title: Canadian National Sentenced to 50 Months’ Imprisonment for Conspiracy to Commit Wire Fraud Against Elderly Victims

body_text: SPRINGFIELD, Ill. – A Canadian national, Sebastian Chelemen, 38, was sentenced on July 11, 2024, to 50 months’ imprisonment to be followed by two years of supervised release, for conspiracy to commit wire fraud. He was also ordered to pay $460,350 in restitution to his victims. At the sentencing hearing, the government established that, between April 2023 and June 2023, Chelemen participated in a fraud scheme with co-conspirators operating in Canada who called elderly individuals throughout the United States portraying themselves as young loved ones who had been arrested and needed money for bond or a lawyer. Once a victim agreed to provide the funds for their loved one’s release from jail, Chelemen, acting as a bail bondsman/courier, arrived at their address for the purpose of picking up the funds. He then provided the victims with a receipt that included a “case number,” the amount of money provided, and the false name he used during the interaction. Ultimately, Chelemen personally obtained over $380,000 from the victims in multiple states directly and co-conspirators received another $78,000 from victims who mailed funds as part of the scheme. Members of the conspiracy also attempted to obtain at least an additional $290,000 from victims. When Chelemen was arrested in Sangamon County, he was found with over $138,000 in cash which he acknowledged he had recently received from numerous victims throughout the Central District of Illinois. During the sentencing hearing, U.S. District Court Judge Sue E. Myerscough found Chelemen was responsible for over $750,000 in actual and attempted loss, that he had victimized vulnerable individuals as part of the scheme, and that the scheme was both sophisticated and most of it took place outside of the United States. “This case is an excellent example of what can be accomplished when we, as a law enforcement community, work towards a common goal.” said Assistant U.S. Attorney Tanner K. Jacobs. “Victims of this terrible scheme were spread out across the country, and federal, state, and local agencies banded together to identify them and ensure that the victims’ voices were heard.” “Elder fraud is a massive and growing problem that affects one of our most vulnerable age groups. It accounts for billions of dollars in losses and in many instances leaves victims financially and emotionally devastated.” said Acting Special Agent in Charge Jermaine Deans. “This sentence demonstrates the commitment of the FBI and our law enforcement partners to relentlessly pursue and hold accountable those who seek to harm the elderly.” Chelemen pleaded guilty to one count of conspiracy to commit wire fraud on February 6, 2024. He was ordered detained on June 26, 2023, following his arrest by the Sangamon County Sheriff’s Office on June 13, 2023. He has remained in the custody of the U.S. Marshals Service since that time. The statutory penalties for conspiracy to commit wire fraud are up to twenty years in prison, up to a $250,000 fine, and up to three years of supervised release. The Federal Bureau of Investigation, Springfield Field Office along with the Sangamon County Sheriff’s Office, and Springfield Police Department investigated the matter with assistance from various law enforcement agencies throughout the country, including Virginia, Ohio, New York, and Wisconsin. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution. If a senior, or friend or relative of a senior, believes someone is at risk of imminent danger or financial exploitation, they should call 9-1-1. Reports of financial exploitation and abuse should be reported to the non-emergency number at the Springfield Police Department (217-788-8311.) The Adult Protective Services Hotline number to report elder fraud is 866 800-1409. Elder fraud may also be reported to the Illinois Attorney General’s Office at 800-243-5377. Internet-based fraud should be reported to the FBI’s Internet Crime Complaint Center IC3, www.ic3.gov . Additional useful information about elder fraud and scams can be found at www.uspis.gov and www.ftc.gov .


title: Oahu Man Sentenced to 188 Months in Prison for Distributing Child Pornography

component: USAO - Hawaii

body_text: HONOLULU – Casey Young, 4o, of Kaneohe, Hawaii was sentenced on July 10, 2024, by Senior United States District Judge Helen Gillmor to 188 months in prison and a lifetime of supervised release as a registered sex offender for distributing child pornography. Young previously pleaded guilty in on December 14, 2023. According to information produced to the court, by at least January 2023, Young was an avid user of multiple end-to-end encrypted messaging applications that he had downloaded on his cellphone and other devices. Using an anonymous screen name, at the time of his arrest in September 2023, Young was part of over 75 groups that involved other anonymous individuals who shared images and videos of child pornography and messaged about child pornography and child sex abuse. Each group or room in which Young was a member catered to a particular type of child pornography, ranging all ages and genders. As a member of a room, that individual generally had access to all the child pornography that was shared in the room from other members. Generally, for entry into any child pornography room, an individual had to be vetted first by a moderator of the room and share with the moderator at least two images or videos of child pornography on theme with the room. Among other things, a moderator of a room had control over vetting, adding new members, and removing members from rooms for lurking, that is, not sharing enough child pornography over a period of time. Young moderated over a dozen rooms across two encrypted applications. Young also downloaded thousands of images and videos of child pornography onto his devices. In January and March 2023, an undercover FBI agent on one of the applications observed Young distribute child pornography videos in two different rooms. “This conduct is another confirmation of sexual predators utilizing social media to exploit children, as well as storing pornographic images on electronic media,” said U.S. Attorney Clare E. Connors. “The law provides substantial prison terms for sexual exploitation of children, and such a penalty was appropriately imposed in this case.” “This sentence should serve notice to others that the FBI does not tolerate those who prey on our keiki,” said FBI Special Agent in Charge Steven Merrill. “We take these types of cases seriously and will do whatever it takes to bring child predators to justice.” This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Rebecca Perlmutter handled the prosecution.


title: Shelbyville, Illinois, Man Sentenced to 210 Months in Federal Prison for Production, Receipt, and Possession of Child Pornography

component: Department of Justice

body_text: SPRINGFIELD, Ill. – A Shelbyville, Illinois, man, Brett J. Simpson, 30, was sentenced on July 10, 2024, to 210 months in the Bureau of Prisons, to be followed by seven years of supervised release. Simpson was also ordered to pay $15,500 in restitution to victims. He is now required to register as a sex offender under the Sex Offender Registration and Notification Act. Simpson previously pleaded guilty to persuading a minor victim to engage in sexually explicit conduct for the purpose of producing child pornography, receiving child pornography, and possessing child pornography between December 2021 and May 2022. At the sentencing hearing in front of U.S. District Judge Collen R. Lawless, the government established that Simpson portrayed himself as a minor on social media platforms to entice children to produce and send him elicit images and videos. Simpson persuaded one child to produce sexual images in exchange for a gift card and another child sent Simpson, at his request, a video containing nude images of that child. The evidence also showed that Simpson possessed thousands of other images of child pornography, including 250 images depicting children under 12 years of age. “This sentence once again affirms the commitment of the U. S. Attorney’s Office for the Central District of Illinois to the protection of children and the vigorous prosecution of those who prey upon children,” said Assistant U.S. Attorney Sierra Senor-Moore. “This substantial sentence effectively ends Simpson’s ability to sexually exploit children and underscores the FBI’s commitment to keep our children safe by going after those who seek to take advantage of a child’s innocence,” said FBI Acting Special Agent in Charge Jermaine Deans. “The Shelbyville Police Department would like to thank the Springfield Office of the FBI for assisting our department with the arrest of Brett Simpson back in May of 2022,” said Shelbyville Police Chief Chad Brachbill. “In an effort to keep our community safe from predators, the FBI has been paramount in assisting us from keeping dangerous people from exploiting children in our community over the internet. We look forward to partnering with them in the future to continue keeping our youth safe from criminal activity of any kind, especially internet sex crimes.” Simpson was indicted in June 2022 and has remained in the custody of the U.S. Marshals since his arrest in May 2022. The statutory penalties for production of child pornography are no less than 15 years and up to a maximum of 30 years’ imprisonment; for receipt of child pornography no less than five years and up to 20 years’ imprisonment; and for possession of child pornography a maximum of 20 years’ imprisonment. The maximum possible fine was $250,000 per count. The Federal Bureau of Investigation, Springfield Field Office, with assistance from the Shelbyville Police Department and Shelby County Sheriff’s Office, investigated the case. Assistant U.S. Attorney Senor-Moore represented the government in the prosecution. The case against Simpson 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: Orleans Man Arrested for Child Pornography Offenses

