title: Former Physician to Pay More than $1.1 Million to Resolve Allegations He Performed Medically Unnecessary Procedures

component: USAO - Washington, Eastern

body_text: Spokane, WA – Former physician Jason A. Dreyer has agreed to pay $1,174,849 to resolve allegations that he performed medically unnecessary neurosurgery procedures that Dreyer caused to be billed to Medicare, Medicaid, and other federal health care programs, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. The joint settlement announced today is between Dreyer, the United States, and the State of Washington, which administers Washington’s Medicaid program using a combination of state and federal funding. Between 2013 and 2018, Dreyer was employed as a neurosurgeon at Providence St. Mary’s Medical Center, a hospital in Walla Walla, Washington, owned and operated by Providence Health & Services Washington (Providence). In April 2022, United States Attorney Waldref announced that Providence agreed to pay $22,690,458 to resolve allegations that it fraudulently billed Medicare, Medicaid, and other federal health care programs for medically unnecessary neurosurgery procedures performed by Dreyer and another former Providence neurosurgeon. In the Providence settlement agreement, Providence admitted that, while Dreyer was employed at Providence St. Mary’s, Providence received concerns about Dreyer, including concerns from medical staff that Dreyer was endangering the safety of his patients. As admitted in the Providence settlement agreement, notwithstanding these concerns, Providence permitted Dreyer to resign without reporting him to the National Practitioner Data Bank or the Washington State Department of Health. “Ensuring that surgical procedures are medically appropriate and properly performed is critical to building safe and strong communities here in the Eastern District of Washington,” said United States Attorney Waldref. “Patients with spinal injuries and back pain deserve top-notch care from a doctor who puts patients and their safety first. Significantly, as part of the settlement, Dr. Dreyer has agreed to voluntarily exclude himself from federal health care programs nationwide for at least nine years. This settlement will therefore make sure that patients, in Eastern Washington and nationwide, are protected from medically unnecessary and unsafe procedures for many years to come.” After resigning from Providence, between May 2019 and November 2021, Dreyer was employed by Multicare Health Systems (Multicare) to provide neurosurgery services at Deaconess Hospital and Multicare Rockwood Clinic, both in Spokane, Washington. Both Providence and Multicare paid Dreyer based on a productivity metric through which he was paid more for performing more surgeries and for surgical procedures of greater complexity. The settlement announced today resolved allegations that, while employed by Multicare, Dreyer caused false and fraudulent billing to Medicare, Medicaid, and other federal health care programs by performing medically unnecessary procedures that did not meet requirements for federal and state reimbursement. As part of the settlement, Dreyer entered into an exclusion agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). As part of this agreement, Dreyer agreed to be excluded from participating in Medicare, Medicaid, and other federal health care programs nationwide for at least nine years before he can request reinstatement from HHS. "Providers have a responsibility to ensure that patient needs and safety, not illegitimate personal financial gain, drive medical decisions," said Steven J. Ryan, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "As this settlement demonstrates, HHS-OIG is committed to protecting federal health care programs from fraudulent billing and ensuring that providers focus on providing medically necessary care." "The announced settlement and exclusion agreements are constructive steps in holding Dr. Dreyer responsible for repeatedly violating his patients' trust by valuing financial gain more than patient care and safety," said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. "DCIS remains committed to working with its law enforcement partners in protecting the integrity of the DoD's TRICARE healthcare program, especially in situations involving allegations of potential patient harm." “VA’s Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds." “I appreciate our strong partnership with U.S. Attorney Waldref’s office,” said Washington State Attorney General Bob Ferguson. “I look forward to continuing our work together to protect Medicaid dollars for those who need them.” United States Attorney Waldref continued “I want to express special appreciation for our close collaboration and partnership with the Washington Medicaid Fraud Control Division and for the exceptional investigative work performed by HHS-OIG, Office of Personnel Management OIG, Defense Criminal Investigative Service, and the Department of Veterans Affairs OIG. We will continue to work closely with our state and federal law enforcement partners to hold health care fraudsters accountable and to protect patient health and safety in the Eastern District of Washington.” The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, the Defense Criminal Investigative Service, Seattle Field Office; the Office of Personnel Management, Office of Inspector General, Western Regional Office, and the United States Department of Veterans Affairs Office of Inspector General, Spokane Resident Agency. The United States Attorney’s Office would also like to express special thanks and appreciation for the logistical support provided by the Walla Walla Police Department during the investigation. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States. final_fully_executed_dreyer_settlement_agreement.pdf


title: Justice Department Observes National Crime Victims’ Rights Week With Events Throughout the Country

body_text: Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announces National Crime Victims’ Rights Week (NCVRW), which will be observed from April 23–29, 2023. The federal Office for Victims of Crime (OVC) leads communities throughout the country in annual observances of National Crime Victims’ Rights Week by raising awareness of victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme is “Survivor Voices: Elevate. Engage. Effect Change.” During this week, the Department of Justice recognizes the individuals and groups whose advocacy has propelled the victims’ rights movement forward for the past half century, inspiring in victims and their loved ones a feeling of hope for progress, justice, and healing. Partner organizations are committed to engaging with victims of crime; learning from their lived experiences; amplifying their voices; and fostering an environment where they are heard, believed, and supported. The United States Attorney’s Office for the Eastern District of Washington seeks to raise awareness about crime victims’ issues and rights and introduce our communities to the important resources and services available. This matters because, according to a report from the Bureau of Justice Statistics, in 2021, there were more than 4.6 million violent victimizations and 11.7 million property crimes, the latest year for which such information is available. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime and the Department of Justice is proud to continue this important annual recognition. U.S. Attorney Waldref reaffirmed the commitment of the United States Attorney’s Office for the Eastern District of Washington to supporting the rights of crime victims. “Our mission is to secure justice for the victims of crime and to prosecute those who have done them harm. To do this, we work closely with our law enforcement partners to address criminal activity in all of our communities, and we engage with victims’ advocacy organizations to support survivors and reduce the pain that so many victims of crime continue to endure.” OVC and the United States Attorney’s Office for the Eastern District of Washington encourage continued participation in victim-related observances throughout the year. For additional information on how to support victims of crime, visit OVC’s website at www.ovc.gov or contact the U.S. Attorney’s Office for the Eastern District of Washington’s Victim Witness Program at (509) 353-2767.


title: Unlicensed Vancouver, Washington, tax preparer pleads guilty to aiding and assisting with preparing false tax returns

component: USAO - Washington, Western

body_text: Seattle – The owner of a Vancouver, Washington business that sought to assist immigrants with a variety of services has pleaded guilty to tax fraud charges, announced U.S. Attorney Nick Brown. Saul Valdez was an unlicensed tax preparer who led his immigrant customers to believe he was filling out their tax forms correctly. Instead, from 2016 through 2018, Valdez inserted a variety of false deductions and expenses on tax returns, lowering the customers’ tax obligations. Valdez faces up to three years in prison when sentenced by U.S. District Judge Benjamin H. Settle on August 28, 2023. “Mr. Valdez operated a business providing services to primarily non-English speaking clients, who had little understanding of the U.S. tax system,” said U.S. Attorney Nick Brown. “Rather than truly assist them, his false deductions, expenses and credits put them at risk of owing back taxes and penalties, not to mention the stress of contact from the IRS.” According to the plea agreement, Valdez operated Conexion Latina, and used programs such as TaxAct and TurboTax to prepare clients’ taxes. For tax year 2017, Valdez admits claiming false and fraudulent expenses, donations, and credits on 36 different tax returns. The tax loss on those 36 returns is $54,045. That is the amount of restitution Valdez has agreed to pay. Using statistical sampling of 50 of some 2000 returns prepared by Valdez from 2016 through 2018, Valdez admits that the total tax loss for his fraud is $1,293,921. Aiding and Assisting in the Preparation and Presentation of a False and Fraudulent Return is punishable by up to three years in prison. Prosecutors have agreed to cap their sentencing recommendation at 30 months in prison. The case is being investigated by Internal Revenue Service Criminal Investigations (IRS-CI). The case is being prosecuted by Assistant United States Attorney Kristine Foerster.


title: Passaic County Man Charged with Shooting Gun During Two Pharmacy Robberies

