation of the specimen for pathologist review, and a “professional” component, involving analysis of the slide by the pathologist. Under Inform’s PTAs, the customer performed one component while referring the other component to Inform to perform and Inform billed commercial insurers for both components, reimbursing the customer at a set price. Customers with PTAs also referred other services to Inform, including services that Inform billed to Medicare and federal health care programs. The United States contends that Inform’s PTAs resulted in the submission of false claims for payment to federal health care programs because those claims were tainted by violations of the AKS. The settlement credits Inform for its self-disclosure. Inform self-reported the conduct, which was unknown to the United States at the time of the disclosure in March 2024, including the results of an internal investigation, the nature of the potentially problematic relationships, and the potential financial impact to the government. Inform has terminated all of its PTAs. “By self-disclosing this conduct to the federal government, Inform saved itself hundreds of thousands of dollars. That benefit is available to any company that takes the responsible step of reporting false claims to the government. This office is committed to making sure that companies that come forward with information regarding potential violations of the law before the government learns of them get real benefits from such a decision,” said United States Attorney Joshua S. Levy. “While we do not condone unlawful conduct, we commend companies that save time and resources on both sides by disclosing what they know and allowing the government to determine whether to proceed. That is what Inform did here, and today’s resolution both recognizes Inform’s laudable decision to self-disclose and should serve as an incentive for other companies to do the same. Self-disclosures will be resolved fairly and expeditiously.” United States Attorney Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Patrick Hegarty, Special Agent in Charge, Defense Criminal Investigation Service, Northeast Field Office made the announcement. Assistant U.S. Attorneys Abraham R. George, Chief of the Civil Division and Alexandra Brazier of the Affirmative Civil Enforcement Unit handled the matter.


title: Food City Agrees to Pay over $8M to Settle False Claims Act Allegations Related to Opioid Dispensing

body_text: K-VA-T Food Stores Inc. doing business as Food City (Food City), a regional grocery store chain headquartered in Abingdon, Virginia, has agreed to settle the government’s allegations under the False Claims Act (FCA) related to its dispensing of opioids and other controlled substances. Under the settlement , Food City will pay the United States $8,488,378. Food City will pay an additional $78,621 to the states of Virginia and Kentucky for claims paid to Food City by state Medicaid programs. “Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable pharmacies that have abdicated this responsibility and thereby contributed to the nation’s opioids crisis.” “When pharmacies fill prescriptions for opioids and other powerful controlled substances without regard to their legitimacy or medical necessity it significantly contributes to the opioid epidemic, causing great harm to our citizens and communities,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “This settlement agreement demonstrates that the United States Attorney’s Office, and federal, state and local law enforcement partners, are using all tools available to address the opioid crisis.” “The Medicare and Medicaid programs deliver vital prescription drug services to beneficiaries,” said Special Agent in Charge Kelly J. Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This case underscores HHS-OIG’s dedication to addressing the nation’s opioid overdose crisis and ensuring that only legitimate, medically necessary prescriptions are dispensed.” “The opioid epidemic continues to significantly impact the nation, devastating families across our country,” said Special Agent in Charge Derek M. Holt of the Office of Personnel Management Office of the Inspector General. “We applaud our law enforcement partners and colleagues at the Justice Department for their work to hold pharmacies accountable for actions that could exacerbate the epidemic and endanger the health and safety of patients served by federal health care programs.” “This settlement demonstrates our commitment to holding pharmacies that knowingly dispense medically unnecessary opioids and other controlled substances accountable for their actions,” said Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS thanks the U.S. Attorney’s Office and our investigative partners for their steadfast dedication to fighting the opioid epidemic plaguing our country and helping us protect servicemembers and their families.” “TRICARE is committed to providing safe, effective, and appropriate care to our warfighters, retirees, veterans and their families,” said Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division. “Dispensing medically unnecessary opioids and other controlled substances to our beneficiaries puts them at great risk and will not be tolerated. We will continue to hold pharmacies accountable for abiding by these standards to ensure we are delivering the very best health benefit to those who serve, or have served, our nation.” The United States alleged that, from Jan. 1, 2011, through Dec. 31, 2018, 24 Food City store pharmacies dispensed opioids and other controlled substances that were medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were not dispensed pursuant to valid prescriptions. The United States alleges that, as a result, Food City knowingly submitted, or caused to be submitted, false claims to federal healthcare programs. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by K-VA-T Litigation Partnership, LLP. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. K-VA-T Litigation Partnership, LLP v. K-VA-T Food Stores, Inc. d/b/a Food City , Case No. 3:20-cv-436 (EDTN). Relator K-VA-T Litigation Partnership, LLP will receive $1,527,908 of the proceeds from the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for Eastern District of Tennessee, with assistance from HHS-OIG and DCIS. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorney Elizabeth J. Kappakas of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Alan G. McGonigal and Alexa O. Hadley for the Eastern District of Tennessee handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Brazilian Man Charged With Making Extortionate Threats To Publicize Stolen Data Obtained By Unlawful Computer Intrusion

