title: Ohio Man Admits Role in $24 Million Health Care Fraud and Kickback Scheme

body_text: NEWARK, N.J. – An Ohio man and owner of several marketing companies today admitted his role in conspiracies to commit health care fraud and to pay and receive illegal kickbacks, Attorney for the United States Vikas Khanna announced. Mark Belter, 49, of North Ridgeville, Ohio, pleaded guilty via videoconference before U.S. District Judge Esther Salas to an information charging him with conspiracy to violate the Federal Anti-Kickback statute and conspiracy to commit health care fraud. According to documents filed in this case and statements made in court: From June 2017 through September 2020, Belter participated in a scheme with pharmacies, telemedicine companies, and doctors to submit false claims to health care benefit programs, including Medicare and TRICARE, based on a circular scheme of kickbacks and bribes. Belter controlled several marketing companies through which he and his conspirators identified Medicare and TRICARE beneficiaries to target for expensive drugs. The marketing companies called beneficiaries to pressure them to agree to try expensive medications, regardless of medical necessity. Belter and others would deliberately conceal the name of the prescribing doctor – whom the beneficiary had never met before – to increase the likelihood that the beneficiary would agree to accept the medications. Portions of the telephone calls were recorded. Belter and his companies then paid kickbacks to telemedicine companies, which in turn paid kickbacks to doctors, to obtain prescriptions for the medications. Belter transmitted to the telemedicine companies the beneficiaries’ medical information, the telephone call recording, and pre-marked prescription pads for particular drugs that would yield exorbitant reimbursements. Belter, the marketing companies, and the pharmacies with which they had relationships chose particular drugs for the prescriptions largely based on reimbursement amount and not medical need. The doctors paid by the telemedicine companies signed the prescriptions regardless of medical necessity, often without ever speaking to the patient. Belter and his conspirators then directed the prescriptions to pharmacies with which Belter had additional kickback arrangements. The pharmacies submitted claims for reimbursement to health care benefit programs including Medicare and TRICARE, and thereafter sent a portion of the proceeds to Belter and his companies as payment for the prescriptions generated through the conspiracy. In total, Belter and his conspirators caused the submission of false and fraudulent claims to health care benefit programs totaling in excess of $24 million of prescription drugs. Belter and his companies received kickbacks and bribes totaling more than $6 million in exchange for prescription referrals to a pharmacy located in New Jersey. The conspiracy charges are each punishable by a maximum of five years in prison, along with fines, restitution, and penalties as to both counts. Both charges are punishable by a fine of $250,000, or twice the gross gain or loss from the offense. Sentencing is scheduled for Sept. 27, 2023. Attorney for the United States Khanna credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, and U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Barbara Ward, Senior Trial Counsel of the Asset Recovery and Money Laundering Unit, in Newark. belter.information.pdf


title: American Airlines Mechanic Convicted of Conspiring to Import Cocaine Bricks in Compartment Under Cockpit of Jetliner

component: USAO - New York, Eastern

body_text: UPDATE The defendant’s conviction for the conduct described in the press release below was vacated by the United States Court of Appeals for the Second Circuit on January 23, 2026. See 20-CR-219 (DLI) ECF No. 169. Today, a federal jury in Brooklyn convicted Paul Belloisi, an American Airlines mechanic at John F. Kennedy International Airport (JFK Airport), of all three counts of an indictment charging him with conspiring to possess cocaine, conspiring to import cocaine, and importing cocaine. The verdict followed a one-week trial before United States District Judge Dora L. Irizarry. When sentenced, Belloisi faces up to 20 years in prison. Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), and Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP), announced the verdict. “As proven, the defendant was caught red-handed trying to facilitate the smuggling of a large stash of cocaine hidden in an electronics compartment of the aircraft.” stated United States Attorney Peace. “This corrupt airline mechanic not only abused his position of trust and undermined the security of a vital border crossing in our district, but was also willing to potentially endanger the safety of travelers as well as the community.” “Not only did Belloisi violate the law by conspiring to traffic cocaine into the United States, but he used his trusted position as an American Airlines mechanic at JFK International Airport to facilitate his criminal activity,” said HSI New York Special Agent in Charge Ivan J. Arvelo. “Cocaine addiction is a serious problem throughout the country due in large part to the traffickers who place profit above the safety of others. HSI is committed to working with law enforcement partners to identify, arrest and prosecute those responsible for importing illicit drugs into the United States.” “This case serves as a great example of collaborative law enforcement efforts to combat international narcotics trafficking conspirators. U.S. Customs and Border Protection thanks our partners at HSI and U.S. Immigration and Customs Enforcement for their continued cooperation,” stated CBP Director of Field Operations Russo. As proven at trial, on February 4, 2020, American Airlines flight 1349 arrived at JFK Airport’s Terminal 8 from Montego Bay, Jamaica. The aircraft was selected for a routine search by CBP officers from the JFK Airport Anti-Terrorism Contraband Enforcement Team. The officers found 10 bricks of cocaine weighing 25.56 pounds—hidden inside an electronics compartment on the underside of the cockpit. The cocaine was replaced with fake bricks and sprayed with a substance that glows when illuminated with a special light. CBP officers and HSI special agents placed the aircraft under surveillance from a distance and shortly before it was scheduled to take off for its next flight, they observed Belloisi drive up and pull himself inside the electronics compartment. Belloisi was confronted by law enforcement who observed his gloves glowing under the black light indicating he had handled the fake bricks. Belloisi was also carrying an empty tool bag and the lining of his jacket had cutouts sufficiently large enough to hold the bricks. The cocaine found in the aircraft had a street value of approximately $285,000 to $320,000. The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Robert Pollack and Margaret Schierberl are in charge of the prosecution with the assistance of Paralegal Specialist Sophia Cronin. The Defendant : PAUL BELLOISI Age: 55 Hicksville, New York E.D.N.Y. Docket No. 20-CR-219 (DLI)


title: Owner of Tukwila, Washington Thai restaurant sentenced to 18 months in prison for tax fraud totaling nearly $1 million

component: USAO - Washington, Western

body_text: Seattle – The owner of ‘Simply Thai’ restaurant in Tukwila, Washington, was sentenced today in U.S. District Court in Seattle to 18 months in prison for willful failure to pay over taxes, announced U.S. Attorney Nick Brown. Keovilayvanh Rinthalukay, 62, pleaded guilty in February 2023, admitting that between 2015 and 2019 he withheld Medicare, Social Security, and federal income taxes from his employees’ paychecks, but instead of paying the taxes to the government, he pocketed the money for his own benefit. At the sentencing hearing, U.S. District Judge James L. Robart said the amount withheld “is not a small number – it’s a lot of money. And the defendant didn’t find it necessary to pay his taxes for a number of years – it shows no respect for the law.” “The failure to turn over payroll taxes is simply theft from employees who trust their employer to make those payments for their future well-being,” said U.S. Attorney Nick Brown. “In this case, Mr. Rinthalukay has committed to aggressively pay back more than $926,000 in tax debt. The prison sentence brings home the need to do right by workers and their future Social Security, Medicare, and federal unemployment benefits.” According to records filed in the case, between 2015 and 2019, the Tukwila restaurant employed dozens of people. Over that same period the restaurant failed to pay over the taxes withheld from paychecks, as well as the employer’s share of the payroll and federal unemployment taxes. In all, Rinthalukay failed to pay at least $926,092. Instead, he used the money for his personal expenses including buying property, paying private school tuition for his children, and buying a motorcycle. Judge Robart noted at today’s hearing that Rinthalukay currently owns two homes in Western Washington that together are valued at well over $2 million. As relevant conduct, the government noted that Rinthalukay has not paid his personal federal income taxes since 1998. The IRS is still reviewing that matter. Prosecutors described Rinthalukay’s history of misconduct in their sentencing memo. “Rinthalukay has a long history of disregard for his tax obligations, both personally and as a business owner. The criminal conduct here is not some momentary aberration but rather part of a decades-long pattern. And his conduct harmed not only the United States Treasury, but also the employees at his restaurant. Employees risk losing credit with the Social Security system when their payroll taxes are not turned over to the IRS,” Assistant U.S. Attorney Philip Kopczynski wrote in the sentencing memo. “Restaurant employees deal with a lot: long hours, irate customers, and exhausting work. One thing they shouldn’t have to worry about – their employer stealing from them,” said Acting Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Mr. Rinthalukay has owned and operated a restaurant for a long time and knows how important it is for his staff to provide good customer service. Today’s sentence is a strong reminder that business owners must play by their own rules and provide good service to their employees. Remitting tax withholdings and not stealing from their workers is a solid start.” As of today, Rinthalukay has paid $550,000 of the taxes owed. The judgment imposed by Judge Robart will require prompt repayment of the remainder, including having Rinthalukay liquidate assets if needed. The case was investigated by the Internal Revenue Service Criminal Investigation. The case was prosecuted by Assistant United States Attorney Philip Kopczynski.


