title: New Jersey Man Pleads Guilty to Federal Hate Crime for Breaking into Center for Islamic Life at Rutgers University and Destroying Property

component: Civil Rights Division

body_text: A New Jersey man pleaded guilty yesterday to a federal hate crime for breaking into the Center for Islamic Life at Rutgers University (CILRU) in New Brunswick, New Jersey, and destroying property. “This defendant is being held accountable for Islamophobic-fueled acts of hate, interfering with the religious freedom of university students and staff during a sacred holiday for those of the Islamic faith,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department stands ready, along with our state and local partners, to hold accountable people who use force, or threats of violence, in order to intimidate people from exercising their religious beliefs. Islamophobic hate crimes have no place in our society today. We will continue to enforce the laws that make it safe for people of all faiths to engage in religious observance, including at educational institutions.” “The free exercise of religion is a fundamental right of all Americans,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Jacob Beacher admitted he intentionally broke into the Center for Islamic Life during the holy Eid-al-Fitr holiday and damaged and destroyed religious artifacts because of the Islamic faith of those associated with the facility. This office will not tolerate the use of force or threats to intimidate people and put them in fear of worshipping as they see fit.” “When we learned of this vandalism back in April, we immediately engaged with our law enforcement partners and Rutgers University,” said Acting Special Agent in Charge Nelson I. Delgado of the FBI Newark Field Office. “Within days, we tracked down and arrested Beacher. We want our actions and the speed with which we responded to illustrate our commitment and resolve to protect houses of worship in New Jersey. We all have the right to practice whatever religion we choose, without fear of hate marring the physical and spiritual place where we do it.” According to court documents, on or about April 10, at approximately 2:39 a.m., during the Eid- al-Fitr holiday, video surveillance footage showed Jacob Beacher, 24, walking toward the rear door of the CILRU. Soon after, at approximately 2:41 a.m., an intruder, later determined to be Beacher, forcibly entered the CILRU through its back door. Specifically, Beacher broke a glass pane on the door, pushed through a piece of plexiglass that was affixed to the interior side of the door and then manually opened the door from the inside by reaching through the broken glass to unlatch a deadbolt lock. Once inside the CILRU, Beacher damaged the CILRU’s property, including several religious artifacts, such as Turbah prayer stones and numerous items that contained holy language from the Qur’an, Islam’s sacred scripture. Beacher also stole a Palestinian flag and at least one charity box belonging to the CILRU. A sentencing hearing will be scheduled for a later date. Beacher faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors. The FBI Newark Field Office, Branchburg Resident Agency, New Jersey Attorney General’s Office, Middlesex County Prosecutor’s Office, Rutgers University Police Department-New Brunswick Division and New Jersey Regional Computer Forensics Laboratory investigated the case. Assistant U.S. Attorneys Benjamin Levin and R. Joseph Gribko for the District of New Jersey and Trial Attorney Daniel Grunert of the Justice Department’s Civil Rights Division are prosecuting the case.


title: TD Bank Pleads Guilty to Bank Secrecy Act and Money Laundering Conspiracy Violations in $1.8B Resolution

component: Office of the Attorney General

body_text: WASHINGTON — TD Bank N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, TD Bank) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. TDBNA pleaded guilty to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs. TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve Board (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN). “By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.” “For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.” “For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department's Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.” “TD Bank prioritized growth and convenience over following its legal obligations,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.” According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime. Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.” Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them. TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals. As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution. The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation. IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and New York City Police Department provided substantial assistance. Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Mark J. Pesce and Angelica Sinopole for the District of New Jersey prosecuted the case. MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF . TD Bank US Holding Company Information TD Bank N.A. Information TD Bank US Holding Company Plea Agreement and Attachments TD Bank N.A. Plea Agreement and Attachments


title: Spokane Man Involved in Robbery of Large Amount of Methamphetamine and Fentanyl Sentenced to Federal Prison

component: USAO - Washington, Eastern

body_text: Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Brady Baughman, age 34, of Spokane, Washington, was sentenced after pleading guilty to one count of Robbery Affecting Commerce and one count of Possession with Intent to Distribute 30 Grams or More of Fentanyl. United States District Judge Mary K. Dimke imposed a sentence of 120 months imprisonment to be followed by 5 years of supervised release. According to court documents and information presented at the sentencing hearing, on February 6, 2022, Baughman went to a stash house in Spokane to buy a large quantity of methamphetamine and fentanyl from a drug trafficking organization operating in Spokane. Baughman presented $12,000.00 of counterfeit U.S. currency to members of the drug trafficking organization. Immediately recognizing that the buy money was counterfeit, the sellers declined the sale. Baughman then robbed drug couriers who were entering the stash house carrying controlled substances inside a kitty litter bucket and a backpack. Baughman then sped off in his vehicle with the stolen drugs. Members of the drug trafficking organization attempted to find Baughman. They ultimately tracked Baughman near the intersection of Nettleton and Rowan in Spokane and fired several shots at his vehicle during high-speed pursuit. Baughman fled from the vehicle with the kitty litter bucket and backpack. Immediately thereafter, Spokane Police Department (SPD) located the kitty litter bucket and backpack, abandoned, lying in the parking lot of a business nearby. The kitty litter bucket contained approximately 16 pounds of Methamphetamine. The backpack contained 50,441 fentanyl laced pills. After an arrest warrant was issued for his involvement with the robbery, on August 12, 2022, SPD located Baughman after an SPD officer observed Baughman driving a motorcycle more than 55 mph in a 30-mph zone. The SPD officer activated his lights and attempted a traffic stop. Baughman refused to pull over, ran several stop signs and traffic lights, and sped off into a residential neighborhood. The SPD officer was required to abandon his pursuit. A few minutes later, Baughman crashed his motorcycle and sustained a serious head injury. Inside a backpack Baughman was carrying, SPD officers found a loaded 9mm pistol and 1,178 fentanyl pills. When Baughman, who was in the hospital being treated for injuries from the motorcycle crash, became aware he had been indicted and was wanted by law enforcement, he fled the medical center. After remaining a fugitive for almost a year, on March 28, 2023, Baughman was located and arrested on his outstanding warrants. During a search incident to arrest, officers located a blue bottle with 100 fentanyl laced pills. During a search of the car, SPD found an additional 1,500 fentanyl laced pills. “The scope of Mr. Baughman’s criminal conduct is shocking. From the robbery of a large amount of deadly drugs, to a high-speed getaway with shots fired, and including a reckless attempt to avoid law enforcement that ended with serious injury, Mr. Baughman’s actions repeatedly put our community in danger,” stated U.S. Attorney Waldref. “I’m grateful for our close partnerships with local and federal law enforcement who work to hold people like Mr. Baughman accountable for their actions and make Eastern Washington safer and stronger.” “This case is a snapshot of the threats to the community posed by drug traffickers like Mr. Baughman,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “He engaged in reckless and violent behavior, all while trying to poison our community with fentanyl and methamphetamine for his personal gain. I am proud of the efforts of the Drug Enforcement Administration and our partners in safely bringing this case to a conclusion.” This case was investigated by the Drug Enforcement Administration and the Spokane Police Department. It was prosecuted by Assistant United States Attorney Stephanie Van Marter. 2:22-cr-00072-MKD


title: Former Tacoma, Washington, attorney indicted for embezzling more than half million from client’s trust account