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Passaic County, New Jersey, man was arrested in connection with two armed robberies of pharmacies for prescription medication, U.S. Attorney Philip R. Sellinger announced today. Antonio Rivera, 46, of Paterson, New Jersey, is charged by complaint with one count of interference with commerce by robbery, one count of attempted interference with commerce by robbery, and one count of using, carrying, and discharging a firearm during and in relation to a crime of violence. Rivera made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was detained. According to the complaint and statements made in court: In February and April 2023, Rivera robbed and attempted to rob two pharmacies in Paterson and Passaic, New Jersey. During these robberies, Rivera fired his gun and pointed it at numerous victims. Ballistics evidence shows that the same firearm was used in both robberies. On Feb. 8, 2023, Rivera robbed a Paterson pharmacy at gunpoint, shooting one time and demanding Percocet, Morphine, and Oxycodone pills. One pharmacy employee placed mediation bottles inside Rivera’s backpack. Rivera discharged another round, after which another pharmacy employee gave Rivera cash from the cash register. On April 5, 2023, Rivera attempted to rob a Passaic pharmacy at gunpoint, raising a handgun to a pharmacy employee’s head and demanding that the employee put money from the cash register in a bag. When the employee refused, Rivera demanded pills while pointing the handgun at other pharmacy employees and fired a shot before fleeing the pharmacy through the rear. The interference with commerce by robbery and attempted interference with commerce by robbery counts each carry a maximum potential penalty of 20 years in prison. The discharging of a firearm during a crime of violence count carries a maximum of life in prison and mandatory minimum sentence of 10 years in prison, which must run consecutive to any other prison term. Each count also carries a potential $250,000 fine. U.S. Attorney Sellinger credited the FBI Newark Violent Incident Crimes Task Force, Garrett Mountain Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; the Paterson Police Department, under the direction of Interim Officer in Charge, Maj. Frederick P. Fife; members of the Passaic Police Department, under the direction of Chief Luis A. Guzman; the Clifton Police Department, under the direction of Chief Thomas Rinaldi; and the Bergen County Prosecutor’s Office, under the direction of Prosecutor Mark Musella, for their assistance. The government is represented by Assistant U.S. Attorney Sophie Kaiser of the General Crimes Unit in Newark. The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. rivera.complaint.pdf


title: Civil Complaint Alleges Millions of Dollars in Medicaid Fraud

component: USAO - Rhode Island

body_text: PROVIDENCE, R.I. – The United States and the State of Rhode Island announced today that they have intervened in a civil lawsuit against Journey to Hope, Health, and Healing, Inc. and its then-CEO, Kenneth L. Richardson, Jr., filing a complaint alleging that these defendants billed the Rhode Island Medicaid program for millions of dollars for substance use disorder treatment services that the Defendants knowingly and routinely failed to provide to their patients who needed these services, and subsequently falsified records in order to make it appear that required services were being provided, according to United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha. The Complaint in Intervention under the federal and Rhode Island state False Claims Acts and other theories of civil liability unsealed by a federal judge late this afternoon, lays out the governments’ allegations that Journey, despite holding itself out as a certified and accredited opioid treatment provider, routinely failed to provide treatment plans and adequate counseling for patients for whom they were providing methadone, while at the same time collecting over $15 million from the federal-and-state-administered Medicaid program during the period between January 2015 and July 2021. The complaint further alleges that in preparation for upcoming reviews by accreditation officials and other auditors, Journey personnel were instructed by management to falsify records in order to make it appear that the missing services had been provided. The United States and the State of Rhode Island allege that over half of amount claimed by Journey during this time period was false, and the government is seeking to recover up to three times the amount paid as a result of the alleged false claims, plus penalties. As alleged in the governments’ complaint, in many cases, Medicaid beneficiaries were receiving methadone from Journey for years without any required individualized treatment plan in place, and that in some cases where plans did exist, they were not updated for years. Journey is further alleged to have failed to provide increased services or attention to patients who tested positive for illicit substances, including fentanyl, and to have maintained patient caseloads for counselors at a volume so high that it was physically impossible to offer required counselling services. Finally, the company is alleged to have altered and backdated documents in order to make it appear that updated individualized treatment plans were in place and that the required counseling sessions were occurring when, in fact, they were not. Whistleblowers Sara Quaresma and Michael Delmonico, who are former employees of Journey, filed an action in federal court in October of 2020 under the qui tam provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States and/or the State and to share a portion of any recovery; such a filing is initially made under seal. The Act permits federal and state governments to intervene and take over the lawsuit, as has occurred here, in part, by filing this complaint in intervention. The case was unsealed on Monday following the governments’ filing. The case is being litigated in U.S. District Court by Assistant U.S. Attorneys Bethany N. Wong and Kevin Love Hubbard, and Rhode Special Assistant Attorney General Genevieve M. Allaire Johnson. The matter has been investigated by the Office of Inspector General for the Department of Health and Human Services. ###


title: St. Louis Woman Sentenced to Prison for Loan Fraud

component: USAO - Illinois, Southern

body_text: BENTON, Ill. – A U.S. District judge sentenced a St. Louis woman to 12 months and one day in prison after she admitted to visiting Metro East credit unions and using fake identification documents to take out loans. Toneka D. Prince, 20, pled guilty to one count of falsely obtaining property owned by a financial institution and one count of aggravated identity theft. Prince was ordered to pay $9,800 in restitution, and after completing her prison sentence, she will serve two years of supervised release. “Stealing identities, taking out loans in someone else’s name and defrauding a financial institution are all serious crimes, and luckily, the defendant was apprehended,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate our federal and local law enforcement partners for their efforts to bring Ms. Prince to justice.” “This type of fraudulent activity can be devastating to hardworking citizens and their families, and we appreciate our partnership with the U.S. Attorney’s Office to hold individuals accountable for their actions,” said USSS Resident Agent in Charge Stephen Webster. “The U.S. Secret Service remains committed to identifying, investigating, and pursuing those who attempt to enrich themselves through fraudulent means.” According to court documents, Prince engaged in a scheme to defraud a credit union using identification documents of two victims in her attempts to take out loans. The identity-theft victims’ information would first be used to fill out a loan application line. Once the loan was approved, Prince would enter the credit union and pretend to be the victim in order to collect the money. One June 24, 2022, Prince visited the First Community Credit in Glen Carbon to collect the cash from the approved loan. She presented a fake Illinois driver’s license with a victim’s real identifiable information and successfully obtained a cash loan of $9,800. She was not authorized to use the individual’s identity. On June 28, 2022, she went to the First Community Credit Union in Fairview Heights and signed one victim’s name on a loan application for $9,900. In the application, Prince used a fake temporary Illinois driver’s license and fake Spire gas bill with the victim’s real social security number and date of birth included. Once again, she was not authorized to use the victim’s identity. Law enforcement officers apprehended Prince at the credit union in Fairview Heights. U.S. Secret Service led the investigation with contributions from the Glen Carbon and O’Fallon police departments. Assistant U.S. Attorney Peter T. Reed prosecuted the case.


title: Justice Department Secures $2 Million Agreement in Sexual Harassment Lawsuit Against Alabama Sheriff

component: Civil Rights Division

body_text: The Justice Department announced today that it has reached a settlement agreement with the Sheriff of Mobile County, Alabama, to resolve the department’s lawsuit filed in the U.S. District Court for the Southern District of Alabama alleging violations of Title VII of the Civil Rights Act of 1964 (Title VII). The settlement agreement resolves the department’s allegations that female corrections officers at the Mobile County Metro Jail were regularly subjected to severe and pervasive sexual harassment in the workplace by male inmates and that, despite the employees’ numerous reports to jail supervisors objecting to the harassment, the sheriff’s office did not take the complaints seriously and failed to take prompt and effective action to remedy this harassing conduct. The department’s lawsuit also alleges that male inmates harassed female employees assigned to the jail’s housing units by frequently exposing their genitals to and masturbating at them, and that inmates also directed sexual slurs, sexual propositions, threats of sexual violence and sexually degrading comments toward female employees. “Employers must take appropriate action to protect their employees from sexual harassment in the workplace,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Just like any other workplace, jails must take steps necessary to ensure that female employees are not subject to a sexually hostile work environment in any form.” Under the terms of the settlement agreement, if approved by the court, the sheriff will pay $2.02 million into a settlement fund that will be used to compensate those women who were harmed by the employment practices challenged by the United States. The agreement also requires the sheriff to develop a comprehensive inmate sexual misconduct policy; train all jail employees on the new policy related to inmate sexual misconduct; maintain a dedicated housing area to house inmates found guilty of sexual misconduct; and appoint an Inmate Sexual Misconduct Disciplinary Hearing Officer to monitor and track compliance with the new inmate sexual misconduct policy. This lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative. The initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach and development of effective remedial measures to address and prevent future sex discrimination and harassment. Trial Attorneys Taryn Wilgus Null, Alicia Johnson, Juliet Gray, Emily Given, Catherine Sellers, Sharion Scott and Julia Quinn of the Civil Rights Division’s Employment Litigation Section prosecuted the case. The full and fair enforcement of Title VII is a top priority of the Civil Rights Division’s Employment Litigation Section. Additional information about the Civil Rights Division and the Employment Litigation Section is available on its websites www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section .


