component: USAO - North Carolina, Middle

body_text: WASHINGTON – The Justice Department announced today that it has secured a settlement agreement with the City of Durham (City), North Carolina, to resolve the department’s claim that the hiring process for firefighters in the Durham Fire Department (DFD) violates Title VII of the Civil Rights Act. Specifically, the department alleges that the City’s fire department screens applicants with a written test that discriminates against Black candidates. Title VII is a federal statute that prohibits employment discrimination based on race, sex, color, national origin and religion. Title VII prohibits not only intentional discrimination but also employment practices that result in a disparate impact on a protected group, unless such practices are job related and consistent with business necessity. The settlement agreement resolves a civil pattern or practice investigation the Civil Rights Division opened in February 2020. As part of the investigation, the division conducted an in-depth review of DFD’s hiring practices, applicant data and other information received from the DFD. The division concluded that the fire department was using a written test that does not meaningfully distinguish between applicants who can and cannot perform the job of a firefighter. The test also disqualified Black applicants from employment at significantly disproportionate rates. The department thus concluded that the test violates Title VII. “Discriminatory employment tests do more than cost applicants a fair chance to compete for public service jobs like firefighting; they also prevent communities from being served in these crucial positions by the most qualified candidates for the job,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The under-representation of Black people in the fire department workforce in Durham, and across the country, undermines public safety efforts. This settlement agreement requires the Durham Fire Department to reform its unlawful hiring process and provide monetary and other relief to those already harmed. The Justice Department will continue to work to ensure that all qualified applicants have a fair and equal opportunity to serve their communities.” “Employers should identify and eliminate practices that have a disparate impact based on race,” said U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina. “The Justice Department will continue to work to eliminate discriminatory policies that deprive qualified applicants of a fair chance to compete for employment opportunities.” The complaint , filed yesterday in the Middle District of North Carolina, alleges that the City’s uses of the written test called the Comprehensive Examination Battery (CEB) disproportionately exclude Black candidates from employment as firefighters. The department further alleges that DFD’s uses of the CEB are not job-related and consistent with business necessity, and thus violate Title VII. Under the terms of the consent decree also filed yesterday, DFD will: Adopt a written test that does not discriminate in violation of Title VII and provide data to the department on the administration of the new test to ensure compliance; Pay $980,000 in back pay to applicants who were disqualified by DFD’s uses of the challenged test; and Hire up to 16 applicants who were unfairly disqualified by the challenged test and who successfully complete the new firefighter selection process. The full and fair enforcement of Title VII is a top priority of the Civil Rights Division. The division has issued a fact sheet on combating hiring discrimination by police and fire departments to help applicants for public safety jobs understand their rights to be free from discriminatory hiring processes. More information about the Civil Rights Division can be found at https://www.justice.gov/crt . ###


title: Lehigh Acres Man Arrested In Connection With Multi-Million Dollar COVID Relief Fraud Scheme

component: USAO - Florida, Middle

body_text: Fort Myers, FL – United States Attorney Roger B. Handberg announces the arrest of Lester John Parker, Jr. (55, Lehigh Acres) on a 15-count indictment related to his alleged involvement in a multi-million-dollar COVID-19 relief fraud scheme. Parker’s charges include one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, one count of access device fraud, four counts of aggravated identity theft, and three counts of engaging in monetary transactions in criminally derived property. If convicted, Parker faces up to 20 years in federal prison for each count of conspiracy to commit wire fraud, wire fraud, and conspiracy to commit money laundering. He faces up to 10 years’ imprisonment for each count of access device fraud and engaging in monetary transactions in criminally derived property. The aggravated identity theft counts carry a mandatory penalty of 2 years in federal prison consecutive to any other penalties imposed. According to the indictment and court records, between 2020 and 2021 Parker devised a scheme to defraud the United States Small Business Administration (SBA) and various SBA-approved lenders by submitting fraudulent Paycheck Protection Program (PPP) loan applications which included forged bank statements and IRS records. PPP loans were one of the sources of economic relief provided by the Coronavirus Aid, Relief and Economic Security (CARES) Act. Parker has been linked to dozens of fraudulent PPP loan applications which resulted in more than $3 million in fraudulent loan payouts in 2020 and 2021. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the United State Secret Service. It is being prosecuted by Assistant United States Attorney Simon Eth. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department's response to the pandemic, please visit Justice.gov/Coronavirus and Justice.gov/Coronavirus/Combating Fraud. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice's National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form.


title: Maryland Staffing Firm Owners Indicted For Evading Payment Of At Least $10 Million Dollars In Taxes Owed To The United States

component: USAO - Maryland

body_text: Baltimore , Maryland – On October 2, 2024, a federal grand jury returned an indictment charging Jeannette Gomez, age 54, of Perry Hall, Maryland, and Edgar Gomez, age 51, of Perry Hall, Maryland, with failure to report and pay over employment taxes accrued pursuant to their interest in SND Services, LLC and related entities. The indictment was announced by Erek L. Barron, U.S. for the District of Maryland, and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office. As detailed in the indictment, the defendants owned and operated several companies engaged in providing temporary staffing services. These companies included SND Services, LLC and SND Services Inc. Under the direction of Jeannette Gomez, these entities issued Forms W-2 to employees and withheld federal income taxes and Social Security and Medicare (“FICA”) taxes from their wages but failed to pay over the total withheld to the IRS. It is estimated that the defendants failed to pay over at least $10,476,696 in employment taxes. As further alleged in the indictment, the defendants diverted the funds withheld in trust for their personal use, including for the purchase of residences costing more than $1 million dollars and luxury vehicles costing in excess of $200,000. If convicted, the defendants face a maximum sentence of 5 years in federal prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings. U.S. Attorney Barron commended Internal Revenue Service Criminal Investigation for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Adeyemi Adenrele and Special Assistant U.S. Attorney Melinda Dunmire, who are prosecuting the federal case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Former New Castle Police Lieutenant Found Guilty of Excessive Use of Force and Attempted Cover-Up Following Federal Jury Trial

component: Civil Rights Division

body_text: INDIANAPOLIS—A federal jury has convicted Aaron Strong, 46, of New Castle, of three counts of deprivation of rights under color of law and one count of witness tampering, following a five-day trial. According to court documents and evidence introduced at trial, Aaron Strong was employed as a police officer with the New Castle Police Department. At the time the events occurred, Strong was a Lieutenant and served as Commander of the Henry County S.W.A.T. Team. Between 2017 and 2019, Strong engaged in a pattern of excessive use of force against a New Castle resident during the course of an arrest, and two detainees at the Henry County Jail. On July 12, 2017, Strong was part of a group of law enforcement and correctional officers that responded to reports that inmates were intoxicated at the Henry County Transition Center, a dormitory-style area of the facility designated for detainees who posed a lower security risk. When officers arrived and directed detainees to get on the ground, detainees proceeded to lay on the ground or get to their knees. Inmate “T.C” was laying on the ground when Lieutenant Strong encountered him. In response to a comment made by the inmate, Strong stomped on T.C.’s head multiple times, causing significant bodily harm. During the same incident, inmate “E.S.” initially got to his knees when officers ordered him to get on the ground, before eventually laying on the ground as directed. In response to the inmate’s delay in getting all the way to the ground, Lieutenant Strong shot him in the back with a “bean bag” shotgun round at point-blank range—approximately four feet away. The shot fractured the victim’s spine. All of the events at the Henry County Transition Center that day were captured on video. Other responding officers were so disturbed by Strong’s conduct that they immediately reported the incident to supervisors. As a result of Strong’s actions, the New Castle Police Department removed Strong from its S.W.A.T. Team. On August 18, 2019, New Castle Police engaged in a foot pursuit of “J.W.,” the subject of an investigation. After J.W. lowered himself to the ground, put his hands up and said, “I’m done,” officers began the process of putting him under arrest. As J.W. was lying face down and other officers were working to place him in handcuffs, Lieutenant Strong, without provocation, began to strike the arrestee on his arms, neck, and head with an expandable baton, resulting in significant bodily injury. In an attempt to cover up his illegal use of force against J.W., Strong knowingly made false statements to an Indiana State Police Trooper during the investigation of the 2019 incident. A second defendant, former Henry County Reserve Deputy Adam Guy, was acquitted by the jury of a single count of witness tampering related to the 2019 incident. “Law enforcement officers put their lives on the line every day to serve our communities. Their jobs are difficult, dangerous, and noble,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Aaron Strong is not noble. He repeatedly and unlawfully abused his position of authority to inflict violence, injury, and pain—with no lawful justification. He then lied to cover it up. Our community deserves better. Together with our partners at the Department of Justice, the FBI, and Indiana State Police, our federal prosecutors will continue to seek accountability for police who illegally assault those they are sworn to protect.” “Aaron Strong is a repeat offender who defied his oath and abused his law enforcement authority to violently and unlawfully assault multiple individuals,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant put his fellow officers in danger and grievously injured people in his custody, whose wellbeing and rights he had a legal and moral duty to protect. Strong betrayed the law enforcement profession when he told lie after lie in an effort to cover up his crimes and derail an independent investigation. This unanimous jury verdict makes clear a core principle in our country – law enforcement officers are not above the law and will be held accountable for their crimes.” "When those who are sworn to protect the public instead use excessive force it destroys trust in law enforcement and perpetuates fear,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue to ensure those abusing their power will be investigated and held accountable.” The FBI and Indiana State Police investigated this case, with the cooperation and assistance of the New Castle Police Department and Henry County Sheriff’s Office. Chief U.S. District Judge Tanya Walton Pratt presided over the trial. Strong is scheduled to be sentenced on Jan. 7, 2025, and faces a maximum penalty of 50 years in prison. U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett and the Civil Rights Division’s Criminal Section Trial Attorney Alec Ward, who prosecuted this case. ###