component: USAO - Massachusetts

body_text: BOSTON – An Orleans man has been arrested for child pornography offenses. Anthony Argo, 33, was charged with possession of child sexual abuse material (CSAM). Argo made an initial appearance in federal court in Boston yesterday. According to the charging documents, Argo was identified as the user of a chat application who was expressing sexual interest in minors and sharing CSAM. It is further alleged that during a search of his residence, Argo was found in possession of an SD card containing more than 100 video files depicting child pornography. The files allegedly depicted children as young as infants. Argo was previously convicted in Barnstable District Court for indecent assault and battery on a person 14 or over, and in Orleans District Court for kidnapping, enticement of a child under 16, and distributing obscene matter to a minor. Due to Argo’s prior convictions, the charge of possession of child pornography provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Lauren Maynard of the Major Crimes Unit is prosecuting the case. 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. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Court Enjoins Louisiana Company and its Owners from Distributing Adulterated Food

component: Civil Division

body_text: On July 2, a federal court enjoined a Louisiana company from manufacturing and distributing adulterated food products in violation of the Federal Food, Drug and Cosmetic Act (FDCA). In a civil complaint filed on June 10, the United States alleged that Freshy Foods, LLC, Team Fresh & Go, LLC and its owners, Floyd D. James and Ida M. James, violated the FDCA at their food processing facility in Elmwood, Louisiana by manufacturing and distributing adulterated food products. The defendants manufactured and distributed ready-to-eat food products, including sandwiches and fruit cups. The complaint alleged that environmental tests in 2023 detected Listeria monocytogenes ( L. mono ), the pathogen that can cause listeriosis, in the defendants’ facility. The complaint also alleged that a 2023 U.S. Food and Drug Administration (FDA) inspection identified insanitary conditions at the facility. According to the complaint, the defendants voluntarily withdrew their registration to process FDA-regulated food in August 2023. “Food manufacturers must ensure the safety of their food products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department works closely with the FDA to pursue appropriate legal actions against food manufacturers who fail to adhere to laws designed to protect public health.” “The FDA will continue to stress that it’s the responsibility of food manufacturers to ensure they are producing food under safe and sanitary conditions,” said Deputy Commissioner Jim Jones for Human Foods at the FDA. “When a company consistently fails to demonstrate that they are capable of upholding their legal responsibilities, the FDA will seek to hold them accountable.” The defendants filed an answer denying the government’s allegations, but also agreed to settle the suit by entering into a consent decree. The order entered by the court permanently enjoins the defendants from violating the FDCA. The consent decree also requires, subject to limited exceptions, that the defendants notify FDA and comply with specific remedial measures prior to resuming the manufacture of any FDA-regulated food products. Trial Attorneys Colin W. Trundle and Kathryn A. Schmidt of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Sandra Lee Sears for the Eastern District of Louisiana handled the case, with assistance from Assistant Chief Counsel Sarah Rosenberg of FDA’s Office of the Chief Counsel. Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch . The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.


title: Burke County man sentenced to federal prison for purchasing and distributing child pornography

component: USAO - Georgia, Southern

body_text: AUGUSTA, GA: A Burke County man has been sentenced to more than 10 years in federal prison after pleading guilty to sharing digital videos of child sexual abuse. Kadarion Davonte Ellison , 27, of Waynesboro, Ga., who worked as a patient care technician at an Augusta hospital, was sentenced to 126 months in prison after pleading guilty to Distribution of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge J. Randal Hall also ordered Ellison to register as a sex offender and to serve 20 years of supervised release upon completion of his prison sentence. There is no parole in the federal system. “Child victims are subjected to endless trauma each time their images are shared online,” said U.S. Attorney Steinberg. “We applaud the vigilance of our law enforcement partners in identifying these predators for the protection of our most vulnerable citizens.” As described in court documents and testimony, agents from Homeland Security Investigations (HSI) detected child sexual abuse material being transferred via an internet application. With assistance from the Waynesboro Police Department, HSI investigators determined Ellison was purchasing and distributing child pornography online. During a search of Ellison’s residence, investigators seized multiple electronic devices found to contain thousands of videos and images of child sexual abuse material. Judge Hall ordered Ellison to pay $60,000 in restitution to victims identified during the investigation with the assistance of the National Center for Missing and Exploited Children. “Finding and stopping those involved in the distribution of these disturbing images of children is one of our highest priorities,” said Anthony J. Patrone acting special agent in charge of HSI Atlanta that covers Georgia and Alabama. “I am appreciative of the amazing support of our law enforcement partners and the great work done on this case.” The case was investigated by Homeland Security Investigations and the Waynesboro Police Department and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Jason W. Blanchard. Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/ .


title: Arizona Man Charged with Transportation for the Purpose of Prostitution

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – An Arizona man was charged by criminal complaint with transportation for the purpose of prostitution after allegedly transporting a female across state lines for the purposes of engaging her in prostitution. Hakeeme Kaleb Williams , 24, appeared before a federal judge today and will remain on conditions of release pending trial, which has not been scheduled. According to the criminal complaint, on June 17, 2024, Jane Doe 1 called 911 reporting she was being trafficked. Officers located her outside a car at a gas station in Laguna, NM, along with a man identified as Williams and another woman identified as Jane Doe 2. Jane Doe 1 stated she had been working as a sex worker and Williams , who she met online, was her “pimp.” She said she provided all of her earnings to Williams, that he transported her across state lines for prostitution, and frequently assaulted her. Most recently, Williams was transporting her through New Mexico to Arizona, with stops made in New Mexico for the purposes of engaging in prostitution. Online ads depicting the two women were found which appeared to promote sex work in Albuquerque. If convicted of the current charges, Williams faces up to 10 years in prison. U.S. Attorney Alexander M.M. Uballez, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The FBI Albuquerque Field Office investigated this case with assistance from the Bernalillo County Sheriff’s Office and Laguna Police Department. This case is being prosecuted by Assistant United States Attorney Timothy Trembley. View the Criminal Complaint A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #


title: Columbia County man sentenced to federal prison for producing child pornography

body_text: AUGUSTA, GA: A Columbia County man has been sentenced to nearly 30 years in federal prison after pleading guilty to producing images of child sexual exploitation. Hector Salazar Torres , 30, of Grovetown, Ga., was sentenced to 325 months in prison after pleading guilty to Production of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge J. Randal Hall also ordered Torres to pay $9,600 in restitution and assessments, to register as a sex offender, and to serve 20 years of supervised release upon completion of his prison term. There is no parole in the federal system. “We applaud the diligence of our law enforcement partners in identifying Hector Torres and holding him accountable,” said U.S. Attorney Steinberg. “The most vulnerable citizens in our community are safer when predators are behind bars.” As described in court documents and testimony, Grovetown police officers were investigating the reported sexual assault of a child when they seized Torres’ cell phone. The FBI reviewed the contents of the phone and identified dozens of images and videos of child sexual abuse, including a video of a toddler. By matching an image in the video to a scar on Torres’ hand, investigators determined Torres produced the video with his phone. Torres also faces state prosecution on child molestation charges involving victims unrelated to the federal case. “The sexual abuse and exploitation of children is an absolutely horrific offense,” said Matthew Ploskunak, Senior Supervisory Special Agent in Charge of FBI Atlanta’s Augusta office. “Torres’s sentence will give him plenty of time to think about his unacceptable behavior, but more importantly while in prison, he won’t be able to harm any more children.” The case was investigated by the FBI and the Grovetown Police Department, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Jason W. Blanchard. Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/ .


title: Senior Leaders Of Lev Tahor Sect Sentenced To 14 And 12 Years In Prison For Kidnapping And Sex Trafficking Crimes

