title: Palomar Hospital Pays $250,000 for Diverting Fentanyl

body_text: NEWS RELEASE SUMMARY – June 3, 2024 SAN DIEGO – Palomar Health, a California public health care district located in San Diego County, has paid $250,000 to resolve allegations of diversion of fentanyl from one of its facilities and failure to keep accurate records for fentanyl. Palomar Health is California’s largest health care district, with campuses in Escondido and Poway. This settlement arises from a self-disclosure Palomar Health made to the U.S. Drug Enforcement Administration (DEA) that one of its employees may have diverted controlled substances. The government investigated Palomar Health and concluded that vials of fentanyl were diverted from Pyxis machines—automated medication dispensing machines often used in hospital settings—located at Palomar Health’s Cardiac Catheterization Lab in Escondido. Specifically, the government concluded that over a five‑month period, numerous vials of fentanyl were diverted from the Pyxis machines and unused fentanyl was not properly disposed of. In addition to paying $250,000 to resolve the government’s claims, Palomar Health entered into a Memorandum of Agreement with the DEA requiring Palomar Health to undertake additional measures to increase security, implement specialized training, and to handle controlled substances properly and safely. “We commend self-reporting by those responsible for managing controlled substances and encourage others to notify law enforcement early to prevent needless harm,” said U.S. Attorney Tara McGrath. “We value our relationships with our registrant population and encourage all of them to be diligent in preventing and catching diversion,” said Diversion Program Manager Rostant Farfan. “Keeping medications, like fentanyl, off of the street is the responsibility of all who work with controlled substances.” This settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the Southern District of California and the Drug Enforcement Administration. To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499 or visit the DEA’s website ( https://www.deadiversion.usdoj.gov/tips-online.html ) and click on “Rx Abuse Online Reporting.” This case was prosecuted by Assistant U.S. Attorney Dylan M. Aste. The claims resolved by the settlement are allegations only, and there has been no determination of liability.


title: Schenectady Man Indicted for Drug and Gun Offenses

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – James Alvin Boone, age 29, of Schenectady, New York, was indicted today for conspiracy to distribute and possess with intent to distribute controlled substances, distribution of a controlled substance, possession with intent to distribute controlled substances, and possession of a firearm in furtherance of a drug trafficking crime. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. Boone was previously charged by federal complaint, on March 25, 2024. He has been detained since he made his initial appearance that day before United States Magistrate Judge Daniel J. Stewart. According to the indictment, on July 28, 2023, Boone possessed cocaine with the intent to distribute it, and also possessed a pistol in furtherance of that crime. The indictment further alleges that Boone conspired to distribute and possess with intent to distribute fentanyl and cocaine from January 14, 2023 through March 25, 2024; possessed with intent to distribute fentanyl and cocaine on March 25, 2024; and distributed fentanyl on three occasions between December 6, 2023 and February 8, 2024. The indictment seeks the forfeiture of the pistol, over $27,000 in U.S. currency, and nearly $40,000 worth of jewelry. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty. The charges filed against Boone carry a mandatory minimum prison term of 15 years and a maximum term of life, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The DEA is investigating the case with assistance from the Colonie Police Department, Schenectady Police Department, and New York State Police. Assistant U.S. Attorney Mikayla Espinosa is prosecuting the case.


title: Attica Man Sentenced to 120 Months in Prison

component: USAO - Indiana, Northern

body_text: HAMMOND – James Venable, 63 years old, of Attica, Indiana, was sentenced by United States District Court Judge Gretchen S. Lund after pleading guilty to Possession of Child Pornography, announced United States Attorney Clifford D. Johnson. Venable was sentenced to 120 months in prison, 5 years of supervised release and ordered to pay $8,000 in restitution to the victims of the offense. According to documents in the case, on or about September 13, 2022, Venable possessed child pornography while having a previous conviction for possession of child pornography. This case was investigated by Homeland Security Investigations with assistance from the Indiana Internet Crimes Against Children Task Force, the Indiana State Police, the Indiana State Police Digital Forensics Unit, the Warren County Sheriff’s Office, and the United States Marshals Service Great Lakes Regional Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Emily Morgan. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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 www.projectsafechildhood.gov .


title: Springdale Man Sentenced to 87 Months in Federal Prison for Transporting Child Pornography

component: USAO - Arkansas, Western

body_text: FAYETTEVILLE – A Springdale man was sentenced yesterday to 87 months imprisonment without the possibility of parole on one (1) Count of Transportation of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing, which was held in the U.S. District Court in Fayetteville. According to court documents, in January of 2022, agents and task force officers with Homeland Security Investigations received information that an individual from Northwest Arkansas had uploaded images of child sexual abuse material to a Google account. During the resulting investigation, law enforcement identified the user of the Google account as Jonathan David Attaway , age 32 of Springdale, Arkansas. Federal law enforcement subsequently executed a search warrant at Attaway’s residence and discovered multiple devices containing images of child sexual abuse material. At sentencing, the United States presented the Court with evidence reflecting that Attaway possessed images of minors as young as 6 years old engaged in sexually explicit conduct. U.S. Attorney Clay Fowlkes of the Western District of Arkansas made the announcement. Homeland Security Investigations, the Internet Crimes Against Children Taskforce, investigated the case. Assistant U.S. Attorney Tyler Williams prosecuted the case on behalf of the United States. These cases were prosecuted 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 U.S. Attorneys’ Offices and 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.justice.gov/psc . Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov .


title: Ohio Man Admits to Sex Offender Registry Violation

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – Scott Allen Schafer, 54, of Millersburg, Ohio, pled guilty today to failing to update his sex offender registration. According to court documents, Schafer is required to register as a sex offender because of a prior conviction involving a minor in Ohio in 2018. Schafer was living in Ritchie County, West Virginia, and failed to update his registration. Schafer faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The United States Marshals Service and the West Virginia State Police investigated. Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government. U.S. Magistrate Judge Michael John Aloi presided.


title: Harrison County Man Admits to Firearms Offense

body_text: CLARKSBURG, WEST VIRGINIA – Brock Corel Pearson, 42, of Meadowbrook, West Virginia, pled guilty today to the possession of a short-barreled shotgun. According to court documents, Pearson was found with an unregistered short-barreled shotgun in Harrison County. Pearson faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated. Assistant U.S. Attorney Jennifer Conklin is prosecuting the case on behalf of the government. U.S. Magistrate Judge Michael John Aloi presided.


title: Lincoln Man Sentenced to 11 Years for Conspiracy to Distribute Methamphetamine

component: Organized Crime Drug Enforcement Task Forces

body_text: United States Attorney Susan Lehr announced that Stacey Vanarsdale, 37, of Lincoln, Nebraska, was sentenced on June 6, 2024, in federal court in Lincoln, for conspiracy to distribute methamphetamine. Senior United States District Judge John M. Gerrard sentenced Vanarsdale to 132 months’ imprisonment. There is no parole in the federal system. After Vanarsdale’s release from prison, he will begin an 8-year term of supervised release. On August 10, 2022, Lincoln/Lancaster County Narcotics Task Force (LLCNTF) served a search warrant, at the home of Stacey Vanarsdale. Vanarsdale was contacted outside and taken into custody. A co-defendant, Alphonso Johnson, Jr. was found in a bedroom within the residence. In the bedroom closet, investigators located a total of 365.9 grams of suspected meth, which was separated in 12-ounce quantity baggies. In the closet was $217.00 in U.S. currency and other illegal narcotics. Law enforcement additionally downloaded and reviewed both Vanarsdale’s and Johnson’s personal cell phones. Text messages located on both devices indicated that Johnson directed people to meet with him or Vanarsdale at the apartment, for the purpose of selling drugs, and that they worked in concert to distribute these drugs. The suspected meth was sent to the lab, and the lab determined that there was about 346.35 grams of meth, of which at least 180 grams was actual meth. The co-defendant, Alphonso Johnson, Jr., was previously sentenced to 132 months’ (11 years) imprisonment on March 1, 2024. This case was investigated by the Lincoln/Lancaster County Narcotics Task Force (LLCNTF).