component: USAO - New Jersey

body_text: Newark, N.J. – A citizen and resident of Brazil was charged with making extortionate threats to publicize data stolen from the Brazilian subsidiary of a New Jersey company, U.S. Attorney Philip R. Sellinger announced. Junior Barros De Oliveira, 29, of Curitiba, Brazil was charged with four counts of extortionate threats involving information obtained from protected computers in violation of Title 18, United States Code, Section 1030(a)(7)(B) and four counts of threatening communications in violation of Title 18, United States Code, Section 875(d) in an indictment unsealed today in Newark federal court. According to the Indictment: In March 2020, De Oliveira gained unauthorized access and exceeded authorized access to the computer systems of Victim 1-Brazil, the Brazilian subsidiary of a New Jersey company. Exploiting this access, De Oliveira obtained confidential customer information relating to approximately 300,000 customers of Victim 1-Brazil. In September 2020, De Oliveira began contacting U.S. representatives of Victim 1, including its CEO, in an attempt to extort money from Victim 1-Brazil. De Oliveira demanded over approximately $3,000,000 in Bitcoin in exchange for keeping the stolen data confidential and not publicizing it. Each of the four counts of making extortionate threats in relation to information obtained from protected computers carry a maximum prison term of 5 years, and a maximum fine of $250,000 or twice the value of any gain or loss, whichever is greater. Each of the four counts of threatening communications carry a maximum prison term of 2 years, and a maximum fine of $250,000 or twice the value of any gain or loss, whichever is greater. U.S. Attorney Sellinger credited special agents of the Federal Bureau of Investigation (“FBI”)’s Newark Field Office, under the direction of Acting Special Agent in Charge Nelson I. Delgado. The government is represented by Assistant U.S. Attorney David E. Malagold of the Cybercrime Unit in Newark. The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. deoliveira.indictment.pdf


title: MMM Holdings, LLC Agrees to Pay 15.2 Million Dollars to Resolve Allegations that it Violated the False Claims Act and Anti-Kickback Statute

component: Federal Bureau of Investigation (FBI)

body_text: SAN JUAN, Puerto Rico – The United States Attorney for the District of Puerto Rico and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) announce that MMM Holdings, LLC. (MMM) has agreed to pay $15,228,340 to resolve False Claims Act allegations that it implemented a gift card incentive program in violation of the Anti-Kickback Statute. According to the settlement agreement, the United States asserted that MMM submitted or caused to be submitted claims for payment to the Medicare Program relating to a gift card incentive scheme implemented by MMM during the period of January 2018 to December 2022, which the United States alleged violated the Anti-Kickback Statute, and which resulted in violations of the False Claims Act. As a result of the incentive scheme, the United States alleged that MMM distributed gift cards to administrative assistants of providers to induce the referral, recommendation, or arrangement for enrollment of thousands of Medicare beneficiaries in an MMM Medicare Advantage plan. Those newly enrolled Medicare beneficiaries resulted in associated premium payments of $6,091,336. The negotiated settlement with MMM took into consideration the company’s cooperative efforts and implementation of internal controls. In connection with the settlement, MMM entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires, among other conditions, that MMM create procedures designed to ensure that any new or existing marketing arrangements do not violate the Anti-Kickback statute. MMM must also engage an Independent Review Organization to review the systems that MMM has in place to track such arrangements and to review a sample of the arrangements each year of the CIA. This agreement underscores the commitment of the Justice Department and HHS-OIG to deter fraud, waste, and abuse in federal benefit programs. “Investigating healthcare fraud remains a high priority in the Department of Justice and the United States Attorney’s Office will aggressively pursue those that violate the healthcare laws of the United States”, said United States Attorney W. Stephen Muldrow. “In this case, we appreciate MMM’s cooperation during the investigation and willingness to promptly negotiate a resolution in this matter.” Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the Department of Health and Human Services, Office of Inspector General, said “Medicare Advantage plans that engage in improper financial arrangements undermine the integrity of the Medicare program and place profits ahead of enrollees’ best interests. HHS-OIG will continue to coordinate with our law enforcement partners to identify and investigate such allegations in order to protect federal health care programs and the Americans who rely on them.” This matter was prosecuted by Assistant U.S. Attorney Rafael J. López-Rivera, Civil Health Care Fraud Coordinator, at the U.S. Attorney’s Office, in coordination with the U.S. Department of Health and Human Services, Office of Inspector General and the collaboration of the Federal Bureau of Investigation. The United States Attorney’s Office encourages anyone with information involving waste, fraud, and abuse in federal healthcare or other programs, to please report the illegal conduct, by contacting: HHS-OIG Hotline: 1-800-HHS-TIPS (1-800-447-8477) or https://tips.oig.hhs.gov To file a voluntary self-disclosure, please access the link below: https://oig.hhs.gov/compliance/self-disclosure-info/self-disclosure-protocol/ You may also contact the FBI at (202) 324-3000, or online at www.fbi.gov or tips.fbi.gov. The settled civil claims are allegations only and MMM did not admit liability as part of this settlement agreement. Further, there has been no determination of civil liability.