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN were sentenced yesterday to 14 years, 14 years, and 12 years in prison, respectively, for child sexual exploitation and kidnapping offenses. The defendants, leaders of an extremist religious sect called Lev Tahor, masterminded a scheme to kidnap a 14-year-old girl (“Minor-1”) and a 12-year-old boy (“Minor-2”) from their mother in Woodridge, New York. The defendants then smuggled the children across the U.S. border to Mexico, where they reunited Minor-1 with her adult “husband” to allow him to continue his illegal sexual relationship with Minor-1. The defendants were convicted in March 2024 following a five-week jury trial before U.S. District Judge Nelson S. Román. U.S. Attorney Damian Williams said: “The sentencing of the Weingarten brothers holds them accountable for kidnapping children from their mother in the middle of the night, including for the purpose of coercing a child into a sexual relationship with an adult. This Office will do everything in its power to protect children and use every available tool to investigate and prosecute those who sexually exploit them.” According to the allegations contained in the Superseding Indictment, other court filings, and the evidence presented at trial: The WEINGARTEN brothers—YAKOV, SHMIEL, and YOIL—are U.S. citizens and senior leaders of Lev Tahor, an extremist religious sect that has been located in several different jurisdictions, including New York, Israel, Canada, Mexico, and Guatemala. Lev Tahor leaders, including the WEINGARTENs, embraced several extreme practices, including forced family separations, child marriages, and underage sex. In or about 2017, Lev Tahor leaders arranged for a 12-year-old girl, Minor-1, to be “married” to a then-18-year-old man. Though they were never legally married, they were religiously “married” the following year, when Minor-1 was 13 and her “husband” was 19. Lev Tahor leadership, including the WEINGARTENs, required young brides such as Minor-1 to have sex with their husbands, to tell people outside Lev Tahor that they were not married, and to lie about their ages. For example, Lev Tahor leaders instructed child brides to deliver babies inside their homes instead of at a hospital to conceal the mothers’ young ages from outsiders. In or about October 2018, the mother of Minor-1 determined that it was no longer safe for her children to remain in the Lev Tahor community, which was then living in Guatemala. The mother escaped from the group’s compound, arrived in the U.S. in early November 2018, and was eventually joined by all six of her children, including Minor-1. Also in November 2018, a Brooklyn family court granted her sole custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children. After the mother fled and settled in New York with her children, the WEINGARTENs and their co-conspirators devised a plan to kidnap Minor-1, then 14 years old, to return her to Guatemala and to her then-20-year-old “husband.” In December 2018, they kidnapped Minor-1 and her brother in the middle of the night from a home in upstate New York and transported them through various states and, eventually, to Mexico. In order to carry out the kidnapping, the defendants used disguises, aliases, drop phones, fake travel documents, and an encrypted application. At the time of the kidnapping, Lev Tahor leaders were seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran. Following a three-week search involving hundreds of local, federal, and international law enforcement entities, Minor-1 and Minor-2 were recovered in Mexico and returned to New York. In or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap the children but were unsuccessful. * * * In addition to the prison terms, YAKOV WEINGARTEN, 34, SHMIEL WEINGARTEN, 28, and YOIL WEINGARTEN, 36, each of Guatemala, were sentenced to five years of supervised release. Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the New York State Police, the Sullivan County District Attorney’s Office, U.S. Customs and Border Protection, the Rockland County Sheriff’s Department, the Village of Spring Valley Police Department, Special Agents with the U.S. Attorney’s Office for the Southern District of New York, the Department of State, the Transportation Security Administration, and our law enforcement partners in Mexico, Guatemala, Canada, and Israel. This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Sam Adelsberg, Jamie Bagliebter, and Jim Ligtenberg, and paralegal specialist Shannon Becker, are in charge of the prosecution.


title: Fifteen Defendants Indicted on Drug Trafficking and Firearms Charges

component: USAO - Tennessee, Western

body_text: MEMPHIS, TN - A federal grand jury returned an indictment yesterday charging 15 Memphis, Tennessee, residents for their involvement in an organized drug trafficking scheme. According to court documents, between November 2023 and June 2024, the defendants allegedly worked together, and with others, to distribute fentanyl, methamphetamine, and marijuana throughout the Memphis area. During the investigation, agents recovered two stolen vehicles and seized 29 firearms, five machinegun conversion devices (known as “switches”), over $4,000 in cash, approximately 938 grams of methamphetamine, approximately 541 grams of fentanyl, approximately 200 grams of psilocybin mushrooms, and 26.43 pounds of marijuana. The indictment charges the following 15 defendants: Defendant Age Charges Brian Lackland 34 Conspiracy to distribute fentanyl, over 500 grams of methamphetamine, and marijuana; possession of firearms during and in relation to drug trafficking crimes; and being a felon in possession of firearms Paul Nelson 31 Conspiracy to distribute fentanyl and over 500 grams of methamphetamine; and being a felon in possession of firearms Ebony Cobb 41 Conspiracy to distribute fentanyl and over 500 grams of methamphetamine Jerrod Cox 31 Conspiracy to distribute fentanyl Darius Moore 38 Conspiracy to distribute fentanyl Edgar Smith 38 Conspiracy to distribute fentanyl Mervin Anderson 38 Conspiracy to distribute fentanyl Courtney Davis 28 Conspiracy to distribute fentanyl Timothy Achols 36 Conspiracy to distribute fentanyl Jehu Cruz 23 Conspiracy to distribute fentanyl; and possession of firearms during and in relation to drug trafficking crimes Mohamed Samba 24 Conspiracy to distribute marijuana; and possession of firearms during and in relation to drug trafficking crimes Prentiss Broadway 33 Possession with intent to distribute fentanyl Braxton Beck 32 Federal firearms offenses and being a felon in possession of firearms Darion Allen 28 Federal firearms offenses and being a felon in possession of firearms Delifarroe Goins 29 Federal firearms offenses and being a felon in possession of firearms If convicted, the defendants charged with conspiracy to distribute marijuana face a maximum penalty of five years in prison and defendants charged with distributing methamphetamine face a maximum penalty of 10 years in prison. The defendants charged with conspiracy to distribute fentanyl face a mandatory minimum of five years or 10 years in prison, depending on the amount distributed, and a maximum penalty of life in prison. The defendants charged with possession of firearms during and in relation to drug trafficking crimes face a mandatory minimum of five years in prison and a maximum penalty of life in prison. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, and U.S. Attorney Kevin G. Ritz for the Western District of Tennessee made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); FBI; U.S. Postal Inspection Service (USPIS); Multi-Agency Gang Unit; Memphis Police Department; Bartlett Police Department; and Shelby County Sheriff’s Office investigated the case. Trial Attorneys Amanda Kotula and Aaron Henricks of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Neal Oldham for the Western District of Tennessee are prosecuting the case. This case is brought as part of the Criminal Division’s Memphis Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Memphis. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Updated July 10, 2024 Topic VIOLENT CRIME Components Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Criminal Division Criminal - Violent Crime and Racketeering Section Federal Bureau of Investigation (FBI) USAO - Tennessee, Western Press Release Number: 24-864


title: Manhattan Man Charged With Enticing And Engaging In Unlawful Sexual Activity With Teenage Girls And Using Them To Sell Drugs For Him

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of an Indictment charging SHYMELL EPHRON, a/k/a “Shy,” with two counts of coercion and enticement of minors to engage in unlawful sexual activity and five drug-trafficking counts, including two counts of using a minor to distribute narcotics and two counts of distributing narcotics to a minor. EPHRON was arrested today and will be presented in Manhattan federal court before U.S. Magistrate Judge Sarah Netburn. The case is assigned to U.S. District Judge Margaret M. Garnett. U.S. Attorney Damian Williams said: “As alleged, Shymell Ephron raped and sexually abused two teenagers he found in Times Square, plied them with drugs and alcohol, and directed them to sell his drugs on the streets of New York City. This Office is committed to keeping New York City safe from sexual predators, and thanks to the hard work of our law enforcement partners and the career prosecutors of this Office, Ephron has now been arrested and charged for his egregious conduct.” FBI Acting Assistant Director in Charge Christie M. Curtis said: “Shymell Ephron allegedly targeted two minor female victims for repeated sexual abuse, using illicit substances to encourage cooperation. He directed them to participate in his unlawful drug trafficking operation by exploiting their innocence for nefarious purposes, as alleged. Along with our law enforcement partners, the FBI remains committed to apprehending sexual predators and eliminating sources of illegal narcotics in our city.” NYPD Commissioner Edward A. Caban said: “The charges leveled against this alleged predator are the result of NYPD investigators and our local, state, and federal law enforcement partners working together to protect everyone in our community, especially young victims. I commend the members of the FBI’s Westchester Safe Streets Task Force and the prosecutors at the office of the U.S. Attorney for the Southern District of New York for their continued focus on holding accountable individuals who allegedly target children.” As alleged in public court filings, statements at public court proceedings, and the Indictment: [1] EPHRON and his co-conspirators have distributed narcotics, including ecstasy and crack cocaine, since at least in or about May 2024 in Times Square and other locations in New York City. EPHRON has also offered and provided narcotics, including ecstasy and cocaine, to others in an effort to have sex with them. On or about May 17, 2024, EPHRON approached two teenage girls in Times Square while he and a co-conspirator were selling drugs. EPHRON convinced the two girls to follow him to his residence in Harlem, where they stayed with EPHRON for several days. EPHRON engaged in multiple acts of forcible rape, forcible touching, sexual abuse, and sex with a minor while the girls were staying in EPHRON’s apartment. EPHRON repeatedly provided the girls with ecstasy, marijuana, and alcohol, and EPHRON also directed the girls to sell his drugs on the streets of New York City. EPHRON provided a cellphone to the girls to monitor their whereabouts, direct them to sell narcotics, and to persuade, induce, and entice them to return to his apartment each night so he could engage in unlawful sexual conduct with them. Law enforcement agents with the FBI and NYPD eventually rescued the two girls. There may be more victims of this alleged conduct. If you have information to report, contact the FBI through its toll-free Tip Line at 1-800-CALL-FBI (225-5324) or https://tips.fbi.gov. * * * EPHRON, 35, of New York, New York, is charged with two counts of coercion and enticement of a minor, each of which carries a mandatory minimum sentence of 10 years in prison and a maximum potential sentence of life in prison; one count of narcotics conspiracy, which carries a maximum potential sentence of 20 years in prison; two counts of distributing narcotics using a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 45 years in prison; and two counts of distributing narcotics to a minor, each of which carries a mandatory minimum sentence of one year in prison and a maximum potential sentence of 40 years in prison. The mandatory minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge. Mr. Williams praised the work of the FBI’s Westchester Safe Streets Task Force and the NYPD. Mr. Williams also thanked the New York State Police and the Yorktown Police Department for their assistance in the investigation. This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Ryan W. Allison and Michael R. Herman are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Honduran National Pleads Guilty to Illegal Re-Entry of Removed Alien