title: IRB Brasil Agrees to Pay Shareholders $5M in Connection with Securities Fraud Scheme

component: Criminal Division

body_text: A publicly traded Brazilian reinsurance company, IRB Brasil Resseguros SA, aka IRB Brasil RE (IRB), has entered into a non-prosecution agreement (NPA) with the Justice Department and agreed to pay $5 million in victim compensation to resolve the government’s investigation into a securities fraud scheme to fraudulently prop up IRB’s stock price by spreading false information that U.S. investment firm Berkshire Hathaway Inc. had invested in the company. IRB trades on Brazil’s B3 exchange and has shareholders around the world, including in the United States. As it admitted in the NPA, IRB, through its former CFO, Fernando Passos, executed the fraud scheme beginning in February 2020 after an investment company published a report questioning the accuracy of IRB’s financial statements and announcing that the investment company had taken a short position against IRB’s stock. IRB’s stock price dropped in the wake of the report. In response, Passos developed and executed a scheme to mislead shareholders and the investing public by disseminating and causing to be disseminated materially false information that Berkshire Hathaway had invested in IRB, despite knowing that Berkshire Hathaway had not made any such investment. Passos circulated, and caused subordinate IRB investor relations employees to circulate, false materials to members of the press, analysts, and members of IRB’s board of directors to spread the false information regarding Berkshire Hathaway’s purported investment. News outlets in both Brazil and the United States began incorrectly reporting that Berkshire Hathaway had invested in IRB. Following the news coverage, on the evening of March 3, 2020, Berkshire Hathaway issued a press release stating that it was not currently, had never been, and had no intention of becoming a shareholder in IRB. On March 4, 2020, after Berkshire Hathaway’s press release, IRB’s stock price dropped precipitously, causing significant shareholder losses. As part of the NPA, IRB admitted that the facts described in the NPA constitute securities fraud. Under the terms of the NPA, IRB has agreed to continue cooperating with the Justice Department in other related investigations, to continue to implement a compliance and ethics program as set forth in the NPA, and to report to the department regarding the company’s remediation and implementation of the compliance measures as described in the NPA. Further, IRB has agreed to pay victim compensation of $5 million to shareholders who sold IRB stock on March 4, 2020. The department reached this resolution with IRB based on a number of factors, including, among others, the nature and seriousness of the offense conduct involving IRB’s former CFO, as well IRB’s cooperation and implementation of remedial measures. In addition, IRB and the department agreed that the total amount of losses to all shareholders who sold IRB stock on March 4, 2020, was significantly more than $5 million. However, despite agreeing that a larger amount otherwise would be appropriate based on the law and the facts, IRB made representations to the department that the company had an inability to pay a criminal monetary penalty and to cover the full loss to shareholders. Based on those representations, the department, with the assistance of a forensic accounting expert, conducted an independent inability-to-pay analysis, which determined that the payment of more than $5 million was reasonably likely to threaten the continued viability of IRB, which in turn may expose the company’s shareholders to a further risk of loss. Passos has been indicted and is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement. The USPIS is investigating the case. Trial Attorney Kate McCarthy of the Criminal Division’s Fraud Section is handling the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit: www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas . Victims can find case updates and additional information at www.justice.gov/criminal-vns/united-states-v-fernando-passos .


title: Salinas Man Indicted and Arrested for Child Exploitation

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico – On April 20, 2023, a federal grand jury returned an indictment charging Alexander Joel Rivera-Santos, 25, of Salinas, Puerto Rico, with possession and transportation of child sexual abuse material, announced W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. The arrest follows an investigation by Homeland Security Investigations (HSI) with the assistance of the Puerto Rico Police Bureau (PRPB) and the U.S. Attorney’s Office for the District of Puerto Rico. According to the indictment, from May 2021 through June 2022, Rivera-Santos knowingly possessed images of child pornography, including child pornography of a minor who had not attained 12 years of age, in violation of 18 U.S.C. § 2252A. As such, Rivera-Santos faces a mandatory minimum sentence of 5 years and a maximum of 20 years of imprisonment, if convicted. “The U.S. Attorney’s Office will continue to work with its law enforcement partners to aggressively investigate and prosecute persons who use technology to victimize children who are victims of child exploitation crimes,” said U.S. Attorney Muldrow. “Our HSI San Juan agents are collaborating relentlessly with agents from all over the nation to identify and prosecute with solid evidence all those who have the intent to damage the innocence of our children. They can try to hide in chat rooms or cyber spaces, but rest assured, we will find them,” said Rebecca C. González, Acting Special Agent in Charge of HSI San Juan. Rivera-Santos had his initial appearance before U.S. Magistrate Judge Marcos López and was ordered to remain temporarily detained at the Guaynabo Metropolitan Detention Center pending further proceedings. Assistant United States Attorney Emelina Agrait-Barreto, of the Child Exploitation and Immigration Unit, is in charge of the prosecution of this case. HSI is the principal investigative arm of DHS and a vital U.S. asset in combatting transnational crimes and threats. One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify and apprehend offenders, prevent transnational child sexual abuse and help make the internet a safer place for children. For more information about HSI’s efforts to protect children from online sexual abuse, visit https://www.ice.gov/topics/iGuardians. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: North Korean Foreign Trade Bank Rep Charged for  Role in Two Crypto Laundering Conspiracies

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Two federal indictments, unsealed today in the District of Columbia, charge a North Korean Foreign Trade Bank (“FTB”) representative for his role in money laundering conspiracies designed to generate revenue for the Democratic People’s Republic of Korea, through the use of cryptocurrency. A third indictment charges one of the co-conspirators in a separate scheme. The indictments were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General of the Criminal Division Kenneth A. Polite, Jr., and Special Agent in Charge Robert W. “Wes” Wheeler, Jr. of the FBI’s Chicago Field Office. Sim Hyon Sop (“Sim”), 39, a North Korean national, is charged with conspiring with three over-the-counter (“OTC”) traders, Wu HuiHui (“Wu”), 34, a Chinese national living in Jinan, Shandong, China; Cheng Hung Man (“Cheng”), 59, a Hong Kong British National (Overseas) living in Hong Kong, and an unknown user of the online moniker “live:jammychen0150” (“Chen”), to launder stolen cryptocurrency and use the funds to purchase goods through Hong Kong-based front companies for the benefit of North Korea. Sim directed these payments, which were made in U.S. dollars, through Chen. Chen then recruited Wu and Cheng, both of whom were OTC traders, to find sham front companies and facilitate the payments to avoid U.S. sanctions against North Korea. The second indictment alleges a conspiracy between Sim and various North Korean IT workers to launder proceeds of illegal IT development work. The IT workers gained employment at U.S. crypto companies using fake identities and then laundered their ill-gotten gains through Sim for the benefit of the North Korean regime, and in contravention of sanctions imposed against North Korea by the Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) and the United Nations. Those sanctions were imposed to impede the development of North Korea’s ballistic missiles, weapons production, and research and development programs. “Today’s indictments reveal North Korea’s continued use of various means to circumvent U.S. sanctions,” said U.S. Attorney Graves. “We can and will ‘follow the money,’ be it through cryptocurrency or the traditional banking system, to bring appropriate charges against those who would help to fund this corrupt regime.” “The charges announced today highlight the ways in which North Korean operatives have innovated their approach to evading sanctions by exploiting the technological features of virtual assets to facilitate payments and profits, and targeting virtual currency companies for theft,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We will continue to work to disrupt and deter North Korean actors and those who aid them by following the money on the blockchain and shining a light on their conduct.” “The growing popularity of virtual currencies has provided new and unique opportunities for criminals to engage in illicit transactions, but what has not changed is our commitment to investigating these crimes,” said Special Agent in Charge Wheeler. “I am proud of the work that the FBI and partners have accomplished in support of today's indictment.” Since 2017, as part of its cyber campaign, North Korean hackers have executed virtual currency-related thefts to generate revenue for the regime, including through the hacking of virtual asset services providers, such as virtual currency exchanges. A portion of the proceeds from those virtual currency theft and fraud schemes was sent to virtual currency address 1G3Qj4Y4trA8S64zHFsaD5GtiSwX19qwFv, which Sim and his OTC trader coconspirators used to fund payments for goods for North Korea. To generate revenue for the regime, North Korea also deploys IT workers to obtain illegal employment in the cryptocurrency industry. According to court documents, North Koreans apply for jobs in remote IT development work without disclosing that they are North Korean in order to circumvent sanctions. These IT workers bypass security and due diligence checks by using fake, or fraudulently obtained, identity documents and other obfuscation strategies to hide their true location from online payment facilitators and hiring platforms. The IT workers request payment for their services in virtual currency and then send their earnings back to North Korea via, among other methods, FTB representatives like Sim. ]A third indictment unsealed today in the District of Columbia separately charges Wu with operating an unlicensed money transmitting business. According to that indictment, Wu operated as an OTC trader on a U.S.-based virtual currency exchange without a license and conducted over 1,500 trades for U.S. customers, totaling over $800,000. A concurrent action was taken today by the Department of the Treasury, sanctioning Sim, Wu, and Cheng. The charge of conspiring to launder monetary instruments is punishable by a maximum of 20 years in prison. The charge of operating an unlicensed money transmitting business is punishable by a maximum of 5 years in prison. The investigation was conducted by the FBI’s Chicago Field Office. The case is being prosecuted by Trial Attorney Jessica Peck of the Justice Department’s National Cryptocurrency Enforcement Team (NCET), Assistant U.S. Attorneys Steven Wasserman and Christopher Tortorice of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section. Paralegal Specialists Brian Rickers and Angela De Falco and Legal Assistant Jessica McCormick provided valuable assistance. Significant assistance was also provided by the U.S. Attorney’s Office for the Central District of California, FBI’s Los Angeles Field Office, former IRS-Criminal Investigation Special Agent Chris Janczewski, and former FBI analyst Nick Carlsen. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: North Korean Foreign Trade Bank Representative Charged in Crypto Laundering Conspiracies