title: Food City Agrees To Pay Over $8 Million To Settle False Claims Act Allegations Related To Opioid Dispensing

component: USAO - Tennessee, Eastern

body_text: KNOXVILLE, Tenn.– K-VA-T Food Stores, Inc. doing business as Food City (Food City), a regional grocery store chain headquartered in Abingdon, Virginia, has agreed to settle the government’s allegations under the False Claims Act (FCA) related to its dispensing of opioids and other controlled substances. Under the settlement, Food City will pay the United States $8,488,378. Food City will pay an additional $78,621 to the states of Virginia and Kentucky for claims paid to Food City by state Medicaid programs. According to court filed documents, the United States alleged that, from Jan. 1, 2011, through Dec. 31, 2018, 24 Food City store pharmacies dispensed opioids and other controlled substances that were medically unnecessary, lacked a legitimate medical purpose or medically accepted indication, and/or were not dispensed pursuant to valid prescriptions. The United States alleges that, as a result, Food City knowingly submitted, or caused to be submitted, false claims to federal healthcare programs. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by K-VA-T Partnership, LLP. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. K-VA-T Litigation Partnership, LLP v. K-VA-T Food Stores, Inc. d/b/a Food City , Case No. 3:20-cv-436 (EDTN). Relator K-VA-T Litigation Partnership, LLP will receive $1,527,908 of the proceeds from the settlement. “Pharmacies that fill prescriptions for opioids and other controlled substances have an obligation to ensure that those prescriptions are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to holding accountable pharmacies that have abdicated this responsibility and thereby contributed to the nation’s opioids crisis.” “When pharmacies fill prescriptions for opioids and other powerful controlled substances without regard to their legitimacy or medical necessity it significantly contributes to the opioid epidemic, causing great harm to our citizens and communities,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “This settlement agreement demonstrates that the United States Attorney’s Office and federal, state, and local law enforcement partners, are using all tools available to address the opioid crisis.” “The Medicare and Medicaid programs deliver vital prescription drug services to beneficiaries,” said Special Agent in Charge Kelly J. Blackmon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This case underscores HHS-OIG’s dedication to addressing the nation’s opioid overdose crisis and ensuring that only legitimate, medically necessary prescriptions are dispensed.” “The opioid epidemic continues to significantly impact the nation, devastating families across our country,” said Special Agent in Charge Derek M. Holt of the Office of Personnel Management Office of the Inspector General. “We applaud our law enforcement partners and colleagues at the Department of Justice for their work to hold pharmacies accountable for actions that could exacerbate the epidemic and endanger the health and safety of patients served by Federal health care programs.” “Today’s settlement demonstrates our commitment to holding pharmacies that knowingly dispense medically unnecessary opioids and other controlled substances accountable for their actions,” stated Special Agent in Charge Darrin K. Jones of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS thanks the U.S. Attorney’s Office and our investigative partners for their steadfast dedication to fighting the opioid epidemic plaguing our country and helping us protect servicemembers and their families.” “TRICARE is committed to providing safe, effective, and appropriate care to our warfighters, retirees, veterans, and their families. Dispensing medically unnecessary opioids and other controlled substances to our beneficiaries puts them at great risk and will not be tolerated,” said Chief Edward C. Norton Jr. of the Pharmacy Operations Division for the Defense Health Agency. “We will continue to hold pharmacies accountable for abiding by these standards to ensure we are delivering the very best health benefit to those who serve or have served our nation.” The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for Eastern District of Tennessee, with assistance from HHS-OIG and DCIS. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). The matter was handled by Assistant U.S. Attorneys Alan G. McGonigal, Alexa Ortiz Hadley, and Jeremy S. Dykes for the Eastern District of Tennessee, and Civil Division Fraud Section Trial Attorney Elizabeth J. Kappakas. The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


title: Jefferson Parish Man Sentenced to 25 Years Imprisonment for Producing Child Sexual Abuse Videos

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that JAYDEN D. D. HALL (“HALL”) , age 23, of Harvey, Louisiana, was sentenced for federal crimes involving child sexual abuse. HALL previously pled guilty to one count of Production of Materials Involving the Sexual Exploitation of Children, in violation of Title 18, United States Code, Sections 2251(a) and (e); and three counts of Transportation of Materials Involving the Sexual Exploitation of Children, in violation of Title 18, United States Code, Sections 2252(a)(1) and (b)(1). According to court documents, HALL created child sexual abuse videos and used social media accounts to distribute those videos, and other child sexual abuse material, through the internet. United States District Judge Jay C. Zainey sentenced HALL to twenty-five years in prison for the production count. For each transportation count, HALL was sentenced to twenty years in prison, concurrent with the production count. HALL was also sentenced to five years of supervised release after his release from prison, and payment of a $100 mandatory special assessment fee for each count. 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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . The U.S. Attorney’s Office would also like to acknowledge the assistance of the following agencies in this matter: the U.S. Department of Homeland Security, Homeland Security Investigations; the Louisiana Bureau of Investigation; the Jefferson Parish Sheriff’s Office, Strategic Engagement Team; and the New Orleans Police Department. The prosecution of this case was handled by Assistant U.S. Attorney Nicholas D. Moses, Health Care Fraud Coordinator.


