title: Former Diversity Program Manager at Facebook and Nike Sentenced to Federal Prison for $5 Million Fraud

body_text: ATLANTA - Barbara Furlow-Smiles, a former diversity program manager at Facebook and Nike, has been sentenced for stealing more than $5 million based on an elaborate scheme involving fraudulent vendors, fictitious paperwork, and cash kickbacks. “Furlow-Smiles shamelessly violated her position of trust as a DEI executive at Facebook to steal millions from the company utilizing a scheme involving fraudulent vendors, fake invoices, and cash kickbacks,” said U.S. Attorney Ryan K. Buchanan. “After being terminated from Facebook, she brazenly continued the fraud as a DEI leader at Nike, where she stole another six-figure sum from their diversity program. Her prison sentence reflects the consequences of her decision to orchestrate an intricate scheme to defraud two of her employers for personal profit.” “As Lead Strategist at Facebook, Furlow-Smiles’ employer put an extreme amount of trust in her, only to have that trust completely violated,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “After she was fired, she carelessly continued her fraudulent schemes at Nike, thinking she was untouchable. As a result, she not only threw away a lucrative career, but will serve time behind bars for her excessive greed.” According to U.S. Attorney Buchanan, the charges and other information presented in court: Barbara Furlow-Smiles served as Lead Strategist, Global Head of Employee Resource Groups and Diversity Engagement at Facebook, Inc., now known as Meta Platforms, Inc., doing business as Meta. From January 2017 to September 2021, she led Diversity, Equity, and Inclusion (DEI) programs at Facebook and was responsible for developing and executing DEI initiatives, operations, and engagement programs. In her position, Furlow-Smiles had access to company credit cards. She also had the authority to submit purchase requisitions and approve invoices for authorized vendors of Facebook. Furlow-Smiles used her position at Facebook to cheat and defraud the company. She caused Facebook to pay numerous individuals for goods and services that were never provided and then directed those individuals to kick back the fraudulent proceeds to her, often in cash. Her scheme operated in two ways. First, Furlow-Smiles linked PayPal, Venmo, and Cash App accounts to her Facebook credit cards and used those accounts to pay friends, relatives, and other associates for goods and services that in truth were never provided to Facebook. To conceal the bogus charges, Furlow-Smiles submitted fraudulent expense reports, falsely claiming that her associates or their businesses had performed work on programs and events for Facebook, such as providing swag or marketing services, when in fact they had not done so. After these individuals received the payments from Facebook, they returned the vast majority of the money to Furlow-Smiles. They paid these kickbacks in cash and through account transfers to others, including her husband. They paid the cash kickbacks in person and by Federal Express or mail, sometimes wrapping the cash in other items, such as T-shirts. Furlow-Smiles also directed associates to pay one another, or others to whom she owed money, to conceal her involvement in the scheme. Second, Furlow-Smiles caused Facebook to onboard several vendors that were owned and operated by friends and associates who paid her kickbacks. Furlow-Smiles approved fraudulent invoices for these vendors. After Facebook paid the invoices, Furlow-Smiles directed the vendors to return a portion of the money they received to her. Furlow-Smiles recruited numerous individuals to participate in the scheme. These individuals included friends, relatives, former interns from a prior job, nannies and babysitters, a hair stylist, and her university tutor. She also caused Facebook to make payments for her benefit to others who did not pay kickbacks. For example, Furlow-Smiles caused Facebook to pay nearly $10,000 to an artist for specialty portraits and more than $18,000 to a preschool for tuition. After Furlow-Smiles was terminated from Facebook, she worked for Nike from November 2021 to February 2023, serving as Senior Director of Diversity, Equity & Inclusion. In that position, she was responsible for supporting DEI initiatives, developing strategies, and hosting DEI events. She was primarily responsible for a Juneteenth event in New York during her time at Nike. As she had done at Facebook, Furlow-Smiles circumvented the vendor process at Nike to commit fraud. She linked her Nike corporate card to her PayPal and Venmo accounts. She then paid her associates with PayPal and Venmo, causing fraudulent charges to her Nike card. The associates kicked back portions of the payments to Furlow-Smiles, who submitted fraudulent expense reports to Nike to cover her tracks. The expense reports falsely claimed that the payments were related to the Juneteenth event. In total, Furlow-Smiles stole more than $4.9 million from Facebook and over $120,000 from Nike based on fictitious charges and fraudulent invoices. She used the money to fund a luxury lifestyle in California, Georgia, and Oregon. Barbara Furlow-Smiles, 38, of Marietta, Georgia, was sentenced by U.S. District Judge Steven D. Grimberg to five years, three months in prison to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $4,981,783.58 to Facebook and $121,054.50 to Nike, for a total of $5,102,838.08. Furlow-Smiles was convicted of wire fraud on December 11, 2023, after she pleaded guilty. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Stephen H. McClain and Bernita B. Malloy prosecuted the case. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Federal Prisoner Sentenced for Mailing Threats to Government Officials

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Stephen Elbert Boykin, age 52, a federal prisoner at Federal Correctional Institution Gilmer, was sentenced today to an additional 51 months in federal prison for mailing threats directed at government officials and family members. According to court documents and statements made in court, prison staff intercepted several threatening letters Boykin attempted to mail while incarcerated. In a few of the letters, the threats were directed at President Barrack Obama and Michelle Obama, Florida Governor Ron DeSantis, and Vice President Kamala Harris. Other letters threatened an Assistant U.S. Attorney in South Carolina, where Boykin was last prosecuted. At the time of the crime, Boykin was serving a 125-month sentence for mailing threatening communications to federal officials. Assistant U.S. Attorney Andrew Cogar prosecuted the case on behalf of the government. The Federal Bureau of Prisons investigated. Chief U.S. District Judge Thomas S. Kleeh presided.


title: Three Admit Half-Million Dollar Health Care Fraud Conspiracy

component: USAO - Missouri, Eastern

body_text: ST. LOUIS –The former owner, office manager, and business manager of a St. Louis County, Missouri-based home health care company pleaded guilty to a federal charge Monday and admitted involvement in a health care fraud conspiracy that fraudulently billed the Missouri Medicaid program more than $552,000. Doriann Morgan, 58, of St. Louis County, Thalisa Walton, 46, of Hazelwood, and Barbara Jackson, 59, of St. Louis, pleaded guilty to a felony charge of conspiracy to commit health care fraud in three separate hearings in U.S. District Court in St. Louis. They each admitted that from roughly January 2018 to August 2021, they conspired to submit fraudulent reimbursement claims to Missouri’s Medicaid program for personal care services that were never provided. They admitted receiving $552,659. Jackson was business manager of A Mother’s Touch In-Home Care LLC, responsible for recruiting clients and assigning employees to provide care. Morgan owned the company and submitted Medicaid claims. Walton was office manager. Morgan, Walton and Jackson are no longer affiliated in any way with A Mother’s Touch In-Home Care LLC, which continues to do business under new ownership. The three submitted fraudulent claims for personal care services purportedly provided by Jackson for a woman who did not live in Missouri and received no services, their plea agreements say. They also submitted claims for providing services for clients at times when their own social media posts showed them doing something else. In a separate civil settlement, Morgan, Walton and Jackson agreed to pay $910,000 to resolve allegations that they violated the False Claims Act by billing Missouri Medicaid using false timesheets and payroll records for in home services that were never provided. The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Michele Bickley. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Ms. Bickley will receive $90,090 of the proceeds from the settlement. “HHS-OIG is committed to protecting our communities and taxpayer funds from schemes targeting Missouri's Medicaid program, which provides necessary services to vulnerable populations,” said Special Agent in Charge Linda Hanley of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working proudly with the Missouri Attorney General’s Medicaid Fraud Control Unit and our other law enforcement partners, our agency will continue to investigate those who threaten the integrity of federal and state health care programs and the people served by them.” The three are scheduled to be sentenced August 26. The charge is punishable by up to 10 years in prison, a $250,000 fine, or both prison and a fine. The U.S. Department of Health and Human Services Office of Inspector General and the Missouri Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorneys Suzanne Moore and Derek Wiseman are prosecuting the case.


title: Chinese National Accused of Defrauding the Elderly

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A man from China has been indicted and accused of taking $95,000 from a 79-year-old Missouri woman who was victimized by scammers. Dongyi Guo, 27, was indicted in U.S. District Court in St. Louis on May 8 with one count of conspiracy to commit wire fraud. He pleaded not guilty Monday. The indictment says the conspirators contacted elderly victims via telephone calls and electronic messages and tricked them into turning over cash. Couriers such as Guo were paid to pick up the cash from their victims, the indictment says. Guo was arrested after scammers contacted a 79-year-old woman in Knox County, Missouri, claiming in multiple conversations to be representatives of financial institutions and the Social Security office, the indictment says. They told her that her accounts had been compromised and she needed to pay cash to prevent her money from being stolen, the indictment says. Guo collected $40,000 from the victim on March 4, another $35,000 the next day and $20,000 on March 6, the indictment says. He was arrested on March 7 trying to take another $15,000, it says. The conspiracy charge carries a penalty of up to 20 years in prison, a $250,000 fine or both prison and a fine. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The Knox County Sheriff’s Office and the FBI investigated the case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case. If you or someone you know is age 60 or older and has experienced financial fraud, contact the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can identify appropriate reporting agencies, provide information to callers to assist them in reporting and provide resources and referrals. Reporting frauds can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. The Federal Trade Commission also provides a hotline at 877-FTC-HELP and a website at www.ftccomplaintassistant.gov to receive consumer complaints.


