title: Ra Medical Systems, Inc. & Physicians Pay Over $8 Million to Resolve False Claims Act Allegations of Illegal Kickbacks

body_text: DETROIT – United States Attorney Dawn N. Ison announced today a series of three civil settlements, totaling over $8 million, related to, among other allegations, kickbacks that medical device company Ra Medical Systems, Inc. (Ra Medical), paid to various physicians across the country related to Ra Medical’s DABRA laser. Ison was joined in the announcement by Special Agent in Charge Mario M. Pinto of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG), Chicago Regional Office, Cheyvoryea Gibson, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Special Agent in Charge Patrick J. Hegarty, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Northeast Field Office. Ra Medical was a medical device company that was formerly headquartered in Carlsbad, California. From 2017-2019, Ra Medical manufactured and sold a device known as the DABRA Laser. The settlement with Ra Medical resolves the following alleged violations of the False Claims Act: Ra Medical marketed the DABRA Laser for use in atherectomies, a procedure whereby plaque is mechanically removed from occluded blood vessels in patients suffering from peripheral artery disease. The U.S. Food and Drug Administration, however, had not approved the DABRA Laser for use in atherectomy procedures. Additionally, Ra Medical knowingly marketed the DABRA Laser despite product performance issues causing frequent calibration and overheating problems, which posed a risk to physicians and patients, and prompted a recall in August 2019. Ra Medical also knowingly offered and paid illegal remuneration to certain physicians to induce them to use the DABRA Laser in violation of the Federal Anti-Kickback Statute. The United States contends that the illegal remuneration consisted of cash payments and fees paid in connection with purported training events and consulting services. The United States further contends that RMS tracked utilization of its high-volume physician customers using an internal document titled “Who Deserve[] Love,” which was used to identify physicians that RMS should target with offers of improper remuneration. Two of the recipients of the alleged kickback payments were Elias Kassab, M.D. (Kassab), of Dearborn, Michigan, and David Allie, M.D. (Allie), of Lafayette, Louisiana. The Federal Anti-Kickback Statute prohibits offering or paying anything of value to induce referrals of items or services covered by Medicare and other federally funded programs. The statute is intended to ensure that a medical provider’s judgment is not compromised by improper financial incentives. Under the terms of the agreement with Ra Medical, which was entered into pursuant to DOJ’s inability to pay settlement guidelines and was executed in December 2020, Ra Medical paid $2.5 million up front and would pay up to $28 million more if future financial contingencies were met. In January 2023, Ra Medical paid an additional $5 million, after its reverse merger with Catheter Precision, Inc., triggered one of the contingencies. The settlement with Ra Medical remained under seal while the United States continued its investigation into Kassab and Allie, among others, who were alleged to have received improper kickbacks. In a separate settlement, Kassab and two of his companies agreed to pay $450,000 to resolve the allegations against them. In the third settlement, Allie and his consulting company agreed to pay $250,000 to resolve the allegations against them. “The United States will not allow doctors to hold out their hands expecting to be paid to use and promote a device,” said U.S. Attorney Ison. “The millions of people who depend on our federal healthcare programs deserve and expect medical decisions untainted by kickbacks, and this settlement reflects our commitment to pursuing not just the companies that pay illegal kickbacks, but also the physicians who willingly extract and accept them.” “The payment of kickbacks to induce referrals can undermine the trust in our nation’s providers and result in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue to work diligently with our law enforcement partners to ensure the appropriate use of taxpayer dollars.” “Healthcare services are being unlawfully influenced by medical providers engaging in criminal kickback schemes, significantly impacting programs such as Medicare and Medicaid," said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "Our office is fully committed to investigating and holding accountable those individuals and organizations involved in illegal profit-driven practices that harm our medical system.” “Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General," stated Special Agent-in-Charge Patrick J. Hegarty, DCIS Northeast Field Office. "The settlement agreement announced today demonstrates our ongoing commitment to work with our law enforcement partners and the Department of Justice to investigate allegations of healthcare fraud.” The civil settlements resolve the claims brought by Robert Gruber, under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Gruber v. Ra Medical Systems, Inc., et al. , No. 19-12044 (E.D. Mich.). The whistleblower will receive a combined $1,722,000 from the three settlements. The claims resolved by the settlements are allegations only; there has been no determination or admission of liability. The matter was investigated by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG, the FBI, and the Defense Criminal Investigative Service.


title: Three New Jersey Attorneys and a New Jersey Realtor Indicted for Roles in Short Sale Fraud Scheme

component: USAO - New Jersey

body_text: NEWARK, N.J. – Three New Jersey licensed attorneys and a New Jersey licensed realtor were indicted for their roles in defrauding financial institutions in a short sale fraud scheme, U.S. Attorney Philip R. Sellinger announced. Lawyers Bruce Egert, 69, of Tenafly, New Jersey, Nelson Kong, 44, of Bethpage, New York, Seung Han Shin, aka Aaron Shin, 42, of Old Tappan, New Jersey, and realtor Francisco Sanchez, 48, of Ridgefield Park, New Jersey, were each indicted by a federal grand jury with one count of conspiracy to commit bank fraud and three counts of bank fraud. Egert and Kong were also charged with three counts of false statements to a financial institution. Shin and Kong were arraigned on Sept. 19, 2024, before U.S. Magistrate Judge Michael A. Hammer in Newark federal court. Egert and Sanchez were arraigned on Sept. 23, 2024, before U.S. Magistrate Judge Stacey D. Adams in Newark federal court. Each of the defendants was released on $100,000 unsecured bond. According to documents filed in this case: From June 2013 through December 2016, Egert, Kong, Shin, Sanchez, and others fraudulently induced mortgage lenders to participate in “short sale” transactions. In a typical short sale transaction, a financial institution agrees to allow a homeowner in financial distress to sell their home for less than they owe on their mortgage. Such transactions are called short sales because the market value of the house is less than the amount owed by the homeowner and the lender agrees to accept a payment “short” of the amount owed. Through fraudulent misrepresentations and false statements, Mehdi Kassai, with the help of his conspirators, purchased homes at significant discounts from the note-holding banks both in his name and using stolen identities. Kassai, Egert, Kong, Shin, and Sanchez failed to reveal to the banks that Kassai and Egert had already arranged to flip the homes to other buyers at much higher prices, and that the homes were flipped in violation of deed restrictions regarding the time before which a resale could occur and the maximum resale price. Some of the properties purchased were resold at a substantial profit, that is, “flipped,” the same day the short sale closed. Steve Kang and Joshua Son were realtors who represented short sale sellers whose homes were sold to Kassai. In return for their involvement in the scheme, Kassai shared with them portions of the profits of the resales. Egert was Kassai’s attorney who represented him in the short sales, and, among other things, conspired with Kassai to use stolen identities to purchase short sale properties and submitted or caused to be submitted fraudulent HUD-1 Settlement Statements to the victim banks. Kassai recruited Kong to represent certain sellers, and, among other things, Kong drafted agreements. Shin was a bankruptcy attorney Kassai paid to file bankruptcy petitions on behalf of short sale sellers to forestall imminent foreclosures on the properties. Shin failed to disclose that Kassai, the short sale buyer, was involved in these transactions. Sanchez was a realtor Kassai paid to assist in the management and control of the short sale process. If Kassai attempted to buy a short sale property in his own name and was rejected, Sanchez assisted Kassai with finding a straw buyer to acquire the short sale property. Kassai pleaded guilty On Dec. 18, 2018, to an information charging him with bank fraud (Counts One and Two), wire fraud affecting a financial institution (Count Three), and money laundering (Count Four). He was sentenced by U.S. District Judge William J. Martini to 16 months in prison, three years of supervised release, and ordered to pay $7.94 million in restitution for 32 illicit transactions. Kang pleaded guilty on May 30, 2019, to an information charging him with bank fraud (Count One) and wire fraud affecting a financial institution (Count Two). He was sentenced by U.S. District Judge Claire C. Cecchi to time served and ordered to pay $2.38 million in restitution. Son pleaded guilty on May 30, 2019, to an information charging him with bank fraud (Count One) and wire fraud affecting a financial institution (Count Two). He was sentenced by Judge Martini to time served, two years of supervised release, and ordered to pay $2.38 million in restitution. The conspiracy to commit bank fraud count, bank fraud counts, and false statements to a financial institution counts each carry a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross gain or loss from the offense, whichever is greatest. U.S. Attorney Sellinger credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak; special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Spiros Karabinas; and special against of the Social Security Administration, Office of the Inspector General, Boston / New York Field Division under the direction of Special Agent in Charge Amy Connelly, with the investigation. The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark, and Special Assistant U.S. Attorney Kevin DiGregory of the Federal Housing Finance Agency, Office of Inspector General. The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty. egertetal.indictment.pdf


title: Providence Man Sentenced to Federal Prison for Illegal Acquisition of SNAP Benefits, Unlawful Possession of a Firearm