title: Jamestown Pharmacist Arrested and Charged with Health Care Fraud and Aggravated Identity Theft in a Multi-Million Dollar Health Care Fraud Scheme

component: USAO - Tennessee, Middle

body_text: NASHVILLE – A federal indictment returned last week and unsealed on Friday charges Jamestown pharmacist Philip Hall, 48, with 9 counts of Health Care Fraud and 6 counts of Aggravated Identity Theft, announced Acting United States Attorney for the Middle District of Tennessee Thomas J. Jaworski. According to the indictment, Hall was a licensed pharmacist in Tennessee and was the owner, operator, and registered agent of Hall Family Pharmacy, Inc. (“HFP”), a pharmacy with locations in Jamestown and Clarkrange, Tennessee. Hall was the pharmacist-in-charge of HFP Jamestown and one of the pharmacists at HFP Clarkrange. From 2018 until at least May 2024, Hall submitted false claims to Medicare, Medicaid, TRICARE, and Blue Cross Blue Shield, for prescriptions for drugs that were medically unnecessary, not actually dispensed, or were not ordered by a physician or other healthcare provider. In many cases, the pharmacies lacked the inventory to even dispense these drugs. In total, Hall submitted false claims to Medicare, Medicaid, and TRICARE totaling more than $6 million. On many occasions, Hall also used the identification of other people without their authorization to obtain reimbursement for claims submitted to a health care benefit program. Hall personally profited from his participation in the scheme by receiving fraud proceeds for his personal use. “We will always seek to protect taxpayer dollars from those who would take them fraudulently and illegally,” said Acting United States Attorney Thomas J. Jaworski. “Seniors in our community need to know that Medicare will be protected from fraud and abuse.” If convicted, Hall faces up to ten years in federal prison for each health care fraud count, and two years consecutive in federal prison for the aggravated identity theft counts. The United States also is seeking a money judgment in the amount of $6,524,585.44, which represents the proceeds of Hall’s fraud scheme. This case is being investigated by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), the Tennessee Bureau of Investigation, and the Department of Defense, Office of Inspector General. Assistant U.S. Attorney Chris Suedekum is prosecuting the case. If you believe that you or someone you know may have any information about the conduct alleged in the indictment, please contact the HHS-OIG Hotline at 1-800-HHS-TIPS ( 1-800-447-8477 ) or call the HHS-OIG Hall tip line at (888) 720-4377. An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law. # # # # #


title: Hammond Man Sentenced for Violating Federal Gun Control and Federal Controlled Substances Acts

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

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on December 19, 2024, Chief U.S. District Judge Nannette Jolivette Brown sentenced TYSHON COLEMAN (“COLEMAN”) , age 28, a resident of Hammond, La., to a term of imprisonment for 106 months. COLEMAN previously pled guilty to Counts Three and Five of an indictment, charging him with violations of the Federal Controlled Substances and Federal Gun Control Acts. In Count Three, COLEMAN is charged with possession of a firearm, in furtherance of a drug trafficking crime, in violation of 18 U.S.C. Section 924(c)(1)(A)(i). In Count Five, COLEMAN is charged with possession of machine guns, in violation of 18 U.S.C. Sections 922(o)(1) and 924(a)(2). For Count Three, COLEMAN was sentenced to imprisonment for 60 months. For Count Five, COLEMAN was sentenced to imprisonment for 46 months. The sentences in Counts Three and Five were ordered to run consecutively. Following imprisonment, COLEMAN also faces 3 years of supervised release and payment of a $200 mandatory special assessment fee. According to court records, on May 18, 2022, the Ponchatoula Police Department went the Walmart Supercenter after receiving a complaint that a male, later identified as COLEMAN , was in possession of a firearm. Once at the parking lot, officers saw COLEMAN and another male seated inside of a vehicle. When officers ordered COLEMAN to show his hands, he refused to comply. After removing COLEMAN from the vehicle, officers observed a Glock Model 17, nine-millimeter handgun with a Glock machine gun conversion device and extended magazine, loaded with 30 rounds of ammunition, tucked between the passenger seat and the center console. The officers also saw a red backpack in the front passenger seat area where COLEMAN was seated, and a green backpack on the adjoining floorboard. Upon opening the red bag, the officers found another Glock Model 17, nine-millimeter pistol, with a machine gun conversion device, as well as marijuana, fentanyl, heroin, methamphetamine, and a digital scale. On the driver’s side floorboard, officers located a drum Model F5MFG, nine-millimeter caliber magazine, and a green backpack containing cocaine hydrochloride and marijuana. 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. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Ponchatoula Police Department. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Public Integrity Unit.