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – U.S. Attorney Duane A. Evans announced that MARLON EFRAIN CHAVEZ AGUIRRE (“ CHAVEZ AGUIRRE”) , age 50, a citizen of Honduras, pleaded guilty on July 9, 2024, to illegal reentry of a deported alien, in violation of Title 8, United States Code, Sections 1326(a). According to the court documents, CHAVEZ AGUIRRE admitted to reentering the United States illegally, after being previously deported on September 24, 2012. GOMEZ VILLEDA faces a sentence of up to 2 years imprisonment, up to 1 year of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee. U.S. District Court Judge Greg G. Guidry has set the sentencing for October 15, 2024. U.S. Attorney Evans praised the work of United States Customs and Border Patrol in investigating this matter. Assistant United States Attorney Paul J. Hubbell of the General Crimes Unit is in charge of the prosecution.


title: Rite Aid Corporation and Elixir Insurance Company Agree to Pay $101M to Resolve Allegations of Falsely Reporting Rebates

body_text: The Justice Department announced that Rite Aid Corporation and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC and RX Solutions LLC, have agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid’s bankruptcy case pending in the District of New Jersey. The settlement is based on the companies’ ability to pay and was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. In addition to operating one of the country’s largest retail pharmacy chains, Rite Aid offered Medicare drug plans and pharmacy benefits manager (PBM) services through Elixir Insurance, RX Options and RX Solutions. “Participants in Medicare’s drug program must accurately report price concessions, including drug manufacturer rebates, to ensure that the government receives the benefit of those concessions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Justice Department’s commitment to hold accountable entities that pursue their own financial interests at the expense of taxpayer programs.” “Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Each of those dollars could have been used to benefit Americans with genuine health care needs. Our office will not tolerate deceptive health-insurance practices, and we will vigorously pursue those who violate the FCA.” Under Medicare Part D, private entities known as Part D Plan Sponsors offer and administer insurance plans that provide prescription drug coverage to enrolled Medicare beneficiaries. Part D Sponsors must submit annual reports to the Centers for Medicare and Medicaid Services (CMS) with information about rebates and other remuneration the Plans received from drug manufacturers in connection with the Part D drugs provided to beneficiaries, which ensures that the government receives the benefit of any price concessions provided by drug manufacturers to purchasers of the drugs covered under the Part D plan. CMS relies on the reports in the annual reconciliation process that determines payments due to the Plans or CMS at the end of the year. The settlement resolves allegations that, between 2014 and 2020, the defendants improperly reported to CMS portions of rebates received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. The United States further alleged that Elixir Insurance knew the retained rebates did not meet the regulatory definition of bona fide services fees. “Truthful and accurate documentation in the delivery of health care goods or services is crucial to the integrity of federal health care programs,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Improper submission of manufacturer drug rebates and fees by Part D Plan Sponsors for pharmaceutical products in order to make more money will not be tolerated. Collaborating with our law enforcement partners, HHS-OIG is committed to preventing and investigating health care fraud in Medicare and other taxpayer-funded health care programs.” The civil settlement includes the resolution of claims brought in 2021 under the qui tam , or whistleblower, provisions of the False Claims Act by Glenn Rzeszutko, who previously worked for RX Options. The FCA authorizes a private party to sue on behalf of the United States and share in any recovery. The qui tam case is captioned United States ex rel. Rzeszutko v. Rite Aid Corporation et al. , No. 5:21-CV-574 (N.D. Ohio). The relator’s share of these proceeds has not yet been determined. Trial attorneys Christopher Wilson and Dan Schiffer of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jackson Froliklong for the Northern District of Ohio handled this matter. HHS-OIG and the FBI Cleveland Field Office provided substantial assistance in the investigation. Trial Attorneys Mary Schmergel, Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy. The settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). The claims asserted against defendants are allegations only. There has been no determination of liability. Settlement


title: La Crosse Man Sentenced to 6 Years for Trafficking Fentanyl

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Timothy M. Cannon, 36, La Crosse, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 6 years in federal prison for distributing 40 grams or more of fentanyl. Cannon pled guilty to this charge on March 21, 2024. Between April and June 2023, the La Crosse Police Department used a confidential informant to conduct four controlled buys of fentanyl from Cannon. Cannon sold the informant approximately 40-50 grams of fentanyl during each buy. Law enforcement also searched the apartment where Cannon was staying and found 43.2 grams of fentanyl in his backpack. At sentencing, Judge Conley emphasized the dangers of fentanyl in the community and Cannon’s participation in trafficking the drug. He remarked that Cannon’s actions were for greed, noting that he was harming other people for money. The charges against Cannon were the result of an investigation conducted by the City of La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Kathryn E. Ginsberg and Louis Glinzak prosecuted this case.


title: D.C. Man Sentenced to Prison for Defrauding Corporations of Over $900,000

body_text: WASHINGTON – Raekwon Malik Harrod, 25, of Washington, D.C., was sentenced today to a prison term for fraudulently using the UPS accounts of two American companies to create shipping labels, which he and another conspirator sold online. The announcement was made by U.S. Attorney Matthew M. Graves and FBI Special Agent in Charge David J. Scott of the Washington Field Office Criminal and Cyber Division. Harrod pleaded guilty on January 5 to conspiracy to commit mail fraud. U.S. District Court Judge Ana C. Reyes ordered that Harrod serve six months and one day in prison and an additional twelve months on home detention. Harrod must serve a total of three years of supervised release and pay $920,000 in restitution. In his plea agreement, Harrod admitted that no later than 2020, Carl Granada Wilson, Jr., a California co-conspirator, gained access to one company’s UPS account and provided Harrod with the account’s log-in credentials. Harrod provided the credentials to a Maryland co-conspirator. Initially, Harrod and the Maryland co-conspirator, who both re-sold shoes online, used the account to create UPS shipping labels to mail the shoes that they sold, which reduced their shipping costs to zero. Wilson intended that they use the account in this manner. However, in late 2020, Harrod and the Maryland co-conspirator decided to use the account to sell UPS shipping labels to third parties. They advertised the service online and each created thousands of UPS labels using the compromised account. Harrod acknowledged that the fraudulent use of the company’s account caused the company to lose more than $900,000. In late July 2021, Harrod and the Maryland co-conspirator lost access to the account, prompting them to tell Wilson that they had been selling labels using the account. Wilson requested that they pay him $120,000, which Harrod and the Maryland co-conspirator understood would be used to compensate the person who gave Wilson access to the account. However, in reality, Wilson planned to keep all of the money for himself. Thus, in August 2021, Harrod and the Maryland co-conspirator withdrew nearly $70,000 in cash and flew with the money to Los Angeles, where they gave the proceeds to Wilson. When they were in California, they withdrew another $50,000 in cash and provided it to Wilson who pocketed all of the money. Eventually, Wilson secured access to a second American company’s UPS account, which he provided to Harrod and the Maryland co-conspirator. The two men then resumed selling UPS shipping labels online, this time with direct involvement and knowledge of Wilson. On June 13, 2024, Wilson pled guilty to conspiracy to commit mail fraud. His sentencing is scheduled for October 31, 2024, before Judge Reyes. This case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorney Kondi Kleinman with the assistance of paralegal specialist Sonalika Chaturvedi. Former paralegal specialist Michon Tart and former Financial Analyst Bryan Snitselaar also assisted with the investigation. 23cr0445


title: The Grand Health Care System and 12 Affiliated Skilled Nursing Facilities to Pay $21.3M for Allegedly Providing and Billing for Fraudulent Rehabilitation Therapy Services