title: Norfolk Man Sentenced to 30 Years in Prison for Production of Child Pornography

component: Federal Bureau of Investigation (FBI)

body_text: United States Attorney Susan Lehr announced that Estefan Bernardino Chavez, 30, of Norfolk, Nebraska, was sentenced on June 6, 2024, in federal court in Omaha, Nebraska, for production of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Chavez to 30 years’ imprisonment. There is no parole in the federal system. After Chavez’s release from prison, he will begin a 15-year term of supervised release. Chavez will also be required to register as a sex offender. Chief Judge Rossiter ordered Chavez to pay $3,000 in restitution and a $3,100 special assessment. On February 28, 2023, Chavez attempted to join an online website purporting to facilitate the sharing of so-called “original” child pornography content via the Tor network. Chavez used an IP address that resolved to his residence in Norfolk to register for an account on the website. While using the website, Chavez sent the website administrator a link that contained a video file that depicted Chavez and a minor victim engaged in sexually explicit conduct. On March 1, 2023, the Federal Bureau of Investigation’s Child Exploitation and Human Trafficking Task Forced executed a search warrant at Chavez’s residence. Chavez was arrested that same day. 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 United States 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. This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.


title: Chinese Nationals Sentenced for Conspiracy to Transport Illegal Aliens

component: USAO - Guam & Northern Mariana Islands

body_text: Saipan – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States District Court for the Northern Mariana Islands imposed the following sentences against defendants for Conspiracy to Transport Illegal Aliens, in violation of 18 U.S.C. § 1324(a)(1)(A)(v)(I): Sentencing Date: May 31, 2024 DONGLIN XU, age 49 – 12 months imprisonment, one year supervised release, 50 hours community service, $100 mandatory assessment. QINGLANG LI, age 52 – 8 months imprisonment, one year supervised release, 50 hours community service, $100 mandatory assessment. These defendants organized transportation via private watercraft from Saipan to Guam for themselves and 12 other Chinese nationals. Each person contributed up to $5,000 for the trip. Federal law prohibited them from traveling outside of the CNMI. Moreover, most had no lawful immigration status at the time of the crime. These 12 defendants were previously convicted, sentenced, and ordered to return to China on the same charge as defendants Xu and Li. Both Xu and Li received enhanced sentences for profiting from and having leadership roles in the scheme. The district court further ordered that they return to China within three months of serving their sentences of confinement. “We will continue to prosecute this conduct to hold offenders accountable and promote safety at sea,” stated United States Attorney Anderson. “The Court ordered substantial terms of imprisonment for these defendants due to their roles in the scheme. This should send a message of deterrence to those planning or engaging in this criminal activity.” This case was investigated by Homeland Security Investigations and prosecuted by Eric S. O’Malley, Assistant United States Attorney in the District of the Northern Mariana Islands.


title: Mount Zion Baptist Church Agrees to Pay Over $70,000 to Settle Allegations of Misusing Paycheck Protection Program Loan Funds

component: USAO - Tennessee, Middle

body_text: NASHVILLE – Mount Zion Baptist Church (“MZB”) has agreed to pay $70,464.39 to settle civil claims that it misused a Paycheck Protection Program (“PPP”) loan. This agreement resolves allegations that MZB unjustly enriched itself by improperly using the PPP loan to make mortgage principal payments in violation of the PPP regulations. The United States alleged that MZB applied for a PPP loan in April 2020, certifying that the loan would be used only for purposes permitted under the PPP regulations, including mortgage interest payments. But on May 29, 2020, MZB made two separate mortgage principal payments totaling $70,464.39, in violation of the PPP requirements. On May 1, 2021, MZB applied for full forgiveness of its PPP loan, certifying that it used the entirety of the loan funds to pay business expenses that were eligible for forgiveness. As a result, on May 17, 2021, the Small Business Administration (“SBA”) approved MZB’s application for PPP loan forgiveness, including the portion of the loan that the United States contends that MZB used for mortgage principal payments. Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, to provide emergency financial support to the millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. This settlement resolves allegations that MZB was unjustly enriched by taking PPP funds that it used improperly for purposes that were not allowed by the PPP. The litigation resolved by this case originally was brought under the qui tam or whistleblower provisions of the False Claims Act by Kiara Moore, a former employee of MZB. Under the whistleblower provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. In this case, Moore will receive $10,569.66 of the settlement funds. The litigation, which is concluded by the settlement announced today, is captioned United States ex rel. Moore v. Mount Zion Baptist Church , Case No. 3:23-cv-0024 (M.D. Tenn.). This matter was handled by Assistant U.S. Attorney S. Jae Lim of the Middle District of Tennessee, with assistance from the SBA’s Office of General Counsel. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . # # # # #


title: Former Detroit Riverfront Conservancy CFO  Charged with Embezzling Tens of Millions of Dollars from Conservancy

component: USAO - Michigan, Eastern

body_text: DETROIT – William A. Smith, 51, the former Chief Financial Officer for the Detroit Riverfront Conservancy, was charged with Bank Fraud and Wire Fraud in a criminal complaint unsealed today in federal court, United States Attorney Dawn N. Ison announced. The charges arose out of what is alleged to be a years-long scheme by Smith to embezzle Conservancy funds for his own use. Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Field Office. According to court documents, The Detroit Riverfront Conservancy (DRFC, or the Conservancy) is a 501(c)(3) organization formed with the mission of developing access to the Detroit International Riverfront from the Ambassador Bridge to Belle Isle. The DRFC is funded by a combination of public and private funds. Smith was the CFO of the DRFC from 2011 until he was fired late last month. According to the Complaint, beginning as early as November 2012, Smith orchestrated a scheme to embezzle millions of dollars in funds belonging to the DRFC. The Complaint alleges that Smith carried out his embezzlement scheme in two distinct ways. First, Smith is alleged to have used Conservancy funds to pay for charges that he and his family accrued on an American Express account. Second, Smith is alleged to have diverted Conservancy funds to a company he controlled called “The Joseph Group.” Neither of these sets of expenditures were authorized or approved by the Board of the DRFC; “The Joseph Group,” was not an approved vendor and provided no services to the DRFC, and Smith had no authority to use Conservancy funds to pay his own personal credit card bills. The complaint alleges that, between November 2012 and March 2024, Smith stole nearly $40 million from the DRFC through these two embezzlement streams. To cover up his embezzlement, the Complaint alleges that Smith doctored bank statements provided to the Conservancy’s accountant for entry into the DRFC’s accounting software. These false bank statements led to erroneous financial information being entered into the DRFC’s books, thereby concealing the fraud. In 2023, Smith is alleged to have obtained a $5 million line of credit with Citizens Bank on the Conservancy’s behalf – a line of credit he was not in any way authorized to take out. The Bank asked Smith for documentation confirming that Smith, as CFO, had the sole authority to obtain such a line of credit on behalf of the Conservancy. Smith is alleged to have provided the bank with a document purporting to establish that Smith was indeed empowered by the DRFC Board of Directors to obtain such credit lines. That document, according to the complaint, was false, and bore the forged signature of the Conservancy’s Corporation Secretary. Smith is alleged to have used funds he obtained from this line of credit to further his embezzlement scheme. “The Detroit Riverfront Conservancy’s mission is to transform one of our city’s greatest assets, the riverfront, into a vibrant and safe space for all to gather and enjoy. This defendant is alleged to have abused the trust the Conservancy placed in him and to have carried out a fraud that is simply astonishing in scale. Today’s allegations are extremely serious ones, and my office is committed to pursuing anyone, regardless of their title, who fleeces taxpayers and charitable donors for their own private gain. We value our partnerships, and these charges are the result of the close cooperation and collaboration that we appreciate from our state and local law enforcement partners who brought this matter to our attention,” U.S. Attorney Ison said. “This case was initially brought to us on May 14th, and we were able to quickly deduce that an enormous amount of money was allegedly embezzled, and that there would be mountains of documents to examine. It was something that we would be unable to handle properly at this time. We discovered an alleged Federal nexus and due to our various existing collaborations, my next call was to U.S. Attorney Dawn Ison. Fortunately for us, and the citizens of Wayne County and beyond, she agreed immediately to take this case,” said Wayne County Prosecutor Kym Worthy. A criminal complaint is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. The case is being prosecuted by Assistant U.S. Attorneys John K. Neal and Robert A. Moran. The case is being investigated by the FBI.