title: Mexican Man Pleads Guilty to Illegal Reentry

component: USAO - Massachusetts

body_text: BOSTON – A Mexican man pleaded guilty today to illegally reentering the United States after deportation. Ramon Alfaro-Orona, 39, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Aug. 5, 2024. In September 2023, Alfaro-Orona was charged by criminal complaint. Alfaro-Orona was deported from the United States on eight prior occasions, with the most recent being Sept. 30, 2014. Sometime after his September 2014 removal, Alfaro-Orona unlawfully reentered the United States. On Aug. 23, 2023, Alfaro-Orona was taken into custody by immigration authorities following his arraignment in Leominster District Court for three counts of larceny by check over $1,200. Alfaro-Orona was convicted for unlawful reentry on two prior occasions in November 2013 and March 2014. The charge of unlawful reentry of a deported alien provides for a sentence of up to 10 years in prison, three years of supervised release, and a fine of up to $250,000. The defendant will be subject to deportation proceedings upon completion of an imposed sentence. 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 Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Brian Sullivan of the Major Crimes Unit is prosecuting the case.


title: Hartford Man Sentenced to Federal Prison for Trafficking Fentanyl

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that EFRAIN CHEVEREZ, 42, of Hartford, was sentenced today by U.S. District Judge Sarala V. Nagala in Hartford to 28 months of imprisonment, followed by two years of supervised release, for trafficking fentanyl. According to court documents and statements made in court, an investigation revealed that Issachamil Torres, also known as “Chamil,” was trafficking fentanyl from his residence on Crown Street in Hartford, and that he was using an apartment on Nutmeg Lane in East Hartford to store, process and package narcotics for street sale. On January 25, 2023, investigators conducted a court-authorized search of the East Hartford apartment and seized approximately 5,400 dose bags of fentanyl, approximately one kilogram of unpackaged fentanyl, and items used to process and package narcotics. Torres, Cheverez, and Enrique Rodriguez Rivera, who were present in the apartment, were arrested at that time. That same day, a search of Torres’s Hartford residence revealed distribution quantities of fentanyl and crack cocaine, and approximately $30,000 in cash. On July 18, 2023, Cheverez pleaded guilty to conspiracy to distribute, and to possess with intent to distribute, fentanyl. Cheverez, who is released on a $50,000 bond, is required to report to prison on July 1. Torres and Rodriguez pleaded guilty to related charges. On December 19, 2023, Rodriguez was sentenced to 12 months and one day of imprisonment. Torres awaits sentencing. This investigation was conducted by the DEA’s Hartford Task Force, which includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, and Windsor Locks Police Departments. This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Utah man sentenced to 21 months in prison for defrauding Montana employer, $700,000 restitution ordered

body_text: HELENA — A Utah man who admitted embezzling approximately $700,000 from a Montana company was sentenced today to 21 months in prison, to be followed by three years of supervised release, and ordered to pay $700,000 restitution, U.S. Attorney Jesse Laslovich said. The defendant, Thomas Lynn Syddall, 50, of American Fork, Utah, who worked for a company owned by Anderson ZurMuehlen & Co., pleaded guilty in October 2023 to wire fraud and to money laundering-concealment as charged in an indictment. Chief U.S. District Judge Brian M. Morris presided. “For more than a year, Syddall stole hundreds of thousands of dollars from his employer through a calculated scheme using fictitious purchasing orders and invoices. Syddall’s conduct violated the trust of his employer for his own personal enrichment, which now makes him a federal felon. Our office, working with our law enforcement partners, will remain committed to holding white collar criminals accountable,” U.S. Attorney Laslovich said. “IRS Criminal Investigation (CI) enforces the nation’s tax laws, but we also assist our federal law enforcement partners in these types of cases by following the money,” said Andy Tsui, Special Agent in Charge, Denver Field Office. “Our special agent’s ability to unravel embezzlement and money laundering schemes is vital to these types of investigations, and we will continue to work with our partners to hold criminals accountable for their actions.” In court documents, the government alleged that Syddall was a salesman for Information Technology Corporation, which was owned by Anderson ZurMuehlen & Co. From about March 2020 to about August 2021 in Helena, Syddall embezzled money through multiple means, including creating bogus purchase orders and invoices, stealing inventory and directing payments to fictitious companies and unauthorized vendors. Syddall then sold the inventory, none of which was authorized, on eBay and KSL Classifieds. When questioned by other employees about the discrepancies in orders and payments, Syddall sent lulling emails attempting to cover up and prolong the fraud. In addition, Syddall concealed financial transactions by laundering proceeds from the wire fraud into third-party accounts. Syddall then directed the transfer of the money into accounts over which he had control. The government identified approximately $700,000 in restitution. Assistant U.S. Attorney Ryan G. Weldon prosecuted the case. The FBI and IRS Criminal Investigation conducted the investigation. XXX


title: Kingdom City Business Owner Sentenced for $673,000 CARES Act Fraud

component: USAO - Missouri, Western

body_text: JEFFERSON CITY, Mo. – A Kingdom City, Mo., business owner was sentenced in federal court today for fraudulently receiving more than $673,000 in loans for several businesses under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Scott Allen Maples, 40, was sentenced by U.S. District Judge Brian C. Wimes to 18 months in federal prison without parole. The court also ordered Maples to pay $684,034 in restitution to the Small Business Administration. On Feb. 7, 2023, Maples pleaded guilty to one count of bank fraud. Maples admitted that he fraudulently applied for and received Paycheck Protection Program (PPP) loans for several businesses. When Maples applied for PPP loans, he reported exaggerated and inaccurate payroll expenses and submitted fabricated and altered bank statements and tax forms. Under the CARES Act, both the principal and interest on those loans were eligible for forgiveness if the loan money was spent for permissible expenses (such as payroll, mortgage interest, rent and utilities) and a requisite portion of the loan went towards payroll expenses. After submitting five fraudulent loan applications, Maples received a total of $673,127.04 in loan proceeds. Maples admitted that he submitted a loan application to Square, Inc., a company authorized to issue PPP loans, on May 6, 2020, on behalf of Area 23, LLC, claiming 21 employees and an average monthly payroll of $69,548. Maples submitted fabricated documents to support the loan application. He received a $173,872 loan. Maples also submitted a loan application to US Bank on May 15, 2020, for the same business, Area 23, making the same claims of employees and payroll and again including fabricated documents to support the loan application. Maples again received a $173,872 loan. Maples also received a $51,750 PPP loan for Maples Enterprises through Square. In the loan application, Maples indicated that there were six employees earning a total of $20,700 per month on average. In reality, Department of Labor records reflected that there was only one employee earning $182.50 in the first quarter of 2019. Another business, Clearance Depot, received a $270,632 PPP loan. Maples submitted statements in support of this loan that were later found to be altered and incorrect. Maples also submitted an application for an Economic Injury Disaster Loan seeking $30,000. This loan also contained suspected misrepresentations that overstated the prior year’s revenues. Maples received a $3,000 advance on this loan, but the loan that he sought was not issued. This case was prosecuted by Assistant U.S. Attorney Lauren E. Kummerer. It was investigated by the Small Business Administration Office of Inspector General, the Treasury Inspector General for Tax Administration, the FDIC Office of Inspector General, and IRS-Criminal Investigation.


title: Violent Armed Robbery in Oklahoma City Leads to 25 Years in Federal Prison for Mississippi Man