title: Washington man charged for International District drive-by shooting and possession of drugs

body_text: Seattle – A 48-year-old man with ties to Seattle was charged federally with unlawful possession of a firearm and other offenses after he was arrested for a drive-by shooting in Seattle’s International District, announced US Attorney Nick Brown. Phuong Nguyen Le, appeared today on the indictment. In February 2023 Le was allegedly found with fentanyl, heroin, and cocaine base. Le has been in custody in King County and today was brought over for arraignment on the federal charges. On February 24, 2023, Seattle Police officers responded to reports of shots fired at the intersection of 10 th Avenue South and South King Street in Seattle. Witnesses at the scene reported a man in a white Mercedes fired a handgun in the air multiple times at the intersection. SPD officers then located the vehicle nearby and found Phuong Nguyen Le driving, with his girlfriend in the passenger seat. Le was the owner of the vehicle. Le ultimately gave consent to search the vehicle. SPD officers seized the following items: a Springfield Armory XD-9 9mm caliber pistol, bearing serial number BY348001, with a round of ammunition in the chamber and a partially loaded magazine; an additional Springfield Armory 9mm caliber magazine loaded with ammunition; two spent bullet shell casings; approximately 83 grams of heroin; approximately 135 grams of cocaine; approximately 194 grams of suspected fentanyl powder; approximately 350 pills suspected to contain fentanyl; multiple cloth zipper bags containing approximately $4,400 in mixed denominations; various baggies; large amounts of handwritten names and phone numbers written on various documents; A notebook containing names. In April of 2012, Le was convicted of distribution of cocaine base in U.S. District Court for the Western District of Washington. In September of 2020, Le was sentenced to two years in prison for illegal possession of a firearm and illegal possession of drugs. Unlawful possession of a firearm is punishable by up to 15 years imprisonment. Possession of a controlled substance with intent to distribute is punishable by up to 40 years imprisonment. Carrying a firearm during and in relation to a drug trafficking crime is punishable by up to life in imprisonment. The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by the Seattle Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant United States Attorney Brian Wynne.


title: Two Men, Including Buffalo Police Detective, Charged For Purchases Made On Illicit Online Marketplace

component: USAO - New York, Western

body_text: BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Terrance Michael Ciszek a/k/a DrMonster, 33, and Corey Robert Dodge a/k/a Cakesbaylor, 41, both of Buffalo, NY, were charged in separate complaints with possessing 15 or more unauthorized access devices. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Assistant U.S. Attorney Charles M. Kruly, who is handling the cases, stated that since August 2018, the FBI has been investigating an illicit online marketplace known as Genesis Market, whose operators compile stolen data, such as computer and mobile device identifiers, email addresses, usernames, and passwords, from malware-infected computers around the globe and package it for sale on the market. Purchases made through Genesis Market are conducted using virtual currency, such as bitcoin. According to the complaint against defendant Ciszek, a Buffalo Police Detective, between March 16 and July 29, 2020, he purchased 11 packages on Genesis Market that included 194 stolen account credentials. Investigators also determined that Ciszek had bitcoin wallet addresses associated with UniCC, a dark web carding website. Carding websites are illicit marketplaces and/or forums used to share stolen credit card data and discuss techniques for obtaining credit card data, validating it, and using it for criminal activity. According to the complaint against Dodge, between March 26, 2020, and May 30, 2021, he purchased 14 packages on Genesis Market, that included approximately 8,586 stolen account credentials. The stolen credentials included accounts for Paypal, Tracfone, eBay, Amazon, FedEx, Etsy, Walmart, Chase, Venmo, and eTrade. Ciszek and Dodge made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and were released on conditions. Defendant Ciszek has been suspended with pay by the Buffalo Police Department pending further internal investigation. The complaints are the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: Former Commonwealth Edison Executives and Associates Found Guilty of Conspiring To Influence and Reward Former Illinois House Speaker

component: Federal Bureau of Investigation (FBI)

body_text: CHICAGO — A federal jury has found four former Commonwealth Edison (“ComEd”) executives and associates guilty on all counts charged, including conspiring to influence and reward the former Speaker of the Illinois House of Representatives in order to assist with the passage of legislation favorable to the electric utility company, in addition to multiple bribery and record falsification charges. The jury found the following defendants guilty of all charges: MICHAEL McCLAIN, 75, of Quincy, who worked as a lobbyist and consultant for ComEd after serving in the Illinois House of Representatives in the 1970s and early 1980s. ANNE PRAMAGGIORE, 64, of Barrington, who served as CEO of ComEd from 2012 to 2018, and later served as a senior executive at an affiliate of Exelon Corp., of which ComEd was a subsidiary. JOHN HOOKER, 74, of Chicago, who served as ComEd’s executive vice president of legislative and external affairs from 2009 to 2012, after which he worked as an external lobbyist for ComEd. JAY DOHERTY, 69, of Chicago, who owned Jay D. Doherty & Associates, which performed consulting services for ComEd from approximately 2011 to 2019. Sentencing dates have not been set. Count 1, charging the conspiracy, has a possible punishment of up to five years in federal prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Counts 2, 5, 6, and 8, charging bribery, have a possible sentence of up to 10 years in prison and a maximum fine of $250,000 or twice the gross gain or loss from the offense. Counts 3, 4, 7, and 9, charging record falsification, have a possible punishment of up to 20 years in federal prison, a fine of $5,000,000, or twice the gross gain or loss from the offense. The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the Federal Bureau of Investigation; and Justin Campbell, Special Agent-in-Charge of Internal Revenue Service Criminal Investigation in Chicago. The government was represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Sarah E. Streicker, and Julia Schwartz.


title: Bank Robber Sentenced to More Than Nine Years; Robbed Same Credit Union Twice

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – April 25, 2023 SAN DIEGO – Akil Saeed Daniels was sentenced in federal court to 110 months in prison for robbing credit unions in Poway and Chula Vista in 2022 - months after he was released from a long stint in prison for robbing the same Chula Vista credit union more than a decade earlier. That twice-robbed credit union – California Coast on H Street in Chula Vista – was one of five financial institutions Daniels robbed in 2011. For that he was sentenced to more than 13 years in prison. Following his release in June 2022, he then robbed the same Chula Vista location of California Coast Credit Union only three months later, on September 27, 2022. He robbed the Mission Federal Credit Union the next day. During the most recent robbery of California Coast, Daniels used a demand note. Coincidentally, the teller he robbed at that location in 2011 still works for the credit union. That teller was standing beside another teller when Daniels robbed that location again 11 years later. When Daniels robbed the Mission Federal Credit Union in Poway, he used a demand note that read, “Hand me all the money, don’t make me get violent” or “Hand me all the money, I don’t want to get violent.” Daniels was arrested on October 3, 2022, and was indicted for those robberies in November 2022. He was convicted by a federal jury following a two-day trial in January 2023. “Employees who have been through a robbery are impacted for the rest of their lives,” said U.S. Attorney Randy Grossman. “This defendant made the decision to terrorize the same people not once, but twice. And now, not once, but twice, he will pay for his crime with a lengthy prison term.” Grossman thanked the prosecution team and the FBI for their excellent work on this case. “This is not the first time that Daniels has had to face the consequences for this type of crime,” said Acting Special Agent in Charge Houtan Moshrefi. “May this 110-month sentence be a reminder of the severity of his actions. Violent crimes such as these in our community are intolerable. The FBI and our law enforcement partners are committed to holding those responsible who choose to rob banks as a means of income.” This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the San Diego Violent Crimes Task Force, the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force. This case is also 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. DEFENDANT Case Number 22cr2505-LL Akil Saeed Daniels Age: 41 San Diego, CA SUMMARY OF CHARGES Bank Robbery – Title 18, U.S.C., Section 2113(a) Maximum penalty: Twenty years in prison Bank Robbery – Title 18, U.S.C., Section 2113(a) Maximum penalty: Twenty years in prison AGENCY Federal Bureau of Investigation – Violent Crimes Task Force