component: USAO - Washington, Western

body_text: Seattle – A former Tacoma lawyer is indicted for twelve counts of wire fraud for his embezzlement from a vulnerable client’s trust account, announced U.S. Attorney Tessa M. Gorman. Colby Parks, 65, allegedly stole more than $570,000 from a client who had been awarded about$1.66 million due to significant permanent injuries she suffered in a motorcycle accident. Parks will make his initial appearance at 2:00 today. According to the indictment, in 2010 Parks became the trustee for a living trust designed to pay the victim’s expenses after she was severely injured as a passenger on a motorcycle. Initially, the victim’s trust account contained approximately $1.66 million. However, over the first seven years that Parks was the trustee, he siphoned the funds in such large amounts that only $20,000 was left. In 2018, Parks had the victim take out a reverse mortgage on her home and twice used the proceeds to fund the trust account. He continued to make transfers from the account for his own use. Records from the account show that Parks repeatedly transferred funds to his own bank accounts and then, on the same day or soon thereafter, Parks would make a payment for a personal credit card for the same amount as the transfer. By the end of 2019, the victim’s accounts held only $15. She was forced to sell her home. And even then, Parks diverted proceeds from the sale by claiming the victim owed him money he had advanced to her. According to the indictment, Parks repeatedly told the defendant she was spending too much money, when in fact, the amount that the victim received as cash disbursements was a fraction of the amount that Parks secretly siphoned for himself. According to the indictment, when Washington State’s Adult Protective Services investigated Parks’ representation of the victim, Parks initially claimed he was only paid a flat rate of $24,000 per year. After Adult Protective Services requested supporting documentation, Parks revised his statement and said he was paid varying amounts that averaged over $54,000 per year. However, the indictment alleges that Parks, in fact, collected well over $80,000 per year from the victim. The Washington State Bar also investigated the matter, and Parks resigned his law license instead of discipline, which could have been disbarment. Wire fraud is punishable by up to 20 years in prison. 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 FBI. The case is being prosecuted by Assistant United States Attorney Cindy Chang.


title: Ithaca Man Sentenced to Serve 24 Months in Federal Prison for Pandemic Loan Fraud

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK – Ejembi Onah, age 61, of Ithaca, New York, was sentenced to serve 24 months in federal prison yesterday following trial convictions for two counts of wire fraud and three counts of transacting in criminally derived property for fraudulently obtaining two Paycheck Program (PPP) loans during the pandemic, receiving over $140,000 in loan proceeds, and spending those proceeds, among other things, in three separate transactions each exceeding $10,000. United States Attorney Carla B. Freedman; Thomas Fattorusso, Executive Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (IRS-CI); and Erin Keegan, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement. PPP loans were United States Small Business Administration (SBA)-guaranteed, forgivable loans authorized in the Coronavirus Aid Relief, Economic Security (CARES) Act, which was enacted in March 2020 to provide emergency financial assistance to Americans suffering adverse economic effects from the COVID-19 pandemic. The government’s evidence at Onah’s October 2023 non-jury trial established that Onah submitted two fraudulent PPP loan applications to two different lenders in June 2020. Each application included false information about the payroll and number of employees at Onah’s company, which he claimed was engaged in a seasonal nanotechnology business and were supported by falsified tax returns. Onah spent the more than $140,000 he received to, among other things, pay back rent at his personal residence, lease a luxury car, and pay for his daily living expenses. United States District Judge David N. Hurd also ordered that Onah serve a two-year term of supervised release following his release from prison and pay $218,983.32 in restitution to his victims. IRS-CI and HSI investigated the case. Assistant United States Attorneys Michael D. Gadarian and Joshua R. Rosenthal prosecuted the case. 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: U.S. Attorney’s Office Reaches Settlement with Inland Northwest Behavioral Health to Ensure Compliance with the Americans with Disabilities Act

body_text: Spokane, WA – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Inland Northwest Behavioral Health has agreed to take remedial measures over the next two years and pay ten thousand dollars in compensatory damages to resolve alleged violations of Title III of the Americans with Disability Act (ADA). A former patient of Inland Northwest Behavioral Health alleged that he was required to provide documentation of a service animal in violation of the ADA’s requirements, that he was not allowed to conduct visitation indoors with the service animal, and that he was segregated from other patients of Inland Northwest Behavioral Health while utilizing the service animal. Inland Northwest Behavioral Health fully and promptly cooperated with the investigation and agreed to take concrete remedial measures to comply with the ADA. Under the terms of the settlement, Inland Northwest Behavioral Health is required to pay $10,000 in compensatory damages to the individual with disabilities. The settlement further requires Inland Northwest Behavioral Health to undertake the following: Implement and utilize a written Title III ADA service animal policy Require annual employee training addressing the requirements of the ADA Conspicuously post notices to patients and employees at the facility that service animals are welcome Submit reports to the United States Attorney’s Office every twelve months for the next two years certifying full compliance with all remedial terms of the agreement and self-reporting any allegations of violations of the ADA so they can be fully investigated. “The Americans with Disabilities Act provides individuals many protections, including the use of service animals. This agreement compels Inland Northwest Behavioral Health to take steps to make sure this right is protected for individuals in the future.” stated U.S. Attorney Waldref. “My office will continue to protect the civil rights of all citizens in our district.” The settlement was the result of a complaint filed on ADA.gov and the resulting investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington. The public is encouraged to report suspected ADA violations at ADA.gov, or individuals can report suspected ADA violations directly to the U.S. Attorney’s Office at USAWAE.CivilRights@usdoj.gov or by calling the Civil Rights Complaint Line at (509) 835-6306. The full settlement agreement, including the required Service Animal Policy, is available at the bottom of this page. Assistant United States Attorney Jacob E. Brooks of the Eastern District of Washington handled the matter on behalf of the United States. settlement_agreement_sept_2024_v.1.pdf


title: Los Angeles County Man Sentenced for Identity Theft Offenses

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Sean Lamont Wyatt, 47, of Los Angeles County, was sentenced Wednesday to two years and six months in prison for committing identity theft and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced. According to court documents, in June 2021, 27 pages of victims’ personally identifiable information were found in Wyatt’s assigned inmate bunk at the federal prison in Atwater. Investigation revealed that while Wyatt was incarcerated, he used a contraband phone to call victims’ banks and creditors. In the phone calls, Wyatt used the victims’ names, dates of birth, addresses, and social security numbers to falsely identity himself and to add himself as an authorized user on the victims’ accounts. Wyatt did this to boost his own credit and then to apply for new credit lines. This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Brittany M. Gunter prosecuted the case.


title: Theology Professor Charged With Possessing Pornographic Images of Toddlers

component: USAO - Texas, Northern

body_text: A theology professor who allegedly stored pornographic images of children on his work computer has been federally charged, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Charles Kilby Bellinger, 62, a professor of theology and librarian at the Brite Divinity School at Texas Christian University, was charged via criminal complaint with possession of child pornography and arrested on Oct. 4. The federal investigation began after TCU’s IT staff reported they had detected pornographic images with concerning file names, including “infant” and “toddler,” on Dr. Bellinger’s work computer. On a hard drive and an SD card removed from Dr. Bellinger’s office, investigators found multiple sexually explicit images of pre-pubescent minors. At a detention hearing on Thursday, an agent testified that law enforcement also seized multiple encrypted devices from a locked safe in his office. Forensic investigation of those devices is ongoing. A criminal complaint is merely an allegation of criminal conduct, not evidence. Like all defendants, Dr. Bellinger is presumed innocent until proven guilty in a court of law. If convicted, he faces up to 20 years in federal prison. The U.S. Secret Service and the Fort Worth Police Department’s Internet Crimes Against Children Unit conducted the investigation with the Texas Christian University Campus Police. Assistant U.S. Attorney Aisha Saleem is prosecuting the case.