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – CHARLES LAMAR SCOTT , 36, of Greenville, Mississippi, has been sentenced to serve 25 years in federal prison for robbing an Oklahoma City pharmacy, discharging a firearm during the robbery, and possessing a firearm that had been modified to operate as a machinegun, announced U.S. Attorney Robert J. Troester. On May 3, 2023, a federal grand jury returned a five-count Indictment against Scott, charging him with interference with commerce by robbery, using, carrying, and discharging a firearm during and in relation to a crime of violence, using, carrying, brandishing, and discharging a machinegun during and in relation to a crime of violence, unlawful possession of a machinegun, and felon in possession of a firearm. According to the public record, on or about December 26, 2022, Scott committed an armed robbery at a CVS Pharmacy located in Oklahoma City. During the robbery, Scott violently assaulted a CVS employee and then forcibly took a handgun from a retired police officer, firing the stolen weapon at the building as he left the pharmacy. Scott also fired another handgun at law enforcement responding to the crime. The second firearm was modified with a machinegun conversion device, commonly known as a “switch”, which converted the semi-automatic weapon into a fully automatic handgun. On September 22, 2023, Scott pleaded guilty to Counts 1, 2, and 4 of the Indictment. As part of his plea, Scott admitted that he used force and violence in order to obtain money from CVS, that he discharged a firearm during and in relation to the robbery, and that he was aware that one of the firearms he possessed had been modified to become a machinegun. At the sentencing hearing on May 10, 2024, U.S. District Judge Charles Goodwin sentenced Scott to serve 25 years in federal prison, followed by three years of supervised release. In announcing his sentence, Judge Goodwin noted the troubling circumstances of the offense and the need to promote respect for the rule of law. This case is a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Stan J. West and David R. Nichols, Jr. prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. This case is also part of “Project Switch Off,” the Western District of Oklahoma’s local implementation of PSN. “Project Switch Off” targets illegal machinegun conversion devices to address the significant danger these illegal devices present and to remove them from our streets. For more information about PSN, please visit https://justice.gov/psn and https://justice.gov/usao-wdok . Reference is made to public filings for additional information.


title: Final Member of Drug Trafficking Conspiracy Sentenced for Fentanyl and Methamphetamine Trafficking

component: USAO - Arizona

body_text: PHOENIX, Ariz. – Keivin Crosswell-Cervantes, 27, of Mexico, was sentenced on April 29, 2024, by United States District Judge Steven P. Logan to 17 years in prison for Conspiracy to Distribute Fentanyl and Methamphetamine. Crosswell-Cervantes pleaded guilty to the charge on May 2, 2023. Crosswell-Cervantes’ two co-conspirators both also pleaded guilty to Conspiracy to Distribute Fentanyl and Methamphetamine and were sentenced by Judge Logan. On September 20, 2023, Carlos Alberto Castro-Ruiz, 26, of Phoenix, was sentenced to 11 years and three months in prison. On November 13, 2023, Alexander Ortega-Islas, 22, of Phoenix, was sentenced to 12 years in prison. The three co-conspirators all admitted that they delivered approximately 400,000 blue fentanyl pills, approximately 20,000 multi-colored fentanyl pills (“skittles”), and approximately 25 pounds of methamphetamine to undercover officers on September 22, 2022. Law enforcement officers also seized an AK-47-style pistol, a .45 caliber Kimber 1911 semi-automatic pistol with two magazines, and a .45 caliber FN semi-automatic pistol. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Homeland Security Investigations, Nogales, and the Drug Enforcement Administration, Nogales, conducted the investigation in this case. Assistant United States Attorney Matthew G. Eltringham, District of Arizona, Tucson, handled the prosecution. CASE NUMBER: CR-22-01295-PHX-SPL RELEASE NUMBER: 2024-062_Crosswell-Cervantes # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Georgia man pleads guilty to calling in threats days after Walmart shooting

body_text: NORFOLK, Va. – An Atlanta man pleaded guilty today to making interstate threats just three days after a gunman shot and killed six people at a Walmart in Chesapeake, Virginia. According to court documents, on Nov. 25, 2022, DeAndre Tamir Murphy, aka DeAdre Murphy, 30, called two Walmart stores in Virginia Beach and threatened that he had gunmen in place prepared to enter the stores. That date was the day following Thanksgiving, known as “Black Friday,” when stores were full for the busiest shopping day of the year. Identifying himself as “Mohammed,” Murphy demanded $20,000 or, he threatened, his gunmen would enter the stores and “start shooting people.” Investigators - who recorded the second call - traced the call back to Murphy in Atlanta. Murphy is scheduled to be sentenced on Sept. 27. He faces a statutory maximum of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Robert J. Krask accepted the plea. Assistant U.S. Attorney Joseph L. Kosky is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:24-cr-9. Correction: This release has been revised to reflect that six people, not eight, were killed in the shooting in Chesapeake on Nov. 22, 2022.


title: U.S. Attorney Duane A. Evans  Recognizes National Police Week

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS — In honor of National Police Week, United States Attorney Duane A. Evans recognizes the service and sacrifice given by federal, state, local, and Tribal law enforcement. National Police Week is being observed from Saturday, May 11 through Friday, May 17, 2024. “This week our nation honors the noble contributions from our brave law enforcement professionals for their service to the public, especially in the Eastern District of Louisiana, said U.S. Attorney Evans. “We thank them for their invaluable dedication and sacrifice. We also praise them for their selfless choices to protect and serve, despite job dangers. Above all, we extend our condolences to the colleagues and loved ones of the officers who made the ultimate sacrifice. Know that you have our unwavering appreciation and support.” In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Each year during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. On Monday, May 13, the names of more than 280 officers killed in the line of duty in 2024 have been added to the wall at the National Law Enforcement Officers Memorial and will be read during a Candlelight Vigil at 8:00 p.m. EDT. To view a livestream of this event, visit https://nleomf.org/memorial/programs/national-police-week-2024/candlelight-vigil/ . To learn more about National Police Week and the virtual candlelight vigil, please visit www.policeweek.org .


title: Klamath Falls Man Sentenced to Federal Prison for Illegally Possessing Methamphetamine

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

body_text: MEDFORD, Ore.—A Klamath Falls, Oregon man with multiple previous drug- and firearm-related convictions was sentenced to federal prison today after he was caught by local law enforcement with methamphetamine and a handgun. Andrew Miles Devos, 42, was sentenced to 75 months in federal prison and five years’ supervised release. According to court documents, in January 2020, law enforcement learned that Devos, who at the time had eight prior felony convictions for drug and firearm offenses, was actively selling methamphetamine in Klamath Falls. After further investigation, on January 8, 2020, Devos was arrested when he arrived to complete a drug transaction. Law enforcement officers searched Devos’ vehicle and located 80 grams of methamphetamine, a 9mm firearm, 50 rounds of 9mm ammunition, a digital scale, and drug packaging materials concealed inside a backpack. On June 3, 2020, Devos was charged by criminal complaint with illegally possessing a firearm and ammunition as a convicted felon, possessing a firearm in furtherance of a drug trafficking crime, and possessing with intent to distribute methamphetamine. Later, on September 17, 2020, a federal grand jury in Medford indicted Devos on the same charges. Prior to being sentenced today, Devos pleaded guilty to a one-count superseding criminal information charging him with possessing with intent to distribute methamphetamine. This case was investigated by the Basin Interagency Narcotics Enforcement Team (BINET) with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosive (ATF). It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon. BINET is a Klamath Falls area narcotics task force comprised of Oregon State Police, the Klamath Falls Police Department, and Oregon National Guard.


title: Two Sacramento Men Sentenced to Years in Prison for Conspiracy, Bank Fraud, and Aggravated Identity Theft Tied to Postal Thefts

component: USAO - California, Eastern

body_text: SACRAMENTO, Calif. — Carlos Aranda, 41, and Daniel Hunt, 38, both of Sacramento, were sentenced today to 66 and 57 months in prison, respectively, for conspiracy, bank fraud, and aggravated identity theft connected to postal thefts, United States Attorney Phillip A. Talbert announced. According to court documents, Aranda, Hunt, and others engaged in a conspiracy to steal postal locks, create postal keys, and steal mail, all in order to obtain stolen checks. The conspirators periodically gathered together at motel rooms and elsewhere to alter or “wash” stolen checks together. The conspirators then took the checks and attempted to negotiate, deposit, and/or cash them. In total, conspirators were responsible for nearly $250,000 in check fraud. This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Elliot C. Wong prosecuted the case.