body_text: Two federal indictments were unsealed today in the District of Columbia charging a North Korean Foreign Trade Bank (FTB) representative for his role in separate money laundering conspiracies designed to generate revenue for the Democratic People’s Republic of Korea through the use of cryptocurrency. “The charges announced today respond to innovative attempts by North Korean operatives to evade sanctions by exploiting the technological features of virtual assets to facilitate payments and profits, and targeting virtual currency companies for theft,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “We will continue to work to disrupt and deter North Korean actors and those who aid them by following the money on the blockchain and shining a light on their conduct.” According to court documents, Sim Hyon Sop (Sim), 39, is charged with allegedly conspiring with over-the-counter (OTC) cryptocurrency traders to use stolen funds to buy goods for North Korea and for conspiring with North Korean IT workers to generate revenue through illegal employment at blockchain development companies in the United States. The first indictment involves a conspiracy between Sim and three OTC traders to launder stolen funds from virtual currency exchange hacks to make payments in U.S. dollars for goods on behalf of the North Korean government. The second involves a conspiracy between Sim and various North Korean IT workers to launder proceeds of illegal IT development work, where the IT workers gained employment at U.S. blockchain development companies using fake identities, and then laundered their ill-gotten gains through Sim for the benefit of the North Korean regime, and in contravention of sanctions imposed against North Korea by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the United Nations. Those sanctions were imposed to impede the development of North Korea’s ballistic missiles, weapons production, and research and development programs. “Today’s indictments reveal North Korea’s continued use of various means to circumvent U.S. sanctions,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “We can and will ‘follow the money,’ be it through cryptocurrency or the traditional banking system, to bring appropriate charges against those who would help to fund this corrupt regime.” According to court documents, North Korean national Sim, Chinese national Wu Huihu (Wu), Hong Kong British National (Overseas) Cheng Hung Man (Cheng), and the user of the online moniker live:jammychen0150 (“Jammy Chen”) conspired to launder stolen cryptocurrency and then used those funds to purchase goods through Hong Kong-based front companies on behalf of North Korea. Sim directed these payments, which were made in U.S. dollars, through “Jammy Chen.” “Jammy Chen” then recruited Wu and Cheng, both of whom were OTC traders, to find sham front companies and facilitate the payments to avoid U.S. sanctions against North Korea. “As criminals engage in new methods of exploiting and laundering cryptocurrency, the FBI will continue to relentlessly pursue them and bring them to justice,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “These individuals used their illicit criminal activity to aid the Democratic People's Republic of Korea. Today’s indictment demonstrates the power of strong investigative work and collaboration amongst partners in holding state operatives accountable.” Sim also allegedly conspired to launder funds generated by North Korean IT workers who obtained illegal employment in the tech and crypto industry. These IT workers used fake personas to get jobs, including jobs at U.S.-based companies, and then asked to be paid in cryptocurrencies, such as stablecoins like USD Tether (USDT) and USD Coin (USDC), which are pegged to the U.S. dollar. After receiving payment, they funneled their earnings back to North Korea through Sim. According to court documents, the Reconnaissance General Bureau (RGB) is North Korea’s primary intelligence and clandestine operations unit, known to have a cyber capability that has come to be known within the cybersecurity community as both Lazarus Group and Advanced Persistent Threat 38 (APT38). APT38 is a financially motivated North Korean regime-backed group responsible for conducting destructive cyber-attacks since at least 2014 to generate revenue for its ballistic missile and WMD programs. Specifically, these North Korean hackers have worked in concert to conduct cyber-attacks against victims located in the United States and around the world, including hacks against financial institutions and virtual asset service providers. North Korean actors have gained unauthorized access to these victim networks as part of their fraudulent scheme through a variety of means, including through spear-phishing messages designed to induce victims to download and execute malicious software developed by the hackers. Since 2017, as part of its cyber campaign, North Korean hackers have also executed virtual currency-related thefts to generate revenue for the regime, including through the hacking of virtual asset services providers, such as virtual currency exchanges. A portion of the proceeds from those virtual currency theft and fraud schemes was sent to virtual currency address 1G3Qj4Y4trA8S64zHFsaD5GtiSwX19qwFv, which Sim and his OTC trader coconspirators used to fund payments for goods for North Korea. To generate revenue for the regime, North Korea also deploys IT workers to obtain illegal employment in the cryptocurrency industry. According to court documents, North Koreans apply for jobs in remote IT development work without disclosing that they are North Korean. These IT workers bypass security and due diligence checks through the false or fraudulent use of identity documents and other obfuscation strategies, such as virtual private networks to hide their true location from online payment facilitators and hiring platforms. The IT workers request payment for their services in virtual currency and then send their earnings back to North Korea via, among other methods, FTB representatives such as Sim. A third indictment also unsealed today in the District of Columbia separately charges Wu with operating an unlicensed money transmitting business. According to court documents, Wu operated as an OTC trader on a U.S.-based virtual currency exchange and conducted over 1,500 trades for U.S. customers without obtaining the necessary licenses. The FBI Chicago Field Office and FBI’s Virtual Assets Unit (VAU) are investigating the cases. The charge of conspiring to launder monetary instruments is punishable by a maximum of 20 years in prison. The charge of operating an unlicensed money transmitting business is punishable by a maximum of five years in prison. Trial Attorney Jessica Peck of the Justice Department’s National Cryptocurrency Enforcement Team (NCET) and Computer Crime and Intellectual Property Section, Assistant U.S. Attorneys Steven Wasserman and Christopher Tortorice for the District of Columbia, and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the cases. Paralegal Specialists Brian Rickers and Angela De Falco and Legal Assistant Jessica McCormick provided valuable assistance. Significant assistance was also provided by the U.S. Attorney’s Office for the Central District of California, FBI Los Angeles Field Office, Criminal Division’s Money Laundering and Asset Recovery Section, former Special Agent Chris Janczewski of the IRS Criminal Investigation, and former FBI analyst Nick Carlsen. The NCET was created in October 2021 to combat the growing illicit use of cryptocurrencies and digital assets. Under the supervision of the Criminal Division, the NCET conducts and supports investigations into individuals and entities that enable the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also sets strategic priorities regarding digital asset technologies, identifies areas for increased investigative and prosecutorial focus, and leads the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Virginia Man Pleads Guilty to Trafficking Turtles