title: Hammond Man Guilty of Receipt of Materials Involving Sexual Exploitation of Minors

body_text: NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that JOSEPH AUTHEMENT (“AUTHEMENT”) , age 25, of Hammond, LA, pled guilty on December 18, 2025, to Receipt of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(2) and (b)(1). AUTHEMENT faces a mandatory minimum sentence of five (5) years and up to twenty (20) years imprisonment, and/or up to a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. In addition, AUTHEMENT faces a minimum of five (5) years of supervised release and up to life, after his release from prison. He also faces payment of a $100 mandatory special assessment fee. According to court documents, on March 11, 2024, Homeland Security Investigations (“HSI”) obtained a federal search warrant to seize AUTHEMENT’s Apple iPhone. On March 12, 2024, HSI special agents (“SA”) located AUTHEMENT at his residence in Hammond, LA. The agents seized AUTHEMENT’s iPhone and located images and videos depicting the sexual exploitation of minors on that phone. SAs later determined AUTHEMENT used Telegram to download and purchase child sex abuse materials. Sentencing in this matter is scheduled for March 19, 2025, before United States District Judge Jane Triche Milazzo. 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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . The U.S. Attorney’s Office would like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Rio Grande Valley Child Exploitation Investigations Task Force. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.


title: Marrero Man Sentenced for Machine Gun Possession

body_text: NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that JOSEPH P. SCHWARTZ, IV (“SCHWARTZ”) , age 21, of Marrero, La., was sentenced on December 17, 2024, by U.S. District Judge Darrel James Papillion after previously pleading guilty to possessing a machine gun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). SCHWARTZ was sentenced to 24 months imprisonment, three (3) years of supervised release, and ordered to pay a $100 mandatory special assessment fee. According to court documents, on February 25, 2022, while patrolling Bourbon Street during Mardi Gras, Louisiana State Police (LSP) troopers observed two males engaged in an altercation. One male, later determined to be SCHWARTZ, possessed a concealed firearm. As Troopers attempted to stop him , SCHWARTZ resisted and fled through the Mardi Gras crowds with the gun in his hand. Ignoring repeated law enforcement commands to stop, he discarded the weapon in a trash can. SCHWARTZ was apprehended thereafter, and the firearm recovered. It was later determined that the recovered firearm, a Glock Model 23, .40 caliber pistol, with a Glock auto-sear, had been modified to enable automatic fire. 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. U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Louisiana State Police in investigating this matter. The case was prosecuted by Special Assistant U.S. Attorney James N. Ollinger of the Violent Crime Unit.


title: Slidell Man Sentenced for Possession of Child Sexual Abuse Materials

body_text: NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on December 18, 2024, CHRISTOPHER MICHAEL SOMMERS (“SOMMERS”) , age 42, of Slidell, La., was sentenced for Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). United States District Judge Jane Triche Milazzo sentenced SOMMERS to ten (10) years imprisonment, followed by a fifteen (15) year term of supervised release, and a $100 mandatory special assessment fee. The defendant’s sentence was subject to a sentencing enhancement of a ten-year mandatory minimum because of a conviction on December 13, 2011, in the United States District Court, Eastern District of Louisiana, for Receipt of Child Pornography, in violation of Title 18, United States Code, Section 2252(a)(2). According to court documents, the case against SOMMERS developed from an undercover online investigation by the Apache Junction Police Department in Arizona into those individuals who were sharing Child Sexual Abuse Material (“CSAM”). As a result, on April 3, 2024, Homeland Security Investigations (“HSI”) special agents, along with the St. Tammany Parish Sheriff’s Office and the Louisiana Bureau of Investigation, executed a federal search warrant at SOMMERS’s residence in Slidell. During the execution of the search warrant, SOMMERS was found in possession of a Samsung 256 gigabyte USB thumb drive containing 950 images and videos depicting the sexual victimization of minors. 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 United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations; the St Tammany Parish Sheriff’s Office; The Apache Junction Police Department; and the Louisiana Bureau of Investigation, with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.


title: Man Guilty of Conspiring to Steal Mail, Possession of a Postal Service Mail Key and Possession of Stolen Mail

body_text: NEW ORLEANS, LOUISIANA -- U.S. Attorney Duane A. Evans announced today that CHAD WOODS (“WOODS”), age 29, of New Orleans, pled guilty on Thursday, December 19, 2024, to Conspiracy to Steal United States Mail in violation of Title 18, United States Code, Section 371 Possession of a United States Postal Service (USPS ) “arrow” key in violation of Title 18, United States Code, Section 1704, and Possession of Stolen Mail that had been deposited into authorized mail receptacles, in violation of Title 18, United States Code, Section 1708. United States District Court Judge Eldon E. Fallon set sentencing for March 27, 2025. According to the indictment, on June 23, 2022, WOODS and another man stole mail from one location and attempted to steal mail from another location in Kenner, Louisiana. The co-conspirator acted as the driver and WOODS used the USPS key to steal mail from the first location . After a police chase, the pair were found in possession of 36 stolen checks, including one forged counterfeit check, six opened pieces of mail, and the USPS “arrow key” used to open the USPS mailboxes to steal mail. WOODS faces a maximum penalty of up to five (5) years imprisonment on the Conspiracy to Steal United States Mail and the Possession of Stolen Mail counts, and up to ten (10) years imprisonment on the count of Possession of the United States Postal Service mail key, each of these counts to be followed by up to three (3) years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. U.S. Attorney Evans praised the work of the United States Postal Inspection Service, the Jefferson Parish Sheriff’s Office and the Kenner Police Department in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is charge of the prosecution.