title: Six Members of Violent Transnational Gang Convicted in Connection With Two Killings and Racketeering Activity

body_text: WASHINGTON – Six members of “18 th Street,” a violent international street gang, were found guilty in U.S. District Court on an array of charges that included racketeering, kidnapping, and murder. The convictions were announced today by U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division, ICE Deputy Director Russ Hott of U.S. Immigration and Customs Enforcement Division of Enforcement and Removal Operations (ICE-ERO), and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). A federal jury in Washington D.C. deliberated for three days before delivering the verdicts to U.S. District Judge Trevor N. McFadden. The Court published the verdicts on Friday and today. Judge McFadden scheduled sentencings for September 20; September 27; October 4; and October 11, 2024. The 18 th Street organization engages in a variety of criminal activities throughout the United States, including in the District, Virginia, and Maryland Its activities have included acts of murder, kidnapping, assault, robbery, witness intimidation, and firearms and narcotics trafficking to fuel the gang’s violent operations. The gang is active throughout Central and South America -- particularly in El Salvador, Guatemala, and Honduras -- and has established a presence in Europe. It uses violence to maintain control over specific geographical areas. This investigation began in 2019 and looked into the full breadth of criminal activity 18 th Street was involved in within the greater D.C. metropolitan area. As the investigation into 18 th Street’s racketeering activities progressed, it began to center on a series of murders, attempted murders, and kidnappings of suspected rivals and members suspected of disloyalty. One such act was the attempted murder of C.H. on May 21, 2021. With respect to that offense, the evidence at trial showed that Jexon Madrid-Flores and another 18th Street member brandished a firearm at C.H. as the latter stopped at a convenience store in Columbia Heights that afternoon during the middle of an afternoon bike ride. Defendant Madrid-Flores and the other gang member then followed C.H. and pulled up their vehicle alongside the victim, who was riding his bike in the bike lane. From their vehicle, the other 18 th Street member discharged multiple rounds at C.H. in broad daylight, striking C.H. in the leg. The evidence showed that Madrid-Flores believed the victim to be a member of a rival gang and had hoped for a promotion within 18 th Street for attempting to murder a potential rival. The investigation also entailed the July 14, 2021, murder of Carlos Ramos Martinez in a wooded area near Elkton, MD. Martinez, aka “FIRE,” was a member of a rival faction of 18 th Street called the Revolucionarios and was believed to be recruiting members away from the LCB clique. According to the seven-count superseding indictment, Jose Santos Alvarado-Velasquez and Gerlin Neptali Diaz-Lopez killed Ramos Martinez. Carlos Rolando Martinez-Mora and Jose Anselmo Ibarra-Cristales participated in planning and facilitating the slaying, respectively. Alvarado-Velasquez, Diaz-Lopez, and Ibarra-Cristales were in the U.S. illegally at the time. The investigation also involved a second murder committed in Rockville, MD, on December 19, 2021. According to the superseding indictment, Rolando Martinez-Mora planned and ordered the killing of a suspected member of MS13, Danis Alcides Salgado Mata. As a result, Mata was shot and killed on the heels of his mother’s wedding celebration. Mata’s mother and stepfather were also shot but survived their injuries. A dozen members of 18 th Street were arrested and charged in the conspiracy. The first trial against six of the defendants commenced on April 10, 2024, and concluded last week. A second group of 18 th Street gang members will be tried in July 2024. According to the indictment, members of 18 th Street are required to commit acts of violence to further the interests of the gang. These violent acts are often directed against rival gang members, 18th Street members who violate gang rules or otherwise disrespect the gang, and persons who are suspected of cooperating with law enforcement. Additionally, 18th Street members sell and transport narcotics, weapons, and other contraband to generate money to support the gang and its criminal activities. Some of the proceeds of this criminal activity are wired to members of the gang’s leadership in other countries. 18th Street members control geographical areas and use violence to maintain their control. 18th Street – a gang founded in Los Angeles that now includes up to 50,000 members – is organized into “cliques,” or smaller groups operating within specific cities or regions that all operate under the umbrella rules of 18th Street to include the following: the Tiny Locos Sureños (TLS), Los Crazy Brothers (LCB), and the Revolucionarios. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. This case was investigated by the FBI Washington Field Office, the Department of Homeland Security’s Immigration and Customs Enforcement - Enforcement Removal Operations, the U.S. Marshals Service, the Metropolitan Police Department (MPD), and the Montgomery County, Maryland Police Department. The District of Columbia Department of Forensic Sciences and the Montgomery County, Maryland State’s Attorney’s Office provided valuable assistance. The case is being prosecuted by Assistant U.S. Attorneys Jack Korba, Will Hart, and Sitara Witanachchi. Valuable assistance was provided by former Assistant U.S. Attorneys Gilead Light and Christopher Marin. 18 th STREET DEFENDANTS NAME AGE AKA CLIQUE CONVICTED OF Jose Santos Alvarado-Velasquez, Takoma Park, MD 22 “Vago” Los Crazy Brothers Racketeer Influenced and Corrupt Organizations ( RICO ) -Conspiracy; Violent Crimes in Aid of Racketeering (VICAR)- Murder; Conspiracy to Commit Kidnapping Resulting in Death; Kidnapping Resulting in Death; Discharge of a Firearm – Crime of Violence; Unlawful Possession of a Firearm – Illegal Alien Gerlin Neptali Diaz-Lopez Washington, D.C. 22 “Sicario” Tiny Locos Sureños RICO-Conspiracy; VICAR-Murder; Conspiracy to Commit Kidnapping Resulting in Death; Kidnapping Resulting in Death; Discharge of Firearm – Crime of Violence; Unlawful Possession of a Firearm – Illegal Alien Jose Anselmo Ibarra-Cristales Beltsville, MD 23 “Chemo” Los Crazy Brothers RICO-Conspiracy, VICAR-Murder; Conspiracy to Commit Kidnapping Resulting in Death; Carlos Rolando Martinez-Mora Hyattsville, MD 24 “Crosty” Los Crazy Brothers RICO-Conspiracy; VICAR-Murder x2; Conspiracy to Commit Kidnapping Resulting in Death; Kidnapping Resulting in Death Bradley Andree Martinez-Mora Hyattsville, MD 21 “Joker” Los Crazy Brothers RICO-Conspiracy; Conspiracy to Commit Kidnapping Resulting in Death Jexon Madrid-Flores Boston, MA 22 “Spooky” Tiny Locos Sureños RICO-Conspiracy; Conspiracy to Commit Kidnapping Resulting in Death VICAR-Attempted Murder; VICAR-ADW; Brandishing a Firearm During a Crime of Violence; Discharging a Firearm During a Crime of Violence; Aggravated Assault while Armed


title: Wheatland Man Pleads Guilty to Submitting False Claims Against the United States in Relation to COVID-19 Fraud Scheme

body_text: SACRAMENTO, Calif. — Jason Toland, 43, of Wheatland, pleaded guilty today to one count of submitting false claims against the United States related to COVID-19 pandemic tax credits, U.S. Attorney Phillip A. Talbert announced. According to court documents, Toland attempted to obtain more than $13.4 million in COVID-19 pandemic relief, including by filing multiple false tax returns with the IRS seeking refunds for the Employee Retention Credit and the COVID Sick and Family Leave Credit. Toland used shell companies that had no real employees and no actual business activity to seek over $11 million in such tax refunds to which he was not entitled. In addition, between 2020 and 2023, Toland used the shell companies to fraudulently obtain more than $1.7 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. All these tax credits and programs were intended to alleviate the economic harm caused by the COVID-19 pandemic on real businesses with real employees and operating expenses. To pursue the funds, Toland submitted multiple: (1) Tax forms 941 and 941-X seeking Employee Retention Credit and COVID Sick and Family Leave Credit refunds from the IRS; (2) PPP loan applications to various banks; and (3) EIDL applications to the Small Business Administration (SBA) – all on behalf of the phony shell companies. In one specific instance, on Nov. 18, 2022, Toland filed two false Forms 941 (which are Employer’s Quarterly Federal Tax Returns) to the IRS that resulted in improper refunds in the amount of $210,868 being paid out to Toland. Of the over $13.4 million that he sought through false tax returns and fraudulent loan applications, Toland successfully obtained over $1.95 million. All the funds Toland received went to his own personal enrichment. As a part of his plea agreement, Toland has agreed to pay $1,952,504 in restitution, plus interest and fees, to the IRS and SBA. “Tax credits are another face of pandemic fraud, and our COVID-19 Fraud Strike Force will continue to pursue those who abuse them,” said U.S. Attorney Talbert. “The defendant’s false claims targeted credits meant for real businesses suffering real consequences of the pandemic. The U.S. Attorney’s Office remains committed to working with our law enforcement partners to identify and prosecute those who provide false information to seek these credits.” “Mr. Toland’s plea reinforces a simple message. Crime does not pay,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “Our highly trained agents are experts at investigating financial crimes and following the money directly to criminals pursing ill-gotten gains. Our agents are also motivated to protect the American people against fraudsters siphoning money from citizens in need.” This case is the product of an investigation by IRS Criminal Investigation (CI) Oakland Field Office in collaboration with the CI Nationally Coordinated Investigation Unit. IRS-CI received significant assistance from the SBA Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Denise N. Yasinow is prosecuting the case. Toland is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 8, 2024. Toland faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.