component: Energy and Natural Resources Division

body_text: Stanlee Fazi, 41, of Louisa, Virginia, pleaded guilty in federal court in Alexandria to trafficking turtles in violation of the Lacey Act. Sentencing is scheduled for July 26. Fazi admitted that between July 31, 2017, and June 29, 2020, he illegally collected eastern box turtles from the wild and sold them on at least 27 occasions to buyers in California, Colorado, Florida, Maryland, New Jersey, Ohio, Texas and Wisconsin. Fazi received approximately $12,700 using Facebook Marketplace for these sales. Many of Fazi’s purchasers, in turn, smuggled the turtles from the United States to Hong Kong and China for the illegal pet trade. Fazi acknowledged binding the turtles in socks and shipping them by FedEx from Fredericksburg. The federal Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, transporting or selling wildlife in interstate commerce if the wildlife were illegally taken or possessed under state laws. The Commonwealth of Virginia also prohibits taking turtles from the wild or selling them. The maximum sentence under the Lacey Act is five years in prison and a $250,000 fine. The eastern box turtle (Terrapene carolina carolina) is a subspecies of the common box turtle (Terrapene carolina). The eastern box turtle is native to forested regions of the eastern United States, including Virginia, with some isolated populations in the Midwest. The turtles typically reach a length of up to six inches and can live more than 100 years. The turtles have a domed carapace, which can display radiated lines or spots. Turtles with colorful markings are particularly prized in the domestic and foreign pet trade market. The U.S. Fish and Wildlife Service Offices of Law Enforcement in Baltimore and Vero Beach, Florida, conducted the investigation as part of Operation Middleman. The operation focused on the trafficking of reptiles from the United States to China. The government is represented by Senior Trial Attorney Ryan Connors of the Environment and Natural Resource Division’s Environmental Crimes Section and Assistant U.S. Attorney Gordon Kromberg for the Eastern District of Virginia.


title: L3 Technologies Settles False Claims Act Allegations Relating to Double-Charging for Certain Material Costs

component: Civil Division

body_text: L3 Technologies, Inc., Communication Systems West, a Utah-based manufacturer of communications equipment for military systems, has agreed to pay $21.8 million to resolve allegations that it violated the False Claims Act by knowingly submitting and causing the submission of false claims to the Department of Defense by including in contract proposals the cost of certain parts twice, the Department of Justice announced today. From approximately 2008 to 2011, L3 submitted, and the Department of Defense accepted, dozens of contract proposals for a handheld receiver called the Remote Operations Video Enhanced Receiver (ROVER), and a compact transceiver called the Video Oriented Transceiver for Exchange of Information (VORTEX), which operate together to provide real-time, full-motion video and other crucial data from the battlefield. The contract proposals included the cost of low-cost common-stock items, such as nuts and bolts, twice. As a result, the United States alleged that L3 knowingly double-charged the government for these parts. “Government contractors must ensure that they provide the goods or services that they promised at the proper price,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to pursue those who knowingly overcharge the American taxpayers.” “The U.S. Attorney’s Office is committed to protecting the integrity of federal procurement contracting,” said U.S. Attorney Trina A. Higgins for the District of Utah. “We will vigorously pursue federal contractors who fail to comply with the highest standards of accuracy to ensure federal agencies are appropriately charged for goods and services.” “The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense’s Office of Inspector General, is steadfastly committed to rooting out fraud and ensuring taxpayer dollars are properly utilized,” said Acting Special Agent in Charge Gregory P. Shilling of DCIS’s Southwest Field Office. “DCIS, the Department of Justice, and our law enforcement partners will continue to work together to ensure individuals and contractors that defraud the government are held accountable for their actions.” “This settlement further demonstrates the resolve of Army Criminal Investigation Division and our law enforcement partners to protect and defend the assets of the United States Army,” said Special Agent in Charge Scott L. Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Utah, with assistance from the Department of Defense, Defense Contract Audit Agency, and Defense Contract Management Agency. This matter was handled by attorneys Paul R. Perkins, Russell B. Kinner, and Allison Cendali of the Civil Division and Assistant U.S. Attorney Sandra Steinvoort for the District of Utah. In conjunction with this resolution, the Justice Department has agreed to settle for $7,982,554 a lawsuit filed by L3 alleging breach of contract claims against the United States. That case, L3 Technologies, Inc., Communications Systems-West Division v. United States , Civil Action No. 17-1304 (Fed. Cl.), alleged that in an effort to prevent L3 from continuing to double-charge for common-stock items, the Department of Defense improperly prohibited L3 from charging certain other costs. The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Baltimore Felon Sentenced to Almost Five Years in Federal Prison for Illegal Possession of a Firearm

component: USAO - Maryland

body_text: Baltimore , Maryland – U.S. District Judge Ellen L. Hollander today sentenced Steven McCullough, age 36, of Baltimore, Maryland, to 58 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm an ammunition. The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department. “Our strategy of preventing violence by removing illegal guns and repeat offenders from the streets by any legal means necessary is paying off,” said United States Attorney Erek L. Barron. “As of today, homicides in Baltimore are down more than 17% from last year and non-fatal shootings are down nearly 20%. We remain laser-focused on reducing violent crime in Baltimore and throughout the state.” According to his guilty plea, on December 3, 2020, McCullough posted a video of himself on social media, which shows him approaching a vehicle holding a black handgun. Baltimore Police officers saw the video, recognized that McCullough was in the 1200 block of North Luzerne Avenue and responded to that location. Officers located McCullough, wearing the same gray sweatshirt and sweatpants as in the video, and attempted to place him under arrest. McCullough ran, pulling a black firearm from his sweatshirt pocket. A short distance later, McCullough tripped, with the gun still in his hand, and tossed the firearm out of his reach. McCullough was arrested and the gun, a 10mm pistol was recovered. The handgun was loaded with one round of 10mm jacketed hollow point ammunition in the chamber but was missing a magazine. A canvass of the path of pursuit recovered a magazine loaded with nine rounds of 10mm ammunition identical to the round found in the gun. McCullough was searched and officers also recovered approximately 36 vials containing a total of approximately 40 grams of cocaine for distribution. McCullough admitted that he knew he has a previous felony conviction and was prohibited from possessing a firearm or ammunition. In two separate cases last week, defendants pleaded guilty to illegal possession of a firearm in a school zone. Terrence Johnson, age 23, of Baltimore, posted a video on social media showing him driving a car with a black and brown handgun between the center console and the driver’s seat. Johnson was located within 1,000 feet of Green Street Academy and detectives recovered the gun, a 9mm semi-automatic pistol loaded with eight rounds of 9mm ammunition from Johnson’s waistband. Johnson was sentenced to six months in federal prison and ordered to forfeit the gun and ammunition. In the second case, Gerald Dean, age 31, of Baltimore, was found by BPD officers asleep in a car with the lights on and the engine running. The pink handle of a handgun was seen protruding from under the armrest of the center console. Officers opened the door, secured Dean, and recovered the handgun from under the armrest of the center console. Dean was searched and officers recovered eight small green containers of crack cocaine, four small black containers of heroin, sixteen pills of methamphetamine, and one sublingual strip. At the time, Dean was within 1,000 feet of the grounds of a school zone, specifically Katherine Johnson Global Academy (formerly Calverton Elementary/Middle School). Dean will be sentenced on July 27, 2023. These cases are 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. United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in these investigations. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Brandon K. Moore, who prosecuted the McCullough case and thanked Special Assistant U.S. Attorneys Liane Kozik and Jonathan Tsuei, who prosecuted the Johnson and Dean cases, respectively. 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-psn and https://www.justice.gov/usao-md/community-outreach . # # #


title: Anchorage Man Sentenced to 10 Years for Heroin Trafficking

component: USAO - Alaska

body_text: ANCHORAGE, ALASKA – U.S. District Judge Joshua M. Kindred sentenced an Anchorage man on April 19, 2023, to 10 years and 5 months imprisonment followed by eight years of supervised release for distributing heroin. According to court documents and evidence presented at trial, Jason McAnulty, aka “Snoop,” 40, distributed approximately 126 grams of heroin to a law enforcement source during two undercover operations in June 2020, netting himself $6,300. Law enforcement began investigating McAnulty after learning that he was a source of heroin supply in the Anchorage area. In July 2020, law enforcement executed a search warrant at McAnulty’s residence where they found more than $34,000 cash and other distribution contraband. An Alaska jury convicted McAnulty of the heroin distribution following a five-day trial in March 2022. McAnulty was previously convicted in 2004 for first-degree robbery, a serious violent felony, that mandated a minimum 10-year prison sentence. The United States also presented evidence of McAnulty’s extensive and violent criminal history at the sentencing hearing in support of the sentence, including McAnulty’s 2015 federal conviction for attempted witness tampering in another federal criminal trial. “Dangerous opiates such as heroin pose an ongoing threat to communities throughout Alaska,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “This sentence serves as a reminder that we will prosecute and hold accountable those who are harming our communities, and with our law enforcement partners, will persist in our disruption of heroin trafficking operations in this district.” “McAnulty supported the opioid and heroin epidemic through his illegal drug distribution activities, posing a significant threat to communities in Alaska,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “The FBI and the Anchorage Police Department will continue working together to hold drug traffickers accountable, and to stop the flow of deadly drugs into our communities.” The Federal Bureau of Investigation (FBI) and the Anchorage Police Department (APD), in support of Alaska’s High Intensity Drug Trafficking Area (HIDTA) program, investigated the case. Assistant U.S. Attorneys George Tran and Stephan Collins prosecuted the case. This case is part of Alaska’s High Intensity Drug Trafficking Area (HIDTA). HIDTA was established in 2018 to enhance and coordinate efforts among local state and federal law enforcement agencies, providing equipment, technology and additional resources to combat drug trafficking and its harmful consequences in critical regions of Alaska. ### usao/ak/23-028