title: United States Department Of Energy Employee Agrees To Pay $96,757.95 To Settle False Claims Act Allegations Regarding Her Submission Of False Claims To Obtain Economic Injury Disaster Loan

component: USAO - Maryland

body_text: Baltimore, Maryland – U.S. Department of Energy employee Lisa Phillips, of Owings Mills, Maryland, has agreed to pay the United States $96,757.95 to resolve allegations that she violated the federal False Claims Act by submitting false claims to the U.S. Small Business Administration (“SBA”) to obtain an Economic Injury Disaster Loan (“EIDL”) and EIDL advance during the height of the COVID-19 pandemic. The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron, and Inspector General for the Department of Energy, Teri L. Donaldson. During the COVID-19 pandemic, the Small Business Administration provided EIDLs and EIDL Advances to small businesses to be used for working capital and other normal operating expenses. On July 10, 2020, Phillips signed and submitted a Loan Authorization and Agreement for an EIDL in the amount of $26,200.00. The United States contends that in her this EIDL application, the defendant made several material misrepresentations including, among other things, that, in 2019, her business had four employees, a gross annual revenue of $150,500, and $90,000 in cost of goods expenses. Phillips also stated that her business opened on January 25, 2017, and that the business was in the Educational Services industry. These misrepresentations were knowingly false; Phillips knew that she did not own or operate a business in the Educational Services industry, that she did not have any employees, and that she had neither the revenue nor cost of goods as stated in the application. In addition to the $26,200 Loan, Phillips received a $4,000 advance. The civil investigation was opened by the United States Attorney’s Office based upon a referral from the U.S. Department of Energy’s Office of Inspector General. “The U.S. Attorney’s Office and our partners are committed to zealously pursuing cases involving COVID-19 fraud, including fraud related to the EIDL program,” said U.S. Attorney Erek L. Barron. “We are going to continue to hold those who steal from the government accountable for their actions,” said Teri L. Donaldson, Inspector General, Department of Energy. “Pandemic funds were designed to help the public during a difficult time and taking advantage of this program for personal gain will not be tolerated.” The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Phillips nor a concession by the United States that its claims are not well-founded. United States Attorney Erek L. Barron commended the U.S. Department of Energy, Office of the Inspector General, for its work in this investigation. Mr. Barron thanked Assistant U.S. Attorney Matthew Shea, who handled the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud . ##


title: Illinois Predator Sentenced to 42 Years in Federal Prison for Years of Sexual Abuse of a Young Child he Drugged with Methamphetamine

body_text: INDIANAPOLIS- Zachary Nichols, 31, of Newton, Illinois, has been sentenced to 42 years in federal prison, followed by a lifetime of supervised release, after pleading guilty to two counts of sexual exploitation of a child and one count of permitting or assisting by a parent or guardian in the sexual exploitation of a child. According to court documents, Zachary Nichols had been in a romantic relationship with a relative of an eleven-year-old child. Beginning in at least 2016, Nichols began sexually abusing the child and recording the abuse. Nichols groomed, sexually abused, and raped the child for years, all while recording and taking photos of the abuse. Nichols was an active user of methamphetamine and supplied the child with the drug to facilitate some of the sexual abuse. The child is nearly incapacitated because of drug use in some of the child sex abuse material that Nichols created. Nichols continued supplying methamphetamine to the child well into the victim’s teenage years. On multiple occasions, Nichols forced the child to engage in sexual conduct with Dustin Cox on camera. Cox was Nichols’ drug dealer and was also a registered sex offender at the time. Nichols received drugs in exchange for bringing the child to be sexually abused by Cox. Cox has been charged with Sexual Exploitation of a Child, and Conspiracy to Sexually Exploit a child in a related case. Cox has filed a petition to plead guilty, and guilty plea and sentencing hearing will be scheduled at a later date. On August 25, 2022, Nichols was arrested in Illinois. A court-authorized search of his phone and Google account showed multiple image and video files depicting Nichols sexually abusing the child. The FBI and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney II. Judge Sweeney also ordered that Nichols must pay $20,000 in restitution to the victim. “For years, Zachary Nichols sexually abused a child entrusted in his care in the most horrific of ways: so utterly depraved he traded his victim’s body for meth and pushed the drug on the innocent child. Nichols inflicted the worst childhood traumas imaginable, and the harms will echo for the rest of the victim’s life,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana “There is no place in a civilized society for men like this. Thanks to the talent and dedication of the team at the FBI, our law enforcement partners, and our federal prosecutor, children will be safe from this man for many, many years.” “This sentence clearly demonstrates the gravity of the defendant’s heinous actions and ensures he will be behind bars for years to come and unable to perpetrate such depravity on another child,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI and our law enforcement partners will continue to aggressively pursue and hold accountable those who engage in these crimes.” U.S. Attorney Myers thanked Assistant U.S. Attorney Tiffany J. Preston, who prosecuted this case. This case was brought as part of Project Safe Childhood , a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. ###


title: New Orleans Man Sentenced for Being Felon in Possession of Firearm and Ammunition

body_text: NEW ORLEANS, LOUISIANA – CHRIS ROBERTSON, Jr. (“ROBERTSON”) , age 25, of New Orleans, was sentenced on June 4, 2024 by Chief U.S. District Judge Nanette Jolivette Brown to 41 months in prison followed by 3 years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). According to court documents, the Federal Bureau of Investigation (FBI) executed a search warrant at ROBERTSON ’s residence in November of 2023. FBI found a box of 9-millimeter ammunition hidden underneath his mattress and a Glock Model 19, 9-millimeter handgun hidden underneath a rug outside of his bedroom. ROBERTSON has previous convictions for possessing a firearm with an obliterated serial number and attempted illegal carrying of weapons while in possession of a controlled substance. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crime Unit is in charge of the prosecution.


title: Auburn, Washington man charged federally for drug distribution and illegal firearms possession

component: USAO - Washington, Western

body_text: Seattle – A 33-year-old Auburn, Washington, man was arrested last night on a federal criminal complaint charging firearms and drug distribution crimes, announced U.S. Attorney Tessa M. Gorman. Andy Peter Vongdala was charged by criminal complaint after he was caught with large quantities of controlled substances and multiple firearms on April 26, 2024. At the time of his arrest, Vongdala was booked on outstanding warrants and subsequently posted bail. Vongdala will be detained on the federal charges pending additional hearings. According to the criminal complaint, Vongdala was a suspect in a series of commercial burglaries in Renton, Washington. Renton Police worked with King County prosecutors and obtained a search warrant for Vongdala’s residence to search for distinctive clothing from the burglary investigation. When police served the search warrant, they encountered Vongdala leaving his two-bedroom apartment. In a backpack he carried, police found a stolen Glock firearm and more than two kilograms of MDMA. Some of the drugs were in smaller bags inside a larger zip lock bag labeled “sample.” A search of Vongdala’s residence revealed an additional firearm and firearm parts along with ammunition and body armor. In his bedroom, police recovered 61 kilograms of MDMA, more than 2300 fentanyl pills, nearly a kilogram of methamphetamine, and smaller amounts of suspected heroin, cocaine, and alprazolam. Law enforcement seized a rifle with a casing catcher – a device that keeps shell casings from being left on the ground after the gun is fired. There were also numerous firearm magazines including extended magazines and a drum magazine. Suspected armor piercing bullets were seized as well. Vongdala is charged with two counts of possession of controlled substances with intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime. Due to the quantity of drugs seized in this case, the penalties include a mandatory minimum ten years in prison. Possession of a firearm in furtherance of a drug trafficking crime is punishable by an additional five years in prison which runs consecutive to any other sentence imposed in the case. The charges contained in the criminal complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law. The case is being investigated by the Renton Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Celia Lee.


