title: Former IRS Revenue Officer, Along With Five Others, Charged In Alleged Multi-Million Dollar COVID-Fraud Scheme

component: USAO - California, Northern

body_text: OAKLAND – The U.S. Attorney’s Office has filed two informations charging six defendants with a variety of crimes in connection with an alleged scheme to obtain millions of dollars by submitting fraudulent loan applications through the U.S. government’s Payroll Protection Program (PPP), announced U.S. Attorney Ismail J. Ramsey, Internal Revenue Service Criminal Investigation Special Agent in Charge Darren Lian, Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King, and Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau, Acting Western Region Special Agent in Charge Cory Nootnagel. All six defendants are scheduled to make their initial federal court appearances next week before U.S. Magistrate Judge Kandis Westmore. Central to the allegations in the charging documents is the role of Frank Mosley, 58, of Oakland, a former IRS Revenue Officer and current City of Oakland Tax Enforcement Officer. According to the charging documents, Mosley conspired with others to submit fraudulent PPP-loan applications and then, after securing the proceeds from the loans, used his share of the illegally-obtained proceeds for personal investments and expenses. The PPP is administered by the U.S. Small Business Administration as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March 2020 to provide billions of dollars in emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. The PPP provided forgivable loans to small businesses for job retention and limited other business expenses. According to the informations, the defendants, including Mosely, received approximately $3 million as a result of submitting fraudulent loan applications under the PPP program. The two informations provide numerous details of the alleged conspiracy. According to the first information, between July of 2020 and September of 2021, Frank Mosely, along with four other defendants—his brother Reginald Mosley (60, of Sacramento), Marcus Wilborn (50, of Elk Grove), Aaron Boren (56, of Roseville), and Scott Conway (52, of Rocklin)—submitted fraudulent documents on behalf of four entities. Although each of the companies’ PPP loan applications certified that each company had between 19 and 49 employees and approximately $150,000 to $430,000 in monthly payroll, in reality, all four companies were little more than shell companies, with no payroll expenses. In addition, upon receipt of the PPP loan proceeds, the defendants allegedly did not use the funds for any legitimate business expenses, such as to pay employees. Rather, they used the funds for significant personal expenses, personal credit cards, personal investments, and distributions to their family members. The first information further alleges that in August of 2020, Frank Mosley and Reginald Mosley submitted the first successful loan application on behalf of an entity they controlled called Forward Thinking Investors, Inc. After receiving over $1 million in fraudulently obtained funds in the first transaction, Reginald Mosley allegedly recruited acquaintances— including Wilborn, Boren, and Conway— who owned companies that existed prior to February 2020 to submit additional fraudulent loan applications. As part of the scheme, Frank and Reginald Mosley helped prepare the fraudulent loan applications for Wilborn, Boren, and Conway, who then funneled portions of the fraudulently-obtained funds back to Frank and Reginald Mosley. In fact, Frank and Reginald Mosley reduced their illegal agreement to writing, circulating via email a written contract laying out the amount they would receive for helping prepare and submit the fraudulent loan applications. Specifically, Frank and Reginald Mosley demanded a kickback of at least 15% of the fraudulently obtained proceeds for loans submitted by each of the other three co-conspirators. After obtaining the fraudulent loan proceeds, Frank and Reginald Mosley filed fraudulent payroll tax returns with the IRS in an attempt to cover up their scheme. The second information describes how the sixth defendant, Kenya Ellis, 55, of Los Angeles, allegedly aided and advised Frank Mosley, Reginald Mosley, and others, in submitting fraudulent PPP loans on behalf of their own companies. In addition, the second information describes how in 2020 and 2021, Ellis allegedly obtained more than $296,000 in PPP and other COVID-related loans on behalf of an entity called Global Processor, Inc. (GPI). Specifically, the information alleges Ellis falsely represented in her loan applications that she was the owner of GPI. In fact, however, Ellis had no legitimate relationship with GPI and the true owner of GPI had no awareness of, nor involvement in, the preparation and submission of the loan applications. The applications Ellis submitted also made false statements about GPI’s monthly payroll and number of employees. The charges presented in the informations are merely allegations and the defendants are presumed innocent unless proven guilty in a court of law. Frank Mosley, Reginald Mosley, Wilborn, Boren, and Conway are charged with conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, which carries a maximum sentence of 30 years in prison. Frank and Reginald Mosley are also charged with aiding and advising in the filing of false tax returns in violation of 26 U.S.C. § 7201(2), which carries a maximum sentence of three years in prison. Ellis is charged in a separate case with bank fraud in violation of 18 U.S.C. § 1344, which carries a maximum sentence of 30 years in prison. In addition to a prison sentence, the court can order the defendants to pay restitution, to serve an additional period of supervised release and to pay additional assessments. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The defendants are scheduled to make their initial federal court appearances before Magistrate Judge Westmore on the following dates: Defendant Date of Initial Appearance May 15 Conway May 16 Ellis May 18 Frank Mosley, Reggie Mosley, and Boren May 23 Wilborn Assistant U.S. Attorney Abraham Fine is prosecuting the case with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the Internal Revenue Service Criminal Investigations, the Office of Inspector General for the Small Business Administration, and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.


title: Massachusetts Man Convicted Of Murder For Hire Scheme

body_text: SAN FRANCISCO – A federal jury convicted Allen Gessen of murder for hire after he arranged to pay an undercover FBI agent to murder the mother of his young children, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The verdict follows a one-week trial before the Hon. Jacqueline Scott Corley, U.S. District Judge. The evidence at trial established that Gessen, 48, of Massachusetts, was an attorney licensed in New York when he was introduced to an undercover FBI agent by a target of a separate FBI investigation into violations of international money laundering. In the summer of 2022, Gessen met with the undercover FBI agent on two occasions, first in Boca Raton, Florida and then again in New York City, New York. During the meetings, Gessen volunteered details of a years-long dispute with his former partner which had resulted in contentious child custody proceedings. At these meetings and through a series of encrypted electronic messages, Gessen initiated plans to commit two different crimes utilizing the undercover FBI agent’s connections. The evidence at trial established that over the course of the investigation, Gessen’s objectives quickly transformed from bribing an immigration official to deport his former partner to hiring someone to murder her. The trial evidence established that Gessen believed his former partner’s deportation would allow him to have full custody of their two minor children. Gessen initially agreed to pay the undercover FBI agent $100,000 to accomplish the bribery and deportation scheme. Gessen explained he could justify the expenditure because he would pay more in child support if his former partner remained in the United States. However, at the end of that same meeting, Gessen resolved to murder his former partner because it was a “cheaper way to get rid of her” and was a more permanent solution. The trial evidence established that Gessen agreed to pay $50,000 to have the murder completed. Specifically, he agreed to pay a $25,000 deposit and have the remaining $25,000 be due after her murder. During these discussions, Gessen told the undercover FBI agent that he had previously researched murder for hire and paid $10,000 toward accomplishing the task. Gessen said he paid for a hit team from a foreign country to travel to Massachusetts, conduct reconnaissance, and surveil his former partner. Nevertheless, Gessen explained, after the team completed their reconnaissance, they told Gessen it would cost another $210,000 to commit the murder. Gessen did not continue with that plan because of the cost. The government established at trial that Gessen finalized the details for the murder for hire plan at the subsequent meeting and gave the undercover FBI agent a gold coin worth approximately $2,000. Shortly thereafter, Gessen wired a total of $23,000 to an FBI undercover bank account in San Francisco, to carry out the murder. Around the same time, Gessen also sent to the undercover FBI agent a written agreement containing a promise to pay for phony “consulting services” as a method to disguise the true nature of the funds. Gessen also provided to the undercover FBI agent a target package containing details about his former partner’s whereabouts, schedule, and lifestyle habits. A federal grand jury indicted Gessen on July 26, 2022, charging him with one count of murder for hire, in violation of 18 U.S.C. § 1958. The jury convicted Gessen of the charge. Judge Corley has not yet set a date for Gessen’s sentencing hearing. Gessen faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. However, any sentence will be imposed only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI.