title: Gree U.S. Subsidiary Sentenced for Failure to Report Dangerous Dehumidifiers

body_text: Gree USA, Inc., the U.S. subsidiary of a Chinese appliance company, was sentenced today to pay a $500,000 criminal fine after pleading guilty to failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers it sold to U.S. consumers were defective and could catch fire. Gree USA pleaded guilty to a felony violation of the Consumer Product Safety Act (CPSA). The fine, along with provisions to pay restitution to victims, was part of a $91 million resolution with three related Gree companies that represents the first corporate criminal enforcement action ever brought under the CPSA. Gree USA, based in City of Industry, California, and a U.S. subsidiary of Hong Kong Gree Electric Appliances Sales Co., Ltd. (Gree Hong Kong), entered into a plea agreement in connection with a criminal information filed in 2021 in the U.S. District Court for the Central District of California. The criminal information filed along with the plea agreement charges Gree USA with one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC. Gree Electric Appliances, Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Gree Hong Kong entered into a deferred prosecution agreement (DPA) in connection with the same criminal information. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and also agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty. According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but the companies failed to report that information to the CPSC for months. The companies reported and recalled the dehumidifiers only after consumer complaints of fires and resulting harm continued to mount. The Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Central District of California previously indicted Charley Loh, 64, of Arcadia, California, and Simon Chu, 67, of Chino Hills, California – the Chief Executive Officer and Chief Administrative Officer of Gree USA, respectively – with felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial on Nov. 7, 2023, in Los Angeles. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. “Today’s sentencing of Gree USA is part of the Department of Justice’s ongoing efforts to hold accountable companies and executives that purposefully delay reporting dangerous consumer products to the CPSC,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with the CPSC to ensure consumers’ safety.” “This corporation endangered the safety of American consumers by failing to promptly report a known problem with their defective humidifiers,” said U.S. Attorney Martin Estrada for the Central District of California. “Fortunately, authorities were able to stop this practice before Gree USA, Inc. could cause greater harm. This historic case underscores our commitment to protect the public from dangerous products that could cause consumers real harm and to hold accountable corporate entities who knowing violate our laws in promotion of their greed.” “Today’s sentencing should serve as an example that companies will be held to account when they put profits before consumer safety,” said Chair Alex Hoehn-Saric of the CPSC. “The egregious behavior detailed in this case cannot be tolerated, and we are grateful for the support of the Department of Justice in bringing this company to justice and keeping consumers safe.” “Homeland Security Investigations (HSI) works tirelessly to protect the American consumer from health and safety risks posed by sub-standard products entering the United States,” said Acting Special Agent in Charge Eddy Wang of HSI Los Angeles. “HSI, the Department of Justice, and the Consumer Product Safety Commission will continue to hold corporations accountable for placing profits above people.” As part of the Gree USA plea agreement and the Gree Zhuhai and Gree Hong Kong DPA, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than two million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months, and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects. HSI investigated this case. Assistant Director Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Johns for the Central District of California prosecuted the case with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel. Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch .


title: Armed Heroin Dealer Sentenced to Seven Years in Prison

body_text: PROVIDENCE – A 35-year-old Providence man for whom court records indicate multiple previous state court convictions for similar conduct, was sentenced today to seven years in federal prison for being an armed drug dealer, a felon in possession of firearms, and for trafficking heroin, announced United States Attorney Zachary A. Cunha. According to court documents, Giancarlo Fermin has repeatedly engaged in similar conduct in the past, despite multiple state convictions; his first term of incarceration came at age eighteen following a Rhode Island state conviction on narcotics and firearm charges. Most recently, Fermin was arrested when members of the FBI Safe Street Task Force executed a court-authorized search of his residence in August 2021, where they located two fully loaded firearms, ammunition, approximately 16 grams of heroin, and numerous items used to prepare and package narcotics for distribution, including a grinder, a digital scale, and more than 2,000 blue miniature paper envelopes. As FBI agents entered Fermin’s residence, the agents witnessed Fermin tossing blue envelopes, some containing heroin, out of a window. Fermin later admitted that he possessed the firearms for “protection.” “Armed drug traffickers who choose to make a career out of peddling opioids into our Rhode Island communities can look forward to prison, not profits,” said U.S. Attorney Cunha. “Today’s sentence should leave no doubt about this Office’s resolve to use every means at our disposal to deal with those who put guns and drugs on our streets.” “Today’s sentence makes it clear that career criminals like Giancarlo Fermin who refuse to learn from their mistakes by repeatedly breaking the law and threatening the safety of others will be held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “No community is untouched by violent crime which is why our RI Safe Streets Task Force continues to work hard every day alongside our law enforcement partners in identifying, investigating, and disrupting others like Mr. Fermin who incite violence and threaten the safety our citizens.” Fermin pleaded guilty on November 3, 2022, as charged by way of indictment, to possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. He was sentenced today to eighty-four months in federal prison to be followed by three years of federal supervised release. The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. ###


title: Ten charged with conspiring to make straw purchases of firearms allegedly bought with stolen credit card information