body_text: Strauss Ventures LLC, doing business as The Grand Health Care System, and 12 affiliated skilled nursing facilities (collectively, the Grand) have agreed to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for therapy services that were unreasonable, unnecessary, unskilled or that simply did not occur as billed. “We expect nursing facilities to provide only reasonable and appropriate amounts of skilled rehabilitation therapy service to their residents and to bill government healthcare programs only for the services actually provided,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department's Civil Division. “The department is committed to protecting both vulnerable nursing home patients and taxpayers against fraudulent conduct by unscrupulous actors.” The settlement resolves allegations that, from as early as Jan. 1, 2014, to Sept. 30, 2019, the Grand knowingly submitted false claims for rehabilitation therapy for residents at 12 facilities Strauss Ventures owned and operated. During this period, Medicare Part A (Medicare’s hospital insurance, which also pays for care in a skilled nursing facility in some circumstances) and TRICARE (the federal health care program for the Department of Defense) paid for such services at rates that varied based on the number of minutes of skilled rehabilitation therapy provided. The Grand allegedly submitted bills where the reimbursement claimed was based on providing more therapy than was reasonable and necessary, or in some cases where the therapists did not provide the amount of therapy reported. As part of the settlement, the Grand admitted that certain now-former Grand management level employees implemented quotas that each of the 12 facilities was expected to reach, including quotas relating to beneficiaries’ lengths of stay and to the percentage of beneficiaries billed at the highest reimbursement level. To meet these quotas, facilities often scheduled patients to receive therapy without consideration of what was reasonable and necessary based on the individual patients’ clinical condition. In addition, the Grand directed that no more than three patients be discharged from any facility per week and instructed that no Medicare Part A patients should be discharged from rehabilitation therapy unless it had been discussed with corporate officials. The Grand admitted that this resulted in some Medicare beneficiaries “staying on therapy longer than was reasonable and medically necessary.” The Grand acknowledged that there were various instances where supervisory officials, who did not personally evaluate or treat patients, set or adjusted the number of minutes of therapy that a Medicare patient would receive. The Grand also acknowledged that there were instances where supervisory personnel falsified the number of therapy minutes in the Grand’s electronic recordkeeping system or instructed subordinates to do so, well after the therapy was allegedly rendered. “Today’s settlement protects patients and taxpayers by ensuring that medical treatment is dictated by patient need and not by financial motive,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “Skilled nursing facilities provide important services to a vulnerable population, and we will continue to hold them accountable when they provide patients with unnecessary services and falsify records.” The settlement also resolves federal allegations that the Grand submitted false claims to Medicaid for services rendered at its Pawling, New York, nursing home between Jan. 1, 2016, and June 30, 2021. These claims were allegedly false because the reimbursement rate was inflated by data inaccurately reflecting the degree of care, including rehabilitation therapy services, needed by Medicaid patients there. The Grand has also entered into a five-year Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare. “Violations of the False Claims Act are absolutely unacceptable and will not be tolerated by the FBI and its partners,” said Executive Assistant Director Michael Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “We will continue our work of protecting the American taxpayer by relentlessly pursuing businesses that do not comply with the rule of law. If you bill federal health care programs in an unnecessary manner, there will be consequences.” “As a part of this settlement, the defendants acknowledged that they obtained funds from the Medicare program to which they were not entitled,” said Special Agent in Charge Naomi Gruchacz of HHS-OIG. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.” “Protecting the integrity of the healthcare system for our military members and their families is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “DCIS will continue to work with its law enforcement partners and the Department of Justice to hold Department of Defense contractors accountable for their fraudulent activity and ensure America's service members are not subject to unnecessary risk.” The settlement resolves a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act by Stacey Rosenberger and Kelley Retig, former providers of rehabilitation therapy at the Grand. The Act allows private persons to file civil actions on behalf of the government and share in any recovery. Under the settlement, the whistleblowers will receive approximately $4,047,000 of the settlement proceeds. The case is captioned United States ex rel. Rosenberger and Retig v. Strauss Ventures, LLC, et al. , No. 1:19-cv-1311 (N.D.N.Y.). The U.S. Attorney’s Office for the Northern District of New York; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; HHS-OIG’s New York Region; the FBI Albany Field Office; DCIS, Syracuse Resident Agency and the New York State Attorney General’s Office investigated the matter. Senior Trial Counsel Christelle Klovers of the Civil Division's Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Adam J. Katz for the Northern District of New York prosecuted the case. Settlement


title: North Tonawanda businessman sentenced for tax evasion

component: USAO - New York, Western

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that George Ward, 57, of North Tonawanda, NY, who was convicted of tax evasion, was sentenced to serve four years’ probation, of which the first six months will be home incarceration and the second six months will be home detention, by U.S. District Judge John L. Sinatra, Jr. Ward was also ordered to pay restitution to the IRS totaling $2,635,542.66 and to the NYS Department of Taxation and Finance totaling $646,770. Assistant U.S. Attorney Douglas A. C. Penrose, who handled the case, stated that between 2015 and 2020, Ward owned and operated a fire protection and inspection business in Amherst, NY. During this time period, Ward failed to file personal income tax returns, which included substantial business revenues received by his business. Ward also failed to pay income, social security, and Medicare taxes withheld from the pay of his employees. This resulted in a tax loss to the IRS of $953,793. Ward also failed to file his taxes with the New York Department of Taxation and Finance, resulting in a tax loss of $165,645. In addition to failing to file tax returns, Ward also made false statements to an IRS revenue officer regarding the filing of his taxes and the status of his business, used a check cashing business for over $2,000,000 in gross receipt checks from customers rather than depositing them into his business’ bank account, and deposited cash derived from his business’ activities into a bank account held in his wife’s name. The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso. # # # #


title: Former Corrections Officer Convicted of Making False Statements to a Federal Agent

component: USAO - Louisiana, Western

body_text: LAKE CHARLES, La. – United States Attorney Brandon B. Brown announced that Samantha Harp , 37, of Rapides Parish, a former Corrections Officer at the Federal Correctional Institution (FCI) in Oakdale, Louisiana , has been convicted by a federal jury in Lake Charles. The jury reached the guilty verdict against Harp after a two-day trial convicting her of one count of making false statements to a federal agent. United States District Judge James D. Cain, Jr. presided over the trial. Testimony at trial revealed that while employed as a Corrections Officer at the FCI in Oakdale, evidence was uncovered that Harp had supplied certain inmates with contraband in the prison in March of 2020. A review of Harp’s cell phone records showed that calls and text messages were exchanged with an inmate’s family member from outside the prison. In addition, incoming messages from Cash App, a mobile application for sending and receiving money, were found on Harp’s phone. Cash App records showed that the inmate’s family member paid Harp for the introduction of contraband approximately two days before the introduction. When agents with the Department of Justice, Office of Inspector General, approached Harp about the incidents, Harp denied bringing any contraband into the prison or ever calling and texting, or receiving a call or text message, from an inmate’s family member or friend using her cell phone. She continued to deny having a Cash App application account or ever receiving funds through that account and in fact denied knowing what it was. When in truth and in fact, Harp did exchange text messages and phone calls with an inmate’s family member, and received, via Cash App, funds from an inmate’s family member for the introduction of contraband. Harp faces a sentence of up to 5 years in prison, 3 years of supervised release, and a fine of up to $250,000. Sentencing has been set for November 21, 2024. The case was investigated by the Department of Justice, Office of Inspector General, and prosecuted by Assistant United States Attorneys John W. Nickel and Danny Siefker. # # #


title: Former CEO of Publicly Traded Company Convicted of Securities Fraud for Misleading Investors About COVID-19 Rapid Test

