title: Las Vegas Resident Sentenced To Prison For COVID Relief Fraud

component: USAO - Nevada

body_text: LAS VEGAS – A Las Vegas man was sentenced yesterday by U.S. District Judge Gloria M. Navarro to 30 months in prison followed by one year of supervised release for submitting fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Relief Loan (EIDL) loan applications seeking more than $1 million under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to court documents, from May 2020 to June 2020, Jeremy Lee Attebery (42) submitted two false PPP loan applications and one false EIDL application. Attebery provided false information on his loan applications, such as number of employees, amount of monthly payroll, and gross revenues. In total, he applied for approximately $1,043,000 in fraudulent loans. Furthermore, he falsely stated on each application that he had not been convicted of a felony within the past five years. Attebery pleaded guilty in August 2022 to three counts of wire fraud. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement. The FBI investigated the case; and Assistant U.S. Attorney Jessica Oliva prosecuted the case. In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . ###


title: St. Louis County Realty Company Employee Admits $487,000 Fraud

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – An employee of a St. Louis County realty company on Tuesday admitted embezzling $487,000 from her employer. Crystal Hendrix, 49, of Festus, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to three counts of wire fraud. Hendrix admitted to hatching a scheme to defraud her former employer, a real estate company. Hendrix handled payroll as part of her duties and had access to the company bank accounts. From about Jan. 8, 2018 to Dec. 9, 2020, Hendrix sent over 140 payments from the company bank account to her own bank account, totaling approximately $483,037. Hendrix used the money at restaurants and to buy a vehicle, her plea agreement says. As part of her guilty plea, Hendrix agreed to forfeit money and property equal to the amount of her fraud. At her sentencing, set for June 1, she will be ordered to repay the money. The U.S. Secret Service investigated the case. Assistant U.S. Attorney Edward Dowd III is prosecuting the case.


title: U.S. Attorney’s Office, ATF and Billings law enforcement address gun violence in the community

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

body_text: BILLINGS — U.S. Attorney Jesse Laslovich, along with federal and local law enforcement officials, today addressed gun violence in the Billings community saying they are committed to keeping citizens safe by investigating and prosecuting the most dangerous offenders who carry and use firearms in drug trafficking or violent crimes, persons who illegally possess guns and those who possess stolen or illegal guns. During a news conference at the U.S. Attorney’s Office, U.S. Attorney Jesse Laslovich; Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Kirk Howard, of Denver; Billings Police Chief Rich St. John; and Yellowstone County Attorney Scott Twito, acknowledged the homicides, non-fatal shootings and other gun violence that have been occurring throughout the Billings area and discussed law enforcement’s strategy for combatting gun crimes. “There is no doubt that the gun violence racking the Billings community is a serious problem, often leading to tragic results. All citizens have a right to feel safe in their home and their community, which is why our office has made combatting gun crimes a top priority. Through the investigative hard work of our law enforcement partners and the dedication our assistant U.S. attorneys, our federal firearms convictions are on the rise. This coordinated response is critical to reducing violent crime and to getting dangerous offenders off the street,” U.S. Attorney Jesse Laslovich said. "ATF is committed to combating violent crime and illegal firearms trafficking. Crime guns, whether they are stolen, straw-purchased, or obtained through other illegal means, are too often found at the scenes of violent crimes, in the hands of violent offenders,” said Acting Special Agent in Charge Kirk Howard. “Our priority is to identify trigger pullers and disband criminal organizations using ATF technology and resources, in partnership with local law enforcement and prosecuting offices." “Violent crime has dominated the headlines of late causing our citizens to question whether Billings is a safe place to live,” Billings Police Chief Rich St. John said. “The crime concerns are real and gun violence is at the forefront. The increase in gun violence among our youth brings urgency to resolving the problem. Ideally, we would like to stop the violence from occurring in the first place and much work is going into that effort. At the same time, the BPD along with our partners have re-doubled our efforts in enforcement and prosecution. We have made progress, but that is no solace to the families and friends who have lost loved ones. So, we will continue to partner and aggressively investigate and prosecute anyone who commits or aids these senseless acts,” he said. “Yellowstone County has seen far too much gun violence over the past several years. This gun violence does not seem to be slowing and is a challenge that we must overcome by working together,” Yellowstone County Attorney Scott Twito said. “The YCAO is proud to work with local and federal law enforcement partners developing best and new strategies to target Yellowstone County’s most dangerous gun offenders. I appreciate U.S. Attorney Laslovich and his efforts to put a federal focus on our community and prosecute these dangerous offenders. These are the offenders in our community who use illegally obtained firearms to enforce their meth or fentanyl drug distributions or hurt or intimidate others,” he said. Federal prosecutions for firearms crimes in Montana are increasing. In the past two years, the U.S. Attorney’s Office has obtained a record number of convictions on firearms offenses, with 153 convictions 2022 and 157 convictions in 2021. The third highest number of firearms convictions was in 2018, with 132 convictions. The gun violence, officials said, is being driven mostly by drug trafficking activity involving methamphetamine and fentanyl and by armed robbers seeking to obtain money to buy drugs. The ATF has seized numerous firearms and illegal guns while investigating violent crimes. The agency identified several trends that are contributing to the gun violence in the Billings community: Firearms are usually stolen, often from vehicles, or are straw purchased, where a person illegally buys a gun for another person who is prohibited from possessing firearms. Almost all shootings are related to drugs. Most of the shooters have prior convictions and are on state or federal supervision or are known to the criminal justice system. Law enforcement said they are working to reduce gun violence through coordinated, multi-agency investigations and prosecutions and through the federal initiative, Project Safe Neighborhoods, to ensure that persons who violate federal firearms laws are indicted in federal court and sentenced to federal prison, where there is no parole. Under federal law, it is illegal to possess a firearm if a person falls into one of nine prohibited categories, including being a felon, an unlawful user of a controlled substance or an illegal alien. Federal statutes also make it illegal to purchase, or even attempt to illegally purchase, firearms if the buyer is a prohibited person or illegally buying a firearm on behalf of another. Lying on an ATF form used to lawfully purchase a firearm and possessing stolen or illegal guns also are federal crimes. In addition, drug dealers who carry firearms to further trafficking activity or persons who possess guns to commit violent crimes face mandatory minimum sentences. Recent federal prosecutions in Montana include: Rodney Trimble, of Billings, was sentenced to 18 years in prison in February for possession with intent to distribute controlled substances and for prohibited person in possession of a firearm. Trimble, who had been recently released from a pre-release center, admitted to possessing meth, fentanyl pills and heroin found in his vehicle and told officers he also had been dealing the drugs from the pre-release center. Trimble further admitted to having two firearms he had obtained from “a couple of tweakers on the street” because someone had broken into his residence. Joel Zamora, of Billings, was sentenced to 15 years and eight months in prison in March 2022 for possession with intent to distribute meth. Law enforcement found in Zamora’s vehicle a loaded handgun under the driver’s seat, almost one pound of meth in a metal box and $3,500 cash. Anthony Ray Morgan, of Billings, was sentenced to nine years and nine months in prison in April 2022 for possession with intent to distribute meth. In two traffic stops, law enforcement found Morgan in possession of meth and firearms. In a search of his home, officers found a handgun that had a laser sight and loaded magazine, a rifle, U.S. currency concealed in a soft body armor carrier and approximately 3.75 pounds of meth. Officials also encouraged the public to help law enforcement reduce gun violence by reporting stolen firearms so they can be returned to the owner if recovered, securing firearms in their homes, not leaving guns in vehicles and calling law enforcement when they see suspicious or criminal activity. Removing violent criminals from the community is a key goal of the continuing work of Project Safe Neighborhoods (PSN) Yellowstone County. PSN is a U.S. Department of Justice initiative that brings together local, state, federal, and tribal agencies and stakeholders to address gun violence and other causes of violent crime in communities. PSN Yellowstone County has identified methamphetamine as the primary cause for violent crime in the community and is working diligently to arrest meth traffickers, armed robbers, and violent felons who possess firearms. XXX


title: CEO of Nevada-Based Publicly Traded Health Care Company Charged with Federal Crimes for Alleged Insider Trading Scheme