title: Magellan Diagnostics Sentenced for Concealing Malfunction in Lead Testing Devices

component: USAO - Massachusetts

body_text: BOSTON –Magellan Diagnostics, Inc., a medical device company headquartered in Billerica, Mass., was sentenced yesterday in federal court in Boston for criminal charges related to the concealment of a device malfunction that produced inaccurately low lead test results for tens of thousands of children and other patients. Magellan has been ordered to pay a $21.8 million fine, $10.9 million in forfeiture and a minimum of $9.3 million to compensate patient victims. Magellan pleaded guilty to two counts of introducing a misbranded medical device into interstate commerce. Magellan was charged criminally on May 21, 2024 “Keeping the people of Massachusetts safe takes a variety of forms. In the case of Magellan Diagnostics, it means protecting children who may have been exposed to dangerous levels of lead that can lead to serious health consequences. This company has admitted that it left lead blood level monitoring devices in pediatricians’ offices that it knew were providing inaccurately low readings, putting thousands of kids at risk of not having their elevated lead levels accurately diagnosed. In addition to holding the company accountable, this criminal sentence requires the company to undertake an extensive effort to identify and compensate victims.” “Medical device makers have an obligation to provide truthful information to protect patients. By deliberately concealing and consistently misleading consumers and the FDA about device malfunctions, Magellan acted with gross disregard for its responsibility to comply with FDA requirements and put patients at risk,” said Fernando McMillian, Special Agent in Charge, FDA Office of Criminal Investigations, New York Field Office. “We will continue to thoroughly investigate those whose actions undermine the integrity of the FDA regulatory process which exists to protect consumer health.” “It’s absolutely appalling that Magellan Diagnostics was more concerned about its bottom line than it was about coming clean to their customers and the FDA about a serious malfunction in its lead testing devices that we believe unnecessarily endangered the health of incredibly vulnerable victims,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “When you’re not feeling well, and you’re trying to find out why, the last thing you should have to worry about is whether the diagnostic test you’re relying on lives up to its manufacturer’s claims. The FBI is grateful to see that the victims affected by Magellan’s actions in this case are one step closer to being compensated.” “Magellan concealed a serious flaw in its lead testing devices while ignoring the well-being of patients and knowingly providing inaccurate results of lead levels in the blood,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “This type of egregious conduct, which only sought to benefit the corporate bottom line, can erode the public’s trust in our nation’s health care system. Today’s sentencing should send a clear message that any company engaging in such dangerous activity will be held accountable.” Magellan’s LeadCare Ultra and LeadCare II devices detected lead levels and lead poisoning in the blood of children and adults using either venous (blood draws through the arm) or fingerstick samples. LeadCare II, which was predominantly used to test fingerstick samples, accounted for more than half of all blood lead tests conducted in the United States from 2013 through 2017. LeadCare Ultra was predominantly used to test venous samples. According to court documents, Magellan failed to timely notify the FDA about a serious malfunction that caused the company’s LeadCare devices to produce inaccurate blood lead level results when used to test venous blood samples. Magellan also changed the user instructions for the LeadCare devices without prior FDA notice or approval. Magellan first learned that a malfunction in its LeadCare Ultra device could cause inaccurate lead test results – specifically, lead test results that were falsely low – during the FDA clearance process in June 2013. Magellan, however, released LeadCare Ultra to the market in late 2013 without informing customers or the FDA of the malfunction. In August 2014, LeadCare Ultra customers independently discovered the malfunction and complained about inaccurate results. FDA regulations required the company to file a medical device report about the malfunction within 30 days, but Magellan did not do so. In November 2014, Magellan sent a letter to its LeadCare Ultra customers advising them of the malfunction and recommending that they wait 24 hours before running their tests. This contradicted the instructions for use approved by the FDA. Magellan did not, however, report the malfunction to the FDA or advise the FDA of its change to the instructions until April 2015, nearly 21 months after Magellan discovered the malfunction and almost 8 months after customers discovered the malfunction on their own. In August 2015, Magellan changed the label instructions for the LeadCare Ultra device to require users to wait 24 hours before using the device to test blood samples, rather than testing the samples immediately. FDA regulations required the company to provide advance notice of the label change and file necessary reports of device correction, but Magellan did neither. Magellan’s testing in 2013 also indicated that the same malfunction affected the LeadCare II device when it was used to test venous samples. Magellan, however, did not notify the FDA about the LeadCare II malfunction until November 2016. The FDA ultimately found that the LeadCare devices could not accurately test venous samples, leading to a recall of all LeadCare devices using venous samples and a warning to the public not to use LeadCare Ultra, LeadCare II or LeadCare Plus for testing venous blood samples because of the malfunction and a recommendation that doctors retest certain patients. According to the Centers for Disease Control and Prevention, there is no safe level of lead in the blood. Lead exposure may cause irreversible lifelong physical and mental health problems. Young children and pregnant women are most vulnerable to lead exposure, especially those from low-income households and those who live in housing built before 1978 because those homes are more likely to contain lead-based paint and have fixtures containing lead. As part of the criminal resolution, Magellan has agreed to compensate patients who were demonstrably harmed for the economic damages they suffered as a result of the malfunction in Magellan’s blood lead testing devices. If you or a family member believe you received an inaccurate blood lead test result from a LeadCare device between 2013–2017, please complete the questionnaire located on the FBI’s website at www.fbi.gov/MagellanCaseInquiry . Information about the status of the case is located on the U.S. Attorney’s Office website: https://www.justice.gov/usao-ma/victim-and-witness-assistance-program/magellan-diagnostics-inc . Acting U.S. Attorney Levy; FDA SAC McMillan; FBI SAC Cohen; and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorneys James Herbert, Kelly Lawrence and Leslie Wright of the Health Care Fraud Unit prosecuted the case.


title: Ohio Man Sentenced for Creating and Distributing Videos Depicting Monkey Torture and Mutilation

component: Energy and Natural Resources Division

body_text: An Ohio man was sentenced today to 54 months in prison and three years of supervised release in connection with his involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys. According to court documents, Ronald P. Bedra, of Etna, conspired with others to create and distribute videos depicting acts of sadistic violence against baby and adult monkeys. The conspirators used encrypted chat applications to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin. According to a statement of facts signed by defendant Bedra, the videos in question included depictions of monkeys having their digits and limbs severed and monkeys being forcibly sodomized with a heated screwdriver. Bedra pleaded guilty in April . “Defendant Ronald Bedra commissioned grotesque videos of torture of juvenile and baby monkeys,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Such appalling conduct has no place in our society. The Justice Department stands ready to prosecute individuals engaging in this activity to the fullest extent of the law.” “We will punish participants of sadistic conspiracies like this one no matter their role in the crime,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “As this case shows, even if you do not commit the torture firsthand, you will be held accountable for promoting this obscene animal abuse.” “The torture of animals in this case is disturbing, cruel and illegal,” said Special Agent in Charge Elena Iatarola of FBI’s Cincinnati Field Office. “The FBI and our partners will continue to work to protect defenseless animals and investigate those who intentionally harm them.” “Today’s sentencing underscores the U.S. Fish and Wildlife Service’s unwavering commitment to combating the exploitation of wildlife in any form,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “These monstrous crimes are indefensible. This case serves as a stark reminder that those who harm animals protected under federal and international laws and treaties will face serious consequences. We continue to work diligently with our partners to identify and prosecute individuals engaged in these cruel activities to the fullest extent of the law.” The FBI and U.S. Fish and Wildlife Service investigated the case. Homeland Security Investigations provided critical assistance. Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.


title: Protestor Federally Charged with Assault on Officers During the July 24 Demonstration in Washington D.C.

