title: Drug Trafficker Caught with 40 Pounds of Meth Sentenced to Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: EAST ST. LOUIS, Ill. – A southern Illinois district judge sentenced an Arkansas man to 360 months’ imprisonment for trafficking about 40 pounds of methamphetamine through the Metro East. Christopher Palmer, 40, of Fort Smith, Arkansas, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute meth, one count of possession of a firearm in furtherance of a drug trafficking crime and one count of felon in possession of a firearm on June 29, 2023. Palmer was sentenced to 300 months for count one, a 60-month mandatory consecutive sentence for count two and an 120-month sentence to run concurrent to count one. “As a repeat criminal offender, the defendant chose to transport drugs in bulk for distribution and unlawfully possess a firearm knowing the consequences,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate our partnership with the DEA to apprehend offenders guilty of violent and drug-related crimes.” According to court documents, two DEA highway interdiction officers pulled Palmer over as he was driving a rental car on the Illinois State Route 143 exit ramp off Interstate 70 near Marine in May 2022. Agents asked Palmer to exit the vehicle, and he complied. Once outside the vehicle, he then tried to re-enter the car and move the gearshift into drive in an attempt to evade the police. Following Palmer’s attempt to flee the traffic stop, the officers detained him and conducted an open-air canine sniff of the vehicle. The canine indicated to the presence of a narcotic odor thus initiating a probable cause search. In the trunk of Palmer’s rental vehicle, officers located a duffel bag stuffed with 40 bags holding approximately one pound each of crystal meth, totaling more than 17 kilograms of actual meth. “The scourge of illicit drugs entering our communities, to include methamphetamine, is alarming and tragic,” said Assistant Special Agent in Charge Joseph Dixon, head of DEA enforcement operations in southern Illinois. “This individual’s reckless actions and reliance on weapons to support his drug activities was equally damaging to our citizens. This violence deprived communities of a fundamental sense of security in their own homes and neighborhoods. DEA is committed to ensuring the most violent drug offenders are removed from our streets.” In the car’s center console, DEA officers located a loaded Glock 43 semi-automatic pistol. Palmer is unable to legally possess firearms due to prior felony convictions. Under federal sentencing guidelines, Palmer qualified as a “career offender” for previous drug trafficking convictions. Career offenders are eligible for longer terms of federal imprisonment. Following imprisonment, Palmer will serve five years of supervised release. DEA led the investigation, and Assistant U.S. Attorney John Trippi prosecuted the case.


title: Rockford Man Sentenced to Nine Years in Federal Prison for Trafficking Fentanyl and Illegally Possessing a Firearm

body_text: ROCKFORD — A Rockford man has been sentenced to nine years in federal prison for trafficking fentanyl and crack cocaine and illegally possessing a firearm. DERRICK A. MAYES JR., 32, pleaded guilty last year to knowingly and intentionally possessing more than 260 grams of fentanyl and nearly 97 grams of crack cocaine, and unlawfully possessing the firearm. U.S. District Judge Iain D. Johnston on Wednesday sentenced Mayes to 108 months in federal prison. Mayes admitted in a plea agreement that he illegally possessed the drugs and firearm on April 29, 2021, in his apartment and vehicle. The firearm was a loaded Smith & Wesson MP9 Shield handgun. Mayes had previously been convicted of a felony and was prohibited from possessing the gun. Mayes further admitted that in 2020 and 2021 he sold distribution quantities of fentanyl and crack cocaine to confidential informants. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. The Winnebago County Sheriff’s Office assisted in the investigation. The government was represented by Assistant U.S. Attorney Robert S. Ladd. Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.


title: Opioid Manufacturer Endo Health Solutions Inc. Agrees to Global Resolution of Criminal and Civil Investigations into Sales and Marketing of Branded Opioid Drug

component: Civil Division

body_text: Endo Health Solutions Inc. (EHSI), which is in bankruptcy, has agreed to resolve criminal and civil investigations related to the company’s sales and marketing of the opioid drug Opana ER with INTAC (Opana ER), the Justice Department announced today. The United States has also reached an agreement in Endo’s bankruptcy case to settle its monetary claims arising from the criminal and civil settlements, as well as additional tax and healthcare related claims. Under the bankruptcy agreement, the government will be paid up to $464.9 million over 10 years. EHSI’s entry into all of these agreements is subject to the approval of the U.S. Bankruptcy Court in the Southern District of New York. Under the proposed criminal resolution, EHSI agreed to plead guilty in federal court in the Eastern District of Michigan to a one-count misdemeanor information charging it with violating the Federal Food, Drug and Cosmetic Act (FDCA) by introducing misbranded drugs into interstate commerce. The criminal resolution includes the second-largest set of criminal financial penalties ever levied against a pharmaceutical company, including a criminal fine of $1.086 billion and an additional $450 million in criminal forfeiture. The proposed resolution includes a corporate criminal release regarding conduct relating to the sale, marketing, and distribution of Opana ER, but does not release any individual criminal liability. EHSI also has agreed to a civil settlement of $475.6 million to resolve its civil liability under the False Claims Act (FCA). The civil settlement will address alleged losses to federal healthcare programs that paid for Opana ER. Endo International plc and several of its affiliates, including EHSI (together, Endo), commenced Chapter 11 bankruptcy proceedings in the Southern District of New York on Aug. 16, 2022. Today, the United States announced that it also reached an agreement to resolve all of its monetary claims against the debtors — including the claims arising from the criminal plea and civil settlement — in Endo’s bankruptcy cases. In addition to the criminal and civil settlement resolutions, the bankruptcy settlement provides payment for claims for unpaid taxes and for costs incurred by federal healthcare agencies to treat individuals harmed by Endo’s products. As noted, under the bankruptcy agreement, the government will be paid up to $464.9 million over 10 years. “Companies that profit from the opioid abuse epidemic by misrepresenting the safety of their opioid products and using reckless marketing tactics to increase sales threaten the health and safety of Americans,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “With today’s announcement of a criminal guilty plea and a substantial civil settlement, the Justice Department re-affirms its commitment to holding accountable those whose illegal conduct contributed to the opioid crisis.” “Chapter 11 is an important tool for businesses to preserve value for their stakeholders. Bankruptcy protections are not a free pass to evade responsibility for criminal misconduct, civil fraud, or taxes,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s settlement ensures that Endo takes responsibility for its past misconduct, pays its federal debts, helps abate the nation’s opioid crisis by funding evidence-based treatment programs at the state and local level and distributes payments to individuals harmed by the opioid epidemic.” “Combating the opioid epidemic remains a top public health priority for the Food and Drug Administration (FDA),” said Director Patrizia Cavazzoni, M.D. of FDA’s Center for Drug Evaluation and Research. “This case demonstrates FDA and the Justice Department’s commitment to work collaboratively to hold drug manufacturers accountable if they fail to share accurate information with health care professionals about the risks and benefits of opioids.” “The metrics of the opioid crisis are staggering. When companies do not provide accurate information about the safety and abuse potential of their products, they put patients at risk of abuse and addiction,” said Associate Commissioner Michael Rogers of FDA’s Regulatory Affairs. “Such conduct will not be tolerated, and we will aggressively pursue and bring to justice those who endanger the public health in this manner.” One important condition in the resolution is that Endo would cease to operate in its current form and would not emerge from the bankruptcy. Moreover, as part of its resolution with the opioid claimants, Endo’s affiliates have agreed to a Voluntary Operating Injunction that restrains opioid marketing and sales and requires Endo to turn over millions of documents related to its role in the opioid crisis for publication in a public online archive. The Criminal Plea As part of the plea, EHSI will admit that from April 2012 through May 2013, certain EHSI sales representatives marketed Opana ER to prescribers by touting Opana ER’s purported abuse deterrence, tamper resistance, and/or crush resistance, despite a lack of clinical data supporting those claims. According to the plea agreement, certain EHSI sales managers were aware that the sales representatives were making claims of purported abuse deterrence, tamper resistance, and/or crush resistance during sales calls, including hitting demonstration “blister packs” of non-medicated sample pills with hammers and conducting other demonstrations to convey the message that Opana ER was, in fact, crush proof and tamper resistant. The approved labeling for Opana ER did not provide adequate information for healthcare providers to safely prescribe Opana ER for use as an opioid that is abuse deterrent. According to the plea agreement, EHSI was responsible for the misbranding of Opana ER by marketing the drug with a label that failed to include adequate directions for its claimed abuse deterrence use, in violation of the FDCA. EHSI voluntarily withdrew Opana ER from the market in 2017. The Civil Settlement The civil settlement announced today resolves allegations that, from 2011 to 2017, EHSI used a marketing scheme that targeted healthcare providers that EHSI knew were prescribing Opana ER for non-medically accepted indications. Aware that fewer than 10% of Opana ER prescribers wrote more than half of all Opana ER prescriptions, EHSI allegedly sought to increase its revenue from Opana ER prescriptions by focusing its marketing on those healthcare providers who prescribed the highest levels of opioids in general and Opana ER in particular. When EHSI employees raised concerns about targeting prescribers believed to be engaged in abuse, diversion or pill mill prescribing, EHSI allegedly ignored or minimized such concerns and continued to directly market Opana ER to such prescribers. The allegations resolved by the civil settlement relating to EHSI’s marketing activities include that in 2015, after marketing the reformulated Opana ER for years, EHSI sought to further increase prescriptions by partnering with a consulting company to “pull[] all the levers” it could “to drive incremental growth” of Opana ER prescriptions. In what it termed a “sales force blitz,” EHSI allegedly added 3,000 priority targets to its sales representatives’ call lists, with nearly all of these priority targets chosen because they prescribed a high volume of opioids in general or Opana ER in particular. EHSI allegedly used sales goals and contests to ensure that its sales representatives targeted these outlier prescribers, including prescribers who previously had been excluded from EHSI’s call lists as posing risks of abuse and diversion. The Bankruptcy Resolution As part of Endo’s bankruptcy plan, a group of Endo’s secured lenders will purchase Endo’s assets and operate the business under a new corporate structure. Under the bankruptcy agreement negotiated by the United States to resolve its claims against Endo, this new business will pay the United States $364.9 million over 10 years, which can be prepaid at $200 million on the bankruptcy plan’s effective date, plus up to an additional $100 million contingent on the business performance of the new company. The bankruptcy agreement resolves multiple federal claims against Endo, including the claims arising from the criminal and civil settlements, as well as tax claims and the claims of various federal healthcare agencies. The settlement agreement further precludes the new company from acquiring any unused tax credits or other beneficial tax attributes of Endo. Additionally, the new company will fund voluntary trusts in settlement of opioid-related claims against Endo, including public trusts that will pay over $450 million to state, municipal and Tribal entities to help fund programs to abate the opioid crisis. The department will credit up to $450 million of such payments against the agreed forfeiture amount. In addition to the criminal and civil claims described above, the Internal Revenue Service (IRS) filed substantial tax claims in the bankruptcy proceeding against Endo based on ongoing audits. These audits concerned, among other things, Endo’s valuation of assets it transferred to foreign affiliates and its payment of a large loan pre-payment penalty to a foreign affiliate for which it sought a tax deduction. A substantial majority of these payments were entitled to priority over Endo’s other unsecured claims. Finally, HHS’s Centers for Medicare and Medicaid Services (CMS), HHS’s Indian Health Service and the Department of Veterans Affairs (VA) asserted claims in the bankruptcy proceeding against Endo for the costs these programs incurred in providing medical care to treat individuals who suffer from opioid-use disorder as a result of their use of Opana ER and other opioids manufactured and sold by Endo. CMS has also filed a claim to recover costs it incurred based on beneficiaries’ use of other Endo products, including transvaginal mesh and ranitidine. When Endo filed for bankruptcy in August 2022, it proposed to sell substantially all of its assets in a manner that contravened key requirements of the Bankruptcy Code. Endo’s original proposal would have provided virtually no recovery to the federal government on account of its claims, while improperly paying several other creditor groups on account of their claims, even though they were entitled to lower or equal priority as certain government claims. The current bankruptcy settlement was achieved after the government objected to the proposed sale in Bankruptcy Court. Through this settlement, the government has ensured both that it is compensated for its claims and that Endo does not run afoul of the Bankruptcy Code by paying only certain of its creditors or violating the Bankruptcy Code’s priority scheme. “The opioid crisis remains a public health emergency nationwide, and those impacted are at the forefront of our work,” said the Honorable Christi A. Grimm, HHS Inspector General. “The HHS Office of Inspector General (HHS-OIG) is staunchly committed to protecting the millions of people served by federal healthcare programs from schemes such as this, while also striving to ensure they have access to necessary treatment.” “The misbranding of opioids negatively impacts the integrity of TRICARE, the military’s healthcare system relied on by more than nine million service members, retirees and their families,” said the Honorable Robert P. Storch, Department of Defense Inspector General. “Today’s settlement demonstrates the ongoing commitment of the Defense Criminal Investigative Service and its law enforcement partners to promote accountability and transparency throughout the pharmaceutical industry and prosecute those who put profits ahead of patient welfare. The delivery of quality healthcare is too important to let a single dollar go to waste.” “Veterans and their families expect and deserve the highest quality health care delivered in a safe and accountable setting. False or misleading claims about potentially dangerous drugs put veterans’ care at risk,” said the Honorable Michael J. Missal, VA Inspector General. “The VA Office of Inspector General is committed to working with our law enforcement partners to ensure the safety of those who entrust their health care to the providers and staff at VA’s 1,300 medical facilities.” “Protecting the health and safety of Federal employees, annuitants, and their families is a top priority for OPM OIG,” said Special Agent in Charge Derek M. Holt of the Office of Personnel Management Office of Inspector General (OPM-OIG). “Today’s criminal and civil resolutions demonstrate the exemplary work of our investigative staff, law enforcement partners, and colleagues at the Justice Department in holding manufacturers accountable for actions that contribute to the opioid epidemic.” The criminal investigation was conducted by the Federal Bureau of Investigation, Drug Enforcement Administration, HHS-OIG, Food and Drug Administration Office of Criminal Investigations, VA Office of Inspector General, OPM-OIG, Defense Criminal Investigative Service and Amtrak Office of Inspector General. The criminal matter was handled by Assistant Director Gabriel H. Scannapieco and Trial Attorneys Ben Cornfeld and Tara M. Shinnick of the Civil Division’s Consumer Protection Branch. The civil investigation and settlement were handled by Senior Trial Counsel Christopher Terranova and Assistant Director Natalie Waites of the Civil Division’s Commercial Litigation Branch, Fraud Section and Matthew Feeley, Deputy Chief & Healthcare Fraud Coordinator for the Southern District of Florida, with assistance from the HHS Office of General Counsel and Office of Counsel to the Inspector General. The Endo bankruptcy case is being handled by Assistant U.S. Attorneys Jean-David Barnea, Peter Aronoff and Tara Schwartz for the Southern District of New York and Assistant Directors Mary Schmergel and Kevin VanLandingham of the Civil Division’s Commercial Litigation Branch, Corporate/Financial Litigation Section. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch . For more information about the Civil Fraud Section and its enforcement efforts, visit www.justice.gov/civil/fraud-section . Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477). Except to the extent that EHSI’s admissions are part of its criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability. View the agreements here , here and here .


title: U.S. Attorney Announces Charges Against Iranian National For Multi-Year Cyber Campaign Targeting U.S. Defense Contractors And Private Sector Companies

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General for National Security; Bryan Vorndran, the Assistant Director of the Cyber Division of the Federal Bureau of Investigation (“FBI”); and James Smith, the Assistant Director in Charge of the New York Field Office of the FBI, announced today the unsealing of an Indictment charging Iranian citizen and resident ALIREZA SHAFIE NASAB for his involvement in a cyber-enabled campaign to compromise U.S. government and private entities, including the U.S. Departments of the Treasury and State, defense contractors, and two New York-based companies. The case has been assigned to U.S. District Judge Mary Kay Vyskocil. NASAB remains at large. U.S. Attorney Damian Williams said: “As alleged, Alireza Shafie Nasab participated in a cyber campaign using spearphishing and other hacking techniques to infect more than 200,000 victim devices, many of which contained sensitive or classified defense information. Cyber intrusion schemes such as the one alleged threaten our national security, and I’m proud of our law enforcement partners and the career prosecutors of this Office for using innovative technologies and investigative measures to disrupt and track down these cybercriminals.” Assistant Attorney General for National Security Matthew G. Olsen said: “While purporting to work as a cybersecurity specialist for Iran-based clients, Mr. Nasab allegedly participated in a persistent campaign to compromise U.S. private sector and government computer systems. Today’s charges highlight Iran’s corrupt cyber ecosystem, in which criminals are given free rein to target computer systems abroad and threaten U.S. sensitive information and critical infrastructure. Our National Security Cyber Section remains focused on disputing these cross-border hacking schemes and holding those responsible to account.” FBI Cyber Division Assistant Director Bryan Vorndran said: “The FBI will leverage all of our capabilities in combatting the threat waged by Iranian hacker organizations against America’s public and private sector. We encourage everyone to practice proper cyber hygiene to mitigate the risk of becoming vulnerable to malicious actors like Nasab. The close collaboration with partners that led to today’s unsealed indictment does not end there, and we are looking forward to continued teamwork in this space.” FBI New York Assistant Director in Charge James Smith said: “Hostile cybercriminals are determined to use hacking campaigns to harm public safety and threaten our national security. Alireza Nasab, over an extended number of years, allegedly participated in an aggressive campaign of cyberattacks targeting U.S. government agencies, defense contractors, and New York-based companies working closely with the Department of Defense. This case is a reminder that we all need to maintain proper cybersecurity and awareness to avoid falling victim to malicious cyber actors. The FBI will continue to lead the fight against hostile nation state actors attempting to harm our country in cyberspace.” According to the allegations contained in the Indictment unsealed today in Manhattan federal court: [1] From at least in or about 2016 through at least in or about April 2021, ALIREZA SHAFIE NASAB and other conspirators were members of a hacking organization that participated in a coordinated multi-year campaign to conduct and attempt to conduct computer intrusions. These intrusions targeted more than a dozen U.S. companies and the U.S. Departments of the Treasury and State. The hacking group’s private sector victims were primarily cleared defense contractors, which are companies that support U.S. Department of Defense programs. In addition, the group targeted a New York-based accounting firm and a New York-based hospitality company. In conducting their hacking campaigns, the group used spearphishing — that is, tricking an email recipient into clicking on a malicious link — to infect victim computers with malware. In the course of their campaigns against one victim, the group compromised more than 200,000 employee accounts. At another victim, the conspirators targeted 2,000 employee accounts. In order to manage their spearphishing campaigns, the group created and used a particular computer application, which enabled the conspirators to organize and deploy their spearphishing attacks. In the course of these spearphishing attacks, the conspirators compromised an administrator email account belonging to a defense contractor (“Defense Contractor-1”). Access to this administrator account empowered the conspirators to create unauthorized Defense Contractor-1 accounts, which the conspirators then used to send spearphishing campaigns to employees of a different defense contractor and a consulting firm. In addition to spearphishing, the conspirators utilized social engineering, which involved impersonating others, generally women, in order to obtain the confidence of victims. These social engineering contacts were another means the conspiracy used to deploy malware onto victim computers and compromise those devices and accounts. NASAB took part in these schemes. During his participation in the scheme, he was employed by Mahak Rayan Afraz, an Iran-based company that purported to provide cybersecurity services, but which was, in fact, a front for the conspirators’ operations. NASAB was responsible for procuring infrastructure used by the conspiracy. During the course of this conduct, NASAB used the stolen identity of a real person in order to register a server and email accounts used in the course of the cyber campaigns. * * * NASAB, 39, of Iran, is charged with one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the assigned judge. Concurrent with the unsealing of the Indictment, the Department of State’s Rewards for Justice Program is offering a reward of up to $10 million for information leading to the identification or location of NASAB. Anyone with information on NASAB and his malicious cyberactivity should contact Rewards for Justice via their Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion (the Tor browser is required). Mr. Williams praised the outstanding investigative work of the FBI, including the work of the FBI Cyber Division. The case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel, Dina McLeod, and Daniel G. Nessim are in charge of the prosecution, with assistance from Trial Attorney Matthew Chang of the National Security Division’s Cyber Section. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Chief Operating Officer And Vice President Of International Cargo Airline Plead Guilty To Defrauding Their Employer

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty pleas today of LARS WINKELBAUER and ABILASH KURIEN in connection with a massive scheme to defraud Polar Air Cargo Worldwide, Inc. (“Polar”), a leading cargo airline, of tens of millions of dollars in revenue. WINKELBAUER pled guilty today to conspiracy to commit wire fraud and money laundering before U.S. District Judge Jesse M. Furman, and KURIEN pled guilty yesterday to the same offense. U.S. Attorney Damian Williams said: “In April 2023, this Office charged 10 defendants for their involvement in a widespread scheme that permeated nearly every facet of Polar Air Cargo Worldwide. To date, nine individuals have pled guilty, including Lars Winkelbauer and Abilash Kurien, two top executives who have confessed today and are poised to face time in prison for their betrayal of the company’s trust and that of the wider community. Wire fraud and money laundering are not merely financial crimes; they erode faith in institutions, undermine economic stability, and harm innocent individuals and businesses. This Office and our partners recognize that profound impact and we will not falter in our work to uphold the rule of the law.” According to the allegations contained in the Indictment and statements made in public filings and in public court proceedings: From at least in or about 2009 through in or about July 2021, WINKELBAUER, KURIEN, and at least eight other individuals participated in a massive scheme to defraud Polar. At all relevant times, WINKELBAUER, KURIEN, and two co-defendants were senior executives of Polar (the “Executive Defendants”), and six co-defendants (the “Vendor Defendants”) owned and operated various Polar vendors and customers. WINKELBAUER was Polar’s Chief Operating Officer and Executive Vice President and is the most senior of the Executive Defendants. KURIEN was the Vice President of Marketing, Revenue Management, and Network Planning. The Executive Defendants agreed to accept millions of dollars in kickbacks from the Vendor Defendants and also reaped substantial financial benefits as a result of their secret ownership interests in certain Polar vendors, in exchange for ensuring that those vendors received favorable business arrangements with Polar. The fraud they perpetrated — which involved a substantial portion of Polar’s senior management and at least 10 customers and vendors of Polar — led to pervasive corruption of Polar’s business, touching nearly every aspect of the company’s operations for over a decade. As a result of the scheme, the Executive Defendants, along with two co-conspirators who also worked as senior executives at Polar, received unlawful payments, either directly or through various limited liability companies they controlled, in excess of approximately $23 million in kickback payments or disbursements as a result of their ownership of conflicted companies. WINKELBAUER and KURIEN are the eighth and ninth defendants to plead guilty in the case thus far. * * * WINKELBAUER, 48, of Bangkok, Thailand, and KURIEN, 46, of Wilton, Connecticut, each pled guilty to one count of conspiracy to commit wire fraud and money laundering, which carries a maximum sentence of five years in prison. WINKELBAUER agreed to pay forfeiture in the amount of $6,774,039.30 and to make restitution to Polar in the amount of $33,539,396. KURIEN agreed to pay forfeiture in the amount of $7,192,064.41 and to make restitution to Polar in the amount of $22,956,341. WINKELBAUER is scheduled to be sentenced by Judge Furman on May 30, 2024, and KURIEN is scheduled to be sentenced by Judge Furman on July 23, 2024. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Katherine Reilly, Danielle Kudla, Kevin Mead, and Qais Ghafary are in charge of the prosecution.


title: U.S. Attorney’s Office staff stress importance of making smart choices to local students

component: USAO - Florida, Southern

body_text: MIAMI – Students from Bowman Ashe/Doolin K-8 Academy in Miami recently attended a Making Smarter Choices Field Trip at the U.S. Attorney’s Office for the Southern District of Florida. Staff from the Law Enforcement Coordination and Community Outreach Section (LEC/COS) provided real-world examples to show students the perils of doing the wrong thing and how easy it can be to stray from the correct path. Incarcerated inmate testimonial videos focused on lives wasted, regret and the desire for redemption. “If I could be the good for you then maybe you could be the good for me,” said an inmate doing 25 years to life for the murder of a husband/father. “All I’m asking for is a little redemption.” Unfortunately for him, time for redemption has passed. And that is what LEC/COS Chief J.D. Smith stressed to the students. One mistake can change everything. “Each day you have a choice to make,” said Smith. “Am I going to be a good person or a bad person? It’s a daily decision that is in your hands.” The field trip is designed to motivate children to work hard, uplift themselves and their communities, and do things about which they feel passion. “If you’re going to fail, you may as well fail at something you love,” said Smith. The second part of the field trip consisted of a mock trial whereby students tried a murder case in a federal courtroom. Hands shot up as Smith asked who would like to be defense and prosecution attorneys. Roles also included bailiff, court clerk and jury—in which the majority of students participated. Assistant U.S. Attorney Michele S. Vigilance played the judge role. The case centered on fraternity hazing that went too far and ended in a student’s death. Each student with a speaking role was provided a script and advised to speak clearly, loudly, and confidently. “The team that wins will be the one that can step up to the microphone and deliver,” said Smith. The mock trial challenges students to come out of their shells and play the part. Post field trip evaluation forms from the students routinely sing the praises of the trial, from the roles to the décor and serious nature of the courtroom. “Many of the students we receive throughout the school year are interested in becoming lawyers,” said Smith. “Our field trip gives them a sense of what it’s like.” You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Southern District of Florida at www.justice.gov/usao-sdfl . Community Outreach Specialist John Hampton gets sworn in by a Bowman Ashe/Doolin K-8 Academy student prior to testifying during a recent mock trial. This trial was part of the U.S. Attorney’s Office for the Southern District of Florida’s Making Smarter Choices Field Trip. ###


title: Iranian National Charged for Multi-Year Hacking Campaign Targeting U.S. Defense Contractors and Private Sector Companies

component: Federal Bureau of Investigation (FBI)

body_text: The Justice Department unsealed an indictment charging an Iranian national with involvement in a cyber-enabled campaign to compromise U.S. governmental and private entities, including the U.S. Departments of the Treasury and State, defense contractors, and two New York-based companies. According to court documents, from at least in or about 2016 through in or about April 2021, Alireza Shafie Nasab, 39, of Iran, and other co-conspirators were members of a hacking organization that participated in a coordinated multi-year campaign to conduct and attempt to conduct computer intrusions. These intrusions targeted more than a dozen U.S. companies and the U.S. Departments of the Treasury and State. Nasab remains at large. “While purporting to work as a cybersecurity specialist for Iran-based clients, Mr. Nasab allegedly participated in a persistent campaign to compromise U.S. private sector and government computer systems,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s charges highlight Iran’s corrupt cyber ecosystem, in which criminals are given free rein to target computer systems abroad and threaten U.S. sensitive information and critical infrastructure. Our National Security Cyber Section remains focused on disputing these cross-border hacking schemes and holding those responsible to account.” “As alleged, Alireza Shafie Nasab participated in a cyber campaign using spear phishing and other hacking techniques to infect more than 200,000 victim devices, many of which contained sensitive or classified defense information,” said U.S. Attorney Damian Williams for the Southern District of New York. “Cyber intrusion schemes such as the one alleged threaten our national security, and I’m proud of our law enforcement partners and the career prosecutors of this office for using innovative technologies and investigative measures to disrupt and track down these cybercriminals.” “The FBI will leverage all of its capabilities in combating the threat posed by Iranian hacker organizations to America’s public and private sectors,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “The close collaboration with partners that led to today’s unsealed indictment of Alireza Shafie Nasab will continue to keep the pressure on cyber adversaries.” The hacking group’s private sector victims were primarily cleared defense contractors, which are companies that support U.S. Department of Defense programs. In addition, the group targeted a New York-based accounting firm and a New York-based hospitality company. According to the indictment, in conducting their hacking campaigns, the group used spear phishing — that is, tricking an email recipient into clicking on a malicious link — to infect victim computers with malware. In the course of their campaigns against one victim, the group compromised more than 200,000 victim employee accounts. At another victim, the conspirators targeted 2,000 employee accounts. In order to manage their spearphishing campaigns, the group created and used a particular computer application, which enabled the conspirators to organize and deploy their spear phishing attacks. In the course of these spear phishing attacks, the conspirators compromised an administrator email account belonging to a defense contractor (Defense Contractor-1). Access to this administrator account empowered the conspirators to create unauthorized Defense Contractor-1 accounts, which the conspirators then used to send spear phishing campaigns to employees of a different defense contractor and a consulting firm. In addition to spearphishing, the conspirators utilized social engineering, which involved impersonating others, generally women, in order to obtain the confidence of victims. These social engineering contacts were another means the conspiracy used to deploy malware onto victim computers and compromise those devices and accounts. Nasab took part in these schemes. During his participation in the scheme, he was employed by Mahak Rayan Afraz, an Iran-based company that purported to provide cybersecurity services, but which was, in fact, a front for the conspirators’ operations. Nasab was responsible for procuring infrastructure used by the conspiracy. During the course of this conduct, Nasab used the stolen identity of a real person in order to register a server and email accounts used in the course of the cyber campaigns. Nasab is charged with one count of conspiracy to commit computer fraud, which carries a maximum penalty of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison; one count of wire fraud, which carries a maximum penalty of 20 years in prison and one count of aggravated identity theft, which carries a mandatory consecutive term of two years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Concurrent with the unsealing of the indictment, the U.S. Department of State’s Rewards for Justice Program is offering a reward of up to $10 million for information leading to the identification or location of Nasab. Anyone with information on Nasab and his malicious cyberactivity should contact Rewards for Justice via their Tor-based tips-reporting channel at: he5dybnt7sr6cm32xt77pazmtm65flqy6irivtflruqfc5ep7eiodiad.onion (the Tor browser is required). The FBI New York Field Office and Cyber Division are investigating the case. Assistant U.S. Attorneys Ryan B. Finkel, Dina McLeod and Daniel G. Nessim for the Southern District of New York’s Complex Frauds and Cybercrime Unit are prosecuting the case, with valuable assistance from Trial Attorney Matthew Chang of the National Security Division’s National Security Cyber Section. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Mexican National Pleads Guilty to Illegal Re-entry of a Deported Alien Previously Convicted of a Felony

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS , LOUISIANA – U.S. Attorney Duane A. Evans announced that JOSE MANUEL CHENO , age 55, a citizen of Mexico, pleaded guilty on February 28, 2024 to illegal reentry of a deported alien previously convicted of a felony, in violation of Title 8, United States Code, Sections 1326(a)and (b)(2). According to court documents, JOSE MANUEL CHENO (“ CHENO ”) admitted to reentering the United States after being previously deported on January 27, 2018. Furthermore, on May 5, 2005, CHENO was convicted of Conspiracy to Possess with the Intent to Distribute Marijuana in United States District Court, District of Arizona. CHENO faces a maximum term of imprisonment of twenty (20) years, followed by up to three (3) years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. U.S. District Court Judge Sarah S. Vance has set sentencing for June 26, 2024. U.S. Attorney Evans praised the work of the United States Department of Immigration and Customs Enforcement, Enforcement and Removal Operations and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Jon Maestri of the General Crimes Unit is in charge of the prosecution.


title: Florida Man Pleads Guilty To Kickback Scheme To Defraud Williams Sonoma

component: USAO - California, Northern

body_text: SAN FRANCISCO – Augusto Alizo, pleaded guilty in federal court today to charges related to his role in a multi-million-dollar fraudulent kickback scheme, announced United States Attorney Ismail J. Ramsey and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley. The plea was accepted by the Hon. Richard Seeborg, U.S. District Judge. In his plea agreement, Alizo, of Weston, Florida, admitted he conspired with two co-defendants—a Vice President at Williams Sonoma, Inc. (WSI), and Kourosh Mirmehdi, Alizo’s direct report at the global logistics company where they both worked—to divert and steal more than $4 million in commercial real estate broker commission rebates that should have gone to WSI. WSI is a home-goods retailer headquartered in San Francisco that operates brands such as Williams Sonoma, Pottery Barn, and West Elm. The global logistics company where Alizo worked helped clients secure commercial real estate, including large commercial warehouses. In his plea agreement, Alizo admitted that he concealed from the global logistics company that co-defendant Mirmehdi was helping WSI obtain commercial warehouse space. Alizo also admitted that he and his co-defendants concealed from WSI and the global logistics company that he, Mirmehdi, and the conspiring Vice President at WSI pocketed real estate broker commissions rebates that should have gone to WSI. As part of his plea agreement, Alizo admitted that from 2020 through 2022, co-defendant Mirmehdi was working to secure commercial warehouse space for WSI in Georgia, New Jersey, Arizona, and California. Alizo hid this from their employer. Alizo also hid from their employer the fact that his co-defendants were negotiating with real estate brokers to obtain broker commission rebates that should have gone to WSI. These broker commissions rebates were paid to REM Group, a shell company owned by the conspiring WSI Vice President, and then distributed to private bank accounts controlled by Alizo, Mirmehdi, and the conspiring WSI Vice President. REM Group was not affiliated with WSI. Alizo also admitted in his plea agreement that he knew co-defendant Mirmehdi was holding himself out to real estate brokers as an employee of the global logistics company and that in negotiating with real estate brokers Mirmehdi was benefitting from status and bargaining power due to his position and title at the global logistics company. Alizo further admitted that he knew Mirmehdi was falsely and deceptively representing that WSI was the global logistics company’s client when in fact it was not. Alizo concealed this deception from his and Mirmehdi’s employer. As part of his plea agreement, Alizo admitted that he acted with the intent to deceive and cheat both his employer and WSI to further the scheme and conspiracy to defraud so that he and his co-defendants could obtain broker commissions rebates that should have gone to WSI. Alizo admitted that he received approximately 25% of the broker commissions and rebates obtained as part of the conspiracy. Alizo admitted that the conspirators obtained a total of $4,110,323.81 and that he personally obtained $965,526.51. Alizo was indicted by a federal grand jury on April 11, 2023. He was charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering conspiracy, in violation of 18 U.S.C § 1956(h). Under the plea agreement, Alizo pleaded guilty to the wire fraud conspiracy. If Alizo complies with his plea agreement, the remaining counts will be dismissed at sentencing. Alizo is currently released on bond. His sentencing hearing is scheduled for August 27, 2024. The maximum statutory penalty is 20 years in prison for each of the wire fraud and money laundering conspiracy counts, as well as a $250,000 fine for the wire fraud conspiracy count and a $500,000 fine for the money laundering conspiracy count. As part of any sentence the court also may order Alizo to serve an additional term of supervised release and to pay restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Alizo and three co-defendants were charged via grand jury indictment on April 11, 2023. Co-defendant Khourosh Mirmehdi pleaded guilty on May 30, 2023. Co-defendant Michael Podhurst pleaded guilty on June 9, 2023. The charges against the conspiring WSI Vice President are pending. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Aarian Beti. The prosecution is the result of an investigation by the CI.


title: Louisiana Physician Sentenced for Tax Evasion

component: Tax Division

body_text: A Louisiana physician was sentenced today to 52 months in prison for tax evasion. According to court documents and evidence presented at trial, Dr. Melissa Rose Barrett, of Baton Rouge, owned and operated two urgent care clinics — Central STAT Care and STAT Care Clinic — and owed the IRS approximately $1.6 million in income taxes, excluding interest and penalties. The IRS notified Dr. Barrett that she owed taxes by letter correspondence, telephone calls, bank account and property seizures as well as interviews with IRS agents. Dr. Barrett sought to thwart the IRS’ collection efforts by submitting to the IRS a false IRS Form 433-A, Collection Information Statement that underreported her income and inaccurately detailed her assets, by not making cash deposits into banks and instead accumulating those funds in a safe, and by using nominees to purchase millions of dollars in real estate and personal property, including a personal residence, a boat, an airplane and several parcels of farmland. In addition to the term of imprisonment, U.S. District Judge Brian A. Jackson ordered Dr. Barrett to serve one year of supervised release and to pay a $200,000 fine. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana made the announcement. IRS Criminal Investigation investigated the case. Trial Attorney Wilson Stamm of the Tax Division and Deputy Criminal Chief Edward Warner and Assistant U.S. Attorney Elizabeth White for the Middle District of Louisiana prosecuted the case.


title: U.S. Attorney Announces Capture Of Fugitive Charged In Connection With Shooting Of Five-Year-Old Girl

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Ralph Sozio, the U.S. Marshal for the Southern District of New York; and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the arrest of AUSTIN MORRISHOW, who was charged with possessing ammunition after conviction of a felony. MORRISHOW and a co-defendant, CURTIS WHITE, were congregated outside on a busy sidewalk in the Bronx the Friday before the July Fourth holiday weekend last year when they fired multiple shots at three cars in the Bronx, New York, hitting and seriously injuring a five-year-old child sitting in the backseat of one of the cars. MORRISHOW, who had been on the run since June 30, 2023, following the shooting, was arrested yesterday afternoon in the Bronx, New York. MORRISHOW’s and WHITE’s cases are assigned to District Judge Loretta A. Preska. MORRISHOW was presented and arraigned before U.S. Magistrate Judge Jennifer E. Willis today, and WHITE was previously arrested and arraigned before District Judge Paul A. Crotty. U.S. Attorney Damian Williams said: “As alleged, Austin Morrishow recklessly fired multiple rounds of illegally possessed ammunition at innocent New Yorkers, striking and injuring a young child and endangering the lives of other bystanders. Instead of turning himself in, Morrishow fled for over seven months. Today’s arrest keeps our promise to work relentlessly with our law enforcement partners to track down and capture fugitives—whether it takes seven days, seven weeks, or seven months—and bring them to justice.” U.S. Marshal Ralph Sozio said: “This was another successful takedown of an alleged dangerous fugitive, who was involved in the shooting of an innocent 5-year-old girl. I want to thank the Southern District of New York Warrant Squad, the NY/NJ Regional Fugitive Task Force and the NYPD for their relentless pursuit in apprehending him without incident. This is a true testament that we will be relentless in our pursuit to bring you to justice, making our city streets safe.” NYPD Commissioner Edward A. Caban said: “This arrest is about intelligence-driven crime-fighting and, above all else, consequences. If you commit a violent felony in New York City, we will find you, we will arrest you, and we will build a case to prosecute you to the fullest extent of the law. I thank our unremitting NYPD detectives, and all the members of the U.S. Marshals Service Regional Fugitive Task Force, for taking another alleged criminal off our streets.” As alleged in the Indictment and the Complaint: [1] On June 30, 2023, MORRISHOW and WHITE were gathered outside at a makeshift memorial for an individual who had been shot and killed the day before. A tan sedan was parked nearby with a five-year-old girl in the backseat and her father in the front seat, waiting for two friends to arrive so that they could attend a car show. After the two friends arrived in a silver sedan and red minivan, the driver of the silver sedan pulled next to the tan sedan, revving his engine and causing it to backfire. The sound of the backfire caused MORRISHOW, WHITE, and others to scatter. MORRISHOW took cover behind a parked vehicle and fired a .40 caliber pistol multiple times at the three cars, which began fleeing from the gunfire. A still image from surveillance video footage is below with MORRISHOW circled in red. WHITE ran down the street after the fleeing cars, firing a .380 caliber pistol. A still image from surveillance video footage is below with WHITE circled in red. After the victim’s father drove his daughter to safety a couple blocks away, he got out of his car to check on his daughter. Realizing that she had been shot in the back, he held her in his arms and yelled for somebody to call an ambulance. The driver of the silver car called 911. Minutes later, NYPD officers arrived and transported the victim to the hospital. The NYPD subsequently recovered seven .40 caliber shell casings from the vicinity of the parked car near where MORRISHOW fired his gun, two .380 caliber shell casings from the street near where WHITE fired his gun, and a .380 caliber firearm from an apartment that WHITE was seen entering immediately after the shooting. MORRISHOW was not permitted to possess a firearm or ammunition because of his prior federal conviction for using and carrying a firearm during and in relation to a narcotics conspiracy, and WHITE was not permitted to possess a firearm or ammunition because of his prior state conviction for attempted first-degree assault with intent to cause serious injury with a weapon. * * * MORRISHOW, 26, and WHITE, 26, both of the Bronx, New York, are each charged with one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. Mr. Williams praised the outstanding work by the U.S. Marshals Service and the NYPD to apprehend MORRISHOW. Mr. Williams also thanked the Bureau of Alcohol, Tobacco, Firearms, and Explosives for their participation in the investigation. The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jerry J. Fang is in charge of the prosecution. The charges contained in the Complaint and Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.


title: Red Lake Man Sentenced to 83 Months in Prison for Sexual Abuse of a Minor

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Red Lake man has been sentenced to 83 months in prison followed by seven years of supervised release for sexually abusing a minor on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger. According to court documents, on August 27, 2022, Ronald Royce Pearson, 63, was visiting a residence on the Red Lake Indian Reservation. While there, Pearson engaged in a sexual act with a minor. On September 6, 2023, Pearson pleaded guilty in U.S. District Court to one count of sexual abuse of a minor. He was sentenced yesterday by Judge Nancy E. Brasel. This case is the result of an investigation conducted by the FBI, the Red Lake Police Department, and the U.S. Customs and Border Protection. Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.


title: New Orleans Man Pleads Guilty for Theft from Interstate Shipmen

body_text: NEW ORLEANS , LOUISIANA – United States Attorney Duane A. Evans announced that MALIK MACK , age 26, a resident of New Orleans, pleaded guilty on February 28, 2024 to theft from an interstate shipment and aiding and abetting in that theft, in violation of Title 18, United States Code, Sections 659 and 2. According to court documents, on the evening of March 29, 2023, MACK and three other suspects entered the Norfolk Southern Railyard, a freight consolidation facility that houses interstate shipments, to steal Ford F-150 Rapture Crew Cab trucks. MACK was apprehended by law enforcement officers and admitted to the crime. At sentencing, MACK faces a maximum term of imprisonment of ten (10) years, up to a $250,000 fine, up to three (3) years of supervised release, and a mandatory special assessment fee of $100. U.S. Attorney Evans praised the work of Norfolk Southern Railway Police, the United States Department of Homeland Security, the New Orleans Police Department, and the Louisiana State Police. The case is being prosecuted by Assistant United States Attorney Troy Bell of the Violent Crime Unit.


title: Montgomery Man Sentenced to 64 Months in Federal Prison for Identity Theft and Cashing Stolen Checks

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced that a federal judge sentenced 40-year-old William Hayden Searcy, from Montgomery, Alabama, to 64 months in prison. The sentence follows Searcy’s entry of a guilty plea to charges of bank fraud and aggravated identity theft. According to the plea agreement and other court records, in March and April of 2022, Searcy cashed fraudulent checks at various locations around Montgomery. Details discussed during Searcy’s sentencing hearing on February 22, 2024, revealed that Searcy: (1) stole checks from mailboxes; (2) washed the checks using chemicals that removed ink; (3) wrote new information on the checks making them payable to accounts he controlled; and (4) went to financial institutions and cashed the altered checks. Searcy also used the identities from some of the stolen checks to print checks of his own. The federal judge also ordered Searcy to pay restitution in the amount of $8,203.42. A co-defendant in the scheme, Tyler Scott Kidd, 27, from Millbrook, Alabama, pleaded guilty to bank fraud and is scheduled to be sentenced on May 15, 2024. Kidd will be jointly liable with Searcy for the restitution amount. “Mail theft and check fraud are nationwide problems,” said Acting United States Attorney Ross. “Although the Postal Service works diligently to ensure that mail is delivered securely, individuals frequently find ways to exploit the mail system. Individuals should be mindful of the receptacles used to mail checks and check bank accounts regularly for suspicious transactions.” “When identity thieves use the U.S. Mail to further their scheme, Postal Inspectors work tirelessly with federal prosecutors to bring them to justice,” said Scott Fix, Inspector-in-Charge of the Houston Division. “Fraud and identity theft are not victimless crimes and individuals such as Searcy who commit these crimes face significant penalties as a result of their criminal activity. Postal Inspectors will continue to pursue these individuals in order to preserve the financial integrity of innocent Americans. We extend our appreciation to the Montgomery Police Department that assisted with this investigation.” The United States Postal Inspection Service and the Montgomery Police Department investigated this case, which Assistant United States Attorney Michelle R. Turner prosecuted.


title: Grandparent Scammer Sentenced to Federal Prison

body_text: PROVIDENCE, RI – A New York City man who traveled to various U.S. locations, including Rhode Island, to pick-up thousands of dollars in cash provided by seniors who had become the unsuspecting victims of so called “grandparent scams,” has been sentenced to federal prison and ordered to repay scam victims more than three quarters of a million dollars, announced United States Attorney Zachary A. Cunha. Jean Richard Audate, 38, was sentenced on Wednesday by U.S. District Court Judge William E. Smith to 30 months of incarceration to be followed by three years of federal supervised release. He was also ordered to pay a total of $867,149 to victims of the scam. Audate pleaded guilty on February 24, 2023, to charges of conspiracy to commit mail fraud and mail fraud. According to information presented to the court, in January 2021, New Haven, CT, Police began to receive reports from out-of-state police departments that elderly residents in their areas had been defrauded out of large amounts of money through a grandparent scam. A broader investigation by the New Haven Police and the FBI revealed that members of the conspiracy contacted elderly victims throughout the United States, including in Rhode Island, by telephone. Posing as the victim’s grandchild, a relative, a lawyer, or other individual, members of the conspiracy falsely told the victim that a relative, typically the victim’s grandchild or child, had been arrested or incarcerated in connection with a car accident, and that the relative needed money for bail or related legal expenses. To conceal the crime and prevent victims from sharing information about the calls and requests for money, members of the conspiracy falsely told victims that a “gag order” was in place in their relative’s legal matter that prohibited the victim from sharing information with anyone else. In numerous instances, at the direction of others, Audate traveled to various locations where he retrieved the cash payments that, as directed by the scammers, had been shipped by the victims to designated addresses. The case was prosecuted by Assistant U.S. Attorney John P. McAdams. United States Attorney Cunha thanks the Lincoln, RI, and Brookline, MA, Police Departments for their assistance in the investigation. ###


title: Two Men Accused of Fatal St. Louis Robbery

body_text: ST. LOUIS – Two men are facing federal drug charges after a fatal shooting in St. Louis in January. Derrick Darnell Clark, 19, and Jeremiah Martez Sutton, 22, were each indicted Wednesday on one count of conspiracy to possess with the intent to distribute controlled substances and one count of aiding and abetting the discharge of a firearm in furtherance of a drug trafficking crime. The indictment alleges that the shooting occurred on Jan. 28, 2024, during the drug conspiracy. Both men were originally charged by complaint in U.S. District Court in St. Louis February 9. Charging documents accuse the men of fatally shooting one person and seriously wounding another during a robbery in an apartment in the 900 block of Goodfellow Boulevard in St. Louis. Clark was arrested February 22. Sutton is still being sought by authorities. The drug conspiracy charge carries a possible penalty of up to 20 years in prison, a $1 million fine or both. The aiding and abetting the discharge of a firearm in furtherance of a drug trafficking crime carries a penalty of at least 10 years and up to life in prison, a $250,000 fine or both. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The St. Louis Metropolitan Police Department and the FBI investigated the case.


title: Dothan Man Sentenced to 130 Months in Prison for Robbing a Mail Carrier at Gunpoint

body_text: Montgomery, Alabama – On February 27, 2024, a federal judge sentenced 38-year-old Jermain Tyrone Holmes, from Dothan, Alabama, to 130 months in prison, announced Acting United States Attorney Jonathan S. Ross. The sentence followed his conviction for robbery of a postal worker. In addition, the judge ordered that Holmes serve five years of supervised release following his prison term. Federal inmates are not eligible for parole. According to the plea agreement and other court records, on April 26, 2023, a Dothan mail carrier was working his route when he encountered Holmes standing beside one of the mailboxes. Holmes asked the mail carrier for directions, then pulled out a handgun and demanded money. The mail carrier complied and gave Holmes his wallet and other personal items. Holmes fled the scene on foot. The carrier then called 911 to report the robbery. Responding officers apprehended Holmes a short time later. “Postal workers are a crucial part of our communities, providing an invaluable service to private citizens and businesses alike,” said Acting United States Attorney Ross. “My office takes its duty to protect postal employees and the U.S. Mail very seriously. Blatant acts of violence against postal workers cannot, and will not, go unpunished.” “Postal Inspectors’ duties include protecting postal employees and investigating violent crimes that are committed against them,” said Scott Fix, Inspector-in-Charge for the Houston Division. “The sentence handed down to Jermain Holmes for the robbery of our Letter Carrier should serve as a reminder we will aggressively investigate to find those responsible and bring them to justice. We are grateful to the Dothan, AL Police Department for their assistance in this investigation.” The United States Postal Inspection Service and the Dothan Police Department investigated this case, which Assistant United States Attorney Brandon W. Bates prosecuted.


title: Justice Department Informs City of Lexington and Lexington Police Department That Automatically Jailing People for Unpaid Fines Violates Constitution

component: Civil Rights Division

body_text: The Justice Department sent a letter today to the City of Lexington, Mississippi, and the Lexington Police Department (LPD) raising significant concerns regarding their practice of jailing people for unpaid fines without first assessing whether they can afford to pay them. Specifically, the department informed the City and LPD that their practice violates the Constitution’s prohibition on wealth-based detention in two ways: first, by requiring people who are arrested to pay down outstanding fines before they can be released from jail, and second, by issuing and arresting people on warrants for outstanding fines. Today’s letter is a part of the Justice Department’s ongoing civil pattern or practice investigation into the City of Lexington and LPD. The investigation, opened on Nov. 8, 2023, seeks to determine whether there are systemic violations of the Constitution and federal law related to use of force; stops, searches and arrests; discriminatory policing and the right to free speech. Although the investigation continues, the Justice Department determined that it was critically important to identify these violations now rather than waiting until the conclusion of the inquiry. “It’s time to bring an end to a two-tiered system of justice in our country in which a person’s income determines whether they walk free or whether they go to jail,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Unjust enforcement of fines and fees is unlawful, and it traps people and their families in a vicious cycle of poverty and punishment. There is great urgency underlying the issues we have uncovered in Mississippi, and we stand ready to work with officials to end these harmful practices and ensure the civil and constitutional rights of Lexington residents are protected.” “One third of Lexington’s residents live below the poverty line. The burden of unjust fines and fees undermines the goals of rehabilitation and erodes the community’s trust in the justice system,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “Each step we take towards fair and just policing rebuilds that trust. Lexington and LPD can take those steps now, while our investigation is ongoing.” Justice Department officials met with city and police leaders earlier today about their unlawful practice, which investigators identified during its ongoing investigation. Lexington officials have pledged to work with the Justice Department to ensure that the collection of fines and fees complies with legal requirements. On April 20, 2023, the Justice Department issued a Dear Colleague Letter on Fines and Fees explaining that before a person can be imprisoned for failure to pay a fine or fee, the Constitution requires courts to first determine whether the person lacks the resources to pay. In most circumstances, if a person cannot afford to pay, imprisonment for unpaid fines or fees is unlawful. Additional information about the Justice Department’s Civil Rights Division is available on its website at www.justice.gov/crt . Information specific to the Civil Rights Division’s police reform work can be found at www.justice.gov/crt/file/922421/download .


title: Former Marion County Correctional Officer Sentenced to Twenty Years in Federal Prison for Sexually Exploiting Children he met and Groomed Over Discord and Snapchat

body_text: INDIANAPOLIS- Cory Terry, 26, of Indianapolis, has been sentenced to 20 years in federal prison after pleading guilty to two counts of sexual exploitation of a minor and one count of possession of child sexual abuse material. According to court documents, between April 9 and 26, 2022, the defendant met an 11-year-old girl online and communicated with her using Discord, a communications platform popular with adults and children interested in gaming. During their online communications, Terry told the child that he “didn’t mind” that she was only eleven. He engaged in sexually explicit conversations with the child and directed her to send him videos of herself engaged in sexually explicit conduct. Terry also purchased items for the girl and sent her explicit anime images of older men engaging in sex acts with young girls. Individuals with a sexual interest in children engage in these behaviors, often referred to as “grooming,” to build trusting relationships with potential victims and lower their defenses to sexual exploitation by adults. The victim repeatedly told Terry she did not want to send him sexually explicit material, but Terry, threatened and coerced her into complying with his demands, on one occasion, telling the eleven-year-old “you don’t get to say no.” Terry continued these demands despite the child telling him that her parents were nearby, and she wanted to go to sleep. Investigators also identified a second victim, a fifteen-year-old girl online and communicated with her using Snapchat, a social media application. Between March 19, 2022, and July 29, 2022, Terry engaged in sexually explicit conversations with this second child. During those conversations, Terry referred to the child as “little one” and requested that she produce sexually explicit images and videos of herself for him. Terry told this child “From now on you will show me all of your little body whenever I need it…” Terry used threats, coercion, and enticement to obtain numerous images and videos depicting the child engaged in sexually explicit conduct. During a search of Terry’s Indianapolis residence, FBI agents recovered multiple cell phones containing at least five sexually explicit videos of one of the victims and over 600 images and videos depicting the sexual abuse of children as young as three years of age, including children being subjected to sadomasochistic conduct. At the time of his arrest, Terry was employed as a Corrections Officer in Marion County, Indiana. “Pedophiles know that the applications and devices our children use every day give them access to groom and sexually exploit victims anywhere in the world,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. Zachary A. Myers. “The criminals who seek to exploit our children are at fault and must be held accountable, especially when they hold positions of public trust-but there are steps parents and other caring adults can take to help keep kids safe online. The serious sentence imposed here demonstrates the commitment of our office and the FBI make our children safer from exploitation and abuse.” The FBI investigated this case. The sentence was imposed by U.S. District Court Judge Matthew P. Brookman. Judge Brookman also ordered that Terry be supervised for life following his release from federal prison and register as a sex offender wherever he lives, works, or goes to school. Terry was also ordered to pay $20,0000 in restitution to the victims. U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case. This case was brought as part of Project Safe Childhood , a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. ###


title: Maine Man Indicted for Lacing Ice Cream with THC at Newmarket Café

component: USAO - New Hampshire

body_text: CONCORD – A Maine man was indicted in connection with tampering with consumer products, First Assistant United States Attorney Jay McCormack announces. Marc Flore, 43, was indicted on one count of tampering with consumer products. Flore will appear in federal court in Concord at a later date. According to the charging documents, Flore laced a batch of coffee-Oreo flavored ice cream with tetrahydrocannabinol (THC), a schedule I controlled drug, and stored the THC-laced ice cream with other batches of ice cream in a freezer at the Roots Café in Newmarket, New Hampshire, where the ice cream was then sold to public consumers. The charge of tampering with consumer products provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Food and Drug Administration Office of Criminal Investigations (FDA-OCI) led the investigation. Valuable assistance was provided by the Newmarket Police Department. Assistant U.S. Attorney Geoffrey Ward 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. ###


title: Pennsylvania Man Pleads Guilty to Bribing a Federal Official and Defrauding the Federal Aviation Administration in Moses Lake, Washington

component: USAO - Washington, Eastern

body_text: Spokane, Washington – Yesterday, Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Christopher Hamilton Clemens, age 42, currently of Harrisburg, Pennsylvania, and formerly of Clarkston, Washington, pleaded guilty to Conspiracy to Defraud the United States in connection with bribing a federal contracting official with the Department of Interior’s Bureau of Indian Affairs (“BIA”) and fraudulently obtaining a contract with the Federal Aviation Administration (“FAA”) in Moses Lake, Washington. According to the plea agreement, Calandra Charging Eagle was a contracting official at the BIA, in its Albuquerque, New Mexico office. BIA is a federal agency that, among other things, provides funding and oversight for improvement projects on American Indian land and facilities. One of Defendant Clemens’ companies, Hamilton’s West, was a government contracting company owned and operated by Clemens, which competed and sought to compete for BIA and other federal government contracts. According to court documents, through her position as a contracting official at BIA, Charging Eagle had access to internal and confidential BIA estimates and other information regarding potential contracts, and had a role in approving contracts, modifications, and invoices. In 2018, between June and October, according to the plea agreement, Clemens and Charging Eagle engaged in a bribery scheme in which Clemens agreed to pay a $10,700 debt owed by Charging Eagle to the Sandia Resort and Casino, a resort, casino, and event center located in Albuquerque. In return, according to court documents, Charging Eagle agreed to use her position to steer BIA contracts, including an over half-million dollar contract to provide lightning protection improvements at the Navajo Nation’s Pine Hill School in New Mexico, to Clemens and his companies. According to court documents, Charging Eagle provided Clemens and his companies with inside confidential information regarding BIA’s procurement process, including, but not limited to, providing Clemens and his companies with confidential and internal BIA information in order to provide Clemens and his companies with an unfair competitive advantage in obtaining the Pine Hill School lightning protection contract and other BIA contracts. On October 21, 2020, a grand jury returned an indictment charging Clemens and Charging Eagle with Conspiracy to Defraud the United States and felony counts of paying and accepting a bribe, respectively. On December 9, 2021, Charging Eagle pleaded guilty to one count of violating 18 U.S.C. Sec. 201(b)(2), Public Official Accepting a Bribe, as a result of her role in the scheme and conspiracy with Clemens, and on March 17, 2022, Charging Eagle was sentenced to two-years of probation. United States v. Charging Eagle , Case No. 2:20-CR-00142-TOR. Prior to Charging Eagle pleading guilty to bribery, Clemens entered into a pre-trial diversion agreement with regard to the bribery scheme where he agreed to, and was ordered by the Court to, among other things, not commit any more crimes and to not engage in any federal contracting or subcontracting for a period of five years. According, to court documents, in January 2022, approximately two months after being ordered to not engage in federal contracting, Clemens falsely certified, through a new company, that he was not prohibited from engaging in federal contracting. Based on Clemens’ false and fraudulent certification, according to the plea agreement, in August of 2022 Clemens went on, through the new company, to fraudulently obtain a design-build contract in Moses Lake, Washington, with the Federal Aviation Administration (FAA). According to Clemens’ plea, between August of 2022 and October of 2023, while Clemens held himself out as the vice president of the new company, the FAA paid $479,818 to the new company under the design-build contract that it would not have paid had it known that Clemens had falsely and fraudulently represented that he was eligible to engage in federal contracting. Clemens admitted in his plea agreement that he conspired with others to perpetrate the fraud on the FAA as part of his overall conspiring to defraud the United States including his earlier bribe to Charging Eagle to get BIA contracts. “Bribing a federal official is a serious violation that undermines the basic fairness that we all expect and deserve from our government,” said United States Attorney Waldref. “Similarly, ignoring a court order and continuing to fraudulently engage in federal contracting cannot and will not be tolerated,” said U.S. Attorney Waldref. “I want to thank our law enforcement partners, especial the Department of Interior, Office of Inspector General, Western Region, for their tremendous and longstanding efforts in rooting out this conspiracy.” This case was investigated by the Department of Interior, Office of Inspector General Western Region. Assistant United States Attorneys Tyler Tornabene and Dan Fruchter are prosecuting the case on behalf of the United States. Sentencing in this matter is scheduled for May 29, 2024, at 11:00 am in the Thomas Foley Federal Building and U.S. Court House in Spokane, Washington. United States v. Christopher Hamilton Clemens, Case No: 2-24-CR-00030-TOR.


title: Nashua Man Indicted on Firearm Offenses

body_text: CONCORD – A Nashua man was indicted in connection with unlawful possession of firearms and ammunition, U.S Attorney Jane E. Young announces. Robert Reidy, age 32, was indicted on one count of possession of firearms and ammunition by a prohibited person and one count of possession of unregistered firearms. Reidy is in state custody on related charges. Reidy will appear in federal court on March 6 th , 2024 at 2:00p.m. According to the charging documents, on December 5, 2023, Reidy possessed three pistols, a short-barreled rifle, and a silencer, as well as 160 rounds of ammunition. As a previously convicted felon, Reidy is prohibited from possessing firearms and ammunition under federal law. The short-barreled rife and silencer were unregistered firearms. The charge of possession of firearms and ammunition by a prohibited person provides for a maximum sentence of up to 15 years in prison, up to a three-year term of supervised release and a fine of up to $250,000. The charge of possession of unregistered firearms provides for a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. The Nashua Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives led the investigation. Valuable assistance was provided by the Manchester Police Department. Assistant U.S. Attorney Tiffany Scanlon 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. ###


title: Inmate At The Federal Correctional Institution, Schuylkill, Pleads Guilty To Possession Of Contraband In Prison And Is Sentenced To Serve An Additional Six Months In Prison

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Charles Epps, age 27, an inmate at the Federal Correctional Institution, Schuylkill, in Minersville, Pennsylvania, pleaded guilty on February 28, 2024, before U.S. District Court Judge Robert D. Mariani, to the charge of possession of contraband in prison. Epps was then sentenced by Judge Mariani to serve an additional six months in prison. According to United States Attorney Gerard M. Karam, Epps, formerly of Washington D.C., admitted to possessing a dangerous prison-made weapon, commonly known as a “shank.” The charge stems from an incident in May 2023, in which staff at FCI Schuylkill found Epps in possession of the weapon. The investigation was conducted by the Federal Bureau of Investigation and the Bureau of Prisons Special Investigative Service. Assistant United States Attorney Robert J. O’Hara is prosecuting the case. At the time of the incident at FCI Schuylkill, Epps was serving a sentence from Washington D.C. for attempted assault with a dangerous weapon and unlawful possession of a firearm. That sentence does not expire until 2025. The sentence imposed by Judge Mariani for the charge of possession of contraband in prison will run consecutively to the Washington D.C. sentence. # # #


title: Port Charlotte Man Pleads Guilty To Wire Fraud Related To NASA’s Space Launch System

component: USAO - Florida, Middle

body_text: Orlando, FL – United States Attorney Roger B. Handberg announces that Steven Lukens (54, Port Charlotte) has pleaded guilty to wire fraud. Lukens faces a maximum penalty of 20 years in federal prison and has agreed to forfeit $271,024.35, which are traceable to proceeds of the offense. The sentencing hearing is scheduled for May 22, 2024. According to the plea agreement, Lukens was the Chief Executive Officer of Gulf Atlantic International Supply, LLC (Gulf Atlantic). Gulf Atlantic entered into a sub-contract with Company-1 to procure materials needed for NASA’s space launch system at the Kennedy Space Center. However, Lukens submitted products that did not meet the quality standards and specifications required under the contract. Lukens then fraudulently led Company-1 to believe that the products met the required standards by submitting forged quality control documentation. In total, Lukens submitted at least 191 fraudulent quality control documents to Company-1. These included fraudulent Certificates of Compliance, fraudulent Pressure Testing Certificates, and fraudulent test reports. Lukens’s materially false, fraudulent, and misleading representations caused Company-1 to pay Gulf Atlantic at least $271,024.35 for the parts it submitted. This case was investigated by the NASA Office of Inspector General. It is being prosecuted by Special Assistant United States Attorney Rachel Lyons, with assistance from Assistant United States Attorney Shannon Laurie.


title: Five Defendants Arrested for Engaging in Sophisticated ATM Skimming Schemes Involving Theft of Account Information and PIN Numbers from Unsuspecting Bank Customers

component: USAO - New York, Eastern

body_text: Earlier today, at the federal courthouse in Brooklyn, an indictment charging defendants with fraud and aggravated identity theft for various ATM skimming-related crimes perpetrated between May 2022 and February 2023, was partially unsealed. To execute the fraud, the defendants allegedly installed devices and cameras on ATMs, capturing victim account information and personal identification numbers (PINs). The defendants then transferred data obtained by those devices onto counterfeit debit cards, which the defendants used to make purchases and withdraw cash. As a result, the defendants compromised over 600 victim accounts and stole thousands of dollars. Five defendants were arrested earlier this morning in New York, and are scheduled to be arraigned this afternoon before United States Magistrate Judge Vera M. Scanlon at the federal courthouse in Brooklyn. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Patrick Freaney, Special Agent-in-Charge, United States Secret Service (USSS), New York Field Office and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the charges. “As alleged, the defendants engaged in a sophisticated scheme by installing cameras and devices in ATM card slots to surreptitiously steal victim bank account information and use that stolen information to cash out for their own personal gain,” stated United States Attorney Peace. “The arrests today demonstrate that this Office will continue to investigate and prosecute fraudulent activity compromising victims’ financial safety and security.” “The five defendants allegedly illegally obtained financial information using hidden devices implanted in ATMs to create counterfeit debit cards and steal thousands of dollars from over 600 unsuspecting victims. The defendants' concerted efforts to conceal this fraudulent activity allowed the scam to plague the community for almost a year, highlighting the pervasive nature of criminal financial schemes. The FBI will continue to aggressively investigate all methods of fraud to protect financial privacy,” stated FBI Assistant Director-in-Charge Smith. “The defendants allegedly targeted hundreds of victims, exploiting their trust in routine elements of our financial systems and stealing thousands from their hard-earned savings,” said Patrick J. Freaney, Special Agent in Charge of the U.S. Secret Service’s New York Field Office. “The success of this investigation is a testament to our strong partnerships with both federal and local law enforcement, and the U.S. Secret Service remains committed to pursuing justice for victims of financial crimes here in New York and across the country.” “Today’s indictment underscores the importance of investigators from multiple law enforcement agencies working together to protect the financial well-being of good, hardworking New Yorkers,” said NYPD Commissioner Edward A. Caban. “I commend our partners at the FBI, the Secret Service, and the office of the U.S. Attorney for the Eastern District of New York for their dedication to our shared public safety mission.” As set forth in the indictment and other filings, the defendants committed these crimes in two phases, installations and removals, and “cash-outs.” In the first phase, the defendants installed deep-insert skimming devices in the ATMs, which are thin devices the defendants implanted in ATM card slots. These sophisticated devices captured and stored data from debit cards used by unsuspecting victims who conducted transactions at the ATMs while the skimming device was implanted. The defendants simultaneously installed hidden cameras to record victims inputting their PINs. After recovering the cameras and skimming devices, the defendants used the data captured by the skimming devices to create counterfeit debit cards. In the second phase, the defendants then used the counterfeit debit cards and the corresponding PINs, which were captured by the hidden cameras, to “cash out,” or make purchases and withdraw cash. From these skimming and “cash out” crimes, the defendants appropriated account information from over 600 unsuspecting victims. Users of ATMs are cautioned that advanced skimming devices and pinhole cameras installed on ATMs, like those used by the defendants, may be well disguised and undetected by the ATM user. Law enforcement agents encourage ATM users to shield the ATM keypad when entering PINs and other user information to prevent their accounts from being compromised. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. Assistant United States Attorneys Irisa Chen and Raffaela Belizaire are in charge of the prosecution. The investigation is being conducted by the FBI, USSS and NYPD. The Defendants : IOAN-ANTON GHERASIM, also known as “Ryan Anthony” Age: 38 Queens, New York ELVIS DAN ATOMEI Age: 34 Queens, New York DAN ADRIAN AGAFITEI, also known as “Federico Cousa,” “Luciano Manzatti” and “Coval Tiago” Age: 25 Queens, New York BOBI BORCEA, also known as “Bobi Agafitei” Age: 49 Queens, New York RAZVAN VICOL, also known as “Razvan Neagu,” “Geoffrey Pasek” and “Ruben Robles de la Torre” Age: 36 Queens, New York E.D.N.Y. Docket No. 24-CR-78 (MKB)


title: Batesburg-Leesville Man Sentenced to Federal Prison for Drug Trafficking

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — Nicholas Barrios Rattray, 40, of Batesville-Leesville, was sentenced to 60 months in federal prison after pleading guilty to possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine. Evidence presented to the court showed that on Nov. 28, 2018, Lexington County Sheriff’s Department narcotics agents visited Rattray’s Leesville residence after receiving information that Rattray was possibly involved in the distribution of methamphetamine. While agents spoke briefly with Rattray at the residence, they could smell the odor of marijuana and determined that the smell was coming from Rattray’s residence. A search warrant was obtained for the property. During a subsequent search of the residence and a vehicle parked on the property, agents found over 500 grams of methamphetamine, two firearms, marijuana, and over $10,000 in cash among other items consistent with drug distribution. United States District Judge Mary Geiger Lewis sentenced Rattray to 60 months in prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case. ###


title: Medical Doctor To Pay $60,000.00 To Resolve Civil Liability For Alleged Violations Of The False Claims Act

body_text: HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Peter J. Baddick, III has agreed to pay the United States $60,000.00 to resolve civil liability for alleged violations of the False Claims Act. According to the United States Attorney, Gerard M. Karam, between April 2015 and December 2015, Dr. Baddick prescribed the opioid medication Subsys to patients who did not have a cancer diagnosis without a legitimate medical purpose outside the usual course of professional practice. Dr. Baddick then billed Medicaid and Tricare for the visits associated with the prescription of Subsys to these patients. A civil action was filed in April of 2022 and is docketed as United States v. Dr. Peter J. Baddick, III.; Civ. No. 3: 22-512 (M.D. Pa.) “This office is dedicated to combatting fraud and abuse impacting taxpayer-funded programs,” said United States Attorney Karam. “We use every tool at our disposal to do so, and this resolution reflects that commitment.” This Settlement Agreement is neither an admission of liability by Dr. Baddick nor a concession by the United States that its claims are not well founded. This matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Office of the Inspector General for the Defense Health Agency. The investigation was handled by Assistant United States Attorneys, B. Craig Black and Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office. ###