component: USAO - California, Central

body_text: LOS ANGELES – An indictment was unsealed today charging Terren S. Peizer, the CEO and Chairman of the Board of Directors of Ontrak Inc., a Henderson, Nevada-based publicly traded health care company, for allegedly engaging in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Ontrak stock. “Mr. Peizer is accused of using his insider knowledge as CEO of a publicly traded company to line his own pockets in violation of his duty to his company and its shareholders,” said United States Attorney Martin Estrada. “Mr. Peizer allegedly exploited material nonpublic information and tried to shield himself with a rule designed to ensure a fair and level playing field for all investors. With this indictment, we again affirm that the law applies equally to all and that corporate executives who unlawfully denigrate the integrity of our financial markets will be held accountable.” According to court documents, between May and August 2021, Peizer, 63, a resident of Puerto Rico and Santa Monica, allegedly avoided more than $12.5 million in losses by entering into two Rule 10b5-1 trading plans while in possession of material, nonpublic information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer allegedly entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. The indictment alleges that Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer allegedly entered into his second 10b5-1 trading plan approximately one hour after Ontrak’s chief negotiator for the contract confirmed to Peizer that the contract likely would be terminated. In establishing his 10b5-1 plans, Peizer allegedly refused to engage in any “cooling-off” period – the time between when he entered into the plan and when he sold stock – despite warnings from two brokers. Instead, Peizer allegedly began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%. “Today’s groundbreaking insider trading indictment demonstrates that the Department of Justice, together with our law enforcement partners, will not allow corrupt executives to misuse 10b5-1 plans as a shield for insider trading,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As this case shows, we have embraced the use of data to proactively identify and investigate fraud as we continue to ensure that ordinary investors are on an equal playing field with corporate insiders.” “The FBI and our partners are committed to holding insiders accountable at all levels, including those who act in bad faith when establishing trading plans in order to evade regulations,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “Americans must have trust in the marketplace and that can only be achieved when offenders who violate their obligations are held responsible.” Peizer is charged with one count of engaging in a securities fraud scheme and two counts of securities fraud for insider trading. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud scheme charge and 20 years in prison on each of the insider trading charges. The indictment represents the first time that the Department of Justice has brought criminal insider trading charges stemming from an executive’s use of a 10b5-1 trading plan. The investigation is part of a data-driven initiative led by the Fraud Section to identify executive abuses of 10b5-1 trading plans. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, nonpublic information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The FBI is investigating the case. Assistant U.S. Attorney Ali Moghaddas of the Major Frauds Section and Justice Department Trial Attorneys Matthew Reilly and Christina McGill of the Criminal Division’s Fraud Section are prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . For additional information and case event updates, please visit www.justice.gov/criminal-vns/case/united-states-v-terren-s-peizer .


title: Massachusetts Man Sentenced for Illegal Wildlife Trafficking, Fined $10,000

component: USAO - Maine

body_text: PORTLAND, Maine: A Massachusetts man was sentenced today in U.S. District Court in Portland for illegally transporting wild snowshoe hares from Maine to Massachusetts. U.S. District Judge Nancy Torresen sentenced Jon Rioux , 36, of Attleboro, Massachusetts to one year of probation and imposed a fine of $10,000. Judge Torresen also ordered Rioux to pay $1,843 in restitution to the Maine Department of Inland Fisheries and Wildlife. According to court records, in January 2021, an investigator received information that Rioux was soliciting Maine residents to live trap snowshoe hares. On four occasions Rioux illegally purchased snowshoe hares in Maine and then transported them to Massachusetts to use for beagle training and field trials. On March 16, 2022, Rioux was arrested by Maine Game Wardens and U.S. Fish and Wildlife Service Special Agents at the Kennebunk service plaza on the Maine Turnpike after his fifth purchase. “Illegally trafficking wildlife across state lines not only exploits public resources it threatens wild populations by creating the potential for disease transmission,” said Edward Grace, Assistant Director for the U.S. Fish and Wildlife Service Office of Law Enforcement. “We’re grateful for our close collaboration with state partners in Maine to help us enforce laws that protect wildlife resources on behalf of the American public." The Maine Warden Service and U.S. Fish and Wildlife Service investigated the case with assistance from the Massachusetts Environmental Police. # # # Edited 03/02/23 for clarity


title: San Jose, Illinois Man Sentenced to 60 Months in Prison for Distribution and Receipt of Child Pornography

component: Criminal - Child Exploitation and Obscenity Section

body_text: SPRINGFIELD, Ill. – A San Jose, Illinois man, Joshua Skelton, 42, of the 100 block of Furlane Drive in San Jose, Illinois has been sentenced to 60 months imprisonment followed by ten years of supervised release for distribution and receipt of child pornography. Skelton was arrested and indicted in November of 2021 and pleaded guilty in September of 2022. He has remained in the custody of the United States Marshal since his arrest. At the sentencing hearing, the government presented evidence that between January of 2021 and November of 2021 the defendant engaged in the receipt, distribution, and trading of child pornography of prepubescent children. According to the defendant’s own statements, he had traded between 100 and 200 images using online chatting applications. During the hearing, Senior U.S. District Judge Sue E. Myerscough found that the defendant’s conduct included distributing and receiving over six hundred images or videos of child pornography, and that at least one of the images included sexually explicit conduct involving a toddler or portrayed sadistic or masochistic conduct. The statutory penalties for distribution of child pornography are not less than five years but not more than 20 years in prison, up to life of supervised release, and a $250,000 fine. The statutory penalties for receipt of child pornography are not less than five years but not more than 20 years in prison, up to life of supervised release, and a $250,000 fine. The Federal Bureau of Investigation, Springfield Field Office investigated the case, with assistance from the Illinois State Police and the Logan County Sheriff’s Office. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution. The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Convicted Felon Pleads Guilty to Drug Trafficking

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to conspiracy to distribute 400 grams or more of fentanyl and 500 grams or more of methamphetamine. According to court documents, in March and April 2022, Calvin Ray Brown, 50, and a co-conspirator sold counterfeit pressed pills containing fentanyl to a Fairfax County Police Department confidential source and undercover detective on multiple occasions. When a search warrant was executed on Brown’s residence, officers recovered 999 counterfeit pressed pills containing fentanyl, approximately 723 grams of methamphetamine, over 500 grams of cocaine, and 665 grams of N,N-dimethylpentylone, a federally unscheduled substance similar to MDMA. Officers also recovered $25,001 in cash, a loaded semi-automatic “ghost” gun, and a bulletproof ballistics vest. During an interview, Brown admitted that he and his co-conspirator had been distributing fentanyl pills, methamphetamine, MDMA, and crack cocaine since January 2021. He stated that, over the course of the conspiracy, they obtained about 1000 fentanyl pills every two weeks, and had also obtained 1 kilogram of methamphetamine and 8 kilograms of cocaine. Brown has a lengthy criminal history, which includes numerous convictions for drug trafficking, as well as a conviction for possession of a firearm by a convicted felon. Brown is scheduled to be sentenced on June 26. He faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life imprisonment. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Rossie D. Alston accepted the plea. Special Assistant U.S. Attorney Lauren Hahn 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. 1:23-cr-30.


title: New Jersey Woman Sentenced for Conspiring to Steal Government Property

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Pamela Febo, age 38, of Keansburg, New Jersey, was sentenced today to three years of probation for fraudulently applying for unemployment benefits on behalf of a state prisoner. United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); Anthony J. Annucci, Acting Commissioner of the New York State Department of Corrections and Community Supervision (NYSDOCCS); and New York State Department of Labor (NYSDOL) Commissioner Roberta Reardon made the announcement. Febo agreed with her boyfriend, Irvis Jorge, to submit a fraudulent unemployment insurance claim to NYSDOL using Jorge’s personal identifying information, at a time when Jorge was an inmate in NYSDOCCS custody. Febo submitted the application in October 2020 and continued to re-certify Jorge’s benefits eligibility each week for approximately four months. Each weekly certification Febo submitted indicated that Jorge was “able and available to start work immediately” even though she knew Jorge remained incarcerated and could not work. NYSDOL paid the defendants $27,348 based on the repeated false certifications. Senior United States District Judge Gary L. Sharpe also ordered restitution in the amount of $27,348 and forfeiture in the amount of $12,444. In December, Judge Sharpe sentenced Jorge to 364 days in jail , to run consecutively to the state term of imprisonment he was serving at the time of this offense. The FBI, the NYSDOCCS Office of Special Investigations, and the NYSDOL Office of Special Investigations conducted the investigation. Assistant U.S. Attorney Jonathan S. Reiner prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Hogansburg Man Sentenced for Alien Smuggling that Resulted in River Rescue Operation

body_text: SYRACUSE, NEW YORK – Brian Lazore, age 45, of Hogansburg, New York, was sentenced today to 60 months in prison for conspiracy to commit alien smuggling and three counts of alien smuggling. United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement. As part of his previous guilty plea, Lazore admitted to smuggling six Indian citizens from Cornwall, Ontario, into the United States using the St. Lawrence and St. Regis Rivers. During the smuggling event on April 28, 2022, Lazore’s boat sank in the St. Regis River, and Lazore and the Indian nationals were ultimately picked up by the St. Regis Mohawk Rescue Vessel. Lazore admitted to smuggling the aliens for his own financial gain. Chief United States District Judge Brenda K. Sannes also imposed a 2-year term of supervised release to follow Lazore’s term of incarceration. The United States Border Patrol and Homeland Security Investigations investigated this case. Assistant U.S. Attorney Jeffrey Stitt prosecuted the case.