component: USAO - Ohio, Southern

body_text: CINCINNATI – Federal agents arrested nine individuals for crimes relating to a conspiracy to buy firearms online and have them shipped to Cincinnati-area federal firearms licensees (FFLs). It is alleged that more than 70 firearms were bought with stolen credit card information and picked up, or attempted to be picked up, at local FFLs via straw purchases that hid the identity of the true buyer. Several of the defendants are also charged with COVID-relief crimes totaling more than $120,000 in alleged loss. A total of 10 defendants were charged in two related indictments returned on April 12. The indictments were unsealed on April 21. One defendant, Roderico Allen, 26, of Cincinnati, remains a fugitive. Law enforcement authorities ask anyone with information related to Allen’s whereabouts to call the ATF at 513-684-3354. “These cases allege conspiracies that endangered our communities through straw firearms purchases, and several defendants are also alleged to have exploited pandemic relief,” said U.S. Attorney Kenneth L. Parker. “The U.S. Attorney’s Office will not waver in our determination to prosecute those who illegally purchase firearms and those who defrauded relief programs meant to help struggling Americans during the pandemic. Straw purchasers are as much a part of the problem of violence we are seeing on our streets as those who pull the trigger.” Jones et al. In one indictment, six individuals are charged with conspiring to make false statements during the purchase of a firearm from an FFL. According to the indictment, from April 2022 through at least July 2022, the six conspired to make false statements to an FFL about the identity of the true buyer of the firearms, including on ATF Form 4473, which a buyer must fill out when purchasing a firearm. Members of the conspiracy allegedly used stolen credit card information to buy firearms online from out-of-state FFLs, including Guns.com. The firearms were then shipped to Cincinnati-area FFLs for pickup. Members of the conspiracy allegedly bought the firearms in the names of other members of the conspiracy, who then falsely represented to local FFLs that they were the true buyers of the firearms and were not obtaining the firearms for anyone else. It is alleged that the conspirators had 60 firearms shipped to the Southern District of Ohio and succeeded in obtaining at least 38 of those firearms. The 23-count indictment charges: Name Age City of Residence Zephaniah Jones 20 Cincinnati Nehemiah Jones 23 Atlanta, GA Jerin Johnson, Sr. 35 Cincinnati Cedric Conyers 34 Cincinnati Aneesah Williams 27 Cincinnati Mykia Melton 25 Cincinnati Zephaniah Jones is also charged with three counts of unauthorized use of an access device and three counts of aggravated identity theft relating to his alleged use of stolen credit card numbers to buy firearms. Four defendants – Zephaniah Jones, Nehemiah Jones, Mykia Melton and Jerin Johnson, Sr. – are also accused of fraudulently obtaining a total of five Small Business Administration Paycheck Protection Program (PPP) loans during the COVID-19 pandemic: It is alleged that Zephaniah Jones fraudulently applied for and obtained more than $20,000 in PPP loans. Zephaniah Jones allegedly falsely stated he was the sole owner of Jones Lawncare LLC, a business he allegedly falsely claimed was in operation in February 2020 and had $99,000 in gross income in 2020. Co-defendant Nehemiah Jones allegedly obtained two fraudulent PPP loans by falsely claiming to own a business called “massage on air” and falsely representing that the business earned $98,000 in gross income in 2020. Nehemiah Jones received two PPP loans totaling more than $40,000. Mykia Melton allegedly received nearly $21,000 in PPP loans by falsely claiming she owned a clothing and accessories wholesaler called “Kia’s Drip.” It is alleged she falsely claimed the business had $100,000 in gross income in 2020. Jerin Johnson, Sr. allegedly falsely claimed his handyman and contracting business grossed nearly $98,000 in income in 2020. He allegedly received a $20,000 PPP loan. Allen et al. The four defendants included in the second indictment are also charged with conspiring to make false statements during the purchase of a firearm from an FFL. According to that indictment, from May 2022 through at least June 2022, the four defendants engaged in a conspiracy using the same fraud scheme as the Jones defendants. These defendants allegedly caused 14 firearms to be shipped to the Southern District of Ohio and obtained nine of them. The individuals charged in this 10-count indictment include: Name Age City of Residence *Roderico Allen 26 Cincinnati Tyler Sneed 25 Cincinnati Kazyra Robertson 24 Cincinnati Jaidah Jones 22 Columbus *Fugitive Roderico Allen is also charged with aggravated identity theft and unauthorized use of an access device relating to his alleged use of a stolen credit card number in May 2022. Jaidah Jones is also charged with PPP fraud. She allegedly received approximately $20,000 after falsely claiming to own a shoe store, stating the shoe store earned $200,000 in gross income in 2020. Conspiring to make false statements during the purchase of a firearm is a crime punishable by up to five years’ imprisonment, and making such false statements is punishable by up to 10 years’ imprisonment. Unauthorized use of an access device is a crime punishable by up to 10 years’ imprisonment. A conviction for aggravated identity theft requires a mandatory two-year prison term in addition to any other sentences imposed. Making false statements to an agency of the United States is punishable by up to five years in prison. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; Cincinnati Police Chief Teresa A. Theetge; and Hamilton County Sheriff Charmaine McGuffey announced the charges. Assistant United States Attorney Julie D. Garcia is representing the United States in this case. An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: Georgia Doctor Pleads Guilty to Distributing Misbranded Weight Loss Drug Product

body_text: A Georgia physician pleaded guilty today to charges related to the sale of a purported weight loss drug product that contained human chorionic gonadotropin, or HCG. Dr. Audrey Arona, 64, of Gainesville, Georgia, pleaded guilty to causing the introduction into interstate commerce of a misbranded drug product containing HCG and marketed under the name “Releana.” Pursuant to a plea agreement, Magistrate Judge J. Clay Fuller of the United States District Court for the Northern District of Georgia ordered Dr. Arona to forfeit approximately $65,000. HCG is a hormone produced by the human placenta. The U.S. Food and Drug Administration (FDA) has approved certain injectable HCG drug products for the treatment of some cases of female infertility and for hormone treatment in males. But the FDA has never approved any oral or sublingual HCG drug products for any use, and the FDA has never approved any HCG drug product for weight loss. In fact, FDA has specifically warned consumers to avoid HCG weight-loss products, advising, “If you have HCG products for weight loss, quit using it, throw it out, and stop following the dieting instructions.” “Doctors who distribute drugs must comply with federal law designed to ensure these products are safe and effective,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with our law enforcement partners to stop the distribution of misbranded HCG drugs and other misbranded drugs, including through criminal enforcement where appropriate.” “Misbranded prescription drugs can present a serious health risk to those who buy and use them. The drugs may contain unknown ingredients and may be made under unknown conditions,” said Special Agent in Charge Charles L. Grinstead of the FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who traffic in misbranded prescription drugs.” According to court documents, Dr. Arona admitted to selling a sublingually administered HCG-for-weight-loss drug product to patients around the country. Dr. Arona further admitted that she represented to patients that the HCG-for-weight-loss drug product was FDA-approved and that it could assist with weight loss. Dr. Arona was the third defendant to plead guilty in connection with the marketing and sale of Releana. In September 2022, Hoschton, Georgia, resident Maurice Bailey also pleaded guilty to causing the introduction into interstate commerce of a misbranded drug product containing HCG. According to court documents, Bailey admitted to preparing the Releana sold by Dr. Arona in a facility that was not properly registered with FDA, and to inaccurately labelling that Releana. In August 2021, Colorado resident Sarah Alberg pleaded guilty to causing the introduction into interstate commerce of a misbranded drug product containing HCG, with the intent to mislead or defraud. According to court documents, Alberg also distributed Releana, and she admitted to smuggling HCG into the United States from India and distributing HCG using bottles and supplies exposed to rodent droppings. The FDA Office of Criminal Investigations investigated the cases. Senior Litigation Counsel Patrick Runkle and Trial Attorney Michael Wadden of the Justice Department’s Consumer Protection Branch prosecuted the cases against Dr. Arona and Bailey, with assistance from Assistant U.S. Attorney Jennifer Keen for the Northern District of Georgia. For more information about the enforcement efforts of the Consumer Protection Branch visit the Branch’s website at http://www.justice.gov/civil/consumer-protection-branch


title: U.S. Attorney’s Office, Joined by State and Local Agencies, to Host One-Stop Reentry Resource Fair at the War Memorial in Baltimore on Wednesday, April 26, 2023

body_text: Baltimore , Maryland – April is Second Chance Awareness Month. To recognize the importance of second chances, on Wednesday, April 26, 2023, the U.S. Attorney’s Office for the District of Maryland, the U.S. Probation and Pretrial Services Office, the Maryland Division of Parole and Probation, and the Mayor’s Office of Neighborhood Safety and Engagement (MONSE), will sponsor a one-stop reentry resource fair that will be held from 10:00 a.m. to 2:00 p.m. at the Baltimore War Memorial, 101 N. Gay Street, Baltimore, MD . More than 40 organizations, including at least 20 employers, will be on-site offering support, assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing and more. This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair. 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 and https://www.justice.gov/usao-md/community-outreach . # # #


title: Five Individuals Charged in $2M Virtual Asset and Securities Manipulation Scheme

body_text: An indictment was unsealed today in Miami charging two U.S. citizens and a South African national with conspiring to manipulate the market for HYDRO, a virtual asset created by the Hydrogen Technology Corporation. Two other individuals were also charged in separate charging documents for their roles in the scheme filed in the Southern District of Florida. According to court documents, from around June 2018 through April 2019, Michael Kane, 38, of Miami; Shane Hampton, 31, of Philadelphia; and George Wolvaardt, 38, of Johannesburg, South Africa, allegedly conspired to manipulate the market for HYDRO, a token on the Ethereum blockchain platform, and defraud market participants by creating the false appearance of supply and demand for HYDRO to induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded. The defendants allegedly used a trading bot to place thousands of orders that they did not intend to execute, or “spoof orders,” and thousands of orders where the bot bought and sold tokens to itself through the same account, or “wash trades.” The co-conspirators allegedly reaped $2 million in profit through their sales of HYDRO at artificially inflated prices. As alleged in the indictment, Kane was the co-founder and CEO of Hydrogen Technology and Hampton was the Chief of Financial Engineering for the company. Wolvaardt was the Chief Technology Officer for Moonwalkers Trading Limited, a self-described “market-making” firm that purportedly designed the trading bot and was hired by Kane and Hampton to manipulate the market for HYDRO. Relatedly, Tyler Ostern, 29, of Coos Bay, Oregon, the former CEO of Moonwalkers, and Andrew Chorlian, 29, of New York, New York, a blockchain engineer at Hydrogen Technology, were also charged for their participation in the scheme. Kane, Hampton, and Wolvaardt are each charged with one count of conspiracy to commit securities price manipulation, one count of conspiracy to commit wire fraud, and two counts of wire fraud. If convicted, they each face a maximum penalty of five years in prison on the conspiracy to commit securities price manipulation count and 20 years in prison on each of the other charged counts. Ostern and Chorlian are each charged with one count of conspiracy to commit securities price manipulation and wire fraud. If convicted, they each face a maximum penalty of five years in prison. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement. The FBI is investigating the case. Trial Attorney Andrew Jaco and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric Morales for the Southern District of Florida are prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas . An indictment and information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Ohio Man Charged for Attempting to Burn Down a Church that Planned to Host Drag Show Events

body_text: A federal indictment was returned charging an Ohio man with a violation of the Church Arson Prevention Act for using Molotov cocktails against the Community Church of Chesterland, in Chesterland, Ohio, in an attempt to burn the church to the ground. He was also indicted on one count of using fire to commit a federal felony, one count of malicious use of explosive materials and one count of possessing a destructive device. According to court documents, Aimenn D. Penny, 20, of Alliance, attempted to burn the church to the ground after learning the church was holding multiple drag show events the following weekend. Penny was initially arrested and charged with federal offenses on March 31. If convicted, Penny faces a maximum penalty of up to 20 years in prison for the violation of the Church Arson Prevention Act. Penny also faces a mandatory minimum of five years and up to 20 years in prison for the malicious use of explosive materials charge and up to 10 years in prison for the possession of a destructive device charge. In addition, if convicted of using fire to commit a federal felony, Penny faces a 10-year mandatory prison sentence that will run consecutively with any other prison term imposed. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio and Special Agent in Charge Gregory Nelsen of the FBI Cleveland Field Office made the announcement. The FBI Cleveland Field Office is investigating the case. Assistant U.S. Attorneys Brian Deckert and Matthew W. Shepherd for the Northern District of Ohio and Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case with assistance from Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Air National Guard Member Arrested, Charged with Distribution and Possession of Child Pornography

body_text: ANCHORAGE – A federal grand jury in Alaska returned an indictment on Friday, April 21, charging Air National Guard Technical Sergeant of the 176th Maintenance Group on Joint Base Elmendorf Richardson (JBER) with production, distribution, and possession of child pornography. Richard Anthony Dougherty was arrested on Thursday, April 6, 2023, and was originally charged by complaint. The complaint filed in the case charged that, between 2017 and 2023, Richard Anthony Dougherty distributed child pornography over the internet and possessed “terabytes” of child pornography on a computer and mobile phone. According to court documents, Dougherty confessed to hoarding child pornography for approximately 20 years, some of which he produced using the camera feature of a mobile phone that he had installed behind a mirror in a bathroom at his house in Anchorage. On April 21, 2023, the grand jury indicted Dougherty with three counts of production of child pornography, one count of receipt and distribution of child pornography, and one count of possession of child pornography. If convicted, he faces a mandatory minimum sentence of 15 years to life in prison on each production count, a mandatory minimum sentence of 5 to 20 years on the receipt and distribution count, and maximum of 10 years in prison for the possession count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other legal factors. U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement. Homeland Security Investigations is investigating the case with substantial assistance from the Alaska State Troopers, and additional assistance from the Air Force Office of Special Investigations. The investigation is ongoing. Assistant U.S. Attorneys Jonas M. Walker and Seth Brickey for the District of Alaska are prosecuting the case. An indictment and complaint are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Prohibited Person Sentenced to Seven Years for Possessing  a Gun and Ammunition

component: USAO - District of Columbia

body_text: WASHINGTON - Decondi Mayo, 46, of Washington, D.C., was sentenced today to 84 months in prison for unlawful possession of a firearm and ammunition, announced U.S. Attorney Matthew M. Graves, Acting Special Agent in Charge Michael Weddel, of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD). Decondi Mayo pleaded guilty in September 2022, in the United States District Court, to unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. In addition to the seven year prison term, U.S. District Court Judge Paul Friedman ordered three years of supervised release. According to the government’s evidence, on January 29, 2021, at approximately 3 p.m., members of the Metropolitan Police Department (MPD) Crime Suppression Team were on patrol in the 2200 block of Bryan Place, S.E., Washington, DC. The officers observed the defendant reaching into the passenger side window of a blue Nissan Maxima with Maryland paper tags. The defendant looked in the officers’ direction as they pulled into the block and he immediately separated himself from the vehicle and continued to look back over his shoulder at officers. Shortly thereafter, the defendant walked up concrete steps toward a boarded up and uninhabitable home located at 2212 Bryan Place, SE. Officers parked, exited their vehicles, and observed the defendant continually pressing his right arm against the right side of his jacket as if he was attempting to secure an object on the front of his person. An officer then observed the defendant discard a pistol from his front waistband area. The defendant was subsequently arrested and found with a magazine with ten live rounds. The recovered firearm that the defendant tossed was a 9mm Glock 26 with one round of ammunition in the chamber and sixteen rounds in the magazine. In announcing the sentence, U.S. Attorney Graves, Acting SAC Weddel, and Chief Contee commended the work of those who investigated the case from Project Safe Neighborhood from both the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Karla Nunez. Finally, they commended the efforts of Assistant U.S. Attorney Shehzad Akhtar, former Assistant United States Attorney Brandon Regan, former Assistant United States Attorney Kaitlin Ann Vaillancourt and Special Assistant U.S. Attorney Kristina Cervi who investigated and prosecuted the case.


title: District Man Arraigned on Second Degree Child Sexual Abuse and Other Charges

body_text: WASHINGTON – Gary Jones, 35, of Washington, D.C., was arraigned today at a hearing before the Honorable Marisa Demeo on charges stemming from an incident at a public pool in August 2022. Jones was indicted on April 19, 2023, by a grand jury in the Superior Court of the District of Columbia on two counts of second degree child sexual abuse, with aggravating circumstances; one count of attempted second degree child sexual abuse, with aggravating circumstances; and one count of misdemeanor sexual abuse of a child or minor, with aggravating circumstances. According to a publicly available document, on August 18, 2022, at approximately 5:30 p.m., Jones entered the shower room at the Anacostia Pool. When two children entered the shower area, they observed Jones wearing underwear that exposed his genitals and rubbing his “private part” in front of them. Jones touched one child on the buttocks and attempted to touch the other child as well. The children immediately reported the incident to pool staff, who detained Jones until police arrived. In announcing the charges, U.S. Attorney Graves and Chief Contee commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists ReShawn Johnson and Tiffany Fogle. Finally, they commended the work of Assistant U.S. Attorneys Jessica Wash, Kathleen Houck, and LaVater Massie-Banks, who are investigating and prosecuting the case. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.


title: Former Public Official and California Contractor Sentenced for Bid Rigging and Bribery

component: Antitrust Division

body_text: A former Caltrans contract manager and a former contractor were sentenced today in the U.S. District Court for the Eastern District of California in Sacramento for their roles in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts. Choon Foo “Keith” Yong, the former Caltrans contract manager, was sentenced to 49 months’ imprisonment and ordered to pay $984,699.53 in restitution. According to a plea agreement filed on April 11, 2022, Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong also pleaded guilty for accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits that Yong received neared $1 million. William D. Opp, the former contractor, was sentenced to 45 months’ imprisonment and ordered to pay $797,940.23 in restitution. According to a plea agreement filed on Oct. 3, 2022, Opp engaged in the same conspiracy, from early 2015 through at least as late as August 2018. As part of the conspiracy, Opp formed a separate construction company, with his wife as the nominal president, to submit sham bids on Caltrans contracts. During his participation in the conspiracy, Opp and co-conspirators provided nearly $800,000 in cash bribes and other benefits to Yong. Yong and Opp are the second and third co-conspirators to be sentenced in the case. On April 17, 2023, former construction company owner Bill R. Miller was sentenced to 78 months’ imprisonment and ordered to pay nearly $1 million in restitution. “These criminals – including a state employee who sought sales commissions for his role in the bid-rigging scheme – put greed and personal gain ahead of the public trust and are being punished accordingly,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division and our PCSF partners are on the lookout for those that try to cheat on government contracts.” “A former Caltrans employee and a contractor have been sentenced today for a conspiracy that cheated a state agency out of taxpayer funds and that, if left unchecked, could threaten to undermine public confidence in the proper functioning of government institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The defendants’ abuse of public trust and the length and breadth of the criminal conduct fully warrant today’s sentences. Bribes have no place in government contracting.” “All government employees are expected to conduct businesses in accordance with both law and policy to ensure the integrity of those transactions and maintain public trust in the agencies they represent,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “No government official should put personal gain ahead of the needs of the communities they represent. The FBI stands ever ready to identify, investigate, and disrupt public corruption to ensure the American public’s trust in the institutions designed to serve and protect them is maintained.” Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). Trial Attorneys Christopher J. Carlberg and Tai S. Milder and Assistant U.S. Attorney Lee S. Bickley prosecuted the case. In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force .