title: New Orleans Tax Preparer Convicted of Tax Fraud and Covid Fraud

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS – United States Attorney Duane A. Evans announced that CELINA BOLTON-FULTZ (“BOLTON-FULTZ”) , age 35, of Slidell, Louisiana, pled guilty on October 3, 2024 to thirty counts of assisting in filing false tax returns under 26 U.S.C. § 7206(2), five counts of filing her own false tax returns under 26 U.S.C. § 7206(1), four counts of making false statements under 18 U.S.C. § 1001, and two counts of theft of government funds under 18 U.S.C. § 641. The Honorable Eldon E. Fallon set sentencing for January 23, 2025. According to court documents, from 2018 through 2022, BOLTON-FULTZ submitted thirty false tax returns for seven clients of her tax preparation business, fraudulently inflating their income by adding fake “household help” income to their returns to obtain inflated tax credits that the clients would not have received had they been truthful. BOLTON-FULTZ also fraudulently reduced her own income on her tax returns for tax years 2017 through 2021, by fraudulently reducing her gross receipts and reporting false expenses for businesses that she owned. In addition to the tax crimes, BOLTON-FULTZ pled guilty to two types of fraud concerning funds disbursed under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). She pled guilty to four counts of making false statements, in violation of 18 U.S.C. § 1001, for submitting fraudulent applications in 2020 and 2021 for Paycheck Protection Program (“PPP”) loans, in which she provided false information about her businesses’ payroll and submitted fake tax forms to support those PPP applications. BOLTON-FULTZ also pled guilty to two counts of theft of government funds, under 18 U.S.C. § 641, for making fraudulent applications for Economic Injury Disaster Loan (“EIDL”) applications, through the submission of false applications to the Small Business Administration (“SBA”) for EIDL funds. To accomplish this fraud, she inflated her businesses’ revenues and expenses and submitted false tax documents in support of the EIDL applications. In total, she received $204,103 in funds through the fraudulent PPP and EIDL applications. Under the terms of her plea agreement, BOLTON-FULTZ agreed to pay a total of at least $405,133.00 in restitution to the IRS and the SBA. At sentencing, the maximum penalty BOLTON-FULTZ may receive is three years of imprisonment as to each of the tax counts, five years of imprisonment as to each of the PPP fraud counts, and ten years of imprisonment as to each of the EIDL fraud counts. She also faces a fine of up to $100,000 for each of the tax counts and up to $250,000 for each of the PPP and EIDL fraud counts, or the greater of twice the gross gain to the defendant or twice the gross loss to any person under 18 U.S.C. § 3571, or both. Following any term of imprisonment, BOLTON-FULTZ also faces a term of supervised release of up to three years for the PPP and EIDL fraud counts and up to one year for the tax counts. Finally, she faces payment of a mandatory special assessment fee for every count to which she pled guilty. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The U.S. Attorney’s Office would also like to acknowledge the assistance of IRS Criminal Investigations with this matter. Assistant United States Attorney Nicholas D. Moses, of the Financial Crimes Unit and Health Care Fraud Coordinator, is in charge of the prosecution.


title: Former Bank Loan Officer Sentenced for Defrauding Federal Credit Union

component: USAO - Massachusetts

body_text: BOSTON – A Boston woman was sentenced on Oct. 4, 2024 for conspiring to defraud the federal credit union where she worked as a loan officer by obtaining loans in the names of inmates at a Massachusetts prison where a co-conspirator was incarcerated. Nadaje Hendrix, 27, of Brighton, was sentenced by U.S. District Judge Julia E. Kobick to eight months in prison to be followed by three years’ supervised release. Hendrix was also ordered to pay restitution in the amount of $134,000. In July 2024, Hendrix pleaded guilty to one count of conspiracy to commit bank fraud. In January 2024 , Hendrix was indicted by a federal grand jury along with alleged co-conspirator Glenroy Miller Between December 2019 and August 2021, Hendrix and, allegedly, Miller agreed to defraud the credit union where Hendrix worked as a loan officer and assistant branch manager, by obtaining loans in the names of other individuals, including inmates at a Massachusetts prison where Miller was incarcerated. While in prison, Miller allegedly gave Hendrix information about fellow inmates for Hendrix to use in creating fraudulent loan applications, and then arranged to have other co-conspirators go into the credit union to pretend to be the inmates, sign loan forms and obtain loans from the credit union through Hendrix. The scheme also involved obtaining loans in the names of individuals whose identities were stolen. In total, Hendrix and, allegedly, Miller stole about $134,000 from the credit union in about two months in 2021. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Kriss Basil of the Securities, Financial & Cyber Fraud Unit is prosecuting the case. The details contained in the charging document are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Fox Valley Man Sentenced to Ten years’ Imprisonment for Trafficking Methamphetamine in Neenah and Manitowoc and for Possessing a Firearm as a Previously Convicted Felon

component: USAO - Wisconsin, Eastern

body_text: Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on September 17, 2024, Senior United States District Judge William C. Griesbach sentenced Chee Neng Xiong (age: 36) to a total sentence of ten years’ imprisonment and ten years’ supervised release after Xiong pled guilty to Distributing Methamphetamine and Possessing a Firearm as a Previously Convicted Felon, in violation of Title 21, United States Code, Section 841(a)(1), and Title 18, United States Code, Section 922(g)(1). According to court records, in March and April 2024, agents with the Lake Winnebago Area Metropolitan Enforcement Group and Manitowoc County Drug Task Force used informants to make four controlled buys of methamphetamine from Xiong. Agents arrested Xiong and searched his Neenah residence on May 16, 2024, finding a loaded 9-mm pistol and a box of ammunition. At the time of his drug trafficking and firearm possession, Xiong had prior felony convictions in Outagamie and Brown Counties for aggravated battery, soliciting a child to participate in gang activity, possessing amphetamine with intent to distribute, and bail jumping. Xiong was on extended supervision in Wisconsin at the time of his offenses, which authorities revoked, returning him to state prison. Judge Griesbach ordered Xiong’s federal prison term to run consecutively to his state prison time. The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group Drug Unit, the Manitowoc County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Wisconsin Department of Justice - Division of Criminal Investigation, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorney Timothy Funnell. # # # #


title: Corona Man Sentenced to 6 Years in Prison for Filing False Tax Returns for Clients and Causing at Least $28 Million Loss to IRS