title: Pennsylvania Man Sentenced for Online Enticement of a Minor

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – A Pennsylvania man was sentenced today to 120 months imprisonment followed by 60 months of supervised release for online enticement of a minor after text messages between the defendant, James Julius Caton, age 29, and the minor victim that were sexual in nature were uncovered on the victim’s phone. The messages include discussion of Caton traveling from Pennsylvania to North Carolina to have sex with the victim. Caton pled guilty to the charge on February 22, 2024. According to court documents and other information presented in court, Caton was investigated by the Cary Police Department after a mom found sexual text messages between Caton and her 13-year-old child. Law enforcement analyzed the child’s phone and interviewed the child. It was learned Caton first reached out to the child on Omegle, a free, web-based online chat service that allowed users to socialize without the need to register. The conversation moved to Snapchat and Instagram, and later to text messages. Search warrants were obtained for both Caton’s and the victim’s Snapchat and Instagram accounts, where sexually explicit conversations between the two were discovered. In text messages between the two, Caton encouraged the child to send pictures of their genitals to Caton. In addition, Caton and the child discussed meeting to engage in sexual activities. Caton was arrested in Pennsylvania where he was living. His digital devices were analyzed in Pennsylvania and law enforcement found unrelated images and videos of child pornography on his cellular device. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. U.S. District Judge Terrence W. Boyle presided over the sentencing. The Cary Police Department and the Department of Homeland Security investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted 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 U.S. Attorneys' Offices and 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 Justice.gov/PSC . Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-341-BO.


title: United States Files Forfeiture Action To Recover Over $5 Million From Business Email Compromise Scheme Targeting Massachusetts Workers Union

component: USAO - Massachusetts

body_text: BOSTON – The United States filed a civil forfeiture action today to recover approximately $5,315,746 alleged to be proceeds of a business email compromise (BEC) scheme targeting a Massachusetts workers union, as well as property involved in money laundering. The complaint alleges that in January 2023, a workers union located in Dorchester received an email requesting a change of payment information from someone it believed worked at an investment consulting firm. The complaint also alleges that the email came from what initially appeared to be the consulting firm’s true email address but was in fact a spoofed email address that had been changed by one letter. The spoofed email instructed the workers union to make a $6,400,000 transfer to a different bank account than had been previously arranged, which the workers union did, in fact, do. The spoofed email, however, was a fraudulent communication intended to mislead the workers union into unwittingly transferring funds to an account controlled by someone other than the intended recipient. The fraudulently-obtained funds were then allegedly transferred through a series of intermediary bank accounts – with some funds sent, or attempted to be sent, to a cryptocurrency exchange and various bank accounts located in Hong Kong, China, Singapore and Nigeria. Investigators were able to trace proceeds of the scheme to seven domestically held bank accounts, the contents of which were subsequently seized by U.S. authorities. “BEC fraud schemes present a serious threat to businesses and individuals nationwide, causing significant financial and emotional harm to victims by exploiting trusted communication channels they rely upon every day. Today’s civil forfeiture action demonstrates that when victims report such misconduct to the authorities there may be steps we can take to recover stolen funds. We hope today’s action helps restore some level of stability and justice for those impacted by fraud,” said Acting U.S. Attorney Joshua S. Levy. Acting U.S. Attorney Levy; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; and Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement today. The civil forfeiture action is being prosecuted by Assistant U.S. Attorney Matthew M. Lyons of the Asset Recovery Unit along with Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen of the Justice Department’s Money Laundering & Asset Recovery Section. Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams and business email compromise (BEC) fraud scams – should contact USAMA.CyberTip@usdoj.gov . The accusations in the complaint, and the description of the complaint, constitute only allegations that certain property is subject to forfeiture. The United States must prove, by a standard of preponderance of the evidence, that the property is subject to forfeiture. If the United States prevails, the court will order all interests of any potential claimant forfeited.


title: South Park Resident Sentenced to Nearly 11 Years in Prison for Distribution and Possession of Child Sexual Abuse Material

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of South Park, Pennsylvania, was sentenced in federal court on June 3, 2024, to 130 months of incarceration, to be followed by seven years of supervised release, on his convictions of distribution and possession of material depicting the sexual exploitation of minors, United States Attorney Eric G. Olshan announced today. Senior United States District Judge Nora Barry Fischer imposed the sentence on Michael Moran, 66, after he pleaded guilty to the charges in October 2022. According to information presented to the Court, Moran uploaded more than 200 images of child sexual assault material to Flickr/SmugMug in August 2018. Subsequent investigation by the FBI and Allegheny County Police led to the Western Pennsylvania Violent Crimes Against Children Task Force executing a search warrant at Moran’s South Park residence. There, law enforcement officers seized multiple computers, tablets, phones, hard drives, and other electronic equipment, many of which contained child sexual abuse material including photos and videos. Law enforcement also determined that Moran had publicly posted sexually explicit images of minors to his Flickr accounts that were then marked as favorites by other users. Prior to imposing sentence, Judge Fischer noted the seriousness of Moran’s conduct and that Congress had purposely made penalties for child pornography offenses harsh. She also stated that use of a computer makes the crime easier to perpetrate but more difficult for the public to know of a defendant’s wrongdoing. In determining the sentence, the Judge also considered Moran’s admission that he had sexually assaulted a minor with autism decades earlier. Assistant United States Attorney Jacqueline Brown prosecuted this case on behalf of the government. United States Attorney Olshan commended the Federal Bureau of Investigation and Allegheny County Police Department for the investigation leading to the successful prosecution of Moran.


title: Two Partners Of Westchester Accounting Firm Plead Guilty To Tax Fraud Conspiracy

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced that GEORGE SANOSSIAN and JACK N. SARDIS pled guilty to conspiracy to defraud the IRS, on May 29 and June 5, 2024, respectively, in White Plains federal court. SANOSSIAN’s sentencing before U.S. District Judge Cathy Seibel is scheduled for September 24, 2024. SARDIS’s sentencing before U.S. District Judge Nelson S. Román is scheduled for September 26, 2024. U.S. Attorney Damian Williams said: “As they admitted in court, the defendants, both certified public accountants, conspired to fraudulently reduce the tax liability of clients of their accounting firm. This case serves as a reminder to all Americans that they are required to truthfully report their earnings and that criminal penalties could await those who fraudulently deceive the IRS, as George Sanossian and Jack Sardis have learned. My Office will continue to hold to account those who scheme to impede the lawful functions of the IRS.” IRS-CI Special Agent in Charge Thomas M. Fattorusso said: “Schemes to conceal and reduce federal income and payroll tax liability, such as those utilized by Sardis and Sanossian, are unfair to every taxpayer who obeys the law and pays their fair share. The prosecution of individuals who intentionally conceal income and evade taxes is a key step in the IRS’s enforcement strategy. These guilty pleas place the defendants a step closer to realizing the consequences of their actions.” According to the Informations, to which SARDIS and SANOSSIAN pled guilty, and statements made court: SARDIS and SANOSSIAN were certified public accountants and partners in an accounting firm in Scarsdale, New York, that provided accounting and income and payroll tax services to clients, including nine businesses in the construction industry (the “Clients”). From in or about 2012 through at least on or about April 15, 2018, SARDIS and SANOSSIAN agreed with Clients to scheme to: (i) fraudulently reduce the income tax liability of the Clients; (ii) conceal wages paid to employees by the Clients and, thereby, fraudulently reduce the Clients’ payroll tax liability; and (iii) conceal personal income of the Clients. The defendants advised the Clients to participate in a scheme to reduce their federal income and payroll tax liability, pursuant to which the Clients issued checks made payable to a shell company and gave the checks to SARDIS and SANOSSIAN, who then caused the checks to be cashed at a check cashing service and returned the cash, minus a fee, to the Clients. Some Clients used the cash to pay employees without reporting the cash wages on their IRS Forms 941, thereby evading both their employer contributions to Social Security and Medicare and their obligation to withhold income tax on those wages, which permitted the employees to evade federal and state income tax. The owners and managers of some Clients took the cash for personal use without reporting the income on their personal federal and state tax returns. SARDIS and SANOSSIAN caused checks to be cashed in this manner for Clients in a total amount exceeding $2 million. * * * SARDIS, 66, of Englewood Cliffs, New Jersey, and SANOSSIAN, 70, of Scarsdale, New York, pled guilty to one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison. SARDIS and SANOSSIAN have agreed to pay restitution to the IRS and New York State, representing the additional tax due and owing as a result of their conduct, in the total amount of $652,883.60. The maximum potential sentence in these cases is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding investigative work of the IRS-CI in this case. The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman and James McMahon are in charge of the prosecution.