title: Albany Felon Sentenced to 85 Months for Possessing Cocaine and Heroin for Distribution, and Possessing a Firearm in Furtherance of Drug Trafficking

body_text: ALBANY, NEW YORK – Rodney Matthews, age 50, of Albany, was sentenced today to 85 months in prison for possessing and intending to distribute cocaine and heroin, and for possessing a firearm in furtherance of a drug trafficking crime. United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Chief Eric Hawkins of the Albany Police Department (APD) made the announcement. When he pled guilty in this case, Matthews admitted to possessing 306 grams of cocaine and 95 grams of heroin at his apartment in Albany, which he intended to distribute, as well as $11,966, which represented the proceeds of his drug trafficking. Matthews, a previously convicted felon, further admitted to possessing a loaded, privately manufactured .357 caliber semi-automatic pistol (aka a “ghost gun”) to guard against the potential theft of his drugs and proceeds. Matthews was initially arrested by APD officers after he was observed firing the pistol into a telephone pole outside his residence. Senior United States District Judge Gary L. Sharpe also ordered that Matthews forfeit the $11,966 seized from his apartment, and that he serve a 3-year term of supervised release following his release from prison. This case was investigated by the FBI and its Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies, including APD. Assistant U.S. Attorney Emmet O’Hanlon prosecuted this case. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.


title: Medical Equipment Company Pays $7 Million to Resolve False Claims Act Allegations

component: USAO - Kentucky, Eastern

body_text: LEXINGTON, Ky. — United Seating and Mobility, LLC, d/b/a Numotion (Numotion) has paid $7 million to resolve civil allegations that it made false statements in connection with claims for reimbursement it submitted to Kentucky Medicaid, two of Kentucky Medicaid’s Managed Care Organization contractors (MCOs), MO HealthNet (Missouri Medicaid), and D.C. Medicaid. Numotion is a national supplier of durable medical equipment (DME), such as hospital beds, manual wheelchairs, power wheelchairs and accessories, and gait trainers. The investigation involved DME that was “manually priced” by Medicaid payors in Kentucky, Missouri, and D.C. Those Medicaid programs reimbursed manually priced DME based on the cost Numotion actually paid the manufacturer for the equipment. Specifically, in Kentucky, reimbursement is based on “a manufacturer’s actual charges” billed to Numotion, or the “invoice price;” in Missouri, reimbursement is based on the “actual invoice of cost;” and in D.C., reimbursement is based on “original documentation reflecting all discounts.” In the Settlement Agreement, the United States alleged that Numotion did not disclose all discounts Numotion received from, or the cost Numotion actually paid to, DME manufacturers when submitting claims for manually priced DME to Kentucky Medicaid, two Kentucky Medicaid MCOs (Aetna Better Health of Kentucky and WellCare of Kentucky), MO HealthNet, and D.C. Medicaid. Numotion’s failure to disclose all discounts, or the actual cost paid, resulted in these Medicaid programs paying Numotion higher reimbursements than it was entitled to receive. The United States contended that the conduct violated the False Claims Act, 31 U.S.C. § 3729(a)(1)(B), a federal law that prohibits knowingly making or using a false statement material to a false claim for reimbursement. As part of the settlement, Numotion also entered into a 5-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General. The CIA requires, among other things, that Numotion implement a centralized risk assessment program, as part of its compliance program, and hire an Independent Review Organization to complete annual reviews of some of its Medicare and Medicaid claims. “By hiding or failing to disclose discounts, to receive higher reimbursement from Medicaid programs across the country, Numotion prioritized its financial incentives, to the detriment of these Medicaid programs,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Whenever the valuable resources of government health care programs are improperly dissipated to those who are not entitled, it diminishes the ability of these programs to meet the needs of their beneficiaries. We remain committed to doing our part to protect these programs from fraud, waste, and abuse and to preserve the taxpayer money that supports them.” “When health care companies do not follow federal health care billing requirements, the integrity of those safety net programs can be undermined,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, the dedicated work of OIG’s investigators and attorneys has again resulted in the recovery of taxpayer dollars and better protection against improper billing in the future.” The settlement resolves a lawsuit originally brought by L. Richard Parkey, a former Numotion employee, under the qui tam , or whistleblower, provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of this resolution, Parkey will receive approximately $1.05 million of the settlement amount. This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General. Assistant United States Attorney Jennifer A. Williams handled the matter for the United States. The case is United States ex rel. L. Richard Parkey v. United Seating and Mobility, LLC d/b/a Numotion , Case No. 3:17-cv-53-GFVT. The claims resolved by the settlement are allegations only, and there has been no determination of liability. – END –


title: Felon Sentenced to 65 Months for Federal Gun Charge

body_text: NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that SHAWN RABATHALY , age 23, of New Orleans, Louisiana, pleaded guilty on February 28, 2023 to a violation of the Federal Gun Control Act, Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). The single count indictment charged RABATHALY with being a convicted felon in possession of a firearm. Court documents reveal that RABATHALY was under surveillance by investigators, who saw him place an Anderson Model AM-15, 5.56 caliber assault rifle into a vehicle he occupied. RABATHALY is prohibited from possessing a firearm due to his criminal history. He was previously convicted of a felony offense in Orleans Parish for illegal possession of a controlled substance. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Jefferson Parish Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Charles Dustin Strauss of the Violent Crimes Unit.


title: Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported

component: USAO - Iowa, Northern

body_text: A man who illegally returned to the United States after being deported was sentenced today to more than two months in federal prison. Raymundo Gutierrez-Lagunas, age 35, a citizen of Mexico illegally present in the United States and residing in Linn County, Iowa, received the prison term after a January 12, 2023 guilty plea to one count of illegal reentry into the United States after having been deported. At the guilty plea, Gutierrez-Lagunas admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Gutierrez-Lagunas was previously deported in November 2013. On December 3, 2022, immigration officials learned Gutierrez-Lagunas had illegally returned to the United States and found Gutierrez-Lagunas at the Linn County Jail following his arrest on state charges. Gutierrez-Lagunas was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Gutierrez-Lagunas was sentenced to 80 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system. Gutierrez-Lagunas is being held in the United States Marshal’s custody until he can be turned over to immigration officials. The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR-98.


title: Tewksbury Woman Pleads Guilty to Embezzlement, Unemployment Fraud and Tax Crimes

component: USAO - Massachusetts

body_text: BOSTON – A Tewksbury woman pleaded guilty today in federal court in Boston to embezzling more than $1.8 million from her employer, collecting unemployment assistance while employed fulltime and related tax charges. Joanne Dinoto a/k/a Joanne Mara, 48, pleaded guilty to one count of bank fraud, three counts of wire fraud, one count of aggravated identity theft and one count of filing a false tax return. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for June 29, 2023. Dinoto was indicted by a federal grand jury in November 2021 and subsequently charged in a superseding indictment in March 2022. Between April 2008 and April 2020, Dinoto stole more than $1.8 million from her employer, a flooring company based in Acton, by falsely inflating her compensation, using her employer’s corporate credit card for personal expenses, and forging at least two checks to herself drawn on her employer’s checking account. To hide her scheme, Dinoto modified her employer’s accounting records. Dinoto later collected unemployment benefits from the Massachusetts Department of Unemployment Assistance under her true Social Security number, despite the fact that she was then working full time for a different employer, a lighting company based in Wilmington, under a fake Social Security number. Between 2015 and 2020, Dinoto did not report the more than $1 million that she embezzled from the Acton company or received from the Wilmington company on her federal income tax returns. The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $1 million or twice the gross gain or loss. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $250,000. The charge of aggravated identity theft provides a mandatory sentence of two years in prison, up to one year of supervised release and a fine of up to $250,000 or twice the gross gain or loss. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors. United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations made the announcement today. The Acton Police Department and the Middlesex District Attorney’s Office also provided valuable assistance. Assistant U.S. Attorney Kristen A. Kearney of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.