title: East Bay Man Charged With Running $39 Million Ponzi Scheme

component: USAO - California, Northern

body_text: SAN FRANCISCO – A federal grand jury indicted Derek Vincent Chu, charging him with crimes related to an alleged $39 million Ponzi scheme involving over 100 victims, on April 26, 2023, announced United States Attorney Ismail J. Ramsey, Internal Revenue Service – Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian, and FBI Special Agent in Charge Robert K. Tripp. According to the indictment, between late 2013 and 2020, Chu, 41, of Alamo, Calif., used several companies to raise $39 million by fraudulently soliciting investments in the purchase and resale of professional basketball tickets and luxury suites at Oracle Arena, in Oakland, California; the Staples Center, in Los Angeles, California; and the Chase Center, in San Francisco, California. The indictment further alleges that Chu induced investors by making numerous materially false misrepresentations, including how the investor funds would be used, how investors would be repaid, and whether the investments were secured by collateral. According to the allegations in the indictment, Chu commingled the investors’ money between his own personal accounts and his companies’ accounts, which resulted in investor money being used to repay other, earlier investors, and for other unrelated expenses. Furthermore, the indictment alleges that Chu misappropriated and diverted more than $7.3 million of investor funds for his own personal benefit, which included paying credit card debts; making cash withdrawals; paying for travel, luxury automobile and jewelry purchases; and paying utilities bills, among other things. The indictment charges Chu with eight counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, and three counts of money laundering, in violation of 18 U.S.C. §§ 1957 and 2. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Each wire fraud count has a maximum statutory sentence of 20 years in prison and a fine in the amount of $250,000. Each money-laundering count has a maximum statutory sentence of 10 years in prison and a fine in the amount of $250,000. The court also may order a term of supervised release, fines or other assessments, restitution, and forfeiture, if appropriate. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Chu was arrested this morning and made an initial appearance before the Hon. Laurel Beeler, U.S. Magistrate Judge for the Northern District of California. Chu’s next appearance is scheduled before Judge Beeler on Wednesday, May 10, 2023, for appearance of counsel. The Special Prosecutions Section of the United States Attorney’s Office for the Northern District of California is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the San Francisco Police Department. Individuals who believe that they may be a victim in this case should contact the United States Attorney’s Office for the Northern District of California’s victim specialists by email at: USACAN.DCVictimAsst@usdoj.gov.


title: Four Charged in Multi-Million-Dollar Childcare Benefits Fraud Ring that Bilked California Welfare and Benefits Program for Years

body_text: NEWS RELEASE SUMMARY – May 2, 2023 SAN DIEGO – Four San Diego residents were charged in federal court today with participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars. Mohamed Muriidi Mohamed, Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar were arraigned this afternoon before U.S. Magistrate Judge Barbara L. Major. According to the indictment, the Department of Health and Human Services (HHS) funds a program known as “Alternative Payment Program/Stage 2 Childcare.” This childcare benefits program allows eligible parents to select a licensed childcare provider to provide childcare services that best fit a family’s needs. In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA). CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent, and the employer and/or school. The indictment alleges that the defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working at or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment during the days, and for the hours, claimed. In turn, childcare providers submitted false daily childcare attendance forms claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school, although no childcare was actually provided. In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center, and the childcare providers were expected to split the childcare benefit program funds they received, 50/50, with the parents. The indictment alleges that the defendants’ scheme caused CDA and YMCA to pay out over $3.7 million dollars in childcare benefit program funds. “Childcare benefit programs are designed to help parents who need the assistance of quality childcare service,” said U.S. Attorney Randy Grossman. “Fraud takes money away from the very communities those programs are intended to serve.” Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case. “It is unacceptable for individuals to exploit and defraud programs designed to provide basic childcare benefits for hard working families,” said Chad Plantz, special agent in charge, HSI San Diego. “This investigation serves as an example of how dedicated we are to working in coordination with our law enforcement partners to support and affect a positive impact on the local community.” DEFENDANTS Case Number 23CR0552-RBM Mohamed Muriidi Mohamed, Spring Valley Age: 46 Amina Abdirazak Omar, Spring Valley Age: 40 Osob Abdirazak Omar, San Diego Age: 32 Omar Omar, San Diego Age: 22 SUMMARY OF CHARGES Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371 Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss Wire Fraud– Title 18, U.S.C., Section 1343 Maximum penalty: Twenty years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss Theft of Government Funds – Title 18, U.S.C., Section 641 Maximum penalty: Ten years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss AGENCIES U.S. Department of Homeland Security, Homeland Security Investigations U.S. Department of Health and Human Services, Office of the Inspector General U.S. Department of Housing and Urban Development, Office of the Inspector General *The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.


title: Former Fulton High School Coach Arrested on Federal Charges for Receiving, Transporting, and Possessing Child Pornography

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK – Joshua Demars, age 37, of Fulton, New York, was arrested today on a federal complaint charging him with receiving, transporting, and possessing child pornography. The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations. The complaint alleges that, on March 19, 2023, the New York State Police (“NYSP”) and Homeland Security Investigations (“HSI”) executed a search warrant at Demars’ residence in Fulton, New York. The search warrant was obtained, in part, because a CyberTipline Report from the National Center for Missing and Exploited Children (“NCMEC”) indicated that Demars had uploaded child pornography to Dropbox. At the time of the search warrant execution, Demars worked as a teaching assistant and coach in the Fulton City School District. As outlined in the criminal complaint, during the search of Demars’ residence, law enforcement located several electronic devices that contained hundreds of images and videos depicting child pornography. On those devices, law enforcement found evidence that Demars had indeed transported a video of a 5-7 year old female being sexually abused by an adult male to his Dropbox account, and dozens of recordings of Demars receiving live videos of children who were engaging in sexually explicit conduct. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty. Demars appeared before United States Magistrate Judge Andrew T. Baxter today and was ordered detained pending a detention hearing scheduled for May 5, 2023. If convicted, Demars faces at least 5 years and up to 20 years in prison, a term of supervised release of up to life, and a fine of up to $250,000, and will be required to register as a sex offender after his release from prison. 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. HSI and NYSP are investigating the case, and it is being prosecuted by Assistant U.S. Attorneys Paul Tuck and Jessica Carbone as 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: Massachusetts Man Charged with Possession and Intent to Distribute Over Two Pounds of Fentanyl in New Hampshire

component: USAO - New Hampshire

body_text: CONCORD – A Massachusetts man has been charged in connection with his possession and intent to distribute over two pounds of suspected fentanyl in New Hampshire, U.S. Attorney Jane E. Young announces. Eddy Antonio Perdomo, 29, appeared before Magistrate Judge Daniel J. Lynch for an initial appearance in federal court on May 1, 2023. Perdomo’s detention hearing is scheduled for May 3, 2023. According to the charging documents, Perdomo arranged to sell a kilogram of fentanyl to a confidential source in Ashland, New Hampshire on April 29, 2023. The car traveling from Massachusetts, in which Perdomo was a passenger, was stopped in a parking lot in Ashland. Investigators found suspected fentanyl on the floor of the passenger seat, between Perdomo’s feet. The charge of possession with the intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years of supervised release, and a maximum fine of $1,000,000. 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 U.S. Drug Enforcement Administration led the investigation. Assistant U.S. Attorney Heather A. Cherniske is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###


title: Largest International Operation Against Darknet Trafficking of Fentanyl and Opioids Results in Record Arrests and Seizures