title: Defendants in Poland and Florida Indicted for Scheme to Import Used Airbags, Sold as New, into the United States

body_text: FRESNO, Calif. — A federal grand jury returned an indictment against Pawel Pankow, 41, of Wolow, Poland, and Magdalena Pankow, 48, of Palm Coast, Florida, charging them with conspiracy to smuggle goods into the United States by means of false statements and to commit wire and mail fraud, as well as four separate counts of mail fraud, U.S. Attorney Phillip A. Talbert announced. Magdalena Pankow was arrested over the weekend in Flagler County, Florida, after the indictment issued last Thursday. According to court documents, Pawel Pankow began shipping airbags into the United States no later than in 2008 and sold thousands of them through online sales, mostly through eBay. Pankow listed the items as in brand new condition and as genuine original equipment parts even though the items were used, counterfeit, assembled from used components, and/or not authorized for sale in the United States. Pawel Pankow shipped airbags, purchased from sources in Europe and China, to Magdalena Pankow in Florida and often mislabeled the shipments as products other than airbags. Magdalena Pankow then fulfilled orders from locations in Florida by sending them through the United States Postal Service. Federal regulations classify airbags as hazardous material, and they cannot be shipped by air or ground through the United States Postal Service. This case is the product of an investigation by FBI offices in Fresno, California, and Jacksonville, Florida, with assistance from the Intellectual Property Rights Center in Arlington, Virginia, United States Customs and Border Protection, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa is prosecuting the case. Magdalena Pankow is scheduled to make her initial appearance before a United States magistrate judge in Jacksonville, Florida. Pawel Pankow has not yet been arrested or appeared in court on the case. If convicted, the defendants each face a maximum statutory penalty of 20 years in prison on each fraud count and five years in prison on the conspiracy count. Each charge has a maximum potential fine of $250,000 and a three-year term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.


title: Justice Department’s Civil Rights Division In Partnership With The United States Attorney’s Office For The District Of Maryland To Monitor Compliance With Federal Voting Rights Laws In Maryland

component: Civil Rights Division

body_text: The Justice Department announced today that it will monitor elections on May 14 in Prince George’s County, Maryland, to ensure compliance with federal voting rights laws. The department’s Civil Rights Division and the United States Attorney’s Office for the District of Maryland work in partnership to enforce the federal voting rights laws that protect the rights of all citizens to access the ballot. These Department of Justice components regularly deploy their staff to monitor for compliance with federal civil rights laws in elections in communities all across the country. In addition, the Civil Rights Division also deploys federal observers from the Office of Personnel Management, where authorized by federal court order. The Civil Rights Division’s Voting Section and the United States Attorney’s Office for the District of Maryland enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Civil Rights Act and Uniformed and Overseas Citizens Absentee Voting Act. More information about voting and elections is available on the Justice Department’s website at www.justice.gov/voting . Learn more about the Voting Rights Act and other federal voting laws at www.justice.gov/crt/voting-section . Complaints about possible violations of federal voting rights laws can be submitted through the Civil Rights Division’s website at civilrights.justice.gov or by telephone at 1-800-253-3931. # # #


title: Missouri Resident Pleads Guilty to Attempted Attack on  the White House with a Rented Truck

body_text: WASHINGTON – Sai Varshith Kandula, 20, of St. Louis, Missouri, pleaded guilty today in an attempted attack on the White House, on May 22, 2023, that included driving a U-Haul truck into the fence surrounding the building. Kandula pleaded guilty to a charge of willful injury or depredation of property of the United States. The plea agreement was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Matthew Stohler of the U.S. Secret Service Washington Field Office, FBI Special Agent in Charge Sanjay Virmani of the FBI Washington Field Office’s Counterterrorism Division, Chief Jessica M. Taylor of the U.S. Park Police, and Chief Pamela A. Smith of the Metropolitan Police Department (MPD). U.S. District Court Judge Dabney L. Friedrich scheduled sentencing for August 23, 2024.. Kandula is an Indian national who was born in Chandanagar, India. At the time of the incident, he was a lawful permanent resident of the U.S. with a green card. According to court documents, Kandula flew on a commercial flight from St. Louis, Missouri, to Washington D.C. in the afternoon of May 22, 2023, connecting through another airport on a one-way airline ticket. Kandula arrived at Dulles International Airport about 5:20 p.m., and rented a truck at 6:30 p.m. He stopped for food and gas, and then drove to Washington, D.C., where he crashed into the barriers protecting White House and President’s Park at 9:35 p.m. at the intersection of H Street, Northwest and 16th Street, Northwest. Kandula drove onto the sidewalk, sending pedestrians running from the scene. After striking the barriers, the truck backed up in reverse, then lurched forward, striking the metal barriers a second time. The second impact disabled the truck which began smoking from the engine compartment and leaking fluids. Kandula next exited the vehicle and went to the back of the truck. From a backpack he removed a flag, a three-by-five foot red-and-white banner with a Nazi Swastika in the center, and brandished it. U.S. Park Police and the U.S. Secret Service officers arrested Kandula at the scene and took him into custody. According to the plea agreement, at the time Kandula crashed the truck into the White House perimeter, he was attempting to gain access to the White House to seize political power. Kandula’s intent was to replace the democratically elected government with a dictatorship fueled by ideology of Nazi Germany and for himself to be put in charge of the United States. Kandula admitted to investigators that he would have arranged for the killing of the U.S. President and others if necessary to achieve his objective. His actions were calculated to influence or affect the conduct of government by intimidation or coercion. Kandula’s actions caused $4,322 in damage to the National Park Service and over $50,000 in damage to U-Haul International. This amount included costs for repairing the metal bollard barriers to their original condition and ensuring structural soundness, oil and chemical removal, spill cleanup, and disposal of fluids from the crashed U-Haul, and the cost of the destroyed U-Haul truck. Kandula planned the attack for several weeks. Prior to renting the truck and crashing it on White House grounds, he made several attempts to gain access to vehicles or armed security guards. For example, on April 22, 2023, Kandula requested 25 armed guards and an armored convoy from a security company located in Virginia. On May 4, 2023, Kandula attempted to contact several other companies in an attempt to rent a large commercial tractor-trailer truck, a dump truck, or another large truck. Kandula was unsuccessful in arraigning for security guards or a tractor-trailer truck or dump truck. Kandula had attempted to arrange for the services of these security guards and the use of large vehicles in order to carry out his offense against the U.S. Government. This case was investigated by the U.S. Secret Service, the FBI’s Counterterrorism Division, the U.S. Park Police, and the MPD. It was prosecuted by Special Assistant U.S. Attorney Alex Schneider.


title: Tracy Resident Sentenced To Serve Home Confinement And Probation For Computer Attack On Discovery Bay Water Treatment Facility

component: USAO - California, Northern

body_text: OAKLAND – Rambler Gallo was sentenced to serve six months of home confinement and 36 months of probation for intentionally causing damage to the computer network for the Discovery Bay Water Treatment Facility, located in the Town of Discovery Bay, Calif., and thereby threatening public health and safety. Specifically, Gallo intentionally uninstalled the main operational system for the water treatment plant that operates the automated monitoring system that protects the entire water treatment system, including monitoring and controlling the chemical levels and filtration of the water across all the Discovery Bay water service facilities. The sentence was handed down on Wednesday by Haywood S. Gilliam Jr., United States District Judge. The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. Gallo, 53, of Tracy, Calif., was a full-time employee of a private Massachusetts-based company identified in the indictment as Company A, which contracted with Discovery Bay to operate the town’s wastewater treatment facility. The facility provides treatment for the water and wastewater systems for the town’s 15,000 residents. During his employment with Company A, from July of 2016 until December of 2020, Gallo was the company’s “Instrumentation and Control Tech,” with responsibility for maintaining the instrumentation and the computer systems used to control the electromechanical processes of the facility in Discovery Bay. According to his plea agreement, while Gallo was employed with Company A, he installed software into his own personal computer and into Company A’s private internal network that allowed Gallo to gain remote access to Discovery Bay’s Water Treatment facility computer network. Gallo resigned from his employment with Company on November 25, 2020, giving two weeks’ notice. Approximately five weeks later, Gallo accessed the facility’s computer system remotely and transmitted a command to uninstall certain software which was designed to perform as the main hub of the facility’s computer network. The software that Gallo accessed protected the entire water treatment system, including water pressure, filtration, and chemical levels. Documents filed by the government in connection with Gallo’s sentencing describe how Gallo’s actions took the monitoring software offline into the following day when it was discovered by employees. Employees thereafter took steps to rectify the situation and mitigate any potential damage to the water treatment system. The government argued that Gallo’s actions “were well thought out to be as disruptive as possible” and “caused a potential threat to the health and safety of the community’s water supply.” A federal grand jury indicted Gallo on June 27, 2023, charging him with one felony count of transmitting a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i). Gallo pleaded guilty to the charge. In addition to the prison term, Judge Gilliam ordered Gallo to forfeit his computer and to pay $44,250 restitution. Assistant United States Attorney Cynthia Frey is prosecuting this case with assistance from Kathy Tat and Kevin Costello. The case is being investigated by the FBI.