component: USAO - California, Central

body_text: RIVERSIDE, California – A Riverside County man has been sentenced to 72 months in federal prison for preparing and filing false tax returns for his clients, a decade-long scheme that caused a tax loss to the IRS of at least $28 million, the Justice Department announced today. Salvador Gonzalez, of Corona, was sentenced on Monday by United States District Judge Jesus G. Bernal, who also ordered him to pay $403,908 in restitution. Gonzalez pleaded guilty on June 17 to three counts of aiding and assisting in the preparation of false tax returns. Starting in 2013, Gonzalez operated Grace’s Lighthouse Resource Center, Inc., a Corona-based tax return-preparation business. During that time, on thousands of returns he prepared for clients, Gonzalez consistently directed his clients to create a phony corporation and to title their homes, cars, and other assets in the name of that corporation. Gonzalez then referred those clients to an associate to prepare these sham corporation’s tax returns. The associate would provide the clients with a blank spreadsheet and request that they input their business expenses into that spreadsheet. At Gonzalez’s direction, the clients would include personal expenses such as their mortgage payments, car payments, and utility bills, and then provide the spreadsheet to the associate. The associate would, in turn, use the spreadsheet to prepare the business tax returns, which inevitably would show a loss. These fabricated losses flowed through to the clients’ individual income tax returns, and fraudulently reduced the amount of individual income taxes they paid. Gonzalez then prepared the clients’ individual income tax returns, which incorporated the fraudulent business losses and offset their income. To further reduce the clients’ taxes owed to the IRS, Gonzalez also fabricated deductions on the personal returns such as unreimbursed employee expenses, cash contributions to charity, and medical and dental expenses. As a result of Gonzalez’s fraudulent return-preparation practices, his clients paid less taxes than they owed. Gonzalez profited from his return-preparation business. Before 2019, he typically charged clients a flat fee of $500 per tax return. In 2019, he started charging clients 1% of their gross income as a fee for his services. In total, Gonzalez caused a tax loss to the IRS of at least $28 million, according to court documents. Consistent with the plea agreement, the U.S. Attorney’s Office – Tax Section, filed a civil complaint in U.S. District Court for the Central District of California, against Gonzalez. The complaint seeks to permanently enjoin Gonzalez from preparing, assisting in, directing, or supervising the preparation or filing of federal tax returns, amended tax returns, or other related documents or forms for others. The civil complaint alleges that over a period of years, Gonzalez has prepared tax returns that understate the federal income-tax liability of his customers using a scheme which has harmed the United States, the IRS, his customers, and the public. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers tips to recognize tax scams and fraud. In the past decade, the Justice Department has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the U.S. Attorney’s Office’s website and the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page . IRS Criminal Investigation investigated this matter. Assistant United States Attorney Eli A. Alcaraz of the Public Corruption and Civil Rights Section and Trial Attorney Lauren K. Pope of the Justice Department’s Tax Division prosecuted this case.


title: NH Learning Solutions Corporation Agrees to Pay $975,000 to Resolve False Claims Act Suit for Allegedly Inflating Post 9/11 GI-Bill Tuition Benefits

component: Civil Division

body_text: The Justice Department announced today that NH Learning Solutions Corp. (NHLS) has agreed to pay $975,000 to resolve allegations that it submitted false claims to the Department of Veterans Affairs (VA) for inflated educational assistance benefits under the Post-9/11 Veterans Educational Assistance Act of 2008 (Post-9/11 GI Bill). The United States filed suit against NHLS under the False Claims Act (FCA) in December 2022, in the U.S. District Court for the Eastern District of Michigan. Detroit-based NHLS provided technology-focused, non-college degree programs at locations across the Midwest and Northeast. “The Post-9/11 GI Bill was designed to support the educational needs of our veterans, not to permit schools to illegally profit at the expense of the American taxpayers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement shows that the Justice Department will hold schools accountable for violating program requirements and submitting inflated claims for payment.” “The Post-9/11 GI Bill benefits are part of our nation’s promise to the brave men and women who have served our country,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office is committed to protecting the integrity of our federal programs to ensure the assistance reaches the intended beneficiaries.” “Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority, and our investigators are working diligently in the field to ensure these programs are not exploited for financial gain,” said Special Agent in Charge Gregory Billingsley of the VA's Office of Inspector General (VA OIG)’s Central Field Office. “The VA OIG thanks the Justice Department for its efforts in this investigation.” Under the Post-9/11 GI Bill, the VA pays tuition and fees directly to qualifying schools on behalf of enrolled students. For veteran students properly enrolled in a course, the VA pays the actual net cost for tuition and fees charged by the school, after it has applied any scholarships, waivers, grants or other assistance designed to defray the cost of tuition and fees, which is known as the “last payer rule.” The rule ensures that the VA is the payer of last resort and receives the benefit of any tuition-based, financial support available to a student. The government’s amended complaint alleged that NHLS knowingly submitted false claims for inflated tuition and fees, in violation of the last payer rule, at five NHLS locations in Illinois, Ohio and Michigan. More specifically, the government alleged that NHLS repeatedly reported tuition and fees to the VA on student invoices, where it failed to deduct the tuition scholarships, grants or waivers it provided to certain veterans, thereby causing the VA to overpay NHLS for educational assistance benefits under the Post-9/11 GI-Bill for these veterans. The lawsuit is captioned United States v. NH Learning Solutions Corp. No. 2:22-cv-13045 (EDMI). The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Eastern District of Michigan, with substantive assistance from VA OIG. Senior Trial Counsel Christopher Wilson of the Civil Division and Assistant U.S. Attorney Anthony C. Gentner for the Eastern District of Michigan handled the matter. The claims asserted against defendant are allegations only. There has been no determination of liability. Settlement


title: Kissimmee Felon Pleads Guilty To Possessing Firearms

body_text: Orlando, Florida – United States Attorney Roger B. Handberg announces that Jose Luis Lugo (40, Kissimmee) has pleaded guilty to possessing firearms as a convicted felon. Lugo faces a maximum penalty of 15 years in federal prison. The sentencing hearing is scheduled for December 18, 2024. According to court records, Lugo, a registered sex offender in Florida, was convicted of felony offenses in 2004, 2005, 2014, and 2022. On two occasions in July 2023, law enforcement officers observed Lugo possess and sell multiple firearms. As a previously convicted felon, Lugo is prohibited from possessing firearms under federal law. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Adam J. Nate. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Deland Firearms Trafficking Ring Charged With Violating Federal Firearm Laws

body_text: Orlando, FL – United States Attorney Roger B. Handberg announces the charging of six defendants with violations of federal firearms laws as listed below: Name, Age, City of Residence Charges Maximum Penalties Number of Firearms Involved Angel Velazquez Delgado 34, Deland Firearms Trafficking Straw Purchasing 40 years 10+ Jesus Hernandez 32, Deland Conspiracy Firearms Trafficking Straw Purchasing Making False Statement on Firearm Transaction Record 60 years 10+ Edgar Jimenez 30, Deland Straw Purchasing 25 years 5 Jesus Paulino 27, Deland Straw Purchasing 25 years 4 Jonathan Borja 23, Deland Straw Purchasing 25 years 2 Jesus Andres 28, Deland Making a False Statement on Firearm Transaction Record 10 years 2 According to charging documents and other records filed in court, in May 2023, investigators with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating a firearms trafficking organization operating in the Middle District of Florida. The organization was comprised of at least six individuals and led by Angel Velazquez Delgado. These individuals purchased high-caliber firearms in the United States for resale to Mexican drug cartels. These cartels were and are criminal organizations engaged in the trafficking of controlled substances into the United States. The firearms trafficked by the defendants included high-caliber, armor-piercing and anti-material weapons. For example, approximately 11 of the firearms trafficked by this organization were Barrett .50 caliber rifles, which can expel a very accurate, heavy, and fast-moving projectile that defeats all individually worn body armor, can penetrate and disable vehicles, aircraft, boats, and can also defeat some types of protection provided by armored vehicles. The organization also trafficked approximately 16 FN M249S rifles, which are sold in the United States as a semi-automatic weapon but are easily converted into a machinegun. (photographs located in cellphone communications amongst defendants) It is alleged that the firearms were purchased at the request of the cartels and transported to the cartels soon after purchase. None of the defendants possess a license to sell firearms. The defendants were paid in cash, illegal narcotics, or the profits of illegal narcotics sales, to purchase each of the firearms. All firearms were purchased in Florida or Georgia and transported to Mexico. Using the eTrace Firearm Recovery Notification Program, Mexican authorities were able to confirm the presence of at least one of the trafficked firearms in Mexico. On March 22, 2023, Mexican State Police and Mexican Military Personnel were involved in a shooting with suspected cartel members in Michoacan, Mexico. Two individuals were killed during the exchange of gunfire. After the shooting, a Barrett .50 caliber rifle purchased by Jesus Hernandez on November 8, 2022, was recovered. At some point during its operation, the trafficking organization began removing the serial numbers from the firearms to avoid tracing by law enforcement. An indictment or information is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until proven guilty. “The investigation and prosecution of violent crime continues to be one of the top priorities of my District,” said U.S. Attorney Handberg. “These defendants are alleged to have trafficked high-caliber, military-grade weapons into the hands of dangerous Mexican cartel members. Our law enforcement partners worked efficiently and effectively to hold the defendants accountable for their crimes and to stop them from continuing to jeopardize public safety.” This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Customs and Border Patrol, the Volusia Bureau of Investigations and the Deland Police Department. It will be prosecuted by Assistant United States Attorneys Rachel Lyons and Noah Dorman.