title: KC Man Charged with Drug Trafficking, Illegal Firearm After Arrest During Police Standoff

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man who was arrested last night during the police standoff in the 2300 block of Blue Ridge Boulevard has been charged in federal court for offenses unrelated to the standoff. Jimmie R. Lewis, Jr., 50, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo. Lewis remains in federal custody pending a detention hearing pending a detention hearing on Monday, March 6. Today’s federal criminal complaint charges Lewis with one count of possessing methamphetamine with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being a felon in possession of a firearm. These offenses allegedly occurred on Nov. 7, 2021. According to an affidavit filed in support of the federal criminal complaint, Lewis was driving a Ford F-150 pickup truck eastbound on 23 rd Street in Independence, Mo., on Nov. 7, 2021. Due to the truck matching the description of a stolen vehicle, an Independence police officer attempted to conduct a vehicle check. Lewis, however, led officers in a high-speed pursuit that reached speeds up to 100 miles per hour, passing other vehicles and running stop signs. Lewis’s vehicle struck a curb near Norledge and Evanston in Independence, flattening a tire. Lewis fled on foot but was apprehended. Lewis, who had $2,084 in his pocket, was carrying a backpack while running from police officers. Inside the backpack, officers found a loaded Taurus 9mm handgun and nine plastic bags that contained a total of 395.64 grams of methamphetamine. Officers also found 19.17 grams of methamphetamine under the passenger’s seat of the Ford F-150. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lewis has multiple prior felony convictions, the most recent being two counts of assault and one count of resisting/fleeing arrest in a Jackson County, Mo., case. The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Special Assistant U.S. Attorney Megan Baker. It was investigated by the Independence, Mo., Police Department.


title: United States Attorney John R. Lausch, Jr., Announces Resignation

component: USAO - Illinois, Northern

body_text: CHICAGO — John R. Lausch, Jr., United States Attorney for the Northern District of Illinois since 2017, today announced his resignation, which will become effective on March 11, 2023. First Assistant U.S. Attorney Morris “Sonny” Pasqual will assume the position of United States Attorney on an acting basis. Mr. Lausch was sworn in as United States Attorney on November 22, 2017, following his appointment by President Donald J. Trump. Under Mr. Lausch’s leadership, the U.S. Attorney’s Office achieved significant convictions in the areas of violent crime, public corruption, national security, financial fraud, drug trafficking, and many other areas of importance. Mr. Lausch also oversaw substantial achievements in civil cases, including procuring millions of dollars in settlements and judgments against individuals and companies for civil rights violations, health care fraud, and environmental harms. “It has been the privilege of a lifetime to lead the U.S. Attorney’s Office in Chicago,” said Mr. Lausch. “I want to thank all of my talented colleagues in the office, as well as our federal, state, and local law enforcement partners, for their hard work and dedicated public service during my tenure. It was my honor each and every day to help carry out the office’s mission to uphold the rule of law, keep our country safe, and protect our civil rights.” “John Lausch has served the citizens of the Northern District of Illinois and the United States with magnificent distinction,” said Mr. Pasqual. “I want to thank John for his tremendous stewardship of the office, and I wish him well in his future endeavors.” During Mr. Lausch’s tenure, the office focused on battling the stubborn violent crime problem in Chicago and throughout the Northern District, overseeing multiple racketeering prosecutions of members of organized criminal street gangs and gang factions, as well as the prosecutions of illegal gun offenders in Chicago and throughout northern Illinois. Among other strategies, the office launched a Gun Crimes Prosecution Team to disrupt the cycle of violence in the Chicago neighborhoods most in need, as well as a Gun Trafficking Strike Force to address the illegal transfer of firearms to felons and other prohibited persons. Mr. Lausch in 2020 oversaw federal law enforcement’s collaboration with state and local law enforcement partners to respond to civil unrest and rising rates of violent crime in the Chicago area. Mr. Lausch led the U.S. Attorney’s Office’s response to the Covid-19 pandemic. The office remained open during the pandemic, and Mr. Lausch oversaw criminal charges against numerous individuals for allegedly using the crisis to commit fraud during a vulnerable time in our nation’s history. In addition, the office maintained its strong tradition of prosecuting individuals for public corruption offenses during Mr. Lausch’s tenure. From 2018 to 2020, Mr. Lausch served on the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy, management, and operational issues impacting federal prosecutors’ offices across the country. Mr. Lausch also served on several AGAC subcommittees, including as Chair of the Violent and Organized Crime Subcommittee, and as a member of the White Collar Fraud, Controlled Substances, and Child Exploitation and Human Trafficking subcommittees. Mr. Lausch was also tasked by three Attorneys General to perform significant assignments related to sensitive matters of national importance. Mr. Lausch earned his law degree in 1996 from Northwestern University School of Law, and his bachelor’s degree in 1992 from Harvard University. He previously served in the U.S. Attorney’s Office as an Assistant U.S. Attorney from 1999 to 2010. Before taking over as First Assistant U.S. Attorney in 2022, Mr. Pasqual spent nearly 33 years in the office as an Assistant U.S. Attorney, including in several supervisory roles. Mr. Pasqual will assume the role of U.S. Attorney on an acting basis until a presidentially appointed candidate is confirmed by the U.S. Senate.


title: Illinois Woman Admits Stealing $439,000 From Bank

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A former bank branch manager from Morrisonville, Illinois admitted on Wednesday that she’d embezzled about $439,000 from her employer. Samantha J. Cherry, 35, pleaded guilty in front of U.S. District Judge Ronnie L. White to one felony count of theft or embezzlement by a bank officer. Cherry admitted that between Jan. 1, 2021 and March 18, 2022, while a manager at a UMB Bank branch in St. Louis, she took cash directly from the vault and moved currency from other cash supplies into her cash drawer totals. On March 18, 2022, Cherry told co-workers that she stole the money and gave it to her boyfriend, who she said had recently passed away. Cherry is scheduled to be sentenced June 6. The charge carries a potential penalty of up to 30 years in prison, a $1 million fine or both, and she will be ordered to repay the money. The FBI investigated the case. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.


title: KC Man Sentenced for Joplin Bank Robbery

body_text: SPRINGFIELD, Mo. – A Kansas City, Mo., man was sentenced in federal court today for robbing a Joplin, Mo., bank with what appeared to be a handgun after he had just robbed a bank in Kansas earlier the same day. Leland Scott Graham, 59, was sentenced by U.S. District Judge Brian C. Wimes to eight years in federal prison without parole. On Aug. 2, 2022, Graham pleaded guilty to one count of bank robbery. Graham admitted he stole $24,478 from Great Southern Bank in Joplin on July 19, 2021. Graham displayed what appeared to be a handgun and told one of the tellers, “This is a gun, do you want me to shoot you?” He then turned to another employee and said, “Hurry up or I will shoot you.” Graham later told investigators he put a black-handled screwdriver in his waistband so that the tellers would think it was a firearm. As he left the bank, Graham dropped more than $5,000 on the floor, which was recovered by law enforcement. Several hours before he robbed the bank in Joplin, Graham had robbed Landmark National Bank in Louisburg, Kansas. Surveillance images from the banks indicated the same suspect was involved in both robberies. When the Joplin Police Department released surveillance images to the media and requested the public’s assistance to identify the bank robbery suspect, investigators received a tip identifying Graham. Investigators used Graham’s cell phone to trace his location to Kansas City, Mo. On July 20, 2021, Kansas City, Mo., police officers attempted to conduct a traffic stop, but Graham fled from officers in a Dodge van, leading them on a pursuit at speeds up to 95 miles per hour through residential neighborhoods. Graham stopped the van he was driving and, while trying to run from the police, tripped and fell, breaking his arm. Graham had almost $2,000 in his pocket. Officers searched the van and recovered almost $9,000. After he was arrested, Graham told officers he had been on a five-day meth binge and had just taken $50 worth of crack cocaine. Graham told investigators he used some of the money stolen from Great Southern Bank to purchase the van that he was driving when officers attempted to stop him in Kansas City. Graham has two prior felony convictions for bank robbery. He was convicted in 2004 of robbing Great Southern Bank in Joplin and First State Bank of Joplin and sentenced to 20 years in state prison. He was paroled on Jan. 6, 2020, and less than a year later stole a truck. He was sentenced for felony theft on Jan. 20, 2021, and while on probation seven months later committed the two bank robberies in Joplin and Louisburg on July 19, 2021. State charges remain pending in the Louisburg bank robbery. This case was prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the FBI, the Joplin, Mo., Police Department, the Miami County, Kan., Sheriff’s Department, the Kansas City, Mo., Police Department and the Kansas City, Kan., Police Department.


