title: 12 Charged With Fentanyl Trafficking in Abilene

body_text: Twelve alleged fentanyl traffickers were arrested in a large-scale drug bust in Abilene, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. The takedown – the second in an operation that previously resulted in the prosecution of 17 drug traffickers arrested during a large-scale bust in late February – involved agents and officers from the Federal Bureau of Investigation’s Dallas Field Office - Abilene Resident Office, the Taylor County Sheriff’s Office, the Abilene Police Department, and the Callahan County Sheriff’s Office. Those charged in two separate indictments unsealed today include: Christopher Thompson, charged with possession with intent to distribute fentanyl Marquee Anthony Aboso, aka OC, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Kurtney Bernard Jones, aka KP, charged with conspiracy to distribute fentanyl and two counts of possession with intent to distribute fentanyl Steven Lattimore, aka PNut, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Mckenzee Marie Lane, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Maxine Gonzales, charged with conspiracy to distribute and possess with intent to distribute fentanyl Tylik Ojur Johnson, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Jeremiah Greene, aka Lil Mexico, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Paul Eli Snyder, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Robert Lee Mason, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Glen Edward Lee, Jr., charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Christopher Anthony Glaze, charged with conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl Over the course of the operation into these individuals, agents seized more than 14,856 fentanyl pills, 45.4 grams of heroin, 2.56 grams of meth, and 15.56 grams of crack cocaine, as well as multiple firearms. An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty in a court of law. If convicted, some defendants named in these indictments face up to 20 years in federal prison. Sixteen of the 17 defendants arrested in February’s takedown have already been convicted. Fourteen have already been sentenced to a combined 187 years in federal prison; two pleaded guilty and await sentencing, and one is awaiting trial. The lead defendant, Diana Perez, deemed responsible for more than 109,221 kilograms of drugs, was sentenced Thursday to more than 24 years in federal prison. The Federal Bureau of Investigation’s Dallas Field Office - Abilene Resident Agency, the Drug Enforcement Administration's Dallas Field Division - Fort Worth Resident Agency, and the Taylor County Sheriff’s Office conducted the investigation with the assistance of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, & Explosives' Dallas Field Division, and the IRS – Criminal Investigations. The cases are being prosecuted by the West Texas Branch of the U.S. Attorney’s Office for the Northern District of Texas. This prosecution stems from an Organized Crime Drug Enforcement Task Forces (OCDETF) instigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transitional criminal organizations that threaten the Untied States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF program can be found at https://www.justice.gov/OCDETF .


title: Justice Department Reaches Agreement with Citadel Federal Credit Union to Resolve First-Ever Redlining Action Against a Credit Union

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA, PA – The United States Department of Justice announced today that Citadel Federal Credit Union (Citadel) has agreed to resolve allegations that it engaged in a pattern and practice of lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in and around Philadelphia. If approved by the court, this redlining resolution would be the Justice Department’s first involving a credit union. “Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities or zip codes because of the race, color, or national origin of persons residing there. Under a proposed consent order filed today in federal court in conjunction with a complaint, Citadel has agreed to invest over $6.5 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. The proposed consent order also requires Citadel to establish three new branches in Black and Hispanic neighborhoods in Philadelphia over the course of five years. In its complaint, the United States alleges that from at least 2017 through 2021, Citadel provided mortgage lending services to majority-Black and Hispanic neighborhoods in and around Philadelphia at rates far below that of comparable lenders. During the same time frame, peer lenders generated mortgage applications in predominantly Black and Hispanic neighborhoods at nearly three times the rate of Citadel and originated mortgage loans in those neighborhoods over three times as often. The United States alleges that Citadel disproportionately focused its outreach, marketing, and home mortgage lending on the predominately White suburbs in the Greater Philadelphia region. All but one of Citadel’s full-service branches are in majority-White neighborhoods, and no branches are in Philadelphia, which contains over 75% of the majority-Black and Hispanic neighborhoods and 34% of the total population in Citadel’s market area. Under the proposed consent order, Citadel agrees to invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Philadelphia. Citadel will spend an additional $250,000 on community partnerships to provide credit, consumer finance, homeownership, and foreclosure prevention services to the residents of these areas, and at least $270,000 on advertising, consumer financial education, and credit counseling. Citadel will also open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia and will hire a community lending officer to oversee the continued development of lending in communities of color. According to United States Attorney Jacqueline C. Romero, the proposed resolution presents a tremendous opportunity for long-underserved Philadelphia residents. “For generations, Philadelphia’s communities of color have lacked equal access to the credit needed for homeownership. We know that redlining has a devastating impact on a family’s finances and future, and results in economic and other inequalities that plague our communities for decades,” said Romero. “We also know the transformational change that can occur when credit is made available to underserved residents, and particularly when lenders, like Citadel, establish branch locations in these neighborhoods.” “This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There are well over 4,600 credit unions across America, all subject to federal laws that prohibit redlining and lending discrimination. Redlining and other forms of lending discrimination harm communities of color and families by denying them an equal opportunity to access credit, attain the dream of homeownership and build generational wealth. This settlement will expand investment in Black and Hispanic communities, particularly in Philadelphia, and increase opportunities for homeownership and financial stability. Residents of communities harmed by unlawful redlining will finally be able to access credit services from Citadel in their own neighborhoods, including at the new branches required by the settlement.” The settlement is part of the U.S. Attorney General’s Combating Redlining Initiative , announced in October 2021 and aimed at coordinating agencies’ enforcement efforts to address this persistent form of discrimination. The Initiative expands the Justice Department’s reach by strengthening partnerships with U.S. Attorney’s Offices and other federal and state agencies across the country. Since 2021, the department has announced 14 redlining resolutions and secured over $144 million in relief for communities of color that have been the victims of lending discrimination across the country. Assistant U.S. Attorney Bryan C. Hughes, Assistant U.S. Attorney Paul Kaufman (now with the District of New Jersey), Deputy Civil Chief for Civil Rights Lauren DeBruicker, and former Investigator Jeffrey Braun handled this matter for the U.S. Attorney’s Office for the Eastern District of Pennsylvania, in collaboration with attorneys from the Justice Department’s Civil Rights Division. Citadel cooperated with the Justice Department’s investigation and worked with the department to resolve the redlining allegations. A copy of the complaint and information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing . Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online .


title: Controller Of Family-Owned Businesses Pleads Guilty To Embezzling $3.4 Million

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that JOHN HICKEY, the former controller and Director of Quality Assurance for a family-owned business in Armonk, New York, pled guilty to one count of wire fraud in connection with his embezzlement of more than $3.4 million from the business. U.S. Attorney Damian Williams said: “John Hickey embezzled over $3.4 million from a family-owned business, exploiting his position of trust for personal gain. Today’s guilty plea holds Hickey accountable for his illegal conduct and demonstrates our unwavering commitment to pursuing justice for victims of fraud.” According to the allegations contained in the Information: [1] HICKEY was a member of the family that owned the group of victim corporations and held minority ownership interest in some of the corporations. The victim corporations manufactured flame retardant fabrics. HICKEY began to work at the victim corporations while he was in college and became the Director of Quality Assurance in or about 2012. HICKEY also served as the controller of some of the victim corporations. From February 2018 to November 2023, HICKEY embezzled $3,461,292.69 from the victim corporations. He created false invoices that appeared to be from entities with which the vctim corporations did business. He then forged signatures that supposedly approved payment of those invoices and caused the victims' accounting system to print checks payable to him in the amount of the invoices. Once a check was printed, HICKEY changed the payee on the check to match the name on the corresponding false invoice. He used a rubber signature stamp to sign the checks. HICKEY used the proceeds of the above scheme to gamble on sporting events, to attend concerts and sporting events, to improve and repair his home and to go on vacations. * * * HICKEY, 34, of Feasterville-Trevose, PA, pleaded guilty to one count of wire fraud, which carries a maximum sentence of twenty years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court. Mr. Williams praised the outstanding investigative work of the Special Agents of the United States Attorney's Office for the Southern District of New York. This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution. [ 1] As the introductory phrase signifies, the entirety of the text of the Information, and the description of the Information set forth herein, constitute only allegations, and every fact described should be treated as an allegation.


title: Utah Fraudster Sentenced for Selling 120,000 Fake COVID-19 Vaccination Record Cards

component: USAO - Utah

body_text: SALT LAKE CITY, Utah – The lead defendant in a scheme that manufactured, sold and distributed 120,000 counterfeit COVID-19 vaccination record cards was sentenced today. Nicholas Frank Sciotto, 34, of Salt Lake City, was sentenced by U.S. District Court Judge Tena Campbell to 12 months’ imprisonment, three years supervised release, and ordered by the court to pay a $40,000 fine, after he admitted in July 2024 that he conspired to defraud the U.S. Department of Health and Human Services and the Center for Disease Control and Prevention (CDC) by selling and distributing counterfeit COVID-19 vaccination record cards. In turn, Sciotto obtained over approximately $400,000 in profits. U.S. Dept. of Health and Human Services-OIG According to court documents and statements made at Sciotto’s sentencing hearing, between March 2021 and September 2021, Sciotto promoted, manufactured, sold, and distributed illegal and counterfeit COVID-19 vaccination record cards across the country. He also sold the COVID-19 vaccination record cards wholesale to several coconspirators, including Kyle Blake Burbage, 33, of Goose Creek, South Carolina. Together, the coconspirators enabled numerous people to use fake vaccination record cards to masquerade as being vaccinated, so they could evade public health and safety protocols across the nation. Sciotto engaged in this scheme–without regard for any public health consequences or risks that he exposed individuals to during the pandemic, without their knowledge or consent, and he undermined the CDC’s COVID-19 vaccination program and other governmental health and safety regulations and protocols at significant profit. U.S. Dept. of Health and Human Services-OIG On Facebook, Sciotto sold each card for $10 with a 10 card minimum per order, plus $5 for shipping and directed buyers to a mobile payment service to complete the transaction. In furtherance of the crime, Sciotto made a fake badge and identified himself as a volunteer with a major COVID-19 testing company in Utah to trick a print shop worker into believing Sciotto worked for a hospital and was authorized to print out thousands of copies of COVID-19 vaccination record cards. United States Attorney Trina A. Higgins for the District of Utah made the announcement. The case was investigated jointly by the U.S Department of Health and Human Services – Office of Inspector General (HHS-OIG) and the FBI Salt Lake City Field Office. Assistant United States Attorney Todd C. Bouton and Special Assistant United States Attorney Sachi J. Jepson of the U.S. Attorney’s Office for the District of Utah prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus and https://www.justice.gov/coronavirus/combatingfraud Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Justice Department Secures Over $6.5M from Citadel Federal Credit Union to Address Redlining of Black and Hispanic Communities

component: Civil Rights Division

body_text: The Justice Department announced today that Citadel Federal Credit Union (Citadel) has agreed to pay over $6.5 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining predominantly Black and Hispanic neighborhoods in and around Philadelphia. This landmark agreement is the Justice Department’s first redlining settlement with a credit union, making this a historic achievement for the Combating Redlining Initiative. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities. “This redlining settlement marks the Justice Department’s very first resolution involving a credit union, making clear our intent to hold all types of lenders accountable for their role in modern-day redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There are well over 4,600 credit unions across America, all subject to federal laws that prohibit redlining and lending discrimination. Redlining and other forms of lending discrimination harm communities of color and families by denying them an equal opportunity to access credit, attain the dream of homeownership and build generational wealth. This settlement will expand investment in Black and Hispanic communities, particularly in Philadelphia, and increase opportunities for homeownership and financial stability. Residents of communities harmed by unlawful redlining will finally be able to access credit services from Citadel in their own neighborhoods, including at the new branches required by the settlement.” “For generations, Philadelphia’s communities of color have lacked equal access to the credit needed for homeownership. We know that redlining has a devastating impact on a family’s finances and future, and results in economic and other inequalities that plague our communities for decades,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “We also know the transformational change that can occur when credit is made available to underserved residents, and particularly when lenders, like Citadel, establish branch locations in these neighborhoods.” The Justice Department’s complaint , which was filed today in the Eastern District of Pennsylvania, alleges that, from at least 2017 through 2021, Citadel failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in and around Philadelphia and discouraged people seeking credit in those communities from obtaining home loans. Citadel’s home mortgage lending was focused disproportionately on white areas around Greater Philadelphia. Peer lenders generated mortgage applications in predominately Black and Hispanic neighborhoods at nearly three times the rate of Citadel and originated mortgage loans in these areas at more than three times the rate of Citadel. The complaint further alleges that Citadel’s branches are located almost exclusively in majority-White neighborhoods, with no branches in Philadelphia, which contains more than 75% of the majority-Black and Hispanic neighborhoods and 34% of the total population in Citadel’s market area. Under the proposed consent order , which is subject to court approval, Citadel has agreed to invest $6.52 million to increase credit opportunities for communities of color in and around Philadelphia. Specifically, Citadel will: Invest at least $6 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance loans for residents of majority-Black and Hispanic neighborhoods in Philadelphia; Spend at least $250,000 on community partnerships to provide services related to credit, consumer financial education, homeownership and foreclosure prevention for residents of predominantly Black and Hispanic neighborhoods in Citadel’s market area; Spend at least $270,000 for advertising, outreach, consumer financial education and credit counseling focused on predominantly Black and Hispanic neighborhoods in Philadelphia; Open three new branches in predominantly Black and Hispanic neighborhoods in Philadelphia; and Hire a community lending officer who will oversee the continued development of lending in communities of color. Citadel also agreed to retain independent consultants to enhance its fair lending program and better meet the communities’ needs for mortgage credit. The credit union will conduct a community credit needs assessment, evaluate its fair lending compliance management systems, and conduct staff trainings. With assets of approximately $6 billion, Citadel is headquartered in Pennsylvania and operates 24 branches in its market area of Greater Philadelphia, which includes Bucks, Chester, Delaware, Lancaster, Montgomery and Philadelphia Counties. Citadel is the second largest credit union in the region and has over 263,000 members. Citadel cooperated with the Justice Department’s investigation. In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative , a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 14 redlining resolutions and secured over $144 million in relief for communities of color that have been the victims of lending discrimination across the country. In March, Assistant Attorney General Clarke presented remarks to America’s Credit Unions’ Governmental Affairs Conference regarding the unique issues raised by redlining in the credit union industry. A copy of the complaint and information about the Justice Department’s fair lending enforcement work can be found at www.justice.gov/fairhousing . Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online .


title: El Departamento de Justicia obtiene más de $6.5 millones de la cooperativa de crédito Citadel Federal Credit Union para abordar la exclusión financiera de las comunidades negras e hispanas

body_text: El Departamento de Justicia anunció hoy que Citadel Federal Credit Union (Citadel) ha acordado pagar más de $6.5 millones para resolver las acusaciones de haber incurrido en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Philadelphia y sus alrededores. Este acuerdo histórico es el primer acuerdo sobre la exclusión financiera que el Departamento de Justicia ha conseguido con una cooperativa de crédito, lo que lo convierte en un logro histórico para la Iniciativa para Combatir la Exclusión Financiera. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color o el origen nacional de los residentes de esas comunidades. “Este acuerdo sobre la exclusión financiera marca la primera resolución del Departamento de Justicia que involucra una cooperativa de crédito, lo que deja claro nuestra intención de hacer responsables a todos los tipos de prestamistas por su papel en la exclusión financiera moderna,” comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Hay más de 4,600 cooperativas de crédito en los Estados Unidos, cada una de las cuales está sujeta a leyes federales que prohíben la discriminación crediticia y la exclusión financiera. La exclusión financiera y otras formas de discriminación crediticia causan daño a las comunidades de color y a las familias al negarles la igualdad de oportunidades para acceder al crédito, lograr el sueño de ser propietarios de una casa y generar riqueza generacional. Este acuerdo ampliará la inversión en comunidades negras e hispanas, especialmente en Philadelphia, y mejorará las oportunidades de ser propietario de una casa y de alcanzar la estabilidad financiera. Los residentes de comunidades perjudicadas por la exclusión financiera ilegal finalmente podrán acceder a los servicios crediticios de Citadel en sus propios barrios, incluso en las nuevas sucursales requeridas por el acuerdo.” “Durante generaciones, las comunidades de color de Philadelphia han carecido de acceso igualitario al crédito necesario para ser propietarios de casa. Sabemos que la exclusión financiera tiene un impacto devastador en las finanzas y el futuro de una familia, y resulta en desigualdades económicas y de otro tipo que atormentan a nuestras comunidades durante décadas,” afirmó Jacqueline C. Romero, la Fiscal Federal para el Distrito Este de Pennsylvania. “También somos conscientes del cambio transformador que puede ocurrir cuando el crédito se pone a disposición de los residentes desfavorecidos, y particularmente cuando los prestamistas, como Citadel, establecen sucursales en estos barrios.” La demanda del Departamento de Justicia, que se presentó hoy en el Distrito Este de Pennsylvania, alega que, desde al menos el 2017 hasta el 2021, Citadel no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra e hispana en Philadelphia y sus alrededores, y desalentó a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios de Citadel se centraron desproporcionadamente en áreas blancas de la zona metropolitana de Philadelphia. Otros prestamistas generaron solicitudes de hipoteca en barrios de mayoría negra e hispana a casi el triple de la tasa de Citadel y originaron préstamos hipotecarios en estas áreas a más del triple de la tasa de Citadel. Más aún, la demanda alega que las sucursales de Citadel se encuentran casi exclusivamente en barrios de mayoría blanca, sin sucursales en la Ciudad de Philadelphia, que contiene más del 75% de los barrios de mayoría negra e hispana y el 34% de la población total en el área de mercado de Citadel. En virtud de la orden de consentimiento propuesta, que queda sujeta a la aprobación del tribunal, Citadel ha acordado invertir $6.52 millones para aumentar las oportunidades crediticias para las comunidades de color en Philadelphia. En concreto, Citadel: Invertirá al menos $6 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y préstamos de refinanciamiento residencial para residentes de barrios de mayoría negra e hispana en Philadelphia y sus alrededores; Gastará al menos $250,000 en el desarrollo de asociaciones comunitarias para la prestación de servicios relacionados con el crédito, la educación financiera del consumidor, la adquisición de viviendas y la prevención de ejecuciones hipotecarias para residentes de barrios de mayoría negra e hispana en el área de mercado de Citadel; Gastará al menos $270,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana en Philadelphia; Abrirá tres sucursales nuevas en barrios de mayoría negra e hispana en Philadelphia; y Contratará a un director de préstamos comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color. Asimismo, Citadel ha acordado contratar a consultores independientes para mejorar su programa de préstamos justos y satisfacer mejor las necesidades de crédito hipotecario de las comunidades. La cooperativa de crédito llevará a cabo una evaluación de las necesidades crediticias comunitarias, evaluará sus sistemas de gestión de cumplimiento con las leyes de préstamos justos y llevará a cabo capacitaciones del personal. Con activos de aproximadamente $6 mil millones, Citadel tiene su sede en Pennsylvania y opera 24 sucursales en su área de mercado por la zona metropolitana de Philadelphia, que incluye los condados de Bucks, Chester, Delaware, Lancaster, Montgomery y Philadelphia. Citadel es la segunda cooperativa de crédito más grande de la región y cuenta con más de 263,000 miembros. Citadel cooperó con la investigación del Departamento de Justicia. En octubre del 2021, el Fiscal General Garland y la Fiscal General Auxiliar Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado 14 casos de exclusión financiera y ha obtenido más de $144 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país. En marzo, la Fiscal General Auxiliar Clarke presentó comentarios en la Conferencia de Asuntos Gubernamentales de las Cooperativas de Crédito de los Estados Unidos sobre los problemas únicos planteados por la exclusión financiera en la industria de las cooperativas de crédito. Puede encontrar una copia de la demanda e información sobre la aplicación de las leyes de préstamos justos del Departamento de Justicia en www.justice.gov/fairhousing . Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea .


title: Jury Returns Guilty Verdict Against District Man on First-Degree Murder While Armed for 2020 Shooting

component: USAO - District of Columbia

body_text: WASHINGTON – A jury sitting in Superior Court today found Dennis Chase, 32, of Washington, D.C., guilty of first-degree murder while armed, possession of a firearm during a crime of violence, and unlawful possession of a firearm in the December 2020 shooting death of Anthony Orr. The verdict was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Sentencing is scheduled for January 10, 2024. According to the government’s evidence, the defendant drove around the Washington Highlands neighborhood with the victim, Anthony Orr, sitting in the passenger seat. As the defendant slowly drove down Xenia St SE, he raised a gun to Mr. Orr’s head and fired one lethal shot. The defendant pushed Mr. Orr out of the car and sped off. The defendant drove 30 miles North of the District to the woods of Severn, Maryland, where he doused the car in diesel exhaust fluid and attempted to light it on fire. The defendant then hiked through the woods until he found a random home, where he stripped down and hid his clothes and other evidence in the back shed, knocked on the back door, and asked for help. The homeowner called 911, and Anne Arundel County Police arrested the defendant on an unrelated warrant. MPD Homicide Detectives later charged defendant for the murder of Mr. Orr. The defendant claimed he acted in self-defense. This case was investigated by the Metropolitan Police Department and Assistant United States Attorney Peter Roman. It was prosecuted and tried by Assistant United States Attorneys Wes Faulkner and Andrea Antonelli.


title: Former Health Care Manager Sentenced to Prison for Embezzlement Scheme

component: Federal Bureau of Investigation (FBI)

body_text: MACON, Ga. – The former office manager of a Middle Georgia chiropractic office was sentenced to serve more than five years in prison after a federal jury found her guilty of committing bank fraud and other federal crimes in an embezzlement scheme that cost an established spinal center more than $200,000 in losses and resulted in its closure. Emiliya Radford, 33, of Warner Robins, Georgia, was sentenced to serve 66 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Oct. 9. In addition, Radford will pay $298,042.72 in restitution to Dr. James C. Smith on behalf of Smith Spinal Care Center. Radford was found guilty of one count each of bank fraud, wire fraud and federal program theft following approximately one hour of deliberations by a federal jury on June 27. There is no parole in the federal system. “Financial crime can be life-changing for its victims; here, it forced a business’s closure and burdened innocent people with debt and other troubles,” said U.S. Attorney Peter D. Leary. “FBI and our other federal, state and local law enforcement partners will work to protect small businesses from financial crimes and hold fraudsters accountable.” “Radford violated the trust of the company that hired her and elevated her to a position of leadership,” said Robert Gibbs, Supervisory Senior Resident Agent of FBI Atlanta's Macon office. “Because of her selfishness and greed, she has not only thrown away her career, but crippled a business and took away jobs from numerous victims. She will now serve a well-deserved prison sentence.” According to court documents and evidence submitted at trial, Radford’s company, Cyber Pinecone, was hired in Sept. 2019 under a one-year contract to perform marketing work for Smith Spinal Care Center (SSCC) in Warner Robins. In May 2020, Radford was hired as Office Manager at the business, and her new salary included marketing work. Radford was given signatory authority over the SSCC bank account and was responsible for issuing and signing all biweekly payroll checks, including her own. Radford collected her salary as office manager and, without authorization of SSCC, continued to write and endorse checks to her business, Cyber Pinecone, for extensive marketing work totaling more than $200,000. In addition, she gave herself an unauthorized pay raise and used money from the SSCC bank account to purchase $11,015.67 worth of items from the Apple store that she shipped to her residence. When Radford quit on Dec. 19, 2022, none of the Apple items could be located at SSCC, but some were found inside her home when federal agents executed a search warrant on May 4, 2023. A portion of the embezzled funds came from COVID-19 Federal Economic Disaster Loans (EIDL) directed to aid the business. The case was investigated by FBI. Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government.


title: Former Arkansas Sheriff’s Deputies Sentenced for Federal Civil Rights Violations for Violently Assaulting Subdued Man

body_text: Two former Crawford County, Arkansas, sheriff’s deputies were sentenced for using unlawful force on a man they arrested. Levi White, 34, was sentenced yesterday to 63 months in prison, and Zackary King, 28, was sentenced today to 12 months in prison. Each defendant pleaded guilty to one count of deprivation of rights under color of law for a retaliatory assault on R.W., a 26-year-old man. On Aug. 21, 2022, White, King and a third officer approached R.W. in a gas station parking lot during their investigation into a person threatening a store attendant. R.W. lunged at White and tackled him, then all three officers quickly subdued R.W. and pinned him to the ground. After R.W. was pinned to the ground and no longer fighting the officers, White punched R.W. at least nine times in the head, then lifted R.W.’s head and slammed it into the pavement. King kicked R.W. in the back and struck R.W. once in the midsection with his fist. Following the announcement of a federal investigation into the assault, White obstructed the investigation by wiping all data from his county-issued cell phone and selectively deleting text messages about the incident from his personal phone. White asked King if King was also going to wipe his cell phone, but King declined to do so. “Punching a man in the head, slamming their head repeatedly on the concrete pavement, kicking them in the back and striking them in the midsection — this kind of gratuitous and unjustified violence at the hands of law enforcement runs contrary to the oath that officers take in our country to protect and serve,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendants swore an oath to uphold the law, then violated that oath and abused their power as law enforcement officers by assaulting a person in their custody. At the time of the assaults, three officers had already subdued the victim, and further force was unnecessary and unlawful. White added fuel to the fire by taking steps to obstruct the investigation into the violent assault. The Justice Department will continue to vigorously prosecute officers who abuse their authority and violate the rights of people in their custody.” “Levi White and Zackary King’s sentencings prove that no law enforcement officer is above the law,” said Special Agent in Charge Alicia D. Corder of the FBI Little Rock Field Office. “FBI Little Rock, alongside our trusted partners at Arkansas State Police, will continue to investigate potential abuses of power and civil rights violations throughout our state. We encourage anyone who has information about abusive or corrupt law enforcement to contact the FBI’s ArkTrust Task Force immediately.” The FBI Little Rock Field Office and Arkansas State Police investigated the case. Assistant U.S. Attorneys Dustin Roberts and Devon Still for the Western District of Arkansas and Special Litigation Counsel Michael J. Songer and Trial Attorneys Lia Rettammel and Anna Gotfryd of the Justice Department’s Civil Rights Division prosecuted this case.


title: New Jersey Construction Company Owner Pleads Guilty to Tax Evasion

component: Tax Division

body_text: A New Jersey man pleaded guilty today to tax evasion for evading employment tax penalties assessed against him. According to court documents and statements made in court, Joseph Caravella, of Randolph, owned several masonry companies in New Jersey. From 2008 to 2016, the IRS assessed approximately $650,000 in Trust Fund Recovery penalties against Caravella for causing three masonry businesses that he owned to not pay their federal employment taxes. From around March 2008 through in or around April 2019, Caravella sought to evade the payment of these penalties by placing companies that he controlled in the names of nominee owners and avoiding using a bank account in his own name to prevent the IRS from levying the funds. Also during that time, Caravella continued to cause his businesses not to pay employment taxes, resulting in an additional loss of $1.2 million to the IRS. In total, Carvalla caused a tax loss to the IRS of $1,885,519.39. Caravella is scheduled to be sentenced on March 18. He faces a maximum penalty of five years in prison, a period of supervised release, restitution and monetary penalties. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement. IRS Criminal Investigation are investigating the case. Trial Attorneys Kenneth Vert and Evan Mulbry of the Tax Division and Assistant U.S. Attorney Shontae Gray for the District of New Jersey are prosecuting the case.


title: Court Prohibits Two Texas Physicians from Prescribing Opioids and Imposes $1.2M in Civil Penalties for Alleged Unlawful Opioid Distribution

component: Civil Division

body_text: A federal court has prohibited two Dallas-area physicians from prescribing opioids and other controlled substances and imposed a total of $1.2 million in judgments against them in a case alleging the physicians violated the Controlled Substances Act (CSA), the Justice Department announced today. In a civil complaint filed in 2019 in the Northern District of Texas, the United States alleged that Cesar B. Pena Rodriguez M.D. and Leovares A. Mendez M.D. violated the CSA by issuing prescriptions for opioids and other powerful drugs outside the usual course of professional practice and not for a legitimate medical purpose. The complaint alleged that the defendants issued thousands of prescriptions without apparent regard for patient harm, including prescriptions for a combination of an opioid, a short-acting benzodiazepine, and a muscle relaxer — a dangerous and frequently-abused drug cocktail known as the “trinity.” In an order filed Oct. 8, the court imposed a $291,451 civil penalty judgment against Mendez in addition to a $914,021 civil penalty judgment against Pena Rodriguez entered earlier this year. “Prescribing opioids for no legitimate purpose betrays the trust placed in our medical professionals and significantly threatens the communities they serve,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to use every available tool to stop doctors who fail to uphold their obligation to prescribe controlled substances lawfully.” “Doctors are charged with protecting and healing us when we are sick and vulnerable. Instead of healing vulnerable members of our community, these doctors sought to profit off of their addictions,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “The U.S. Attorney’s Office’s Civil Division, in conjunction with our partners in the Consumer Protection Branch, sought immediate injunctive relief to prevent these doctors from prescribing to addicts and have now terminated their ability to ever put their patients at risk in this way again.” “Peña-Rodríguez and Mendez were distributing deadly controlled substances mix known as the ‘trinity’ outside the course of a legitimate medical need, simply to get rich,” said Special Agent in Charge Eduardo A. Chávez of the Drug Enforcement Administration (DEA) Dallas. “Following our successful criminal prosecution, we issued a trinity of ourselves through not just criminal penalties, but now civil and administrative ones as well. Standards for our medical professionals must stay high because patients deserve a doctor they can trust. We will continue to partner with the U.S. Attorney’s Office to seek all avenues of justice and accountability against all medical providers who violate their code of conduct.” The defendants agreed to consent judgments to settle the allegations in the complaint. The orders entered by the court permanently prohibit Pena Rodriguez and Mendez from ever again prescribing, dispensing, administering or distributing controlled substances. The orders also bar them from holding DEA registrations or working at, supervising or owning a medical practice where controlled substances are present. In a separate criminal action, Pena Rodriguez previously pleaded guilty to one count of conspiracy to unlawfully distribute controlled substances. Mendez was found guilty at a jury trial of one count of conspiracy to distribute a controlled substances and six counts of unlawful distribution of controlled substances. Mendez was sentenced to seven years in prison. Dr. Pena Rodriquez was sentenced to two years in prison. The DEA investigated the case. Assistant U.S. Attorney Sarah Delaney for the Northern District of Texas and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch prosecuted the case. The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial.


title: Bronx Man Convicted Of Robberies And Firearms Offense

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of JAMES KELLY for robbing two delis in the Bronx, New York, on October 10, 2021 and January 15, 2023, and brandishing a firearm in connection with the 2023 robbery. The jury convicted KELLY today following a four-day trial before U.S. District Judge Gregory H. Woods. U.S. Attorney Damian Williams said: “James Kelly used a firearm to intimidate and threaten the lives of working New Yorkers, all to steal money from their delis. Today, a unanimous jury of his peers held Kelly accountable for his crimes. We thank our law enforcement partners for their relentless pursuit of justice for the victims and the public." According to the allegations in the Indictment and the evidence presented during trial and court proceedings: On October 10, 2021, KELLY entered a deli in the Bronx with his hands in his pocket, purporting to have a gun. He got close to a deli employee working alone in the store, threatened to shoot him, and demanded cash and marijuana. After the deli employee gave KELLY cash, KELLY ordered the deli employee to get down on the ground and said that if the employee moved, he would “shoot the shit” out of the employee. Fifteen months later, on January 15, 2023, KELLY robbed another deli in the Bronx, pointed a gun at two deli employees, again demanded cash and threatened to shoot them, and again ordered them to get on the ground. * * * KELLY, 32, of the Bronx, New York, was convicted of two counts of Hobbs Act robbery, each of which carries a maximum sentence of 20 years in prison; and one count of the use, carrying, and possession of a firearm, which was brandished, which carries a mandatory minimum sentence of seven years in prison and a maximum sentence of life in prison. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge. KELLY is scheduled to be sentenced by Judge Woods on January 14, 2025. Mr. Williams praised the outstanding investigative work of the New York City Police Department’s Bronx Violent Crimes Squad and the investigators of the Office. This case is being supervised by the Office’s General Crimes Unit. Assistant U.S. Attorneys Connie L. Dang, Adam Z. Margulies, Georgia V. Kostopoulos, Katherine Cheng, and David R. Felton are in charge of the prosecution, with the assistance of Paralegal Specialist Olivia Sebade.


title: Two Former Arkansas Sheriff’s Deputies Sentenced to Prison for Federal Civil Rights Offences

component: USAO - Arkansas, Western

body_text: FORT SMITH - Two former Crawford County, Arkansas, sheriff’s deputies, have been sentenced to federal prison for federal civil rights offenses for using unlawful force on a man they arrested. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings, which took place in the United States District Court in Fort Smith. Today, Zackary King, age 28, was sentenced to 12 months, in federal prison followed by one year of supervised release for Deprivation of Rights Under Color of Law. On October 9, 2024, Levi White, age 33, was sentenced to 63 months, in federal prison followed by two years of supervised release for Deprivation of Rights Under Color of Law. According to court documents, White, King, and a third officer approached a man identified as R.W. in a gas station parking lot on August 21, 2022, during their investigation into a person threatening a store attendant. R.W. lunged at White and tackled him, then all three officers quickly subdued R.W. and pinned him to the ground. After R.W. was pinned to the ground and no longer fighting the officers, King kicked R.W. in the back and struck R.W. once in the midsection with his fist. At approximately the same time, White punched R.W. at least nine times in the head, then lifted R.W.’s head and slammed it into the pavement. The third officer did not strike R.W. R.W. suffered head injuries from the assault. U.S. Attorney Clay Fowlkes of the Western District of Arkansas made the announcement. The FBI Little Rock Field Office, Arkansas State Police, and ARKTrust Task Force investigated the case. Assistant U.S. Attorneys Dustin Roberts and Devon Still for the Western District of Arkansas and Special Litigation Counsel Michael J. Songer and Trial Attorney Lia Rettammel of the Civil Rights Division prosecuted the case. Related court documents may be found on the Public Access to Electronic Records website at www.pacer.gov.


title: Kern County Man Sentenced to 7 Years in Prison for Receiving Child Pornography

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Christopher Patterson, 43, of Bakersfield, was sentenced Wednesday to seven years in prison for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. According to court documents, between July 2018 and November 2018, Patterson used an SD card to knowingly receive more than 600 files containing visual depictions of children, some under the age of twelve, engaging in sexually explicit conduct. This case was the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.


title: Bakersfield Man Charged with Offenses Involving the Sexual Exploitation of Minors

body_text: FRESNO, Calif. — A federal grand jury returned an indictment against Rafael Omero Plata Guerrero, 34, of Bakersfield, today charging him with two counts of sexual exploitation of a minor and one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. According to court documents, between April 15, 2024, and Aug. 26, 2024, Guerrero produced visual depictions of two minors engaged in sexually explicit conduct. Using the internet and a laptop, Guerrero also received child pornography between June 1, 2024, and Aug. 27, 2024. This case is the product of an investigation by Homeland Security Investigations, the U.S. Secret Service, and the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case. If convicted, Guerrero faces a maximum statutory penalty of up to 30 years in prison, with a mandatory minimum of 15 years in prison, and up to a $250,000 fine for each count of sexual exploitation of a minor. If convicted of receipt of child pornography, Guerrero faces a maximum statutory penalty of up to 20 years in prison, with a mandatory minimum of five years in prison, and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.


title: Federal jury convicts retired DEA agent of conspiracy to defraud the United States and conspiracy to distribute controlled substances

component: USAO - New York, Western

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal jury has convicted retired Drug Enforcement Administration Special Agent Joseph Bongiovanni, 60, of Tonawanda, NY, of one count of conspiracy to defraud the United States, one count of conspiracy to distribute a controlled substance, four counts of obstruction of justice, and one count of false statement to law enforcement. The charges carry a maximum penalty of 20 year in prison and a $250,000 fine. “The prosecution of law enforcement officers and public officials are the most difficult cases that are undertaken by prosecutors,” stated U.S. Attorney Ross. “However, these verdicts show that no one is above the law, not even a federal agent.” FBI Special Agent-in-Charge Matthew Miraglia stated, “Federal agents hold a significant amount of authority and trust to keep American people safe. Therefore, when the FBI learns of allegations including bribery, obstruction of justice, and lying to investigators, a rigorous investigation unfolds. Our investigation, re-enforced by the jury’s verdict, found that former DEA agent Joseph Bongiovanni chose greed over integrity. The FBI continues to execute our duties to the highest level of ethical and moral values. We remain steadfast in aggressively investigating and bringing those who misuse their authority to justice.” “I want to commend the HSI special agents, our law enforcement partners, and the U.S. Attorney’s Office, for the tremendous work and countless hours expended to achieve a successful outcome in this case,” said Erin Keegan, HSI Buffalo Special-Agent-in Charge. “While Bongiovanni’s actions undermined and compromised law enforcement efforts throughout the area, his actions are not, in any way, a reflection of the thousands of DEA agents or law enforcement officers who serve this nation and community with honor and integrity.” Assistant U.S. Attorneys Joseph M. Tripi, Nicholas T Cooper, and Casey L. Chalbeck, who are handling the case, stated that between 1998 and February 1, 2019, Bongiovanni served as a Special Agent with the Drug Enforcement Administration. From 2001 until his retirement, he was assigned to the Buffalo Resident Office. Bongiovanni used his position as a DEA special agent to defraud the DEA, an agency that is a part of the Department of Justice and the Executive Branch of the United States government, by violating his oath to the United States Constitution and duty to enforce the drug laws of the United States. As a part of his agreement to defraud the United States in violation of his oath and duty, and as part of his agreement to accept bribes, Bongiovanni protected his friends, associates, and individuals he believed were members or associates of Italian Organized Crime in Buffalo, from investigation, arrest, and prosecution. In particular, Bongiovanni provided Michael Masecchia, a former Buffalo School teacher with connections to Italian Organized Crime, and others involved in the distribution of substantial quantities of marijuana, cocaine, and fentanyl pills, by providing law enforcement sensitive information about the existence of investigations, the identities of informants, and about sensitive law enforcement techniques and tactics. As part of his protection and in furtherance of his conspiracy to defraud the DEA, Bongiovanni opened a case file within the DEA, which he then used to obtain to ensure that other state and local law enforcement agencies, and federal agents, would defer the investigation of the individuals that the defendant was protecting to the defendant. Bongiovanni also used the DEA case file to enter information pertaining to drug traffickers he was protecting into deconfliction databases in order to alert himself if any other members of law enforcement were investigating coconspirators Bongiovanni was protecting. Relatedly, Bongiovanni was convicted of obstruction of justice and making materially false statements to an agent of the United States for preparing false and fraudulent official DEA memoranda, and making false statements to agents investigating Bongiovanni, to conceal his relationship with Peter Gerace Jr., an individual who was under investigation by the DEA, and others for drug trafficking and related offenses. Michael Masecchia was previously convicted and sentenced to serve seven years in prison. Peter Gerace Jr. is awaiting trial. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. The verdict is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Department of Justice Office of the Inspector General, under the direction of Special Agent-in-Charge Ryan T. Geach, Northeast Region. The Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarantino, III, New York Field Division, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge Bryan Miller, New York Field Division, the Erie County Sheriff’s Office, under the direction of Sheriff John Garcia, and the Niagara County Sheriff’s Office, under the direction of Sheriff Michael Filicetti also assisted in the investigation. Sentencing is scheduled for June 9, 2025, before Judge Lawrence J. Vilardo who presided over the trial of the case. # # # #


title: Dutch National Pleads Guilty to Money Laundering

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Xiomara Christian, age 37, of Amsterdam, The Netherlands, pled guilty today to conspiracy to commit money laundering. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. Christian admitted that from May 2017 to November 2018, she and a co-conspirator laundered drug proceeds from Europe and Australia through bank accounts in the Northern District of New York, intending to conceal the true source of the proceeds, and to make it appear as though the money was legally obtained through legitimate business transactions. On October 4, 2018, Christian delivered €101,950 ($114,816.09 USD) in drug proceeds to an undercover agent with the National Police of The Netherlands in The Netherlands. On October 5, 2018, an undercover agent with the Australian Criminal Intelligence Commission picked up $85,000 AUD ($57,843 USD) in drug proceeds from another co-conspirator in Melbourne, Australia. Christian then had the money wired through a bank account in Latham, New York, and sent to bank accounts in Panama. At sentencing, scheduled for February 19, 2025, Christian faces up to 20 years in prison and a fine of up to $500,000. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The DEA investigated this case. Assistant United States Attorney Douglas Collyer is prosecuting the case.


title: Marion Woman Charged with Wire Fraud

component: USAO - Iowa, Northern

body_text: Megan Middaugh, age 38, from Marion, Iowa, has been charged with five counts of wire fraud. The charges are contained in an Indictment filed today in United States District Court in Cedar Rapids. The Indictment alleges that, beginning in about January 2020, and continuing until June 2023, Middaugh devised a scheme to defraud and to obtain the funds of a dependent person. Middaugh used and misappropriated funds and assets from a dependent person’s bank accounts. Middaugh had access to the bank accounts as a conservator and trustee. She used the misappropriated funds for her own purposes and not for the benefit of the dependent person. This included the alleged use of approximately $52,000 for online games through the gaming platform, Skillz, Inc. The Indictment alleges five transfers of amounts between $100 and $500 to Skillz, Inc. between January 30, 2020, and January 22, 2021. If convicted on all charges, Middaugh faces a possible maximum sentence of 100 years’ imprisonment, a $1,250,000 fine, and three years of supervised release following any imprisonment. Middaugh’s first appearance in federal court in Cedar Rapids for arraignment is set for October 21, 2024. As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty. The case is being prosecuted by Assistant United States Attorney Kyndra Lundquist and was investigated by Marion Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24-CR-0089. Follow us on X @USAO_NDIA.


title: Licking County man sentenced to more than 4 years in prison for conspiracy crime involving videos of monkey torture & mutilation

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – A Licking County man was sentenced in U.S. District Court today to 54 months in prison for conspiring to create and distribute videos depicting acts of extreme violence and sexual abuse against monkeys. The sentence imposed by U.S. District Judge Edmund A. Sargus, Jr. is an upward variance from the sentencing guidelines in this case. Ronald P. Bedra, 42, of Etna, pleaded guilty in April to conspiring to create and distribute “animal crush” videos and to distributing the videos. According to court documents, Bedra conspired with others to create and distribute videos depicting acts of sadistic violence against baby and adult monkeys. The conspirators used encrypted chat applications to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin. The videos included depictions of monkeys having their digits and limbs severed and monkeys being forcibly sodomized with a heated screwdriver. “We will punish participants of sadistic conspiracies like this one no matter their role in the crime,” said U.S. Attorney Kenneth L. Parker of the Southern District of Ohio. “As this case shows, even if you do not commit the torture firsthand, you will be held accountable for promoting this obscene animal abuse.” “Defendant Ronald Bedra commissioned grotesque videos of torture of juvenile and baby monkeys,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Such appalling conduct has no place in our society. The Justice Department stands ready to prosecute individuals engaging in this activity to the fullest extent of the law.” “Today’s sentencing underscores the U.S. Fish and Wildlife Service’s unwavering commitment to combating the exploitation of wildlife in any form,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “These monstrous crimes are indefensible. This case serves as a stark reminder that those who harm animals protected under federal and international laws and treaties will face serious consequences. We continue to work diligently with our partners to identify and prosecute individuals engaged in these cruel activities to the fullest extent of the law.” The U.S. Fish and Wildlife Service, the FBI and HSI investigated the case. Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of the Environmental and Natural Resource Division’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case. # # #


title: Wagoner Resident Sentenced For Illegal Possession Of Explosive Devices And Machinegun

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Brock Lucas Shields, age 59, of Wagoner, Oklahoma, was sentenced to a term of three years’ probation for one count of Engaging in the Business of Manufacturing and Dealing in Explosive Materials without a License, and three years’ probation for one count of Illegal Possession of a Machinegun. The terms are set to be served concurrently, with the first six months to be served under house arrest. The charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. On November 9, 2023, Shields pleaded guilty to the charges. According to investigators, on December 16, 2022, ATF and TFO agents executed a federal search warrant on Shields’ Wagoner residence and discovered Shields in possession of 132 illegal flash powder explosive devices and raw materials for manufacturing devices. At the time of the search, Shields did not possess a federal explosives license to import, manufacture, or distribute explosive materials. Agents conducting the search also discovered two machine guns, one 7.62x39mm caliber firearm modified for full automatic firing with a single trigger pull, and one 5.56mm caliber firearm modified for full automatic firing with a single trigger pull. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Assistant U.S. Attorney Lewis Reagan represented the United States.


title: Jury Convicts Omaha Man for Selling Fentanyl that Resulted in the Death of a Four-Year Old

component: Drug Enforcement Administration (DEA)

body_text: United States Attorney Susan Lehr announced Michael Reis, age 29, of Omaha, Nebraska was convicted by a jury on October 9, 2024, in federal court in Omaha for distributing fentanyl that resulted in the death of 4-year-old. United States District Judge Brian C. Buescher presided over the trial. On March 12, 2022, Douglas County Sheriff’s Office (DCSO) Deputies were dispatched to the Aspen Grove apartment complex for an unresponsive 4-year-old. Upon arrival, deputies began CPR until an ambulance could take the child to Children’s Hospital and Medical Center. The child was later pronounced dead due to fentanyl toxicity. DCSO crime scene investigators, laboratory technicians, and fentanyl overdose investigators assisted in the investigation. Michael Reis was eventually identified as a person of interest. On March 27, 2022, Reis was arrested on an outstanding warrant. A search warrant was executed on Reis’s phone which detailed an extensive history of selling pills to the child’s mother. Messages found in Reis’s phone from March 12, 2022, showed that Reis delivered a pill to the child’s mother and that Reis received digital payment from her. In addition to the testimony by DCSO investigators, Dr. Robert Bowen and Dr. Suzanne Haney testified extensively on the child’s cause of death . Dr. Bowen is the Douglas County Coroner’s physician assistant (pathologist) and Dr. Haney is both the Medical Director of Project Harmony and Chief Physician of Child Abuse Pediatrics at Children’s and the University of Nebraska Medical Center. “I am immensely proud of the team efforts of our DCSO Deputies and our local and federal partners in law enforcement, as well as the U.S. Attorney’s Office, to bring justice to [this child],” said Douglas County Sheriff Aaron Hanson. “Fentanyl and fentanyl dealers are a true scourge in our community. Those who deal and recklessly possess fentanyl should know that there is no room for them in a safe civil society and that they will be pursued and prosecuted to the fullest extent of the law.” Sentencing is set for January 9, 2024. The penalties for distributing fentanyl resulting in death include a mandatory minimum term of imprisonment of 20 years. There is no maximum sentence. Michael Reis has a second federal case in which he pled guilty to sex trafficking of a minor. Sentencing for that matter is set for December 5, 2024. The penalties for sex trafficking a minor include a mandatory minimum term of imprisonment of 10 years. The maximum sentence is life. This case was investigated by the Douglas County Sheriff’s Office and the Drug Enforcement Administration.


title: Former Postal Service Employee Sentenced for Stealing Money and Gift Cards from the Mail

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS—Justin Crain, 29, of Indianapolis, has been convicted of a felony and sentenced to 180 days of home detention, followed by three years of probation, 40 hours of community service, and a $5,000 fine after pleading guilty to mail theft by a U.S. Postal Service employee. According to court documents, Justin Crain was employed as a U.S. Postal Service Mail Processing Clerk at its Indianapolis Processing and Distribution Center. The Postal Service’s Office of Inspector General began an investigation after it identified numerous mail items that passed through the Indianapolis processing center and had been opened before being delivered to their intended recipients. Video surveillance captured Crain opening numerous greeting cards and removing cash and gift cards from inside. Over the course of just two hours, Crain was seen dozens of times rifling through mail items attempting to find cash. Crain was interviewed by investigators and admitted to stealing approximately $5,000 over the course of a few months. “The vast majority of Postal employees are dedicated to their important mission and serve the public admirably, delivering people’s private, important, and sensitive items,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The defendant was sworn and entrusted to protect the public’s mail, and instead abused his position to steal gifts meant to celebrate birthdays, holidays, and special events. Public service is a public trust, and government employees who use their positions to steal from the public will be identified and held accountable.” The U.S. Postal Service Office of Inspector General investigated this case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. U.S. Attorney Myers thanked Assistant U.S. Attorney Meredith Wood, who prosecuted this case. ###


title: North Carolina Physician and Medical Practice Agree to Pay $625,000 to Settle Kickback Allegations

body_text: Dr. Eric Troyer, of Landis, North Carolina, and his medical practice, Troyer Medical Inc. P.C. (TMI), have agreed to pay $429,254 to the United States to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. Troyer and TMI will pay an additional $195,746 to the State of North Carolina, which jointly funded claims paid by the North Carolina Medicaid program. Troyer and his practice have agreed to cooperate with the Justice Department’s investigations of other participants in the alleged schemes. “Kickbacks to healthcare providers can undermine the integrity of taxpayer-funded healthcare programs and medical decision making,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who pay or receive illegal financial inducements, including unlawful inducements for laboratory testing.” The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, TRICARE and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. The settlement announced today resolves allegations that, from August 2015 to November 2021, Troyer and his medical practice received kickbacks from a laboratory in Anderson, South Carolina, in return for Troyer’s referrals to that laboratory. According to the settlement, the kickbacks to Troyer and his medical practice allegedly were disguised as payments for purported phlebotomy services, rental of office space and the lease of a chemistry analyzer machine and resulted in the submission of false or fraudulent laboratory testing claims to Medicare, Medicaid and TRICARE in violation of the False Claims Act. “Patients should be able trust that their healthcare provider’s recommendations are for their well-being and not for the provider’s financial gain,” said U.S. Attorney Adair Ford Boroughs for the District of South Carolina. “We will continue to hold accountable those who undermine the integrity of the healthcare system by giving or receiving kickbacks.” “This resolution demonstrates the FBI’s dedication to addressing violations that undermine the public's trust in our healthcare systems,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “The FBI, along with our law enforcement and regulatory partners, remains committed to ensuring healthcare professionals provide transparent and ethical standards of service.” “Kickback arrangements aimed at improperly influencing medical decisions will remain a top investigative priority for our agency,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our ongoing enforcement efforts in this area are focused on protecting the integrity of taxpayer-funded healthcare programs like Medicare and Medicaid, and preventing schemes that could improperly manipulate the healthcare decisions of patients and their doctors.” “Improper financial relationships between physicians and laboratories undermine patient healthcare and trust,” said Special Agent in Charge Christopher Dillard of Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “Kickbacks should never be a consideration in a medical practice selecting a company for laboratory testing. DCIS will continue to bring to justice medical providers who illegally enrich themselves at the expense of the American taxpayer and wellbeing of our Warfighters.” The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, FBI and the Medicaid Investigations Division of the North Carolina Attorney General’s Office. Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina handled the case. The United States previously resolved allegations that other physicians in South Carolina , North Carolina and Texas received kickbacks from the same laboratory. The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 1-800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only. There has been no determination of liability.


title: Mastermind of Multimillion-Dollar Penny-Stock Scam Indicted for Fraud and Obstruction

component: Criminal Division

body_text: A federal grand jury in the District of Columbia returned an indictment yesterday charging a Michigan man with defrauding investors in Minerco Inc. (stock ticker MINE) — leading to millions of dollars in investor losses — as well as obstructing a Securities and Exchange Commission (SEC) proceeding by destroying evidence. According to the indictment, Bobby Shumake Japhia (Shumake), 56, also known as Robert Samuel Shumake Jr., Robert Japhia, and Shaman Bobby Shu, of Michigan, allegedly ran Minerco’s day-to-day operations and organized a scheme to defraud investors in the publicly traded securities of Minerco by, among other things, making or causing to be made materially false and misleading statements to the public, including in press releases, in an effort to artificially inflate the share price of, and demand for, Minerco stock. Beginning in or around January 2020, Minerco purported publicly to be in the business of developing, marketing, and distributing psilocybin mushrooms, also known as magic mushrooms or psychedelic mushrooms. As alleged in the indictment, Shumake concealed his role with Minerco, even though he controlled all aspects of Minerco, by recruiting another individual, Julius Jenge, to serve as the nominal chief executive officer of Minerco because Shumake had a criminal history and negative news articles about Shumake were available on the internet. To further conceal the scheme, Shumake allegedly made materially false and misleading statements to investigators from the Financial Industry Regulatory Authority who were investigating Minerco. Shumake allegedly used an alias to promote Minerco on an investor message board and provided the false and misleading impression that he was not affiliated with Minerco and was an independent investor. Shumake also allegedly recruited others to promote Minerco on internet message boards to further create the false and misleading impression that the public had a favorable view of Minerco. Shumake allegedly sold nearly one billion shares of Minerco that he covertly acquired and then caused himself or entities under his control to receive at least $2.5 million from the sale of the shares. Shumake’s scheme to defraud allegedly caused the share price of, and demand for, Minerco’s securities to artificially increase, ultimately resulting in Minerco investors’ losing millions of dollars. After learning of an SEC investigation into Minerco, Shumake allegedly obstructed the SEC proceedings by deleting the contents of at least one Minerco email account, which Shumake used to conduct Minerco business. Shumake is charged with one count of securities fraud and one count of obstruction. If convicted, he faces a maximum penalty of 20 years in prison on each count. The chief executive officer of Minerco, Julius Jenge, was arrested earlier this year on charges of securities fraud related to a scheme to defraud investors in Minerco. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; SEC Inspector General Deborah Jeffrey; and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement. The SEC Office of Inspector General and USPIS are investigating the case. Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case. If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov . You are also encouraged to visit the webpage for this case at www.justice.gov/criminal/case/united-states-v-bobby-shumake-japhia . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Large-Scale Meth Trafficker Sentenced to 25 Years in Prison

body_text: ATHENS, Ga. – A large-scale methamphetamine trafficker was sentenced to serve 25 years in prison resulting from an investigation into fentanyl and methamphetamine distribution in the Middle District of Georgia. Victor Uriel Diego Estrada, 31, of Michoacan, Mexico, was sentenced to serve 300 months in prison to be followed by five years of supervised release by U.S. District Judge Tilman E. “Tripp” Self, III on Oct. 7 after he previously pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession of methamphetamine with intent to distribute on Dec. 12, 2023. There is no parole in the federal system. “Victor Estrada produced and distributed a massive amount of methamphetamine and deadly quantities of a potentially lethal fentanyl mixture,” said U.S. Attorney Peter D. Leary. “Alongside our law enforcement partners, we remain focused on disrupting dangerous criminal activity and holding those offenders accountable to make our communities safer and stronger.” “The investigation and subsequent conviction of this drug dealer demonstrates the DEA’s commitment to fight the drug cartels who have no regard for the citizens of our community,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division. According to court documents and statements referenced in court, the DEA began investigating Estrada’s illegal drug activity in Walton County, Georgia, after developing information from a confidential source (CS) who had ties to a Mexico-based narcotics broker with access to sources of supply of cocaine and methamphetamine in north Georgia. Under surveillance, the CS purchased one kilogram of methamphetamine from Estrada on Nov. 8, 2023, at a location in Norcross, Georgia. Afterward, authorities observed Estrada visit three separate Walmart stores to purchase hard chest coolers, commonly used in clandestine methamphetamine laboratories during and after the acetone drying process. DEA searched Estrada’s Walton County home on Nov. 14, 2023. Agents found 21 individual packages of methamphetamine, vacuum-sealed bags, digital scales and other equipment commonly used in the process of converting liquid methamphetamine into a crystal or solid form. Additionally, agents located two cell phones in the residence. The packages held 21,087.5 grams of methamphetamine with a 99% purity. A search warrant executed on Estrada’s cell phones revealed a conversation with a person named “SINSO” which discussed converting liquid methamphetamine into crystal methamphetamine for the purpose of distribution. Agents also found information about other methamphetamine conversation lab locations tied to Estrada and subsequently executed a search warrant at a home in Forest Park, Georgia. Agents found approximately 180 kilograms of crystal methamphetamine and a quantity of liquid methamphetamine. Additionally, four kilograms of a cocaine and fentanyl mixture was found in a cooler completely buried underground by the backdoor of the residence. Agents located equipment commonly used in methamphetamine conversion laboratories, including propane burners, fuel, strainers and protective masks. A loaded 9mm handgun with a spare 9mm magazine was found in a bedroom. The case was investigated by the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Mike Morrison prosecuted the case for the Government.


title: Justice Department Obtains Injunction to Prevent California Company from Manufacturing and Distributing Adulterated Food Following Listeria Outbreak

body_text: A federal court yesterday enjoined a California company from manufacturing and distributing adulterated food products following a listeria outbreak linked to multiple hospitalizations and two deaths. In a civil complaint filed on Sept. 27 in the U.S. District Court for the Eastern District of California, the United States alleged that Rizo Lopez Foods Inc., along with its president, chief executive officer and co-owner, Edwin Rizo, and its chief financial officer, secretary and co-owner Tomas Rizo, violated the Federal Food, Drug and Cosmetic Act (FDCA) at the company’s facility in Modesto, California, by manufacturing and distributing adulterated food products. Rizo Lopez Foods produced cotija cheese and other cheeses, yogurt, sour cream and other foods sold under the brand names Tio Francisco, Don Francisco, Rizo Bros, Rio Grande, Food City, El Huache, La Ordena, San Carlos, Campesino, Santa Maria, Dos Ranchitos, Casa Cardenas and 365 Whole Foods Market. The complaint further alleged that, in January, Hawaiian state health officials detected Listeria monocytogenes (L. mono), the bacterial pathogen that can cause listeriosis, in cheese made by the defendants. The government further alleged that during a subsequent inspection of the defendant’s facility, the Food and Drug Administration (FDA) found L. mono in two locations as well as various insanitary conditions. The complaint alleged that a genetic analysis matched the L. mono strain collected in Hawaii to the strain from defendants’ facility, as well as to L. mono samples from patients sickened as early as 2014 during a years-long listeriosis outbreak. An investigation by the Centers for Disease Control identified 26 cases of listeriosis in 11 states linked to the same L. mono strain. The CDC reported that 23 individuals were hospitalized as a result of the outbreak, including two patients who died. In February, Rizo Lopez recalled all cheese and dairy products produced at their facility. “Food manufacturers have an important responsibility to ensure the safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department and FDA will continue to work closely on enforcement actions against food manufacturers who fail to meet their obligations and put the health of their customers at risk.” “Food producers in the Eastern District of California feed the nation,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “Our office is committed to assuring compliance with the FDCA throughout the District.” The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The injunction entered by the court permanently enjoins the defendants from violating the FDCA. As part of the settlement, the defendants represented that they have discontinued all operations related to preparing and processing food. Under the permanent injunction, the defendants must notify FDA in advance of resuming such operations, comply with specific remedial measures set forth in the injunction and allow FDA to inspect their facility, including the buildings, sanitation-related systems, equipment, utensils, all articles of food and relevant records. Trial Attorney David G. Crockett Jr. and Senior Trial Attorney James Nelson of the Justice Department’s Civil Division prosecuted this case, with assistance from Assistant Chief Counsel for Enforcement Lauren Fash of the FDA’s Office of Chief Counsel. Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch . The claims resolved by the consent decree announced today are allegations only. There has been no determination of liability. Consent Decree


title: Bob Dean Jr. and Affiliated Corporate Entities Agree to $8.2M Consent Judgment to Resolve Allegations of Financial Misconduct Stemming from Evacuation of Nursing Homes During Hurricane Ida

component: USAO - Louisiana, Middle

body_text: Bob Dean Jr. and several companies that he owned and operated have agreed to an $8.2 million consent judgment to resolve allegations that they violated the National Housing Act of 1934 (NHA), by misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA), are Maison De’Ville Nursing Home in Houma; Maison De’Ville Nursing Home in Harvey; Maison Orleans Healthcare in New Orleans; and West Jefferson Health Care Center in Harvey. The FHA, part of the Department of Housing and Urban Development (HUD), provides mortgage insurance on loans that cover residential care facilities, such as nursing homes, pursuant to the NHA. To encourage lenders to make loans to such facilities, FHA mortgage insurance provides lenders with protection against losses that result from borrowers defaulting on their mortgage loans. To obtain such FHA-insured loans, loan recipients must enter into regulatory agreements with the FHA that provide, among other requirements, that the assets and income of an FHA-insured nursing home may only be spent on goods and services that are reasonable and necessary to the operation of the nursing home. The NHA permits the United States to recover twice the amount of any assets and income of FHA-insured nursing homes that were improperly distributed or misspent. In 2023, the government filed a complaint against Dean and his corporate entities alleging that they misspent the nursing homes’ assets and income. The United States alleged that in the five years leading up to Hurricane Ida, Dean funneled money that should have been used to prepare an evacuation site for nursing home residents to his personal bank accounts, leaving his nursing homes — and, more importantly, the nursing homes’ residents — unprepared for a hurricane. As a result, when Hurricane Ida made landfall in August 2021, the residents of Dean’s nursing homes had to ride out the storm in an overcrowded and ill-prepared industrial warehouse Dean owned through a corporate entity. The United States alleged that at Dean’s evacuation center, his nursing homes’ residents languished in squalor and did not receive adequate care, leading to the Louisiana Department of Health evacuating the nursing home residents from Dean’s warehouse and revoking Dean’s nursing homes’ licenses. The United States further alleged that, following the hurricane, Dean did not use the homes’ income and assets solely to operate or maintain the nursing homes, but instead to purchase personal goods and services, including antiques, firearms and cars. “This settlement demonstrates the department’s continuing commitment to holding accountable those who put their own financial gain over the needs of our nation’s seniors,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to take action to protect the integrity of federal programs designed to ensure that nursing home residents, who are among our most vulnerable citizens, receive appropriate care.” “As the residents of Louisiana well know, hurricanes and natural disasters can devastate people’s lives,” said U.S. Attorney Ronald C. Gathe Jr for the Middle District of Louisiana. “Nursing home operators like Mr. Dean have an obligation to protect their residents during such events, particularly if they are going to rely on federal programs to support or sustain their businesses. This settlement will ensure that those individuals charged with caring for our community’s most vulnerable residents take seriously their duty to have proper safeguards and plans in place to avoid tragedies like the one we saw in Independence, Louisiana, after Hurricane Ida . ” “Nursing home providers have obligations to protect the health, safety, and welfare of residents entrusted to their care,” said HUD General Counsel Damon Smith. “Owners of FHA-insured nursing homes should be on notice that we will hold them accountable when we learn of allegations that they have failed to meet those obligations.” “By the time Hurricane Ida bore down on the vulnerable nursing home residents at properties operated by Mr. Dean, he illegally skimmed funding from those facilities and failed to maintain sanitation and adequately equip the warehouse he designated as the evacuation site,” said HUD Inspector General Rae Oliver Davis. “He unfairly enriched himself while residents under his charge endured horrid conditions including insufficient food and medical care. HUD OIG will continue to work with our law enforcement and prosecutorial partners to hold accountable those who misappropriate funds at the expense of vulnerable populations.” The Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Louisiana handled the case, with substantial assistance from HUD and HUD’s Office of Inspector General. Trial Attorneys Christopher Reimer and Samuel Robins of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Davis Rhorer Jr. and Chase Zachary for the Middle District of Louisiana handled the matter. The United States’ complaint stemmed from an investigation that the Justice Department initiated as part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement and other elder justice professionals to combat elder abuse, neglect and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at www.justice.gov/elderjustice . The claims settled by this agreement are allegations only. There has been no determination of liability.


title: Rocheport Husband, Wife Indicted for Producing Child Pornography

component: USAO - Missouri, Western

body_text: JEFFERSON CITY, Mo. – A Rocheport, Mo., couple was indicted by a federal grand jury for victimizing three children to produce child pornography. Jeremy James Cudney, 34, and his wife, Cassandra Elaine Cudney, 34, were charged in an eight-count indictment returned by a federal grand jury in Jefferson City, Mo. The indictment alleges that Jeremy and Cassandra Cudney participated in a conspiracy to produce child pornography from August 25, 2019, to April 25, 2022. They are also charged together in three counts of producing child pornography involving two child victims, one of whom was under the age of 12 and two of whom were under the age of 16. In addition, Jeremy Cudney is charged with one count of distributing child pornography and one count of possessing child pornography. Cassandra Cudney is also charged with one count of distributing child pornography and one count of possessing child pornography. The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Melissa A. Pierce and Assistant U.S. Attorney Ashley S. Turner. It was investigated by Homeland Security Investigations, Missouri State Technical Assistance Team, and the Howard County, Mo., Sheriff’s Department. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."