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – A Dominican national unlawfully present in the United States and living in Providence was sentenced today to two years in federal prison for his role in a conspiracy that defrauded the United States Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP) of more than $213,000 in benefits, and for illegally possessing a firearm at the time of his arrest, announced United States Attorney Zachary Cunha. Giomar Lopez Meireles, 41, pleaded guilty on May 29, 2024, to conspiracy to commit wire fraud, illegal acquisition or use of Supplemental Nutrition Assistance Program benefits, and unlawful possession of a firearm. He was sentenced today by U.S. District Court Judge Mary S. McElroy to 24 months of incarceration to be followed by three years of federal supervised release. At the government’s request, the court also ordered the defendant to pay restitution in the amount of $213,397 to the Rhode Island Department of Human Services, which administers federal SNAP benefits in Rhode Island. Lopez Meireles previously admitted to a federal judge that he conspired with others to submit fraudulent online applications for SNAP benefits in the form of electronic benefit transfer (EBT) cards. As part of the scheme, the group used the real identities and social security numbers of third parties to submit fraudulent benefit applications . The ill-gotten, government funded, benefit cards were then either mailed to Lopez Meireles’s own residence or to a nearby addresses. The defendant sold some of these cards for cash while using some of the cards to make purchases for himself and others. He also sent some of the cash he received from selling the EBT cards to individuals in the Dominican Republic who were involved in the scheme. During a court-authorized search of Lopez Meireles’s residence in October 2023, law enforcement seized a collection of fraudulently obtained EBT cards, many of which were wrapped in a paper ledger listing dollar amounts and PINs. Also seized was a 9mm pistol located in Lopez Meireles’s bedroom closet, wrapped in clothing. The case was prosecuted by Assistant United States Attorney Julianne Klein. This matter was investigated the U.S. Department of Agriculture - Office of Inspector General and the Rhode Island Office of Internal Audit - Fraud Detection & Prevention Unit. Valuable assistance was provided by U.S. Secret Service, U.S. Marshals Service, U.S. Postal Inspection Service, Department of Homeland Security - Office of Inspector General, Social Security Administration - Office of Inspector General, Rhode Island State Police, Providence Police Department, and Woonsocket Police Department.


title: Mission Man Sentenced to Federal Prison for Possession of an  Unregistered Firearm, Larceny, and Failure to Appear

component: USAO - South Dakota

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced a Mission, South Dakota, man convicted of Possession of an Unregistered Firearm, Larceny, and Failure to Appear. The sentencing took place on September 16, 2024. Hunter Brave, 21, was sentenced to one year and ten months in federal prison, followed by three years of supervised release, $1,000 restitution, and ordered to pay a $300 special assessment to the Federal Crime Victims Fund. Brave was indicted for possession of an unregistered firearm in September of 2023. He was indicted for failure to appear, and robbery and assault with a dangerous weapon, by a federal grand jury in January of 2024. On May 14, 2024, a Superseding Information charging Larceny was filed. Brave pleaded guilty in all three cases on May 22, 2024. On August 6, 2023, Brave was in a vehicle parked outside the Sunrise Apartments in Mission, South Dakota, on the Rosebud Indian Reservation. Brave was in possession of a “short shotgun” also known as a sawed-off shotgun, and fired a round off prompting calls to 911 by community members. Law enforcement responded and found Brave with the shotgun that was not registered to him in the National Firearms and Transfer Record. Following his indictment, Brave was released on bond conditions. On November 28, 2023, Brave and a co-defendant stole a vehicle in Mission, driving in a reckless manner, causing damage to the vehicle. On November 30, 2023, Brave failed to appear for a bond revocation hearing in federal court in Pierre as required by his bond conditions. These cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Brave was immediately remanded to the custody of the U.S. Marshals Service.


title: Two Lead Men Indicted for Possessing a Machine Gun

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted two men from Lead, South Dakota, for illegal possession of machine guns. Ray Steele, age 62, was indicted in May of 2024 for Possession of a Firearm by a Prohibited Person and Unlawful Possession of a Machine Gun. He appeared before U.S. Magistrate Judge Daneta Wollmann on August 7, 2024, and pleaded not guilty to the Indictment. John Sitar, age 43, was indicted in September of 2024 for Unlawful Possession of a Machine Gun and Possession of Unregistered Firearm. He appeared before U.S. Magistrate Judge Daneta Wollmann on September 23, 2024, and pleaded not guilty to the Indictment. In May of 2024, search warrants were executed at the residences of Steele and Sitar. Law enforcement found seven firearms, thousands of ammunition rounds, hundreds of ammunition components, and six machine gun conversation devices in Steele’s residence. Steele is a previously convicted felon who is prohibited from possessing firearms. Sitar was found to possess a machine gun conversion device, as well as a short-barrel rifle which was not registered to him in the National Firearms Registration and Transfer Record, as required by law. “Machine gun conversion devices convert semi-automatic firearms into highly lethal and illegal machine guns,” said Alison J. Ramsdell, U.S. Attorney for the District of South Dakota. “The use of such devices presents a grave threat to both the public and law enforcement.” The maximum penalty for Steele upon conviction is up to 15 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The maximum penalty for Sitar upon conviction is up to 10 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. The charges are merely an accusation and Steele and Sitar are presumed innocent until and unless proven guilty. These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The investigations are being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Lead Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the cases. Steele was remanded to the custody of the U.S. Marshals Service pending his trial, which is scheduled for December 17, 2024. Sitar was released on bond pending his trial, which has not been scheduled yet.


title: Madison Man Sentenced for Receipt and Distribution of Child Pornography

body_text: SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Roberto A. Lange has sentenced a Madison, South Dakota, man convicted of Receipt and Distribution of Child Pornography. The sentencing took place on September 16, 2024. Christopher James Smith, age 32, was sentenced to six and a half years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Smith must register as a sex offender upon his release from federal prison. Smith was indicted by a federal grand jury in August of 2023. He pleaded guilty on June 26, 2024. The conviction stemmed from incidents between January 18, 2021, and August 19, 2022, when Smith knowingly received files containing child pornography, including victims as young as one and two-years old. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by Homeland Security Investigations, the South Dakota Internet Crimes Against Children Task Force, and the National Center for Missing and Exploited Children. Assistant U.S. Attorneys Jeffrey C. Clapper and Elizabeth A. Ebert-Webb prosecuted the case. Smith was immediately remanded to the custody of the U.S. Marshals Service.


title: California Woman Sentenced for Possession with Intent to  Distribute Methamphetamine

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Eric C. Schulte has sentenced an Antioch, California, woman convicted of Possession with Intent to Distribute a Controlled Substance. Jennifer Walsh, age 44, was sentenced on September 23, 2024, to eight years and one month in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Walsh was indicted by a federal grand jury in the March of 2023. She pleaded guilty on June 24, 2024. On November 24, 2022, Walsh and her co-defendant Andrea Pitts were pulled over due to speeding on I-90 in Chamberlain, South Dakota. During the course of the traffic stop, a K-9 drug detection dog was called and alerted to the presence of drugs. A search of the vehicle revealed five pounds of methamphetamine in a hidden compartment. Walsh and Pitts were transporting the drugs from California to South Dakota where the methamphetamine would be distributed. This case was investigated by the South Dakota Highway Patrol and the Northern Plains Safe Trails Drug Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. Walsh was immediately remanded to the custody of the U.S. Marshals Service following her sentencing. Pitts is scheduled to be sentenced on October 8, 2024.


title: U.S. Attorney’s Office Continues  Gun Safety Initiative with Oct. 3 Program in Lakewood