title: Albany Sex Offender Pleads Guilty to Child Pornography Offenses

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Stephen Brisee a/k/a Sage Brisee, age 30, of Albany, pled guilty today to a six-count indictment charging Brisee with distributing, receiving, and possessing child pornography. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Homeland Security Investigations (HSI) Buffalo Field Office, made the announcement. Brisee admitted to receiving and distributing videos of adults subjecting girls between the ages of six months and 10 years to sexual penetration. A search of Brisee’s phone revealed Brisee to be in possession of a collection of other child pornography images. At the time of the offenses, Brisee was a registered sex offender on post-release supervision following a New York State conviction for promoting a sexual performance by a child. At sentencing scheduled for February 7, 2025, Brisee faces at least 15 years and up to 40 years in prison; a fine of up to $250,000; mandatory restitution to victims of the offenses; and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. As a result of this conviction, Brisee will also continue to be required to register as a sex offender. HSI investigated the case, which Assistant U.S. Attorney Jonathan S. Reiner is prosecuting as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc .


title: Kankakee Man Sentenced to Ten Years in Prison for Attempting to Use Mail to Obtain Fentanyl

component: USAO - Illinois, Central

body_text: Urbana, Ill. – A Kankakee man, Javan Jamar Thompson, 35, of the 100 block of Taylor Avenue has been sentenced to ten years in prison for Attempted Possession of Fentanyl with Intent to Distribute, Attempted Possession of Cocaine with Intent to Distribute, Use of a Communication Facility to Facilitate a Controlled Substance Offense, and Possession of a Firearm by a Felon. At the sentencing hearing, the government presented evidence that Thompson used the United States Mail in an attempt to obtain fentanyl and cocaine for distribution. The United States Postal Inspection Service and the Kankakee Area Metropolitan Enforcement Group (KAMEG) intercepted a parcel, destined for Thompson, that contained thousands of fentanyl laced pills and several hundred grams of cocaine. During his arrest, law enforcement located a handgun in Thompson’s vehicle. As a felon, Thompson was prohibited by law from possessing a firearm. At the hearing, U.S. District Court Judge Colin S. Bruce found that Thompson’s drug crimes were made more severe by his possession of a firearm. Judge Bruce also noted that the amount of fentanyl Thompson attempted to possess via the mail triggered an enhanced penalty of at least ten years of imprisonment. It was ordered that Thompson forfeit his legal interests in a BMW X5, a Springfield Armory XDM handgun, and $18,745 in United States Currency. Thompson pleaded guilty to all charges on June 20, 2024. The statutory penalties for Attempted Possession of Fentanyl with Intent to Distribute are at least ten years of imprisonment and up to life imprisonment, a fine of up to $10,000,000, and a term of supervised release of up to life. The statutory penalties for Attempted Possession of Cocaine with Intent to Distribute are up to 20 years of imprisonment, up to a $1,000,000 fine and a term of supervised release of up to life. The statutory penalties for Use of a Communication Facility to Facilitate a Controlled Substance Offense are a term of imprisonment of up to four years, a fine of up to $250,000 and a term of supervised release of up to one year. The statutory penalties for Possession of a Firearm by a Felon are a ten-year term of imprisonment, up to a $250,000 fine and up to three years of supervised release. “We will continue to work with our law enforcement partners to protect the community from the distribution of these deadly substances and will fully prosecute individuals attempting to utilize the U.S. mail in an illegal manner.” said U.S. Attorney Gregory K. Harris. “We remain dedicated to protecting the safety and security of the U.S. mail service.” “Postal inspectors are committed to ensuring the U.S. Postal Service is not a mechanism to distribute deadly fentanyl and other illicit narcotics,” stated Ruth Mendonça, Inspector in Charge of the Chicago Division of the United States Postal Inspection Service. “The sentence handed down in this case serves as a reminder that postal inspectors, along with our law enforcement partners, remain steadfast in our resolve to combat the flow of illicit drugs impacting our communities.” “This was a collaborative effort between the United States Postal Inspection Service, KAMEG, and the United States Attorney’s Office in continuance of our dedication to stop illicit narcotics from hitting the streets of our communities”, said KAMEG Director Clayt Wolfe. “I commend everyone involved for staying persistent in their pursuit of those involved with the trafficking of fentanyl and other illicit narcotics.” The United States Postal Inspection Service investigated the case in collaboration with KAMEG. Assistant United States Attorney William J. Lynch represented the government in the prosecution.


title: Convicted Felon Pleads Guilty to Unlawful Gun Possession

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

body_text: BIRMINGHAM, Ala. – A convicted felon pleaded guilty to illegally possessing firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson. Devon Rashard Boatman, 34, of Hoover, pleaded guilty before U.S. District Court Judge Madeline H. Haikala to being a felon in possession of a firearm. According to court records, on April 21, 2023, Birmingham Police officers responded to a domestic violence dispute between Boatman and a victim at the victim’s home. Boatman became angry and began to tussle with the victim. Boatman broke two of the victim’s televisions and slashed one of the tires on her vehicle before leaving the victim’s home on foot. Officers located Boatman a short time later. Boatman was walking when officers located him, but he immediately ran from the officers once he saw them. Officers chased Boatman and saw him throw a Glock 9mm pistol on the ground before they apprehended him. Officers recovered three firearms that Boatman was concealing on his body: a Taurus 9mm pistol, a Smith and Wesson .40 caliber pistol, and a Taurus G3c 9mm pistol. Officers also recovered a fourth firearm, which was the Glock 9mm pistol that Boatman threw on the ground while fleeing from officers. Two of the four firearms had been reported stolen. The Glock 9mm pistol had been stolen in Jefferson County, Alabama, and the Taurus G3c 9mm pistol had been stolen in Birmingham, Alabama. The maximum penalty for being a felon in possession of a firearm is 15 years in prison. ATF investigated the case, along with the Birmingham Police Department. Assistant United States Attorney Brittney Plyler is prosecuting the case.


title: Hartford Drug Trafficker Sentenced to More Than 5 Years in Federal Prison

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAHQUAN BLACKWIN, also known as “Mula,” 27, of Hartford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 66 months of imprisonment, followed by four years of supervised release, for trafficking narcotics and possessing guns. According to court documents and statements made in court, in June 2022, the Drug Enforcement Administration’s Hartford Task Force began investigating Blackwin and others for distributing fentanyl and cocaine in the Hartford area. In July and August 2022, investigators made four controlled purchases of fentanyl from Blackwin. Blackwin was arrested on a federal criminal complaint on August 17, 2022. On that date, a search of Blackwin’s Judson Street apartment revealed approximately 750 grams of fentanyl, 500 grams of cocaine, 32 grams of crack cocaine, 700 grams of psilocybin, and five kilograms of marijuana, items used to process and package narcotics, and approximately $15,000 in cash. Investigators also found and seized two loaded Polymer 80 handguns (“ghost guns”), one of which was fitted with a high-capacity magazine, and a loaded Glock 43X handgun. Blackwin has been detained since his arrest. On February 23, 2024, he pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl, 28 grams or more of cocaine base (“crack”), and 100 grams or more of heroin. The DEA Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. This case was prosecuted by Assistant U.S. Attorney Brendan Keefe with the assistance of Law Student Intern William Clancy.


title: Acting U.S. Attorney for the Middle District of Alabama Alerts Public to Charity Scams Involving Hurricane Relief Efforts