title: Diggs Sworn in as United States Attorney for the Eastern District of Texas

component: USAO - Texas, Eastern

body_text: SHERMAN, Texas – Damien M. Diggs has taken the oath of office to become the United States Attorney for the Eastern District of Texas. Diggs was nominated by President Joe Biden on Feb. 2, 2023 and confirmed by the U.S. Senate on May 4, 2023. He took the oath of office on May 7, 2023 from Chief U.S. District Judge Rodney Gilstrap. Diggs, 47, of Frisco, is the chief federal law enforcement official in the Eastern District of Texas, which includes 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 103 employees, including 53 prosecutors. Diggs is responsible for the prosecution of federal criminal offenses in the district and will represent the United States in all civil litigation in the district. “I am honored to have been nominated by President Biden and confirmed by the Senate,” said U.S. Attorney Diggs. “I’m excited to continue serving the public in this role and ensuring that justice is served for the citizens in the 43 counties that make up the Eastern District of Texas. Diggs has served as an Assistant U.S. Attorney in the Northern District of Texas since 2018 where he was assigned to the criminal division’s violent crime section prosecuting firearms violations and fraud matters. Prior to that, he worked as an assistant U.S. attorney in Washington, D.C. from 2012 to 2018. From 2007 to 2012, he was an attorney with the Department of Education. Diggs was also an associate at Hogan & Hartson for two years before beginning his service with the federal government. Diggs earned his Bachelor of Science in political science and government from Towson University’s College of Liberal Arts in 1998 and his law degree from American University’s Washington College of Law in 2003. Today, Diggs was honored to have his family and friends by his side as he took his ceremonial oath of office from U.S. District Judge Amos Mazzant. For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx . ###


title: Justice Department Files Statement of Interest in Religious Land Use Case Involving Faith-Based Group That Feeds Homeless People in California

component: Civil Rights Division

body_text: The Justice Department filed a statement of interest in the U.S. District Court for the Central District of California explaining that the act of distributing food and drinks to people who are homeless by Micah’s Way, a faith-based organization that helps people in need, could be religious exercise under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA). The statement of interest was filed in Micah’s Way v. the City of Santa Ana , a lawsuit alleging that Santa Ana imposed a substantial burden on Micah’s Way’s religious exercise. At issue is the city’s denial of an occupancy certificate to Micah’s Way on the grounds that it was providing food and drinks to people who are homeless in violation of the city’s zoning ordinance. According to its complaint, Micah’s Way has a religious duty to help people in need, including by providing food and drink to someone who is hungry. After denying the occupancy certificate, the city informed Micah’s Way that it could not feed people who are homeless at its resource center under any circumstances and that if it continued to do so, Micah’s Way would be subject to fines and potential criminal prosecution. The city filed a motion to dismiss the complaint, arguing in part that providing food and drinks to people who are homeless is not religious exercise and that its denial of an occupancy certificate did not substantially burden Micah’s Way’s religious exercise. The department’s statement of interest argues that feeding people who are homeless may be religious exercise protected by RLUIPA and that the city’s denial of an occupancy certificate and complete prohibition on feeding people who are homeless may have imposed a substantial burden on Micah’s Way’s religious exercise, in violation of RLUIPA. “Discriminatory barriers and land use restrictions against faith-based organizations is unlawful,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Many faith-based organizations across the country are on the front lines serving the needs of people experiencing homelessness. The Justice Department is committed to enforcing federal civil rights laws to ensure that all religious groups can freely exercise their religious beliefs.” “The free exercise of religion is a bedrock principle of our nation,” said U.S. Attorney Martin Estrada for the Central District of California. “Religious groups should be entitled to exercise their religion by providing charitable services based in their religious beliefs. Our office firmly opposes actions that block religious groups from carrying out their spiritual mission to help others in need.” RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship . Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Division’s Civil Rights Section at (213) 894-2879 or the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php .


title: Lee Man Pleads Guilty to Child Exploitation Offenses

component: USAO - New Hampshire

body_text: CONCORD – A Lee man pleaded guilty today in federal court to possession and distribution of child sexual abuse material (CSAM), U.S. Attorney Jane E. Young announces. Joshua Olsen, 31, pleaded guilty to possession and distribution of CSAM. U.S. District Court Judge Steven McAuliffe scheduled sentencing for August 29, 2023. Olsen was charged by complaint in December 2022 and indicted in January 2023. Olsen corresponded with an undercover law enforcement officer through various online platforms. During these chats, Olsen engaged in sexually graphic conversations related to children and sent sexually explicit images of children to the undercover officer. A subsequent search of Olsen’s cell phone revealed the presence of over 1,600 images of apparent CSAM. The charging statute provides a sentence of at least 5 no greater than 20 years in prison, at least 5 years of supervised release, a fine of $250,000, and mandatory restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Lee Police Department. Assistant U.S. Attorney Kasey Weiland is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . ###


title: NORTH DAKOTA U.S. ATTORNEY’S OFFICE ALLOCATED FIVE ADDITIONAL PROSECUTORS, INCLUDING THREE FOR “INDIAN COUNTRY”

component: USAO - North Dakota

body_text: Fargo – United States Attorney Mac Schneider announced today that the United States Attorney’s Office for the District of North Dakota has been allocated five additional federal prosecutors by the Untied States Department of Justice. Three of these full-time Assistant United States Attorneys (AUSAs) will be dedicated to addressing public safety needs on North Dakota’s reservations. “For decades, the hallmark of the United States Attorney’s Office in North Dakota has been our role as a strong federal partner in promoting public safety across the state, especially in Indian Country,” Schneider said. “With this significant investment of additional resources from the Department of Justice, we will be able to play that role even more effectively.” In addition to the three “Indian Country” prosecutors, the office will hire an additional AUSA to prosecute violent crime in Cass County and the surrounding areas. Another prosecutor will be charged with spearheading the office’s eLitigation efforts, an area that is increasingly important to all manner of criminal prosecutions. The United States Attorney’s Office for the District of North Dakota currently has 21 AUSAs working in its Criminal and Civil Divisions out of Bismarck and Fargo and an additional High Intensity Drug Trafficking Areas prosecutor in Minot. The office is currently in the process of onboarding two criminal AUSAs to fill existing vacancies. When the additional five prosecutors are in place, a process expected to take several months, the office will have a total of 28 AUSAs. The additional prosecutors assigned to “Indian Country,” a legal term defined by18 U.S. Code § 1151, will allow the United States Attorney’s Office to nearly double the prosecutorial resources currently dedicated to promoting public safety in North Dakota’s tribal communities. ####


title: Former Louisville Metro Police Department Officer Pleads Guilty to Using Excessive Force During 2020 Protest

body_text: A former Louisville Metro Police Department officer pleaded guilty to violating an individual’s rights by using excessive force while acting as a police officer. During the plea hearing, Richard Ross Wiedo, 37, admitted that on or about May 30, 2020, while working as a police officer with the Louisville Metro Police Department, he deployed a foam round from his 40mm direct impact munition into a crowd of protestors after a bottle was thrown from the back of the crowd. The foam round struck an individual at the front of the crowd in the face. Wiedo admitted he had not identified who had thrown the bottle and was not deploying his 40mm direct impact munition at anyone who was being actively aggressive. Wiedo pleaded guilty to one misdemeanor count of using unreasonable force. Wiedo’s guilty plea carries a maximum fine of $100,000. As part of the plea agreement, if it is accepted by the court, Wiedo will forfeit his Kentucky law enforcement certification and agree not to seek any future law enforcement employment. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Michael A. Bennett for the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement. The FBI Louisville Field Office and the Louisville Metro Police Department’s Public Integrity Unit investigated the case through the Louisville Public Corruption Civil Rights Task Force. Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.