title: Final Defendant Sentenced For ATM Burglaries

component: USAO - Nevada

body_text: LAS VEGAS – The final defendant was sentenced Tuesday by United States District Judge Jennifer A. Dorsey for his role in a conspiracy to burglarize multiple bank automatic teller machines by forcibly ripping them open with pry bars, hammers, hooks, and chains connected to stolen Ford F-250 pickup trucks. According to court documents, from March 2020 to December 2020, Stanley Booker, Demarcus Dosewell, Dominique Owens, and Jecorian McCutcheon, all of Houston, and George Densley, of Las Vegas, conspired to burglarize ATMs and participate in three ATM burglaries in Las Vegas and one ATM burglary in Henderson. For the three Las Vegas ATM burglaries, defendants ripped apart the ATMs but were unable to open the safes containing cash. For the Henderson ATM burglary, Booker, Dosewell, and Densley stole $114,100. Booker, Dosewell, Owens, and McCutcheon also burglarized an ATM in Phoenix, stole $151,200, and transported that money to Las Vegas. Owens pleaded guilty to three counts of bank burglary and one count of interstate transportation of stolen property; he was sentenced Tuesday to 51 months in prison. Dosewell pleaded guilty to one count of bank burglary; on February 21, 2023, he was sentenced to 41 months in prison. Booker pleaded guilty to one count of conspiracy to commit bank burglary, four counts of bank burglary, and one count of interstate transportation of stolen property; on March 11, 2024, he was sentenced to 84 months in prison. McCutcheon pleaded guilty to two counts of bank burglary and one count of interstate transportation of stolen property; on March 5, 2024, he was sentenced to 41 months in prison. After a five-day jury trial, Densley was found guilty of one count of conspiracy to commit bank burglary and two counts of bank burglary; on May 7, 2024, he was sentenced to 60 months in prison. In addition to imprisonment, the defendants were ordered to pay restitution in the amount of $485,554.77. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement. This case was investigated by the FBI. Assistant United States Attorneys Joshua Brister and Steven Rose prosecuted the case. ###


title: Former Quincy Man Arrested for Allegedly Distributing 10 Pounds of Methamphetamine

body_text: BOSTON – A former Quincy man currently residing in Las Vegas has been arrested in connection the distribution of methamphetamine. Samuel Jean-Baptiste, a/k/a “Jett Black,” 38, was charged with one count of distribution of methamphetamine. Jean-Baptiste was arrested on May 30, 2024 and, following an initial appearance in federal court in Boston, was detained pending a hearing scheduled for June 6, 2024. According to the charging document, in early July 2023, Jean-Baptiste was identified as a significant distributor of controlled substances in the Boston area. A confidential source allegedly made three controlled purchases totally a combined 700 grams of fentanyl from Jean-Baptiste. It is alleged that in May 2024, Jean-Baptiste informed a second confidential source that he would soon be traveling from Las Vegas to Boston and discussed selling the source 10 pounds of methamphetamine in exchange for $32,000. It is further alleged that Jean-Baptiste also told the confidential source that he was having an associate in California ship the methamphetamine to Boston and that they could conduct the transaction at a gas station at Logan Airport – after which Jean-Baptiste would “disappear back into the airport” to travel back to Las Vegas. Jean-Baptiste was immediately apprehended upon arriving at the gas station, allegedly carrying a backpack that contained approximately 10 pounds of suspected methamphetamine. The charge of distribution of methamphetamine carries a maximum sentence of 20 years in prison, at least three years of supervised release and a maximum fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf . The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Memphis Man Resentenced to 20 Years for Attempted Robbery

component: USAO - Tennessee, Western

body_text: Memphis, TN – A federal judge recently resentenced a Memphis man to 20 years in federal prison for the attempted robbery of a Boost Mobile store in December 2017. United States Attorney Kevin G. Ritz announced the sentence today. According to information presented in court, on December 8, 2017, Lamar Clancy , 31, and another man entered a Boost Mobile store, armed with guns and wearing ski masks. They immediately pointed their weapons at the three employees behind the counter, stating, “You know what time it is.", before opening fire at the employees. Two of the employees returned fire. During the shooting, a third, unarmed employee was shot in the knee. The shooting also endangered a customer and three minor children who had been waiting in a vehicle in the parking lot. After the shooting, Clancy and his accomplice fled the scene. On May 2, 2019, after a jury trial, Clancy was found guilty of attempted robbery and discharging a firearm in furtherance of that attempted robbery; he was originally sentenced in November 2019. Due to changes in the law which went into effect in 2022, Clancy’s firearm conviction was vacated, and the district court scheduled a resentencing hearing. At that hearing, United States District Court Judge John T. Fowlkes sentenced Clancy to 240 months incarceration with the Bureau of Prisons, followed by 3 years of supervised release. There is no parole in the federal system. 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. This case was investigated by the Federal Bureau of Investigation and the Memphis Police Department. United States Attorney Ritz thanked Assistant United States Attorney Naya Bedini, who prosecuted this case at the resentencing hearing, as well as the law enforcement partners who investigated the case. ### For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov . Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.


title: United States Files Forfeiture Action to Recover Over $5M of Funds Traceable to Business Email Compromise Scheme Targeting Massachusetts Workers Union

component: Criminal Division

body_text: The Justice Department filed a civil forfeiture action today to recover approximately $5,315,746.29 of funds alleged to be proceeds of a business email compromise (BEC) scheme and property involved in the subsequent laundering of the proceeds. According to the complaint, in January 2023, a workers union based in Dorchester, Massachusetts, was defrauded out of $6.4 million after it received a spoofed email, which appeared to be from its investment manager. The email allegedly changed the beneficiary bank account of the $6.4 million payment. The complaint alleges that the email had the intended effect of misleading the workers union into transferring funds to a bank account controlled by someone other than the intended recipient. The complaint further alleges that the fraudulently obtained funds were then transferred through a series of intermediary bank accounts, with some funds transferred, or attempted to be transferred, to a cryptocurrency exchange or to various bank accounts located in Hong Kong, China, Singapore, and Nigeria. Investigators were able to trace proceeds of the scheme to seven domestically held bank accounts, the contents of which were subsequently seized. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts; and Special Agent in Charge William Mancino of the U.S. Secret Service made the announcement. The U.S. Secret Service is investigating the case. Trial Attorneys Jasmin Salehi Fashami and Adrienne E. Rosen of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Matthew Lyons for the District of Massachusetts are prosecuting the forfeiture. A BEC scheme is a type of sophisticated fraud scheme targeting businesses that use wire transfers as a form of payment. BEC schemes affect large global corporations, governments, and individuals, with current global daily losses estimated at approximately $8 million. Criminals compromise legitimate business email accounts through various hacking schemes, including social engineering and the use of malware. Once a business email account is compromised, a fraudulent email is sent directing the recipient of the email to unwittingly transfer funds to an illicit account. Alternatively, criminals create “spoofed” email domain names to trick people into thinking they know the sender. An email domain name is the part of an email address that comes after the “@” symbol. In email spoofing, one character in an email address is often changed or missing, thereby tricking the recipient. Criminals obtain and use privileged information to convince BEC email recipients that the transfer instructions are legitimate. To avoid becoming the victim of a BEC scheme, verify that sender email addresses are accurate when checking mail on a cellphone or other mobile device before you open any attachments or follow any instructions, and never make any payment changes without verifying with the intended recipient by phone or in person. If you think you have been a victim of a BEC scheme, 1) immediately contact your bank to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity; and 2) file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov . The Internet Crime Complaint Center is run by the FBI and serves as the country’s hub for reporting cybercrime. Visit www.ic3.gov for updated information regarding BEC trends as well as other cyber fraud schemes. A civil forfeiture complaint is merely an allegation. The United States bears the burden of proving that the funds in question are subject to forfeiture in a civil forfeiture proceeding. Complaint


title: Windham Man Faces 5+ Years in Federal Prison for Possession, Distribution of Child Sexual Abuse Material