title: Rochester man pleads guilty for his role in illegal sports betting ring

component: USAO - New York, Western

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Louis P. Ferrari, II, 42, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to conspiracy to transmit wagering information in interstate commerce and conduct an illegal gambling business, which carries a maximum penalty of five years in prison, and a fine of $250,000. Assistant U.S. Attorneys Meghan K. McGuire and Melissa M. Marangola, who are handling the case, stated that between April 25, 2019, and April 17, 2021, Ferrari conspired with Dominic Sprague, Anthony Amato, Tomasso Sessa, Joseph Lombardo, Jeffrey Boscarino, James Civiletti, and others, to finance, manage, and own all or part of an illegal bookmaking business, which had a gross daily revenue of approximately $2,000.00. In furtherance of the conspiracy, Ferrari, and co-defendant Amato, created accounts for Sprague, Boscarino, and Lombardo on “sport700.com”, a website for placing and tracking bets on sports events. Sprague, Boscarino, and Lombardo would call and text Ferrari to place, edit, and remove bets on sporting events for individual bettors on sport700.com. Ferrari also called and texted messages to Amato asking him to create accounts, change passwords, and place, edit, and remove bets for Sprague, Boscarino, Lombardo, and individual bettors on sport700.com. Ferrari, Sprague, and Lombardo collected money owed by individual bettors and money owed to individual bettors in cash and through online payment applications, including CashApp, PayPal, Venmo, and Zelle. After Sprague and Lombardo collected from individual bettors, they kept a portion and paid the remainder to Ferrari. Sessa and Civiletti also collected from individual bettors in cash and through online payment applications, and then paid Sprague and Ferrari. The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Miklos Szoczei II, the Greece Police Department, under the direction of Chief Michael Wood, and the Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office. Sentencing is scheduled for August 7, 2024, at 3:00 p.m. before Judge Wolford. # # # #


title: Jamestown man pleads guilty for his role in narcotics conspiracy

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jacob Snow, 37, of Jamestown, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to narcotics conspiracy, which carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that between January and May 24, 2021, Snow conspired with Alisha A. Klinger and others to sell heroin, fentanyl, and methamphetamine in the Jamestown area. Snow sold drugs and collected payments on behalf of Klinger. On May 24, 2021, an individual was kidnapped at gunpoint and driven to a wooded area, where the individual was then hit multiple times, including by Snow. This incident involved approximately $10,000 worth of heroin/fentanyl and methamphetamine that the individual had taken from Snow a day prior. Asked if the individual should be killed, Snow responded, “no, I think we should give her the opportunity to pay that back.” Charges remain pending against Klinger. 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 . The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone. Sentencing will be scheduled at a later date. # # # #


title: Canadian man going to prison for smuggling marijuana at the Peace Bridge

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Ajaypal Dhillon, 20, of Ontario, Canada, who was convicted of smuggling merchandise into the United States, was sentenced to serve 30 months in prison by U.S. District Judge John L. Sinatra, Jr. Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on the afternoon of July 27, 2023, Dhillon drove a commercial tractor-trailer to the Peace Bridge Port of Entry seeking entry into the United States from Canada. At primary inspection, Dhillon indicated he was transporting frozen waffles destined for a Publix grocery store warehouse in Georgia. Publix representatives stated that the shipment was not expected, and the purported shipper of the product confirmed that the shipment was fraudulent. Dhillon was referred to secondary inspection, where Customs and Border Protection officers discovered boxes containing over 2000 pounds of marijuana and over 50 kilograms of ketamine. Subsequent investigation identified five prior fraudulent trips made by Dhillon, four of the trips alleged the transport of candy, the fifth was also for waffles after an attempt to transport “candy” was denied by the customs broker. The sentencing is the result of an investigation by Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino. # # # #


title: Supreme Court Denies Cert in UDF Case, Upholding Four Convictions

component: USAO - Texas, Northern

body_text: The United States Supreme Court on Monday declined to review the United Development Funding (UDF) case, allowing a Fifth Circuit decision upholding the convictions of four company executives to stand, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. In January 2022, a federal jury convicted UDF CEO Hollis Morrison Greenlaw, UDF Partnership President Benjamin Lee Wissink, UDF CFO Cara Delin Obert, and UDF Asset Management Director Jeffrey Brandon Jester of ten counts, including conspiracy to commit wire fraud affecting a financial institution, conspiracy to commit securities fraud, and securities fraud. The UDF executives were sentenced in May 2022 to a combined 20 years in federal prison. That same month, the UDF executives appealed their convictions to the Fifth Circuit. Following oral argument, the Fifth Circuit affirmed the UDF executives’ convictions and noted the government’s “avalanche of evidence” proving its case. After the Fifth Circuit denied rehearing en banc, the UDF executives asked the Supreme Court to review their case. On Monday, the Supreme Court denied certiorari without comment. Assistant U.S. Attorneys Amy Burch, Amy Mitchell, Elise Aldendifer, and Brian McKay handled the appeal in the Fifth Circuit. Assistant U.S. Attorneys Tiffany H. Eggers, Rachael Jones, Elyse Lyons, and Errin Martin prosecuted the case in the district court.


title: Lincoln Man Sentenced to Seven Years in Child Pornography Case

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Joseph D. Maciarz, Jr., 63, of Lincoln, Nebraska, was sentenced on May 13, 2024, in federal court in Lincoln for receipt of child pornography. Senior United States District Court Judge John M. Gerrard sentenced Maciarz to 84 months’ imprisonment. There is no parole in the federal system. After Maciarz’s release from prison, he will begin a 12-year term of supervised release. Maciarz was further ordered to pay a total of $5,100 in special assessments, and $24,000 in restitution. On November 5, 2022, an investigator with the Nebraska State Patrol was able to download a few files containing child pornography from a peer-to-peer file sharing network. The investigator was then able to obtain the IP address of the computer sharing the files. The IP address traced back to Maciarz’s residence. Police obtained a search warrant for the residence, which was executed on January 19, 2023. Numerous electronic devices were seized. Maciarz was home at the time and interviewed by police. He admitted that he had been downloading and uploading child pornography off and on for the past twenty years. The electronic devices were later examined and found to contain more than 4,000 files depicting child pornography. In some of the files, the victims ranged in age from infant to 9 years old. This case was investigated by the Nebraska State Patrol.


title: U.S. Attorney Dena J. King Delivers Commencement Address At Isothermal Community College

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King delivered the commencement address for two graduation ceremonies held at Isothermal Community College (ICC) in Spindale, North Carolina. The first ceremony recognized graduates who earned associate degrees, diplomas, and certificates. The second ceremony recognized students who graduated with adult high school diplomas or general equivalency diplomas. “It is an honor and a privilege to address the graduating classes of 2024,” said U.S. Attorney King. “I commend the graduates for their determination, resilience, and perseverance to reach this pivotal moment in their lives. I congratulate each of them for reaching this significant milestone and I wish them a future filled with success and endless possibilities as they embark on a new chapter in their lives. I am certain that they will continue to pursue their dreams and make a positive impact on society.” In her commencement speech, U.S. Attorney King encouraged the graduates to embrace the challenges and opportunities that lie ahead and urged them to continue their journey of lifelong learning. U.S. Attorney King also stressed the importance of acknowledging those who aided graduates along the way, and to pay it forward by supporting others in the pursuit of their aspirations, noting that this is how “we progress in our own lives, and how we advance as a society.” ICC is one of North Carolina’s leading community colleges serving Rutherford and Polk counties, with three locations, and a leading online learning college. ICC is an accredited institution with more than 100 associate degrees, diplomas, and certificates that prepare students for University transfer or immediate employment. The college also offers short-term, non-degree programs in healthcare, hospitality, emergency services, and more. ICC also serves high school students in the Rutherford Early College High School ( REaCH ) program, and also offers classes at area high schools through Career and College Promise program.