component: USAO - Ohio, Northern

body_text: CLEVELAND – To help keep children, teens, and communities safe, the U.S. Attorney’s Office (USAO) for the Northern District of Ohio has launched an awareness and education initiative to inform the public about the importance of securing firearms and storing them safely. As part of this initiative, the USAO is partnering with the City of Lakewood to present an information session, “Safe Gun Storage Saves Lives,” Thursday, Oct. 3, from 6:30 - 8 p.m., at the Cove Community Center, 12525 Lake Avenue, Lakewood, OH 44107. The City of Lakewood will host the program, but residents of all communities are invited to attend. Topics include data and trends regarding firearms-related accidents and self-imposed harm, focusing on children and teens in particular; the connection between these tragedies and unsafe firearms-storage practices; the effects that such tragedies have on both individual families and the broader public; a gun lock demonstration and distribution; and steps to help prevent firearms-related tragedies by following and encouraging safe firearms-storage practices. The program features several speakers: U.S. Attorney Rebecca Lutzko for the Northern District of Ohio; firearms safety advocate and YMCA of Greater Cleveland Behavioral Health Manager Marlon Johnson, LPCC; MetroHealth Injury Prevention and Outreach Coordinator Anthony Zalewski, RN; Lakewood Police Chief Kevin Fischer; and Lakewood Mayor Meghan George. As part of the program, local police officers will distribute free gun locks; attendees will not need to provide any personal information to receive one. Officers will also exhibit other types of safe storage devices, demonstrate how to use them, and individually discuss safe storage options with attendees. “When you make the choice to own a firearm, you owe it to your neighbors to do so responsibly. As a whole, our community must do a better job to ensure that we store firearms in a safe manner, where a curious child or a despondent adolescent cannot readily access them. In April, a three-year-old child in Brunswick died from a gunshot wound after he found a gun in his own home, and accidentally discharged it while playing with it. Just a month later, in May, a two-year-old toddler in Euclid similarly died when he accidentally shot himself after he found a firearm in his home. More recently, a five-year-old boy in Utah died after—once again—finding his parent’s gun and accidentally shooting himself. Every one of these tragedies could have been prevented,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Instead, these children—and the thousands of people of all ages who use firearms to take their own lives each year—are gone, and their families’ lives are irrevocably changed. In launching this initiative, our goal is to protect children, at-risk teens, and young adults from grave danger in homes where firearms are present. Our kids’ safety is everyone’s joint responsibility.” The USAO’s Safe Storage campaign’s message kicked off in September with a similar program held in Richmond Heights. September is National Suicide Prevention Month, recognized annually by the National Institute of Mental Health. The number of firearm-related suicides rose nationally by 20% across the population from 2012 to 2022. The highest increases were found among younger people, according to fatal injury data from the Centers for Disease Control (CDC). The risk of accidents also increases when firearms are easy to find and access. From 2003 to 2021, 85% of children fatally injured were located at a house or apartment, and 56% of incidents occurred in their own homes, according to the CDC report “Unintentional Firearm Injury Deaths Among Children and Adolescents Aged 0-17 Years.” More than 70% of firearms used were stored loaded, and nearly 80% of firearms were stored unlocked and easily found on a bed, under a pillow, under a mattress, or inside or on top of a nightstand, according to the report. “We’re calling on our community partners and the public to help us spread awareness of these largely preventable accidents and instances of self-harm,” said U.S. Attorney Lutzko. “Much like seatbelt education helps to save lives of those involved in car accidents, spreading the word about safe storage will save lives—many times, the lives of our children and teens who we have a special duty to protect. Our goal is to amplify the message of responsible firearm ownership through this community-centered, public-safety strategy.” The USAO has posted on its website a host of free community resources discussing safe storage practices and providing tools for community members to spread the word about safe storage practices and help encourage them. Among the items included are bulletin board flyers, adult and child’s safety pledge certificates, and owners’ firearms safety manuals. Visit justice.gov/usao-ndoh/safe-gun-storage to view them. The public is also encouraged to follow the USAO on Facebook (@usaondoh) and X (@NDOHnews) to reshare safe gun storage tips and information. Additional safe storage community programs are slated to be announced.


title: New Britain Resident Sentenced to Prison for Possessing Child Sex Abuse Videos

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LUIS A. ROSADO, 31, of New Britain, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 24 months of imprisonment, followed by five years of supervised release, for possessing videos depicting the sexual abuse of children. According to court documents and statements made in court, in May and June 2022, the National Center for Missing and Exploited Children (“NCMEC”) received two CyberTipline reports from Kik Messenger that two separate Kik Messenger accounts had been used to upload video files depicting the sexual abuse of children. The investigation connected both Kik Messenger usernames to Rosado and determined that, between April and June 2022, he used them to upload and distribute 104 video files depicting the sexual abuse of children, including prepubescent children. Rosado, who resided in Manchester at the time of the offense, was arrested on October 6, 2022. On February 5, 2024, he pleaded guilty to possession of child pornography. Rosado, who is released on a $100,000 bond, is required to report to prison on December 4. This matter was investigated by Homeland Security Investigations (HSI), the Connecticut State Police, the Manchester Police Department, and the Connecticut Center for Digital Investigations. The case was prosecuted by Assistant U.S. Attorney Daniel E. Cummings. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: U.S. Attorney and FBI Charge Man for Drive-by Shooting in Zuni

component: Federal Bureau of Investigation (FBI)

body_text: ALBUQUERQUE – A Zuni Pueblo man was charged by criminal complaint with federal firearms violations following a drive-by shooting that occurred on the Pueblo of Zuni Indian Reservation. Devin Wyaco , 33, an enrolled member of the Pueblo of Zuni, appeared before a federal judge today and will remain in custody pending trial, which has not been scheduled. According to the criminal complaint, on September 19, 2024, John Doe and his girlfriend were riding their bikes in Zuni, New Mexico when they noticed a white sedan with tinted windows drive past them, going in the same direction as them. The sedan then did a U-turn and stopped before driving back towards them. As the vehicle passed them, one shot was fired from the passenger side, striking John Doe in his abdomen. John Doe was transported via ambulance first to Zuni Hospital, then to University of New Mexico Hospital. When he was later interviewed by investigators, John Doe identified the vehicle as belonging to Wyaco ’s girlfriend. Investigators executed a federal search warrant on Wyaco ’s girlfriend’s residence. There, they spoke to Wyaco ’s girlfriend, who stated she had been in the vehicle with Wyaco at the time of the shooting. Wyaco ’s girlfriend told investigators that he had fled and was still in possession of the firearm. If convicted, Wyaco faces a minimum of 10 years in prison. U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today. The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant United States Attorney Zachary C. Jones is prosecuting the case. View the Criminal Complaint.pdf A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #


title: RGV tax preparers sent to prison for $3M tax fraud scheme

component: USAO - Texas, Southern

body_text: McALLEN, Texas – Three local sisters have been sentenced for their roles in a conspiracy to aid and assist in the preparation of filing fraudulent tax returns to the IRS, announced U.S. Attorney Alamdar S. Hamdani. Maria Lourdes Campos and her sisters Elizabeth Romo and Gloria Romo pleaded guilty May 2. U.S. District Judge Drew B. Tipton has now imposed a 42-month term of imprisonment for Campos, while Elizabeth Romo received 36 months and Gloria Romo received a one-year term of supervised release. Campos, Elizabeth Romo and Gloria Romo were ordered to pay $151,741, $119,793 and $9,528 in restitution, respectively. Campos and Elizabeth Romo were also ordered to serve three years of supervised release following their sentences. At the hearing, the court heard additional testimony that included details about the systemic nature of the tax fraud at Campos Tax Service where employees, without explicit instruction, perpetuated inflated and fraudulent tax returns as part of the business model. Throughout the years that Maria Campos orchestrated this scheme, she enjoyed the financial spoils, including purchasing luxury vehicles and expanding her business to three locations. “These sentencings stand as a resolute warning – the Southern District of Texas is unwavering in its commitment to eradicating financial crimes that plague the South Texas border,” said Hamdani. “To those who think they can exploit or perpetuate financial crimes in the Rio Grande Valley, it’s not a matter of if, but when you will face the full force of the Department of Justice. It is our duty and profound obligation to ensure that justice is not just an ideal, but a reality that resonates through every corner of our community.” “The Campos and Romo sisters turned their family business into a large-scale tax fraud operation, expanding their scheme across multiple locations to drastically increase the number of fraudulent tax returns submitted to the IRS. Through their actions, they amassed millions of dollars in illegal tax refunds. This is a clear demonstration of criminal intent, driven by greed,” said acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation’s Houston Field Office. “Their business model was not just about financial gains, but also undermined the public’s trust in the integrity of tax preparers, who are relied upon to submit honest and accurate tax returns.” Campos was the owner and operator of Campos Tax Service (CTS) located in the Rio Grande Valley for over 10 years. Employed at Campos Tax Service were Campos’s two sisters, Elizabeth Romo and Gloria Romo. With the sisters’ assistance, most CTS clients fraudulently applied for and claimed either residential energy credits, business expenses or childcare credits. CTS employees did this to earn larger tax refunds for its clients. Once CTS employees completed the tax returns, they did not review the completed documents with their clients and only provided them with refund amounts or incomplete documents. From 2018 to 2020, Campos Tax Service filed approximately 6,501 federal income tax returns which included over $5 million of residential energy credits. The false and fraudulent filings between Campos, Elizabeth Romo and Gloria Romo resulted in a total sustained tax harm of $3,672,472. All were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility. IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Eric D. Flores and Cahal P. McColgan prosecuted the case.