body_text: PORTLAND, Maine: A Windham man pleaded guilty today in U.S. District Court in Portland to distribution and possession of child pornography. According to court records, in October 2023, Cote Noonan, 33, using the username “Femboy Cassidy,” sent an undercover FBI agent three child sexual abuse material videos using the instant messaging application TeleGuard. The videos showed the sexual abuse of young victims, including an infant. The agent also observed “Femboy Cassidy” share similar photos and videos on two other occasions in a trading room for child sexual abuse material. During the investigation, Noonan admitted to operating the “Femboy Cassidy” account and informed law enforcement that they would find child sexual abuse material on his devices. The FBI seized several devices from Noonan’s residence, four of which contained thousands of known child sexual abuse material images and videos. Many of these images and videos showed the sexual abuse of toddlers and infants. Noonan faces no less than five years and up to 20 years in prison and a fine up to $250,000 on the distribution of child pornography charge, to be followed by five years to life of supervised release. He faces up to 20 years in prison and a fine up to $250,000 on the charge of possession of child pornography involving a prepubescent minor, to be followed by five years to life of supervised release. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI investigated the case. To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – referred to in legal terms as "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer revictimization every time the images are viewed. In 2023, the National Center for Missing & Exploited Children received 36 million reports of the possession, manufacture, or distribution of child sexual abuse materials. To file a report with NCMEC, go to https://report.cybertip.org or call 1-800-843-5678 . If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741 . Project Safe Childhood: 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 U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/usao-me/psc . ###


title: Indian National Admits Defrauding Telephone Providers and Insurance Companies of $9 Million Worth of Merchandise

component: USAO - New Jersey

body_text: NEWARK, N.J. – An Indian national admitted his role in a conspiracy to defraud various telephone providers and insurance companies of millions of dollars by using stolen or fake identities to submit fraudulent claims for replacement cellular devices and then reselling those devices outside the United States, U.S. Attorney Philip R. Sellinger announced today. Sandeep Bengera, 36, of Newark, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to a two-count indictment charging him with one count of conspiracy to commit mail fraud and one count of conspiracy to commit interstate transfer of stolen property. According to documents filed in this case and statements made in court: From June 2013 through June 2019, Bengera was involved in a widespread scheme to defraud cellular telephone provider and insurance companies using the U.S. mail system, as well as other third-party mail carriers. Bengera and his conspirators used stolen and fake identities to submit false claims of lost, stolen or damaged cellular telephones, as well as other devices, in order to obtain replacement devices. Bengera and his conspirators maintained a network of mailboxes and storage units across the United States, including in New Jersey, where the replacement devices would be shipped and then held before being sold to third parties outside the United States. Bengera admitted the total value of the replacement devices was more than $9 million. The charge of conspiracy to commit mail fraud carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense. The charge of conspiracy to commit interstate transfer of stolen goods carries a maximum potential penalty of five years in prison and a $250,000 fine, or twice the gain or loss from the offense. Sentencing is scheduled for Oct. 10, 2024. U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Assistant Director in Charge James Smith in New York; postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge William S. Walker; officers with Customs and Border Protection, New York Field Office, under the direction of Director of Field Operations Francis J. Russo; and the U.S. Department of State’s Diplomatic Security Service, New York Field Office, under the direction of Acting Special Agent in Charge Kelly Bishop, with the investigation leading to today’s guilty plea. The government is represented by Assistant U.S. Attorney Rachelle M. Navarro of the U.S. Attorney’s Office’s Criminal Division in Newark. bengera.indictment.pdf


title: Two Baltimore Area Men Convicted After Trial Of Abductions Involving Kidnappings, Carjackings And Related Charges

body_text: Baltimore , Maryland – After a three-week trial, a federal jury returned guilty verdicts today convicting Dennis Allen Hairston, age 34, of Windsor Mill, Maryland, and Donte Davon Stanley, age 33, of Rosedale, Maryland, on federal charges of kidnapping and robbery conspiracies; kidnapping; carjacking; robbery affecting commerce. Hairston was also convicted of using, carrying, and brandishing a firearm during and in relation to a crime of violence. The guilty verdict was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge William J. DelBagno of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Richard Worley of the Baltimore Police Department; Chief Robert McCullough of the Baltimore County Police Department; Harford County Sheriff Jeffrey R. Gahler; and Harford County State’s Attorney Alison M. Healey. “My office will not tolerate carjackings,” stated U.S. Attorney Barron. “We’re collaborating with our partners to prosecute these crimes and hold offenders accountable to the fullest extent of the law.” “There’s no question these criminals belong behind bars, and their conviction guarantees that will happen,” said Special Agent in Charge William DelBagno of the FBI’s Baltimore Field Office. “Hairston and Stanley’s actions are disturbing and will not be tolerated. FBI Baltimore is determined to ensure brazen individuals willing to use inconceivable violence for financial gain are brought to justice.” Hairston and Stanley were each convicted of conspiracy to commit kidnapping and conspiracy to affect commerce by robbery. Hairston was convicted of counts relating to the first and second abduction, and Stanley was convicted of counts relating to the first abduction and acquitted on counts relating to the second abduction. Both defendants were acquitted of conduct relating to a third abduction. Evidence at trial established that from May 3, 2021, through August 26, 2021, the defendants planned and organized the kidnapping of three victims. Two of the victims were employees of check cashing businesses. According to trial testimony, defendants committed the crimes with the goal of robbing the check cashing businesses where two of the victims worked, and to steal cash and other items of value from the third victim. Evidence at trial also established that the defendants planned and organized the carjackings of two of the victims’ vehicles. According to trial testimony, the victims were surveilled prior to the abductions, including attaching tracking devices to their vehicles. The defendants then abducted the victims by posing as police officers by wearing police vests, police badges, and using a police-style light bar to stop the victims and their vehicles. Trial evidence revealed that the defendants brandished firearms, bound, and blindfolded each victim and forcibly put them into a vehicle operated by the defendants. At trial, the victims testified that the defendants used a blowtorch to burn two of the victims during the course of the kidnappings. As to the first victim, trial evidence established that, on May 5 to May 6, 2021, the defendants followed the victim from the check cashing business where she worked and, posing as law enforcement officers, used the police-style light bar to pull over her vehicle. According to trial testimony, defendants wore police vests and badges, and brandished firearms to remove the victim from her vehicle. Trial testimony further established that the defendants handcuffed the victim’s hands behind her back, zip-tied her feet, blindfolded her by placing a mask and duct tape around her face, and forcibly placed her into the rear of a vehicle operated by the defendants. While driving with the victim, defendants Hairston and Stanley, burned the victim with a blowtorch in an attempt to obtain information from her to access the check cashing business where she worked, with the intent to remove all of the cash from the business. As to the second victim, trial evidence established that, on May 15 to 16, 2021, Hairston and others approached the victim in his vehicle in Edgewood, Maryland. Trial evidence proved that the Hairston again used a police-style light bar to pull over the second victim. Wearing police vests and badges, the evidence revealed that Hairston kidnapped the second victim and forcibly placed him into the rear of a vehicle operated by the conspirators. After placing a mask over his face and duct-taping his face and stealing his vehicle, the second victim was burned with a blow torch in an effort to obtain cash and other items from him. The defendants each face a maximum sentence of life in prison for the kidnapping conspiracy and for each count of kidnapping; a maximum of 20 years in federal prison for the robbery conspiracy and for each count of attempted robbery; a maximum of 15 years in federal prison for each count of carjacking. Hairston also faces a mandatory minimum sentence of seven years in federal prison and up to life in prison, consecutive to any other sentence imposed, for using, carrying, and brandishing a firearm during and in relation to a crime of violence relating to the first abduction. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Brendan A. Hurson has not set a date for sentencing. Davonne Tramont Dorsey previously pled guilty to his role in the offenses, and sentencing is scheduled for August 22, 2024. U.S. District Judge Brendan A. Hurson has scheduled sentencing for Dorsey for August 22, 2024, at 10:00 a.m. Franklin Jay Smith also previously pled guilty to his role in the offenses. Judge Hurson has not set a date for sentencing for Smith. 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. U.S. Attorney Barron commended the FBI, the Baltimore Police Department, the Baltimore County Police Department, the Harford County Sheriff’s Office, and the Harford County State’s Attorney’s Office for their work in the investigation and prosecution. Assistant U.S. Attorneys Paul E. Budlow and Spencer Todd of the Civil Rights and Special Victims Section are prosecuting this case. U.S. Attorney Barron also commended the work of the office’s professional staff, including the victim-witness unit, for their work on this difficult case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach . # # #


title: Pharmacy Owner And Physician Charged With Illegally Diverting Oxycodone For Cash