component: USAO - New Jersey

body_text: NEWARK, N.J. – A federal jury today convicted the former chief executive officer of SCWorx Corp. (SCWorx), a publicly traded health care company, on two counts of securities fraud for his participation in a scheme to mislead investors about SCWorx’s procurement of COVID-19 rapid test kits in the early days of the COVID-19 pandemic. According to court documents and evidence presented at trial: Marc Schessel, 64, of New Paltz, New York, caused SCWorx to make four false and misleading public statements, claiming that the company had a binding contract to acquire millions of needed COVID test kits during the very beginning of the pandemic from an Australian supplier. In reality, Schessel knew that the Australian supplier did not have FDA approval for the COVID test kits and that his company did not have nearly enough money to pay for them. Nevertheless, Schessel made four false and misleading statements during a five-day period: an April 13, 2020, press release, an April 15, 2020, investor conference call, an April 16, 2020, 8-K filing with the U.S. Securities and Exchange Commission, and an April 17, 2020, press release. Schessel made these false statements even though investors had started to raise questions about the accuracy of the statements and the legitimacy of SCWorx’s supposed contract to acquire the COVID test kits. Ultimately, Schessel and SCWorx did not obtain a single COVID test kit as part of the supposed transaction he had announced during the week. In the wake of these public announcements, SCWorx’s share price surged, rising by over 400 percent, from approximately $2.25 to an intraday high of $14.88. After SCWorx announced that it was terminating these COVID-19 rapid test kit agreements without having acquired any tests, SCWorx’s share price quickly dropped below its pre-April 13, 2020, announcement price. “This defendant took advantage of the global COVID pandemic by illegally pumping up the value of SCWorx’s stock by over 400 percent with multiple fraudulent public statements that he had binding contracts to obtain and resell COVID-19 test kits, when in reality the test kits did not have FDA authorization. When the truth came out, the value of the SCWorx stock crashed, causing investors to suffer substantial losses. Duping investors out of millions of dollars in the middle of a serious health emergency to salvage a failing business is especially egregious. Working with our partners, we will continue to investigate and bring to justice anyone who tried to profit from this crisis.” U.S. Attorney Philip R. Sellinger “If we think back to those very early days of the pandemic, the confusion and frustration about testing, the spread of the virus and social distancing had everyone frantically searching for answers,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Schessel witnessed that chaos and chose to capitalize on it - promising a vital resource with rapid COVID tests that never existed. The passage of time dulls memories of traumatic events, but FBI Newark and our partners are methodically investigating and bringing to justice the fraudsters who mistakenly believe they'll escape unscathed.” The jury convicted Schessel of two counts of securities fraud. He is scheduled to be sentenced on Dec. 17, 2024, and faces a maximum penalty of 20 years in prison on count one and a maximum penalty of 25 years on count two. U.S. Attorney Sellinger; Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division made the announcement. The FBI’s Newark Division investigated the case. The Justice Department appreciates the assistance of FINRA’s Criminal Prosecution Assistance Group. Assistant U.S. Attorneys George Brandley and Angelica Sinopole of the District of New Jersey Health Care Fraud Unit and Principal Assistant Deputy Chief Lucy Jennings and Trial Attorneys Kate McCarthy and Spencer Ryan of the Justice Department’s Fraud Section and are prosecuting the case. The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing Victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas .


title: Man Sentenced to 15 Years in Prison for Trafficking Fentanyl and Illegally Possessing Firearm in Chicago

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

body_text: CHICAGO — A man has been sentenced to 15 years in federal prison for trafficking fentanyl and illegally possessing a loaded handgun in Chicago. ERIC BROWN possessed the drugs and gun on Oct. 19, 2021, near the intersection of North St. Louis Avenue and West Iowa Street in Chicago’s Humboldt Park neighborhood. Brown carried a satchel that contained the handgun and 400 pills of a substance that Brown knew included fentanyl. When Chicago Police officers approached the intersection, Brown attempted to hide the gun by placing it in the wheel well of a nearby car. The officers recovered the gun, arrested Brown, and discovered the pills in his possession. Brown, 34, of Chicago, pleaded guilty last year to federal drug and firearm charges. U.S. District Judge John J. Tharp, Jr., imposed the sentence Monday during a hearing in federal court in Chicago. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Larry Snelling, Superintendent of the Chicago Police Department. Valuable assistance was provided by the Chicago Field Division of the U.S. Drug Enforcement Administration. “Drugs, and especially fentanyl, are a scourge to the public health and to law enforcement across the country, and a stain on the community,” Assistant U.S. Attorney Alejandro G. Ortega argued in the government’s sentencing memorandum. “The defendant did not think of the people he was harming when he possessed the fentanyl with intent to distribute it; he was only thinking of the profit he would make by selling the drugs.” Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.


body_text: The Justice Department announced today that Rite Aid Corporation and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC and RX Solutions LLC, have agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid’s bankruptcy case pending in the District of New Jersey. The settlement is based on the companies’ ability to pay and was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. In addition to operating one of the country’s largest retail pharmacy chains, Rite Aid offered Medicare drug plans and pharmacy benefits manager (PBM) services through Elixir Insurance, RX Options and RX Solutions. “Participants in Medicare’s drug program must accurately report price concessions, including drug manufacturer rebates, to ensure that the government receives the benefit of those concessions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Justice Department’s commitment to hold accountable entities that pursue their own financial interests at the expense of taxpayer programs.” “Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Each of those dollars could have been used to benefit Americans with genuine health care needs. Our office will not tolerate deceptive health-insurance practices, and we will vigorously pursue those who violate the FCA.” Under Medicare Part D, private entities known as Part D Plan Sponsors offer and administer insurance plans that provide prescription drug coverage to enrolled Medicare beneficiaries. Part D Sponsors must submit annual reports to the Centers for Medicare and Medicaid Services (CMS) with information about rebates and other remuneration the Plans received from drug manufacturers in connection with the Part D drugs provided to beneficiaries, which ensures that the government receives the benefit of any price concessions provided by drug manufacturers to purchasers of the drugs covered under the Part D plan. CMS relies on the reports in the annual reconciliation process that determines payments due to the Plans or CMS at the end of the year. The settlement resolves allegations that, between 2014 and 2020, the defendants improperly reported to CMS portions of rebates received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. The United States further alleged that Elixir Insurance knew the retained rebates did not meet the regulatory definition of bona fide services fees. “Truthful and accurate documentation in the delivery of health care goods or services is crucial to the integrity of federal health care programs,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Improper submission of manufacturer drug rebates and fees by Part D Plan Sponsors for pharmaceutical products in order to make more money will not be tolerated. Collaborating with our law enforcement partners, HHS-OIG is committed to preventing and investigating health care fraud in Medicare and other taxpayer-funded health care programs.” The civil settlement includes the resolution of claims brought in 2021 under the qui tam , or whistleblower, provisions of the False Claims Act by Glenn Rzeszutko, who previously worked for RX Options. The FCA authorizes a private party to sue on behalf of the United States and share in any recovery. The qui tam case is captioned United States ex rel. Rzeszutko v. Rite Aid Corporation et al. , No. 5:21-CV-574 (N.D. Ohio). The relator’s share of these proceeds has not yet been determined. The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Ohio handled this matter, with substantial assistance from HHS-OIG and FBI Cleveland Division. Trial attorneys Christopher Wilson and Dan Schiffer of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jackson Froliklong for the Northern District of Ohio handled this matter. HHS-OIG and the FBI Cleveland Field Office provided substantial assistance in the investigation. Assistant Director Mary Schmergel and Trial Attorneys Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy. Today’s settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). The claims asserted against defendants are allegations only. There has been no determination of liability. Settlement


title: Rite Aid Corporation and Affiliates Agree to Settle False Claims Act and Controlled Substance Act Allegations Related to Opioid Dispensing

body_text: The Justice Department today announced that Rite Aid Corporation (Rite Aid) and 10 subsidiaries and affiliates have agreed to settle the government’s allegations under the False Claims Act (FCA) and Controlled Substances Act (CSA) asserted in United States ex rel. White et al. v. Rite Aid Corp., et al. , No. 1:21-cv-1239 (N.D. Ohio). Under the settlement, the government will be paid $7.5 million and have an allowed, unsubordinated, general unsecured claim of $401.8 million in Rite Aid’s bankruptcy case that is pending in the District of New Jersey. During the relevant time period, Rite Aid operated one of the country’s largest retail pharmacy chains with over 2,200 retail pharmacies in 17 states. “Filling unnecessary prescriptions for powerful and addictive opioids, as the government alleged here, not only takes a toll on our communities, but also violates the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As today’s settlement illustrates, the Justice Department is committed to holding pharmacies accountable for their role in the nation’s opioid crisis.” “Pharmacies and pharmacists have an affirmative legal duty to ensure that the prescriptions they fill are legitimate,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “When they disregard this responsibility and instead ignore red flags indicating that prescriptions for addictive painkillers are invalid, they violate the public’s trust and harm the community they are supposed to serve — all to make a buck. Our settlement with Rite Aid reinforces the Northern District of Ohio’s continued commitment to combatting the opioid crisis. My office and our law enforcement partners will continue to battle this epidemic by ensuring that corporate actors comply with their legal obligations, which help to restrict unwarranted public access to highly addictive medications, and thereby fight to keep vulnerable members of our communities from becoming addicted to opioids.” The government’s complaint alleges that, from May 2014 through June 2019, Rite Aid knowingly dispensed at least hundreds of thousands of unlawful prescriptions for controlled substances that (1) lacked a legitimate medical purpose and were not issued in the usual course of professional practice and/or (2) were not valid prescriptions, were not for a medically accepted indication or were medically unnecessary. These unlawful prescriptions included, for example, prescriptions for the dangerous, highly diverted combination of drugs known as “the trinity,” prescriptions for excessive quantities of opioids, such as highly addictive oxycodone and fentanyl, and prescriptions issued by prescribers who Rite Aid pharmacists had repeatedly identified internally as suspicious and as writing unlawful, unnecessary prescriptions. The government further alleges that Rite Aid filled these prescriptions despite clear “red flags,” which highly indicated the prescriptions were unlawful and which pharmacists are trained to recognize. Rite Aid also allegedly ignored substantial evidence that its stores were dispensing unlawful prescriptions, including specific concerns raised by its pharmacists, and intentionally deleted internal notes about suspicious prescribers written by Rite Aid pharmacists, such as “writing excessive dose[s] for oxycodone,” and “DO NOT FILL CONTROLS.” By knowingly dispensing unlawful prescriptions for controlled substances, the government alleges that Rite Aid violated the CSA and, where Rite Aid sought reimbursement from federal healthcare programs, also violated the FCA. Along with Rite Aid Corporation, the government’s complaint names as defendants the following Rite Aid subsidiaries: Rite Aid Hdqtrs Corp.; Rite Aid of Connecticut Inc.; Rite Aid of Delaware Inc.; Rite Aid of Maryland; Rite Aid of Michigan; Rite Aid of New Hampshire; Rite Aid of New Jersey; Rite Aid of Ohio; Rite Aid of Pennsylvania and Rite Aid of Virginia. “Pharmacies and pharmacists have a critical responsibility to ensure controlled substances are dispensed lawfully and safely to the public. This includes highly addictive opioids as we continue to see the impact of the opioid crisis,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is entering into a Corporate Integrity Agreement with Rite Aid, which includes a prescription drug claims review to have an Independent Review Organization determine whether prescription drugs are properly prescribed, dispensed, and billed. HHS-OIG will continue to work with our law enforcement partners to hold providers accountable that put the public at risk.” “America continues to live through the worst opioid epidemic we have ever seen. Rite Aid contributed to this crisis by ignoring obvious red flags and dispensing hundreds of thousands of unnecessary opioids,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “DEA will continue to do everything in our power to protect the health and safety of Americans and to end the opioid epidemic.” The civil settlement includes the resolution of claims that certain Rite Aid pharmacies in Washington State violated the CSA by filling prescriptions written by prescribers who lacked proper controlled substance prescribing authority. The settlement also resolves claims brought in 2019 under the qui tam , or whistleblower, provisions of the FCA by Andrew White, Mark Rosenberg and Ann Wegelin, who all previously worked for Rite Aid at various pharmacies. The FCA authorizes private parties to sue on behalf of the United States for false claims and share in any recovery, and permits the United States to take over the lawsuit, as it did here in part. The relators will receive 17% of the government’s FCA recovery in this matter. In addition to the civil settlement, Rite Aid has entered into agreements with DEA and HHS-OIG to address its obligations going forward. Rite Aid and DEA entered a memorandum of agreement (MOA) designed to increase communication between the company, its retailers and DEA. Employees will receive additional training to help them identify illegitimate prescriptions and minimize the risk of drug diversion. The MOA also requires Rite Aid to create and keep materials relevant to DEA investigations for a minimum of five years. Rite Aid further commits to implementing and managing an anonymous hotline for employees, patients and the public to report suspected illegal dispensing of highly diverted controlled substances as well as suspected violations of the CSA. Rite Aid has also entered into a corporate integrity agreement (CIA) with HHS-OIG. The CIA includes a prescription claims drug review to have an Independent Review Organization to determine whether prescription drugs are properly prescribed, dispensed and billed. The settlement was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. The amount the government will recover on its unsecured claim under the settlement will depend on the ultimate amount of assets available to the bankruptcy estate for distribution to unsecured creditors. The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Northern District of Ohio handled this matter. The DEA Cleveland Division, FBI Cleveland Field Office and HHS-OIG provided substantial assistance in the investigation. Senior Trial Counsel Christopher Wilson of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Patricia Fitzgerald, Elizabeth Berry and Kathryn Andrachik for the Northern District of Ohio handled the White matter. Assistant Director Mary Schmergel and Trial Attorneys Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy. Today’s settlement illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the HHS at 800-HHS-TIPS (800-447-8477). The claims asserted against the defendants are allegations only. There has been no determination of liability. Settlement


title: McLaughlin Man Sentenced for Abusive Sexual Contact

component: USAO - South Dakota

body_text: ABERDEEN - United States Attorney Alison J. Ramsdell announced today that Charles B. Kornmann, U.S. District Court, has sentenced a McLaughlin, South Dakota, man convicted of Abusive Sexual Contact. The sentencing took place on July 8, 2024. Brady James Claymore, age 37, was sentenced to eight months in federal prison, followed by five years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $100. Claymore was indicted by a federal grand jury in February of 2024. He pleaded guilty on April 10, 2024. On the morning of December 3, 2023, Claymore went into the bedroom of a 20-year-old woman. He sat down on her bed and touched her thighs and intimate parts over her clothing without her consent. The abuse ended when the woman told Claymore to get out of her room. This incident occurred in McLaughlin, South Dakota, which lies within the Standing Rock Sioux Indian Reservation. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian country be prosecuted in federal court as opposed to State court. This case was investigated by the Bureau of Indian Affairs – Office of Justice Services. Assistant U.S. Attorney Carl Thunem prosecuted the case. Claymore was immediately remanded to the custody of the U.S. Marshals Service.


title: Deltona Woman Pleads Guilty To Stealing Over $66,000 In Social Security Funds

component: USAO - Florida, Middle

body_text: Orlando, Florida – United States Attorney Roger B. Handberg announces that April L. Brockman (42, Deltona) has pleaded guilty to theft of government property. Brockman faces a maximum penalty of 10 years in federal prison. Brockman must also pay restitution to the Social Security Administration and forfeit the proceeds of her criminal conduct. A sentencing date has not yet been set. According to court documents, “B.B.” received Social Security benefits, which were direct deposited into her checking account. Brockman, B.B.’s granddaughter, had access to the account via a power of attorney. B.B. died on June 19, 2021, at age 95. No one reported her death to the Social Security Administration, which continued to deposit monthly benefits into her account. Brockman accessed and spent all these post-death benefit payments for B.B. via a variety of online expenditures, Cash App payments to herself, and debit purchases. In total, Brockman knowingly converted to her own use and/or the use of another $66,016 in Social Security benefits to which she was not entitled. This case was investigated by the Social Security Administration Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Matthew Del Mastro.


title: Kyle Man Convicted of Aggravated Sexual Abuse of a Minor and Witness Tampering

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Lloyd Emerson Elk, age 47, of Kyle, South Dakota, of four counts of Aggravated Sexual Abuse of a Minor, one count of Abusive Sexual Contact, and one count of Witness Tampering following a two-day jury trial in federal district court in Rapid City. The verdict was returned on July 2, 2024. Aggravated Sexual Abuse of a Minor carries a mandatory minimum penalty of 30 years up to life in custody; Abusive Sexual Contact carries any term of years up to life in custody; and Witness Tampering carries maximum penalty of 20 years in custody. Elk was indicted by a federal grand jury in March of 2024 for the above-listed crimes. Evidence at trial established that Elk sexually abused a young girl multiple times when she was between the ages of five and seven years old. Elk employed years of domestic violence to control the victim and her family, including physical and emotional abuse. Elk told the victim if she ever told anyone about the sexual abuse, that he would kill her, her mother, and her brother. When the victim finally disclosed the abuse in late 2023, the investigation revealed Elk had sexually abused another young girl in 1998—while employed as a police officer in Idaho—and made similar threats to her to keep her quiet. This case was investigated by the FBI. Assistant U.S. Attorneys Anna Lindrooth and Megan Poppen prosecuted the case. A presentence investigation was ordered, and a sentencing date has been set for October 2, 2024. The defendant was remanded to the custody of the U.S. Marshals Service.