title: Colombian Businessman Sentenced to More Than Three Years in Prison for Money Laundering Conspiracy

body_text: BOSTON – A Colombian businessman has been sentenced for his participation in a money laundering conspiracy. Willian Acosta-Calderin, 53, was sentenced on May 8, 2024 by U.S. District Court Judge Richard G. Stearns to 40 months in prison. The defendant will be subject to deportation proceedings upon completion of the imposed sentence. In February 2024, Acosta-Calderin pleaded guilty to money laundering conspiracy and conducting substantive money laundering transactions. Beginning in 2016 and continuing until 2022, an investigation into a money laundering organization based primarily in Barranquilla, Colombia was conducted. An undercover agent infiltrated the organization by portraying himself as an international money launderer able to pick up bulk cash throughout the world, launder the proceeds through his United States-based accounts and send the money to Colombia through the Black Market Peso Exchange – a common method of trade-based money laundering used to repatriate the proceeds of drug trafficking to Colombia. Acosta-Calderin was a business owner in Colombia who used his business bank account to receive drug proceeds in Colombia. During the course of the conspiracy, Acosta-Calderin received over $1.5 million in wire transfers to his account. After receipt, Acosta-Calderin withdrew the funds from his account to pay out the money in Colombia to the owners. Acosta-Calderin also created fake invoices to mask the true source of the funds and evade anti-money laundering protocols. Acosta-Calderin gave the fake invoices to the undercover agent to support the transactions. During text communications with the undercover agent, Acosta-Calderin said that he could receive up to $400,000 at a time without having to worry about regulators. Acting United States Attorney Joshua S. Levy and Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter prosecuted the case. 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 . The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Honoring National Police Week

component: USAO - Indiana, Northern

body_text: HAMMOND— In honor of National Police Week, United States Attorney Clifford D. Johnson salutes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, National Police Week is observed Sunday, May 12 through Saturday, May 18, 2024. In 1962, President John F. Kennedy signed a proclamation which designated May 15 as Peace Officers Memorial Day and the week in which that date falls as Police Week. Every year, tens of thousands of law enforcement officers from around the world converge on Washington, D.C. to participate in planned events which honor those that have paid the ultimate sacrifice. Based on preliminary data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), approximately 136 law enforcement officers died in the line of duty nationwide during 2023. This is a sizeable decrease of approximately 39% from the 224 officers killed in 2022. The decrease of line-of-duty deaths for 2023 has occurred in most major categories that are tracked, including another year of substantial reductions in Covid-19 related deaths. Of the 136 officers killed in the line of duty in 2023, 47 officers died as result of gun fire. United States Attorney Clifford D. Johnson said, “I am grateful for the work law enforcement officials undertake every day to protect the citizens in their communities. Running toward danger to protect others is one of those selfless acts which deserves the utmost honor and respect. It is my solemn duty to honor all law enforcement officers who have paid the ultimate sacrifice in protecting others.” Tragically, seven (7) law enforcement officers from Indiana were killed in the line of duty in 2023. The names of these seven (7) officers, as well as the names of seven (7) other officers who died in Indiana in other years will be added to the National Law Enforcement Officers Memorial as part of this year’s ceremony. The names of the fallen officers have been added to the wall at the National Law Enforcement Officer Memorial and will be read on Monday, May 13, 2024, during a Candlelight Vigil in Washington, D.C. There are currently 24,067 names engraved on the Memorial. ###


title: Luzerne County Man Charged With Commercial Bribery

component: USAO - Pennsylvania, Middle

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jose L. Ortiz, age 48, of Drums, Pennsylvania, was charged May 8, 2024, in a criminal Information with conspiring to commit honest services fraud. According to United States Attorney Gerard M. Karam, the Information alleges that, during his tenure as a manager and director at a Pennsylvania food services company from 2014 to 2021, Ortiz and his coconspirators accepted cash bribes and other things of value from other coconspirators who owned and operated Global Staffing Services, Inc. and Penns Independent Staffing. Global Staffing Services, Inc. and Penns Independent Staffing were two companies that leased temporary employees to Ortiz’s company. In exchange for the kickbacks, Ortiz and his coconspirators entered contracts with and hired the temporary employees of the two staffing companies. Allegedly, over $18,000,000 were paid to the two staffing companies, in exchange for hundreds of thousands of dollars in kickbacks. Ortiz allegedly received approximately $200,000 of those cash kickbacks. Six other individuals were previously prosecuted in this investigation: Mark Holmes, age 66, of Hughes Springs, Texas, pleaded guilty to accepting, as the General Manager of the Pennsylvania food services company, approximately $400,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $7,800,000 from Holmes’s employer. Holmes also pleaded guilty to failing to remit approximately $135,000 in employment taxes to the IRS that were owed by Encore Staffing Solutions LLC, another temporary staffing company that he owned and operated. Encore Staffing Solutions LLC leased temporary employees to manufacturing businesses throughout Pennsylvania. Holmes awaits sentencing. Madeline Nieves, age 49, of Plains, Pennsylvania, pleaded guilty to a tax fraud conspiracy. Nieves conspired with other individuals to defraud the IRS, from 2018 to 2020, in connection with staffing company Encore Staffing Solutions LLC, which she owned and operated. Nieves failed to report Encore Staffing Solutions LLC employee wages to the IRS, resulting in approximately $67,000 in employment taxes owed, but never paid, by Encore to the IRS. Nieves also failed to report her own personal income from Encore Staffing Solutions LLC to the IRS. Nieves was sentenced to 15 months of imprisonment. Nari Lam, age 31, of Wilmington, Delaware, pleaded guilty to failing to remit employment taxes to the IRS. From 2016 through 2020, Nari Lam, as the owner of temporary staffing company Penns Independent Staffing, failed to pay approximately $300,000 in employment taxes owed by Penns Independent Staffing to the IRS. Nari Lam was sentenced to three years of probation. Danny Sing, age 60, of Philadelphia, Pennsylvania, pleaded guilty to conspiring with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees, and to failing to withhold and remit approximately $1,360,000 in federal employment taxes to the IRS. Danny Sing and his coconspirators paid Global Staffing Services, Inc. employees in cash, paid themselves in cash, and cashed all checks received from Global Staffing Services, Inc.’s clients, to conceal the income and wages from the IRS. The criminal activities occurred between 2013 and 2020. Sing also pleaded guilty to providing in excess of approximately $400,000 in bribes and kickbacks to managers and supervisors at Global Staffing Services, Inc.’s client, to obtain business for Global Staffing Services, Inc. Sing awaits sentencing. Den Lam, age 49, of Philadelphia, Pennsylvania, was charged in an information alleging that he conspired with other individuals to evade federal income taxes for approximately $1,600,000 in wages paid by Global Staffing Services, Inc. to its employees. Den Lam also was charged with failing to withhold and remit approximately $1,360,000 in federal employment taxes owed, but never paid, by Global Staffing Services, Inc. to the IRS. Jason R. Bonnewell, age 41, of North Abington Township, Pennsylvania, pleaded guilty to accepting, as a supervisor of the Pennsylvania food services company, approximately $150,000 in bribes and kickbacks from Global Staffing Services, Inc. and Penns Independent Staffing, in exchange for hiring their employees. The two temporary staffing companies, in turn, received approximately $13,000,000 from Bonnewell’s employer. Bonnewell also pleaded guilty to failing to disclose cash income on his personal tax returns. Bonnewell awaits sentencing. The cases were investigated by the IRS Criminal Investigations Division. The cases are being prosecuted by Assistant U.S. Attorney Phillip J. Caraballo. The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments and Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Former CEO and Controlling Shareholder of Fat Brands Inc., Former CFO, and a Tax Advisor Indicted in Alleged Scheme to Conceal $47 Million Paid to CEO in the Form of Shareholder Loans

component: USAO - California, Central

body_text: INDICTMENT (FAT Brands Inc., et al.) INDICTMENT (Wiederhorn firearm and ammo) LOS ANGELES – Andrew A. Wiederhorn, the former CEO and current controlling shareholder of the publicly traded Fat Brands Inc. (FAT), has been indicted on federal charges alleging a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT’s minority shareholders, and the broader investing public, the Justice Department announced today. According to the indictment returned Thursday by a federal grand jury, Wiederhorn – assisted by FAT’s chief financial officer and his outside accountant at advisory firm Andersen – concealed millions of dollars in reportable compensation and taxable income and evaded the payment of millions of dollars in taxes, while causing FAT itself to violate the Sarbanes-Oxley Act’s prohibition on direct and indirect extensions of credit to public-company CEOs in the form of a personal loan. “This defendant, the former CEO of a publicly traded company, is alleged to have engaged in a long-running scheme to defraud investors and the United States Treasury to the tune of millions of dollars,” said United States Attorney Martin Estrada. “Instead of looking out for shareholders, the defendant allegedly treated the company as his personal slush fund, in violation of federal law. The Corporate and Securities Fraud Strike Force of my office focuses on rooting out corporate malfeasance by corporate insiders, and we will continue to protect the public by bringing these important prosecutions.” “The indictment alleges that with the assistance of his co-defendants, Mr. Wiederhorn repeatedly evaded his taxes and the law as he engaged in a cover-up to avoid being accountable to shareholders,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “Rather than continuing to fund his lavish lifestyle, Mr. Wiederhorn will face serious consequences for his alleged criminal actions.” “The allegations contained in the indictment against Mr. Wiederhorn show that he is a serial tax cheat. His actions over decades hurt not only his company and its shareholders, but also every American taxpayer,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Failing to honestly and accurately report income shortchanges Americans, and places undue strain on honest taxpayers. CI is committed to investigating this sort of criminal behavior to ensure accountability and equity in the tax system.” The defendants charged in the indictment are: Wiederhorn, of Beverly Hills; William J. Amon, of Los Angeles, a certified public accountant, attorney, and one-time managing director of Andersen’s Los Angeles Office, who provided tax-advisory services to Wiederhorn, FAT, and FAT’s former affiliate, Fog Cutter Capital Corporation (FOG); Rebecca D. Hershinger, a Los Angeles-area resident who formerly served as FAT’s CFO and, in that role, certified FAT’s public filings; and Fat Brands Inc., a publicly traded global franchising company based in Beverly Hills that acquired and developed casual-dining restaurant concepts, including Fatburger, Johnny Rockets, Hurricane Grill and Wings, Yalla Mediterranean, and Ponderosa and Bonanza Steakhouses. Wiederhorn is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. The remaining defendants are expected to be arraigned during the first week of June. According to the indictment, Wiederhorn began disguising distributions to himself in the form of shareholder loans approximately 30 years ago, when he served as CEO of another company, Wilshire Credit Corporation (WCC). After forgiving himself some $65 million in putative debts owed to WCC, Wiederhorn resolved a federal grand jury investigation into that and related conduct by pleading guilty in 2004 in the District of Oregon to the payment of illegal gratuities and filing a false federal tax return. FOG and its affiliates are successor corporate entities to WCC and its affiliates. From at least 2006 through 2021, Wiederhorn was the subject of efforts by the IRS to collect personal income tax and trust fund taxes he owed personally and as a responsible party and guarantor for entities, including FOG, the indictment states. The IRS efforts included levies and liens on Wiederhorn’s accounts and assets due to outstanding taxes he owed. The IRS, beginning in 2016, assessed Wiederhorn penalties for FOG’s failure to pay trust fund taxes and failure to establish a payment plan. By March 2021, Wiederhorn’s unpaid personal income tax liability to the IRS totaled approximately $7,743,952, inclusive of statutory interest and penalties, according to the indictment. Beginning no later than 2010 and continuing through early 2021, Wiederhorn allegedly caused employees of FAT and FOG to compensate him by distributing to him approximately $47 million for his personal use and benefit. Wiederhorn, Amon, Hershinger and others miscategorized these distributions as “shareholder loans” and failed to disclose as reportable compensation to the IRS, SEC and the broader investing public, the indictment alleges. Neither FAT nor FOG required Wiederhorn to post collateral, make interest payments or observe any of the other commercial requirements and realities of true loans, according to the indictment, which adds that Wiederhorn generally determined for himself the amount, timing and form of both extension and forgiveness of these “loans” without informing the directors of either FAT or FOG. “After defendant FAT became an issuer of securities through its IPO [initial public offering], defendant Wiederhorn caused millions of dollars from defendant FAT’s accounts to be disbursed to defendant Wiederhorn and his family members for their personal benefit,” according to the indictment. “These disbursements were used to fund the purchase of private-jet travel, vacations, a Rolls Royce Phantom, other luxury automobiles, jewelry, and a piano.” The indictment goes on to outline several transfers of hundreds of thousands of dollars that Wiederhorn caused others at FAT to make directly from FAT accounts to pay Wiederhorn’s personal American Express credit-card debts. “Wiederhorn, posing as both ‘lender’ and ‘borrower,’ caused defendant FAT and FOG to extend to him and then ‘forgive’ tens of millions of dollars in distributions made in the fraudulent form of loans – all while paying no income tax on these distributions and, in fact, using them to generate net operating losses to provide defendant FAT with financially beneficial tax treatment,” the indictment alleges. Although FAT publicly claimed that it was “cooperating with the government” in connection with this investigation, after members of FAT’s Board communicated with the government, Wiederhorn removed every director other than himself in March 2023 and reconstituted FAT’s Board with a majority of non-independent directors under his control, according to the indictment. Wiederhorn is charged with one count of endeavoring to obstruct the administration of the Internal Revenue Code, six counts of tax evasion, and one count of false statements and omission of material facts in statements to accountants in connection with audits and reviews. Both Wiederhorn and Hershinger are charged with four counts of wire fraud, two counts of false statements and omission of material facts in statements to accountants in connection with audits and reviews, and one count of certifying faulty financial reports. Wiederhorn, Hershinger and FAT are charged with two counts of extension and maintenance of credit in the form of personal loan from issuer to executive officer. Hershinger is also charged with one count of making false statements to federal investigators, including, among things, denying that company funds were being used to pay Wiederhorn’s personal American Express bill. Amon is charged with four counts of aiding and assisting the filing of false tax returns. Any investors who believe they were victims of the crimes alleged in the indictment are encouraged to go to https://www.justice.gov/usao-cdca/united-states-v-andrew-wiederhorn-william-j-amon-rebecca-d-hershinger-and-fat-brands-inc for further information and updates regarding this matter. Wiederhorn has also been charged in a separate indictment for illegally possessing a firearm and ammunition after being convicted of a felony. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The FBI and IRS Criminal Investigation are investigating this matter. Separately, the U.S. Securities and Exchange Commission has also filed a civil enforcement action against Wiederhorn, Hershinger, FAT, and another FAT executive. This case is being prosecuted by Assistant United States Attorneys Adam P. Schleifer of the Corporate and Securities Fraud Strike Force and Kevin B. Reidy of the Major Frauds Section.


title: Connecticut Ophthalmologist Sentenced to Prison for Five-Year Health Care Fraud Scheme

body_text: BOSTON – A Connecticut doctor was sentenced yesterday in federal court in Boston for receiving kickbacks in exchange for ordering medically unnecessary brain scans. Dr. Donald Salzberg, 69 of Avon, Conn., was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year and one day in prison, to be followed by one year of supervised release. Salzberg was also ordered to pay $1.34 million in restitution to Medicare, Medicaid and private insurers. In July 2022, Salzberg pleaded guilty to one count of conspiracy to commit health care fraud and one count of conspiracy to receive kickbacks. Salzberg, a licensed medical doctor in the State of Connecticut for nearly 40 years, owned and operated Donald J. Salzberg, M.D., an ophthalmology practice in West Hartford, Conn. From 2014 through 2019, Salzberg conspired with a principal for a medical diagnostics company that performed transcranial doppler (TCD) scans – brain scans that measure blood flow in parts of the brain – to order hundreds of medically unnecessary TCD scans in exchange for kickbacks. Salzberg and his co-conspirator used false patient diagnoses to order the unnecessary brain scans, for which the co-conspirator would submit claims to Medicare and other insurance companies on behalf of the medical diagnostic company for payment. In exchange, Salzberg was paid cash kickbacks of $100 to $125 per test that he ordered, as well as sham administrative services fees. The scheme resulted in fraudulent bills of over $3 million to Medicare and private insurance companies. Acting United States Attorney Joshua S. Levy; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; Jodi Cohen, Special Agent in Charge of the FBI Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation Division, Boston Field Office; Carol S. Hamilton, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs Office of Inspector General, Northeast Field Office made the announcement. Assistant U.S. Attorney Howard Locker of the Health Care Fraud Unit prosecuted the case.


title: Minneapolis Marketing Executive Charged with Fraud, Money Laundering in $1.5 Million Embezzlement Scheme

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Minneapolis woman has been charged with embezzling over $1.5 million from her employer, announced United States Attorney Andrew M. Luger. According to court documents, Danielle Terese Eisenbacher, 39, was an employee of a Minneapolis-based marketing firm from October 2019 through October 2023. Eisenbacher held various roles in the company, including Director of Operations, Vice President of Operations, and Chief Operating Officer, and was responsible for managing the company’s finances. From January 2020 through October 2023, Eisenbacher used her positions to embezzle more than $1.5 million from her employer. As part of the scheme, Eisenbacher made unauthorized personal transactions using company credit cards, including for designer clothing, jewelry, furniture, personal travel, and home renovations. Eisenbacher tried to conceal her embezzlement by creating false entries in company accounting records to make it look like the unauthorized personal transactions were for legitimate business expenses. The indictment charges Eisenbacher with one count of mail fraud, six counts of wire fraud, and six counts of money laundering. Eisenbacher made her initial appearance in U.S. District Court before Magistrate Judge Douglas L. Micko earlier this week. This case is the result of an investigation conducted by the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matt Murphy 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: Career Offender Sentenced to More Than Three Years in Prison for Cocaine Distribution

component: USAO - Massachusetts

body_text: BOSTON – A Springfield man was sentenced yesterday for possessing cocaine intended for distribution while on supervised release for a prior heroin distribution conviction. Hector Quinones, 45, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 42 months in prison, followed by three years of supervised release. Quinones was indicted by a federal grand jury in April 2022. At the time, Quinones was on supervised release for a 2018 conviction for conspiracy to distribute heroin in the District of Connecticut. Quinones was also convicted for possession with intent to distribute in the Rhode Island as well as a 2016 conviction for delivering heroin in Rhode Island. Quinones was sentenced to two years to be served consecutively for the supervised release violation. Acting United States Attorney Joshua S. Levy; Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration in New England; and Lawrence Akers, Superintendent of the Springfield Police Department made the announcement. Assistant U.S. Attorney Todd E. Newhouse of the Springfield Branch Office prosecuted the case.