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Frank A. Tarentino III, the Special Agent in Charge of the New York Division of the Drug Enforcement Administration (“DEA”); Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”); James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”); and Thomas Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of Complaints charging Feroze Nazirbage, a pharmacy owner, and Mordechai Bar, a physician, with illegally diverting oxycodone and other controlled substances. Both NAZIRBAGE and BAR were arrested today and will be presented tomorrow in White Plains federal court. U.S. Attorney Damian Williams said: “As alleged, Dr. Mordechai Bar and Feroze Nazirbage breached the trust that was placed in them to prescribe and dispense controlled substances only for legitimate medical purposes. They allegedly used their positions as healthcare professionals as a cover for what amounted to no more than common drug dealing operations. We will not tolerate the illegal sale of oxycodone and other addictive substances into the community, whether those sales take place on the street corner, at a doctor’s office, or behind a pharmacy counter.” DEA Special Agent in Charge Frank A. Tarentino III said: “The arrests today of Doctor Mordechai Bar and pharmacy owner Feroze Nazirbage are the result of the DEA’s commitment in pursuing those individuals who allegedly exacerbate the ongoing opioid crisis. As alleged, these two healthcare professionals, who illegally diverted the highly addictive oxycodone for cash had a responsibility of protecting patients’ lives, not destroying them. The DEA will relentlessly pursue those individuals responsible for putting profits and greed over the health of their patients.” HHS-OIG Special Agent in Charge Naomi Gruchacz said: “This physician and pharmacy owner are alleged to have illegally distributed controlled substances, which is behavior that could contribute to the ongoing opioid epidemic. HHS-OIG works with our law enforcement partners to ensure that individuals involved in fraud schemes that exploit federal health care programs and threaten patient safety are held accountable.” FBI Assistant Director in Charge James Smith said: “In exchange for financial compensation, Feroze Nazirbage and Mordechai Bar, a pharmacy owner and physician, respectively, allegedly conspired to distribute controlled substances – including oxycodone – without a legitimate prescription or patient medical examination. Failing their ethical duty to do good, the defendants allegedly abused their positions in healthcare by serving as suppliers for a highly addictive narcotic while greedily pocketing the rewards. With assistance from our law enforcement partners, today’s charges reflect the FBI’s intolerance of those who selfishly jeopardize the health of others, especially those entrusted with prioritizing and preserving the wellness of our city.” IRS-CI Special Agent in Charge Thomas Fattorusso said: “Nazirbage and Bar went against all medical ethics and broke the law with their alleged dealing of oxycodone, a highly addictive drug. Law enforcement understands the continued need to stop the flow of this drug getting into hands with no medical need, and we remain steadfast in working investigations to arrest those who prey on the vulnerable.” As alleged in the two Complaints filed on May 30, 2024, in White Plains federal court and unsealed today: [1] Oxycodone, a Schedule II narcotic, is a highly addictive opioid analgesic that is used to treat severe and chronic pain conditions, such as post-operative pain, severe back and orthopedic injuries, as well as pain associated with certain forms of cancer and other terminal illnesses. Oxycodone prescriptions are in high demand and have significant cash value to drug dealers. The street value of oxycodone depends on the number of milligrams of oxycodone in each tablet, and in and around the New York City area, each milligram of oxycodone roughly translates to around $1 in street value. NAZIRBAGE is associated with multiple pharmacies in and around New York City, including F&N Pharmacy, of which he is the president, and QV Pharmacy, where he has been observed working and directing customers. From at least about December 2022 up to the date of the Complaint, NAZIRBAGE has conspired with others to dispense or distribute oxycodone and other controlled substances, in violation of the law, in exchange for cash. In addition to filling prescriptions that he knew were not issued for a legitimate medical purpose by a practitioner acting within the usual course of professional practice, NAZIRBAGE also repeatedly sold controlled substances to a customer without a prescription in what is commonly referred to as a “backdoor sale.” During one of those sales, NAZIRBAGE gave that customer a handwritten menu of various prescription drugs and their per-pill cost for future backdoor sales (pictured below): BAR is a physician whose practice is located in New Rochelle, New York. From at least in or about January 2023 up to the date of the Complaint, BAR conspired with others to provide prescriptions not issued for a legitimate medical purpose for oxycodone, amphetamine, and alprazolam to patients in exchange for cash payments. BAR issued those prescriptions without conducting medical examinations of the patients and, in many cases, without even speaking to or meeting with the patients. * * * NAZIRBAGE, 50, of Bellerose, New York, is charged with one count of conspiring to illegally dispense or distribute oxycodone and other controlled substances, which carries a maximum sentence of 20 years in prison, and 11 counts of dispensing or distributing oxycodone and other controlled substances, each of which carries a maximum sentence of 20 years in prison. BAR, 71, of Larchmont, New York, is charged with one count of conspiring to illegally dispense or distribute oxycodone and other controlled substances, which carries a maximum sentence of 20 years in prison, and 12 counts of dispensing or distributing oxycodone and other controlled substances, each of which carries a maximum sentence of 20 years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding efforts of the DEA, HHS-OIG, the FBI, and IRS-CI. He also thanked the DEA Task Force Officers from the Yonkers Police Department, the Westchester County Police Department, the Putnam Sheriff Department, the Orangetown Police Department, and the Rockland Seriff Department. He added that the investigation is ongoing. Any individuals who believe they have information that may be relevant to this investigation should contact DEA Victim/Witness Coordinator James Lee at James.H.Lee@dea.gov and/or by calling (646) 529-4042. This effort is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The prosecution is being handled by the Office’s White Plains Division. Assistant U.S Attorneys David A. Markewitz and Kathryn Wheelock are in charge of the prosecution. The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Complaints and the description of the Complaints set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Chronic Disease Management Provider to Pay $14.9M to Resolve Alleged False Claims

component: Civil Division

body_text: Bluestone Physician Services of Florida LLC, Bluestone Physician Services, P.A. and Bluestone National LLC, operating in Florida, Minnesota and Wisconsin, respectively, have agreed to pay $14,902,000 to resolve allegations that they knowingly submitted claims for certain Evaluation and Management (E&M) codes for services related to the management of chronic care patients in assisted living and other care facilities that were not provided in conformity with applicable Medicare, Medicaid and TRICARE requirements. “Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated claims.” The settlement resolves allegations that, during the period from Jan. 1, 2015, through Dec. 31, 2019, Bluestone knowingly submitted claims for two E&M codes, the domiciliary rest home visit code for established patients (99337) and the chronic care management code (99490), that did not support the level of service provided. The federal government’s share of the settlement is $13,842,482 and $1,059,518 will be paid to the States of Florida and Minnesota. “Fraudulent billing undermines the integrity of government healthcare programs and diminishes legitimate services and resources for Minnesotans,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Healthcare companies that institute a practice of upcoding and unnecessary billing will be held accountable for their misconduct.” “The submission of false claims to Medicare for chronic care services will not be tolerated in the Middle District of Florida,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This resolution sends a message to the provider community and to our district that we will actively investigate and prosecute this kind of conduct whenever it appears.” “When health care providers submit false claims to taxpayer-funded federal health care programs, including inappropriately inflating claims to boost profits, the public’s trust in our nation’s medical providers and the integrity of federal health care programs are put at risk," said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office. “We will continue to work together with our law enforcement partners to ensure that those who engage in conduct as alleged in this case are held accountable. Furthermore, the OIG’s five-year compliance agreement is designed to ensure that the alleged behavior will not be repeated.” In connection with the settlement, Bluestone has entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG, which requires Bluestone, among other obligations, to establish and maintain a compliance program meeting certain requirements and to submit to an Independent Review Organization’s review of Bluestone’s Medicare claims to determine whether such claims were medically necessary, appropriately documented, and correctly coded. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lisa Loscalzo, the former General Manager for Bluestone’s Florida market. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Loscalzo v. Bluestone Physician Services of Florida, Bluestone Physician Services, P.A., Bluestone National, LLC et al. , 20-cv-295-FtM-38NPM (M.D. Fla). The civil settlement also includes the resolution of related allegations investigated by the U.S. Attorney’s Office for the District of Minnesota. Ms. Loscalzo will receive $2,831,380 in connection with the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of Minnesota and the Middle District of Florida, with assistance from HHS-OIG, the Defense Criminal Investigative Service and FBI. The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorneys Erin Colleran and Joanna Persio of the Civil Division’s Fraud Section, Assistant U.S. Attorneys Kristen E. Rau and Emily Peterson for the District of Minnesota and Assistant U.S. Attorney Kelley Howard-Allen for the Middle District of Florida handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Owner of Jay’s Immigration Consulting Practice, LLC sentenced to over 5 years in federal prison