title: Navajo man charged with aggravated sexual abuse of a child in Indian Country

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Pedro Lee Benally made an initial appearance in federal court facing two charges of aggravated sexual abuse in Indian Country. Benally, 29, of Montezuma Creek, Utah, and an enrolled member of the Navajo Nation, will remain in custody pending a detention and preliminary hearing held on March 2, 2023. A federal grand jury indicted Benally on February 23. According to the indictment and other court records, Benally allegedly engaged in a sexual act with a child, identified as Jane Doe. The alleged assault occurred in San Juan County, New Mexico, on the Navajo Nation. An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Benally may face up to life in in prison. The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Investigation. Assistant United States Attorney Caitlin L. Dillon is prosecuting the case. # # # 23-38


title: Columbus man sentenced for drug trafficking

component: USAO - New Mexico

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Sergio Ruiz was sentenced to 240 months in prison. A federal jury convicted Ruiz, 58, of Columbus, New Mexico, on one count each of conspiracy to distribute 500 grams and more of a mixture and substance containing methamphetamine, possession with intent to distribute 500 grams and more of a mixture and substance containing methamphetamine, and importation of 500 grams and more of a mixture and substance containing methamphetamine into the United States on June 8. A federal grand jury indicted Ruiz on March 23. According to the indictment and other court records, on April 28, 2021, Ruiz attempted to cross into the United States at the Columbus Port of Entry, coming from Palomas, Chihuahua, Mexico. Ruiz, a regular crosser at Columbus, was carrying a large amount of cinder blocks and two 55-gallon drums and was directed to the secondary inspection area. A scan revealed an anomaly in the spare tire, prompting inspection by a U.S. Customs and Border Protection (CBP) canine unit that resulted in a positive alert. CBP officers removed and inspected the spare tire. Inside the tire, inspectors found five packages containing a substance that tested positive for methamphetamine. The total weight of the five packages was 20.8 kilograms (45.76 pounds). Upon his release from prison, Ruiz will be subject to 5 years of supervised release. Homeland Security Investigations and Customs and Border Protection investigated this case. Assistant United States Attorneys Joni Autrey Stahl and Randy M. Castellano are prosecuting the case. # # # 23-39


title: Maplewood Man Sentenced to 30 Months in Prison for Illegal Possession of an Unregistered Pipe Bomb

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Maplewood man has been sentenced to 30 months in federal prison followed by three years supervised release for illegal possession of a pipe bomb, announced U.S. Attorney Andrew M. Luger. According to the plea agreement and other court documents, on April 28, 2022, law enforcement executed a search warrant at the Maplewood residence of Dylan Raymond Orr, 27, after discovering photos of two pipe bombs sent from Orr’s phone to a third-party. The images showed small BBs affixed to the exterior casing of the pipe bombs. During the execution of the search warrant, law enforcement discovered two six-inch pipes —one with BBs affixed, four end caps, and explosive powder, components which could be readily converted to a destructive device. Orr did not have a registration to possess these devices from the National Firearms Registration and Transfer Record as required by law. Orr pleaded guilty on November 9, 2022, to one count of possession of an unregistered destructive device. Orr was sentenced today in U.S. District Court before Judge Nancy E. Brasel. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savage Police Department. Assistant U.S. Attorney LeeAnn K. Bell prosecuted the case.


title: Two men sentenced for robbery

body_text: ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Daniel Montano and Eligius Montano were sentenced to 8 years in prison each. Daniel, 44, of Albuquerque, and Eligius, 25, or Bernalillo, pleaded guilty on Sept. 14, 2022, to interference with interstate commerce by robbery. On Apr. 18, 2022, Daniel and Eligius, who are father and son, robbed a Metro PCS store in Belen. As the men entered the business, they yelled to “put your hands where we can see them.” When the clerks did not initially cooperate, Eligius put his hands inside of his hoodie as if he had a firearm. The Montanos then told the clerks to face the wall with their hands up before taking one to the back room of the business. The Montanos succeeded in taking nearly $8,000 in merchandise. The Belen Police Department investigated this case with assistance from the FBI Albuquerque Field Office. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case. # # # 23-40


title: Florida Man Sentenced to Federal Prison for Possession With Intent to Distribute a Quantity of Methamphetamine

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS, LOUISIANA – DANTE BOWMAN , age 23, a resident of Florida, was sentenced today to 108 months imprisonment, 3 years of supervised release, and a mandatory $100 special assessment fee by U.S. District Judge Jane Triche Milazzo, after pleading guilty to a one-count indictment which charged him with possession with the intent to distribute five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans. According to court documents, following a traffic stop on Interstate-10, law enforcement officers located approximately 3.1 pounds of methamphetamine within locked canvas bags hidden in the spare tire area of a vehicle rented by BOWMAN . This case was investigated by Homeland Security Investigations and the Louisiana State Police. The prosecution was handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.


title: Caldwell Man Sentenced to 6 Years in Federal Prison for Possessing Child Pornography

component: U.S. Attorneys (USAO)

body_text: BOISE – David Daniel Lynn Bowden, 21, of Caldwell was sentenced to 72 months in federal prison for possession of child pornography, U.S. Attorney Josh Hurwit announced today. According to court records, in April 2021, the Idaho Internet Crimes Against Children (ICAC) Task Force received an investigative lead that Bowden possessed child pornography. ICAC is an investigative task force within the Idaho Office of the Attorney General funded by the State of Idaho and federal grants. ICAC further investigated the tip and found corroborating evidence that Bowden possessed child pornography. Based on ICAC’s investigation, law enforcement secured a search warrant for Bowden’s residence in Caldwell to search for evidence of child pornography crimes. During the search of Bowden’s residence, law enforcement discovered 187 images of child pornography on Bowden’s phone. Some of the child pornography depicted prepubescent children. “The collaborative efforts in Idaho to prosecute those who possess and distribute child pornography is second to none,” said U.S Attorney Hurwit. “Those who engage in this reprehensible conduct should know they have nowhere to hide.” “Thank you to ICAC, the Caldwell Police Department and the US Attorney’s Office for their outstanding work that led to this sentencing. I am proud to work beside these agencies as they strive to keep Idaho’s children safe," Attorney General Raúl Labrador said. Senior U.S. District Judge Lynn B. Winmill also ordered Bowden to serve ten years of supervised release following his prison sentence and ordered restitution to the victims. Bowden pleaded guilty to the charges on December 8, 2022. U.S. Attorney Hurwit thanked the Idaho Internet Crimes Against Children Task Force, the Idaho Office of the Attorney General, and the Caldwell Police Department for their cooperative efforts that led to the prosecution. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . ###


title: Two Western Washington artists plead guilty to illegally misrepresenting their work as “Indian Produced”