title: Macon Mother and Son Sentenced for Roles in Decade-Long Business Theft

body_text: MACON, Ga . – Two members of the same family who illegally wrote millions in checks to themselves from their employer’s operating account were sentenced to prison and ordered to pay restitution for their crimes. Billy Lee Wells, Jr., 47, of Macon, was sentenced to serve 57 months in prison to be followed by five years of supervised release. He was ordered to pay the following jointly and severally with co-defendant Eva Wells: $2,583,003.80 restitution to Phil J. Sheridan Company d/b/a Mid-Georgia Sales and $150,000 restitution due to Donegal Mutual Insurance Company. In addition, he was ordered individually to pay $586,112 to the IRS in restitution and $3,404,772.22 in forfeiture. Eva Rebecca Wells, 75, was sentenced to serve 46 months in prison to be followed by five years of supervised release. She was ordered to pay the above-mentioned restitution amounts with co-defendant Billy Wells and was also ordered individually to pay $586,112 to the IRS and a total of $3,990,884.22 in forfeiture. Both defendants previously pleaded guilty to conspiracy to defraud a financial institution before U.S. District Judge C. Ashley Royal on Jan. 23. Billy Lee Wells also pleaded guilty to making and subscribing a false return. There is no parole in the federal system. "The defendants used their position as trusted employees to steal from a small business for more than a decade, a crime that can carry long-term repercussions for all those affected," said U.S. Attorney Peter D. Leary. "Working with our law enforcement partners, our office will continue to do all we can to both hold fraudsters accountable and protect hard-working and honest citizens." “This case serves as a warning to individuals who commit fraud upon others and the U.S. government that their criminal acts will come with consequences,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents and our law enforcement partners will continue investigating and bringing to justice those who participate in illicit schemes to enrich themselves.” “These fraud scams, although not violent, are not victimless and can be devastating to local business and ruin livelihoods,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta’s Macon office. “The FBI is dedicated to working with our partners to hold anyone accountable who would steal from hard working and honest individuals, rather than put in the work themselves.” According to court documents in the Wells case, Eva Wells was the Office Manager for Mid-Georgia Sales and was responsible for its finances, including issuing weekly payroll and making other payments on behalf of the business. Her son, Billy Lee Wells, Jr., was also employed at Mid-Georgia Sales, working in IT and sales. In Dec. 2008, Eva Wells began writing unauthorized checks to herself and her son from the company’s general operating fund, as opposed to the account used for payroll. When the theft was discovered, a full accounting was conducted. Between Dec. 31, 2008, and May 10, 2019, Eva Wells wrote a total of $3,404,772.22 in unauthorized checks to Billy Lee Wells, Jr. which were either cashed or deposited in his bank account. In addition to the checks made to Billy Lee Wells, Jr., Eva Wells also wrote unauthorized checks to herself which she cashed or deposited into her bank account. The Wells case was investigated by the FBI, the IRS and the Bibb County Sheriff’s Office. Assistant U.S. Attorney Elizabeth Howard prosecuted both cases for the Government.


title: Inmate Pleads Guilty to Possessing Weapon at FCI McDowell

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Savion Garcia, 24, an inmate at the Federal Correctional Institution (FCI) McDowell, pleaded guilty today to possession of a weapon by an inmate at a federal prison. According to court documents and statements made in court, on October 19, 2023, an FCI McDowell staff member conducted a random search of Garcia’s prison cell. During the search, the staff member found two handcrafted weapons commonly known as “shanks” on Garcia’s person. One was a six-inch-long flat metal bar with a cloth wrapped around one end as a handle. The other shank was a piece of metal approximately six and three-fourth inches long, with one end sharpened to a point and a cloth wrapped around the other end as a handle. Garcia admitted to possessing the shanks, and further admitted that they were designed and intended to be used as weapons. Garcia is scheduled to be sentenced on January 13, 2025, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-91. ###


title: KC Man Sentenced for Illegal Firearm

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm after he pointed his pistol at an ex-girlfriend’s head and threatened to kill her, then crashed into several vehicles while attempting to flee from law enforcement officers. Jonathan Good, 33, was sentenced by U.S. Chief District Judge Beth Phillips to 10 years in federal prison without parole, the statutory maximum penalty for this offense. On March 21, 2023, Good was found guilty at trial of being a felon in possession of a firearm. Evidence introduced during the trial indicated that Good was in possession of a Taurus 9mm handgun on July 29, 2020. Kansas City police officers were called to a residence on July 29, 2020. A woman at the residence reported that Good had arrived on her front porch, drunk and belligerent, at about 11:24 p.m., waving a gun around and yelling. She told him to leave, after which she heard a single gunshot from the front porch. She followed Good to his car, where he pointed his pistol at her head and threatened to kill her. Good got into his silver Ford Mustang and left as officers were arriving. A Kansas City police officer was parked in front of the victim’s residence at approximately 11:47 p.m. Good returned to the scene in his Ford Mustang, then shifted into reverse and began driving away. When Good reached the intersection of 72nd Steet and Walrond, he shifted his car into drive and drove south on Walrond. Officers pursued Good, who was driving 60 miles per hour through a residential neighborhood. Good failed to stop at one stop sign before losing control of his vehicle. Good’s vehicle hit the sidewalk then spun and collided with one vehicle parked on Walrond before slamming into another two vehicles parked in a residential driveway, where it was disabled. Good was arrested and transported to a local hospital to check for injuries. While at the hospital, when staff lifted him off the gurney onto the hospital bed, they found three live rounds of 9mm ammunition. At approximately 1 a.m. on July 30, 2020, officers searched Good’s residence and found the loaded Taurus 9mm pistol hidden inside an old charcoal grill with the legs missing, which was sitting on the grass in the front yard. Forensic investigators indicated a DNA sample recovered from the trigger guard of the pistol implicated Good as a major contributor. The KCPD expert testified the genetic information from the trigger was 7 octillion times more likely to be observed if Jonathan Good and four unknown individuals are the contributors than if five individuals are the contributors. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of a firearm or ammunition. Good has four prior felony convictions for domestic assault, two prior felony convictions for unlawful use of a weapon, and prior felony convictions for armed criminal action, violating an order of protection, and stealing/theft of livestock. This case was prosecuted by Assistant U.S. Attorneys Stefan C. Hughes and Brandon E. Gibson. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Operation LeGend Operation LeGend was a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honored the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.


title: Montgomery County Man Pleads Guilty to Election Fraud Offenses

component: Criminal - Public Integrity Section

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Philip C. Pulley, 62, of Huntington Valley, Pennsylvania, entered a plea of guilty today before Chief United States District Court Judge Mitchell S. Goldberg on charges of falsely registering to vote, double voting, and election fraud. Pulley was charged with those violations by information last month. In 2018, while registered to vote in Montgomery County, Pennsylvania, the defendant also registered to vote in Broward County, Florida. In 2020, while already registered to vote in Montgomery County and Broward County, he registered to vote in Philadelphia County, Pennsylvania, using a false home address in Philadelphia and social security number. In the 2022 general election, which included the election for United States Senator, Pulley voted in both Montgomery and Philadelphia counties. “Ensuring that our elections are free and fair is critical to maintaining the public’s trust in the results,” said U.S. Attorney Romero. “My office and the FBI will continue to enforce the federal laws prohibiting election crimes like Mr. Pulley’s. We will investigate, prosecute, and hold these violators accountable.” “Free and fair elections are the foundation of American democracy, and voter fraud undermines our democratic system,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “Protecting the right to participate in this process remains a top priority for the FBI and our partners.” Pulley is scheduled to be sentenced on January 9, 2025. On each count, he faces a maximum possible sentence of five years in prison, three years of supervised release, a $10,000 to $250,000 fine, and a $100 special assessment. The case was investigated by the FBI and the Pennsylvania Attorney General’s Office and is being prosecuted by Assistant United States Attorneys Nancy E. Potts and Mark B. Dubnoff, with support from James Price, Senior Deputy Attorney General and Special Assistant United States Attorney.


title: 27 Individuals Indicted for Buying and Selling Wholesale Quantities of Misbranded and Diverted Prescription Drugs Resold to the Public Through Retail Pharmacies in Puerto Rico

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico – On September 19, 2024, a federal grand jury in the District of Puerto Rico returned an indictment charging 25 individuals with conspiracy to introduce misbranded drugs and to defraud the United States. In separate indictment, another individual was charged with unlicensed wholesale distribution of prescription drugs. In a separate charging instrument, another individual was charged with and pleaded guilty to unlicensed wholesale distribution of prescription drugs. According to court documents, from 2018 to the present, the defendants engaged in the unlicensed wholesale distribution of misbranded and diverted prescription drugs for financial gain. This unlicensed wholesale distribution included the sale of misbranded and diverted prescription drugs to local pharmacy employees and owners for subsequent sale to pharmacy customers, without the customers’ knowledge that the products were misbranded and diverted. Diversion refers to processes by which prescription drugs are removed from, and then reintroduced into, the legitimate chain of distribution. Once a prescription drug is diverted outside of the regulated distribution channels, it becomes difficult, if not impossible, for regulators such as the U.S. Food and Drug Administration (FDA), law enforcement, or end-users to know whether the prescription drug package actually contains the correct drug or the correct dose. A drug is misbranded under the Federal Food, Drug, and Cosmetic Act (FDCA) if its labeling: (1) lacked “adequate directions for use;” or (2) failed to bear “adequate warnings against use in those pathological conditions or by children where its use may be dangerous to health, or against unsafe dosage or methods or duration of administration or application, in such manner or form as are necessary for the protection of users.” 21 U.S.C. § 352(f). Additionally, a drug is misbranded if it was a prescription drug and was dispensed without a lawful written or oral order of a licensed practitioner. 21 U.S.C. § 353(b). The defendants purchased and sold prescription drugs in resealable plastic bags without any labels, markings, lot numbers, expiration dates or adequate directions as required by law, creating a significant risk of harm. These prescription drugs were often stored in personal residences and/or transported via United States mail. The co-conspirators and others engaged in this scheme unlawfully generated revenue in an amount exceeding $13,000,000 by selling and distributing misbranded and diverted prescription drugs. In addition to the unlicensed wholesale distribution of prescription drugs, eleven pharmacy owners and employees from five separate pharmacies were also charged with a health care fraud conspiracy. These defendants caused materially false and fraudulent claims to be submitted to healthcare benefit plans representing that the products sold to customers were authentic and obtained through licensed pharmaceutical distribution channels. By selling diverted prescription drugs and billing healthcare benefit plans for authentic drugs, these defendants financially enriched the pharmacy owners and defrauded both the healthcare benefit plans and the pharmacies’ unsuspecting retail customers. The defendants and their roles in the conspiracy were: A. Pharmacy Owners and Employees- Pharmacy owners or employees who purchased drugs from unlicensed wholesale distributors and were involved in the buying and selling of misbranded and diverted prescription drugs: [1] Valerie M. Cintrón-Rivera: co-owner of Farmacia Monte Verde in Bayamón, PR [2] María T. Rivera-Fuentes: co-owner of Farmacia Monte Verde in Bayamón, PR [3] Jaime Figueroa-Ramos: owner of Farmacia Santa Olaya in Bayamón, PR [4] Elisa Cruzado-Ramos: pharmacist of Farmacia Santa Olaya in Bayamón, PR [5] Nivia Ríos-Matos: pharmacy technician of Farmacia Santa Olaya in Bayamón, PR [6] Raul Morera-Llera: co-owner of Farmacia Unity in Aibonito, PR [7] Enid M. Rivera-Rosario: co-owner of Farmacia Unity in Aibonito, PR [8] Gerardo A. Romero-Marcano: co-owner of Farmacia San Antonio in Canóvanas, PR [9] Sheila Rodríguez-Agosto: co-owner of Farmacia San Antonio in Canóvanas, PR [10] Gabriel A. Rodríguez-Malavé: co-owner of Farmacia Brisas del Mar in Luquillo, PR [11] Rosaida Torres: co-owner of Farmacia Brisas del Mar in Luquillo, PR B. Unlicensed Wholesale Distributors- Individuals involved in the unlicensed wholesale distribution and selling of misbranded and diverted prescription drugs: [12] Alberto Meléndez-Nieves, a.k.a. “Bertin” [13] Ángel L. Santiago-Cruz, a.k.a. “Aguacate” [14] Eddin Orlando Santiago-Cordero, a.k.a. “Guayacán” [15] Eric J. Collazo-Rivera, a.k.a. “Eric Manía” [16] Javier E. Ortiz-Rivera, a.k.a. “Tato” [17] Holvin E. Avilés-Carmona, a.k.a. “Holvin” [18] Marlon E. Marino-Leal, a.k.a. “Chamo” [19] José M. Amalbert-Rohena, a.k.a. “Chema” [20] Miguel A. Rojas-Reyes, a.k.a. “Dr. Hacienda” [21] Rosa M. Méndez-González, a.k.a. “Puruca” [22] Antonio F. Portilla-Arzola, a.k.a. “Portilla” [23] Reynaldo Guzmán-Martínez, a.k.a. “Bebo Canales” [24] Moisés O. Heredia-Tineo, a.k.a. “Billy” [25] José A. González-Maldonado, a.k.a. “Potala” According to the investigation, the FDA approved prescription drugs that the defendants illegally distributed were: Advair, Albuterol, Alphagan, Anoro Ellipta, Arnuity Ellipta, Aspen Dexamfetamine, Atripla, Atrovent, Azopt, Bepreve, Biktarvy, Breo Ellipta, Brilinta, Budesonide, Bumetanide, Byrdureon Pen, Cialis, Chloramphenicol, Collagenase Santyl, Combigan, Combivent Respimat, Daliresp, Delstrigo, Descovy, Dovato, Edurant, Eliquis, Enbrel, Entresto, Famotidine, Farxiga, Flavfour HFA, Flovent, Fluticasone, Fluticatone, Genvoya, Glyxambi, Humalog, Humira, Humulin, Hydroxyzine Hydrochloride, Incruse Ellipta, Invokamet, Invokana, Isentress, Janumet, Januvia, Jardiance, Jentadueto, Juluca, Ketorolac, Kombliglyze, Lantus, Latuda, Levalbuterol, Linzess, Lumigan, Malarone, Methimazole, Modafinil, Mounjaro, Naltrexone, Nebivolol, Neurin, Novolog, Odefsey, Onglyza, Ozempic, Pifeltro, Premarin, Prezista, Pro Air, Qvar, Restasis, Rinvoq, Rocklatan, Rosuvastatine, Rukobia, Rybelsus, Segluromet, Selegline, Silver, Soliqua, Spiriva, Steglatro, Stiolto Respimat, Stribild, Symbicort, Symtuza, Synjardy, Synthroid, Tivicay, Toujeo Pen, Tradjenta, Trelegy Ellipta, Tresiba, Trijardy, Triumeq, Trulicity, Ventolin, Victoza, Wixela, Xarelto, Xigduo, Zeal, among others. In a separate indictment, Jorge Rivera-Pérez, a.k.a. “Jorge Pastilla”, was charged in a six-count indictment with unlicensed wholesale distribution of prescription drugs, misbranding of prescription drugs with intent to mislead and defraud, and theft, trafficking, and sale of pre-retail medical products. Defendant Jorge Rivera-Pérez was a purchasing and procurement department employee for Company A, a medical facility located in Manatí, Puerto Rico, and an entity that purchased prescription drugs from legitimate licensed wholesale distributors of prescription drugs kept as a pre-retail medical product to be used in the operations of the medical facility. Rivera-Pérez was not a licensed wholesale distributor for prescription drugs. The defendant used his position to obtain pre-retail medical products unlawfully and intentionally, to wit, prescribed medications, from the Company A storage warehouse access-controlled area located at the basement of the building and to subsequently sell them to individual pharmacy owners at a steep price discount when compared to legitimate wholesalers. On September 23, 2024, Eric Aquino-García was charged via information and pleaded guilty before United States District Judge Gina M. Méndez to misbranding prescription drugs and unlicensed wholesale distribution of prescription drug. Aquino-García admitted that from 2018 through 2024, he was a member of this network of individuals and pharmacy owners who knowingly conspired to buy and sell wholesale quantities of misbranded and diverted prescription drugs for financial gain. On November 14, 2023, a federal search warrant was executed at Aquino-García’s residence where misbranded and diverted prescription drugs were seized having a value in excess of $3.4 million. These drugs were destined to be purchased and resold via retail pharmacies in Puerto Rico. “The defendants enriched themselves through a fraudulent scheme that cost Medicare and Medicaid over $7.6 million,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “Moreover, the defendants, in clear disregard of the patients’ needs and medical conditions, distributed medications without the proper procedure and instructions on how to administer such medications. The U.S. Attorney’s Office is committed to protecting the community from people who abuse their positions to enrich themselves illegally through health care fraud.” “Individuals who exploit federal health care programs to seek personal financial gain put the health and safety of communities at risk. Prescription drugs are intended to be distributed from the manufacturer to licensed wholesale distributors, to pharmacies, and then to patients,” stated Special Agent in Charge Naomi Gruchacz with U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Today’s indictment illustrates HHS-OIG’s staunch commitment to combating health care fraud with our law enforcement partners.” “The FDA oversees the prescription drug supply chain so that patients and consumers can expect their prescribed medications to be safe and effective. The defendants in this case undermined the FDA safeguards designed to protect the public, introduced diverted prescription drugs into the supply chain, and compromised patient safety for personal gain,” said Special Agent in Charge Justin Fielder of the Food and Drug Administration (FDA)’s Office of Criminal Investigations Miami Field Office. “Thanks to the efforts of our FDA-OCI agents, and our HHS OIG and USAO partners, this scheme was identified, investigated and dismantled. These indictments are a clear demonstration that FDA will not stop pursuing and bringing to justice those who would put the public health at risk through their criminal actions.” The defendants are scheduled for their initial court appearances today before U.S. Magistrate Judge Marcos E. López of the U.S. District Court for the District of Puerto Rico. If convicted, the defendants face the following sentences: up to five years in prison for the conspiracy to introduce misbranded drugs and to defraud the United States; up to 10 years in prison for the conspiracy to commit healthcare fraud and unlicensed wholesale distribution of prescription drugs; up to three years in prison for unauthorized trading partner and misbranding of prescription drugs with intent to mislead and defraud; and up to 20 in prison for theft, trafficking, and sale of pre-retail medical products. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The U.S. Department of Health and Human Services, Office of Inspector General (HHS OIG) and the U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) are investigating the case. The collaboration and assistance of the U.S. Marshal Service and the Puerto Rico Police Bureau in executing the corresponding arrests is appreciated. U.S. Department of Health and Human Services, Office of Inspector General Special Assistant U.S. Attorney Wallace A. Bustelo is prosecuting these cases. Patients are encouraged to speak to their health care provider or report an adverse event to the FDA. Health care providers can report adverse events to the FDA through FDA’s online reporting portal on the FDA website. If someone is having a medical emergency, please call 911. To report adverse events and quality control issues, please contact: FDA’s Adverse Event Reporting Line:1-888-INFO-FDA (1-888-463-6332) and Press 2 to report to MedWatch or for instructions. FDA MedWatch Online: https://www.accessdata.fda.gov/scripts/medwatch To report illegal conduct, please contact: HHS-OIG Hotline: 1-800-HHS-TIPS (1-800-447-8477) or https://tips.oig.hhs.gov To file a voluntary self-disclosure, please access the link below: https://oig.hhs.gov/compliance/self-disclosure-info/self-disclosure-protocol/ An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Kanawha County Man Pleads Guilty to Federal Drug Crime

body_text: CHARLESTON, W.Va. – Jonathan Fitzpatrick, 33, of Pratt, pleaded guilty today to distribution of 500 grams or more of a mixture and substance containing methamphetamine. According to court documents and statements made in court, on June 3, 2024, Fitzpatrick sold approximately 10 pounds of methamphetamine to a confidential informant in the Kanawha City area of Charleston. Fitzpatrick admitted to the transaction and further admitted to distributing a total of approximately 90 pounds of a substance that contained methamphetamine to the confidential informant from approximately December 2022 to in or about April 2024. Fitzpatrick is scheduled to be sentenced on January 14, 2025, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the U.S. Route 119 Drug Task Force, which consists of members of the Mingo County Sheriff's Office, the Logan County Sheriff's Office, the Boone County Sheriff's Office, and the West Virginia State Police. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Samuel D. Marsh is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-112. ###


title: $2,125,640 Recouped in Civil Settlements for Violations of the False Claims Act from Local Pharmacies in Cidra and Florida, Puerto Rico

body_text: SAN JUAN, Puerto Rico – The United States Attorney’s Office reached two settlement agreements with local pharmacies and their respective owners to resolve allegations that they violated the False Claims Act by submitting or causing to be submitted fraudulent claims for payment to the Medicare and Medicaid Programs from October 1, 2021, through September 30, 2023. Farmacia Beatriz, LLC, from Cidra, PR, and Edwin Valentin-Rosario paid $725,640 while CDT Policlínica Familiar Florida and Jesús Vázquez agreed to pay $1.4 million, of which $1.3 million has already been collected. The allegations involve the pharmacies’ submission for payment of prescription drugs dispensed to patients, under their owner’s direction, in excess of the inventory of prescription drugs purchased by the pharmacies from legitimate wholesalers. As a result, a substantial number of unique claims were submitted for pharmacy services to the Medicare and Medicaid Programs as false representations in violation of the False Claims Act. These transactions could not be tracked to purchases of prescription medications from legitimate wholesalers. This practice of diverting medications from legitimate channels affects the pedigree of the medications that are ultimately dispensed to patients. It creates uncertainty as to their proper handling, including storage in compliance with regulations and sanitary conditions, thereby potentially affecting the potency and efficacy of the medications. Additionally, federal health care programs were induced to pay for medications that may have been compromised and do not comply with Federal Drug Administration inventory and handling regulations. The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the District of Puerto Rico, U.S. Department of Health and Human Services, Office of the Inspector General, and U.S. Food and Drug Administration, Office of Criminal Investigations. Other federal and local agencies have also provided support to the investigation. U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico made the announcement. Assistant U.S. Attorney Rafael López Rivera investigated and prosecuted the matter. The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


body_text: CHARLESTON, W.Va. – Demoreal Killebrew, 26, an inmate at the Federal Correctional Institution (FCI) McDowell, pleaded guilty today to possession of a weapon by an inmate at a federal prison. According to court documents and statements made in court, on January 29, 2023, an FCI McDowell staff member conducted a search of Killebrew and found a handcrafted weapon commonly known as a “shank” in his left shoe. The shank was a metal rod approximately five and one-half inches long, with a sharpened point on one end and a plastic cap on the other end as a handle. Killebrew admitted to possessing the shank, and further admitted that it was designed and intended to be used as a weapon. Killebrew is scheduled to be sentenced on January 13, 2025, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Brian D. Parsons is prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:24-cr-108. ###


title: Department of Justice and Mason County Jail reach settlement over ADA compliance in treatment of Opioid use Disorder

component: USAO - Washington, Western

body_text: Seattle – The U.S. Department of Justice and the Mason County Jail reached a settlement this month of allegations the jail violated the Americans with Disability Act (ADA) by refusing to provide inmates with medications for the treatment of opioid use disorder (OUD), announced U.S. Attorney Tessa M. Gorman. Under the terms of the settlement, medical providers at the jail will prescribe and provide all three medications approved by the Food and Drug Administration (FDA) to treat OUD, including methadone, naltrexone, and buprenorphine. “Substance use disorder is a disabling condition under the Americans with Disabilities Act, and public service providers such as jails and prisons must treat it as such – providing the medical care and prescriptions needed to treat the disorder,” said U.S. Attorney Gorman. “We hope this change in practice at the Mason County Jail means those serving time will emerge from incarceration in a better state to continue a path to recovery.” According to the settlement agreement, the practices at the Mason County Jail first came to the attention of the Civil Rights Unit at the U.S. Attorney’s Office when an inmate complained that they were unable to continue the OUD medication that had been prescribed at a different correctional facility. An investigation by the U.S. Attorney’s Office revealed the jail violated the ADA by discontinuing the use of OUD medications for non-medical reasons. The jail also had no way to prescribe methadone to inmates who medically qualified for it. The jail required inmates currently receiving methadone treatment to go through withdrawal and transition to an alternative medication. The Mason County Jail entered into this settlement, while not admitting it violated the ADA. Under the terms of the settlement, the jail will provide a draft healthcare policy to the U.S. Attorney’s office that ensures all inmates are evaluated for OUD at intake. The jail agrees not to change or discontinue an inmate’s treatment without the determination by a qualified medical professional that the treatment is no longer medically appropriate. The jail agrees not to withhold health services or use rewards or punishments to encourage or discourage a particular treatment for OUD. Additionally, the jail will train staff on the ADA and will keep a log of all medication discontinuations and denials. The jail will provide the U.S. Attorney’s Office with any complaints it receives regarding compliance with the ADA. The jail will have 14 days to respond to any complaints or the U.S. Attorney’s Office can go to court to enforce the agreement. The agreement and monitoring will last for one year. The settlement was negotiated by Susan Kas, Civil Rights Coordinator in the Civil Division of the U.S. Attorney’s Office.


title: Spokane Man Caught with Methamphetamine Sent Through the U.S. Mail  Sentenced to Federal Prison

component: USAO - Washington, Eastern

body_text: Spokane, Washington - Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced that Ramon Alonso Delgado, age 24, of Spokane, Washington, was sentenced on one count of Attempted Possession with Intent to Distribute 50 Grams or more of Actual Methamphetamine. United States District Judge Thomas O. Rice imposed a sentence of 51 months in federal prison to be followed by 5 years of supervised release. According to court documents and information presented at the sentencing hearing, on August 30, 2022, a postal inspector in Spokane was contacted by another postal inspector in Arizona about a suspicious parcel, addressed to Delgado’s Spokane address. The parcel was subsequently sent directly to the U.S. Postal Inspector’s Office in Spokane. On September 2, 2022, the postal inspector executed a search warrant on the parcel and seized a pound of methamphetamine and 2,000 fentanyl-laced pills. “My office will continue to battle the drug epidemic on all fronts, including attempts to use the U.S. Postal Service as a way to traffic illegal substances,” stated U.S. Attorney Waldref. “Thanks to the stellar investigative work by our law enforcement partners and dedicated prosecutors in my office, drugs that are responsible for so much death and destruction in our communities were removed from the street, and the distributors were held accountable.” “Today’s sentencing should send a clear message that using the U.S. Mail to facilitate drug trafficking activities will not be tolerated,” stated Anthony Galetti, Inspector in Charge of the U.S. Postal Inspection Service, Seattle Division. “This successful investigation is a result of strong partnerships both within the U.S. Postal Inspection Service and with our local and federal law enforcement partners. Together we will continue to be vigilant in the pursuit of justice against those who illegally utilize the U.S. Postal Service to traffic dangerous narcotics.” This case was investigated by the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorneys Patrick J. Cashman and Timothy J. Ohms. 2:22-cr-00126-TOR


title: Nashville Man Sentenced to 16 Years in Federal Prison for Multiple Armed Robbery and Firearms Convictions

body_text: NASHVILLE - Terrell Stevenson, 35, of Nashville was sentenced to 16 years in federal prison today, announced United States Attorney for the Middle District of Tennessee Henry C. Leventis. Within 40 minutes on Halloween night 2018, Stevenson robbed a Dollar General Store and a Mapco gas station in Nashville, brandishing a semi-automatic pistol and pointing it at the head of the clerk working at the Dollar General Store. Stevenson and his accomplice were arrested by police officers after fleeing from a traffic stop. Stevenson was charged by a federal grand jury in January of 2020 with two counts of Hobbs Act Robbery, two counts of brandishing a firearm during and in relation to a crime of violence, and one count of possession of a firearm by a convicted felon. He was convicted on all charges following a jury trial in September 2023. This case was investigated by the Federal Bureau of Investigation and the Metropolitan Nashville Police Department. Assistant U.S. Attorneys Rachel Stephens and Kathryn Risinger prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # # # #


title: Independence Man Sentenced to 19 Years for Drug Trafficking, Illegal Firearms

body_text: KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today after law enforcement officers seized 22 firearms and a large quantity of a variety of illegal drugs from his residence and his two campers in Bagnell, Mo. Jonathan P. Henik, 45, was sentenced by U.S. District Judge Gary A. Fenner to 19 years and two months in federal prison without parole. On April 4, 2024, Henik pleaded guilty to two counts of being a felon in possession of firearms, two counts of possessing methamphetamine with the intent to distribute, possessing THC with the intent to distribute, two counts of possessing marijuana with the intent to distribute, possessing cocaine with the intent to distribute, and possession of an unregistered firearm. Independence police officers attempted to conduct a traffic stop while Henik, whose driver’s license was revoked, was driving a Dodge Charger on Sept. 1, 2021. However, as officers attempted to contact him after he pulled to the side of the road, Henik accelerated at a high rate of speed and fled the area. On Oct. 5, 2021, officers executed a search warrant at Henik’s residence. Investigators found 11 firearms in Henik’s bedroom, including two Taurus .45-caliber firearms, a Glock 9mm semi-automatic firearm, a Glock .40-caliber firearm, a Smith & Wesson .40-caliber firearm, a Colt .45-caliber firearm, a CZ 9mm firearm, a Diamond Back .223-caliber firearm, a Freedom Ordnance 9mm firearm, an ATI OMNI .223-caliber firearm, and a KEL-TEC 9mm firearm. Officers also found two jars of THC wax and drug paraphernalia in the kitchen. Officers found a black duffel bag that contained a Palmetto 7.62 x 39mm firearm, several rounds of ammunition, 105 grams of marijuana, and drug paraphernalia in a closet near the front door. In the garage, officers found six more firearms, including a Glock .40-caliber firearm, two Glock 9mm firearms, a Sig Sauer 9mm firearm, an SCCY 9mm firearm, a Ruger 9mm firearm, a 9mm extended magazine, a 7.62x39 magazine, and two 9mm magazines. Officers also found 928 grams of methamphetamine, a container of approximately 8.6 kilograms of THC edibles, numerous heat-sealed bags that contained a total of approximately 8.6 kilograms of marijuana, a bag that contained approximately 510.8 grams of marijuana, a bag that contained approximately 166 grams of marijuana, a bag that contained approximately four grams of psilocybin mushrooms, several prescription medications, approximately 40 pills of suspected MDMA (ecstasy), and a bag that contained approximately four grams of THC edibles. On Aug. 2, 2023, Henik was arrested on a federal warrant related to the original indictment in this case following law enforcement surveillance at his Sandpiper and Catalina campers parked in Bagnell. Officers searched the campers and found two firearms on the table in the living room of the Cataline camper, a loaded Browning Arms Company .22-caliber semi-automatic pistol with a silencer (which was not registered) and a loaded Polymer80 9mm semi-automatic firearm with no markings. In the Sandpiper camper, officers found a large bag of apparent marijuana on the table. In a black bag in the living room, they found multiple bags of apparent marijuana and a plastic bag that contained approximately 145 grams of cocaine. On a dresser in the bedroom, officers found a gun case that contained magazine and live ammunition, seven explosive devices, and approximately four grams of psilocybin mushrooms. In the dresser, officers found approximately 60 grams of methamphetamine. The total amount of marijuana recovered was approximately 1,723 grams (3.8 pounds). Officers also searched Henik’s Lincoln SUV and found a loaded Heckler & Koch 9mm semi-automatic pistol in the driver’s side floorboard, a loaded FMK 9mm semi-automatic pistol, a YETI cup that contained three different types of pills, $662 in cash in the center console, and a large bag of apparent marijuana in the back hatch. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Henik has prior federal felony convictions for conspiracy to manufacture methamphetamine and use of a firearm in connection with a drug offense. This case was prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Jackson County Drug Task Force and the Mid Missouri Drug Task Force. Project Safe Neighborhoods This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Convicted Felon Sentenced for the Second Time in One Year After Failing to Appear in Court While on Supervised Release

body_text: Salt Lake City, Utah – Thomas Fairbanks, 71, of Cache County, Utah, was sentenced today to an additional 30 days’ imprisonment for failure to appear in court for a sentencing hearing in a securities fraud case. The one month sentence will be served consecutively to his 27 months’ securities fraud sentence, which was imposed in April 2024. According to court documents and statements made at the change of plea hearing, on May 24, 2023, Fairbanks failed to appear in front of U.S. District Court Judge Jill N. Parrish for his sentencing in a 2019 securities fraud case, after he was convicted by a jury on August 30, 2022. After his failure to appear, a warrant was issued for his arrest, and he was later arrested in February 2024. According to court documents in the 2019 case, the defendant was convicted of a securities fraud scheme in connection with his fraudulent company SupplyLine Partners. As part of the scheme, Fairbanks created a pitch deck to advertise the entity, ran seminars to find investors, and ultimately convinced at least two individuals to invest with him in his fake entity. SupplyLine was never a registered company nor was Fairbanks authorized to sell securities. Fairbanks took victims’ money and did not invest as he said he would, never returned the money and did not pay out the promised 6% interest. In total, Fairbanks defrauded two victims out of $270,232. The case was investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office. Assistant United States Attorneys Ruth Hackford-Peer and Kevin Sundwall of the U.S. Attorney’s Office for the District of Utah prosecuted the case.


title: Justice Department’s Office on Violence Against Women Announces $86.16M in Grants to Support American Indian and Native Alaskan Survivors of Domestic Violence, Sexual Assault, Dating Violence, Stalking, and Sex Trafficking

component: Office of the Attorney General

body_text: The Justice Department announced yesterday more than $86.16 million in grants administered by the Tribal Affairs Division within the Office on Violence Against Women (OVW) to American Indian and Alaska Native communities to support survivors of domestic violence, dating violence, sexual assault, stalking, and sex trafficking. The grants provided through the Violence Against Women Act (VAWA) will fund services for victims of these crimes while providing support for Tribal governments, including law enforcement, prosecutors, and Tribal courts, to enhance safety and support Tribal sovereignty. The Tribal Affairs Division within OVW is responsible for the administration of Tribal specific grant programs and initiatives, management of Tribal specific training and technical assistance, and coordination with other federal departments and Justice Department offices on Tribal issues. Principal Deputy Director Allison Randall of OVW made the announcement at the annual Tribal Sexual Assault Services Program Institute, a convening of Tribal officials, victim advocates, and other Tribal leaders, as well as OVW-funded training and technical assistance advisors, who work to support Tribes in developing and improving programs to support survivors of sexual assault. “Tribal communities, and particularly American Indian and Alaska Native women and girls, have experienced disproportionately high levels of violence for too long,” said Attorney General Merrick B. Garland. “This $86 million dollar investment represents the Justice Department’s commitment to working in partnership with Tribal nations to address and prevent gender-based violence and provide safety and justice for survivors.” Included in these awards is more than $7.58 million that OVW is awarding under its new Grants to Indian Tribal Governments Program: Strengthening Tribal Advocacy Responses Track (START) Program. The program is for Tribal governments that have not previously or recently participated in OVW’s Grants to Indian Tribal Governments Program and focuses on capacity building early in the project period. Awardees will receive additional training, technical assistance, and support to implement their programs. Additionally, OVW awarded $45.17 million under the established Tribal Governments Program to support Tribal governments in responding to domestic violence, dating violence, sexual assault, sex trafficking, and stalking in Tribal communities. OVW also launched a new grant program this year through its Healing and Response Teams Special Initiative, which was created in response to recommendations made by the Not Invisible Act Commission. OVW awarded $2 million under this initiative to support the creation, training, and sustainability of Healing and Response Teams using a Tribal-based model of care to respond to Missing or Murdered Indigenous People (MMIP) cases related to domestic violence, dating violence, sexual assault, stalking, and sex trafficking. OVW is awarding grants totaling more than $3.57 million to Tribes under its Special Tribal Criminal Grant (STCJ) Program and $1.5 million under its Special Tribal Criminal Jurisdiction: Targeted Support for Alaska Native Tribes Special Initiative. The programs support Tribes that are preparing to exercise or are already exercising STCJ to ensure that victims find safety and justice and that non-Indians who commit covered crimes within their communities, including domestic violence, dating violence, sexual assault, and sex trafficking, are held accountable. OVW is also awarding grants totaling $3.75 million under its Violence Against Women Tribal Special Assistant U.S. Attorney Initiative to support the collaboration between Tribes and U.S. Attorneys’ Offices in their investigation and prosecution of domestic violence, sexual assault, dating violence, sex trafficking, and stalking cases in Indian country. OVW is also awarding grants totaling more than $11.11 million under its Tribal Sexual Assault Services Program to support Tribes, Tribal organizations, and Tribal nonprofit organizations in operating sexual assault services programs in Indian country and Alaska Native villages. Additionally, OVW awarded funding totaling more than $8.28 million under its Grants to Tribal Domestic Violence and Sexual Assault Coalitions Program to support the development and operation of nonprofit, nongovernmental Tribal domestic violence and sexual assault coalitions. “We are committed to addressing the disproportionately high rates of violent crime faced by American Indian and Alaska Native women and girls and ensuring everyone can access both safety and justice,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “This funding supports Tribal governments and Tribal organizations’ efforts to provide legal services, housing assistance, medical care, and counseling to victims of domestic violence, sexual assault, and other forms of gender-based violence.” OVW is also awarding grants totaling $3.2 million for Tribal training and technical assistance (TA) programs. The TA programs support grantees through in-person and online educational opportunities, peer-to-peer networks, on-site technical assistance, and tailored support to help grantees further develop expertise and targeted strategies to implement their programs successfully. “The strength of VAWA is enhancing a coordinated community response,” said OVW Director Rosie Hidalgo. “These grant programs provide critical support for Tribes to address gender-based violence by fostering essential partnerships among victim services organizations, law enforcement, prosecutors, community-based organizations, and other key stakeholders who play a crucial role in supporting survivors and providing pathways for them to access justice, safety, and healing.” OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW has awarded more than $11 billion in funding to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW supports policy development and undertakes special initiatives in response to community-identified needs. Learn more at www.justice.gov/ovw . View the Special Tribal Criminal Jurisdiction: Targeted Support for Alaska Native Tribes Special Initiative (STCJ AK) Program Award. View the Tribal Special Assistant U.S. Attorney Initiative Awards. View the Tribal Domestic Violence and Sexual Assault Coalitions Invitation to Apply Awards. View the Indian Tribal Governments: Strengthening Tribal Advocacy Responses Track (START) Awards. View the Healing and Response Teams Special Initiative Awards. View the Indian Tribal Governments Program Awards. View the Tribal Sexual Assault Services Program Awards.


title: Springbrook Man Sentenced to Prison for Failure to Pay Employment Taxes

component: USAO - Wisconsin, Western

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Gregory Vreeland, 55, Springbrook, Wisconsin, was sentenced yesterday by Chief U.S. District Judge James D. Peterson to one year and one day in federal prison for failure to pay employment taxes. Vreeland pleaded guilty to this charge on April 18, 2024. Vreeland paid $684,469 to the Internal Revenue Service (IRS) in unpaid taxes prior to entering a guilty plea in the case. Vreeland owns and operates Wisconsin Great Northern Railroad, Inc. (the Railroad) which provides recreational train ride experiences, as well as rail car storage and rail switching services. Vreeland also co-owned and operated the Country House Motel and RV Park (the Motel) starting in August 2015. Both the Railroad and the Motel operated out of Spooner, Wisconsin. The defendant served as the Railroad’s president and the Motel’s managing partner and was responsible for all aspects of the businesses, including among other things: signing checks, paying creditors, paying employees, signing and filing payroll taxes, making payroll tax deposits, and making banking deposits. Vreeland made the financial decisions for the Railroad and the Motel, including the filing of employment tax returns. Vreeland failed to file employment tax forms for the Railroad from the fourth quarter of 2017 through all of 2021 and failed to pay over the associated employee withholdings for that same time period. Vreeland also failed to file employment tax forms for the Motel from the third quarter of 2015 through the third quarter of 2020 and failed to pay over the associated employee withholdings for that same time period. Vreeland used the employee withholdings to buy land and equipment to expand the Railroad’s operations, and to purchase a personal residence in Springbrook. Vreeland was aware of his obligation to file employment tax forms and pay employment taxes because from 2014 to mid-2016, he received civil notices from the IRS for non-payment, which he initially ignored. Vreeland made no attempt to cooperate with the IRS until it began levying bank accounts. At the sentencing hearing, Judge Peterson stated that Vreeland’s failure to pay employment taxes was a serious crime and was “part of a long-sustained pattern of criminal conduct.” Judge Peterson noted that the crime was aggravated by the fact that Vreeland had failed to pay over employment taxes from his businesses from 2014 - 2016 and then he engaged in the same conduct again starting in 2018. Judge Peterson also called Vreeland’s acts selfish and said the acts showed that Vreeland did not believe the tax laws applied to him. The charge against Vreeland was a result of an investigation conducted by IRS Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.


title: Leader of Eau Claire Drug Trafficking Organization Sentenced to 10 Years

body_text: MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Hector A. Jimenez-Sosa, 40, Eau Claire, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 10 years in federal prison for distributing 50 grams or more of methamphetamine. The prison term will be followed by 4 years of supervised release. Jimenez-Sosa pleaded guilty to this charge on July 8, 2024. The government’s investigation revealed that Jimenez-Sosa was the leader of a methamphetamine, fentanyl, and cocaine trafficking organization in Eau Claire, Wisconsin. He received large quantities of controlled substances through the mail from his sources in California. Between August and October 2023, law enforcement officers purchased methamphetamine and fentanyl pills from Jimenez-Sosa and his associates on multiple occasions using a confidential informant. The drug sales took place at two workshops operated by Jimenez-Sosa. The final drug sale occurred on October 31, 2023, when Jimenez-Sosa sold approximately one pound of methamphetamine to the informant. On December 8, 2023, Jimenez-Sosa was arrested, and search warrants were executed at his residence and workshops. Officers located cocaine, marijuana, ammunition, and drug trafficking supplies. During this investigation and while running his drug trafficking organization, Jimenez-Sosa was out on bond and later convicted and placed on probation for a state felony domestic abuse conviction. At sentencing, Judge Conley found that the total quantity of narcotics Jimenez-Sosa’s organization distributed in the Eau Claire area was significant. He noted that Jimenez-Sosa had an extensive arrest history that included convictions for drug trafficking, violence, and illegal weapons possession. Judge Conley said that Jimenez-Sosa’s drug trafficking was a dramatic escalation in conduct and “caused some real damage” to communities in the Eau Claire area. Another individual, Mario R. Aviles, was charged in connection with this drug trafficking organization. Aviles pleaded guilty to distribution of fentanyl and methamphetamine on July 16, 2024, and is scheduled to be sentenced by Judge Conley on October 17, 2024. The charges against Jimenez-Sosa and Aviles were the result of an investigation conducted by the West Central Drug Task Force, Eau Claire Police Department, Eau Claire County Sheriff’s Department, Drug Enforcement Administration, and United States Postal Inspection Service. The Eau Claire County District Attorney’s Office also assisted with the investigation. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.


title: Grand Jury Returns Indictments

body_text: MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and a person named as defendant in an indictment is presumed innocent unless and until proven guilty. Madison Man Charged with Illegally Possessing Firearm with Machine Gun Conversion Device Jontrae M. Larsen, 22, Madison, Wisconsin, is charged with possessing a firearm as a felon and possessing a firearm with a machine gun conversion device. The indictment alleges that Larsen possessed a Glock 17 handgun with a machine gun conversion device from November 22, 2023, through on or about January 6, 2024. If convicted of the charge that he possessed a firearm as a felon, Larson faces a maximum penalty of 15 years in prison. The machine gun charge carries a 10-year maximum penalty. A machine gun conversion device converts a handgun from semi-automatic to fully automatic. Machine gun conversion devices are illegal, as are any firearms with the devices. The charges against Larsen are the result of an investigation conducted by the ATF Madison Crime Gun Task Force consisting of federal agents from ATF and Task Force Officers (TFOs) from local agencies including the Dane County and Clark County Sheriff’s Offices and the Fitchburg, Madison, Sun Prairie, and La Crosse Police Departments. The Wisconsin Department of Justice Division of Criminal Investigation and the Waunakee, Deforest, and Monona Police Departments also assisted with the investigation. Assistant U.S. Attorney Steven Ayala is handling the case. This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms. Minnesota Man Charged with Possessing Fentanyl and Heroin for Distribution Ernest N.R. McCurty, 42, Minneapolis, Minnesota, is charged with possessing 40 grams or more of a mixture containing fentanyl and heroin intended for distribution. The indictment alleges that McCurty possessed the mixture on or about November 7, 2023. If convicted, McCurty faces a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison. The charge against McCurty is the result of an investigation by the Columbia County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Colleen Lennon is handling the case. Black River Falls Man Charged with Possessing Methamphetamine for Distribution Michael B. Kingsley, 43, Black River Falls, Wisconsin, is charged with possessing 50 grams or more of methamphetamine intended for distribution. The indictment alleges that Kingsley possessed the methamphetamine on or about November 8, 2023. If convicted, Kingsley faces a mandatory minimum penalty of 5 years and a maximum penalty of 40 years in prison. The charge against Kingsley was the result of investigation by the Monroe County Sherriff’s Office and the Fort McCoy Police Department. Assistant U.S. Attorney Kathryn Ginsberg is handling the case.