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Zachary Kam, 24, of Chicago, IL, was arrested this morning in connection with a federal criminal complaint charging him with assault on two law enforcement officers during a demonstration at Columbus Circle in front of Union Station in Washington, D.C., on July 24, 2024. The charges were announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office Counterterrorism Division, and Chief Jessica M. E. Taylor of the National Park Service’s United States Park Police (USPP). Kam will make his initial appearance this afternoon in the U.S. District Court for the Northern District of Illinois. He is charged with two counts of assaulting, resisting, opposing, intimidating, interfering, or impeding certain officers or employees. “Assaulting a federal officer during the course of a protest is not constitutionally protected speech, it is a federal crime,” said U.S. Attorney Graves. “Tens of thousands of people peacefully protest in our Capital every year. It is a federal crime to punch, push, grab, or shove a federal officer. The relatively few who engage in such conduct during a protest should expect to be federally charged.” According to court documents, on July 24, 2024, an organization was granted a permit to demonstrate in the area of Columbus Circle, located at Massachusetts Ave. NE, and E St. NE, directly in front of Union Station. From about 3 p.m. until 5 p.m., demonstrators who had gathered in Columbus Circle pulled down flags affixed to the flagpoles; burned flags and objects; sprayed graffiti on multiple statutes and structures; and interfered with law enforcement’s ability to place individuals under arrest. On July 24, 2024, at approximately 3 p.m., USPP officers were attempting to arrest an individual for pulling down a flag from a flagpole in Columbus Circle. The individual fled and USPP officers caught up with him in the crowd. As USPP officers were effecting that arrest, Kam approached USPP Officer L.I. from behind, grabbed the top of the officer’s vest, pulled the officer to the ground, and dragged the officer several feet. The assault was captured in multiple videos and photos, later shared on Twitter and other platforms, as well as USPP body-worn camera. Kam then dashed into the crowd, but other police were unable to catch him. Less than a minute later, Kam returned, grabbed another officer by his vest and pulled that officer to the ground. The second assault was also captured on multiple open-source videos that were later posted to various internet platforms. After the second assault, the attacker again disappeared into the crowd. At the time of the assaults, Kam was wearing a red and blue hat, gray t-shirt, a tan camouflage vest, blue jeans, and black shoes. USPP Officers who were stationed in an observation post near Columbus Circle broadcasted Kam’s description over police radio. At 7:13 p.m., USPP Officers near John Marshall Park, which is located on the 400 Block of C Street Northwest, spotted an individual that matched the individual’s description, who was later identified as Zachary Kam. After being stopped by USPP, Kam was placed under arrest and charged in the Superior Court for the District of Columbia with assaulting a police officer. This case is being investigated by the USPP’s Intelligence and Counterterrorism Unit and the FBI Washington Field Office, with assistance from the FBI Chicago Field Office. It is being prosecuted by Assistant U.S. Attorney Sarah Martin. A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: South Bend Man Sentenced to 110 Months in Prison

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

body_text: SOUTH BEND – Tony Young, 54 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Young was sentenced to 110 months in prison followed by 3 years of supervised release. According to documents in the case, in March and April 2024, law enforcement was investigating drug activity at a Mishawaka residence, which included the sale of methamphetamine by Young. A search warrant of the residence resulted in the recovery of a loaded stolen revolver. Young, who has a number of prior felony convictions, was prohibited from possessing the firearm in this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration with assistance from the Mishawaka Police Department and the Indiana State Police. The case was prosecuted by Assistant United States Attorney Joel Gabrielse. 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.


component: USAO - New Jersey

body_text: NEWARK, N.J. – TD Bank, N.A. (TDBNA), the 10th largest bank in the United States, and its parent company TD Bank US Holding Company (TDBUSH) (together with TDBNA, “TD Bank”) pleaded guilty today and agreed to pay over $1.8 billion in penalties to resolve the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s investigation into violations of the Bank Secrecy Act (BSA) and money laundering. TDBNA pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to conspiring to fail to maintain an anti-money laundering (AML) program that complies with the BSA, fail to file accurate Currency Transaction Reports (CTRs), and launder money. TDBUSH pleaded guilty to causing TDBNA to fail to maintain an AML program that complies with the BSA and to fail to file accurate CTRs. TD Bank’s guilty pleas are part of a coordinated resolution with the Board of Governors of the Federal Reserve System (FRB), as well as the Treasury Department’s Office of the Comptroller of the Currency (OCC) and Financial Crimes Enforcement Network (FinCEN). “By making its services convenient for criminals, TD Bank became one,” said Attorney General Merrick B. Garland. “Today, TD Bank also became the largest bank in U.S. history to plead guilty to Bank Secrecy Act program failures, and the first US bank in history to plead guilty to conspiracy to commit money laundering. TD Bank chose profits over compliance with the law — a decision that is now costing the bank billions of dollars in penalties. Let me be clear: our investigation continues, and no individual involved in TD Bank’s illegal conduct is off limits.” “TD Bank prioritized growth and convenience over following its legal obligations. As a result of staggering and pervasive failures in oversight, it willfully failed to monitor trillions of dollars of transactions – including those involving ACH transactions, checks, high-risk countries, and peer-to-peer transactions – which allowed hundreds of millions of dollars from money laundering networks to flow through the bank, including for international drug traffickers. The bank was aware of these risks and failed to take steps to protect against them, including for two networks prosecuted in New Jersey and elsewhere – one that dumped piles of cash on the bank’s counters and another that allegedly withdrew amounts from ATMs 40 to 50 times higher than the daily limit for personal accounts.” U.S. Attorney Philip R. Sellinger “For years, TD Bank starved its compliance program of the resources needed to obey the law. Today’s historic guilty plea, including the largest penalty ever imposed under the Bank Secrecy Act, offers an unmistakable lesson: crime doesn’t pay — and neither does flouting compliance,” said Deputy Attorney General Lisa Monaco. “Every bank compliance official in America should be reviewing today’s charges as a case study of what not to do. And every bank CEO and board member should be doing the same. Because if the business case for compliance wasn’t clear before — it should be now.” “For nearly a decade, TD Bank failed to update its anti-money laundering compliance program to address known risks. As bank employees acknowledged in internal communications, these failures made the bank an ‘easy target’ for the ‘bad guys.’ These failures also allowed corrupt bank employees to facilitate a criminal network’s laundering of tens of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “U.S. financial institutions are the first line of defense against money laundering and illicit finance. When they participate in crime rather than prevent it, we will not hesitate to hold them accountable to the fullest extent of the law.” According to court documents, between January 2014 and October 2023, TD Bank had long-term, pervasive, and systemic deficiencies in its U.S. AML policies, procedures, and controls but failed to take appropriate remedial action. Instead, senior executives at TD Bank enforced a budget mandate, referred to internally as a “flat cost paradigm,” requiring that TD Bank’s budget not increase year-over-year, despite its profits and risk profile increasing significantly over the same period. Although TD Bank maintained elements of an AML program that appeared adequate on paper, fundamental, widespread flaws in its AML program made TD Bank an “easy target” for perpetrators of financial crime. Over the last decade, TD Bank’s federal regulators and TD Bank’s own internal audit group repeatedly identified concerns about its transaction monitoring program, a key element of an appropriate AML program necessary to properly detect and report suspicious activities. Nonetheless, from 2014 through 2022, TD Bank’s transaction monitoring program remained effectively static, and did not adapt to address known, glaring deficiencies; emerging money laundering risks; or TD Bank’s new products and services. For years, TD Bank failed to appropriately fund and staff its AML program, opting to postpone and cancel necessary AML projects prioritizing a “flat cost paradigm” and the “customer experience.” Throughout this time, TD Bank intentionally did not automatically monitor all domestic automated clearinghouse (ACH) transactions, most check activity, and numerous other transaction types, resulting in 92% of total transaction volume going unmonitored from Jan. 1, 2018, to April 12, 2024. This amounted to approximately $18.3 trillion of transaction activity. TD Bank also added no new transaction monitoring scenarios and made no material changes to existing transaction monitoring scenarios from at least 2014 through late 2022; implemented new products and services, like Zelle, without ensuring appropriate transaction monitoring coverage; failed to meaningfully monitor transactions involving high-risk countries; instructed stores to stop filing internal unusual transaction reports on certain suspicious customers; and permitted more than $5 billion in transactional activity to occur in accounts even after the bank decided to close them. TD Bank’s AML failures made it “convenient” for criminals, in the words of its employees. These failures enabled three money laundering networks to collectively transfer more than $670 million through TD Bank accounts between 2019 and 2023. Between January 2018 and February 2021, one money laundering network processed more than $470 million through the bank through large cash deposits into nominee accounts. The operators of this scheme provided employees gift cards worth more than $57,000 to ensure employees would continue to process their transactions. And even though the operators of this scheme were clearly depositing cash well over $10,000 in suspicious transactions, TD Bank employees did not identify the conductor of the transaction in required reports. In a second scheme between March 2021 and March 2023, a high-risk jewelry business moved nearly $120 million through shell accounts before TD Bank reported the activity. In a third scheme, money laundering networks deposited funds in the United States and quickly withdrew those funds using ATMs in Colombia. Five TD Bank employees conspired with this network and issued dozens of ATM cards for the money launderers, ultimately conspiring in the laundering of approximately $39 million. The Justice Department has charged over two dozen individuals across these schemes, including two bank insiders. TD Bank’s plea agreement requires continued cooperation in ongoing investigations of individuals. As part of the plea agreement, TD Bank has agreed to forfeit $452,432,302.00 and pay a criminal fine of $1,434,513,478.40, for a total financial penalty of $1,886,945,780.40. TD Bank has also agreed to retain an independent compliance monitor for three years and to remediate and enhance its AML compliance program. TD Bank has separately reached agreements with the FRB, OCC, and FinCEN, and the Justice Department will credit $123.5 million of the forfeiture toward the FRB’s resolution. The Justice Department reached its resolution with TD Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offenses, as a result of which TD Bank became the bank of choice for multiple money laundering organizations and criminal actors and processed hundreds of millions of dollars in money laundering transactions. Although TD Bank did not voluntarily disclose its wrongdoing, it received partial credit for its strong cooperation with the Department’s investigation and the ongoing remediation of its AML program. TD Bank did not receive full credit for its cooperation because it failed to timely escalate relevant AML concerns to the Department during the investigation. Accordingly, the total criminal penalty reflects a 20% reduction based on the bank’s partial cooperation and remediation. IRS Criminal Investigation, Federal Deposit Insurance Corporation Office of Inspector General, and Drug Enforcement Administration investigated the case. The Morristown Police Department, the U.S. Attorney’s Office for the District of Puerto Rico, Homeland Security Investigations, U.S. Customs and Border Protection, and the New York City Police Department provided substantial assistance. Assistant U.S. Attorneys Mark J. Pesce of the Economic Crimes Unit and Angelica Sinopole for the District of New Jersey’s Health Care Fraud Unit and Trial Attorneys D. Zachary Adams and Chelsea R. Rooney of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted the case. MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system. Since its creation in 2010, the Bank Integrity Unit has prosecuted financial institutions for violations of the BSA, money laundering, sanctions, and other laws, imposing total penalties of over $25 billion. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . tdbush.information.pdf tdbna.information.pdf