title: Pine Ridge Woman Sentenced to Federal Prison

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Pine Ridge, South Dakota, woman convicted of two counts of Involuntary Manslaughter. The sentencing took place on July 8, 2024. Janine Faye Good Lance, 45, was sentenced to two-five year terms in federal prison, each to run concurrently, followed by two years of supervised release, and ordered to pay a $200 special assessment to the Federal Crime Victims Fund. Good Lance was indicted for Involuntary Manslaughter by a federal grand jury in March of 2023. She was found guilty on April 11, 2024, following a three-day jury trial. On November 18, 2022, Good Lance drove while intoxicated on BIA Highway 18, near Pine Ridge, South Dakota, while her two friends rode in the car with her. Good Lance, who was wearing a seatbelt at the time she crashed, was the sole survivor. The passengers were ejected from the vehicle and killed when it rolled several times. During the trial, Good Lance claimed her front seat passenger grabbed the steering wheel unexpectedly and caused the car to lose control. Troopers with the Oglala Sioux Tribe Department of Highway Safety testified, however, using crash reconstruction expertise and the vehicle’s “black box” data, and proved Good Lance’s testimony was false. Good Lance had six prior Tribal arrests for driving under the influence, and two convictions in state court for driving under the influence. This case was investigated by the Oglala Sioux Tribe Department of Public Safety, the Oglala Sioux Tribe Department of Highway Safety, and the FBI. Assistant U.S. Attorney Heather Knox prosecuted the case. Good Lance must self-surrender to the custody of the U.S. Marshals Service.


title: Rapid City Man Sentenced for Bank Fraud and Money Laundering

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of three counts of Bank Fraud and three counts of Money Laundering. The sentencing took place on July 2, 2024. Steven Arthur Knigge, 77, was sentenced to 33 months in federal prison, followed by three years of supervised release, and ordered to pay a $600 special assessment to the Federal Crime Victims Fund, $20,833 in restitution to the United States Department of Treasury, $6,140 in restitution to Wells Fargo Bank, and $225 in restitution to Med5 Federal Credit Union. Knigge was indicted on five counts of Bank Fraud, eight counts of Money Laundering, and one count of Wire Faud by a federal grand jury in July of 2022. He pleaded guilty on February 7, 2024. Beginning in April of 2021 and continuing through April of 2022, Knigge devised a scheme to defraud several banking institutions for his own personal gain, including Med5 Federal Credit Union, Wells Fargo Bank, Black Hills Federal Credit Union, and Highmark Federal Credit Union. As part of his scheme, Knigge deposited seven fraudulent checks totaling approximately $200,000 knowing the checks were fraudulent. Knigge then transferred a portion of the fraudulent funds to another account or withdrew cash before the banks were able to determine the funds were fraudulent. In April of 2021, Knigge also submitted a fraudulent Paycheck Protection Program (PPP) loan application requesting $20,833 of government funds. In the PPP application, Knigge claimed he owned and operated a residential remodeling business. However, Knigge never owned or operated a residential remodeling business, and the investigation showed the banking and Form W-2 documents that were submitted in support of the application were fraudulent. Knigge received the PPP funds and then immediately withdrew nearly the entire amount in cash. “IRS Criminal Investigation (CI), in conjunction with our law enforcement partners, continues to actively pursue and prosecute those who abused the COVID pandemic relief programs and hold them accountable for defrauding the government,” said Special Agent in Charge Thomas F. Murdock, St. Louis Field Office. “Mr. Knigge, a former fraud investigator for the South Dakota Dept. of Revenue, admitted he submitted a fraudulent PPP application for personal gain, knowing he wasn’t entitled to those funds.” This case was investigated by the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case. Knigge was immediately remanded to the custody of the U.S. Marshals Service.


title: Clay County Man Indicted On Firearm Charge

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Anthony Rodriguez, Jr. (32, Orange Park) with possession of a firearm by a convicted felon. If convicted, Rodriguez faces up to 15 years in federal prison. The indictment also notifies Rodriguez that the United States intends to forfeit a Glock pistol and ammunition traceable to the firearm offense. According to the indictment, on May 11, 2024, Rodriguez possessed a Glock pistol. At the time of the incident, Rodriguez had seven previous felony convictions to include two convictions involving a firearm and ammunition. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Pernicious cyberstalker sentenced to 9 years in prison for unrelenting harassment of former roommate and others

component: USAO - Washington, Western

body_text: Seattle – A 33-year-old Seattle man previously employed as a privacy consultant was sentenced yesterday in U.S. District Court in Seattle to 9 years in prison for conspiracy to engage in cyberstalking, three counts of cyberstalking in violation of a criminal order, and three counts of cyberstalking, announced U.S. Attorney Tessa M. Gorman. Sumit Garg was indicted in March 2021. He has been in custody at the Federal Detention Center at SeaTac since that time. At sentencing U.S. District Judge John C. Coughenour told the victims, “I can’t give you the level of protection for the length of time that you deserve…I can’t give you blanket protection for 30-40 years.” “The cyberstalking activities of this defendant are unparalleled in this District and indeed nationwide. Through thousands of email and text messages Mr. Garg threatened violence against his victims -- including police and prosecutors. He attempted to make it appear his victims were the perpetrators of the stalking. Court orders and jail time did not stop him,” said U.S. Attorney Gorman. “Federal detention finally stopped him, and this sentence will protect the public for years to come.” “Justice was served today. The U.S. Secret Service is satisfied with the outcome of this case, which is a culmination of the work of motivated agents and analysts, applying their skillsets and tools to bring an end to an unprecedented cyberstalking campaign against multiple victims,” said U.S. Secret Service Special Agent in Charge Glen Peterson. “I hope the victims can find some closure to the nightmares they endured during Mr. Garg’s relentless reign of harassment.” According to records in the case and testimony at trial, in 2020, Garg began an extensive campaign of threats and sexually explicit messaging and posts about a woman who used to share an apartment with Garg’s wife. Using personal information Garg accessed after he moved into the apartment with his spouse, Garg threatened and tormented the former roommate. In April 2020, the victim reported the harassment to police. Following this, Garg and his wife tried to make it appear that they were the harassment victims and made false police reports blaming the actual victim. Garg also used his computer skills to threaten multiple people in the former roommate’s life, including her uncle who represented her in obtaining a civil protection order; her boyfriend; the Seattle Police Detective who investigated the threats; and even the Deputy Prosecuting Attorney who prosecuted Garg for his illegal stalking conduct. Garg used his computer skills to try to hide who was sending the threats or making the posts. The stalking campaign also grew increasingly violent, ultimately coming to include gruesome threats of rape, torture, and death. Over time, Garg’s stalking campaign involved thousands of emails sent from scores of accounts set up for the purpose of stalking. At one point in his scheme, Garg was videotaped in the lobby of the victim’s new apartment building at the same time photos were taken and sent of that location to frighten the victim. Garg enlisted his wife in the scheme – instructing her to send harassing emails to herself and others while he was jailed to make it appear someone else was doing the harassment campaign. He told his wife to destroy clothes he wore when he was in the lobby of the ex-roommate’s apartment building. His wife did send emails but did not destroy the clothes and ultimately cooperated with investigators. In her trial testimony, Garg’s wife said she finally felt free to tell the truth when he was booked on federal charges and would not be returning to their home to abuse her verbally and physically. In their sentencing memo, prosecutors noted that Garg had never accepted responsibility for any of his criminal actions. “While Garg appears to have delighted in his victims’ suffering, he appears to be utterly incapable of empathizing with others. With an apparently insatiable desire to even the score, Garg took a simple rent dispute between roommates, and escalated it into a massive cyberstalking campaign against an ever-growing number of victims, making grotesque and violent threats that are almost impossible to fathom.” Three victims spoke at sentencing. “What made this case singular in my mind was first, the unprecedented scope; second, the constant escalation; and lastly, the attitude displayed by the defendant that he was smarter than everyone else and his belief that he would not be caught,” remarked one victim, an experienced prosecutor. A second victim said, “I’m not sure if I will ever regain a sense of normalcy and security that I once took for granted.” The case was investigated by the United States Secret Service with assistance from the Seattle Police Department. The case was prosecuted by Assistant United States Attorney Andrew Friedman and Senior Trial Attorney Anthony V. Teelucksingh of DOJ’s Computer Crime and Intellectual Property Section.


title: Manderson Woman Sentenced for Misprision of a Felony

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Manderson, South Dakota, woman convicted of Misprison of a Felony. The sentencing took place on July 8, 2024. Jaimee Lewis, 43, was sentenced to one year in federal prison, followed by one year of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Lewis was indicted for Accessory After the Fact to Second Degree Murder by a federal grand jury in May of 2022. She pleaded guilty to Misprision of a Felony on May 3, 2024. On February 5, 2022, a seventeen-year-old female was shot to death by her boyfriend in a home where Lewis had temporarily been living. Lewis arrived home after the minor had been killed, but while her remains lay in a bedroom in the residence. Lewis used bleach to conceal evidence of the shooting and did not immediately report her knowledge of the death to law enforcement or any other authorities. This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court. This case was investigated by the FBI and the Oglala Sioux Tribe Department of Public Safety Criminal Investigations Division. Assistant U.S. Attorney Heather Knox prosecuted the case. Lewis was immediately remanded to the custody of the U.S. Marshals Service.