component: USAO - Florida, Southern

body_text: MIAMI – On May 31, Jephte Bernard, 70, of Margate, Florida, was sentenced to 63 months in federal prison by U.S. District Judge Rodolfo A. Ruiz, after previously pleading guilty to mail fraud and making false statements. Bernard was sentenced for his massive and decades long immigration fraud scheme involving the fraudulent submission of asylum claims to U.S. Citizenship and Immigration Services (USCIS) from Jay’s Immigration Consulting Practice, LLC offices in Sunrise, Orange Park, and Bradenton, Florida. Upon release from custody, Bernard must serve three years of supervised release and forfeit $3,932,460.00 in illegally obtained proceeds. According to the court record, during the course of the fraud scheme, Bernard falsely portrayed himself as an attorney, pastor, Border Patrol Agent, and former employee and agent with Immigration and Customs Enforcement, who advertised immigration-related services to aliens in the United States, family members and friends of aliens who were in the United States, and domestic family members and friends of aliens who were abroad, all of whom were in need of assistance for immigration-related matters before USCIS. Bernard targeted Spanish-speaking immigrants from Central and South America, as well as Haitian-creole speaking immigrants, by fraudulently representing himself as an attorney licensed to practice law in the United States and advertised his services and expertise in a number of ways, including through the use of business cards, print media, storefront decals, and word of mouth. Bernard gave false, inaccurate, and incomplete legal and immigration advice to client-victims in order to induce them to retain his services and those of Jay’s Immigration Services and prepared and filed various immigration applications and petitions, including Form I-589’s ( Application for Asylum and Withholding of Removal) which he knew contained false statements, including false biographical information, false residential addresses, and false preparer names, all without the victim applicant’s knowledge and consent. As a result of this fraudulent immigration scheme, Bernard defrauded over 1,000 vulnerable victims, and in the process, earned more than $3.9 million dollars in fraudulent proceeds. U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Division, and Miami Asylum Director Varsenik Papazian for USCIS announced the sentences imposed by Judge Ruiz. HSI Fort Lauderdale and USCIS Miami Asylum Office Fraud Detection and National Security Directorate (FDNS) investigated the case. Assistant U.S. Attorney Marc Anton prosecuted the case. Assistant U.S. Attorney Sara Klco handled asset forfeiture. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 23-CR-60195. ###


component: USAO - Florida, Middle

body_text: Note: View the settlement here. WASHINGTON – Bluestone Physician Services of Florida LLC, Bluestone Physician Services, P.A. and Bluestone National LLC, operating in Florida, Minnesota and Wisconsin, respectively, have agreed to pay $14,902,000 to resolve allegations that they knowingly submitted claims for certain Evaluation and Management (E&M) codes for services related to the management of chronic care patients in assisted living and other care facilities that were not provided in conformity with applicable Medicare, Medicaid and TRICARE requirements. “Improperly billing federal health care programs depletes valuable government resources used to provide medical care to millions of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue health care providers that defraud the taxpayers by knowingly submitting inflated claims.” The settlement resolves allegations that, during the period from Jan. 1, 2015, through Dec. 31, 2019, Bluestone knowingly submitted claims for two E&M codes, the domiciliary rest home visit code for established patients (99337) and the chronic care management code (99490), that did not support the level of service provided. The federal government’s share of the settlement is $13,842,482 and $1,059,518 will be paid to the States of Florida and Minnesota. “Fraudulent billing undermines the integrity of government healthcare programs and diminishes legitimate services and resources for Minnesotans,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “Healthcare companies that institute a practice of upcoding and unnecessary billing will be held accountable for their misconduct.” “The submission of false claims to Medicare for chronic care services will not be tolerated in the Middle District of Florida,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This resolution sends a message to the provider community and to our district that we will actively investigate and prosecute this kind of conduct whenever it appears.” “When health care providers submit false claims to taxpayer-funded federal health care programs, including inappropriately inflating claims to boost profits, the public’s trust in our nation’s medical providers and the integrity of federal health care programs are put at risk," said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office. “We will continue to work together with our law enforcement partners to ensure that those who engage in conduct as alleged in this case are held accountable. Furthermore, the OIG’s five-year compliance agreement is designed to ensure that the alleged behavior will not be repeated.” In connection with the settlement, Bluestone has entered into a five-year Corporate Integrity Agreement (CIA) with HHS-OIG, which requires Bluestone, among other obligations, to establish and maintain a compliance program meeting certain requirements and to submit to an Independent Review Organization’s review of Bluestone’s Medicare claims to determine whether such claims were medically necessary, appropriately documented, and correctly coded. The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Lisa Loscalzo, the former General Manager for Bluestone’s Florida market. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Loscalzo v. Bluestone Physician Services of Florida, Bluestone Physician Services, P.A., Bluestone National, LLC et al. , 20-cv-295-FtM-38NPM (M.D. Fla). The civil settlement also includes the resolution of related allegations investigated by the U.S. Attorney’s Office for the District of Minnesota. Ms. Loscalzo will receive $2,831,380 in connection with the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of Minnesota and the Middle District of Florida, with assistance from HHS-OIG, the Defense Criminal Investigative Service and FBI. The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorneys Erin Colleran and Joanna Persio of the Civil Division’s Fraud Section, Assistant U.S. Attorneys Kristen E. Rau and Emily Peterson for the District of Minnesota and Assistant U.S. Attorney Kelley Howard-Allen for the Middle District of Florida handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Texas Man Charged with Federal Hate Crime for Making Threats Against Employees of Sikh Organization

component: Civil Rights Division

body_text: A Texas man has been charged with a federal hate crime and for making interstate threats against the employees of a Sikh nonprofit organization. Bhushan Athale, 48, of Dallas, was charged by complaint with one count of interfering with federally protected activities through the threatened use of a dangerous weapon and one count of transmitting an interstate threat to injure another person. According to the criminal complaint, on or about Sept. 17, 2022, Athale called the main number of an organization that advocates for the civil rights of Sikh individuals within the United States. Over the next hour, Athale left seven voicemails expressing extreme hatred toward Sikh individuals working at this same organization and threatening to injure or kill these individuals with a razor. Athale’s voicemails, which were filled with violent imagery and obscenity, contained references to places, people and tenets that are particularly significant within the Sikh religion. Among other things, Athale stated his intention to “catch” the Sikhs at the organization, forcibly “shave” the “top and bottom hair” of these individuals, use a “razor” to forcibly “cut” these individuals’ hair and “make” them bald, forcibly “make” them smoke and eat tobacco and “show [them] the heaven.” In March, Athale again called the same Sikh organization and left two more voicemails. In these voicemails, Athale again used violent imagery to express his hatred toward Sikhs as well as Muslims, suggesting, among other things, that the Indian Government and Mumbai Police should “catch them and beat their ass” and “f*ck these rascals’ mothers.” The investigation reflects that Athale has a long history of making religious-based comments and threats, such as when he previously used a professional networking site to express to a former co-worker that he “hate[d] Pakistan” and “hate[d] Muslims,” and he told the co-worker “I hate you, I just don’t know how to kill your whole family including you? Tell me??? I will figure it out […] Probably I will hire a Jew, they will be most happy.” If convicted, Athale faces a maximum penalty of 10 years in prison for interfering with federally protected activities and a maximum penalty of five years in prison for transmitting an interstate threat. Both charges also carry a penalty of up to a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Special Agent in Charge Wayne A. Jacobs of the FBI Philadelphia Field Office made the announcement. The FBI Philadelphia Field Office investigated the case. Assistant U.S. Attorneys Sara A. Aliabadi and Jason M. Richardson for the District of New Jersey and Trial Attorney Eric Peffley of the Justice Department’s Civil Rights Division are prosecuting the case. A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.