component: Criminal - Computer Crime and Intellectual Property Section

body_text: Today, the Department of Justice, and its Joint Criminal Opioid and Darknet Enforcement (JCODE) team and international partners, announced the results of Operation SpecTor, which included 288 arrests – the most ever for any JCODE operation and nearly double that of the prior operation. Law enforcement also conducted more seizures than any prior operation, including 117 firearms, 850 kilograms of drugs that include 64 kilograms of fentanyl or fentanyl-laced narcotics, and $53.4 million in cash and virtual currencies. Operation SpecTor was a coordinated international effort spanning three continents to disrupt fentanyl and opioid trafficking on the darknet, or dark web. The operation was conducted across the United States, Europe, and South America, and was a result of the continued partnership between JCODE and foreign law enforcement against the illegal sale of drugs and other illicit goods and services on the darknet. Operation SpecTor builds on the successes of prior years’ operations and takedowns of marketplaces, which result in the seizure of darknet infrastructure providing investigators across the world with investigative leads and evidence. JCODE and Europol’s European Cybercrime Centre (EC3) continue to compile intelligence packages to identify entities of interest. These leads allow U.S. and international law enforcement agencies to identify darknet drug vendors and buyers, resulting in a series of coordinated, but separate, law enforcement investigations, resulting in the statistics announced today. This year’s law enforcement operation was accompanied by a public awareness campaign called Operation ProtecTor aimed to promote public safety and spread awareness of resources for those struggling with substance abuse and who go through extreme lengths to obtain opioids. JCODE has worked with every FBI field office in the country to facilitate outreach to households that have purchased individual amounts of opioids from the darknet. The interagency efforts are aimed to both identify those who use anonymizing technologies to purchase illicit narcotics and direct them to available resources. “Operation SpecTor was a coordinated international law enforcement effort, spanning three continents, to disrupt drug trafficking on the dark web and represents the most funds seized and the highest number of arrests in any coordinated international action led by the Justice Department against drug traffickers on the dark web,” said Attorney General Merrick B. Garland. “Our message to criminals on the dark web is this: You can try to hide in the furthest reaches of the internet, but the Justice Department will find you and hold you accountable for your crimes.” “The availability of dangerous substances like fentanyl on dark net marketplaces is helping to fuel the crisis that has claimed far too many American lives,” said FBI Director Christopher Wray. “That's why we will continue to join forces with our law enforcement partners around the globe to attack this problem together. The FBI is proud to stand with our domestic and foreign partners as we continue to shine that light into the deepest corners of the dark net and hold those accountable who continue to peddle this poison around the world.” “The Sinaloa and Jalisco drug cartels, and the global networks they operate are killing Americans by sending fentanyl into the United States. Their associates distribute this fentanyl into communities across America by every means possible, including the dark web,” said DEA Administrator Anne Milgram. “The DEA is committed to shutting down the fentanyl supply chain from beginning to end, and we will relentlessly pursue the associates of these cartels wherever they hide, even in the dark corners of the internet.” “Our coalition of law enforcement authorities across three continents proves that we all do better when we work together,” said Executive Director Catherine De Bolle of Europol. “This operation sends a strong message to criminals on the dark web: international law enforcement has the means and the ability to identify and hold you accountable for your illegal activities, even on the dark web.” “Collaboration with our law enforcement partners is key to combatting fentanyl and opioid trafficking,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “Under the JCODE umbrella, law enforcement agencies across the globe have joined forces to take down criminals who use the darknet to buy and sell narcotics. Our team at IRS-CI plays an integral role in these investigations by following the money trail, whether it’s in fiat currency or digital assets on the blockchain.” “The illicit movement of opioids poses a significant threat to public health and safety – whether by known transnational criminal gang members across international borders or anonymously through darknet spaces,” said Senior Official Performing the Duties of Deputy Director P.J. Lechleitner of Homeland Security Investigations (HSI). “Our HSI special agents, alongside federal and international partners, continue to aggressively investigate, disrupt, and dismantle networks responsible for trafficking dangerous, deadly narcotics and other contraband across global communities we are charged with protecting. We will continue to pursue bad actors engaged in these crimes to ensure they face justice, while protecting victims from these lethal substances.” “The U.S. Postal Inspection Service leverages our specialized knowledge of the postal system as part of sophisticated dark web investigations such as Operation SpecTor with great results,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service. “We are committed to taking all necessary actions to combat illicit drugs in the mail. And we thank our law enforcement partners for working with us to achieve this; removing dangerous illicit substances from the mail and American communities saves lives.” “Addressing our nation’s drug overdose crisis and epidemic of substance use disorders is an issue of great concern and remains a top public health priority for the U.S. Food and Drug Administration (FDA),” said Commissioner Robert M. Califf, M.D., of the FDA. “The FDA has undertaken strategic and impactful actions to prevent drug overdoses and reduce deaths and is committed to using all of our cyber-resources to shed light on the darkest corners of illicit medical supply chains for the health and safety of all Americans.” Operation SpecTor resulted in over 100 federal operations and prosecutions, including: On Dec. 1, 2022, Anton Peck, 29, of Boca Raton, Florida, was sentenced to 16 years in prison for conspiring to possess with the intent to distribute controlled substances, including fentanyl, methamphetamine, and heroin. According to court documents, between May 2021 and May 2022, Peck distributed narcotics from various darknet markets using the vendor profile “Syntropy.” After the transactions were carried out using cryptocurrency, Peck and co-conspirators Kevin Fusco and Vincent Banner mailed parcels containing fentanyl, heroin, and methamphetamine to cities around the country using the U.S. Postal Service (USPS). Fusco, 35, of West Palm Beach, Florida, was sentenced to 11 years in prison for conspiring to distribute fentanyl, heroin, and methamphetamine. Banner, 31, of Boynton Beach, Florida, is scheduled to be sentenced on June 8 after pleading guilty to one count of conspiracy to possess with intent to distribute fentanyl, methamphetamine, and heroin. Law enforcement recovered kilogram quantities of fentanyl, cocaine, methamphetamine, and heroin from business and storage locations in West Palm Beach, Boca Raton, and New York City. Peck possessed a list of more than 6,000 customers living across the United States. The DEA, FBI, USPS Office of Inspector General (USPS-OIG), U.S. Postal Inspection Service (USPIS) and the Palm Beach County Sheriff’s Office investigated the case. The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case. On Nov. 18, 2022, a federal grand jury returned an indictment charging Christopher Hampton, 36, of Cerritos, California, with heading an organization that obtained bulk fentanyl, operated labs in California that used high-speed pill presses to create fake pills containing fentanyl and methamphetamine, and sold millions of pills to thousands of customers on the darknet. Hampton was named in an 11-count indictment that charges him with various narcotics and weapons offenses that could result in a sentence of life in prison. According to court documents, he was active on at least nine darknet marketplaces where he typically used the moniker “Narco710.” Hampton allegedly sold nearly $2 million worth of narcotics on two of these darknet marketplaces alone. He was arrested on Nov. 2, 2022, at which time federal law enforcement executed search warrants that led to the discovery and seizure of 450 pounds of suspected narcotics; six pill press machines, some of which were capable of producing thousands of pills per hour; and illegal firearms that included assault rifles and a machine gun. Agents later located a storage unit linked to the drug conspiracy and seized over 80 pounds of pressed fentanyl pills, eight guns, and precursor materials to press additional pills. The FBI JCODE and DEA HIDTA Tactical Diversion Squad investigated the case. The U.S. Attorney’s Office for the Central District of California is prosecuting the case. On May 12, 2022, a federal grand jury returned a two-count indictment charging Holly Adams, 31, and Devlin Hosner, 33, of Indio, California, with conspiracy to distribute and possess with intent to distribute fentanyl and methamphetamine, and with conspiracy to launder money. According to court documents, Adams and Hosner operated the vendor accounts “igogrrawwr” and “its4real” on the darknet marketplaces ToRReZ and Darkode, respectively, through which they sold tens of thousands of counterfeit oxycodone pills containing fentanyl in exchange for cryptocurrency. Adams and Hosner shipped these fentanyl pills to buyers throughout the United States, using the USPS, UPS, and other means of delivery. In the course of their conspiracy, Adams and Hosner finalized over 1,100 transactions of narcotics and other contraband and received more than $800,000 in cryptocurrency. Federal law enforcement officers executed a search warrant at a hotel in Riverside county where Adams and Hosner were residing and recovered more than 10,000 counterfeit oxycodone pills as well as approximately 60 grams of methamphetamine. The IRS-CI, HSI, FBI, USPIS, and USPS-OIG investigated the case. The U.S. Attorney’s Office for the Eastern District of California is prosecuting the case. Operation SpecTor was a collaborative initiative across JCODE members, including the Department of Justice, FBI, DEA, USPIS, HSI, IRS-CI, ATF, Naval Criminal Investigative Service (NCIS), and the FDA’s Office of Criminal Investigations. This operation was aided by non-operational supporting participation from the Financial Crimes Enforcement Network (FinCEN) and U.S. Customs and Border Protection (CBP). Local, state, and other federal agencies also contributed to Operation SpecTor investigations through task force participation and regional partnerships. The investigations leading to Operation SpecTor were significantly aided by support and coordination by the Justice Department’s Organized Crime Drug Enforcement Task Forces (OCDETF); multi-agency Special Operations Division; the Criminal Division’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section’s Digital Currency Initiative, Narcotic and Dangerous Drug Section, and Fraud Section; the Justice Department’s Office of International Affairs; Europol and its Dark Web team; and international partners. The international partners include Eurojust; Austria’s Federal Criminal Police Office (Bundeskriminalamt); France’s Directorate-General of Customs and Indirect Taxes (Douane); Germany’s Federal Criminal Police Office (Bundeskriminalamt), Central Criminal Investigation Department of Oldenburg (Zentrale KriminaIinspektion Oldenburg), General Prosecutor’s Office in Frankfurt/Main - Cybercrime Center (Generalstaatsanwaltschaft Frankfurt/Main, Zentralstelle zur Bekämpfung der Internetkriminalität), Berlin Police (Polizei Berlin), various police departments (Dienststellen der Länderpolizeien), German Customs Investigation (Zollfahndungsämter); the Netherland’s National Police (Politie); Poland’s Central Cybercrime Bureau (Centralne Biuro Zwalczania Cyberprzestępczości); Brazil’s Civil Police of the State of Piauí (Polícia Civil do Estado do Piauí), Civil Police of the Federal District (Polícia Civil do Distrito Federal), National Secretariat of Public Security - Directorate of Integrated Operations and Intelligence - Cyber Operations Laboratory (Laboratório de Operações Cibernéticas da Diretoria de Operações Integradas e de Inteligência - Secretaria Nacional de Segurança Pública); Switzerland’s Zurich Cantonal Police (Kantonspolizei Zürich) and Public Prosecutor’s Office II of the Canton of Zurich (Staatsanwaltschaft II); and the United Kingdom’s National Crime Agency (NCA) and National Police Chief’s Council (NPCC). Federal investigations and prosecutions are being conducted in more than 30 federal districts, including the District of Arizona, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the District of Columbia, the District of Delaware, the Southern District of Florida, the Northern District of Georgia, the Southern District of Indiana, the Eastern District of Kentucky, the District of Maryland, the District of Massachusetts, the Eastern District of Michigan, the Western District of Michigan, the Eastern District of Missouri, the Western District of Missouri, the District of Nebraska, the District of Nevada, the District of New Jersey, the Eastern District of New York, the Southern District of New York, the Western District of North Carolina, the Northern District of Ohio, the Southern District of Ohio, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Dakota, the Eastern District of Tennessee, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the District of Vermont, the Eastern District of Virginia, and the Western District of Washington. The Justice Department established the FBI-led JCODE team to lead and coordinate government efforts to detect, disrupt, and dismantle major criminal enterprises reliant on the darknet for trafficking opioids and other illicit narcotics, along with identifying and dismantling their supply chains. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Two Pharmacy Owners Charged with $29M Health Care Fraud Scheme

component: Criminal Division

body_text: An indictment was unsealed today in Brooklyn charging two New York men for their alleged participation in a scheme to submit false and fraudulent claims to Medicare and Medicaid for medically unnecessary prescriptions and over-the-counter products that were not actually dispensed, to pay illegal kickbacks and bribes, and to launder the proceeds of their scheme. According to court documents, Taesung “Terry” Kim, 58, of Purchase, and Dacheng “Bruce” Lu, 44, of Great Neck, partly owned and operated four pharmacies: 888 Pharmacy Inc. and Huikang Pharmacy Inc., located in Brooklyn, and Elmcare Pharmacy Inc. and NY Elm Pharmacy Inc., located in Flushing. Between January 2015 and December 2022, Kim and Lu allegedly conspired with others to submit false and fraudulent claims to Medicare and Medicaid for dispensing pharmaceutical and over-the-counter products that were medically unnecessary, procured by the payment of kickbacks and bribes, or not provided. Further, Kim and Lu allegedly conspired with others who paid illegal kickbacks and bribes, in the form of cash and supermarket gift certificates, to Medicare beneficiaries and Medicaid recipients who filled their prescriptions at their pharmacies. Kim and Lu also conspired with others to pay and paid illegal kickbacks and bribes, in the form of rent and office staff, to the doctors who prescribed the medically unnecessary medications filled at their pharmacies. Kim and Lu also are alleged to have laundered the proceeds of their fraud through shell entities to generate cash that they could disperse as unrecorded profits to themselves and the pharmacies’ other owners and to pay kickbacks to pharmacy customers. As part of the scheme, Kim and Lu’s pharmacies submitted approximately $29 million in fraudulent claims to Medicare and Medicaid. Kim and Lu are charged with conspiracy to commit health care fraud, conspiracy to commit money laundering, and conspiracy to pay illegal health care kickbacks and bribes. If convicted, they each face a maximum penalty of 10 years in prison for conspiracy to commit health care fraud, 20 years in prison for conspiracy to commit money laundering, and five years in prison for conspiracy to pay illegal health care kickbacks and bribes. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office, and Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement. The FBI and HHS-OIG are investigating the case. Trial Attorney Patrick J. Campbell and Acting Assistant Chief Miriam Glaser Dauermann of the Criminal Division’s Fraud Section are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Head Of Telemarketing Operation Sentenced To 78 Months In Prison For $19 Million Credit Card Laundering Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that STEVEN SHORT, the former head of Florida-based E.M. Systems & Services LLC and affiliated companies (collectively, “E.M. Systems”), was sentenced today to 78 months in prison for conspiracy to commit wire fraud and bank fraud in connection with his participation in a fraudulent scheme to obtain credit card processing services for his deceptive Florida-based telemarketing operation through a California-based company called CardReady LLC (“CardReady”). SHORT previously pled guilty to the conspiracy charge and was sentenced today before United States District Judge Loretta A. Preska. U.S. Attorney Damian Williams said: “Over a two-year period, Steven Short and his co-conspirators used shell companies to deceive credit card payment processors into processing more than $19 million obtained from more than 19,000 victims nationwide. Short preyed on vulnerable people in credit card debt, charging fees up to $1,495 in exchange for guaranteeing to reduce their debt and lower their interest rates, but instead generally sent them cookie-cutter booklets with ordinary budgeting advice.” According to the Superseding Indictment, court filings, and statements made in Court: SHORT controlled E.M. Systems. From approximately 2012 through 2015, SHORT and E.M. Systems carried out a telemarketing fraud scheme in which they used telemarketers to cold-call consumers, targeting consumers with outstanding credit card debt. In exchange for fees up to $1,495, the cold-callers offered the customers services, including debt consolidation and interest-rate reduction on their debts, which were prohibited by the applicable guidelines from a bank used by SHORT (“Bank-1”) and associated processing entities (the “Guidelines”), and which — as SHORT knew — would produce chargebacks from dissatisfied customers far in excess of the number and rate of chargebacks permitted under the Guidelines. SHORT and E.M. Systems generated over $19 million in fraud proceeds from more than 19,000 customers through this scheme, resulting in thousands of complaints by customers of fraud and deceptive tactics and requests for millions of dollars in refunds and chargebacks. In order to charge for E.M. Systems’ purported services via credit cards, SHORT sought access to the credit card processing market through CardReady, a Los Angeles-based company acting as a sales agent in the credit card processing industry. As part of its business as a sales agent, CardReady found merchants who wanted credit card processing services, such as SHORT, and submitted merchant applications on behalf of those merchants to a Manhattan-based Independent Sales Organization (the “New York ISO”). The New York ISO then evaluated the merchant applications and referred acceptable merchant accounts up the chain to a payment processor (“Payment Processor-1”) and Bank-1. Bank-1 and Payment Processor-1, in turn, processed payments to merchants for purchases by customers who had used credit cards. Under E.M. Systems’ deal with CardReady, CardReady kept approximately one-third of the credit card sale transactions of SHORT and E.M. Systems in exchange for providing them access to the credit card processing network. In securing credit card processing for E.M. Systems to process the fees paid by its customers, SHORT and CardReady concealed that E.M. Systems was the true underlying merchant. Instead, SHORT and his co-conspirators, over a period of more than 20 months, created approximately 26 sham merchant companies, each headed by a “signer” (the “Sham Merchants” and the “Sham Merchant Accounts”). The 26 signers for the 26 Sham Merchants typically had no business of their own and knew little or nothing about E.M. Systems’ business. In return for signing paperwork, the signers were paid a nominal fee by CardReady. These false merchant applications also concealed the Sham Merchant’s true association with E.M. Systems. By steering E.M. System’s payment processing through these Sham Merchant Accounts, SHORT and CardReady accomplished a number of fraudulent purposes. First, the use of these Sham Merchant Accounts made it possible for E.M. Systems to conceal its identity from Payment Processor-1 and Bank-1 and to maintain payment card processing. This was particularly relevant as Payment Processor-1 repeatedly required CardReady to close individual Sham Merchant Accounts because of excessive chargebacks and reports of sales of prohibited services. SHORT and CardReady then quickly replaced the closed Sham Merchant Accounts with new Sham Merchant Accounts, precluding Payment Processor-1 from shutting down its processing of high-risk merchants. Second, the fraudulent processing scheme enabled E.M. Systems to spread out its charges, refunds, and chargebacks across multiple Sham Merchant Accounts. SHORT and CardReady thus enabled E.M. Systems to evade chargeback monitoring programs operated by Bank-1, Payment Processor-1, and the New York ISO. * * * SHORT, 46, of Tampa, Florida, pled guilty on August 16, 2022, to one count of conspiracy to commit wire fraud and bank fraud. In addition to the prison sentence, SHORT was sentenced to three years of supervised release and ordered to pay restitution of $1,912,090.05 and forfeiture of $8,833,889.69. Also charged in this case is Brandon Becker, 51, of Los Angeles, California, whose trial is scheduled to begin on December 4, 2023, before Judge Preska. Becker is presumed innocent unless and until proven guilty. Mr. Williams praised the work of the Federal Bureau of Investigation and thanked the Federal Trade Commission for its assistance. This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys David Raymond Lewis, Vladislav Vainberg, and Sarah Y. Lai are in charge of the prosecution.


title: Former Belmont County attorney sentenced to 5 years in prison for stealing more than $800,000 from elderly victim with dementia

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – A former Belmont County attorney was sentenced in U.S. District Court today to 60 months in prison for committing mail fraud related to stealing more than $882,000 from an elderly woman with dementia while purporting to act in her best interests under a Power of Attorney. From 2012 through August 2019, Mark Alan Thomas, 63, of St. Clairsville, Ohio, defrauded a client and took the victim’s money without her knowledge or permission to use it for his own benefit. As part of his sentence, Thomas is required to pay $882,502 in restitution. “Thomas’s grave abuse of power over this vulnerable victim demands today’s serious punishment,” U.S. Attorney Kenneth L. Parker said. “The victim in this case was 86 years old, exhibiting symptoms of dementia, and living in a senior-care facility. She trusted Thomas, and Thomas abused that trust to steal her money for more than seven years. His actions to take advantage of her were utterly shameful.” According to court documents, Thomas improperly used the victim’s Power of Attorney and his status as a lawyer – even after his law license was revoked in 2015 – to convince various entities, including banks and life insurance companies, to transfer the victim’s money for his use. In May 2012, a family member of the victim obtained a separate Power of Attorney for the victim, and Thomas drafted a revocation of the family member’s Power of Attorney for the victim to sign. Thomas acted as the notary to verify the victim’s signature on the revocation. Furthermore, Thomas falsely told a banker he needed $200,000 from the victim’s investment account to set up an educational fund that the victim wanted to establish. Once he received the money from the bank, Thomas transferred the money to himself instead. In January 2014, Thomas cashed more than $290,000 of the victim’s U.S. Treasury Bonds, then subsequently transferred $200,000 into his law firm’s bank account, and eventually into his own personal bank account. According to court documents, in 2016, Thomas wrote letters to three life insurance companies purporting to be the victim asking to cash out the victim’s policies and direct all correspondence to Thomas. Thomas was indicted by a federal grand jury in September 2021 and pleaded guilty in August 2022. Kenneth L. Parker, U.S. Attorney, Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Ohio Attorney General Dave Yost announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. The Ohio Attorney General’s Health Care Fraud Unit and the FBI investigated the case. Assistant United States Attorneys David J. Twombly and S. Courter Shimeall are representing the United States in this case. To report elder fraud, please visit the FBI’s IC3 Elder Fraud Complaint Center or contact the dedicated National Elder Fraud Hotline at 833–FRAUD–11 or 833–372–8311 Monday – Friday, 10:00 am – 6:00 pm EST. # # #


title: Former Mississippi Tax Return Preparer Pleads Guilty to Conspiracy to Defraud the United States

component: Tax Division

body_text: A former Mississippi tax preparer pleaded guilty today to conspiring to defraud the United States by preparing false tax returns. According to court documents and statements made in court, from 2015 through 2017, John Wells, Jr. worked at Sunbelt Tax Services, a return preparation business with a primary office located in Jackson, Mississippi. Wells conspired with others at Sunbelt Tax Services to claim fraudulently inflated tax refunds for clients by reporting false education credits, itemized deductions, and business profits or losses. Wells is scheduled to be sentenced on September 20, 2023, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department's Tax Division made the announcement. Trial Attorneys Casey Smith, Patrick Elwell, and Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney Bert Carraway of the Southern District of Mississippi are prosecuting the case.


title: Four Charged with Failure to Register as Sex Offenders

component: USAO - Tennessee, Western

body_text: Memphis, TN – In April 2023, federal grand juries in Jackson and Memphis returned indictments against four convicted sex offenders for failure to register or maintain their registration when they moved to Tennessee, in violation of the Sex Offender Registration and Notification Act (SORNA). United States Attorney Kevin Ritz announced the indictments today. According to United States Attorney Ritz and information presented in court, the following sex offenders failed to update their registration to reflect travel to the Western District of Tennessee (WDTN). • Terrell Chase Powell, 40, present in the WDTN from September 27 to December 15, 2022. • Edward Elbert Thompson, 75, present in the WDTN from January 2022 to March 2, 2023. • Jose Lozano, 45, present in the WDTN from November 29, 2021, to January 6, 2022; and • Lorenzo Mitchell, 41, present in the WDTN from October 29 to December 5, 2022 SORNA requires sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school. “Most convicted sex offenders who live and work in West Tennessee meet their registration requirements and are productive members of our communities. Compliance with SORNA holds convicted sex offenders accountable to law enforcement and helps to keep our communities safe. Failure to register is a serious offense, and my office will aggressively pursue those offenders who attempt to avoid their legal obligations when st Tennessee,” said United States Attorney Kevin Ritz. United States Marshal for the Western District of Tennessee Tyreece Miller said, “Congress directed the United States Marshals Service to locate absconded sex offenders through the Adam Walsh Child Protection and Safety Act in July 2006. Our office takes this responsibility seriously and is proactive in locating and arresting non-compliant sex offenders. These indictments are examples of our partnership with the U.S. Attorney’s Office and commitment to protecting the citizens in the Western District of Tennessee.” If convicted, each defendant faces up to 10 years’ imprisonment, up to a $250,000 fine, and a period of supervised of five years to life. There is no parole in the federal system. The case was investigated by the United States Marshals Service. Members of the public are reminded that an indictment only contains charges. Each defendant is presumed innocent of the charges and it will be the government's burden to prove each defendant's guilt beyond a reasonable doubt. Assistant United States Attorneys Adam Davis and Lauren Delery are prosecuting the case. ### For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or cherri.green@usoj.gov. Follow @WDTNNews on Twitter for office news and updates.


title: Hudson Man Indicted For Defrauding U.S. Taxpayers

body_text: CONCORD – A Hudson man was indicted in connection with his attempt to fraudulently obtain over $1 million in CARES Act funds from the United States government, U.S. Attorney Jane E. Young announces. Matthew Dispensa, 57, was indicted on four counts of bank fraud, two counts of attempted wire fraud, and two counts of money laundering. Dispensa was arrested this morning and released on conditions. According to the charging documents, Dispensa owns and operates the Gateway Hills Heath Club in Nashua. Although he only had one gym, he filed CARES Act loan applications for two different entities, Gateway Hills Health Club, Inc. (“Gateway Hills Inc.”) and Gateway Hills Health & Wellness, LLC (“Gateway Hills LLC”). Between 2020 and 2022, Dispensa applied for four Paycheck Protection Program (PPP) loans and two Economic Injury Disaster Loans (EIDL) for Gateway Hills Inc. and Gateway Hills LLC. He submitted the Gateway Hills Inc. PPP applications to Millyard Bank and the Gateway Hills LLC PPP applications to a separate bank, Primary Bank. He provided the banks and the Small Business Administration (SBA) false documents, including fabricated tax documents, which inflated his purported companies’ size and payroll. Because PPP and EIDL loan size was tied to payroll and the number of employees a company had, he was able to apply for and obtain larger loans than he was entitled to. In total, he applied for $413,850 in PPP loans and $650,000 in EIDL funds. Dispensa also misused at least some of the loan proceeds. For example, he obtained a $146,650 PPP loan for Gateway Hills Inc. He wired $100,000 of the proceeds to a personal brokerage account to purchase stock, including Tesla stock. Similarly, Dispensa obtained a $105,600 PPP loan for Gateway Hills LLC. He transferred the proceeds to his own bank account first before moving $25,000 to a personal brokerage account to purchase 10,000 shares of Ashford Hospitality Trust, a real estate investment trust. The charge of bank fraud provides for a sentence of up to 30 years in prison and a fine of up to $1 million. The charge of attempted wire fraud provides for a sentence of up to 20 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering provides for a sentence of up to 10 years in prison and a fine of twice the amount of the criminally derived property involved in the transaction. 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 Treasury Inspector General for Tax Administration and U.S. Postal Inspection Service led the investigation. Valuable assistance was provided by the Hudson Police Department. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. During the early part of the coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act included multiple relief provisions to help the millions of Americans and many small businesses adversely affected by the pandemic, including the Paycheck Protection Program (PPP). Private lenders could participate in the PPP. The loans, which were supposed to be used for payroll, were fully guaranteed by the government. If borrowers used the PPP loans for payroll and other approved expenses as intended, they could apply for loan forgiveness. The CARES Act also opened up the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL) program. As with PPP loans, EIDL loans were supposed to be used for payroll and other business expenses such as rent and mortgage. 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. ###


title: Madison Man Sentenced to 30 Months for Receiving Stolen Gun

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Aidan Johnson, 20, Madison, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 30 months in federal prison for receiving a stolen firearm. Johnson pleaded guilty to this charge on March 14, 2023. This prison term will be followed by three years of supervised release. On March 11, 2022, Johnson stole a Glock 19x from another person. Johnson possessed the firearm until June 3, 2022, when he was arrested. Throughout that period, Johnson posted photos and videos on social media of himself with the firearm. In imposing the 30-month sentence, Judge Peterson balanced Johnson’s youth and potential with the dangers he posed to the community. Judge Peterson described the image that Johnson had been presenting throughout his social media as a “fantasy of this life dealing drugs” and “being a gangster.” In addressing Johnson, Judge Peterson stated that path “is not romantic or a way to have a good life.” Judge Peterson concluded his sentencing with the hope that Johnson finds a “peaceful, kind, and productive way of being in the community.” The charge against Aidan Johnson was the result of an investigation conducted by the Fitchburg Police Department, the Madison Police Department, the Middleton Police Department, and the Dane County Tactical Response Team. Assistant U.S. Attorneys Kathryn E. Ginsberg and Corey C. Stephan prosecuted this case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Jury Finds District Man Guilty of Two Counts of Armed Robbery

component: USAO - District of Columbia

body_text: Defendant and Associates Committed Two Gunpoint Robberies of Strangers Affiliated with Howard University on the Same Day WASHINGTON – Marquis Funderburk, 20, of Washington, D.C., has been found guilty by a jury of two counts of robbery while armed for two separate gunpoint robberies that took place within 30 minutes of each other, in January of 2022, in the neighborhood surrounding Howard University, announced U.S. Attorney Matthew Graves and Chief Robert Contee, III, of the Metropolitan Police Department (MPD). The verdict was returned on May 1, 2023, following a trial in the Superior Court of the District of Columbia. The Honorable Sean Staples scheduled sentencing for August 25, 2023. According to the government’s evidence, on January 18, 2022, at approximately 11:35 a.m., the defendant and two associates grabbed victim 1, a stranger, as they walked past him on the sidewalk. A gun was brandished and pointed at victim 1’s stomach by one of the men while the other two associates went through victim 1’s pockets, taking his airpods, iPhone, wallet, and keys. At approximately noon on the same day, approximately two blocks from the first robbery, the defendant and three associates grabbed Victim 2, a stranger, as they walked past him on the sidewalk. The defendant’s associate pressed a gun, concealed inside a fanny pack, into victim 2’s chin while demanding Victim 2 give them his property. The defendant punched victim 2 in the face, after which the defendant and his associates proceeded to punch and kick victim 2 repeatedly until he fell to the ground bleeding, ultimately resulting in a concussion. As they demanded victim 2’s account passwords, the defendant commanded his associate with the gun to shoot victim 2. Immediately after the second robbery, an MPD police cruiser, canvassing for the suspects of the first robbery, inadvertently approached the scene of the second robbery. The defendant and his associates fled from the cruiser, taking with them victim 2’s laptop, charger, iPhone, and wallet. The defendant was defendant stopped by police two blocks from the second robbery at approximately 12:30pm. He was positively identified by each of the victims independently. In announcing the verdict, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Richard Carlton, Luca Winer, and Dan Lenerz, Paralegal Specialist Richard Cheatham, Victim/Witness Advocate Christie Bloodworth, and IT Specialist William Henderson. Finally, they commended the work of Assistant U.S. Attorneys Shauna Payyappilly and Katie Sessa, who investigated and prosecuted the case.


title: Former Elementary School Teacher Sentenced to Life in Prison for Sexually Abusing Children

body_text: A former school teacher was sentenced today to life in prison for sexually abusing elementary school students on a U.S. military installation in Germany. According to court documents and evidence presented at trial, Stefan Zappey sexually abused four of his former elementary school students between 2006 and 2010. At the time, Zappey was a teacher for first through third grade students at an elementary school in Germany. The school is part of the Department of Defense Education Activity, which serves dependents of U.S. military service members stationed overseas. “The successful prosecution of Stefan Zappey demonstrates the Justice Department’s commitment to prosecuting U.S. citizens who prey on young and vulnerable children regardless of where and when the crimes occurred,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Zappey’s offenses are especially egregious because he was entrusted with teaching the children of our brave service members overseas. The courage of the victims and the perseverance of investigators and prosecutors ensured that Zappey’s offenses were exposed and will prevent him from abusing even more children.” “Zappey abused a position of trust as an elementary school teacher and sexually abused multiple students,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “His crimes were horrific, and the community is safer now that he no longer has access to children.” In 2020, one of Zappey’s former students notified Army criminal investigators that Zappey touched her under her clothing when she was a student at the school in 2009 and 2010. Further investigation revealed that Zappey sexually abused four of his former students by placing his hand inside their underwear and directly touching them on multiple occasions. The victims were between six and eight-years-old at the time of the sexual abuse. Other students and faculty members reported that Zappey frequently hugged students, had them sit on his lap, and touched their backs and stomachs under their clothes. On Jan. 18, a jury convicted Zappey of four counts of aggravated sexual abuse of a child and four counts of abusive sexual contact. “Cases like these demonstrate the FBI’s dedication to protecting children from those who seek to exploit their innocence,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our partners remain committed to pursuing justice for our most innocent victims and those who are unable to defend themselves.” “Victimizing and preying on Department of Defense dependents is unacceptable,” said Special Agent in Charge Ryan Hall of the Department of the Army Criminal Investigation Division’s (Army CID) Europe Field Office. “Army CID will continue to work closely with our law enforcement partners to investigate these crimes and bring the perpetrators to justice.” The FBI and Army CID investigated the case. Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Leanne M. Marek for the Northern District of Georgia prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Barbour County man charged with firearms violations

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – A Philippi, West Virginia, man with a prior domestic violence conviction is facing federal firearms charges. Ethan D. Delauder, 31, was indicted today for unlawful possession of a firearm and for possessing an unregistered firearm. According to court documents, West Virginia State Police conducted a traffic stop of Delauder during which a shotgun with an illegal shortened barrel was visible on the passenger seat. Delauder is prohibited from having firearms because of domestic violence conviction from Barbour County Magistrate Court in 2017. If convicted, Delauder faces up to 10 years in prison for each charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the West Virginia State Police investigated the case. Assistant U.S. Attorney Christopher Bauer is prosecuting the case on behalf of the government. An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: New Jersey Accountant Pleads Guilty to Tax Fraud Scheme

body_text: A New Jersey certified public accountant (“CPA”) pleaded guilty today to conspiring to defraud the United States by promoting fraudulent tax shelters to high-income clients. According to court documents and statements made in court, James H. Benkoil of Avon-by-the-Sea, New Jersey, promoted fraudulent syndicated conservation easements in which several investors form a partnership or company to purchase or invest in land, then donate the property for a charitable deduction. The scheme facilitated false claims of inflated charitable contribution tax deductions in connection with the “donation” of the conservation easement over land, allowing Benkoil’s high-income clients to buy deductions to illegally shelter their income from taxation. Between 2009 and 2020, while working as a CPA, Benkoil and others, promoted such fraudulent syndicated conservation easement tax shelters by obtaining falsely inflated land appraisals to achieve the desired amount of tax deductions. As a part of his guilty plea, Benkoil admitted his conduct resulted in a tax loss to the IRS of nearly $2.5 million and has agreed to pay full restitution. Benkoil faces a maximum penalty of five years in prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorneys Christopher Magnani and Richard Rolwing of the Justice Department’s Tax Division are prosecuting the case.


title: Bronx Man Charged With Mid-Afternoon Shooting On Crowded Manhattan Sidewalk

body_text: Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today that MICHAEL ROWE, a/k/a “MJ,” was charged with being a felon in possession of ammunition during a shooting that occurred on Saturday afternoon, April 29, 2023, on a crowded sidewalk near 46 th Street and Ninth Avenue in Manhattan. ROWE surrendered last night and was presented today before United States Magistrate Judge Stewart D. Aaron. U.S. Attorney Damian Williams said: “As alleged, this past Saturday afternoon, Michael Rowe opened fire on a busy sidewalk in Hell’s Kitchen, endangering the life of his intended victim and the lives of countless bystanders. Thanks to the swift action of our law enforcement partners, the defendant is now being held accountable for his actions.” FBI Assistant Director in Charge Michael J. Driscoll said: "Rowe's alleged actions endangered numerous innocent people simply attempting to live their lives safely - something we all should feel free to do. The charges today should serve as a warning to any individual willing to settle arguments in a similar fashion - the FBI and our partners in law enforcement will hold you accountable in the criminal justice system." NYPD Commissioner Keechant L. Sewell said: “The NYPD will never relent in our fight against gun violence in our city. And anyone who threatens our public safety with such reckless behavior must be held accountable to the fullest extent of the law. This work is critically important, and I want to thank the U.S. Attorney’s Office for the Southern District of New York, the New York Field Office of the FBI, and everyone else who aided in this arrest.” According to the allegations contained in the Complaint: [1] On or about April 29, 2023, MICHAEL ROWE got into a disagreement with another individual on the sidewalk in the vicinity of 650 Ninth Avenue in Manhattan. Video footage from the scene reveals ROWE appearing to express annoyance and then brandishing a firearm on the crowded sidewalk and shooting at the other individual. Screenshots of video footage showing the argument and ROWE’s subsequent shooting of the individual are below: A discharged shell casing was recovered from the ground at the scene of the shooting. ROWE was not permitted to possess ammunition because of prior state and federal felony convictions. * * * MICHAEL ROWE, 23, of the Bronx, New York, is charged with possessing ammunition after a felony conviction, which carries a mandatory minimum sentence of 15 years in prison and a maximum sentence of life in prison. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding work of the FBI and the NYPD. Mr. Williams also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New York County District Attorney’s Office for their assistance in this case. This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Peter Davis, and Jamie Bagliebter are in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Man Sentenced for $1.1M COVID-19 Fraud Scheme

body_text: A Louisiana man was sentenced today to 10 years in prison for money laundering in connection with a fraudulent scheme to obtain more than $1.1 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) Program loans. “The significant sentence handed down today demonstrates that those who steal from COVID-19 relief programs for personal gain will be prosecuted to the fullest extent of the law,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We remain committed to rooting out bad actors who took advantage of federal programs meant to help those small businesses truly in need.” “This defendant stole over $1 million through fraudulent means and used those funds to support his own personal lifestyle, taking from those whose legitimate businesses were suffering from losses due to the COVID-19 pandemic,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “Federal programs such as these are set up to help those in need, not to benefit fraudsters. It is a priority for our office to prosecute those who obtain these benefits illegally. We look forward to continued collaboration with the Criminal Division’s Fraud Section in aggressively investigating similar crimes related to the COVID-19 pandemic.” According to court documents, Michael Ansezell Tolliver, 57, of Monroe, submitted nine fraudulent PPP and EIDL Program loan applications on behalf of several purported companies that Tolliver owned, including Tolliver Oil & Gas Corporation of Louisiana Inc. and Tolliver Petroleum Corporation of Louisiana. Tolliver falsified information in the loan applications and supporting documents, including falsely claiming that some of his businesses had over 100 employees. He also submitted falsified federal tax returns. “Mr. Tolliver chose greed over compassion by fraudulently obtaining funds from the PPP and EIDL programs established to assist employers severely impacted by the pandemic,” said Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) Atlanta Field Office. “Tolliver’s sentence today should stand as a warning to those who fraudulently received or may have attempted to fraudulently receive funds intended to help businesses during the COVID epidemic.” “This result reveals the excellence achieved through the combined efforts of the Small Business Administration (SBA) and the U.S. Attorney’s Office to uncover and forcefully respond to PPP and EIDL fraud,” said Special Counsel Peggy Delinois Hamilton of the SBA. “SBA is strongly committed to identifying and aggressively pursuing instances of fraud perpetrated by those who took advantage of small business emergency relief programs. We applaud the work that our law enforcement partners have done to ensure fraudsters are held accountable.” In total, Tolliver sought more than $7.6 million in PPP and EIDL Program loans and obtained more than $1.1 million. Tolliver then laundered and misused the loan proceeds, including by transferring the funds to personal bank accounts and purchasing luxury goods. Authorities seized approximately $128,500 from bank accounts, as well as a 2020 Cadillac CT5 sedan, a 2021 GMC Sierra 1500 truck, two Tissot watches, two Tag Heuer watches, and three Honda all-terrain vehicles. The IRS-CI and SBA investigated the case. Assistant Chief Justin M. Woodard of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Seth D. Reeg for the Western District of Louisiana prosecuted the case. The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at www.justice.gov/criminal-fraud/ppp-fraud . 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 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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Two corrections officers charged with violating a prisoner’s civil rights

body_text: CLARKSBURG, WEST VIRGINIA – Two correctional officers from United States Penitentiary Hazelton have been charged with civil rights violations involving the assault of a prisoner. Robert David Sims, 40, of Bruceton Mills, West Virginia, and Joshua David Sines, 38, of Friendsville, Maryland, were each charged with one count of deprivation of rights and one count of assault with serious bodily injury. According to the indictment, Sims and Sines, while employed by USP Hazelton in Preston County, struck an inmate in the face, head, arms, and torso, causing significant injuries. If convicted, Sims and Sines each face up to 20 years in prison for the civil rights charge and up to 10 years for the assault charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The U.S. Department of Justice Office of Inspector General investigated the case. Assistant U.S. Attorney Brandon Flower is prosecuting the case on behalf of the government. An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Man Sentenced in Methamphetamine Conspiracy

component: USAO - Nebraska

body_text: United States Attorney Steven Russell announced that Taylor Brown, 34, formerly of McCook, Nebraska, and Omaha, Nebraska, was sentenced today in federal court in Lincoln, Nebraska, for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine. Senior United States District Judge John M. Gerrard sentenced Brown to 63 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release. From February 2019, through May 2019, law enforcement utilized a confidential informant to purchase methamphetamine from Tina Smith and Taylor Brown for a total of 28 grams. In addition, cooperating witnesses indicated that they purchased four to five ounces from Brown. Smith was sentenced to 57 months’ imprisonment followed by a three-year term of supervised release. This case was investigated by the Federal Bureau of Investigation and the McCook Police Department.


title: Fort Worth Fentanyl Traffickers Sentenced

component: USAO - Texas, Northern

body_text: Two fentanyl traffickers were sentenced to a combined 23 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Steven Keys, 28, and Rico Marion, 26, were indicted in August 2022. The following month, Mr. Keys pleaded guilty to conspiracy to possess with intent to distribute a controlled substance; Mr. Marion pleaded guilty to the same charge shortly thereafter. Mr. Keys was sentenced in February to 151 months in federal prison, and Mr. Marion was sentenced Tuesday to 135 months in federal prison. “HSI is deeply committed to prosecuting those who bring illicit drugs into our communities,” said Todd Johnson, Assistant Special Agent in Charge HSI Dallas. “We hope these combined sentences send a direct message to the drug traffickers who peddle this poison that HSI will never relent in putting those away who have no regard for our nation’s laws.” According to court documents, Mr. Keys and Mr. Marion dealt fentanyl-laced counterfeit oxycodone pills out of a motel in Fort Worth. On July 12, 2022, after a surveillance team posted at the motel observed an apparent drug sale, law enforcement pulled Mr. Keys and Mr. Marion over on traffic violations. Inside the vehicle, investigators discovered a Louis Vuitton bag containing $7,129 cash, likely derived from the sale of illegal drugs. The following day, law enforcement reviewed surveillance footage from convenience stores where open-air narcotics sales are known to occur and observed Mr. Keys and others dealing drugs from the vehicle. They tracked the vehicle back to the motel and sent a confidential source into the room to purchase fentanyl pills. The confidential source stated he purchased five small blue pills – which he turned over to agents – from Mr. Keys. Agents arrested Mr. Keys without incident that evening. They arrested Mr. Marion in the motel room after breaching the door and deploying gas inside the motel. A search of the room uncovered a black backpack containing approximately 1,000 fentanyl-laced blue pills, a .40 caliber handgun on the bed, and a plastic baggy of marijuana inside the toilet. Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.