title: D.C. Executive Pleads Guilty to Embezzling Hundreds of Thousands of Dollars from Former Client, a Nonprofit Association

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Graham Hauck, 50, of Chevy Chase, Maryland, pleaded guilty today to stealing more than $330,000 from a nonprofit trade organization. The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division. Hauck pleaded guilty to wire fraud, which carries a statutory maximum of 20 years in prison. As part of his plea agreement, Hauck must pay full restitution. He also will be liable for a forfeiture money judgment. U.S. District Court Judge Rudolph Contreras, who accepted Hauck’s guilty plea, scheduled sentencing for September 14, 2023. According to court documents, Hauck served as president and CEO of Hauck & Associates, Inc. (“H&A”), a trade association management firm based in Washington, D.C. The victim organization, a nonprofit professional trade organization, retained H&A to serve as its management company. For the period covering January 1, 2019, through December 31, 2019, the victim organization agreed to pay H&A an annual management and headquarters fee of $148,475, with one-twelfth of the fee (approximately $12,372) being billed on the first day of each month. From March 2019 through approximately October 2019, Hauck stole roughly $336,222 from the victim organization. Although H&A was authorized to pay itself the monthly management fee from one of the organization’s bank accounts, Hauck wrote checks and initiated ACH payments from that account to H&A in amounts far exceeding what the organization owed. Hauck also stole from one of the organization’s other accounts by writing a $100,000 to H&A and initiating three ACH transfers from the account. Hauck concealed his scheme both by lying to one of his employees who noticed the victim organization’s unusual activity and by creating inaccurate balance sheets that were presented monthly to the victim organization’s board of directors. The false balance sheets showed more money than the organization actually had in its accounts. This case was investigated by the FBI’s Washington Field Office. It is being prosecuted by Assistant U.S. Attorneys Kondi Kleinman and Anne McNamara, and former Assistant U.S. Attorney David B. Kent, with assistance from Paralegal Specialist Michon Tart and former Paralegal Specialists Angeline Thekkumthala and Stephanie Frijas.


title: Salem Man Sentenced for Unlawful Possession of Machine Guns

body_text: CONCORD – A Salem man was sentenced today in federal court for the unlawful possession of machine guns, U.S. Attorney Jane E. Young announces. Kyle Morris, 23, was sentenced by U.S. District Court Judge Samantha D. Elliott to 18 months in prison and 3 years of supervised release. Morris was also ordered to pay a fine of $1000. On January 17, 2023, Morris pleaded guilty to the unlawful possession of machine guns. He was ordered to forfeit to the government the two machine guns seized during the execution of the search warrant at his home. “The defendant expressed an interest in perpetrating horrific acts of violence against racial and religious minorities,” said U.S. Attorney Jane E. Young. “Those beliefs coupled with his illegal possession of machine guns pose a danger to our communities and today’s sentence sends a clear message that such conduct will result in not only a felony conviction but in incarceration.” "Today, Kyle Morris learned his fate for illegally possessing two machine guns, while advocating for a race war and the bombing of mosques and synagogues. Weapons, he collected in furtherance of his desire to commit racially motivated violence,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “I commend the diligent work conducted by our New Hampshire Joint Terrorism Task Force for removing this threat from our community." Morris kept the machine guns in a locked gun room in his home. This locked room also contained over 20 other firearms and various Nazi paraphernalia, including a Nazi uniform, two Nazi flags, and a framed photo of Adolf Hitler. In private correspondence, he advocated for bombing mosques, synagogues, and diversity centers, and for starting a race war. He expressed an interest in participating in lone wolf attacks in Massachusetts involving shootings in Lawrence, culminating in a plan to drive a truck bomb into the Massachusetts State House. Morris also wanted to “mag dump a crowd of Black Lives Matter protesters, especially the darker ones.” The Federal Bureau of Investigation and New Hampshire State Police led the investigation. Assistant U.S. Attorneys Anna Z. Krasinski and Alexander S. Chen prosecuted the case. ###


title: Virginia Man Sentenced to 97 Months in Prison  For Distributing Child Sexual Abuse Material

body_text: WASHINGTON – Joseph Arnold, 43, of Chesapeake, Virginia, was sentenced today to 97 months in prison, followed by 10 years of supervised release and ordered to pay $67,500 restitution, for distributing child pornography. The announcement was made by U.S. Attorney Matthew M. Graves and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division. Arnold pleaded guilty on July 19, 2022, in the U.S. District Court for the District of Columbia. According to the government’s evidence, on October 26, 2020, Arnold began communicating with an undercover officer based in the District of Columbia using an online messaging application. Over the next two weeks, Arnold sent the undercover officer multiple videos of child pornography, boasting that he had “hundreds more” such videos, and arranged with the undercover officer to travel to the District of Columbia for the purpose sexually abusing a child. On November 5, 2020, Arnold traveled from Virginia to Washington, D.C. When he arrived, he was arrested by law enforcement. This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Valuable assistance was provided by the FBI’s Baltimore Field Office, the U.S. Postal Inspection Service, and the Prince George’s County, Maryland Police Department. In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and the Metropolitan Police Department’s (MPD) Youth Investigations Division. They also commended the work of Assistant U.S. Attorneys Caroline Burrell and Jocelyn Bond, and former Assistant U.S. Attorney Kenya Davis, who prosecuted the case. This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Mason City Woman Sentenced to Federal Prison for Distributing Methamphetamine

component: USAO - Iowa, Northern

body_text: A woman who sold methamphetamine in the Mason City area was sentenced today to more than 5 years in federal prison. Tara Graham, age 42, from Mason City, Iowa, received the prison term after a January 12, 2023, guilty plea to three counts of distribution of a controlled substance. At the plea hearing, Graham admitted that in November of 2022, she sold methamphetamine in up to ounce quantities to a confidential source on three separate occasions in Mason City. Graham was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Graham was sentenced to 64 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Graham is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Jack Lammers and investigated by the Cerro Gordo Sheriff’s Office, Clear Lake Police Department, Mason City Police Department, Iowa Department of Narcotics Enforcement, and the North Central Iowa Drug Task Force. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 21-CR-3043. Follow us on Twitter @USAO_NDIA.