title: Justice Department Concurs with Federal Trade Commission’s Changes to Premerger Notification Form Used in Merger Review

component: Antitrust Division

body_text: The Justice Department’s Antitrust Division announced today its concurrence with the Federal Trade Commission (FTC)’s unanimous vote to finalize changes to the premerger notification form and associated instructions, as well as to the premerger notification rules implementing the Hart-Scott-Rodino (HSR) Act. The final rule , which was adopted after a rigorous public comment process, marks the first large-scale material update to the HSR form since it was first established in 1978. The rule will address critical gaps in the information available to the Justice Department and the FTC (the Agencies) when they review merger filings, making the Agencies’ initial review more efficient and effective. In response to public comment on the proposed rule, the final rule contains many changes aimed at reducing the burden on parties while still improving the information the Agencies receive to help streamline initial merger review. “Access to better information at the beginning of the merger review process ensures that the antitrust agencies can devote our resources to the most important issues and reduces the burden on filers, third parties, and other market participants,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “I’m grateful to the Commissioners who have worked diligently to evaluate the public comments to develop the excellent rule.” Under the HSR Act, parties to certain mergers and acquisitions are required to submit premerger notification forms that disclose certain information about their proposed deal and business operations. The Agencies use this information to conduct a premerger assessment in the short time allowed under the HSR Act, typically 30 days, to determine which transactions may violate the antitrust laws, and thus require additional review. The requests added to the HSR form reflect the dramatic changes over the past four decades in global markets and in how mergers and acquisitions are conducted. These additions include: Requiring parties to submit transaction-related documents prepared by or for the supervisory leader of the deal team; Requiring parties to describe their principal categories of products and services as reflected in the parties’ ordinary course business documents; Requiring disclosure of additional information about the buyer’s officers, directors, and investors, including those with management rights over the firm; and Ensuring the Agencies have access to translations of all documents submitted in a language other than English. This additional information will enable the Agencies to streamline their initial reviews and make decisions more quickly. In some circumstances, it will allow the Agencies to evaluate a merger without opening a preliminary investigation or seeking additional information through a second request. In this way, the final rule complements the FTC’s decision to lift its temporary suspension on early termination of HSR filings. When additional information is necessary to review a merger, the final rule will enable the Agencies to issue more targeted requests, reducing the time and effort required to respond. Under the prior form, the Agencies routinely had to rely on third parties, many of whom were small businesses, to fill in informational gaps. By helping to fill some of these gaps, the final rule can alleviate the burden on third parties as well. The new information required by the final rule is already within the possession of the filing parties. The rule was carefully structured to provide the Agencies with important additional factual and documentary information that is readily available to the merging parties. Moreover, the Agencies carefully reviewed the hundreds of public comments filed in response to the proposed rule and made substantial changes to reduce the burden on merging parties. The final rule differs from the proposed rule in many ways, including among other things, eliminating the requirements to: Submit preliminary drafts of deal-related documents; Collect and produce ordinary course documents from people who report directly to the CEO; Provide information about employees’ commuting zones and occupation classifications; Report prior acquisitions that are more than five years old or involve entities with less than $10 million in sales or revenue; and Certify that the filer took steps to preserve documents. These changes eliminated substantial costs to filing parties while ensuring that the Agencies will receive the additional information they require to more effectively and efficiently review merger filings. The final rule will be effective 90 days after it is published in the Federal Register.


title: Providence Man Sentenced for Trafficking Methamphetamine

body_text: PROVIDENCE, RI – A Providence man who participated in a conspiracy to possess and distribute large quantities of methamphetamine has been sentenced to six years in federal prison, announced United States Attorney Zachary A. Cunha. Charles Bersch, 40, was sentenced today by U.S. District Court Judge Mary S. McElroy to 72 months of incarceration to be followed by three years of supervised release. Bersch pleaded guilty on February 5, 2024, to a charge of conspiracy to distribute and conspiracy to possess with intent to distribute five grams or more of methamphetamine, as well as a charge of possession with intent to distribute five grams or more of methamphetamine. According to information presented to the court, in May 2022, a member of the FBI Safe Streets Task Force was conducting surveillance outside a Cranston residence as part of an ongoing FBI investigation. While outside the residence, the task force officer saw Bersch and another person, Peter Walkovich, 30, of Pepperrell, MA, arrive by car and enter the building. The task force officer had developed information that Walkovich was in possession of a significant quantity of methamphetamine. After several minutes, Bersch and Walkovich left the residence with two other individuals and the four men drove off in the car that Bersch and Walkovich arrived in. An officer stopped the car a short distance from the residence. After making observations of suspicious behavior by Walkovich, the officer searched the care and found three backpacks , including one carried from the Cranston residence by Walkovich. Each backpack contained large quantities of methamphetamine. One of the backpacks contained $7,000 in cash. Four thousand dollars was also found inside the vehicle’s spare tire compartment. Lab tests later determined that all of the meth seized was between 97% and 100% pure. Walkovich pleaded guilty on July 20, 2023, to conspiracy to distribute and to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine. He was sentenced on September 6, 2023, to 48 months of incarceration to be followed by three years of supervised release. The cases were prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr. The matter was investigated by the FBI Safe Streets Task Force, consisting of agents and law enforcement officers from the FBI, Rhode Island State Police, the Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service. U.S. Attorney Cunha thanks the DEA for providing lab testing that determined the weight and the purity of the drugs seized. ###


title: Former Pharmaceutical Executive Sentenced for Falsifying Financial Documentation

component: USAO - Michigan, Eastern

body_text: DETROIT - A Northville man was sentenced Tuesday to one year and one day in prison, followed by two years of supervised release, for providing a financial institution with false documentation in connection with a bank loan, announced United States Attorney Dawn N. Ison. Ison was joined in the announcement by Special Agent in Charge Cheyvoryea Gibson, Federal Bureau of Investigation, Detroit Field Division Theodore Toloff, 65, entered his guilty plea in January before United States District Judge David M. Lawson. According to court records, Toloff served as the Chief Financial Officer of the Frank W. Kerr Company (“Kerr”), a now-defunct pharmaceutical wholesaler that was based in Novi, Michigan. Kerr had a revolving credit agreement with two large financial institutions under which the company borrowed funds up to $60 million pursuant to a calculation dependent on the company’s eligible accounts receivable and inventory. Toloff admitted that he submitted false documentation to the financial institutions that included $18 million in ineligible accounts receivable and that Kerr borrowed additional funds after this false documentation was submitted. The Court found that Toloff’s criminal conduct caused Kerr’s lenders to sustain a loss of $1.3 million, which Toloff was also ordered to pay back to the lenders as restitution. “Corporate executives should be held to the same standard of honesty as anyone else when they interact with lending institutions,” stated United States Attorney Dawn N. Ison. “When individuals lie to lenders, those lies cause loans to become more difficult and more expensive for honest consumers and businesses to access. My office is committed to ensuring that those who engage in dishonest financial crimes are held accountable.” "The defendant admitted to providing false documents to a financial institution, undermining the laws and integrity of our financial systems, said S pecial Agent in Charge Cheyvoryea Gibson of the FBI in Michigan . " The FBI works tirelessly with our law enforcement partners and regulatory agencies to investigate those who commit financial crimes. If you believe you have information related to financial crimes, I urge the public to submit tips on alleged crimes such as those detailed in this case to 1-800-CALLFBI (1-800-225-5324) or online at tips.fbi.gov ." The case was prosecuted by Assistant U.S. Attorney Andrew J. Yahkind. The investigation was conducted by the Federal Bureau of investigation.


title: Former Certified Public Accountant Pleads Guilty to Tax Evasion

body_text: DETROIT – A Walled Lake resident and former Certified Public Accountant pleaded guilty today to evading approximately $318,000 in federal income taxes, United States Attorney Dawn N. Ison announced. Ison was joined in the announcement by Special Agent in Charge Charles Miller of the Internal Revenue Service-Criminal Investigations Detroit Field Office. Paul Kozowicz, 75, pleaded guilty to one count of tax evasion. Kozowicz’s guilty plea arose out a scheme that, according to court papers, resulted in his intentional failure to report over 1.1 million dollars in taxable income to the Internal Revenue Service over a nine-year period. According to the plea agreement, between approximately 2002 and 2011, Kozowicz worked as a full-time salaried employee providing accounting and financial services for a law firm in Birmingham, Michigan. In 2011, that firm reorganized, and Kozowicz became a part-time employee of the firm, making approximately 20% of his previous salary. To replace his lost income, Kozowicz became an independent contractor and provided accounting and consulting services to several other businesses. Kozowicz formed a corporation called “FACS, Inc.,” which purported to be the entity that provided these accounting and consulting services. Kozowicz opened a bank account in the name of FACS, and Kozowicz’s customers deposited their payments for Kozowicz’s services into that account. However, Kozowicz did not declare any of the income he earned using the name FACS on any individual or corporate tax return between 2011 and 2019. Moreover, Kozowicz did not maintain any corporate books or records for FACS, nor did he observe or respect any other corporate formalities such as the State of Michigan’s annual corporate filing requirements. In addition, according to the plea agreement, Kozowicz treated the monies deposited in the FACS account as his own, and used those monies freely for personal expenses and needs. Yet on his personal federal income tax returns the only income Kozowicz declared was his reduced law-firm salary and certain taxable social security receipts. FACS never filed a corporate tax return. Kozowicz further admitted that between 2011 and 2019, he earned approximately $1.15 million in unreported income through FACS and evaded payment of approximately $318,243 in tax due and owing on that income. “Paul Kozowicz chose to enrich himself at the expense of the public by willfully concealing over a million dollars in taxable income from the IRS. As a financial professional, Kozowicz knew better. My office takes seriously anyone who evades their obligation to pay taxes, and today’s conviction reflects our commitment to identify and prosecute such offenders,” stated U.S. Attorney Ison. “The license to run a business is not a license to avoid paying taxes,” said IRS Criminal Investigation, Detroit Field Office, Special Agent in Charge Charles Miller. “Paul Kozowicz's blatant fraud, hiding income, and having his shell business pay his purely personal expenses, cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy. CI remains dedicated to holding those accountable that refuse to play by the rules.” Sentencing is set for January 21, 2025 before United States District Judge Stephen J. Murphy III. Kozowicz faces a maximum sentence of five years imprisonment. He will be obligated to pay restitution of $318,243 to the IRS after sentencing. The case is being prosecuted by Assistant United States Attorney John K. Neal. The investigation is being conducted by the Internal Revenue Service-Criminal Investigations Office.