title: Laredo man indicted for smuggling over 100 people in locked  trailer

component: USAO - Texas, Southern

body_text: LAREDO, Texas – A federal grand jury has returned an indictment for transporting and/or smuggling of a large group of undocumented aliens via tractor trailer, announced U.S. Attorney Alamdar S. Hamdani. Juan Manuel Aguirre, 49, is charged in a three-count indictment with conspiracy to transport an undocumented alien within the United States and the transportation of an undocumented alien within the United States for financial gain. He is expected to appear for his arraignment before a U.S. magistrate judge in the near future. According to the criminal complaint originally filed in the case, On Dec. 2, law enforcement observed individuals being loading into a white trailer in a warehouse parking lot. After the white truck that was hauling it departed the location, authorities conducted a traffic stop, according to the charges. A search allegedly resulted in the discovery of 101 non-U.S. citizens locked inside the trailer, including 12 unaccompanied children. The charges further allege two reported they had difficulty breathing and feared for their life due to the conditions in the trailer. If convicted, Aguirre faces up to 10 years in prison for each of the three counts and fines of up to $250,000. Homeland Security Investigations, FBI, Texas Department of Public Safety and Border Patrol conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of Customs and Border Protection, Drug Enforcement Administration and the Webb County Sheriff’s Office. 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 on the Department of Justice’s OCDETF webpage. Assistant U.S. Attorney Brandon Scott Bowling is prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: Two Indicted in Red Lake Drug Trafficking Conspiracy

component: USAO - Minnesota

body_text: MINNEAPOLIS – Two men have been indicted for conspiracy to distribute methamphetamine and fentanyl on the Red Lake Indian Reservation, announced United States Attorney Andrew M. Luger. According to court documents, on or about September 4, 2024, Bobby Lee Donnell, 46, and Jordan Lee Lussier, 29, were stopped by the Minnesota State Patrol. A state trooper checked Donnell’s and Lussier’s driver’s licenses and found both had been revoked; Lussier also had a warrant for his arrest. A subsequent search of the vehicle led to the discovery of over 50 grams of methamphetamine and over 40 grams of fentanyl. Donnell and Lussier were each indicted on one count of conspiracy to possess methamphetamine and fentanyl with the intent to distribute. An arraignment and motions hearing has been scheduled for January 24, 2025. This case is the result of an investigation conducted by the FBI, Paul Bunyan Drug Task Force, and the Minnesota State Patrol. Assistant U.S. Attorney Campbell Warner is prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Sartell Woman Pleads Guilty in Bank Fraud Case

body_text: MINNEAPOLIS – A Sartell woman has pleaded guilty to wire fraud, announced U.S. Attorney Andrew M. Luger. According to court documents, Adelle Starin, 40, engaged in a fraud scheme through a Minnesota business she founded and operated called Baby’s on Broadway, which sold baby products and toys. As part of the scheme, Starin submitted fraudulent claims for reimbursement to TRICARE, a healthcare program of the U.S. Department of Defense Military Health System. TRICARE paid out many of Starin’s fraudulent claims, but when TRICARE began rejecting those claims, Starin expanded her scheme to bring other sources of revenue into her company. She created a company called Sunshine Medical LLC and represented to two lenders—Liquid Capital Enterprises Corp. and Slope Tech. Inc.—that she needed financing to buy inventory for Baby’s on Broadway from Sunshine. In reality, and as Starin knew, Sunshine Medical had no business operations or revenue. To execute this scheme, Starin created fake Sunshine Medical invoices. She then sent those invoices to the lenders by means of wire communications in interstate commerce. Over the course of her scheme, Starin obtained over $9,000,000 in financing on the basis of her misrepresentations. Starin pleaded guilty on December 19, 2024, in U.S. District Court to one count of wire fraud before Judge Jeffrey Bryan. A sentencing hearing will be scheduled at a later date. The case is the result of an investigation by the FBI, and the U.S. Department of Defense’s Defense Criminal Investigative Service and Defense Health Agency Office of Inspector General. Assistant U.S. Attorney Daniel W. Bobier is prosecuting the case for the United States.


title: U.S. Attorney’s Office, the FBI, Along with Tribal and Local Law Enforcement Officials, Release Final “Don’t Click December” PSA

body_text: BOISE – During the holiday season, online criminals increasingly target Idahoans through online scams and fraud schemes. Today, U.S. Attorney Josh Hurwit, along with the FBI, the Fort Hall Police Department, the Bannock County Prosecuting Attorney’s and Sheriff’s Offices, the Bonneville County Prosecuting Attorney’s and Sheriff’s Offices, the Idaho Falls Police Department, and the Pocatello Police Department, released a fourth and final PSA as part of their joint “Don’t Click December” Consumer Protection Campaign. The AARP is also participating in the announcement and the awareness campaign. The campaign advises members of the public to exercise skepticism and caution when receiving unsolicited online, email, pop-up, or text communications from unknown or unverified sources. If there is any doubt about a link, message, or attachment, law enforcement cautions: “ Don’t Click It .” In the fourth PSA, available here , Pocatello Police Chief Roger Schei, Bonneville County Sheriff Samuel Hulse, and U.S. Attorney Josh Hurwit warn the public about the “Tech Support” scam and explain some of the ways in which individuals can protect themselves. In this scam, criminals impersonate technology, banking, or government officials to convince victims to share personal information. You could get a pop-up on your computer indicating your accounts have been hacked and to call a number. But that number goes to the scammer who tries to manipulate you to gain access to your computer or accounts and takes your money to fix a non-existent problem. If you get such a request, Don’t Click It . Government entities and legitimate businesses will never call you or send unsolicited pop-up messages to ask for access to your computer. This four-part series of PSAs were released in the weeks leading up to Christmas is an effort to alert the public to other common online fraud schemes that Idaho law enforcement has seen affect Idahoans. Unfortunately, these are not the only schemes affecting the public, and new schemes arise all the time. Law enforcement hopes that the “Don’t Click December” Consumer Protection Campaign will raise public awareness and encourage individuals to talk to their friends and relatives about not clicking suspicious links, texts, messages, pop-ups, or attachments. “Through the Don’t Click December campaign, we recognize that any Idahoan with a smartphone, tablet, or computer is likely to be targeted by online criminals at some point,” said U.S. Attorney Hurwit. “But we are not helpless. By being aware of common schemes and by talking to loved ones about the red flags of online fraud, every Idahoan can make a difference in this fight.” “As technology continues to evolve and scammers become more aggressive and creative in their tactics, the public should be more vigilant than ever,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “The FBI is committed to prevention and awareness efforts during the holiday season and throughout the year. Anyone who believes they are a victim of a scam should call their bank, report the crime to law enforcement, and file a complaint with the FBI's Internet Crime Complaint Center at www.IC3.gov .” The U.S. Attorney’s Office and its law enforcement partners recognize that we all must work to eliminate the stigma individuals may experience if they are victimized. There is no shame to falling victim to an online scheme, which are often designed by professional criminals, sophisticated, and tested repeatedly across the country. For this reason, the “Don’t Click December” Consumer Protection Campaign also publicizes ways to report scams and incidents of fraud to the FBI and local law enforcement. To learn more about these and other scams targeting Americans visit FBI.gov , and if you believe you have been victimized, take-action by reporting it to FBI’s Internet Crime Complaint Center at IC3.gov or by contacting your local law enforcement agency. ###


title: Raleigh Man Who Fled from Police with “Ghost Gun” Sentenced to Eight Years

body_text: RALEIGH, N.C. – A Raleigh man was sentenced to 96 months in prison after fleeing from the police and discarding a “ghost gun”. On May 22, 2024, Treyvion Maleke Sutton pled guilty to being a felon in possession of a firearm and ammunition. According to court documents and other information presented in court, on December 8, 2023, Sutton, 20, fled from Raleigh police officers on foot after officers attempted a traffic stop of a vehicle in which he was a passenger. While running from officers, Sutton discarded a loaded, unserialized “ghost gun” with an extended magazine. Sutton, who has prior felony convictions for common law robbery, assault by strangulation, discharge of a weapon into occupied property, assault with a deadly weapon with intent to kill and battery of an unborn child, was prohibited from possessing firearms or ammunition. A privately made firearm is often called a “ghost gun” because it is not marked with a serial number and therefore is far more difficult for law enforcement to trace if they are used to commit crimes. These firearms can be made from scratch, or they can be assembled from weapon parts kits, including “buy-build-shoot” kits, which are weapon part kits with pre-manufactured, dissembled, complete firearms (a firearm in a box). The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing. Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Sarah E. Nokes 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-24-D-RN.


title: Former MPD Intelligence Supervisor Guilty of Obstructing Investigation and Making False Statements