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Acting United States Attorney Kevin Davidson issued a public safety alert today advising the public to be vigilant to hurricane relief fraud attempts in the wake of Hurricane Helene and future storms. “Criminals will use any situation, including natural disasters, to profit from the kindness and generosity of others,” said Acting U.S. Attorney Davidson. “I encourage all Alabamians to be mindful as they consider participating in donation requests for disaster relief. Using the suggestions listed below will help ensure that donations reach their intended recipient and do not get diverted to those who seek only to enrich themselves.” On Sept. 26, Hurricane Helene made landfall in Florida’s Big Bend Region and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. Currently, Hurricane Milton is making its way across the Gulf of Mexico and will impact Florida’s west coast this week. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions. The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene or any other natural disaster. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of a disaster, individuals should adhere to certain guidelines, including: Make contributions directly to known organizations rather than relying on others to make the donation on your behalf. Do not be pressured into making contributions as reputable charities do not use such tactics. Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers. Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various internet-based resources that may assist in confirming whether the organization is a valid charity. Beware of organizations with copy-cat names similar to but not exactly the same as those of reputable charities. Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals. Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com. Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders. The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm . Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.


title: Justice Department Sues LA Fitness for Disability Discrimination at Its Gym and Fitness Clubs

body_text: The Justice Department today sued Fitness International LLC, also called LA Fitness, for discriminating against people with disabilities at its gym and fitness clubs. LA Fitness is the largest chain of owner-operated gym and fitness clubs in the United States, with nearly 700 locations across the country. The lawsuit , filed in the U.S. District Court for the Central District of California, alleges LA Fitness violated the Americans with Disabilities Act (ADA), which prohibits public accommodations, including gym and fitness clubs, from discriminating against people with disabilities. The ADA requires LA Fitness to give people with disabilities equal access to LA Fitness’ services and facilities, remove architectural barriers to make its facilities accessible to people with disabilities and maintain accessible features. The ADA also prohibits LA Fitness from charging extra fees to people with disabilities. Yet, as the department’s lawsuit alleges, LA Fitness gym and fitness clubs have many barriers that prevent LA Fitness members with disabilities from accessing the clubs or using the clubs’ pools and fitness equipment. Common barriers include broken pool lifts and broken elevators. Sometimes, these issues left people with mobility disabilities unable to get into clubs or pools at all. Other times, people with disabilities have gotten stuck dangling over the water on broken pool lifts, have had to call LA Fitness staff to help them get in and out of pools or have had to crawl out of pools. Even after members with disabilities complained about these issues, LA Fitness did not fix them for long periods of time. “Access to physical fitness activity is crucial for promoting the health and well-being of all Americans, including those with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For over 30 years, the ADA has prohibited gyms and fitness clubs like LA Fitness from denying patrons with disabilities the opportunity to use and enjoy facilities enjoyed by patrons without disabilities. Through this lawsuit, the Justice Department seeks to eliminate LA Fitness’s discriminatory barriers and ensure that people with disabilities have equal access to fully participate at their local LA Fitness gym and fitness clubs.” “Ensuring accessibility is key to safeguarding civil rights for all Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “Our office is committed to ensuring that people with disabilities have access to public accommodations by enforcing the protections afforded by the Americans with Disabilities Act. When we support those with disabilities, our entire community benefits.” Through the lawsuit, the department asks the court to stop LA Fitness from discriminating against people with disabilities, including by requiring LA Fitness to make its facilities and equipment accessible. The department also seeks monetary damages for people harmed by LA Fitness’ discrimination. This includes people who were directly harmed by LA Fitness’ barriers to access and broken equipment, as well people who need help to use LA Fitness’ clubs and were charged extra fees to have a friend, nurse or personal assistant help them use LA Fitness facilities. If you or someone you know had trouble accessing an LA Fitness gym or fitness club because of a disability, including due to a broken pool lift or elevator, or if you were charged an extra fee to have someone help you access LA Fitness’ equipment, please call 1-888-392-5417 (toll-free), or email Claims.LAFitness@usdoj.gov . For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov . For more information on the Civil Rights Division, please visit www.justice.gov/crt .


title: Departamento de Justicia demanda a LA Fitness por la Discriminación por Discapacidad en sus Gimnasios y Clubes de Aptitud Física

body_text: El Departamento de Justicia hoy entabló un pleito contra Fitness International LLC, también conocido como LA Fitness, por discriminación contra las personas con discapacidades en sus gimnasios y clubes de aptitud física. LA Fitness es la cadena más grande de gimnasios y clubes de aptitud física de propiedad única en los Estado Unidos, con más de 700 ubicaciones por todo el país. La demanda, que se entabló hoy en el Tribunal de Distrito de los Estados Unidos para el Distrito Central de California, alega que LA Fitness violó la Ley para Estadounidenses con Discapacidades (ADA, por sus siglas en inglés), que prohíbe que los alojamientos públicos, incluyendo los gimnasios y los clubes de aptitud física, discriminen contra las personas con discapacidades. La ADA requiere que LA Fitness provee a personas con discapacidades acceso igualitario a sus servicios y facilidades, remueve barreras arquitecturales para hacer que sus facilidades son accesibles para las personas con discapacidades y mantiene características accesibles. La ADA también prohíbe que LA Fitness cobre a las personas con discapacidades honorarios adicionales. Sin embargo, como alega la demanda del departamento, los gimnasios y clubes de aptitud física tienen muchas barreras que previenen que los miembros de LA Fitness con discapacidades accedan a los clubes o que usan las piscinas o equipamiento de aptitud física de los clubes. Las barreras comunes incluyen los elevadores para piscinas rotos y ascensores rotos. A veces, estos problemas han dejado a las personas con discapacidades incapaz de entrar en los clubes o las piscinas en absoluto. Otras veces, las personas con discapacidades se han quedado atascadas y colgantes sobre el agua en elevadores para piscina rotos. Estas personas han sido obligadas de pedir asistencia de los empleados de LA Fitness para entrar o salir de las piscinas o de salir de la piscina arrastrándose. Aún después de que los miembros con discapacidades quejaron sobre estos problemas, LA Fitness no los arregló por largas duraciones. “El acceso a actividad de aptitud física es esencial para promover la salud y el bienestar de todos Estadounidenses, incluyendo aquellos con discapacidades,” comentó la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Por más de 30 años, la ADA ha prohibido que los gimnasios y clubes de aptitud física como LA Fitness nieguen a los clientes con discapacidades la oportunidad de usar y disfrutar de facilidades disfrutadas por los clientes sin discapacidades. A través de esta demanda, el Departamento de Justicia busca eliminar las barreras discriminatorias de LA Fitness y asegurar que las personas con discapacidades tienen acceso igualitario para participar enteramente en sus gimnasios y clubes de aptitud física locales de LA Fitness.” “Asegurar la accesibilidad es clave para salvaguardar los derechos civiles para todos Estadounidenses,” comentó el Fiscal de Los Estados Unidos Martin Estrada para el Distrito Central de California. “Nuestra oficina se dedica a asegurar que las personas con discapacidades tengan acceso a los alojamientos públicos a través de enforzar las protecciones ofrecidas por la Ley para los Estadounidenses con Discapacidades. Cuando apoyamos a las personas con discapacidades, nuestra comunidad entera se beneficia.” A través de la demanda, el departamento pide al corte detener que LA Fitness discrimine contra las personas con discapacidades, incluyendo a través de requerir que LA Fitness hagan sus facilidades y equipamiento accesibles. El departamento también busca daños monetarios para las personas con discapacidades que resultaron heridas por la discriminación de LA Fitness. Esto incluye las personas que resultaron heridas directamente por las barreras de acceso y equipamiento roto de LA Fitness, además para las personas que necesitan ayuda para usar los clubes de LA Fitness y que han sido cobrados por honorarios adicionales para tener un amigo, enfermero o asistente personal ayudarlos usar las facilidades de LA Fitness. Si usted o alguien que conoce experimentó problemas por acceder a un gimnasio o club de aptitud física de LA Fitness por razón de discapacidad, incluyendo debido a un elevador de piscina o ascensor roto, o si se le cobró un honorario adicional para tener a alguien ayudarle con acceder al equipamiento de LA Fitness, por favor llame a la línea gratuita 1-888-392-5417 o mande un correo electrónico a Claims.LAFitness@usdoj.gov . Para conocer más sobre la ADA, por favor llame a La Línea de Información de la ADA gratuita a 1-800-514-0301 (TDD 800-514-0383) o visite www.ada.gov . Para conocer más sobre la División de Derechos Civiles, por favor visite www.justice.gov/crt .


title: Canadian national who used false names to illegally buy firearms in Montana for transportation back to Canada sentenced to 18 months in prison

body_text: MISSOULA — A Canadian national was sentenced today to 18 months in prison and fined $10,000 for using fake names to buy firearms in several Montana cities to take back to Canada to sell, U.S. Attorney Jesse Laslovich said. The defendant, Haptei John Kozak, 27, of Kelowna, British Columbia, Canada, pleaded guilty in May to four counts of false statements during firearms transactions. U.S. District Judge Donald W. Molloy presided. The court also imposed three years of supervised release and ordered the forfeiture of 12 firearms. “Black market firearms smugglers like Kozak contribute to the epidemic of gun violence nationally and internationally because these weapons often end up in the hands of criminals. As this case shows, we will work aggressively with our national and international law enforcement partners to hold accountable those who attempt to traffic firearms across our border,” U.S. Attorney Laslovich said. "Gun crime has no boundaries, making our efforts to uncover and dismantle illegal firearms trafficking channels crucial," said ATF Special Agent in Charge Brent Beavers. "Traffickers who move firearms from lawful commerce into the hands of violent offenders are directly contributing to the cycle of violence at our borders and beyond. We are grateful for the hard work from our partners at the US Customs and Border Patrol, Homeland Security Investigations, Royal Canadian Mounted Police, and the US Attorney’s Office District of Montana for their partnership in this investigation and mutual pursuit of justice.” "Today, justice has been served. The courts have delivered a firm and unwavering message to those who seek to profit from violence and chaos,” said HSI acting Special Agent in Charge Tim Lenzen. “Let this be a clear warning: we will not tolerate those who fuel crime through the black market. We will find you, you will be prosecuted, and justice will prevail." The government alleged in court documents that an investigation by the ATF determined that Kozak, aka Tyler John Cossack, had purchased 12 pistols, mostly 9mm pistols, in four multiple-sale purchases from Sept. 9, 2023 through Oct. 16, 2023 in Montana. Kozak is a Canadian citizen with a Canadian passport. The investigation found that Kozak used the name Tyler John Cossack to purchase the firearms and used a falsified Montana’s driver’s license with a false date of birth, a false Missoula address and a false driver’s license number. Kozak provided false information to buy guns in Kalispell, Butte, Helena and Missoula, purchasing 12 firearms in 45 days. Kozak was arrested in March 2024 and had firearms that he recently purchased in his pickup truck. A review of his text messages and other evidence indicted that Kozak was purchasing the firearms in the United States and then transporting them back to Canada to sell. The U.S. Attorney’s Office prosecuted the case. The ATF, Homeland Security Investigations and the Royal Canadian Mounted Police conducted the investigation. XXX


title: Leader of an International Romance Scam Conspiracy Sentenced to More Than Ten Years in Federal Prison

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – An Atlanta man described in court documents as an “unrepentant con man” who played a leading role in a romance scam and money laundering conspiracy involving perpetrators from across the United States and overseas locations including Nigeria, that targeted and bilked elder widows and divorcees in Rhode Island and elsewhere out of millions of dollars was sentenced today to more than ten years in federal prison, announced United States Attorney Zachary A. Cunha. Wisdom Oghenekaro Onyobeno, 44, and others, created false personas and utilized a variety of online apps and games, such as Words with Friends, or dating applications to befriend and target potential victims. Onyobeno and his co-conspirators would then use fraudulent representations and emotional appeals to gain their victims’ trust, in order to convince those victims to send money to help with a purported personal crisis or urgent financial situation. In some instances, conspirators falsely claimed to be military members stationed overseas, who needed funds to send their belongings home or to travel back to the U.S.; in other cases, they claimed to be U.S. contractors stuck on oil rigs in the Gulf of Mexico. Victims were instructed to mail checks, money orders, or cashier’s checks to post office boxes or to wire money to bank accounts managed by members of the conspiracy, including Onyobeno himself. In many cases, victims were convinced to send more money, on multiple occasions, based on conspirators’ made-up claims of unexpected and urgent circumstances. In yet other instances, conspirators would pose as government officials and tell victims that additional money was needed to deliver parcels that had been sent from overseas. Once these funds were sent by victims, the conspirators laundered the funds to conceal their origin. As part of the money laundering conspiracy, Onyobeno and others created business entities and bank accounts into which ill-gotten victim funds were deposited, and later withdrawn. According to information presented to the court, victims are known to have lost more than $5.8 million dollars to members of this conspiracy. “To those who believe that they can help themselves to the hard-earned savings of Rhode Islanders through deception and fraud, wherever you are, know that we will find you and bring you to justice,” said U.S. Attorney Zachary A. Cunha. “And to members of the public– I implore you- be skeptical of requests for funds from anyone you don’t know well, and take steps to protect yourself.” “Wisdom Onyobeno preyed on the vulnerable causing not only significant financial losses but unmeasurable emotional damage,” said Ketty D. Larco-Ward, Inspector in Charge, U.S. Postal Inspection Service, Boston Division. “Postal Inspectors, working with our partners, will continue to target these predators and bring them to justice.” Onyobeno pleaded guilty on April 28, 2023, to charges of conspiracy to commit wire fraud and money laundering, and wire fraud. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 121 months of incarceration to be followed by three years of federal supervised release. Restitution will be determined by the court at a later date. A co-defendant in this matter, Dominique Golden, is currently serving a term of incarceration of 78 months in federal prison . The case was prosecuted by Assistant United States Attorneys Denise M. Barton and John P. McAdams. The matter was investigated by the U.S. Postal Inspection Service, with the assistance of the Federal Bureau of Investigation, U.S. Department of Labor-Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration in Atlanta. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available by calling the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, http://www.elderjustice.gov . ###


title: Marion County Little League Coach Indicted For Attempted Enticement Of A Minor To Engage In Sexual Activity

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Joseph Rocco Quaranta (48, Dunnellon) with attempted enticement of a minor to engage in sexual activity. If convicted, Quaranta faces a minimum mandatory penalty of 10 years, up to life, in federal prison. Quaranta is currently detained pending the resolution of his case. According to court documents, on July 25, 2024, an undercover detective from the Marion County Sheriff’s Office posed online as a 13-year-old girl. Quaranta contacted the undercover detective and, after learning the minor’s age, engaged in a sexually explicit conversation. Quaranta arranged to meet the minor at a predetermined location in Marion County to engage in sexual activity. He arrived at the meeting location and was arrested shortly thereafter by law enforcement. After his arrest, Quaranta told deputies that he was volunteering as a local Little League baseball coach. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Marion County Sheriff’s Office, the Ocala Police Department, the Florida Department of Law Enforcement, the Chiefland Police Department, and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg. The 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 Attorney’s 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.justice.gov/psc .


title: Bob Dean Jr. and Affiliated Corporate Entities Agree to $8.2M Consent Judgment to Resolve Allegations of Financial Misconduct Stemming from Evacuation of Nursing Homes During Hurricane Ida

body_text: Bob Dean Jr. and several companies that he owned and operated have agreed to an $8.2 million consent judgment to resolve allegations that they violated the National Housing Act of 1934 (NHA), by misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA), are Maison De’Ville Nursing Home in Houma; Maison De’Ville Nursing Home in Harvey; Maison Orleans Healthcare in New Orleans; and West Jefferson Health Care Center in Harvey. The FHA, part of the Department of Housing and Urban Development (HUD), provides mortgage insurance on loans that cover residential care facilities, such as nursing homes, pursuant to the NHA. To encourage lenders to make loans to such facilities, FHA mortgage insurance provides lenders with protection against losses that result from borrowers defaulting on their mortgage loans. To obtain such FHA-insured loans, loan recipients must enter into regulatory agreements with the FHA that provide, among other requirements, that the assets and income of an FHA-insured nursing home may only be spent on goods and services that are reasonable and necessary to the operation of the nursing home. The NHA permits the United States to recover twice the amount of any assets and income of FHA-insured nursing homes that were improperly distributed or misspent. In 2023, the government filed a complaint against Dean and his corporate entities alleging that they misspent the nursing homes’ assets and income. The United States alleged that in the five years leading up to Hurricane Ida, Dean funneled money that should have been used to prepare an evacuation site for nursing home residents to his personal bank accounts, leaving his nursing homes — and, more importantly, the nursing homes’ residents — unprepared for a hurricane. As a result, when Hurricane Ida made landfall in August 2021, the residents of Dean’s nursing homes had to ride out the storm in an overcrowded and ill-prepared industrial warehouse Dean owned through a corporate entity. The United States alleged that at Dean’s evacuation center, his nursing homes’ residents languished in squalor and did not receive adequate care, leading to the Louisiana Department of Health evacuating the nursing home residents from Dean’s warehouse and revoking Dean’s nursing homes’ licenses. The United States further alleged that, following the hurricane, Dean did not use the homes’ income and assets solely to operate or maintain the nursing homes, but instead to purchase personal goods and services, including antiques, firearms and cars. “This settlement demonstrates the department’s continuing commitment to holding accountable those who put their own financial gain over the needs of our nation’s seniors,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to take action to protect the integrity of federal programs designed to ensure that nursing home residents, who are among our most vulnerable citizens, receive appropriate care.” “As the residents of Louisiana well know, hurricanes and natural disasters can devastate people’s lives,” said U.S. Attorney Ronald C. Gathe Jr for the Middle District of Louisiana. “Nursing home operators like Mr. Dean have an obligation to protect their residents during such events, particularly if they are going to rely on federal programs to support or sustain their businesses. This settlement will ensure that those individuals charged with caring for our community’s most vulnerable residents take seriously their duty to have proper safeguards and plans in place to avoid tragedies like the one we saw in Independence, Louisiana, after Hurricane Ida . ” “Nursing home providers have obligations to protect the health, safety, and welfare of residents entrusted to their care,” said HUD General Counsel Damon Smith. “Owners of FHA-insured nursing homes should be on notice that we will hold them accountable when we learn of allegations that they have failed to meet those obligations.” “By the time Hurricane Ida bore down on the vulnerable nursing home residents at properties operated by Mr. Dean, he illegally skimmed funding from those facilities and failed to maintain sanitation and adequately equip the warehouse he designated as the evacuation site,” said HUD Inspector General Rae Oliver Davis. “He unfairly enriched himself while residents under his charge endured horrid conditions including insufficient food and medical care. HUD OIG will continue to work with our law enforcement and prosecutorial partners to hold accountable those who misappropriate funds at the expense of vulnerable populations.” The Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Louisiana handled the case, with substantial assistance from HUD and HUD’s Office of Inspector General. Trial Attorneys Christopher Reimer and Samuel Robins of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Davis Rhorer Jr. and Chase Zachary for the Middle District of Louisiana handled the matter. The United States’ complaint stemmed from an investigation that the Justice Department initiated as part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at www.justice.gov/elderjustice. The claims settled by this agreement are allegations only. There has been no determination of liability.


title: Insurance Broker Sentenced to Federal Prison for Fabricating Applications and Payment Forms for Unauthorized End-of-Life Policies in Order to Collect Commission Payments

component: Federal Bureau of Investigation (FBI)

body_text: PROVIDENCE, RI – A North Attleboro, MA, insurance broker who collected nearly $137,000 dollars in sales commissions by submitting fabricated insurance applications for end-of-life insurance policies in clients’ names without their knowledge, and used those clients’ personal and banking information to pay for those policies, was sentenced today to federal prison, announced United States Attorney Zachary A. Cunha. Bruno Francis Ragusa, 53, pleaded guilty on June 20, 2024, to a charge of wire fraud. He was sentenced today by U.S. District Court Judge William E. Smith to a term of incarceration of eighteen months in federal prison to be followed by two years of federal supervised release. At the time of his guilty plea, Ragusa admitted that he forged clients’ electronic signatures on more than fifty insurance policy applications and directed that all policy correspondence be sent directly to him and not to the clients. He also admitted that he used clients’ bank account information to cause payment for the policies to be directly wired from their bank accounts without their knowledge, and that he failed to advise his clients of the fact that policies had been purchased in their names. As a result of his criminal conduct, Ragusa’s collected $136,956.56 in insurance sales commissions that he was not entitled to receive. At the government’s request, Ragusa has been ordered by the court to pay restitution in the amount of $70,379.47 to the insurance company, representing the balance of commissions paid to Ragusa that have yet to be recouped. On learning of the fraud, the insurance company repaid individual victims whose funds were used without their permission. The case was prosecuted by Assistant United States Attorney Milind M. Shah. The matter was investigated by the FBI. United States Attorney Cunha thanks the United States Attorney’s Office for the District of Massachusetts, the North Attleboro Police Department, and the Rhode Island Department of Business Regulation for their assistance in the investigation. ### Note: This is an unattended email. Do not reply to this message. If you have questions, please use the contacts in the message.


title: Department of Justice Awards City of Atlanta with Grant to Fight Violent Crime

component: USAO - Georgia, Northern

body_text: ATLANTA – The Department of Justice announced it has awarded nearly $700,000 to the City of Atlanta in support of the Atlanta Police Department’s (APD) initiative to establish an Atlanta Crime Gun Intelligence Center to address violent crime. “Reducing violent crime is a top priority for the Department of Justice, our office, and our local, state, and federal law enforcement partners,” said U.S. Attorney Ryan K. Buchanan. “Gun violence in particular remains a pervasive threat to our communities. This grant to the City of Atlanta will strengthen our ongoing collaborative efforts with the Atlanta Police Department and reflects the long-standing and successful partnerships our offices have forged to reduce and prevent violent crime.” “The creation of the Atlanta Crime Gun Intelligence Center will significantly enhance our ability to combat gun violence in the metro-Atlanta area,” said Assistant Special Agent in Charge Alicia D. Jones, ATF. “ This collaboration will bring advanced forensic tools and innovative strategies to the forefront of our efforts, allowing us to swiftly identify and apprehend violent offenders.” “We are profoundly grateful for the grant that will establish the Atlanta Crime Gun Intelligence Center. This initiative will equip the Atlanta Police Department with advanced technology and critical resources to combat gun violence, disrupt drug trafficking, and dismantle gang activity,” said Atlanta Police Chief Darin Schierbaum more effectively. “Through innovation and strategic partnerships, we are committed to enhancing the safety and security of our communities.” This grant awards $699,539 in funding to support APD’s initiative to establish an Atlanta Crime Gun Intelligence Center (ACGIC) to better respond to gun violence in the metro-Atlanta area. Specifically, this initiative enables the creation of a standalone ACGIC forensic ballistic lab for prioritized and swift processing of ballistic evidence in gang and repeat offender involved cases and expands the use of National Integrated Ballistic Information Network (NIBIN) technology by other law enforcement jurisdictions in conjunction with APD’s program. APD will also partner with Georgia State University to develop, implement, and monitor agreed upon performance measures and conduct process and outcome evaluations of ACGIC efforts. This award is the first in the state of Georgia and is made through the Local Law Enforcement Crime Gun Intelligence Center Integration (CGIC) Initiative, which is administered by Bureau of Justice Assistance in partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The grant provides funding to state and local government organizations to equip them with the resources needed to reduce violent crime and the illegal use of firearms within their jurisdictions by enabling them to integrate with their local ATF Crime Gun Intelligence Centers (CGICs). This award is also made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page . The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and SMART Office – can be found at www.ojp.gov . For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Family members sent to prison for sex trafficking women in cantina backroom

component: USAO - Texas, Southern

body_text: HOUSTON – A Mexican national illegally residing in Houston and a relative have been sentenced following their convictions of several sex trafficking crimes, announced U.S. Attorney Alamdar S. Hamdani. Maria Botello-Morales, 57, and her son Edgar Adrian Botello, 31, Houston, pleaded guilty in 2023. U.S. District Judge Andrew S. Hanen has now imposed a 280-month-term of imprisonment for Botello-Morales, while Botello received a total of 180 months. Restitution will be determined at a later date. Not a U.S. citizen, Botello-Morales is expected to face removal proceedings following her imprisonment, while Botello will serve 15 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Both will also be ordered to register as sex offenders. “Cantina cases shine a light on a unique form of trafficking where mostly undocumented women are sexually exploited for the financial benefit of the traffickers,” said Hamdani. “These individuals stole the American dream from the victims. This form of trafficking takes advantage of the fear these victims live in and we are grateful for the hard work of the Texas Alcohol and Beverage Commission (TABC) and Homeland Security Investigations (HSI) in bringing them justice.” “TABC is proud to work with the Office of the U.S. Attorney and our other partners in the effort to end human trafficking in Texas,” said TABC Chairman Kevin J. Lilly. “We join our fellow Texans in denouncing this heinous crime and reaffirming our pledge to help free the victims of human trafficking.” At the time of the pleas, Botello-Morales admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as sex trafficking of a minor. Botello pleaded guilty to conspiracy to commit sex trafficking with force, fraud or coercion, two counts of sex trafficking of adults as well as possession of child pornography. In 2007, Botello-Morales recruited a minor female from Mexico. She caused the minor to engage in commercial sex and took payment directly from the commercial sex buyers. Botello-Morales ran Puerto Algre with Botello and others from 2015 to 2020. Puerto Algre was a cantina where numerous females were forced to engage in commercial sex in backrooms built specifically for that purpose. Botello-Morales, Botello and others threatened and intimidated these victims with violence to manipulate them into engaging in commercial sex for their own financial benefits. The victims reported they started at the bar as waitresses. However, Botello-Morales soon told them they had to engage in commercial sex. If they refused, she threatened them with violence. Some witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms through a door and hidden from view of the bar. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. On the way out, they had to turn the money over to whoever was guarding the room. During the investigation, one victim also explained when she refused to come to work, Botello-Morales sent someone to physically assault her. The victims explained that Botello, who regularly carried a weapon, was the enforcer. He would also pass out the condoms and collect the money. During the execution of a search warrant at the home Botello-Morales and Botello shared, law enforcement found several loaded firearms in his room along with a computer containing child pornography. Another co-conspirator, Esteban Toribio, 65, Houston, pleaded guilty June 17 and held the liquor license for the bar. Toribio reported the conduct to authorities in an attempt to help him gain control of the cantina. Also convicted in relation to the conspiracy was Arian Botello, 26, the nephew of Botello-Morales. Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. TABC and HSI conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack prosecuted the case. HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners. Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.


title: York County Judge Indicted For Fraud, Tampering With A Witness, And Obstruction Of Justice

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven Stambaugh, age 61, of York, Pennsylvania, was indicted by a federal grand jury in a 31-count indictment with wire and mail fraud, as well as witness tampering and obstruction of justice. According to United States Attorney Gerard M. Karam, the indictment charges Stambaugh with twenty-six counts of wire fraud, two counts of mail fraud, two counts of tampering with a witness, and one count of obstruction of justice. It is alleged that from March 19, 2020 to on or about May 18, 2020, Stambaugh devised a scheme to defraud the Commonwealth of Pennsylvania to obtain money through materially false and fraudulent pretenses, representations, and promises. The indictment charges that Stambaugh instructed his employees to file and collect unemployment compensation benefits with the Commonwealth of Pennsylvania during the COVID-19 pandemic, while at the same time directing and requiring his employees to continue working for Stambaugh Law, P.C. In furtherance of the scheme to defraud, it is alleged that Stambaugh caused the use of interstate wire communications, as well as the delivery of mail matter via interstate mail deliveries. The indictment further alleges that beginning in April 2021 through November 2022, Stambaugh attempted to intimidate and corruptly persuade a government witness to offer false testimony before a federal grand jury and to lie to federal law enforcement officers, and also attempted to obstruct justice while serving as a judicial officer for the Pennsylvania Court of Common Pleas for York County. “An important part of the mission of the Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General. "As alleged, the defendant orchestrated a scheme that defrauded the Commonwealth of unemployment benefits designed to provide relief amid the COVID-19 pandemic, and to further this fraud, sought to mislead federal investigators," said Wayne A. Jacobs, special agent in charge of FBI Philadelphia. "The FBI will continue to work alongside partners to protect the integrity of these programs, investigate allegations of fraud, and bring those who engage in these schemes to justice." The charges stem from a joint investigation involving the U.S. Department of Labor – Office of Inspector General (USDOL-OIG), and the Federal Bureau of Investigation (FBI) – Harrisburg. Assistant United States Attorneys Michelle Olshefski and Sean Camoni are prosecuting the case. The maximum penalty under federal law for mail/wire fraud and witness tampering is 20 years of imprisonment. The maximum penalty for obstruction of justice is 10 years of imprisonment. A term of supervised release follows any term of imprisonment and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Pharmaceutical Executive Pleads Guilty to Insider Trading

body_text: BOSTON – A former executive of a global pharmaceutical company pleaded guilty today in federal in Boston to earning more than $250,000 by trading on material non-public information. Dishant Gupta, 40, of Hillsborough, N.J., pleaded guilty to one count of securities fraud. U.S. District Court Judge Julia E. Kobick scheduled sentencing for Jan. 9, 2025. Gupta was charged by Information in September 2024. Gupta worked as the Director of Strategy and Operations in the Boston office of a global pharmaceutical company (Company A). In the spring of 2022, during the course of his employment at Company A, Gupta learned that Company A was negotiating to acquire certain assets of a smaller pharmaceutical company based in Boston (Company B), including its leading cancer drug, and that Company A later agreed to acquire Company B outright. While in possession of this material non-public information, and in violation of his fiduciary duties to Company A, Gupta acquired shares of Company B in his own and his wife’s brokerage accounts – in an effort to profit from the eventual public announcement of the transaction. Gupta purchased more than 300,000 shares of Company B over approximately two and a half months. Gupta then sold all the shares he had acquired after Company A announced the acquisition of Company B, earning more than $250,000. The charge of securities fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Securities and Exchange Commission filed a civil complaint against Gupta alleging violations of the securities laws. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement. Assistant U.S. Attorney Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.


title: Justice Department Sues LA Fitness for Alleged Disability Discrimination at Its Gym and Fitness Clubs

body_text: LOS ANGELES – The Justice Department today sued Irvine-based Fitness International LLC, which does business as LA Fitness, for discriminating against people with disabilities at its gym and fitness clubs. LA Fitness is the largest chain of owner-operated gym and fitness clubs in the United States, with nearly 700 locations across the country. The lawsuit alleges LA Fitness violated the Americans with Disabilities Act (ADA), which prohibits public accommodations, including gym and fitness clubs, from discriminating against people with disabilities. The ADA requires LA Fitness to give people with disabilities equal access to LA Fitness’s services and facilities, remove architectural barriers to make its facilities accessible to people with disabilities and maintain accessible features. The ADA also prohibits LA Fitness from charging extra fees to people with disabilities. “Ensuring accessibility is key to safeguarding civil rights for all Americans,” said United States Attorney Martin Estrada. “Our office is committed to ensuring that people with disabilities have access to public accommodations by enforcing the protections afforded by the Americans with Disabilities Act. When we support those with disabilities, our entire community benefits.” “Access to physical fitness activity is crucial for promoting the health and well-being of all individuals, including those with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For over 30 years, the ADA has prohibited gyms and fitness clubs like LA Fitness from denying patrons with disabilities the opportunity to use and enjoy facilities enjoyed by patrons without disabilities. Through this lawsuit, the department seeks to remedy LA Fitness’s discriminatory actions and ensure that patrons with disabilities have equal access to fully participate at their local LA Fitness gym and fitness clubs.” Through the lawsuit, the United States asks the court to stop LA Fitness from discriminating against people with disabilities, including by requiring LA Fitness to make its facilities and equipment accessible. The lawsuit also seeks money damages for people harmed by LA Fitness’s discrimination. This includes people who were directly harmed by LA Fitness’s barriers to access and broken equipment, as well people who need help to use LA Fitness’s clubs and were charged extra fees to have a friend, nurse or personal assistant help them use LA fitness facilities. If you or someone you know had trouble accessing an LA Fitness gym or fitness club because of a disability, including due to a broken pool lift or elevator, or if you were charged an extra fee to have someone help you access LA Fitness’s equipment, please call 1-888-392-5417 (toll-free), or email Claims.LAFitness@usdoj.gov . For more information on the ADA, please call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov . Assistant United States Attorneys Matthew Barragan and Margaret Chen of the Civil Division’s Civil Rights Section and attorneys from the Disability Rights Section of the Justice Department’s Civil Rights Division are handling this case. Information about the Civil Rights Section in the Civil Division of the United States Attorney’s Office is available on our website . Members of the public may report possible civil rights violations to our office via email to USACAC.CV-CivilRights@usdoj.gov .