title: Drug Maker Teva Pharmaceuticals Agrees to Pay $450M in False Claims Act Settlement to Resolve Kickback Allegations Relating to Copayments and Price Fixing

component: Civil Division

body_text: Teva Pharmaceuticals USA Inc. (Teva USA) and Teva Neuroscience Inc. (collectively, Teva) have agreed to pay $450 million to resolve two matters that allege Teva violated the Anti-Kickback Statute (AKS) and the False Claims Act (FCA). Teva, headquartered in Parsippany, New Jersey, is the largest generic drug manufacturer in the United States. The settlement amount was based on Teva’s ability to pay. “Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.” The settlement encompasses two alleged kickback schemes. First, Teva has agreed to resolve allegations in a complaint the United States filed in the District of Massachusetts in August 2020 that Teva violated and conspired to violate the AKS and FCA by paying Medicare patients’ cost sharing obligations (copays) for the multiple sclerosis drug Copaxone from 2006 through 2017, while steadily raising Copaxone’s price. In particular, the United States alleged that Teva coordinated and conspired with multiple third parties, including a specialty pharmacy and two allegedly independent copay assistance foundations, to ensure that purported donations to the foundations were used specifically to cover the copays of Medicare Copaxone patients, which Teva knew was prohibited by the AKS, and that Teva thereby caused the submission of false claims to Medicare. Second, Teva USA has agreed to resolve separate allegations that it conspired with other generic drug manufacturers to fix prices for pravastatin, a drug widely used to treat high cholesterol and triglyceride levels, as well as two other generic drugs, clotrimazole and tobramycin. Teva USA previously entered into a deferred prosecution agreement with the Justice Department’s Antitrust Division to resolve related criminal charges. Teva USA paid a criminal penalty of $225 million and admitted to conspiring with three other generic drug companies to fix prices on certain generic drugs. Under the civil settlement announced today, Teva agreed to resolve allegations that the benefits it received under its price fixing scheme constituted illegal kickbacks. Teva will pay collectively $450 million to resolve the two kickback schemes. This payment is in addition to the criminal penalty paid by Teva USA under its deferred prosecution agreement. “Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members and others.” “For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “This office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers. “The Medicare program’s copay structure serves as a safeguard against the artificial inflation of drug prices. When a pharmaceutical company manipulates drug prices through collusion, or disguises kickbacks as charitable donations to subsidize copays for its own drugs, the integrity of the Medicare program is jeopardized,” said Assistant Inspector General for Investigations Adam Globerman of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This type of conduct is unacceptable, and HHS-OIG remains committed to thoroughly pursuing allegations of price fixing and kickbacks that put the Medicare program at risk.” “The Defense Criminal Investigative Service, the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty of DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.” Since 2017, the United States has collected over $1 billion, in addition to today’s settlement, from pharmaceutical companies that allegedly used third-party foundations as conduits to unlawfully pay patient copays. The department has also reached settlements with four foundations and a specialty pharmacy pertaining to those allegations. Today’s resolution with Teva is the largest of these settlements to date. The settlement of Teva’s price fixing conduct is the seventh pertaining to allegations of price fixing involving generic drugs, with total recoveries exceeding $500 million. The government’s pursuit of these matters illustrates the department’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800‑HHS‑TIPS (800-447-8477). The resolution of the patient copay matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the District of Massachusetts, with investigative support from HHS-OIG and the FBI. Attorneys Douglas Rosenthal and Nelson Wagner of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Abraham R. George, Diane Seol and Evan Panich for the District of Massachusetts handled the matter. The civil resolution of the price fixing matter was the result of a coordinated effort between the Fraud Section and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, with investigative support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS and Office of Inspector General for the Department of Veterans Affairs. Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division and Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley and Anthony D. Scicchitano for the Eastern District of Pennsylvania handled the matter. Fraud Section financial analyst Sheryl Paynter provided support for both matters. The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc. et al., No. 20-cv-11548 (DMA). DMA Settlement EDPA Settlement


title: Lehigh County Man Sentenced To 10 Years In Prison For Trafficking Methamphetamine

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sterling Crumblin, age 34, of Lehigh County, Pennsylvania, was sentenced on October 10, 2024, by U.S. District Court Judge Jennifer P. Wilson to 10 years in prison for trafficking methamphetamine. According to United States Attorney Gerard M. Karam, Crumblin was sentenced for his possession with the intent to distribute methamphetamine. Crumblin received the ten-year mandatory minimum sentence for trafficking over 500 grams of methamphetamine. Crumblin previously entered a guilty plea where he admitted that on November 15, 2021, Pennsylvania State Police conducted a traffic stop on Crumblin’s vehicle while he was driving through Dauphin County, Pennsylvania. Troopers secured a search warrant for Crumblin’s vehicle and ultimately discovered more than a kilogram of methamphetamine and a stolen handgun. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation and Pennsylvania State Police. Assistant U.S. Attorney Stephen W. Dukes is prosecuting the case. # # #


title: Generic Pharmaceutical Company Pays $25 Million to Resolve False Claims Act Liability for Price-Fixing of Generic Drugs

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – U.S. Attorney Jacqueline C. Romero announced that Teva Pharmaceuticals USA, Inc., a generic pharmaceutical manufacturer located in Parsippany, New Jersey, has agreed to pay $25 million to resolve its alleged liability under the False Claims Act for conspiring to fix prices and allocate markets for two generic drugs. This settlement is one part of an overall resolution, for a total payment of $450 million, based on Teva’s ability to pay, of allegations of this and another kickback arrangement. The government alleged that, between May 1, 2013 and December 31, 2015, Teva paid and received compensation prohibited by the Anti-Kickback Statute through arrangements on price, supply, and allocation of customers with other pharmaceutical manufacturers for two generic drugs manufactured by Teva, pravastatin and tobramycin. Pravastatin is widely used to treat high cholesterol and triglyceride levels, and tobramycin is an antibiotic. “Kickback arrangements by pharmaceutical companies escalate the costs for critical drugs used by our citizens and federal health care programs,” said U.S. Attorney Romero. “My office is proud to work with the rest of the Department of Justice and our investigative partners to enforce federal laws prohibiting kickback arrangements. We will continue to take action to lower the drug costs for our country and its health care programs supporting senior citizens, our military service members, and others.” “Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition, and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “The Department is committed to pursuing all those who engage in kickback violations, including drug manufacturers, to ensure that these federal health care programs continue to serve the interests of taxpayers and program beneficiaries.” “Conspiring to raise prices on generic medications is illegal and could prevent patients from being able to afford their needed prescription drugs. Americans have the right to purchase generic drugs set by fair and open competition, not collusion,” said Maureen R. Dixon, Special Agent in Charge of the Philadelphia Regional Office of the Inspector General, Department of Health and Human Services (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate allegations of health care fraud that put the public and the Medicare program at risk.” “The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General, seeks to protect the integrity of TRICARE, the healthcare system for U.S. military members and their dependents,” said Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “When pharmaceutical corporations artificially inflate prices, they place an unnecessary financial burden on the TRICARE program. The settlement agreement announced today demonstrates our commitment to partner with investigative agencies and the Department of Justice, including the Civil Division and the U.S. Attorney’s Office for the Eastern District of Pennsylvania, to combat healthcare fraud.” The Anti-Kickback Statute prohibits companies from receiving or making payments in return for arranging the sale or purchase of items such as drugs for which payment may be made by a federal health care program. These provisions are designed to ensure that the supply and price of health care items are not compromised by improper financial incentives. This settlement reflects the important role of the False Claims Act to ensure that the United States is fully compensated when it is the victim of kickbacks paid to further anticompetitive conduct. Teva previously entered into a deferred prosecution agreement with the Department’s Antitrust Division to resolve related criminal charges. Teva agreed to pay a criminal penalty of $225 million based on its ability to pay and admitted to agreeing with competitors to refrain from submitting bids and offers to sell drugs to certain customers. The civil settlement payment announced today is in addition to the criminal penalty paid by the company. This civil settlement is the seventh resolution arising from the Department’s investigation of price fixing by generic drug manufacturers and was handled by the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Commercial Litigation Branch (Fraud Section) of the Department of Justice’s Civil Division, with support from HHS-OIG, the Defense Health Agency Program Integrity Office, DCIS, and the Office of Inspector General for the Department of Veterans Affairs. The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477). The matter was handled by Assistant U.S. Attorneys Landon Y. Jones III, Rebecca S. Melley, and Anthony D. Scicchitano of the U.S. Attorney’s Office, along with Senior Trial Counsel Jennifer L. Cihon and Senior Litigation Counsel Laurie A. Oberembt of the Civil Division. Except for those facts admitted to by Teva in the deferred prosecution agreement, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.