body_text: WASHINGTON – Shane Brian Lamond, 49, the former supervisor of the Intelligence Branch of the Metropolitan Police Department’s Homeland Security Bureau, was found guilty today of obstructing an investigation into the Dec. 12, 2020, destruction of a Black Lives Matter (BLM) banner and for making false statements to federal law enforcement officials, including lying when he denied tipping off Henry “Enrique” Tarrio, the national chairman of the Proud Boys, to the fact that law enforcement had a warrant for Tarrio’s arrest. The announcement was made by U.S. Attorney Matthew M. Graves for the District of Columbia and FBI Assistant Director in Charge David Sundberg of the Washington Field Office. “As proven at trial, Lamond turned his job on its head—providing confidential information to a source, rather than getting information from him—lied about the conduct, and obstructed an investigation into the source,” said U.S. Attorney Graves. “The intelligence gathering role that Lamond was supposed to play is critical to keeping our community safe. His violation of the trust placed in him put our community more at risk and cannot be ignored.” "As a sworn law enforcement officer, Lamond took an oath to faithfully execute the law. Instead, he broke the law by providing confidential information to a source, obstructing an investigation into that source, and lying to federal investigators," said the FBI’s Sundberg. "His conviction is a testament to the FBI’s work to bring public officials to justice for abusing their positions of power and trust." Lamond, of Stafford, Virginia, was found guilty following a seven-day bench trial before U.S. District Court Judge Amy Berman Jackson of one count of obstruction of justice in violation of D.C. Code Section 22-722 and three counts of making false statements in violation of Title18 United States Code, Section 1001. Judge Berman Jackson set a sentencing date of April 3, 2025. According to the evidence at trial, Lamond worked as the supervisor of the Intelligence Branch of MPD’s Homeland Security Bureau. Beginning in July 2019, Lamond and Tarrio were in regular contact regarding Proud Boys planned activities in the District of Columbia as part of Lamond’s job responsibilities, but after the 2020 election, Lamond began using Telegram to surreptitiously provide information to Tarrio about law enforcement activity relating to Proud Boys’ activities in Washington, D.C. For example, on December 18, 2020, Lamond gave Tarrio confidential law enforcement information into the investigation of the December 12, 2020, burning of a banner that read “#BLACKLIVESMATTER,” even though Tarrio was the prime subject in that investigation. Tarrio then passed this information to other Proud Boys. And, on January 4, 2021, while Tarrio was on a flight from Miami, Florida to the DMV, Lamond texted Tarrio, in a message set to self destruct, that a warrant had been signed for his arrest. After arriving in Arlington, Virginia, Tarrio drove to the District and was arrested on the warrant. Tarrio subsequently pleaded guilty to one count of destruction of property in connection with the burning of the banner. On June 2, 2021, during an interview with federal law enforcement, Lamond made at least three false and misleading statements regarding his communications and contacts that formed the basis for the false statements convictions. These false and misleading statements related to (1) whether Lamond had notified Tarrio about the status of the MPD investigation into the banner burning; (2) whether Lamond notified Tarrio about Tarrio’s pending arrest warrant; and (3) the nature and scope of Lamond’s discussion with Tarrio prior to and after January 6. The D.C. Code obstruction of justice charge carries a statutory maximum of 30 years in prison. Each charge for making a false statement carries a statutory maximum of five years in prison. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. This case was jointly investigated by the FBI’s Washington Field Office and the United States Attorney's Office Criminal Investigations Unit. The case is being prosecuted by Assistant United States Attorneys Rebecca Ross and Joshua Rothstein. ## 23cr177


title: New Orleans Man Plead Guilty for Violation of the Federal Controlled Substances Act

body_text: NEW ORLEANS, LOUISIANA – DRESHAWN FIELDS, age 28, a resident of New Orleans, pled guilty on Wednesday, December 4, 2024 to a one-count indictment for possessing with the intent to distribute fentanyl, announced U.S. Attorney Duane A. Evans. FIELDS faces a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000, at least three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee. According to court records, in 2023, the Federal Bureau of Investigation (“FBI”) began to monitor FIELDS’s Instagram account. On October 4, 2023, FIELDS posted a video of four boxes of Tapentadol with the caption “Rush hour (train emoji).” Train emojis are often used to advertise Tapentadol for sale. Tapentadol is a Schedule II narcotic. On January 9, 2024, a New Orleans Police Department (“NOPD”) officer observed a white Dodge Charger located at 10833 Chef Menteur Highway, New Orleans, Louisiana. Law enforcement verified the identification of the vehicle via the vehicle identification number (“VIN”) and discovered that it was stolen from Kenner, Louisiana on December 8, 2023. The female stated that FIELDS was the driver of the vehicle. The investigating officer authored a search warrant for the vehicle FIELDS fled from, which was signed by an Orleans Parish magistrate commissioner. The investigating officer confiscated multiple items pursuant the execution of the search warrant. On March 11, 2024, a federal criminal complaint was signed charging FIELDS with possession with the intent to distribute narcotics. Subsequently, law enforcement arrested FIELDS near Orleans Parish Criminal District Court as he exited a vehicle. A search warrant for the vehicle was submitted and approved. Pursuant to the search warrant, law enforcement recovered methamphetamine, a magazine with live rounds, a scale, baggies, and five individual pills that later tested positive for fentanyl. The case was investigated by New Orleans Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Mike Trummel of the Violent Crimes Unit.


title: VA Hospital Nurse Indicted for Child Pornography

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A nurse at the Veterans Affairs hospital in Kansas City, Mo., has been indicted by a federal grand jury on charges related to child pornography. Paul Robert Wyatt, 56, of Excelsior Springs, Mo., was charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Dec. 17. The indictment was unsealed and made public today following Wyatt’s arrest and initial court appearance. Wyatt is employed as a nurse at the Kansas City V.A. Medical Center on Linwood Boulevard in Kansas City, Mo. The federal indictment alleges that Wyatt distributed child pornography over the internet on Sept. 9, 2023. The indictment also charges Wyatt with one count of receiving child pornography on Oct. 12, 2023, and one count of possessing child pornography (which involved a victim under the age of 12) on Nov. 22, 2023. The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Maureen A. Brackett. It was investigated by the FBI. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."