title: DEA Operation Last Mile Tracks Down Sinaloa and Jalisco Cartel Associates Operating within the United States

component: Drug Enforcement Administration (DEA)

body_text: DETROIT – More than 3.8 million deadly doses of fentanyl and 201 pounds of methamphetamine were removed from communities in Michigan, Ohio and northern Kentucky during “Operation Last Mile,” a year-long national operation, targeting operatives, associates, and distributors affiliated with the Sinaloa and Jalisco Cartels responsible for the last mile of fentanyl and methamphetamine distribution on our streets and on social media. DEA’s top operational priority is to defeat the Sinaloa and Jalisco Cartels—the two drug cartels based in Mexico that are responsible for the vast majority of the fentanyl and methamphetamine that is killing Americans. In Operation Last Mile, DEA tracked down distribution networks across the United States that are connected to the Sinaloa and Jalisco Cartels. The Operation shows that the Sinaloa and Jalisco Cartels use violent local street gangs and criminal groups and individuals across the United States to flood American communities with huge amounts of fentanyl and methamphetamine, which drives addiction and violence and kills Americans. It also shows that the Cartels, their members, and their associates use social media applications—like Facebook, Instagram, TikTok, and Snapchat—and encrypted platforms—like WhatsApp, Telegram, Signal, Wire, and Wickr—to coordinate logistics and reach out to victims. Nationally, Operation Last Mile comprised 1,436 investigations conducted from May 1, 2022 through May 1, 2023, in collaboration with federal, state and local law enforcement partners, and resulted in 3,337 arrests and the seizure of nearly 44 million fentanyl pills, more than 6,500 pounds of fentanyl powder, more than 91,000 pounds of methamphetamine, 8,497 firearms, and more than $100 million. The fentanyl powder and pill seizures equate to nearly 193 million deadly doses of fentanyl removed from communities across the United States, which have prevented countless potential drug poisoning deaths. Among these investigations, more than 1,100 cases involved social media applications and encrypted communications platforms, including Facebook, Instagram, TikTok, Snapchat, WhatsApp, Telegram, Signal, Wire, and Wickr. “The Sinaloa and Jalisco Cartels use multi-city distribution networks, violent local street gangs, and individual dealers across the United States to flood American communities with fentanyl and methamphetamine, drive addiction, fuel violence, and kill Americans,” said Administrator Milgram. “What is also alarming—American social media platforms are the means by which they do so. The Cartels use social media and encrypted platforms to run their operations and reach out to victims, and when their product kills Americans, they simply move on to try to victimize the millions of other Americans who are social media users.” The Detroit Division, responsible for DEA operations in Michigan, Ohio and northern Kentucky, made 16 arrests and seized 20,636 fentanyl pills, 151 pounds of fentanyl powder, $5,809,597 in cash & assets, 201 pounds of methamphetamine and 360 firearms. The fentanyl seizures could provide a deadly dose to more than 3.8 million people. Operation Last Mile is an example of DEA’s network-based approach to take out Sinaloa and Jalisco Cartel members and associates in the United States and across the globe, stop fentanyl, and save American lives. In April 2023, the DEA and our federal partners announced the indictment of 28 members and associates of the Sinaloa Cartel operating in Mexico, China, and Central America, including the leaders of the Cartel known as the “Chapitos.”


title: Member of FBI Imposter Ring that Intimidated, Defrauded Victims Sentenced to Federal Prison

component: USAO - Florida, Southern

body_text: MIAMI – Reinaldo Miralles Gonzalez, 52, of Doral, Florida, has been sentenced to 30 months in federal prison and ordered to pay $123,000 in restitution after pleading guilty late last year to conspiracy to commit mail fraud. Gonzalez was part of a fraud scheme that targeted mostly elderly users of a money transfer service. Fraudsters would contact users of the service, identify themselves as FBI agents (using the names of real agents), and scare the users into believing that the FBI had identified them as financial supporters of terrorism. Threatening legal action, and in one case deportation, the fraudsters tricked the victims into mailing blank money orders to addresses associated with Gonzalez. Some victims were repeatedly victimized and forced to take funds from retirement accounts to satisfy the demands. U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, made the announcement. This case was investigated by FBI Miami, as part of the Transnational Elder Fraud Strike Force. Assistant U.S. Attorney Lois Foster-Steers prosecuted it. Assistant U.S. Attorney Daren Grove is handling asset forfeiture. Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice . The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846 . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20456. ###


title: Cincinnati man sentenced to one year & one day in prison for pandemic relief fraud

component: USAO - Ohio, Southern

body_text: CINCINNATI – Marcus Hawkins, 35, of Cincinnati, was sentenced in U.S. District Court today to 12 months and one day in prison for COVID-19 relief fraud. As part of his conviction, Hawkins will pay $60,000 in restitution to the Small Business Administration. According to court documents, Hawkins applied for several loans in July 2020 under the Economic Injury Disaster Loan program, which was expanded under the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide payments for businesses temporarily experiencing a loss due to the pandemic. At the time, Hawkins was self-employed, occasionally doing business as DSR Studio or DSR Studios. In one application, Hawkins claimed his business – DSR Studio – was in the agriculture industry and employed 10 workers. Less than three weeks later, Hawkins submitted another false application, claiming his business – DSR Studios – was in the entertainment services industry and employed five workers. In reality, Hawkins did not have any employees. In both applications, Hawkins fraudulently inflated the gross revenues of the business. The Small Business Administration initially funded an advance in the amount of $10,000 for the business, but later determined the applications were duplicative and likely fraudulent and declined to fund the requested loan amounts. Hawkins also fraudulently applied for a loan under the entity name Road Runner Development LLC and received $50,000. Hawkins pleaded guilty in July 2022 to making false statements to the federal government. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and other members of the Financial Crimes Working Group Pandemic Fraud Committee announced the sentence imposed by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case. # # #


title: Ada Resident Sentenced For Bank Robbery

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Matthew Thomas Pettigrew, age 42, of Ada, Oklahoma, was sentenced to 46 months for Bank Robbery on April 6, 2023. The charge arose from an investigation by the Ada Police Department and the Federal Bureau of Investigation. On November 15, 2021, Pettigrew entered the Citizens Bank of Ada, a federally insured financial institution, and demanded money. The following day law enforcement officers tracked Pettigrew to a casino, where he was arrested. On March 9, 2022, Pettigrew pleaded guilty to one count of Bank Robbery. The Honorable Charles B. Goodwin, United States District Judge for the Eastern District of Oklahoma, presided over the case and sentenced Pettigrew in Oklahoma City, Oklahoma. Pettigrew was remanded to the custody of the U.S. Marshal at the conclusion of his sentencing. He will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his sentence of incarceration. Assistant United States Attorney Cameron McEwen represented the United States.


title: Pittsburg County Residents Sentenced For Murder In Indian Country And Accessory After The Fact

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Jimmy Holmes Nace, age 50, and Matthew Jennings Vermillion, age 44, both of Pittsburg County, Oklahoma, were sentenced for their roles in a homicide that occurred in Pittsburg County, Oklahoma. Nace was sentenced to 180 months for Murder in Indian Country – Second Degree on May 4, 2023. Vermillion was sentenced to 102 months for Accessory After the Fact to the murder on March 27, 2023. The charges arose from an investigation by the Pittsburg County Sheriff’s Office, the Oklahoma State Bureau of Investigation, the U.S. Army Criminal Investigations Command at Joint Base Lewis-McChord in Washington state, and the Federal Bureau of Investigation. On July 3, 2019, Nace assaulted an individual, and—together with Vermillion and a third individual—transported the victim to a rural community cemetery in Vermillion’s truck. Once at the cemetery, Nace and the third individual killed the victim before Nace lit the body on fire. On January 20, 2022, Vermillion pleaded guilty to one count of Accessory After the Fact to a murder. On March 14, 2022, the eve of trial, Nace pleaded guilty to one count of Murder in Indian Country – Second Degree. “The cooperative efforts of county, state, and federal law enforcement agencies investigating this horrible crime resulted in the defendants being prosecuted and imprisoned for their actions,” said United States Attorney Christopher J. Wilson. “Today’s sentencing holds both defendants accountable for the callous and brutal murder of an innocent man,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “We hope it will bring a sense of closure to the victim’s family, while affirming the FBI’s commitment to pursuing justice for those affected by violence.” The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted this case because the victim was a member of a federally recognized Indian tribe and the crime occurred in Pittsburg County, which is within the boundaries of the Choctaw Nation Reservation and the Eastern District of Oklahoma. The Honorable Ronald A. White, United States District Judge for the Eastern District of Oklahoma, presided over the case and sentenced Nace and Vermillion in Muskogee, Oklahoma. Nace and Vermillion were remanded to the custody of the U.S. Marshal at the conclusion of their sentencing. They will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve their sentence of incarceration. Assistant United States Attorney Cameron McEwen represented the United States.


title: Federal Jury Convicts Adair County Resident Of Two Counts Of Aggravated Sexual Abuse

body_text: MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Jerry Wayne Asbill, Jr., age 42, of Adair County, Oklahoma was found guilty by a federal jury of two counts of Aggravated Sexual Abuse in Indian Country. The jury trial began with testimony on Monday, May 8, 2023, and concluded on Wednesday, May 10, 2023, with the guilty verdicts. During the trial, the United States presented evidence that the defendant took a child to a hotel and molested the child there in November of 2018. The government was able to corroborate the hotel stay through various records. The guilty verdicts were the result of investigations by the Adair County Sheriff’s Office and the Federal Bureau of Investigation. The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation of Oklahoma and the Eastern District of Oklahoma. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . The Honorable Kea W. Riggs, U.S. District Judge in the United States District Court for the District of New Mexico, sitting by assignment in the Eastern District of Oklahoma, presided over the trial in Muskogee and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. The defendant was remanded to the custody of the United States Marshal and will remain in custody until the sentencing hearing. Assistant United States Attorneys Morgan Muzljakovich and Nicole Paladino represented the United States.


title: Leader of Large-Scale Methamphetamine Distribution Conspiracy Sentenced to 490 Months in Prison

component: USAO - Kentucky, Eastern

body_text: LEXINGTON, Ky. — A Lexington man, Craig Dupree Robertson, 34, was sentenced on Monday to 490 months in federal prison, by Chief U.S. District Judge Danny Reeves for his role in a large-scale methamphetamine and fentanyl trafficking conspiracy. According to court documents, from October 2020 until September 2021, Robertson and his co-defendants conspired to distribute large quantities of methamphetamine and fentanyl in the Eastern District of Kentucky. The defendants maintained “stash” residences, throughout Lexington, to store and distribute the drugs. Law enforcement made multiple controlled buys of methamphetamine and fentanyl from the co-defendants, as well as seizing ounce and pound quantities of the drugs during traffic stops and through search warrants. On September 23, 2021, law enforcement executed search warrants at several of the “stash” locations. At one such residence, law enforcement agents seized approximately 957 grams of fentanyl, 418 grams of methamphetamine, a money counting machine, two firearms, two digital scales, a metal press used to manufacture controlled substances, vacuum seal bags, and other items pertaining to the manufacturing and distribution of controlled substances. At a second “stash” location, a storage unit, agents seized 15 pounds of methamphetamine. On many of the occasions from October 2020 to August 2021, the defendants would deposit drug proceeds into bank accounts for transfer of those proceeds to other co-conspirators via mobile transfer applications, in order to continue to operate their drug trafficking activities. Robertson’s co-defendants were sentenced to the following, for their roles in the conspiracy: Brenda Nicole Fugate received 165 months; Casey Ryan Creech received 180 months; Tony Christopher Fugate received 84 months; Houston Paul Johnson received 230 months; Pamela Smith Baker received 120 months; Angela Marie Halsey received 94 months; Michael Dustin Johnson received 115 months; Patricia Ann Morgan received 96 months; Curtis Dewayne Miller received 320 months; and Carl Hunt received 188 months. Under federal law, Robertson and his co-defendants must serve 85 percent of their prison sentences. In addition to their prison sentences, each will be under the supervision of the U.S. Probation Office for five years – with the exception of Morgan, who will be under supervision for three years. Upon his release from prison, Robertson will be under the supervision of the U.S. Probation Office for life. Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF Louisville Field Division; J. Todd Scott, Special Agent in Charge, DEA Louisville Field Division; Lesley Allison, Special Agent in Charge, United States Postal Inspection Service Pittsburgh Field Division; Commander Kalan Perdue, Gateway High Intensity Drug Trafficking Area (HIDTA); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences. The investigation was conducted by ATF, DEA, USPIS, and Gateway AHITDA Task Force, with assistance from Lexington Police Department. The United States was represented by Assistant U.S. Attorneys Todd Bradbury and Cynthia Rieker. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. -END-


title: Third Defendant Sentenced for Fentanyl-laced Pills  Purchased through Social Media Platforms

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – A Norton, Virginia woman, who sold pressed pills containing fentanyl purchased via social media platforms, was sentenced yesterday in U.S. District Court in Abingdon to 36 months in federal prison. Cheyenne Cassie Carico, 20, pleaded guilty in June 2022 to one count of conspiring to distribute and possession with the intent to distribute 40 grams or more of fentanyl. As part of the same conspiracy, Paul Mason Perkins, 21, of Big Stone Gap, Virginia, was sentenced to 42 months, and Austin Jeremiah Lane, 23, of Norton, Virginia, was sentenced to 36 months earlier this year. According to court documents, between February 2021 and February 2022, Perkins used the social media platforms Snapchat and Instagram to purchase thousands of pressed pills containing fentanyl every few weeks from a dealer located in California. Perkins had the pills mailed to his residence in Big Stone Gap where he then redistributed the pills to other individuals throughout Wise County, including multiple sales to co-conspirators Lane and Carico. United States Attorney Christopher R. Kavanaugh, Michael Weddel, Acting Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Tommy D. Coke, Inspector in Charge of the U.S. Postal Inspection Service - Atlanta Division made the announcement. The Wise County Sheriff’s Office, the Norton Police Department, the Southwest Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the United States Postal Inspection Service investigated the case. Assistant U.S. Attorney Lena Busscher prosecuted the case.


title: Leader of Queens-Based "Wood City" Gang Convicted of Revenge Killing Over Stolen Necklace

component: USAO - New York, Eastern

body_text: A federal jury in Brooklyn returned a guilty verdict late yesterday afternoon against Christopher Acevedo, the leader of “Wood City,” a violent criminal enterprise which also used the names “Yellow Tape Boyz” and “YTB,” of murder in-aid-of racketeering and causing death through the use of a firearm in connection with the August 26, 2019 fatal shooting of a rival gang associate. The verdict followed a three-week trial before United States District Judge Diane Gujarati. When sentenced, Acevedo faces a mandatory term of life imprisonment. Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict. “How senseless it was for Acevedo to callously take a human life to maintain and burnish his status as the leader of a violent street gang whose members felt insulted by the taking of a piece of jewelry,” stated United States Attorney Peace. “With today’s verdict, the defendant will spend the rest of his life in prison. Protecting our communities from gang and gun-related violence is a priority of my Office and I commend the attorneys, Special Agents, and detectives whose work brought the defendant to justice.” Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their exemplary investigative work on the case. Mr. Peace also thanked the FBI Safe Streets Task Force for its assistance with the case. The evidence at trial established that since at least 2010, the Wood City gang has been engaged in racketeering activity, including murder, drug trafficking, and various forms of fraud and identity theft. Acevedo was the founder and leader of the gang which was so named because many of its members lived around Woodhull Avenue in Jamaica, New York. Since at least 2011, Wood City has been involved in a war with rival “Snow Gang,” another violent gang based in Queens. During this period, members of Wood City and Snow Gang would regularly taunt and insult each other using social media platforms and phone calls. On August 26, 2019, members of Snow Gang, including one of its leaders, robbed a gold “YTB” chain from a high-ranking member of Wood City while he was at a recording studio in Queens. Shortly after the robbery, the Snow Gang leader posted a photo himself wearing the YTB chain on social media. As a leader of Wood City, Acevedo was expected to retaliate for the chain-snatching to protect his gang’s reputation. The defendant and other Wood City members drove to Snow Gang territory and spotted a vehicle with the Snow Gang leader who had robbed the chain and other members and associates of Snow Gang. After following that vehicle to the front of a deli in the vicinity of 140th Avenue and Springfield Boulevard, Acevedo pulled alongside the vehicle and fired a dozen shots, killing the driver David Hutchinson. This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys James P. McDonald, Kayla C. Bensing, and Benjamin Weintraub are in charge of the prosecution with the assistance of Paralegal Specialist Brittany Wissel. The Defendant: CHRISTOPHER ACEVEDO Age: 28 Jamaica, New York E.D.N.Y. Docket No. 21-CR-162 (DG)


title: Summer camps must modify policies to accommodate children with disabilities

component: USAO - Georgia, Northern

body_text: ATLANTA - Parents are making plans to send their children to summer camps as the school year comes to an end. To ensure that children with disabilities can attend summer camps in the same way as children without disabilities, the U.S. Attorney’s Office announced today that it has sent the attached flyer to summer camps located within the Northern District of Georgia to remind these groups of their legal obligations under the Americans with Disabilities Act (ADA). “Summer camps provide fun and important developmental opportunities for children and offer parents and caregivers a safe place for their children to socialize with one another during the summer,” said U.S. Attorney Ryan K. Buchanan. “Children with disabilities deserve an equal opportunity to safely participate in camp activities and programs. This is not an option; it is the law.” Under the ADA, summer camps, whether private or run by municipalities and counties, must afford reasonable modifications to ensure that children with disabilities can participate fully in camp programs and activities. Camps must evaluate each child on an individual basis and train their staff in the requirements of the ADA. Camps must also pay for the cost of any reasonable modifications necessary for a child with a disability to participate in camp activities. For more information, please visit www.ada.gov or call our Civil Rights Hotline at (404) 581-4626. For inquiries, please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Hospital Owner and Hospitalist Group Agree to Pay $560K to Settle False Claims Act Allegations

component: USAO - Connecticut

body_text: The United States Attorney for the District of Connecticut and the Connecticut Office of the Attorney General today announced that YALE NEW HAVEN HEALTH SERVICES CORP. and NORTHEAST MEDICAL GROUP, INC. have entered into a civil settlement agreement with the federal and state governments and have paid $560,718.48 to resolve allegations that they violated the federal and state False Claims Acts for submitting false claims to Medicare and Medicaid for services billed by physicians when, in fact, the services should have been billed by mid-level providers at a lower reimbursement rate. Yale New Haven Health Services Corp. (“Yale”) is a nonprofit health system that owns several acute-care hospitals, including Bridgeport Hospital. Northeast Medical Group, Inc. (“Northeast Medical”) employs internal medicine hospitalist physicians and mid-level providers (i.e., advanced practice nurse practitioners and physician assistants) at Bridgeport Hospital. Northeast Medical is an affiliate of Yale, and outsources its billing, coding, and compliance to Yale. The federal and state governments allege that, between July 2014 and June 2020, Yale and Northeast Medical violated the federal and state False Claims Acts by submitting false claims to Medicare and Medicaid for evaluation and management services billed by Northeast Medical hospitalist physicians to Bridgeport Hospital patients that did not satisfy certain billing requirements and, instead, should have been billed by mid-level providers. As a result, Yale and Northeast Medical improperly received 10 to 15 percent higher in Medicare and Medicaid reimbursements for the allegedly falsely billed hospitalist physician services. To resolve their liability, Yale and Northeast Medical have paid $560,718.48. The False Claims Act allegations resolved by the settlement were originally brought in a lawsuit filed by a whistleblower under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The relator (whistleblower), a former employee of Northeast Medical, will receive $106,536.51 as her share of the recovery. The case resolved by this settlement was captioned U.S. ex rel. Cadariu v. Northeast Medical Group et al. (Docket No. 19-cv-904). This matter was investigated by the Office of Inspector General for the Department of Health and Human Services. The case is being prosecuted by Assistant U.S. Attorney Sarah Gruber, and by Assistant Attorney General Rick Porter of the Connecticut Office of the Attorney General. People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.


title: Justice Department Announces Court-Authorized Disruption of the Snake Malware Network Controlled by Russia's Federal Security Service

body_text: The Justice Department today announced the completion of a court-authorized operation, codenamed MEDUSA, to disrupt a global peer-to-peer network of computers compromised by sophisticated malware, called “Snake,” that the United States Government attributes to a unit within Center 16 of the Federal Security Service of the Russian Federation (FSB). For nearly 20 years, this unit, referred to in court documents as “Turla,” has used versions of the Snake malware to steal sensitive documents from hundreds of computer systems in at least 50 countries, which have belonged to North Atlantic Treaty Organization (NATO) member governments, journalists, and other targets of interest to the Russian Federation. After stealing these documents, Turla exfiltrated them through a covert network of unwitting Snake-compromised computers in the United States and around the world. Operation MEDUSA disabled Turla’s Snake malware on compromised computers through the use of an FBI-created tool named PERSEUS, which issued commands that caused the Snake malware to overwrite its own vital components. Within the United States, the operation was executed by the FBI pursuant to a search warrant issued by United States Magistrate Judge Cheryl L. Pollak of the Eastern District of New York, which authorized remote access to the compromised computers. This morning, the Court unsealed redacted versions of the affidavit submitted in support of the application for the search warrant, and of the search warrant issued by the Court. For victims outside the United States, the FBI is engaging with local authorities to provide both notice of Snake infections within those authorities’ countries and remediation guidance. Merrick B. Garland, United States Attorney General; Breon Peace, United States Attorney for the Eastern District of New York; Lisa O. Monaco, Deputy Attorney General of the Justice Department; and Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, announced the operation. “The Justice Department, together with our international partners, has dismantled a global network of malware-infected computers that the Russian government has used for nearly two decades to conduct cyber-espionage, including against our NATO allies,” stated Attorney General Garland. “We will continue to strengthen our collective defenses against the Russian regime’s destabilizing efforts to undermine the security of the United States and our allies.” “Russia used sophisticated malware to steal sensitive information from our allies, laundering it through a network of infected computers in the United States in a cynical attempt to conceal their crimes. Meeting the challenge of cyberespionage requires creativity and a willingness to use all lawful means to protect our nation and our allies,” stated United States Attorney Peace. “The court-authorized remote search and remediation announced today demonstrates my Office and our partners’ commitment to using all of the tools at our disposal to protect the American people.” “Through a high-tech operation that turned Russian malware against itself, U.S. law enforcement has neutralized one of Russia’s most sophisticated cyber-espionage tools, used for two decades to advance Russia’s authoritarian objectives,” stated Deputy Attorney General Monaco. “By combining this action with the release of the information victims need to protect themselves, the Justice Department continues to put victims at the center of our cybercrime work and take the fight to malicious cyber actors.” “The operation we announced today successfully disrupted the foremost cyber espionage tool of the Russian government. For two decades, the malware allowed Russian Intelligence to compromise computer systems and steal sensitive information - harming not only the United States Government and our allies but also private sector organizations. This action should serve as a reminder to Russia and any other hostile nation willing to steal information, the FBI and our partners are united in our efforts to protect our countries,” stated FBI Assistant Director-in-Charge Driscoll. “For 20 years, the FSB has relied on the Snake malware to conduct cyberespionage against the United States and our allies – that ends today,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will use every weapon in our arsenal to combat Russia’s malicious cyber activity, including neutralizing malware through high-tech operations, making innovative use of legal authorities, and working with international allies and private sector partners to amplify our collective impact.” As detailed in court documents, the U.S. government has been investigating Snake and Snake-related malware tools for nearly 20 years. The U.S. government has monitored FSB officers assigned to Turla conducting daily operations using Snake from a known FSB facility in Ryazan, Russia. Although Snake has been the subject to several cybersecurity industry reports throughout its existence, Turla has applied numerous upgrades and revisions, and selectively deployed it, all to ensure that Snake remains the FSB’s most sophisticated long-term cyberespionage malware implant. Unless disrupted, the Snake implant persists on a compromised computer’s system indefinitely, typically undetected by the machine’s owner or authorized users. The FBI has observed Snake persist on particular computers despite a victim’s efforts to remediate the compromise. Snake provides its Turla operators the ability to remotely deploy selected malware tools to extend Snake’s functionality to identify and steal sensitive information and documents stored on a particular machine. Most importantly, the worldwide collection of Snake-compromised computers acts as a covert peer-to-peer network, which utilizes customized communication protocols designed to hamper detection, monitoring, and collection efforts by Western and other signals intelligence services. Turla uses the Snake network to route data exfiltrated from target systems through numerous relay nodes scattered around the world back to Turla operators in Russia. For example, the FBI, its partners in the U.S. Intelligence Community, together with allied foreign governments, have monitored the FSB’s use of the Snake network to exfiltrate data from sensitive computer systems, including those operated by NATO member governments, by routing the transmission of these stolen data through unwitting Snake-compromised computers in the United States. As described in court documents, through analysis of the Snake malware and the Snake network, the FBI developed the capability to decrypt and decode Snake communications. With information gleaned from monitoring the Snake network and analyzing Snake malware, the FBI developed a tool, named PERSEUS, that establishes communication sessions with the Snake malware implant on a particular computer, and issues commands that causes the Snake implant to disable itself without affecting the host computer or legitimate applications on the computer. Today, to empower network defenders worldwide, the FBI, the National Security Agency, the Cybersecurity and Infrastructure Security Agency, the U.S. Cyber Command Cyber National Mission Force, and six other intelligence and cybersecurity agencies from each of the Five Eyes member nations, issued a joint cybersecurity advisory (the “Joint Advisory”) with detailed technical information about the Snake malware that will allow cybersecurity professionals to detect and remediate Snake malware infections on their networks. The Joint Advisory is available here . The FBI and U.S. Department of State are also providing additional information to local authorities in countries where computers that have been targeted by the Snake malware have been located. Although Operation MEDUSA disabled the Snake malware on compromised computers, victims should take additional steps to protect themselves from further harm. The operation to disable Snake did not patch any vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks. The Department of Justice strongly encourages network defenders to review the Joint Advisory for further guidance on detection and patching. Moreover, as noted in court documents, Turla frequently deploys a “keylogger” with Snake that Turla can use to steal account authentication credentials, such as usernames and passwords, from legitimate users. Victims should be aware that Turla could use these stolen credentials to fraudulently re-access compromised computers and other accounts. The FBI is providing notice of the court-authorized operation to all owners or operators of the computers remotely accessed pursuant to the search warrant. The criminal investigation into the FSB’s use of the Snake malware is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Ian C. Richardson is in charge of the investigation, with assistance from the National Security Division’s Counterintelligence and Export Control Section. The efforts to disrupt the Snake malware network were led by the FBI’s New York Field Office, FBI’s Cyber Division, the U.S. Attorney’s Office for the Eastern District of New York, and the National Security Division’s Counterintelligence and Export Control Section. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section. Those efforts would not have been successful without the partnership of numerous private-sector entities, including those victims who allowed the FBI to monitor Snake communications on their systems. The Search Warrant : In the Matter of the Search of Information Associated with Computers Constituting the Snake Malware Network Eastern District of New York Docket No. 23-MJ-0428 (CLP)


title: Drug Testing Companies Agree To Collectively Pay  $1.7 Million to Resolve False Claims Act Allegations

body_text: LEXINGTON, Ky. — Two Kentucky-based businesses involved in performing urine drug tests for the family court system have agreed to collectively pay $1,740,620 to resolve civil allegations that they improperly billed those tests to Medicare and Kentucky Medicaid. Blue Waters Assessment and Testing Services, LLC (“BATS”) is a Lexington-based business that provides services relating to urine drug testing, including the collection of specimens from individuals who were ordered by the Fayette County family courts to receive such testing as part of their court cases. BATS sent the specimens to VerraLab JA, LLC, a clinical laboratory based in Louisville that does business under the name BioTap Medical (“BioTap”). BioTap performed the urine drug tests and billed them to Kentucky Medicaid and Medicare. Billing these tests to Kentucky Medicaid and Medicare violated the False Claims Act, a federal law that prohibits the submission of false or fraudulent claims for payment to the federal government, because Medicaid and Medicare only pay for laboratory tests used for purposes of medical diagnosis or treatment. Medicare and Medicaid – as federally-funded health insurance programs – do not pay for tests performed for non-medical reasons, such as those that are performed only to satisfy a court order. In fact, Medicaid’s regulations explicitly prohibit reimbursement for laboratory tests, such as urine drug tests, that were ordered by a court. The Government alleged that BioTap knew that the urine drug tests at issue were court-ordered, and not used for medical diagnosis or treatment, but billed those tests to Medicare and Medicaid anyway. As a result, BioTap received reimbursements from Medicare and Medicaid to which it was not entitled. Under the terms of the Settlement Agreements, BioTap agreed to pay $1,490,620 to resolve allegations it submitted false claims. BATS and its owner, David Waters, agreed to pay $250,000 for their alleged roles in causing the submission of false claims; the settlement with BATS and Waters was pursuant to the Department of Justice’s inability-to-pay policy. “The federal Medicaid and Medicare programs are designed – and funded – to provide health care benefits to eligible individuals with a medical necessity,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “These lab tests were not medically necessary and were improperly billed to these programs. It is important to all of us that steps are taken to return such misapplied funds to their appropriate purpose – providing medical care.” “Submitting false claims to Medicare or Medicaid wastes taxpayer dollars and undermines the integrity of those programs," said Tamala E. Miles, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to ensuring that those who attempt to take valuable resources away from their intended recipients are held accountable.” The settlements resolve a lawsuit brought by two private citizens under the qui tam provisions of the False Claims Act. Under those provisions, a private party can file a civil action on behalf of the United States, thereby bringing allegations of fraud to the Government’s attention, and share in any financial recovery. As part of this resolution, the individuals who filed the qui tam complaint will receive approximately $295,000 from the settlements. This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Affirmative Civil Enforcement section of the U.S. Attorney’s Office. Assistant United States Attorney Christine Corndorf represented the United States. This case is captioned United States ex rel. Nam Nguyen & Misty Nall v. Blue Waters Assessment & Testing Services, LLC; Crossroads Counseling Services, Inc.; David Waters; and VerraLab JA, LLC , Case No. 5:21-CV-00297-DCR. The claims resolved by the settlements are allegations only, and there has been no determination of liability. – END –


title: Durham Man Sentenced for Firearms Charges after Fleeing from Highway Patrol

component: USAO - North Carolina, Middle

body_text: GREENSBORO – A Durham man was sentenced today to 5 years in prison, after pleading guilty to firearms charges stemming from two incidents in 2022, announced United States Attorney Sandra J. Hairston. According to court documents, JHAMAR ORATAVIO DAWSON, also known as “Smoke”, age 22, fled from a North Carolina State Highway Patrol trooper on June 21, 2022, after nearly colliding with the trooper’s car at a traffic light in Durham. As he fled, DAWSON reached a speed of 75mph in a 45mph zone and drove toward oncoming traffic. At the intersection of E. Club Blvd. and Dearborn Dr., DAWSON’s car skidded into a ditch, went airborne, and burst into flames. DAWSON and an unidentified passenger fled on foot. The trooper pursued them and caught DAWSON. Law enforcement officers found a handgun on the driver’s seat of the car driven by DAWSON. DAWSON was arrested on state charges. DAWSON was previously convicted of felony flee to elude arrest in a motor vehicle in December 2021 in Durham County Superior Court and was therefore prohibited from possessing a firearm. In October 2022, the Federal Bureau of Investigation (FBI) Safe Streets Task Force arrested DAWSON at an apartment in Wake County, NC for possessing a firearm in June. During DAWSON’s arrest, FBI agents discovered a stolen firearm, a large amount of cash, and small bags of suspected controlled substances. DAWSON was charged both in the Middle District of North Carolina and the Eastern District of North Carolina with a violation of Title 18, United States Code, Section 922(g)(1), felon in possession of a firearm. DAWSON pleaded guilty to both counts in the Middle District of North Carolina on January 17, 2023. DAWSON is facing additional charges in Wayne County, NC stemming from a July 2020 incident, including felony flee to elude arrest in a motor vehicle, possession of a stolen firearm, and assault with a deadly weapon on a government official. DAWSON was sentenced today to a 60-month term of imprisonment by the Honorable William L. Osteen, Jr., United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, DAWSON was ordered to serve a three-year term of supervised release and to pay a special assessment of $200.00. The cases were investigated by the Federal Bureau of Investigation Safe Streets Task Force, the North Carolina State Highway Patrol, and the Durham Police Department, and are being prosecuted by Middle District of North Carolina Assistant United States Attorney Eric Iverson with assistance from the Eastern District of North Carolina. ###


title: Robber of St. Louis County Store Sentenced to 130 months in Prison

body_text: ST. LOUIS – U.S. District Judge Ronnie L. White on Tuesday sentenced a robber who stole from a Kohl’s store in Manchester, Missouri to 130 months in prison. Mercedes W. Gregory, 34, of St. Louis, pleaded guilty in U.S. District Court in St. Louis in February to one count of robbery and one count of being a felon in possession of a firearm. Gregory admitted placing multiple items of clothing in a cart and walking out of the Kohl’s store just before 1:30 p.m. on July 12, 2021. A loss prevention officer followed until Gregory said, “If you keep following me, I’m going to shoot you.” Gregory left in a white Chevrolet. Photo submitted in a court filing. That night, officers with the St. Louis Metropolitan Police Department spotted the car at a gas station in St. Louis. Gregory ran but was caught. Officers found a Taurus handgun in Gregory’s satchel. The Kohl’s merchandise was in the trunk. Gregory has two prior robbery convictions, a 2008 case in St. Louis County and a 2013 case in St. Louis. Gregory’s parole in the 2013 case ended 11 days before the Kohl’s robbery. The case was investigated by the Manchester Police Department, the FBI and the St. Louis Metropolitan Police Department. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.


title: Doctor Admits Telemedicine Fraud in St. Louis

body_text: ST. LOUIS – A doctor from Kansas pleaded guilty in U.S. District Court in St. Louis Tuesday and admitted ordering millions of dollars’ worth of unnecessary and expensive genetic tests and orthotic braces for thousands of patients as part of a telemedicine fraud scheme. Dr. Gautam Jayaswal, 64, of Overland Park, pleaded guilty in front of U.S. District Judge Henry E. Autrey to one count of conspiracy to commit health care fraud. Dr. Jayaswal has been a licensed medical doctor since 1986, working primarily as an emergency room physician. From 2017 to 2021, he contracted with multiple companies to work as a telemedicine doctor, including Barton & Associates, DialCare Co, Doctegrity, Doctorology LLC, USA Management Resources LLC, Rossiter and Cummaro Enterprises LLC, RAS/Sunshine Medical, Fix Ur Rx, Rocky Mountain Health, LSW Management Solutions, Physician Acquisition Pas and MP Network, his plea agreement says. During that period, Dr. Jayaswal fraudulently ordered one or more orthotic braces for 1,433 patients. The companies used those fraudulent orders to defraud Medicare out of approximately $1.36 million. Between June 2018 and September 2021, Dr. Jayaswal signed orders for medically unnecessary genetic tests. Medicare Part B paid about $14.7 million for the 2,061 patients for whom Dr. Jayaswal was listed as the ordering physician. Dr. Jayaswal faces up to five years in prison, a fine of up to $250,000 or both. He will also be ordered to repay the money. The case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the FBI. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.


title: Las Vegas Man Pleads Guilty To Methamphetamine And Firearms Trafficking Conspiracy

component: USAO - Nevada

body_text: LAS VEGAS – A Las Vegas man pleaded guilty to conspiring with others to traffick methamphetamine and firearms — including a shotgun and machine guns. According to court documents, between July 20, 2022 and September 13, 2022, Charles Sanders, also known as “Cheeze,” 37, conspired with others to distribute 50 grams or more of methamphetamine. Over the course of the conspiracy, he sold at least 500 grams, but less than 1.5 kilograms of methamphetamine. Additionally, during this same time period, Sanders sold 25 firearms, including a shotgun and three machine guns. Sanders pleaded guilty on May 4, 2023, to one count of conspiracy to distribute a controlled substance and one count of trafficking firearms. United States District Judge Andrew P. Gordon scheduled sentencing for August 16, 2023. Sanders faces the statutory minimum penalty of five years in prison and a maximum penalty of 40 years in prison for conspiracy to distribute a controlled substance; and a statutory maximum penalty of 15 years in prison for trafficking firearms. He also faces a term of supervised release, a fine, and a special assessment. United States Attorney Jason M. Frierson for the District of Nevada, Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Acting Special Agent in Charge Christopher Miller for Homeland Security Investigations (HSI) made the announcement. The ATF, HSI, and the Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Kimberly Sokolich prosecuted the case. This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . ###