title: Las Vegas Police Officer Convicted Of Committing Three Casino Robberies

component: USAO - Nevada

body_text: LAS VEGAS – A federal jury today convicted a Las Vegas Metropolitan Police Department (LVMPD) officer of robbing three casinos and stealing approximately $164,000 in total. Caleb Mitchell Rogers (33) was found guilty of three counts of interference with commerce by robbery and one count of brandishing a firearm during and in relation to a crime of violence. United States District Judge Andrew P. Gordon presided over the trial. A sentencing date has been scheduled for October 12, 2023. According to court documents and evidence presented during the four-day trial, Rogers stole approximately $73,810 from a casino in the western part of Las Vegas on November 12, 2021. A few months later, on January 6, 2022, he robbed a casino in North Las Vegas of approximately $11,500. In both robberies, he walked directly to the casino’s cashier cage and demanded money from the cashiers. The third robbery occurred on February 27, 2022, in which Rogers ran toward two casino employees in the sportsbook area and yelled: “Get away from the money. I’ve got a gun. I will shoot you!” Rogers climbed over the counter and shoved one of the employees to the floor, before grabbing approximately $78,898 and placing it into a bag. Rogers fled when the employees triggered an alarm. As Rogers ran toward the parking garage, a casino security officer tackled him. Rogers drew a .357 caliber revolver and, with his finger on the trigger, threatened: “I’m going to shoot you!” Security officers were able to disarm Rogers and restrain him until LVMPD officers arrived. The officers arrested Rogers and seized his firearm. Checking the revolver’s serial number, officers learned that it belonged to the LVMPD. The statutory maximum penalty is 20 years in prison for each count of interference with commerce by robbery, and life imprisonment for brandishing a firearm during and in relation to a crime of violence. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement. This case was investigated by the FBI and the LVMPD. Assistant United States Attorneys Dan Cowhig and David Kiebler are prosecuting the case. ###


title: DOJ and UW Medical Center - Northwest resolve allegations the medical center violated the Americans with Disabilities Act in caring for patients who are deaf

component: USAO - Washington, Western

body_text: Seattle – University of Washington Medical Center – Northwest (UWMC-NW) will reform its policies and procedures for providing sign-language interpreters, and other assistive devices for patients who are deaf or hard of hearing following a complaint from a patient that such services were not provided during a hospitalization in 2021. UWMC-NW will pay the patient $40,000 in addition to the changes in training, policies, and procedures. “Ensuring effective communication in medical settings has been a top priority in our civil rights work,” said Acting U.S. Attorney Gorman. “Before and after surgery, a patient must be able to understand the medical staff and communicate their level of pain, their concerns, and any questions they have about ongoing care. This settlement clearly lays out the steps for UWMC-NW to comply with the ADA and provide best practices for their patients.” The Americans with Disabilities Act (ADA) mandates that public entities, including healthcare providers, provide auxiliary aids and services free of charge to patients who need them in order to communicate effectively. An investigation by the U.S. Attorney’s Office, Western District of Washington, determined that UWMC-NW failed to provide the complainant with a qualified sign language interpreter necessary to communicate effectively with her on several occasions during her hospital stay in April 2021 including pre-surgical consultation, surgery, and post-surgical care. The hospital did attempt to use a Video Relay Interpreter (VRI) service, but it was ineffective. The settlement requires the hospital to make a number of changes including: UWMC-NW will have a designated ADA Coordinator on duty at all times that the hospital is open to the public. That person will coordinate services and assistive devices for patients who are deaf, deaf-blind, or hard of hearing. The UWMC-NW will enter into contracts with three interpreter services so that they are able to obtain an interpreter in a reasonable period of time. Video Remote Interpreting will be used only if it meets certain guidelines, and will not be used for certain complex or lengthy appointments where in-person interpretation is critical. All staff will be trained on the new procedures including the initial evaluation of whether a patient needs assistive services for communication. The hospital will log the use of assistive devices and services and provide that log to the U.S. Attorney’s Office every six months for review. The hospital will also provide any complaints regarding provision of assistive services. The review by the U.S. Attorney’s Office will continue for the next three years. If the U.S. Attorney’s Office believes the terms of this settlement have been violated it can file suit in U.S. District Court. The investigation and settlement were negotiated by Assistant United States Attorney Matt Waldrop.


title: O.C. Surgeon Sentenced to Over 2 Years in Prison for Accepting Over $300,000 in Illicit Payments to Perform Surgeries at Corrupt Hospital

component: USAO - California, Central

body_text: LOS ANGELES – An Orange County orthopedic surgeon was sentenced today to 33 months in federal prison for accepting more than $315,000 in bribes and kickbacks for performing spinal surgeries at a now-defunct Long Beach hospital whose owner later was imprisoned for committing a massive workers’ compensation insurance fraud. David Hobart Payne, 66, of Irvine, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to a pay a fine of $20,000, and to forfeit $316,597 in ill-gotten gains. At the conclusion of a six-day trial, a federal jury on March 3 found Payne guilty of one count of conspiracy, two counts of honest services wire fraud, and one count of use of an interstate facility in aid of bribery. Michael Drobot – the owner of the Long Beach-based Pacific Hospital – conspired with doctors, chiropractors, and marketers to pay kickbacks and bribes in return for the referral of patients to Pacific Hospital for spinal surgeries and other medical services. These services and surgeries were paid for primarily through the California workers’ compensation system. During its final five years, the scheme resulted in the submission of more than $500 million in medical bills for spinal surgeries involving kickbacks. Payne received bribes from Drobot of up to $15,000 for each spinal surgery that he performed at Pacific Hospital. The top bribe payment was for lumbar spinal surgeries Payne performed on patients at Pacific Hospital with implants from one of Drobot’s companies. Drobot and Payne covered up the bribes by disguising them as payments for marketing services and fees based on a sham contract. In total, Payne received more than $315,000 in illegal payments. In April 2013, law enforcement searched Pacific Hospital, which was sold later that year, bringing the kickback scheme to an end. To date, 24 defendants, among them multiple physicians, have been convicted for participating in the kickback scheme. In 2018, Drobot was sentenced to 63 months in federal prison. “Bribe schemes like [Payne’s] cause an insidious harm that lingers for years, leaving victim-patients wondering whether their surgeries were necessary or whether the unethical doctors and hospital executives who treated them as commodities also agreed to implant substandard medical hardware in their bodies,” prosecutors wrote in a sentencing memorandum. The FBI, IRS Criminal Investigation, United States Postal Service Office of Inspector General, and the California Department of Insurance investigated this matter. First Assistant United States Attorney Joseph T. McNally, Assistant United States Attorneys Billy Joe McLain of the Public Corruption and Civil Rights Section, and Hava Mirell of the Violent and Organized Crime Section prosecuted this case.


title: Man Who Sexually Abused 5-Year-Old Sentenced to 20 Years in Prison for Child Pornography

component: USAO - Texas, Northern

body_text: A Snyder, Texas man who recorded himself sexually abusing a 5-year-old child was sentenced yesterday to 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Shemar Cameron Green, 20, was indicted in December 2022 and pleaded guilty in March 2023 to transportation of child pornography. He was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who also ordered the defendant to register as a sex offender and to pay $17,500 in restitution to identifiable child pornography victims. According to plea papers, Mr. Green admitted he sent sexually explicit images of himself to multiple minors, received nude photographs from minors, and produced a video of himself molesting a 5-year-old. He further admitted that he regularly viewed pornographic images of children under age 10, and uploaded several sexually explicit images of prepubescent children from his computer to his social media accounts. The National Center for Missing and Exploited Children relayed a cyber tip from a social media company that housed Mr. Green’s account to law enforcement, prompting the investigation. The Snyder Police Department, the Texas Department of Public Safety, and the Federal Bureau of Investigation’s Dallas Field Office – Lubbock Resident Agency conducted the investigation. Assistant U.S. Attorney Callie Woolam prosecuted the case.


title: Knoxville Man Sentenced To 24 Months In Prison And Ordered To Repay $411,963 For Health Care Fraud Scheme

component: Federal Bureau of Investigation (FBI)

body_text: KNOXVILLE, Tenn. – On July 14, 2023, Ian P. Clarke, 43, currently of Knoxville, was sentenced to 24 months in prison by the Honorable Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville. As part of the plea agreement filed with the court, Clarke agreed to plead guilty to conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349. Judge Crytzer ordered Clarke to pay restitution to Medicare in the amount of $411,963, and a fine of $44,258. Following his imprisonment, Clark will be on supervised release for two years. As set forth in the filed plea agreement, Clarke was responsible for the day-to-day operations of TN Premier Care, a medical clinic in East Tennessee. Clarke paid kickbacks to coconspirators in exchange for signed doctors’ orders for durable medical equipment (“DME”) that was medically unnecessary. TN Premier Care provided the DME to Medicare beneficiaries across the country who did not want or need it. Clarke then caused the DME orders to be submitted to Medicare for reimbursement on behalf of TN Premier Care. The DME orders were obtained from “leads,” which consisted of a recorded call between a call-center employee or telemarketer and a Medicare beneficiary during which the beneficiary provided their Medicare information. The recordings were provided to doctors who used the information to generate a completed DME order. The doctors who signed the DME orders often did so regardless of medical necessity, in the absence of a preexisting doctor-patient relationship, without a physical examination, and sometimes based solely on a short telephonic conversation. The completed DME orders were uploaded to a shared cloud-based document storage system to which Clarke had access. To conceal the conspiracy, Clarke and his coconspirators created sham contracts and documentation to disguise the kickbacks as legitimate payments for marketing and consulting services. Clarke also opened a separate bank account in TN Premier Care’s name for the purpose of paying kickbacks and receiving reimbursement checks from Medicare. Between in or about July 2018 and in or about May 2019, Clarke caused the submission of approximately $778,429 in claims to Medicare for DME orders on behalf of TN Premier Care, for which Medicare paid to TN Premier Care approximately $411,963. U.S. Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee; U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) Special Agent in Charge Tamala E. Miles; and Federal Bureau of Investigation (FBI) Special Agent in Charge Joseph E. Carrico, made the announcement. This case is the result of an investigation conducted by U.S. Department of Health and Human Services, Office of Inspector General, and the FBI. Assistant United States Attorney William A. Roach, Jr., prosecuted the case. ###


title: Idaho Springs Man Sentenced to Federal Prison for Wire Fraud and Money Laundering

component: USAO - Colorado

body_text: DENVER - The United States Attorney’s Office for the District of Colorado announces that Edward Baker Harrington, age 59, of Idaho Springs, was sentenced to 51 months in prison for wire fraud and money laundering. Harrington was also ordered to pay restitution in the amount of $1,078,033.50. According to the plea agreement, from April 2020 through September 2021, the defendant submitted a number of fraudulent Paycheck Protection Program (PPP) applications to seven banks and one lender on behalf of business entities that he purportedly controlled. These PPP applications contained a number of false and fraudulent certifications and representations. The defendant obtained more than $1,000,000 in PPP loans as a result of the scheme. He falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the proceeds were used for his personal benefit to purchase goods and property, including real estate and vehicles. The defendant submitted PPP loan forgiveness applications in which he made more false representations and certifications regarding his businesses and his compliance with the PPP program rules, including rules related to the eligible uses of PPP loan proceeds. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created PPP, a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules. “The defendant enriched himself with taxpayer funds meant to help workers and businesses weather the COVID-19 pandemic,” said U.S. Attorney Cole Finegan. "Thanks to the efforts of our law enforcement partners at the IRS, he will face the consequences of his fraud.” “Harrington used the Paycheck Protection Program as his personal ATM. He brazenly stole over one million dollars with no regard for the hard-working American business owners and families this program was intended to support,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS-CI has investigated over 1000 instances of Covid-19 relief fraud since the CARES Act was introduced, and this sentence should send a clear message that we will continue to hold those accountable who abused the system for their personal benefit.” This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nicole Cassidy and Martha Paluch. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . Case Number: 22-cr-00324


title: Pueblo Man Sentenced to 12.5 Years in Federal Prison for Possessing Firearm and Distributing Drugs

body_text: DENVER – The United States Attorney’s Office for the District of Colorado announces Leonard Cordova, age 44, of Pueblo, has been sentenced to 151 months in federal prison after earlier pleading guilty to two counts of being a felon in possession of a firearm and ammunition and two counts of distributing a controlled substance. According to the plea agreement and criminal complaint, on September 12, 2021, the defendant, from his driveway in a residential neighborhood in Pueblo, fired numerous shots from a handgun at an individual driving down the street. The defendant was arrested on local charges but then released on bond. One week later, on September 19, 2021, the defendant, while driving his vehicle in Pueblo, fired shots at two individuals in another moving vehicle. The defendant’s victims were hit with rounds from the defendant’s gun and sought treatment at a local hospital. The defendant was again arrested on local charges but then released on bond. The defendant was arrested by the FBI on April 15, 2022, after being charged in the District of Colorado by criminal complaint on April 13, 2022. He was ordered detained pending trial. The defendant pled guilty in federal court on March 7, 2023. As part of his plea agreement, the defendant, a previously convicted felon, admitted to unlawfully possessing a firearm or ammunition in connection with the two September 2021 shootings. He also admitted that on October 19, 2020, he distributed 221 grams of methamphetamine, and on February 19, 2021, he distributed 98 grams of heroin. United States District Court Judge Regina M. Rodriguez sentenced the defendant on July 12, 2023. “Pueblo is a safer place with violent, drug-dealing felons like Leonard Cordova off the streets,” said United States Attorney Cole Finegan. “We are grateful for our partners at the FBI, DEA, and Pueblo Police Department whose hard work and dedication make a real difference for the citizens of Colorado.” “Cases like this one exemplify what the federal system can bring to our local partners: This repeat offender will no longer threaten the Pueblo community,” said FBI Denver Special Agent in Charge Mark Michalek. “The FBI will continue to work with the Pueblo Police Department to further our shared goals.” “The DEA Rocky Mountain Field Division is committed to making our communities safer. We know gun violence is often associated with drug-related activity, which is why these cases are a top priority for us,” said DEA Acting Special Agent in Charge David Olesky. “The community of Pueblo should feel safer tonight knowing this defendant will no longer be a menace to his neighbors.” This case was investigated by the FBI, DEA, and Pueblo Police Department. The prosecution was handled by Assistant United States Attorney Andrea Surratt. The U.S. Attorney’s Office also thanks the 10 th Judicial District Attorney’s office for their assistance with the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. CASE NUMBER: 22-cr-132


title: One Detroit Violence Reduction Partnership to host Second Annual Peacenic at Heilmann Recreation Center

component: USAO - Michigan, Eastern

body_text: DETROIT - More than thirty community organizations and local, state, and federal law enforcement agencies will gather with residents for a second Peacenic at Heilmann Recreation Center on July 15. This follows a very successful Peacenic that was held on July 8 th at O’Hair Park. The events on Saturday at Heilmann will run from 3pm to 7pm. The Peacenics are part of the One Detroit Violence Reduction Partnership’s – Unified Summer Enforcement Strategy, a targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts. The strategy has three components—enforcement, prevention, and reentry. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime which was announced in May. As part of the enhanced enforcement this summer, certain crimes committed in the “hot spot areas” are subject to immediate federal enforcement. On the reentry front, the One Detroit Partnership is holding community roundtables pairing individuals living in the hot spot communities who are on state probation with housing, mental health, and employment resources and giving them the opportunity to engage with individuals who have successfully transitioned from prison back into society. Finally, the Peacenics are a collective gathering of the community and law enforcement to share in food, fellowship and fun in the name of peace that signals the start of our One Detroit prevention efforts. The Peacenics will feature vendors offering a variety of resources including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial and career development programs, expungement assistance and more. Several law enforcement agencies will also be present to engage with the community and recruit to fill vacancies in their organizations. In addition to the resources, there will be bounce houses, face painting, and a 3-on-3 basketball tournament. Tracey Walker, II, from the Detroit Lions will be passing out book bags and doing drills. Adults will be able to join in the fun with Hustle Dance lessons, chess games, and a Spades tournament. New this year is the Thrift Clothing Boutique where residents can shop for gently used clothing. There will also be pizza, sliders, and ice cream available for free for residents at the Peacenics. “I am so excited to be partnering again with so many organizations and individuals who are dedicated to helping improve the lives of the residents of Detroit, stated U.S. Attorney Dawn Ison. “Our first step is making the city peaceful, and the Peacenics are a celebration of the One Detroit Partnership’s multifaceted approach to reducing violence in the city.” “The Peacenic and One Detroit Partnership shows what we can do when we all work together to reduce violence and improve the quality of life in our city,” said Chief James E. White. “This is a great time in the city of Detroit as law enforcement, government, community organizations and residents are coming together to stop violent crime and increase access to resources that can help Detroiters.” Heilmann Recreation Center is located at 19601 Brock Street (9 th Precinct). Members of the media are welcome to attend the event and should contact Gina Balaya at the above email address or contact her directly at (313)226-9758. Participating Organizations City of Detroit •Detroit Police Department •Wayne County Prosecutor’s Office •U.S. Attorney’s Office •8th Precinct Community Relations Council •Black Family Development, Inc. •Brilliant Detroit •Bureau of Alcohol, Tobacco, Firearms and Explosives •Ceasefire Detroit •Ceasefire Outreach •Delta Dental •Detroit at Work •Detroit Health Department •Detroit Housing and Revitalization Department •Detroit Lions •Detroit Pistons •Detroit Public Library •Detroit Public Schools Community District •Detroit Reconnect •Detroit Training Center •Detroit Wayne Integrated Health •Drug Enforcement Administration •Families Against Narcotics •Federal Bureau of Investigations •Goodwill Industries •I Teach Chess •Matrix Human Services Michigan Army National Guard •Michigan Department of Corrections •Michigan Secretary of State •Project Clean Slate •Salvation Army •Team Wellness Center •U.S. Department of Homeland Security •Wayne County Sheriff’s Department •Wayne Metro Hope Program •Wayne State Health Mobile •Youthbuild Detroit


title: District Man Sentenced to 19 Years in Prison  For Following and Fatally Shooting Man in Alleyway

component: USAO - District of Columbia

body_text: WASHINGTON – Keith Hudson, 28, of Washington, D.C., was sentenced today to 19 years in prison for second degree murder while armed in the February 6, 2021, shooting death of Isaiah Glover. Superior Court Judge Anthony C. Epstein also ordered five years of supervised release. The sentence was announced by U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict, of the Metropolitan Police Department. According to the government’s evidence, around 2:40 p.m. on February 6, 2021, the victim was walking on Hunt Place NE, when he turned south onto the 800 block of 42nd Street and encountered the defendant. Hudson was driving a white Buick LeSabre. He drove north on 42nd Street NE past Mr. Glover, then intentionally made a U-turn and drove back south on 42nd Street past Mr. Glover again. Mr. Glover took a right onto Hunt Place SE and headed towards Minnesota Ave. NE. After passing Mr. Glover twice, the defendant drove to Gault Street NE and 42nd Street NE where he parked the vehicle. The defendant got out of his car and walked towards Hunt Place SE and Minnesota Ave., and followed Mr. Glover into the alley behind 4147 Minnesota Ave, NE. Mr. Glover was unaware that he was being followed. The defendant quickly caught up to Mr. Glover. He drew a .40 caliber firearm out of his front hoodie pocket and, just as soon as Mr. Glover realized that the was being followed, the defendant shot Mr. Glover twice. Mr. Glover sustained a life ending injury to his brain. The defendant then ran through a perpendicular alley, back to his car, and fled. Law enforcement and paramedics arrived at the alley and pronounced Isaiah Glover dead at 2:53 pm. “This sentence will remove a dangerous person from our District’s streets for a substantial period of time,” said U.S. Attorney Graves. “Our office is grateful for the detectives who doggedly pursued this case and offers our sincerest condolences to Isaiah Glover’s family on this tragic loss.” Officers with the Metropolitan Police Department arrested Hudson on February 9, 2021 and has been in custody since. Hudson pleaded guilty on April 14, 2023. In announcing the sentence, U.S. Attorney Graves and Interim Chief Benedict commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocate Latrice Washington-Williams. Finally, they commended the work of Assistant U.S. Attorney Andrea Coronado, who investigated and prosecuted the case.


title: Sallisaw Resident Sentenced For Federal Drug Crime

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amy Lee Littledeer, a/k/a Amy Hummingbird, age 37, of Sallisaw, Oklahoma, was sentenced to 60 months in prison for possession with intent to distribute methamphetamine. The charges arose from investigations by the Sequoyah County Sheriff’s Office and the Federal Bureau of Investigation. On May 17, 2022, Littledeer pleaded guilty to one count of Possession with Intent to Distribute Methamphetamine. On July 7, 2020, Sequoyah County Sheriff deputies executed a search warrant at Littledeer’s residence in Sallisaw, Oklahoma. During the search, they located three baggies containing a total mixture of methamphetamine weighing over 80 grams. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Littledeer will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Jordan Howanitz represented the United States.


title: Ada Resident Sentenced For Murder In Indian Country

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Jimmy Louis Northcutt, Jr., age 45, of Ada, Oklahoma, was sentenced to 222 months for his role in a Pontotoc County homicide. The charges arose from an investigation by the Pontotoc County Sheriff’s Office, the Oklahoma Bureau of Investigation, and the Federal Bureau of Investigation. On April 7, 2022, Northcutt pleaded guilty to one count of Murder in Indian Country – Second Degree. According to investigators, on July 18, 2019, Northcutt broke into a commercial marijuana grow operation and shot the victim three times, killing him. The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Northcutt was remanded to the custody of the U.S. Marshal at the conclusion of sentencing. He will remain in custody pending transportation to a designated United States Bureau of Prisons facility to serve his non-paroleable sentence of incarceration. Assistant United States Attorney Cameron McEwen represented the United States.


title: Oahu Men Receive Sentences of 130 and 120 Months in Prison Following Federal Carjacking Convictions

component: USAO - Hawaii

body_text: HONOLULU –Senior United States District Judge Helen Gillmor imposed prison sentences of 130 months on Treston Cory Kawailani Hardin, 35, of Waiawa, Hawaii, and 120 months on Anthony Kelii Mark, 31, of Wahiawa, Hawaii on July 13 and 14, 2023, respectively, for carjacking. According to information presented to the court, on March 14, 2020, Hardin and Mark drove a stolen car to the Waipio Soccer Complex and parked alongside the victim, who was seated in the driver’s seat of a Nissan truck. Hardin then exited his car, walked over to the victim’s truck, opened his passenger’s side door, and displayed a bolt-action shotgun. Hardin then loaded a round into the shotgun and pointed the shotgun at the victim. Mark then approached the victim’s truck from the driver’s side and ordered the victim out of the truck. The victim complied and fled, as Hardin and Mark took his truck. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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 Honolulu Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that resulted in the convictions. Assistant U.S. Attorneys Gregg Paris Yates and Darren W.K. Ching handled the prosecution.


title: Soap Lake Man Pleads Guilty to Production and Attempted Production of Child Pornography Offense

component: USAO - Washington, Eastern

body_text: Spokane – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Michael Gene Rice, 48, of Soap Lake, Washington, pleaded guilty to Production and Attempted Production of Child Pornography, in violation of 18 U.S.C. §§ 2251(a), (e). United States District Judge Thomas. O. Rice accepted Rice’s guilty plea and scheduled a sentencing hearing for October 11, 2023, in Spokane, Washington. According to court documents and proceedings, Rice caused an 11-year old minor in his care to record the minor engaged in sexually explicit conduct on Rice’s phone. The minor disclosed the conduct to law enforcement, and a search warrant was granted for Rice’s iCloud account data. In Rice’s iCloud account, law enforcement observed child pornography videos consistent with the minor’s statements. Court documents reveal that Rice was previously convicted in 2002 of Rape of a Child in the First Degree, in Grant County, Washington. The victim in that case was also 11 years old. Sentencing is also pending in Grant County Case No. No. 22-1-00131-13, where Rice was convicted after a jury trial earlier this year of two counts of Dealing in Depictions of a Minor Engaged in Sexually Explicit Conduct and two counts of Possession of Depictions of a Minor Engaged in Sexually Explicit Conduct. “As a parent, I am chilled by Mr. Rice’s exploitative conduct of a young child,” said United States Attorney Waldref. “My office will continue to take child exploitation seriously, whether online or in-person. Children everywhere deserve to live in a world free from predators.” United States Attorney Waldref continued, “This case, like so many of the cases we prosecute in federal court, involved a joint effort by federal, state and local law enforcement. We are particularly grateful for the Grant County Prosecuting Office’s partnership on this case. When law enforcement is able to partner together – as we did here – we are able to do much to strengthen our communities and keep our citizens, including young children, safe.” This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. The Project Safe Childhood Initiative (“PSC”) has five major components: Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children; Participation of PSC partners in coordinated national initiatives; Increased federal enforcement in child pornography and enticement cases; Training of federal, state, and local law enforcement agents; and Community awareness and educational programs. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.” In addition, this case was investigated by the Missing and Exploited Children Task Force (MECTF), which is dedicated to protecting the children of Washington State by assisting and investigating missing child and exploitation cases. Washington State Patrol (WSP) MECTF partnered with Homeland Security Investigations (HSI) in Spokane on a Task Force housed at the HSI Spokane office. The Task Force includes Special Agents, Detectives, and Analysts from WSP, HSI, Spokane PD, and representatives from outlying Counties dedicated to serving the children and communities of the region. The MECTF traces its origins to 1999, when the Washington Legislature established a task force on missing and exploited children under the direction of the Chief of the state patrol, RCW 13.60.110. This case was investigated by Homeland Security Investigations and the Grant County Sheriff’s Office. This case was prosecuted by Ann T. Wick , Assistant United States Attorney for the Eastern District of Washington. 2:23-CR-23-TOR


title: Dayton man sentenced to 2 years in prison for stealing checks from U.S. Mail

component: USAO - Ohio, Southern

body_text: DAYTON, Ohio – Keith Dujuan Calahan, of Dayton, was sentenced in U.S. District Court to 24 months in prison for receiving and unlawfully possessing materials stolen from the U.S. Mail, including approximately 250 checks. Callahan intended to use the stolen mail matter to perpetrate more than $250,000 in fraud. Local law enforcement began placing GPS tracking devices inside “dummy” packages in collection boxes outside the Dabel Post Office in Kettering, and, in May 2022, three such packages were stolen. According to court documents, law enforcement tracked the GPS locations of the stolen packages and set up surveillance around an apartment complex Dayton. Three individuals were subsequently arrested, including Calahan. Calahan had two trash bags full of stolen mail matter, including two of the dummy packages. While executing a search warrant at Calahan’s apartment, investigators discovered 250 stolen checks, nearly $1,700 in cash, a $1,000 money order and two firearms. Two weeks prior to his arrest, Calahan had fraudulently deposited a $6,100 check, which had been stolen from the U.S. Mail and altered to reflect a different payee. Calahan pleaded guilty in February 2023 to receipt and possession of stolen mail. “The theft of mail can be hugely disruptive to the lives of those whose private communications are stolen, opened, and exploited,” said United States Attorney Kenneth L. Parker. “This sentence should be a warning to anyone tempted to break into a collection box in search of easy money that doing so comes with considerable consequences.” Parker and Lesley C. Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Pittsburgh Division; announced the judgment issued on July 13 by U.S. District Court Judge Walter H. Rice. Assistant United States Attorney Rob Painter is representing the United States in this case. # # #


title: Yukon Man Sentenced to Serve Five Years in Federal Prison for Possessing Child Pornography

component: USAO - Oklahoma, Western

body_text: OKLAHOMA CITY – Yesterday, DUSTIN MICHAEL BUTLER , 34, of Yukon, was sentenced to serve 60 months in federal prison yesterday for possessing child pornography, announced United States Attorney Robert J. Troester. On October 5, 2021, a federal grand jury returned a two-count Indictment charging Butler with receipt and possession of child pornography. On February 7, 2022, Butler pleaded guilty to the possession count. At the plea hearing, Butler admitted to downloading and possessing images of child pornography. According to the Indictment, Butler possessed two hard drives containing images of child pornography. At a sentencing hearing yesterday, U.S. District Court Judge Stephen P. Friot sentenced Butler to serve 60 months in federal prison. In announcing the sentence, Judge Friot noted the nature, circumstances, and seriousness of the offense, including the “horrific” child abuse depicted in the large volume of images and videos that Butler possessed. This term of imprisonment will be followed by five years of supervised release. In addition to the prison sentence, the Court ordered Butler pay a total of $15,000.00—$ 3,000.00 to each of his five identified victims—in restitution, in addition to a total of $10,100.00 in special assessments. This case is the result of an investigation by the Homeland Security Investigations – Dallas Field Office. The case was prosecuted by Assistant U.S. Attorney Julia Barry. Reference is made to public filings for more information.


title: Bureau of Prisons Correctional Officer Pleads Guilty To Violating the Civil Rights of an Inmate Resulting in His Death

component: Civil Rights Division

body_text: RICHMOND, Va. – A federal Bureau of Prisons (BOP) lieutenant pleaded guilty yesterday to violating the civil rights of an inmate by showing deliberate indifference to the inmate’s serious medical needs, resulting in his death. According to court documents, on January 9 and 10, 2021, Michael Anderson, 52, was working in his official capacity as a BOP correctional officer, with a rank of lieutenant, at the Federal Correctional Institution at Petersburg. In that capacity, Anderson was responsible for the care of federal inmates. On Jan. 9, 2021, a correctional officer notified Anderson that a 47-year-old inmate, W.W., was experiencing symptoms of an apparent medical emergency and asked the defendant to help W.W. obtain medical care. Anderson personally observed W.W.’s symptoms and stated that he would get medical help for W.W. Anderson nevertheless failed to notify medical staff, obtain a medical assessment, contact the facility’s on-call physician, or notify any other staff members of W.W.’s condition. The next day, a correctional officer notified Anderson that W.W. had fallen to the ground in his cell. Even with this information, Anderson failed to obtain any assistance for W.W. whatsoever. W.W. then laid on the ground, dead or dying, for over an hour and a half before any correctional or medical staff entered his cell. By the time correctional and medical staff entered the cell, life-saving efforts failed, and W.W. was later pronounced dead. “Despite Anderson’s knowledge of the victim’s medical condition and his knowledge of BOP policies, he failed to provide potentially life-saving medical care to an inmate in need,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “People have a constitutional right to basic care while incarcerated.” “Correctional supervisors are responsible for the care and custody of inmates entrusted to their care, particularly those with serious medical needs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those correctional officers who deliberately disregard inmates’ serious medical needs.” “Anderson’s appalling indifference and disregard for his responsibility to provide a humane environment for inmates resulted in the needless loss of life,” said Special Agent in Charge Russell W. Cunningham of the Justice Department’s Office of the Inspector General Washington Field Office. “Incarcerated individuals should never be denied medical care, and the Department of Justice Office of the Inspector General will continue to aggressively investigate anyone who does so.” Sentencing is scheduled for November 28, 2023. Anderson faces a maximum penalty of life in prison. Any sentence will be determined by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kristen Clarke, Assistant Attorney General of the Justice Department’s Civil Rights Division; Michael E. Horwitz, Inspector General of the Justice Department, made the announcement after U.S. District Judge Roderick C. Young accepted the plea. The Justice Department’s Office of the Inspector General investigated the case. Assistant U.S. Attorney Thomas A. Garnett for the Eastern District of Virginia and Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-80.


title: Jamaican National Pleads Guilty To Mail And Wire Fraud Charges In Connection With Fraudulent Sweepstakes Scheme That Targeted Elderly Victims

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - A Jamaican national, who was extradited to the United States, pleaded guilty in the U.S. District Court for the Middle District of Pennsylvania on charges relating to his participation in a phony sweepstakes scheme that targeted elderly victims in the United States. According to court documents, Damone D. Oakley, 41, of the Point District, St. James Parish, Jamaica, pleaded guilty to two counts of mail fraud and two counts of wire fraud. As part of his plea agreement, Oakley admitted that he sought to unlawfully enrich himself through a fraudulent sweepstakes scheme that targeted elderly and vulnerable victims. Oakley’s victims received mailings, text messages, or phone calls in which they were falsely told that they had won millions of dollars and luxury vehicles in a sweepstakes, but first needed to pay taxes and fees in order to claim their winnings. Oakley used a variety of names during the scheme, including “Officer Alex Logan” and “Officer Stan Valentine,” and instructed his victims on how to send their money. His victims used wire transfers, direct bank deposits, the U.S. Postal Service, and private commercial mail carriers to send money directly to Oakley, as well as to individuals in the United States and elsewhere who served as intermediaries and transmitted the money to Oakley. In addition to sending cash or wire transfers, Oakley’s victims were directed to purchase electronics, jewelry, and clothing, which were sent to mail forwarding services in Florida, and then on to Oakley in Jamaica. Victims never received any “winnings.” Oakley defrauded his victims out of hundreds of thousands of dollars during the course of the scheme. “The Department of Justice’s Consumer Protection Branch remains committed to pursuing criminals who defraud elderly and vulnerable U.S. consumers and to prosecuting them to the full extent of the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Oakley was the first individual whose extradition was requested by the United States under Jamaica’s revised Extradition Act, and we are confident that we will continue our efforts to root out fraud that targets vulnerable consumers, wherever the fraudsters are located.” “Oakley targeted the most vulnerable people in our society and defrauded them out of hundreds of thousands of dollars," said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Today’s guilty plea reflects our office’s commitment to protecting elderly victims and punishing individuals who engage in this type of behavior.” “The U.S. Postal Inspection Service is committed to investigating scammers, domestically and internationally, who use the U.S. mail to enrich themselves by targeting and financially exploiting vulnerable American consumers, including the elderly,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Today’s plea exemplifies the Postal Inspection Service’s efforts to collaborate with foreign and domestic law enforcement partners to bring these criminals to justice.” The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Oakley. The U.S. Marshals Service also provided significant assistance. The case is being prosecuted by Senior Litigation Counsel Linda I. Marks of the Department of Justice’s Civil Division, Consumer Protection Branch, along with Assistant U.S. Attorney Christian Haugsby for the Middle District of Pennsylvania. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available. For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Pennsylvania visit their website at www.justice.gov/usao-mdpa. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice . # # #


title: Three Cuban Nationals Sentenced for Sex Trafficking and Related Crimes in Texas Strip Clubs

body_text: Three Cuban nationals were sentenced for sex trafficking and related crimes in strip clubs in the Houston area. Rasiel Gutierrez Moreno, 38, Hendry Jimenez Milanes, 39, and Rafael Mendoza Labrada, 29, were each sentenced to 210 months in prison and to pay $451,298 in restitution, 120 months and $359,108 in restitution, and time served of 34 months, respectively. Gutierrez Moreno pleaded guilty to sex trafficking and interstate travel in aid of racketeering Oct. 28, 2021. As part of his plea agreement, Gutierrez Moreno admitted to bringing women from Cuba to the United States and imposing on them inflated smuggling debts as high as $30,000. Gutierrez Moreno forced the women to work in Houston-area strip clubs, such as Michaels’ International, where they danced and engaged in commercial sex acts with club patrons, providing all the proceeds to Gutierrez Moreno to pay down their debt. The defendant further acknowledged smuggling and imposing debts to coerce approximately 20 other women in this manner. Gutierrez Moreno admitted that, to keep Victim 1 under his control while she worked for him, he bragged about his acts of violence against other women and their families. On one occasion, Gutierrez Moreno beat another woman shortly before Victim 1 arrived at his home and ensured that Victim 1 observed that woman’s injuries. When Victim 1 escaped Gutierrez Moreno, the defendant contacted her family in both Miami and Cuba to demand that she return to work and finish paying her debt to him. Jimenez Milanes pleaded guilty on Jan. 10, 2022, to coercion and enticement, and Mendoza Labrada pleaded guilty on April 30, 2021, to interstate travel in aid of racketeering. “These defendants cruelly used violence, threats of violence, and false debts to force vulnerable victims to engage in commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This kind of sex trafficking scheme is unlawful, dehumanizing and terrorizing to the women unable to break free. The Justice Department is committed to the vigorous prosecution of those who prey upon, abuse and exploit others for their own financial benefit.” “These human smugglers terrorized female migrants, using Houston’s strip clubs combined with psychological threats and sexual violence for their personal financial gain,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “The victims came to the United States in search of a new life, were especially vulnerable, and the defendants took advantage of that. The sentences imposed today send a strong message that the Southern District of Texas will not tolerate those who smuggle, threaten and abuse the vulnerable.” “The court’s sentence today sends a strong message: The Diplomatic Security Service is committed to making sure that those who commit sex trafficking face consequences for their criminal actions,” said Special Agent in Charge John Keith of the Department of State’s Diplomatic Security Service (DSS) Houston Field Office. “DSS’ strong relationship with the Department of Justice and other law enforcement agencies around the world continues to be essential in the pursuit of justice.” “Homeland Security Investigations (HSI) will always remain dedicated and focused on the identification and recovery of the victims of human trafficking. We prioritize not only the safe rescue of these victims, but work with our partners to provide them with resources necessary to help them deal and cope with their experience,” said Special Agent in Charge Anthony Salisbury of HSI Miami. “We are committed to working with our local, state and federal law enforcement partners to put any human trafficker who soullessly preys on victims of this crime to put them behind bars.” The DSS investigated the case as part of the Human Trafficking Rescue Alliance (HTRA), with the assistance of HSI Miami and the Department of Labor Wage and Hour Division. Established in 2004, the U.S. Attorney’s Office in Houston formed HTRA to combine resources with federal, state and local law enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those survivors who the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses. Assistant U.S. Attorney Sherri Zack for the Southern District of Texas and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case. If you believe you or someone you know may be a victim of human trafficking, call local law enforcement or the 24/7 confidential National Human Trafficking Hotline at 1-888-373-7888.


title: North Tazewell Man Sentenced for Possessing Firearms, Explosive Devices

component: USAO - Virginia, Western

body_text: ABINGDON, Va. – A North Tazewell man, who possessed seven firearms, over 100 rounds of ammunition, an explosive detonator and a destructive device, was sentenced this week to 57 months in federal prison. Timothy Wader Mitchell Jr., 45, pleaded guilty in August 2022 to one count of possession of a firearm by a convicted felon and one count of possession of an explosive device by a convicted felon. According to court documents, on May 22, 2022, law enforcement responded to the Mitchell residence in North Tazewell, Virginia to serve an outstanding warrant on Sandra Mitchell, Timothy Mitchell’s wife. While at the residence, deputies observed a methamphetamine pipe and several other drug paraphernalia items. After obtaining a search warrant for the residence, deputies discovered a small quantity of methamphetamine, seven firearms, consisting of five long guns and two handguns, over 100 rounds of ammunition, an electric blasting cap, a fuse, and a destructive device categorized by experts as an explosive bomb. United States Attorney Christopher R. Kavanaugh and Special Agent in Charge Craig B. Kailimai of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, and the Tazewell County Sheriff’s Office investigated the case. Assistant U.S. Attorney Lena Busscher prosecuted the case.


title: Jerry L. Jensen Appointed Acting U.S. Trustee for Arkansas, Nebraska, and Missouri

component: U.S. Trustee Program

body_text: Jerry L. Jensen has been appointed by Attorney General Merrick B. Garland as the Acting U.S. Trustee for Arkansas, Nebraska, and Missouri (Region 13) effective Aug. 1, the Executive Office for U.S. Trustees announced today. Jensen replaces Daniel J. Casamatta, who is retiring after 35 years of dedicated service to the department, including the last eight years as the Acting U.S. Trustee in Region 13. Under 28 U.S.C. § 585(a), the Attorney General may fill U.S. Trustee vacancies by appointing an Acting U.S. Trustee. Jensen joined the U.S. Trustee Program (USTP) in 1989 as a trial attorney in the Omaha office and was appointed as the Assistant U.S. Trustee there in 2019. He has served important roles both regionally and nationally, including as the Region 13 Appellate Coordinator for many years and as a member of four internal peer review teams charged with assessing field office compliance with USTP standards, policies, and expected levels of performance. He also is active within the District of Nebraska, including representing the USTP on the district’s interagency Bankruptcy Fraud Working Group and the Nebraska Bankruptcy Court Practice Committee and serving as a frequent lecturer at local and regional professional programs. Jensen received his Juris Doctor from Creighton University School of Law and his Master of Laws in agricultural law from the University of Arkansas School of Law. The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 13 has offices in Little Rock, Arkansas; Kansas City and St. Louis, Missouri; and Omaha, Nebraska.


title: Dermatologist Agrees To Pay $6.6 Million To Settle Allegations Of Fraudulent Billing Practices

component: USAO - Tennessee, Eastern

body_text: KNOXVILLE, Tenn. – Dermatologist, John Y. Chung, M.D., and his practice Skin Cancer & Cosmetic Dermatology Center, P.C. (“SCCDC”), which operates 13 dermatology clinics in southeast Tennessee and north Georgia, have agreed to pay $6.6 million to resolve allegations that they violated the False Claims Act by knowingly submitting false claims to federal healthcare programs for Mohs Micrographic Surgeries and other dermatological procedures. This settlement resolves allegations that Dr. Chung and SCCDC knowingly submitted false claims for payment to Medicare, Medicaid, and other government payors for Mohs procedures that were billed as if both the surgery and pathology portions of the procedures were performed by Dr. Chung, when in fact at least one portion was often performed by other individuals. The settlement further resolves allegations that SCCDC regularly billed Medicare for multiple procedures, performed on the same patient on the same day, in a manner that improperly circumvented Medicare’s “multiple procedure reduction rule.” The alleged misconduct occurred from 2010 through 2020. “Government healthcare programs establish billing rules and guidelines to safeguard tax-payer funds. Billions of dollars intended to cover the costs of healthcare services are lost every year to fraud, waste, and abuse, and when providers disregard billing requirements, the financial viability of public programs and the healthcare they provide are put at risk. The U.S. Attorney’s Office will aggressively root out providers whose billing practices take advantage of public programs for their own private gain,” said U.S. Attorney Francis M. Hamilton III. “When health care providers submit improper claims to federal health care programs, they waste valuable taxpayer dollars,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, our agency will continue to protect federal health care programs from fraud, waste, and abuse to ensure they can be used for their intended purposes.” “Health care fraud, a severe problem that impacts every American, costs our country billions each year, takes critical resources out of our health care system, and contributes to the rising cost of health care for everyone. The FBI, along with our federal, state, and local partners, will continue to provide resources to investigate allegations of fraud in public programs and hold violators to account,” said FBI Special Agent in Charge Joseph E. Carrico, Knoxville Field Office. “The VA OIG is dedicated to ensuring veterans receive the quality health care they deserve, and we will continue to work to make certain that VA healthcare programs are not compromised by fraudulent billing practices,” said Special Agent in Charge Kim R. Lampkins with the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “The VA OIG thanks the US Attorney’s Office, and our law enforcement partners for their efforts in this investigation.” “To protect the integrity of federal health care programs and the patients they serve, it is important that providers are compliant with billing rules and procedures,” said TVA OIG Inspector General Ben Wagner. “The TVA OIG is committed to identifying and investigating healthcare false claims that negatively impact the people of the Tennessee Valley. The TVA-OIG will continue to work tirelessly alongside our law enforcement partners to protect the reliability of federal healthcare programs, and prevent fraud, waste, and abuse. The TVA OIG would like to thank the United States Attorney’s Office Eastern District of Tennessee for diligently pursing resolution of this case and ensuring funds were properly returned to TVA.” “Health care providers that serve our nation’s military service members, retirees and their families are expected to meet the highest standards of ethical and professional behavior,” stated Special Agent in Charge Darrin K. Jones, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This settlement sends a clear signal to those who take advantage of TRICARE for personal enrichment.” “Our Medicaid Fraud Division works each day to uphold the integrity of Georgia’s Medicaid program.,” said Georgia Attorney General Chris Carr. “This includes putting a stop to providers who submit false claims and take advantage of our publicly funded healthcare system. This type of fraud and abuse will not be tolerated as we continue our efforts to protect taxpayer dollars no matter the amount.” As part of the settlement, Chung and SCCDC entered an Integrity Agreement (IA) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG), which promotes its future compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs. The IA focuses on the practice’s continuing obligation to accurately bill and properly submit reimbursement claims to government payors. This investigation resulted from a coordinated effort between HHS-OIG (Nashville Field Office), the Federal Bureau of Investigation (Knoxville), Tennessee Bureau of Investigation, Defense Criminal Investigative Service, Tennessee Valley Authority – OIG, U.S. Department of Veterans Affairs – OIG, the U.S. Attorneys’ Office for the Eastern District of Tennessee, the Tennessee Attorney General’s Office, and the Georgia Attorney General’s Office. The investigation was prompted by a lawsuit filed under the qui tam , or whistleblower, provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims, and to receive a share of any recovery. The qui tam case is captioned United States, State of Tennessee and State of Georgia ex rel. Chambers v. Skin Cancer and Cosmetic Dermatology Ctr. and Chung , No. 1:20-CV-177 (E.D. Tenn.). The relator’s share of the recovery will be $1.32 million. Assistant U.S. Attorneys Jeremy Dykes and Alexa Ortiz Hadley represented the United States. Senior Assistant Attorney General Tony Hullender represented the State of Tennessee, and Assistant Attorney General Sara Vann represented the State of Georgia. The claims settled by this agreement are allegations only, and there has been no determination of liability. ###


title: Man Arrested for Cyberstalking and Making Antisemitic Threats Targeting Synagogues and Jewish-Owned Businesses

body_text: Donavon Parish, 28, of Hattiesburg, Mississippi, was arrested today and charged by indictment for allegedly engaging in cyberstalking and communicating interstate threats. The indictment alleges the defendant targeted his victims based on their actual or perceived religion, that is, the Jewish faith. According to the indictment, in April and May 2022, the defendant used a voiceover internet protocol service to make a series of phone calls to synagogues and Jewish-owned businesses in the Eastern District of Pennsylvania. In these calls, Parish allegedly spoke to individuals answering the telephone calls on behalf of their respective institutions, at which time he repeatedly referenced the genocide of approximately six million Jewish people during the Holocaust, stating, among other things, “Heil Hitler,” “all Jews must die,” “we will put you in work camps,” “gas the Jews,” and “Hitler should have finished the job.” If convicted, Parish faces a statutory maximum sentence of 50 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania and Assistant Director Robert Wells of the FBI’s Counterterrorism Division made the announcement. The FBI is investigating the case. The Eastern District of Pennsylvania and National Security Division’s Counterterrorism Section are prosecuting the case, with assistance from the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Mississippi. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Bergen County Man and New York Woman Charged with Fentanyl Trafficking

component: USAO - New Jersey

body_text: NEWARK, N.J. – A Bergen County, New Jersey, man and a New York woman were charged for their roles in a fentanyl trafficking conspiracy operating in and around Bergen County, U.S. Attorney Philip R. Sellinger announced today. Plinio Junior Pineda Lopez, 33, of Oakland, New Jersey, is charged by complaint with one count of conspiracy to distribute and possess with intent to distribute fentanyl; Lorendy Diaz Beltre De Inoa, 27, of Yonkers, New York, is charged by complaint with possession with intent to distribute fentanyl. They appeared on July 12, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court. Lopez was detained and De Iona was released with electronic monitoring. According to documents filed in this case and statements made in court: Lopez conspired with others to distribute large quantities of fentanyl between Florida and New Jersey out of his home. On July 11, 2023, Lopez and De Inoa were arrested in Wallington, New Jersey, while attempting to conduct a drug deal. Law enforcement officers found on De Inoa 1.5 kilograms of fentanyl. Following the arrest, and pursuant to a court-authorized search warrant, law enforcement conducted a search of Lopez’s home and recovered further kilograms of fentanyl hidden throughout the home. The home also contained packaging materials and paraphernalia consistent with those used to package controlled substances. Law enforcement officers recovered a total in excess of approximately 9 kilograms of fentanyl and 1 kilogram of cocaine. The count charging Lopez with conspiracy to distribute controlled substances carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 10 years in prison, and a fine of $1 million. The count charging De Inoa with possession with intent to distribute fentanyl carries a maximum punishment of 20 years in prison and a fine of $1 million. U.S. Attorney Sellinger credited special agents of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky J. Patel; HSI Miami; HSI Jacksonville, Florida; Customs and Border Protection Air and Marine Operations and CBP Office of Field Operations; the Jacksonville Sheriff’s Office; Drug Enforcement Administration NY Z-43; the Bergen County Prosecutor's Office; the Oakland Police Department; and the Paterson Police Department with the investigation leading to the charges. The government is represented by Assistant U.S. Attorney Jason Goldberg of the Organized Crime/Gang Unit in Newark. The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. lopezdeinoa.complaint.pdf


title: Kissimmee Resident Pleads Guilty To Wire Fraud Scheme Targeting Rideshare Service

component: USAO - Florida, Middle

body_text: Orlando, FL – United States Attorney Roger B. Handberg announces that Jesus Alejandro Millan Gomez (38, Kissimmee) has pleaded guilty to wire fraud and aggravated identity theft. He faces a maximum penalty of 20 years in federal prison for the wire fraud offense, and a mandatory consecutive term of 2 years for the aggravated identity theft offense. A sentencing date has not yet been set. According to court documents, Millan Gomez used multiple fraudulent rideshare driver accounts that had been created through an online registration process using stolen identities. As a part of the scheme, Millan Gomez caused numerous rider accounts to also be established by others outside of Florida, including in Mexico and elsewhere. Using multiple cellphones at the same time and a “spoofing” location application to mask or manipulate his location to the rideshare service, Millan Gomez received instructions to pair trips together using cellphones that he controlled. Once a trip was underway, Millan Gomez used the location app to deceive the rideshare service into believing that he had driven significantly further than the original destination requested, which increased the fare. This fraud scheme exploited a then-existing weakness in the rideshare company’s payment system and defrauded the company of $232,994.87 in payments. This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ranganath Manthripragada.


title: Jury Convicts Jacksonville Felon For Illegally Possessing A Loaded Firearm

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Dwayne Eric Thompson (39, Jacksonville) guilty of possessing a firearm as a convicted felon. Thompson faces a maximum penalty of 15 years’ imprisonment. A sentencing date has not yet been set. According to evidence presented at trial, Thompson was arrested, pursuant to an outstanding warrant, by officers from the Jacksonville Sherriff’s Office and his car was searched. A loaded pistol was recovered from the center console. During the search, Thompson and the other passengers denied knowledge and ownership of the firearm. DNA evidence presented at the trial showed that Thompson’s DNA was present on the firearm and the loaded magazine. At the time, Thompson had multiple prior felony convictions and was on federal supervised release, having previously been convicted by a federal trial jury in 2010 of possession of a firearm by a convicted felon. As a convicted felon, Thompson is prohibited from possessing a firearm or ammunition under federal law. This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney John Cannizzaro. Assistant United States Attorney Mai Tran is handling the forfeiture. 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: Mount Olive Man Convicted for Multiple Weapons Charges, Including Providing Instructions on How to Make and Use Explosives to  Murder Law Enforcement

component: USAO - North Carolina, Eastern

body_text: RALEIGH, N.C. – A federal jury convicted a Mount Olive man on nine counts, including teaching another individual how to make and use an explosive knowing that the individual intended to use that instruction in the murder or attempted murder of federal law enforcement. The jury also found Christopher Arthur, 39, guilty of receiving and possessing unregistered devices including a short-barreled rifle, a silencer, three improvised hand grenades, and an improvised claymore. Finally, the jury found Arthur guilty of possessing a silencer with an obliterated serial number. U.S. District Court Judge James C. Dever, III, presided over the three-day trial. According to court documents and other information presented in court, investigation into Arthur began due to events that occurred on May 27, 2020. On that date, in New York, after a two-hour police pursuit, another individual was shot and killed during an exchange of gunfire. Search warrants related to that event resulted in the location of numerous additional Improvised Explosive Devices (IEDs) and firearms along with multiple “Tackleberry Solutions” tactical instructional manuals which named the author as Christopher Arthur. A review of the individual’s cell phone indicated that he had attended training with Arthur in Mount Olive for multiple days in March of 2020. On March 19, 2021, a confidential source (CS) working with the FBI requested a free PDF document from Tackleberry Solutions. After a short period of time, an email was received from Arthur indicating that he had to keep parts of the information in the PDF off of the internet since explosives were such a touchy topic. Arthur also gave his phone number and mailing address. Arthur then began communicating via phone regarding the manuals and additional training at a cost. On May 5, 2021, the CS attended training on explosives at Arthur’s Mount Olive home. During discussions between the CS and Arthur, the CS specifically informed Arthur that he needed such training because the ATF had visited his home and he expected them to return. Arthur introduced the CS to a concept Arthur called “the spiderweb” and which he described as a “freaking deathbox.” Over the course of a two and a half hour training, Arthur walked the individual through how to create IED’s and how to place them to create “fatal funnels” which could be used to maim or murder anyone entering the CS’s home. During that instruction, Arthur also showed the CS how to create an electric initiator for homemade grenades and bombs and how to make a homemade trip wire. Once he was finished demonstrating how to make the components, Arthur provided them to the CS and also explained how to use an old shotgun to create a “thumper” that could launch homemade grenades. Subsequent to Arthur’s arrest, a search warrant was executed at his home. During the search, officers found an IED sitting on the front porch that was wired for a 9-volt battery powered switch located within the ho me. After rendering that item safe, a further search of the home uncovered three IED grenades in Arthur’s bedroom co-located with a striker plate intended to assist in detonating the IEDs. Also in Arthur’s bedroom was Palmetto State Armory PA-15 rifle chambered with 5.56 rounds and having an attached suppressor (i.e., “silencer”). Examination of the rifle revealed that it was an illegally altered short barrel rifle. Moreover, the suppressor lacked a visible serial number. Also located on the property was an IED made out of an old ammo can with a target on it, which contained 1 pound of a high explosive. None of the IEDs or firearms were registered with the National Firearm Registry and Transfer Record as required by law. Arthur provided training materials to the CS in both PDF and video format. Within these, Arthur explained his belief for why such training was needed. For example, “When those [law enforcement officers] are trying to kick in your door, there’s no more peaceful negotiations. The time is over. That’s the time for you to start putting lead down range….that’s when you pick up that phone…to your fellow militia members and you say ‘I need help!’ And that’s when y’all man the freak up, get out there and put boots up their ass, lead down range, and bodies on the ground!” When sentenced later this year, Arthur faces up to 95 years, including a maximum sentence of 20 years in prison and a fine of $250,000 for providing the explosives training knowing how it was going to be used, 10 years in prison and a $250,000 fine for each of the seven counts relating to possessing unregistered devices, and 5 years in prison and a $250,000 fine for the possession of a firearm with an obliterated serial number. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the jury returned the guilty verdict. The Federal Bureau of Investigation is investigating this case and Assistant United States Attorneys Barbara Kocher and Logan Liles are prosecuting the case. Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:22-cr-00005-D. ###


title: Starke Man Pleads Guilty To Mail Theft

body_text: Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Connor Lee Austin (28, Starke) has pleaded guilty to theft of mail. Austin faces up to five years in federal prison and payment of restitution to the victims in the case. No sentencing date has been set. According to court documents and public records, in late April 2022, the Clay County Sheriff’s Office (CCSO) received multiple reports of mail being stolen from mail boxes in the Keystone Heights area. Surveillance footage from homes in that area captured a truck driving down roads with the passenger, later identified as Austin, and his co-defendant, Maranda Ann Stewart (26, Starke), stealing mail from mailboxes. On May 6, 2022, the Baker County Sheriff's Office (BCSO) arrested Austin and Stewart for their involvement with a fraudulent check. During the arrest, the BCSO conducted an inventory search of the truck used by them and located over 100 pieces of mail that had been stolen from various addresses in Clay County. Further investigation determined that after stealing mail, Austin and Stewart used Austin’s phone in an effort to deposit stolen checks into their bank accounts through mobile deposit. Law enforcement recovered mail that had been stolen by Austin and Stewart from Baker, Bradford, Clay, Duval, and Putnam counties. Austin appeared in federal court on April 19, 2023, pursuant to a writ bringing him to Jacksonville from Florida State Prison where he is serving a prison sentence of 36 months for grand theft, grand theft from a dwelling, and burglary. He was ordered detained. On June 27, 2023, Stewart pled guilty to one count of theft of mail. She faces up to five years’ imprisonment and payment of restitution to the victims in the case. No sentencing date has been set. This case was investigated by the Clay County Sheriff’s Office and the United States Postal Inspection Service, with valuable assistance from the Bradford County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.


title: U.S. Attorney’s Office Announces Arrest and Indictment of a Canadian Man for Destruction of an Energy Facility and Illegal Firearm Possession

component: USAO - North Dakota

body_text: BISMARCK –United States Attorney Mac Schneider announced that a federal grand jury has returned an indictment charging Cameron Monte Smith, a citizen of Canada, with 1) Destruction of an Energy Facility; 2) Possession of Firearm by an Illegal Alien; and 3) Possession of Ammunition by an Illegal Alien. As stated in the indictment, Smith is alleged to have damaged the Wheelock Substation in an amount exceeding $100,000.00 in May of 2023. The substation, located near Ray, North Dakota, is operated by Mountrail-Williams Electric Cooperative and Basin Electric Power Cooperative. Smith is also alleged to have illegally possessed a .450 Bushmaster rifle and 9mm Sig Sauer pistol knowing that he was an alien illegally and unlawfully in the United States. The charge of destruction of an energy facility is punishable by a maximum imprisonment term of 20 years and a $250,000 fine. The firearm offenses are each punishable by a maximum imprisonment term of 15 years and a $250,000 fine. On July 12, 2023, Smith appeared before United States Magistrate Judge Clare R. Hochhalter for an initial appearance and arraignment where he entered a not guilty plea to these charges. Judge Hochhalter ordered that Smith be detained in federal custody pending a detention hearing scheduled for July 17, 2023, at 2:00 p.m. A trial has been scheduled for September 12, 2023, at 9:30 a.m. in Bismarck, ND. An indictment is an accusation and notice of charges. The defendant is presumed innocent under the law unless and until proven guilty. This case is being investigated by the Federal Bureau of Investigation and the Williams County Sheriff’s Office and is being prosecuted by Assistant United States Attorneys David D. Hagler and Jonathan J. O’Konek with the assistance of Trial Attorneys Jacob Warren and Justin Sher of the National Security Division’s Counterterrorism Section. ######


title: Chicago Man Sentenced to 15 Years in Federal Prison; Investigation Shut Down Missouri-to-Chicago Gun Pipeline

component: USAO - Illinois, Northern

body_text: CHICAGO — A Chicago man has been sentenced to 15 years in federal prison as part of an investigation that shut down a Missouri-to-Chicago firearms pipeline. DERRICK CLAIBORNE, 47, trafficked fentanyl-laced heroin and illegally possessed three handguns in 2018. Law enforcement searched Claiborne’s residence on Michigan Avenue in Chicago’s South Loop neighborhood and discovered the three guns and the drugs. U.S. District Judge Robert M. Dow, Jr. imposed the sentence after a hearing July 7, 2023, in federal court in Chicago. Claiborne was one of four defendants convicted as part of an investigation led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The probe revealed that Claiborne purchased three additional firearms from JAMES SAUNDERS after the guns had been transported from Missouri to Saunders’s residence in Chicago’s Woodlawn neighborhood. In addition to the three guns he sold to Claiborne, Saunders also sold multiple firearms to confidential informants who were cooperating with law enforcement. Saunders pleaded guilty to federal firearm charges and was sentenced in 2019 to five years in federal prison. Two Missouri residents who transported firearms to Saunders in Chicago were also convicted and sentenced as part of the investigation. JUMONTA MOORE, 25, of Sikeston, Mo., and MARCUS INGRAM, 30, of Charleston, Mo., were each sentenced in 2019 to three years in federal prison. Claiborne’s sentence and the results of the investigation were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of ATF, and Fred Waller, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Drug Enforcement Administration and the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorney Jared C. Jodrey and Special Assistant U.S. Attorney Niranjan Emani. Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force , the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes. Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods , the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses. “Firearms traffickers enable unlawful possession of guns and the violence that may follow,” said Acting U.S. Attorney Pasqual. “We will continue to work with our law enforcement partners to investigate and hold accountable individuals or groups who traffic firearms into Chicago.” “This case is an excellent example of how the Firearms Trafficking Strike Force, working together with the Chicago Police Department and the U.S. Attorney’s Office, stops the flow of illegal guns into our neighborhoods,” said ATF SAC Amon. “Prosecuting those responsible for trafficking these firearms makes our community safer.”


title: Celsius Founder And Former Chief Revenue Officer Charged In Connection With Multibillion-Dollar Fraud And Market Manipulation Schemes

component: USAO - New York, Southern

body_text: Alexander Mashinsky, Founder and Former Chief Executive Officer of Celsius, Charged with Defrauding Celsius Customers, and Mashinsky and Roni Cohen-Pavon, Former Celsius Chief Revenue Officer, Charged with Manipulating the Market for Celsius Crypto Token Celsius Network LLC Accepts Responsibility and Pledges to Continue Cooperating Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ALEXANDER MASHINSKY, the founder and former Chief Executive Officer of Celsius Network LLC and their affiliated entities (collectively, “Celsius”), with securities fraud, commodities fraud, and wire fraud for defrauding customers and misleading them about core aspects of the company he founded, including Celsius’s success, profitability, and the nature of the investments Celsius made using customer funds. MASHINSKY and RONI COHEN-PAVON, Celsius’s former Chief Revenue Officer, are further charged with conspiracy, securities fraud, market manipulation, and wire fraud for illicitly manipulating the price of CEL, Celsius’s proprietary crypto token, all while secretly selling their own CEL tokens at artificially inflated prices. On June 12, 2022, Celsius announced it was halting all customer withdrawals from the Celsius platform, at which time hundreds of thousands of Celsius customers — many of whom were retail investors — still had approximately $4.7 billion worth of crypto assets on the Celsius platform, none of which they could access. On or about July 13, 2022, Celsius filed for Chapter 11 bankruptcy. MASHINSKY was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Ona T. Wang. COHEN-PAVON, an Israeli citizen and resident, is currently abroad. The case has been assigned to U.S. District Judge John G. Koeltl. U.S. Attorney Williams also announced today that the United States has entered into a non-prosecution agreement (the “Agreement”) with Celsius pursuant to which Celsius has agreed to accept responsibility for its role in the fraudulent schemes. In entering into the Agreement, the Office considered the fact that Celsius is in Chapter 11 bankruptcy proceedings and is making efforts to maximize recovery for victims in connection with the bankruptcy, as well as the fact that Celsius dramatically improved its cooperation after the Government brought certain production failures to the attention of the Special Committee of Celsius’s Board of Directors. U.S. Attorney Damian Williams said: “Exactly one year ago today, Celsius Network, a crypto platform that, at its height, managed approximately $25 billion in customer assets, filed for bankruptcy protection in the Southern District of New York. Over the course of the past year, we have worked quickly to get to the bottom of what led to Celsius’s collapse and to understand how a platform that advertised itself as the ‘safest place for your crypto’ could have left investors holding billions of dollars in losses. Today we have the answer. Today I am announcing the unsealing of an indictment charging Celsius’s founder and CEO, Alex Mashinsky, with orchestrating a scheme to defraud customers of Celsius through a series of false claims about the fundamental safety and security of the Celsius platform, and for participating in a scheme with Celsius’s Chief Revenue Officer, Roni Cohen-Pavon, to inflate the price of Celsius’s proprietary token, CEL. This case, like the others my Office has recently announced alleging fraud in the crypto economy, may appear complicated. But the message we send today is quite simple: if you rip off ordinary investors to line your own pockets, we will hold you accountable. Whether it’s old-school fraud or some new-school crypto scheme, it doesn’t matter one bit. It’s all fraud to us. And we’ll be here to catch it.” FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged in the indictment, Mashinsky and Cohen-Pavon knowingly engaged in complex financial schemes – deliberately misrepresenting the company’s business model and criminally manipulating the value of Celsius’s proprietary crypto token CEL – while serving in leadership roles at Celsius. The FBI will continue to ensure that anyone committing fraud and deceiving the public through the misrepresentations of a business’s financial standing or practice is held accountable. According to the allegations in the Indictment unsealed today in Manhattan federal court and the stipulated facts in the Agreement: [1] Celsius was a crypto asset platform that, among other things, allowed its customers to earn returns on their crypto assets in the form of weekly “rewards” payments, to take loans secured by their crypto assets, and to custody their crypto assets. Celsius billed itself as the “safest place for your crypto” and urged potential customers to “unbank” themselves by moving their crypto assets to Celsius. Celsius’s primary public offering was its “Earn” program, through which Celsius offered to deploy customers’ crypto assets to generate investment returns. In addition to its Earn program, Celsius offered retail investors a “Custody” program and a “Borrow” program, which allowed customers to receive retail loans in exchange for posting their crypto assets as collateral with Celsius. MASHINSKY directly marketed Celsius to retail customers located in the United States and abroad. Throughout his tenure as CEO of Celsius, MASHINSKY repeatedly made public misrepresentations regarding core aspects of Celsius’s business and financial condition in order to induce retail customers to provide their crypto assets to Celsius and continue to use Celsius’s services. MASHINSKY misrepresented, among other things, the safety of Celsius’s yield-generating activities, Celsius’s profitability, the long-term sustainability of Celsius’s high rewards rates, and the risks associated with depositing crypto assets with Celsius. As MASHINSKY falsely portrayed Celsius as a safe and secure institution, Celsius’s customer base grew exponentially. Many of those customers were retail investors rather than large institutions. By in or about the fall of 2021, Celsius had grown to become one of the largest crypto platforms in the world, purportedly holding approximately $25 billion in assets at its peak. MASHINSKY, COHEN-PAVON, and others working at Celsius also orchestrated a yearslong scheme to mislead customers and market participants regarding the market value and interest in Celsius’s proprietary crypto token CEL. They did so by manipulating the price of CEL through causing Celsius to spend hundreds of millions of dollars purchasing CEL in the open market with the objective of artificially supporting and inflating the price of CEL. At various times during MASHINSKY’s tenure, MASHINSKY, COHEN-PAVON, and their co-conspirators also caused Celsius to use its own customer deposits to fund these market purchases of CEL in order to prop up CEL’s price, without disclosing this fact to Celsius’s customers. Without Celsius’s aggressive and illegal price manipulation, the price of CEL would have been drastically lower. As COHEN-PAVON wrote to MASHINSKY in a private message exchanged during the scheme: “[T]he issue is that people are selling [CEL] and no one is buying except for us,” adding, “[t]he main problem was that the value was fake and was based on us spending millions (~8M a week and even more until February 2020) just to keep it where it is.” To further the scheme to manipulate CEL, MASHINSKY also repeatedly made false and misleading public statements concerning the nature of Celsius’s market activity and the extent to which Celsius itself was responsible for artificially supporting and inflating the price of CEL. In certain instances, MASHINSKY and other Celsius executives also personally purchased CEL for the purpose of artificially supporting CEL’s price. Artificially inflating the price of CEL allowed MASHINSKY, COHEN-PAVON, and other Celsius executives to sell their own CEL holdings for a substantial profit. MASHINSKY personally reaped approximately $42 million in proceeds from his sales of CEL, and COHEN-PAVON personally reaped at least $3.6 million in proceeds from his sales of CEL. At various times, MASHINSKY made false and misleading public statements about his own sales of CEL, claiming that he was not selling CEL, when, in reality, he was taking advantage of the upward price manipulation he had orchestrated by contemporaneously selling huge quantities of his CEL on the market, including, on occasion, to Celsius itself. In the lead up to the June 12, 2022, “Pause” of Celsius customer withdrawals, MASHINSKY continued to assure Celsius customers that Celsius was in a strong financial position and had sufficient liquidity to meet all customer withdrawal demands. Even as he made these statements, however, MASHINSKY had removed approximately $8 million worth of his own non-CEL crypto assets from the Celsius platform. * * * A chart containing the names, ages, residences, charges, and maximum penalties for the individual defendants is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, each of which today filed parallel civil actions against MASHINSKY. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam Hobson, Allison Nichols, and Noah Solowiejczyk are in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. Defendant Age Residence Charges Maximum Potential Sentences MASHINSKY 57 New York, New York Securities fraud (Count One) Commodities fraud (Count Two) Wire fraud (Count Three) Conspiracy to commit securities fraud, market manipulation, and wire fraud (Count Four) Securities fraud (Count Five) Market manipulation (Count Six) Wire fraud (Count Seven) 20 years 10 years 20 years Five years 20 years 20 years 20 years COHEN-PAVON 36 Israel Conspiracy to commit securities fraud, market manipulation, and wire fraud (Count Four) Securities fraud (Count Five) Market manipulation (Count Six) Wire fraud (Count Seven) Five years 20 years 20 years 20 years [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation. Statement of Facts U.S. Mashinsky and Cohen-Pavon Indictment Celsius Non-Prosecution Agreement


title: Former Keene Woman Indicted for Embezzling Over a Half Million Dollars

component: USAO - New Hampshire

body_text: CONCORD – A former Keene woman was indicted in connection with stealing more than $500,000 from her employer between 2015 and 2021, U.S. Attorney Jane E. Young announces. Stephanie Pratt, 38, was indicted on six counts of wire fraud. Pratt will appear before Magistrate Judge Andrea K. Johnstone for an initial appearance in federal court today at 2:00pm. According to the charging documents, Pratt was the office administrator for a company based in Hinsdale, New Hampshire. She had full access to the company’s finances, including its bank accounts and credit cards. Over the course of six-and-a-half years, Pratt stole more than $500,000 from the company. She cashed unauthorized checks to herself and entered them as payments to legitimate vendors in the company’s accounting system. Pratt also used the company’s credit cards to make unauthorized personal purchases, including for items like plane tickets, a smart TV, a hot tub, Patriots tickets, and miscellaneous herbs and spices. The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. 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. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. ###