component: USAO - Washington, Western

body_text: Seattle – In two separate criminal cases, Western Washington artists pleaded guilty today to violations of the Indian Arts and Crafts Act (IACA) by representing themselves as Native American artists, when they have no tribal enrollment or heritage, announced U.S. Attorney Nick Brown. The men, 52-year-old Lewis Anthony Rath, of Maple Falls, Washington, and 67-year-old Jerry Chris Van Dyke aka Jerry Witten, of Seattle, both pleaded guilty today and will be sentenced on May 17, 2023. “When non-Native artists falsely claim Indian heritage, they can take sales away from true Indian artists working to support themselves with skills and techniques handed down for generations,” said U.S. Attorney Nick Brown. “Stores and galleries need to partner with artists to ensure those artisans and craftsmen advertised as Indian Artists truly have tribal status.” The investigation of Jerry Van Dyke began in February 2019, when the Indian Arts and Crafts Board received a complaint that Van Dyke was representing himself as a Nez Perce Indian Artist, when in fact, he is not an enrolled tribal member. Investigators from the U.S. Fish and Wildlife Service made undercover purchases at a gallery in the Pike Place Market area of Seattle that advertised pendants Van Dyke had made as Native American art. Van Dyke used the name Witten for these sales. When interviewed by agents, Van Dyke admitted knowing about the Indian Arts and Crafts Act, and admitted he was not a tribal member. Through the gallery Van Dyke had sold more than $1,000 worth of carved pendants represented as Native American artwork based on Aleut masks. According to the plea agreement, Van Dyke had worked with the gallery for more than ten years, with the gallery owner providing him with woolly mammoth ivory, antlers, animal bones and fossilized walrus ivory to make the pendants that it sold. Van Dyke pleaded guilty to Misrepresentation of Indian Produced Goods and Products. The crime is punishable by up to one year in prison. The investigation of Anthony Rath began in May 2019, after a complaint to the Indian Arts and Crafts Board. The investigation revealed that Rath falsely represented himself to be a member of the San Carlos Apache Tribe. Undercover agents purchased a carved totem pole and necklace from the same Pike Place Market gallery for more than $1,334. Agents noticed the gallery had other carvings by Rath that were represented as Native produced. At another shop on the Seattle waterfront agents purchased another carved totem pole and a mask, again represented to be Indian produced. The biography of the artist at both shops falsely claimed that Rath was Native American. Internet sites Rath used to sell his artwork also falsely claim he is an enrolled member of the San Carlos Apache Tribe. When agents executed a search warrant on Rath’s Whatcom County home and studio, they found he also possessed feathers from protected birds: golden eagles and other migratory birds such as hawks, jays, owls and more. Rath is forfeiting all those feathers to the government. Rath pleaded guilty to Misrepresentation of Indian Produced Goods and Products, Unlawful Possession of Golden Eagle Parts and Unlawful Possession of Migratory Bird Parts. Misrepresentation of Indian Produced Goods and Products and Unlawful Possession of Golden Eagle Parts are punishable by up to one year in prison, while Unlawful Possession of Migratory Bird Parts is punishable by up to six months in prison. “The Indian Arts and Crafts Board (IACB) is very pleased that Jerry Chris Van Dyke and Anthony Rath have been brought to justice for their roles in selling fake Indian artwork in violation of the Indian Arts and Crafts Act,” said U.S Department of the Interior IACB Director Meridith Stanton. The IACB is responsible by statute for administering the Indian Arts and Crafts Act, an anti-counterfeiting statute adopted by Congress aimed at ridding the Indian arts and crafts market of fakes like those being sold by defendants Van Dyke and Rath. “Cases like these are critical to preserving the integrity and viability of authentic Native American art and craftwork in general, as well as preserving the rich cultural heritage of the Nez Perce Tribe and the San Carlos Apache Tribe and the economic livelihoods of their artists and craftspeople,” Director Stanton added. “The IACB applauds the diligent work of the U.S. Attorney’s Office-Western District of Washington and the U.S. Fish and Wildlife Service IACA Enforcement Unit in investigating and prosecuting these important cases.” “Protecting Native American culture and traditions is a critical part of the Indian Arts and Crafts Act,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “The U.S. Fish and Wildlife Service's dedicated team of special agents work on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board to uphold the rule of law and ensure that those who choose to misrepresent the marketing of Indian arts and crafts products are brought to justice. Lewis Anthony Rath and Jerry Van Dyke took advantage of Native American artists and U.S. consumers for personal and financial gain and should be held accountable for their actions.” Under the terms of the plea agreement Van Dyke and prosecutors will both recommend no prison term. However, the ultimate sentence is up to U.S. District Judge Tana Lin. There is no agreed sentencing recommendation for Rath. The cases are being investigated by the U.S. Fish and Wildlife Service. The cases are being prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.


title: Kouts Woman Convicted of Tax Offenses

component: USAO - Indiana, Northern

body_text: HAMMOND- Kathy Lynch, age 64, of Kouts, Indiana, was found guilty following a 3-day jury trial presided over by United States District Court Judge Philip P Simon, announced United States Attorney Clifford D. Johnson. The jury found Lynch guilty of nine (9) counts of willful failure to pay over to the IRS, federal payroll taxes withheld from Kouts Health Care, Inc employees, between June 2013 and September 2015, in violation of Title 26, United States Code, Section 7202. Lynch will be scheduled for sentencing by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines. The case was investigated by the Internal Revenue Service-Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Kevin Wolff.


title: Local couple admits to benefitting from forced labor

component: USAO - Texas, Southern

body_text: McALLEN, Texas – Two Edinburg residents have pleaded guilty to benefitting from forced labor, announced U.S. Attorney Alamdar S. Hamdani. From June 24, 2021 until July 8, 2021, Eduardo Javier Gomez, 32, and his former partner Margarita Alvarez, 40, benefitted from a victim’s free labor which allowed the couple to have gainful employment. In addition, Gomez additionally earned money from a fireworks stand where the victim provided free labor. “Labor traffickers care about only one thing - money,” said Hamdani. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, this victim was rescued quickly thanks to the efforts of law enforcement. Now, this couple will pay the price for their despicable crimes and we can begin to bring some closure to the victim.” Law enforcement discovered that the victim had been illegally smuggled to the Rio Grande Valley. Gomez was holding her against her will. Gomez was requesting further payment from family members in exchange for the victim being moved further north. When the family was unable to pay, the victim’s phone was taken and she was forced to work as a nanny and housekeeper in the home Gomez and Alvarez shared. The victim also was forced to work in a fireworks stand Gomez managed. The victim was never paid. Two days after learning of the victim, authorities were able to locate and rescue her. U.S. District Judge Ricardo H. Hinojosa accepted the pleas and has set sentencing for May 9. At that time, the former couple faces up to 20 years in federal prison. Eduardo Javier Gomez has been and will remain in custody pending sentencing, while Margarita Alvarez was permitted to remain on bond. Homeland Security Investigations conducted the investigation. Assistant U.S. Attorneys Eliza Carmen Rodriguez, Sherri Zack and Kim Leo are prosecuting the case.


title: Real Estate Investor Pleads Guilty to $3 Million Wire and Bankruptcy Fraud Scheme

component: USAO - Michigan, Eastern

body_text: DETROIT - A real estate investor pleaded guilty yesterday to stealing over $3 million in a wire and bankruptcy fraud scheme, United States Attorney Dawn N. Ison announced. Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge, Federal Bureau of Investigation, Detroit Division. Sean Tissue, also known as “Sean Ryan,” age 37, of Social Circle, Georgia, and formerly of Rochester, Michigan, pleaded guilty to Wire Fraud and Bankruptcy Fraud before United States District Judge Mark A. Goldsmith. Tissue was the owner of numerous companies, including The Centureon Companies LLC, Greystone Home Builders LLC, Sycamore Homes LLC, Lenovo Homes LLC, NROL Holdings LLC, Phillip Ryan LLC, Boardwalk Heights B2R LLC, NROL Property and Investment LLC. According to the information provided to the Court at the guilty plea hearing, Tissue engaged in a real estate investment fraud scheme from 2015 through 2021. During that period, Tissue made, or caused others to make, false and fraudulent representations to induce potential investors from Israel, India, South Africa, and other countries to invest in real estate in Michigan, Texas, and other locations. Tissue, either directly or through agents, provided false and fraudulent material information to investors to induce them to invest and send him money through interstate or international wire transactions. To further the scheme, Tissue caused various false documents to be provided to investors, including fake deeds, fake wiring instructions, fake bank statements, fake leases, and fake inspection reports. Tissue also provided a fake name to investors (“Sean Ryan”). Tissue operated the scheme in the Eastern District of Michigan, and fraudulently obtained over $3 million. In November 2017 through May 9, 2019, Tissue also engaged in bankruptcy fraud scheme by fraudulently withholding recorded information pertaining to his assets and financial affairs from the Bankruptcy Trustee after filing for Chapter 7 bankruptcy. Tissue was initially arrested on a complaint charging him with wire fraud and has been in custody ever since. Tissue faces statutory maximum penalties of 20 years in prison for wire fraud and 5 years in prison for bankruptcy fraud. Judge Goldsmith will ultimately determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors. “Sean Tissue orchestrated an elaborate scheme to defraud individual investors. He tried to avoid repaying those investors by declaring bankruptcy, and his lies and deceits continued in the bankruptcy proceeding,” said U.S. Attorney Ison. “This guilty plea is an important step towards holding Mr. Tissue accountable for his actions and reflects my office’s commitment to prosecuting financial crime and protecting the integrity of the bankruptcy system.” “This defendant defrauded his real estate clients and then attempted to escape the consequences by declaring bankruptcy. His actions not only harmed individual clients, but also impacted potential investments in the City of Detroit,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “The FBI will continue to work with the U.S. Attorney’s Office and Bankruptcy Trustee to ensure the public’s continued trust in the bankruptcy process and to hold accountable those who would use our bankruptcy courts as a means of committing fraud.” The investigation of this case was conducted by the Federal Bureau of Investigation. Both the United States Attorney’s Office and the Federal Bureau of Investigation wish to acknowledge and thank the United States Trustee’s Office for its assistance. The case is being prosecuted by Assistant United States Attorney Craig A. Weier and Special Assistant United States Attorney Richard Roble.


title: Twice Convicted Drug Trafficker Detained in Third Drug Trafficking Investigation

component: USAO - Rhode Island

body_text: PROVIDENCE – A United Parcel Service employee twice convicted and incarcerated for trafficking kilos of heroin, and, who allegedly used his position at UPS to attempt to locate a package shipped from Columbia that contained multiple kilograms of cocaine, has been ordered detained in federal custody on drug trafficking charges, announced United States Attorney Zachary A. Cunha. In November 2022, Custom and Border Protection intercepted a package sent from Colombia and it was discovered that it contained cocaine packed inside of two ball bearings. When the package failed to be delivered to one of several addresses associated with Levys Tovar, 43, of Central Falls and Pawtucket, Tovar allegedly inquired of a customer service supervisor where he worked as to the location of the package. Tovar allegedly claimed that he was attempting to locate the package “for his neighbor.” Information obtained by Homeland Security Investigations determined that the intended delivery address was the home Tovar shared with his girlfriend and that the “neighbor” Tovar described did not exist. Tovar, charged by way of a criminal complaint with conspiracy to distribute and possess with the intent to distribute over 500 grams of cocaine and unlawful use of a communication facility (including the mails) to facilitate the distribution of a controlled substance, was ordered detained following his arrest on Monday. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty. According to court records, Tovar was convicted in federal court in 2004 of possession with intent to distribute one kilogram of heroin, and again in 2011on a charge of attempt to possess with intent to distribute one kilogram or more of heroin. Tovar is currently on supervised release for the 2011conviction, and is scheduled to return to court on March 7, 2023, for an initial appearance as an alleged violator of supervised release. The case is being prosecuted by Assistant United States Attorney Stacey A. Erickson. The matter was investigated by Homeland Security Investigations’ Northeast Corridor Border Enforcement Team; Custom and Border Protection; and the Central Falls, Pawtucket, Providence, and Warwick Police Departments. ###


title: Repeat Sex Offender Convicted of Second Federal Child Pornography Offense

body_text: DETROIT – A federal jury today convicted the former resident of a Detroit residential reentry center of receiving child pornography, United States Attorney Dawn N. Ison announced today. Joining Ison in the announcement was James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation. The trial, which began on Wednesday, February 22, 2023, was conducted before United States District Judge Terrence G. Berg. According to the evidence presented at trial, in June 2009, United States District Judge Robert H. Cleland sentenced Matthew Mercer-Kinser, now 36, to serve 151 months in custody for transporting child pornography. In July 2019, the Bureau of Prisons designated Mercer-Kinser to serve the final months of this sentence in a Detroit residential reentry center (RRC). While at the RRC, Mercer-Kinser sent numerous sexually explicit text messages to a minor relative. A concerned adult learned of these communications and reported Mercer-Kinser to the FBI. Execution of a search warrant for Mercer-Kinser’s smartphone revealed several images of child pornography and numerous disturbing communications demonstrating Mercer-Kinser’s continued, prolific sexual interest in children. When Mercer-Kinser testified in his own defense during trial, he admitted his sexual fetish for children. Mercer-Kinser faces a mandatory minimum sentence of 15 years in prison. A sentencing date has been set for June 29, 2023, at 9 am. “Protecting children from dangerous predators is a top priority for our office,” U.S. Attorney Ison said. “The actions of a concerned adult were crucial in bringing the crime in this case to the attention of law enforcement, and parents and other relatives need to be vigilant in watching out for signs of abuse or the exploitation of our kids.” “This defendant’s repeat sexual offenses make him an extreme danger to our youth. Today’s guilty verdict is a step closer to ensuring Mercer-Kinser no longer has access to children in any way,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The combined efforts of the member agencies in the FBI’s Southeast Michigan Trafficking and Exploitation Task Force continue to form a formidable barrier between predators and our children.” The case was investigated by special agents of the FBI. The case is being prosecuted by Assistant United States Attorneys Erin Shaw and Maggie Smith.


title: Okaloosa County Man Sentenced To 5 Years In Federal Prison For Firearm Offense

component: USAO - Florida, Northern

body_text: PENSACOLA, FLORIDA – Sean Lee Coy, 28, of Okaloosa County, Florida, was sentenced to five years in federal prison after pleading guilty to possession of a firearm by a convicted felon. The sentence was announced by Jason R. Coody, Unites States Attorney for the Northern District of Florida. “Our law enforcement partnerships play such a vital role in fighting violent crime and protecting the public,” said U.S. Attorney Coody. “This sentencing is another example that working jointly with our partners is making our communities safer.” On January 3, 2022, Okaloosa County Sheriff’s Office deputies stopped Coy for driving with an expired tag. After observing a glass smoking pipe in the vehicle and smelling marijuana, the deputies searched Coy and the vehicle, finding several small baggies of methamphetamine, marijuana, and a Ruger LCP .380 caliber pistol loaded with 13 rounds in an extended magazine. Coy attempted to flee the scene but was quickly apprehended. In 2016, Coy was convicted by the state of Florida of Aggravated Battery with a Deadly Weapon, stemming from a shooting in which he and two other individuals fired into a car with multiple passengers at close range, injuring four people. Coy was sentenced to 5 years for that crime and released in September of 2020. “Successes like this, connected to the Project Safe Neighborhoods program, are a perfect example of how a dedicated strategy to combat violence will pay-off both short-term and long-term.” “We are committed to being a steadfast partner in this mission, which benefits our area’s quality of life on multiple levels,” said Okaloosa County Sheriff Eric Aden. This case resulted from a joint investigation by the Okaloosa County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Walter Narramore 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. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Jury Convicts Ohio Man of Unlawfully Carrying Rifle and Ammunition into Washington, D.C.

component: USAO - District of Columbia

body_text: WASHINGTON – Brian Carruth, 45, currently of Rockport, Texas, was found guilty after a three-day jury trial on charges stemming from an incident in which he unlawfully carried an unregistered rifle and ammunition into the District of Columbia. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Alfonso Dyson, U.S. Secret Service Uniformed Division. According to the government’s evidence at trial, on December 5, 2021, U.S. Secret Service officers stopped Mr. Carruth, who was then a resident of Burbank, Ohio, in his vehicle near the corner of 18th St. and G St. NW, roughly one block from the White House. Officers first took note of Mr. Carruth’s pickup truck because it had what appeared to be a rifle case mounted to the bed portion of the vehicle. After being stopped, Mr. Carruth told officers that he was in Washington, D.C., on a matter of national security with the Department of the Interior and had plans to visit the White House. He later informed officers that there was a hunting rifle in the backseat area of his truck. Upon searching Mr. Carruth’s vehicle, officers found a bolt-action rifle equipped with a scope and 38 rounds of live ammunition, as well as two spent shell casings. The rifle was not registered in Washington, D.C. In addition, officers discovered documents in Mr. Carruth’s truck that appeared to discuss fundamentally restructuring and resetting the U.S. federal government. Mr. Carruth was found guilty of one count of Carrying a Rifle or Shotgun Outside Home or Place of Business, one count of Possession of an Unregistered Firearm, and one count of Unlawful Possession of Ammunition. The guilty verdict followed a three-day trial before the Honorable Michael O’Keefe in the Superior Court of the District of Columbia. The Honorable Andrea Hertzfeld scheduled sentencing for April 28, 2023. In announcing the conviction, U.S. Attorney Graves and Chief Dyson commended the work of those who investigated the case from the U.S. Secret Service. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Lashaune Briggs. Finally, they commended the efforts of Assistant U.S. Attorney Thomas Derbish and Assistant U.S. Attorney Julian Ginos, who prosecuted the case, and Assistant U.S. Attorney Callie Hyde, who investigated the case.


title: Former Bank Employee Charged With Million-Dollar Fraud And Embezzlement Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of KEVIN CHIU, a former business relationship manager at a financial institution headquartered in Manhattan, for a years-long bank fraud and embezzlement scheme to steal over $2 million from his former clients’ accounts. CHIU was arrested this morning in Brooklyn and will be presented today before U.S. Magistrate Judge James L. Cott. U.S. Attorney Damian Williams said: “As alleged, for years, Chiu abused his position as a business relationship manager at a financial institution to steal millions from his clients, including elderly clients. Today’s arrest is yet another example of this Office’s commitment to holding accountable those who commit financial frauds, especially those who are in positions of trust within financial institutions.” FBI Assistant Director Michael J. Driscoll said: “The complaint today alleges that Chiu exploited his access to facilitate a years-long scheme to embezzle more than two million dollars from his clients. Financial crimes like this ultimately undermine the public’s confidence in the financial system. Today’s arrest should serve as reminder to anyone willing to take advantage of their employment to steal funds - the FBI will ensure you are held accountable in the criminal justice system.” As alleged in the Complaint: [1] From at least on or about October 28, 2020, through on or about June 29, 2022, CHIU engaged in a scheme to steal from his clients’ accounts by using fraudulent transaction forms to transfer funds out of their accounts. He asked at least one elderly client to sign blank transaction forms when she was meeting with CHIU in person and provided that client with fake account statements so she would not know the true balance of her account, which CHIU had largely drained. In addition, CHIU transferred stolen funds from some client accounts to others from which he already had stolen to conceal the fraud. In total, CHIU stole over $2 million from his former clients, several of whom were elderly individual clients. CHIU used the money he stole to purchase securities and trade in the market. He also used the funds for personal expenses. * * * CHIU, 32, of Brooklyn, New York, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison; one count of embezzlement by a bank employee, which carries a maximum sentence of 30 years in prison; one count of money laundering, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the FBI. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lisa Daniels is in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: Cumberland Man Sentenced to Federal Prison for Possessing Child Pornography

body_text: PROVIDENCE – A Cumberland man who accessed and downloaded images and videos of child pornography, including images of prepubescent children, was sentenced today to nearly three years in federal prison, announced United States Attorney Zachary A. Cunha. In January 2022, the National Center for Missing and Exploited Children provided Homeland Security Investigations (HSI) with information that they obtained from a Canadian-based online messaging and chat service that, on multiple dates, an IP address and email, later determined by law enforcement to belong to Patrick K. Newton, 27, was used on multiple dates to access and view child pornography. On March 30, 2022, HSI agents and members of the Rhode Island State Police Internet Crimes Against Children Task Force executed a court-authorized search of Newton’s residence and found that electronic media storage devices possessed by Newton contained videos and images of child pornography. Newton pleaded guilty on October 17, 2022, to a charge of possession of child pornography. He was sentenced today by U.S. District Court Judge Mary S. McElroy to thirty-three months in federal prison to be followed by five years of federal supervised release. The case was prosecuted by Assistant United States Attorney Paul F. Daly, Jr. ###


title: CEO of Publicly Traded Health Care Company Charged for Insider Trading Scheme

component: Criminal Division

body_text: An indictment was unsealed today charging Terren S. Peizer, the CEO and Chairman of the Board of Directors of Ontrak Inc., a publicly traded health care company, for allegedly engaging in an insider trading scheme in which he fraudulently used Rule 10b5-1 trading plans to trade Ontrak stock. “Today’s groundbreaking insider trading indictment demonstrates that the Department of Justice, together with our law enforcement partners, will not allow corrupt executives to misuse 10b5-1 plans as a shield for insider trading,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As this case shows, we have embraced the use of data to proactively identify and investigate fraud as we continue to ensure that ordinary investors are on an equal playing field with corporate insiders.” According to court documents, between May and August 2021, Peizer, 63, a resident of Puerto Rico and Santa Monica, California, allegedly avoided more than $12.5 million in losses by entering into two Rule 10b5-1 trading plans while in possession of material, nonpublic information concerning the serious risk that Ontrak’s then-largest customer would terminate its contract. In May 2021, Peizer allegedly entered into his first 10b5-1 trading plan shortly after learning that the relationship between Ontrak and the customer was deteriorating and that the customer had expressed serious reservations about continuing its contract with Ontrak. The indictment alleges that Peizer later learned that the customer informed Ontrak of its intent to terminate the contract. Then, in August 2021, Peizer allegedly entered into his second 10b5-1 trading plan approximately one hour after Ontrak’s chief negotiator for the contract confirmed to Peizer that the contract likely would be terminated. In establishing his 10b5-1 plans, Peizer allegedly refused to engage in any “cooling-off” period – the time between when he entered into the plan and when he sold stock – despite warnings from two brokers. Instead, Peizer allegedly began selling shares of Ontrak on the next trading day after establishing each plan. On Aug. 19, 2021, just six days after Peizer adopted his August 10b5-1 plan, Ontrak announced that the customer had terminated its contract and Ontrak’s stock price declined by more than 44%. “Mr. Peizer is accused of using his insider knowledge as CEO of a publicly traded company to line his own pockets in violation of his duty to his company and its shareholders,” said U.S. Attorney Martin Estrada for the Central District of California. “Mr. Peizer allegedly exploited material nonpublic information and tried to shield himself with a rule designed to ensure a fair and level playing field for all investors. With this indictment, we again affirm that the law applies equally to all and that corporate executives who unlawfully denigrate the integrity of our financial markets will be held accountable.” “The FBI and our partners are committed to holding insiders accountable at all levels, including those who act in bad faith when establishing trading plans in order to evade regulations,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “Americans must have trust in the marketplace and that can only be achieved when offenders who violate their obligations are held responsible.” Peizer is charged with one count of engaging in a securities fraud scheme and two counts of securities fraud for insider trading. If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud scheme charge and 20 years in prison on each of the insider trading charges. The indictment represents the first time that the Department of Justice has brought criminal insider trading charges based exclusively on an executive’s use of 10b5-1 trading plans. The investigation is part of a data-driven initiative led by the Fraud Section to identify executive abuses of 10b5-1 trading plans. Rule 10b5-1 trading plans can offer an executive a defense to insider trading charges. However, the defense is unavailable if the executive is in possession of material, nonpublic information at the time he or she enters into the 10b5-1 trading plan. Additionally, a plan does not protect an executive if the trading plan was not entered into in good faith or was entered into as part of an effort or scheme to evade the prohibitions of Rule 10b5-1. The FBI is investigating the case. Trial Attorneys Matthew Reilly and Christina McGill of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . For additional information and case event updates, please visit www.justice.gov/criminal-vns/case/united-states-v-terren-s-peizer . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: District Man Sentenced to 40 Years for First-Degree Murder While Armed for Killing a 15-Year-Old in Southeast Washington

body_text: WASHINGTON – Malik Holston, 21, of Washington, D.C., was sentenced today to 40 years in prison for first-degree murder while armed for the fatal shooting of a 15-year-old boy, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department. Holston had been found guilty on November 2, 2022. In addition to the prison term, the Honorable Rainey R. Brandt ordered five years of supervised release. Holston was also sentenced to five years in prison and three years of supervised release for the unlawful possession of a firearm, and 24 months in prison and three years of supervised release for carrying a pistol without a license, with those sentences ordered to run concurrently with the murder sentence According to the government’s evidence, on Dec. 13, 2018, at approximately 3:40 p.m., Holston and a second assailant – both armed and wearing masks – pursued 15-year-old Gerald Watson through the parking lot area near buildings in the 2900 block of Knox Place SE. Mr. Watson ran inside a multi-unit apartment building, followed by Holston, while the second gunman waited outside. Inside the building, Holston cornered Mr. Watson at the top landing and shot him 16 times with a .40-caliber revolver. Holston and the second gunman then fled the scene. Mr. Watson was taken to a hospital, where he died from the injuries. The shooting took place shortly after Mr. Watson returned home from school and headed outside to play basketball. Within about five minutes of leaving home, the shooting occurred. Holston was arrested on Dec. 18, 2018. The second assailant was himself killed by gunfire on Sept. 10, 2019. In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the Capital Area Regional Fugitive Task Force and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who provided assistance in the U.S. Attorney’s Office, including Special Agents Durand Odom and Mark Crawford of the Criminal Investigations Unit; Paralegal Specialists Stephanie Gilbert and Kelly Blakeney; Victim/Witness Advocate Jennifer Allen; Witness Security Coordinators Marlon Hernandez-Quijano, Maenylie Watson, and Katina Adams-Washington; former Witness Security Coordinator La June Thames; Intelligence Analyst Zachary McMenamin; Supervisory Litigation Technology Specialist Leif Hickling and Litigation Technology Specialist Claudia Gutierrez; Chrisellen Kolb, Chief of the Appellate Division, and Assistant U.S. Attorneys Suzanne Curt, Daniel Lenerz, and Peter Roman. Finally, they commended the work of Assistant U.S. Attorneys Michael C. Liebman and Andrea Coronado, who investigated and prosecuted the case.