title: Teva Pharmaceuticals Agrees to Pay $425 Million to Resolve Kickback Allegations

body_text: BOSTON – Teva Pharmaceuticals USA, Inc. and Teva Neuroscience, Inc. (collectively Teva) have agreed to pay $425 million to resolve allegations that Teva paid kickbacks via two co-pay assistance foundations in violation of the Anti-Kickback Statute (AKS) and False Claims Act. The government’s complaint, filed in 2020, alleged that from 2006 to 2017, Teva manipulated the co-pay foundation assistance system by conspiring with multiple third parties, including a specialty pharmacy and two allegedly independent co-pay assistance foundations, to direct its supposed charitable payments specifically to patients taking its own multiple sclerosis drug, Copaxone. At the same time, Teva steadily raised Copaxone’s price by thousands of dollars. The United States alleges that this conduct violated the AKS and caused the submission of false claims to Medicare. The settlement was reached after the government’s review of Teva’s financial disclosures concerning its financial condition. This settlement is the latest in a string of enforcement actions against pharmaceutical companies that allegedly used third-party foundations as conduits to pay kickbacks. Since 2017, the United States Attorney’s Office in Massachusetts has collected over $1.4 billion from this enforcement initiative. The U.S. Attorney’s Office has also settled with four of the third-party foundations that participated in this conduct and a specialty pharmacy. Today’s resolution with Teva is the largest co-pay assistance settlement to date. When a Medicare beneficiary obtains a prescription drug covered by Medicare Part B or Part D, the beneficiary is often required to make a partial payment, which may take the form of a co-payment, co-insurance, or deductible (collectively “co-pays”). These co-pay obligations may be substantial for expensive medications. Congress included co-pay requirements in these programs, in part, to encourage market forces to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. The AKS prohibits pharmaceutical companies from offering or paying, directly or indirectly, any remuneration – which includes money or any other thing of value – to induce Medicare patients to purchase the companies’ drugs. “For far too long, Teva gamed the charitable foundation process by paying kickbacks through two foundations, and with the aid of a specialty pharmacy. Those kickbacks undermined the purpose of the Medicare co-pay system and violated the Anti-Kickback Statute,” said Acting United States Attorney Joshua S. Levy. “This Office has taken the leading role in cracking down on these highly lucrative schemes that drive up the cost of essential drugs by bringing multiple enforcement actions that have returned more than $1 billion to the Medicare system. We will continue to pursue these actions to ensure that all pharmaceutical companies play by the rules and to protect the American taxpayers. “Kickbacks designed to induce referrals or purchases of healthcare goods or services distort physician and patient decision-making, thwart competition and bypass controls put in place to protect federal health care programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department is committed to pursuing those who engage in kickback violations, including drug manufacturers, to ensure that federal health care programs continue to serve the interests of taxpayers and program beneficiaries.” “Pharmaceutical companies that disguise kickbacks as charitable donations to subsidize co-pays for their own drugs undermine a critical safeguard against the excessive inflation of drug prices. The costs of these schemes are ultimately passed on to consumers and taxpayers,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Such conduct cannot be tolerated within our health care system, and we will continue to vigorously pursue such allegations.” “Today’s record-breaking settlement with Teva Pharmaceuticals is a victory for the public and highlights the FBI’s commitment to safeguarding the financial integrity of the Medicare program,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Pharmaceutical companies that look to bolster their drug prices by paying illegal kickbacks – whether directly or indirectly – undermine taxpayer funded healthcare programs and compromise patient care. The FBI will continue to pursue these investigations until pharmaceutical companies stop engaging in this conduct.” Acting U.S. Attorney Levy, Principal Deputy AAG Boynton, HHS-OIG SAC Coviello and FBI SAC Cohen made the announcement today. The matter was handled by Assistant U.S. Attorney Abraham R. George, Chief of the Civil Division; Assistant U.S. Attorneys Diane Seol and Evan Panich of the U.S. Attorney’s Office for the District of Massachusetts; and Trial Attorneys Douglas Rosenthal and Nelson Wagner of the Justice Department’s Civil Division. The civil action in Massachusetts is captioned United States v. Teva Pharmaceuticals USA, Inc., et al., No. 20-cv-11548 (D. Mass.).


title: Lynn Man Charged with Threatening an Elected Official

body_text: BOSTON – A Lynn man was arrested and charged for allegedly making threats to an elected official. Justin David Gaglio, 50, was charged by criminal complaint with one count of transmitting interstate threats. Gaglio was arrested on Sept. 27, 2024 made an initial appearance in federal court in Boston later that day. The defendant remains in federal custody following a detention hearing held on Sept. 30, 2024, as the Court took the matter of detention under advisement. According to the charging document, beginning in or around January 2023, Gaglio began contacting the victim via online submissions through the victim’s website. Between January 2023 and September 2024, Gaglio allegedly submitted over 80 separate messages to the victim via the website – sometimes sending multiple messages within minutes of each other. It is further alleged that, on or about Sept. 8, 2024, Gaglio submitted a contact request to the victim’s website in which he threatened to murder the victim and their family. The charge of transmitting interstate threats carries a maximum penalty of five years in prison, three years of supervised release and a fine of up to $250,000. 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. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the United States Capital Police, the Massachusetts State Police and the Lynn and Salem Police Departments. Assistant U.S. Attorney Alathea E. Porter of the National Security Unit is prosecuting the case. The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Maryland Man Indicted for $35 Million Bank Fraud Scheme

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Maryland man has been indicted for his role in a $35 million bank fraud conspiracy, announced U.S. Attorney Andrew M. Luger. According to court documents, from September 2020 through October 2021, Karl Reid Selle, 38, of Bowie, Maryland, conspired with Matthew Thomas Onofrio to devise and execute a scheme to defraud federally-insured banks and credit unions in Minnesota, Wisconsin, and elsewhere. As part of the scheme, Onofrio, who operated a business entity called Northwoods Management LLC, marketed a program for investors to acquire commercial real estate located in various states. Onofrio, or his business entity, would cause false information to be submitted to lenders financing investors’ real estate purchases and in some cases altered purchase agreements to support higher appraisals of the properties. The indictment also alleges that part of the scheme was to withhold information from the lenders, including the fact that Onofrio made loans to investors to help them purchase the properties and that the loans constituted liabilities that should be disclosed in a loan application. The indictment charges Selle with one count of conspiracy to commit bank fraud. He made his initial appearance in U.S. District Court on October 8, 2024, before Magistrate Judge Douglas L. Micko. This case is the result of an investigation conducted by the FBI. Assistant U.S. Attorney Robert M. Lewis is prosecuting the case. 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 York Man Charged With Attempted Sexual Exploitation Of A Minor And  Enticement Of A Minor To Engage In Illegal Sexual Activity

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Darnell Henry, age 42, of Bronx, New York, was indicted by a federal grand jury for attempted sexual exploitation of a minor and enticement of a minor to engage in illegal sexual activity. According to U.S. Attorney Gerard M. Karam, the indictment charges Henry with attempted sexual exploitation of child who had not obtained the age of 18-years-old, between May 9, 2024 and May 25, 2024, in Adams County. The indictment further charges Henry with enticement of a minor to engage in illegal sexual activity between May 9, 2024 and June 2, 2024. The case was investigated by the Pennsylvania State Police, the New York City Police Department, and the Federal Bureau of Investigation. Assistant United States Attorney K. Wesley Mishoe is prosecuting the case. The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . The maximum penalty upon conviction for the charged offense is life imprisonment, a lifetime term of supervised release following imprisonment, a fine, a statutory assessment, and a special assessment. A sentence following a finding of guilt is imposed by a court after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #