title: Leader of International Drug Trafficking Group’s Chicago Operations Sentenced to 16 Years in Federal Prison

component: Drug Enforcement Administration (DEA)

body_text: CHICAGO — The leader of an international drug trafficking group’s Chicago operations has been sentenced to 16 years in federal prison. ANTONIO CARRAZCO-MARTINEZ ran the Chicago operations of a Mexico-based drug trafficking organization allegedly led by PABLO ANIBAL VAZQUEZ-DUARTE. In 2016 and 2017, Carrazco-Martinez conspired with members of the organization to traffic cocaine and heroin from Mexico to the Chicago area. Carrazco-Martinez was responsible for receiving large amounts of drugs, maintaining a stash house, distributing the drugs to the group’s customers, and sending illicit cash proceeds back to Mexico. A federal jury in Chicago last year convicted Carrazco-Martinez, 43, of Fort Valley, Ga., on drug trafficking charges. U.S. District Judge Sharon Johnson Coleman imposed the 16-year sentence on Thursday during a hearing in federal court in Chicago. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Substantial assistance was provided by the Chicago Police Department, Illinois State Police, Waukegan, Ill. Police Department, Homeland Security Investigations, and IRS Criminal Investigation. The government was represented by Assistant U.S. Attorneys Andrew Erskine, Alejandro Ortega, and Kirsten Moran. The case is part of an Organized Crime Drug Enforcement Task Forces investigation. OCDETF identifies, disrupts, and dismantles drug traffickers and other criminal offenders that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement against criminal networks. Carrazco-Martinez is one of nine defendants convicted as part of the investigation. Three other defendants, including Vazquez-Duarte, are considered fugitives and believed to be residing in Mexico.


title: Court Sentences Texas Mother to 60 Months Imprisonment for Trafficking Methamphetamine

component: USAO - Alabama, Southern

body_text: MOBILE, AL – United States District Court Judge, Jeffrey U. Beaverstock sentenced Zolia Rosa Zuniga of Texas to 60 months imprisonment for her part in a methamphetamine distribution conspiracy. Documents filed with the court and evidence introduced in court established that on January 5, 2021, a Baldwin County Sheriff's Office's Special Operations Unit Task Force Officer (TFO) stopped Zuniga on Interstate 10 for travelling too closely behind another vehicle. Due to a number of suspicious circumstances during the stop the TFO deployed his canine named “Darlin” to sniff the outside of the vehicle and the canine alerted to the odor of narcotics emanating from the vehicle. After the canine alert law enforcement searched the vehicle and found approximately 32 pounds of methamphetamine secreted behind the speakers in the vehicle. Zuniga later admitted to law enforcement that she knowingly agreed to transport the drugs for an individual from Mexico that had agreed to pay her $10,000 for her courier services. Zuniga further admitted she was driving from Texas to the Tampa, Florida area with the drugs when she was stopped in Baldwin County. Zuniga is the mother of two minor children. The case was investigated by the Drug Enforcement Administration and the Baldwin County Sheriff's Office. The case was prosecuted by Assistant United States Attorney George F. May.


title: U.S. Attorney Dena J. King Urges The Public To Beware Of Scams And Price Gouging In The Aftermath Of Hurricane Helene

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Dena J. King, U.S. Attorney for the Western District of North Carolina, is reminding the public to beware of emerging scams and price gouging in the aftermath of Hurricane Helene, and to report suspected fraud and price gouging to the National Center for Disaster Fraud (NCDF) hotline at 1-866-720-5721, or online at www.justice.gov/DisasterComplaintForm . “It is unfathomable that scammers will try to profit from the devastation caused by a natural disaster, but fraudsters will stop at nothing to fill their pockets,” said U.S. Attorney King. “I urge the public to be extra vigilant about potential scams related to Hurricane Helene, and to report suspected fraud and price gouging to the National Center for Disaster Fraud hotline at 1-866-720-5721, or online at www.justice.gov/DisasterComplaintForm . Reporting scams and price gouging will help law enforcement identify, investigate, and prosecute those who are attempting to exploit the devastation caused by Hurricane Helene for their benefit, and warn others about emerging disaster fraud schemes.” Possible types of natural disaster scams include: Fraudulent charities soliciting donations for disaster victims that often mimic the names of well-known organizations or appearing linked to the disaster. Scammers impersonating government officials, offering disaster relief in exchange for personal information or money. Fraudsters posing as insurance representatives to collect payments or personal data. Scammers promoting non-existent businesses or investment opportunities related to disaster recovery, such as rebuilding or flood-proofing. Fraudsters promising expedient home repairs requiring upfront payment or down payment. Price gouging for essential goods and services needed by disaster victims. Theft from evacuated homes and businesses during or after the disaster. How to protect yourself from disaster fraud scams: Donate only to well-known charities after verifying them through trusted sources. Do not respond to unsolicited requests for donations via email, phone, or text, and do not click on links in unsolicited messages. Do not assume that online or social media charity solicitations are legitimate. Verify first! Use credit cards or checks for donations, instead of sending cash, via wire transfers, or via peer-to-peer mobile payment apps. Always keep in mind that government agencies and legitimate organizations will not ask for money or personal information via phone or email. When in doubt, contact the agency directly using a verified phone number or website. For storm related repairs, hire contractors that are reputable and always verify references. Beware of contractors who knock on your door or make unsolicited contact, and/or make promises that are too good to be true. Avoid making a large down payment or paying in full before the repairs are finished. To report disaster-related fraud, contact the NCDF at (866) 720-5721, or online at www.justice.gov/DisasterComplaintForm .


title: Federal Charges Announced Against Inmates for Violent Crimes Committed in the Metropolitan Detention Center in Brooklyn

component: USAO - New York, Eastern

body_text: Today in Brooklyn, the United States Attorney’s Office for the Eastern District of New York announced charges in five cases addressing violence at New York City’s federal pretrial detention facility, the Metropolitan Detention Center (MDC-Brooklyn), located in Sunset Park, Brooklyn. These include charges against inmates for the murder of Uriel Whyte on June 7, 2024, the murder of Edwin Cordero on July 17, 2024, an attempted murder on April 27, 2024 and two violent assaults on August 24 and 27, 2024. The defendants, all of whom were previously ordered detained at MDC-Brooklyn on other charges, will be arraigned in the coming days. Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, United States Deputy Attorney General and James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges. “Violence will not be tolerated in our federal jails.” stated United States Attorney Peace. “As alleged, in June and July of this year, two men detained at MDC-Brooklyn—Uriel Whyte and Edwin Cordero—were murdered by fellow inmates using makeshift weapons. Others at MDC-Brooklyn have been viciously assaulted by inmates, as alleged in the three other cases announced today. As the only federal pretrial facility in New York City, MDC-Brooklyn houses pretrial inmates accused of some of the most serious crimes in our region. No matter the reason for their detention, my Office will work tirelessly to vindicate the rights of victims who suffer violence within MDC-Brooklyn and prosecute to the fullest extent of the law those who choose to commit such heinous acts. Let these charges serve as a warning to those who would engage in criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be exposed, and you will be held accountable.” Mr. Peace thanked the United States Attorney’s Office for the Southern District of New York, the United States Attorney’s Office for the Eastern District of Pennsylvania and the U.S. Bureau of Prisons for their assistance with the investigations. “Today’s charges demonstrate the Justice Department’s commitment to rooting out violence and criminal behavior at federal detention facilities—a critical component of our work to improve conditions across the Federal Bureau of Prisons,” stated Deputy Attorney General Monaco. “Violence and contraband in our prisons are unacceptable, and the Department will hold accountable those who threaten the safety of anyone in our custody.” “Several inmates of Brooklyn’s Metropolitan Detention Center allegedly orchestrated a series of distinct violent assaults, including the murders of fellow inmates, Uriel Whyte and Edwin Cordero. While this federal jail houses dangerous pretrial inmates, order and safety must remain paramount. Awaiting potential criminal charges is not a warranted justification to subject a detained individual to unnecessary attacks. May today’s indictments reflect the FBI’s determination to apprehend violent criminals, regardless of where the incidents may occur,” stated FBI Assistant Director in Charge Dennehy. United States v. Andrew Simpson and Devone Thomas , 24-CR-360 (EK) The defendants Andrew Simpson and Devone Thomas, who were previously detained at MDC-Brooklyn on racketeering and robbery charges, respectively, have been indicted by a grand jury for their roles in the June 7, 2024 murder of inmate Uriel Whyte. On the morning of June 7, 2024, following a verbal dispute between Simpson and Whyte, cellmates Simpson and Thomas armed themselves with makeshift weapons and proceeded to engage in a series of two-on-one attacks against Whyte. The escalating violent attacks, which took place over a span of approximately 15 minutes, were committed against Whyte inside Simpson and Thomas’s shared cell, which served to hide their conduct from guards and surveillance cameras. The attacks culminated with Whyte suffering a severe stab wound to his neck, which severed his carotid artery. While Whyte was able to exit the cell and seek medical aid, he succumbed to his wounds shortly thereafter despite the efforts of onsite medical personnel and responding paramedics. Simpson and Thomas are charged with murder in a federal detention facility, assault in a federal detention facility, obstruction of justice and possession of contraband in prison for their roles in fatally stabbing Whyte at MDC-Brooklyn. If convicted, Simpson and Thomas face mandatory sentences of life in prison. The government’s case against Simpson and Thomas is being handled by the Office’s Organized Crime and Gangs and General Crimes Sections. Assistant United States Attorneys Michael Maffei, Sophia Suarez and Elizabeth D’Antonio are in charge of the prosecution. United States v. Jamaul Aziz, James Bazemore and Alberto Santiago , 24-CR-380 (NCM) The defendants Jamaul Aziz, also known as “bugz,” James Bazemore, also known as “TJ” and “RS,” and Alberto Santiago, also known as “Kom” and “dotcom,” have been indicted by a grand jury for their roles in the July 17, 2024 murder of Edwin Cordero, a fellow inmate at MDC-Brooklyn. Aziz and Santiago were both previously detained at MDC-Brooklyn for various serious gun and drug-trafficking crimes; Bazemore was detained for racketeering conspiracy, murder in-aid-of racketeering, use of a firearm resulting in death and being a felon in possession of a firearm. All three have admitted their guilt or been found guilty in their underlying cases. In the afternoon of July 17, 2024—following an earlier altercation between Cordero and Santiago—Santiago, Aziz and Bazemore met with each other intermittently over approximately half an hour. Cordero then reengaged with Santiago—both of them armed with makeshift weapons—when shortly after Aziz and Bazemore, also armed, joined in. Aziz, Bazemore and Santiago cornered Cordero while swinging and stabbing at him. After Cordero was able to escape, Bazemore continued to attack him, which allowed Santiago to approach Cordero from behind and stab him in the center of his chest, perforating various parts of his heart. Cordero then staggered forward, and Bazemore stabbed him in the back. Aziz and Bazemore next cornered the victim again next to a table and repeatedly stabbed, struck and kicked him, including after he fell to the ground and tried to shield himself with the table. Staff members quickly responded to the commotion and delivered emergency medical care but were unable to save the victim. The indictment charges Aziz, Bazemore and Santiago with premeditated murder within a federal detention facility, conspiracy to commit murder within a federal detention facility, assault resulting in serious bodily injury within a federal detention facility and possession of one or more objects designed to be used as weapons within a prison. If convicted, the defendants face mandatory sentences of life in prison. The government’s case against Aziz, Bazemore and Santiago is being handled by the Office’s Organized Crime and Gangs and General Crimes Sections. Assistant United States Attorneys Irisa Chen and Elizabeth D’Antonio are in charge of the prosecution. United States v. Luis Rivas , 24-CR-390 (OEM) The defendant Luis Rivas has been indicted by a grand jury with attempted murder in a federal detention facility, assault in a federal detention facility and possession of contraband in prison, for his role in the April 27, 2024 assault of another inmate at MDC-Brooklyn. At the time of the attack, Rivas was detained at MDC-Brooklyn after being convicted of racketeering and assault in-aid-of-racketeering charges related to his membership in the gang La Mara Salvatrucha (MS-13). On the morning of April 27, 2024, Rivas and two other MS-13 members brutally attacked another inmate in their housing unit. Prior to the attack, the victim was sitting peacefully, relaxing with his feet up. Rivas then approached the victim, took a makeshift weapon from his waistband, and stabbed the victim with it. Two other MS-13 members then came to Rivas’ aid and assisted him in punching and stabbing the victim repeatedly. After the assault, the victim was taken to MDC- Brooklyn’s medical unit and then to a hospital to treat the approximately 44 stab wounds to his back, chest, abdomen, right arm and legs. If convicted, Rivas faces up to 45 years in prison. The government’s case against Rivas is being handled by the Office’s General Crimes Section. Assistant United States Attorney Sean M. Sherman is in charge of the prosecution. United States v. Bruce Silva and Hassan Elliott , 24-MJ-556 (MMH) The defendants Bruce Silva and Hassan Elliott have been charged by complaint with assault in a federal detention facility for their roles in the August 27, 2024 assault of another inmate at MDC-Brooklyn. At the time of the attack, Silva was detained at MDC-Brooklyn in connection with pending charges including racketeering conspiracy, narcotics conspiracy, firearms charges, attempted murder and assault in-aid-of racketeering in connection with his participation in multiple shootings in the Bronx, and other crimes related to his membership in “Dub City,” a street gang based in the Bronx. Elliott was detained at MDC-Brooklyn at the time of the attack in connection with 29 pending charges related to his membership in “1700 Scattergood,” a violent drug trafficking organization operating in Northeast Philadelphia, including the murder in-aid-of racketeering of a Philadelphia police sergeant (who was seeking to execute search and arrest warrants for Elliott at the time of his murder), racketeering conspiracy, three other murders in-aid-of racketeering, multiple charges related to multiple other shootings and related firearms and narcotics offenses. On the morning of August 27, 2024, Silva and Elliott tried to attack another inmate in their housing unit. They took makeshift weapons from their waistbands and tried to stab and slash their intended victim. When a fourth inmate interceded, Silva stabbed the fourth inmate in the spine with a makeshift icepick, leaving the icepick protruding from the inmate’s back. Silva and Elliott then continued to try to attack both the stabbing victim and their original intended victim. After the assault, the stabbing victim was taken to MDC-Brooklyn’s medical unit and then to a hospital to remove the weapon from his spine and treat him. If convicted, Silva and Elliott each face up to 10 years in prison. The government’s case against Silva and Elliott is being handled by the Office’s General Crimes Section. Assistant United States Attorney Amanda Shami is in charge of the prosecution. United States v. Leury Mojica , 24-MJ-559 (MMH) Defendant Leury Mojica was charged by complaint with assaulting a federal officer. As alleged in the complaint, on August 24, 2024, Mojica punched a corrections officer in the face after the victim offered Mojica breakfast. Mojica was originally detained at MDC-Brooklyn in connection with a Hobbs Act robbery charge, and also previously participated in a violent stabbing of another inmate, which conduct was taken into account in his May 2024 sentencing in the Southern District of New York. If convicted, Mojica faces up to 20 years in prison. The government’s case against Mojica is being handled by the Office’s General Crimes Section. Assistant United States Attorney David Berman is in charge of the prosecution. The charges in all of the indictments and complaints are allegations, and the defendants are presumed innocent unless and until proven guilty. The Defendants : ANDREW SIMPSON Age: 26 Brooklyn, New York DEVONE THOMAS Age: 24 Queens, New York E.D.N.Y. Docket No. 24-CR-360 (EK) -------------- JAMAUL AZIZ Age: 44 New York, New York JAMES BAZEMORE Age: 42 Bronx, New York ALBERTO SANTIAGO Age: 28 Queens, New York E.D.N.Y. Docket No. 24-CR-380 (NCM) ---------------- LUIS RIVAS Age: 29 Jamaica, New York E.D.N.Y. Docket No. 24-CR-390 (OEM) ---------------- BRUCE SILVA Age: 28 Bronx, New York HASSAN ELLIOTT Age: 26 Philadelphia, Pennsylvania E.D.N.Y. Docket No. 24-MJ-556 (MMH) ---------------- LEURY MOJICA Age: 21 Bronx, New York E.D.N.Y. Docket No. 24-MJ-559 (MMH)


title: United States Obtains Consent Decree Against Rose Demolition & Carting For Violating Lead Paint Safety Regulations

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator of Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States filed a civil lawsuit against ROSE DEMOLITION & CARTING INC. (“ROSE”), alleging violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”), and simultaneously entered into a Consent Decree resolving that lawsuit. The Consent Decree includes a $100,000 civil penalty and requires ROSE to take steps to mitigate potential harms caused by its conduct. A link to the Consent Decree is here . U.S. Attorney Damian Williams said: “Rose’s failure to contain actual or potential lead dust in the course of demolition work threatened to expose people, including children, to lead poisoning in communities that already suffer disproportionately from public health and environmental hazards. Through this lawsuit and consent decree, we are holding Rose accountable for its misconduct and preventing future violations.” EPA Regional Administrator Lisa F. Garcia stated: “This settlement underscores the importance of following the laws designed to protect communities, especially young children, from lead paint hazards. Under the Renovation, Repair, and Painting Rule, work must be conducted by certified firms and individuals who are properly trained and equipped to handle toxic lead paint that could pose a serious threat to families and workers.” TSCA and the RRP Rule impose safety requirements to minimize the risk that young children, tenants, and renovation workers are exposed to toxic lead dust during renovations of residential buildings. Exposure to lead dust is the most common cause of lead poisoning, which can lead to severe, irreversible health problems, particularly in children. Lead poisoning can affect children’s brains and developing nervous systems, causing reduced IQ, learning disabilities, and behavioral problems. As alleged in the United States’ complaint filed in Manhattan federal court: ROSE is a company that performed demolition work in at least 668 residential properties in New York City between 2016 and 2019. In February 2018, the New York City Department of Health and Mental Hygiene inspected a worksite two days after ROSE had completed demolition work and found that ROSE had failed to contain or clean lead dust, resulting in lead dust exceeding federal standards in public hallways, in violation of the RRP Rule. EPA determined that ROSE failed to assign properly certified managers to direct the demolition work, failed to train its workers on lead-safe work practices, and failed to inform the building owner and occupants of the risks of lead poisoning during that renovation. Many of ROSE’s alleged violations occurred in areas of New York City with low-income populations that are already disproportionately burdened by other environmental hazards, raising environmental justice concerns. In the Consent Decree, ROSE admits, acknowledges, and accepts responsibility for the following conduct: Failing to assign a Certified Renovator to direct the demolition work and discharge all of the Certified Renovator responsibilities identified in the RRP Rule; Failing to ensure that all workers performing the renovations were Certified Renovators or had received training on lead-safe work practices required by the RRP Rule; Failing to adequately contain construction dust, including dust containing high concentrations of lead, in violation of the RRP Rule; Failing to post signs clearly defining its work area and warning occupants and other persons not involved in renovation activities to remain outside of the work area in violation of the RRP Rule; Failing to provide a lead-hazard information pamphlet to the owner or occupants of the building before commencing work in violation of the RRP Rule; and Failing to maintain documentation showing that it provided lead-hazard information pamphlets to the owners or occupants of the building or that it had posted warning signs in the building, in violation of the RRP Rule. Pursuant to the Consent Decree, ROSE will pay a penalty of $100,000, an amount based on the company’s documented inability to pay the full civil penalty for which it otherwise would be liable, and ROSE must comply with safe work practices and other RRP Rule requirements in the future. Additionally, the Consent Decree requires ROSE to notify residents or owners of the 668 affected properties as well as ROSE employees who worked on the affected properties of potential lead exposure and offer lead-dust inspection, cleanup, and clearance testing. Failure to comply with the Consent Decree will give rise to significant additional penalties. * * * To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval. Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter. This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Mónica P. Folch is in charge of the case. u.s._v._rose_demolition_carting_complaint.pdf


title: Ovintiv USA to Pay $5.5M Penalty and Upgrade Facilities in Utah to Resolve Clean Air Act Violations

component: Energy and Natural Resources Division

body_text: The Justice Department and Environmental Protection Agency (EPA) today announced a more than $16 million settlement with Ovintiv USA Inc. resolving Clean Air Act violations at the company’s oil and gas production facilities on the Uintah and Ouray Reservation in Utah and Utah state lands. The settlement requires Ovintiv to pay the United States and the state of Utah a civil penalty of $5.5 million. It also requires Ovintiv to implement extensive compliance measures to achieve major reductions in pollutants emitted from 139 of its facilities across the state. The settlement resolves a civil suit, filed jointly by the United States and the state of Utah, alleging that Ovintiv failed to comply with federal and state requirements to capture and control air emissions and comply with inspection, monitoring and recordkeeping requirements from 22 of its oil and gas production facilities in the Uintah Basin. These violations resulted in illegal emissions of volatile organic compounds (VOC), which contribute to asthma and increase susceptibility to respiratory illnesses. Additionally, greenhouse gases, including methane, were released in large quantities, contributing to climate change. Along with the civil penalty, the settlement requires Ovintiv to take corrective action and mitigation projects estimated to cost over $10 million at 139 of its facilities that will eliminate over 2,000 tons of VOC emissions annually. It will also eliminate methane emissions equivalent to a reduction of over 50,000 tons of carbon dioxide emissions annually, a reduction similar to taking nearly 13,000 gas powered cars off the road each year. “This case is a win for the environment and for consumers,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The work required under the consent decree will significantly reduce the amount of gas Ovintiv facilities vent into the atmosphere and return some of that gas to the sales pipeline where it can be sent to productive use.” “As climate change accelerates and wreaks havoc in communities across the nation, EPA is doing everything possible to limit the methane emissions that are among the most powerful drivers of climate change,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement with Ovintiv will significantly reduce emissions across 139 facilities on Tribal and state lands and provides another example of how EPA is delivering on its climate enforcement strategy and holding companies accountable for climate pollution.” The settlement requires Ovintiv to invest in extensive compliance measures for the proper design of Ovintiv’s oil and gas facilities to capture all VOC emissions and send the emissions to an appropriate control device. Compliance measures also include periodic infrared camera inspections, enhanced maintenance requirements and installation of storage tank pressure monitors at many facilities. The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change . This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources. Like all of EPA’s national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and other potential environmental justice concerns. More information on the settlement agreement is available on EPA’s webpage at www.epa.gov/enforcement/ovintiv-usa-inc-2024-clean-air-act-stationary-source-case-summary . The complaint and proposed consent decree were filed in the U.S. District Court for the District of Utah. The consent decree is subject to a 30-day comment period. A copy of the complaint and the proposed consent decree are available at www.justice.gov/enrd/consent-decrees . The EPA investigated the case. Attorneys with the Environment and Natural Resources Division’s Environmental Enforcement Section are handling the case.


title: United States Justice Department Secures Agreement with Wisconsin Department of Corrections to Improve Communication Access for Incarcerated People who are Deaf or Hard of Hearing

component: USAO - Wisconsin, Eastern

body_text: Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, joins the Civil Rights Division in announcing a settlement agreement has been reached with the Wisconsin Department of Corrections (WDOC) under Title II of the Americans with Disabilities Act (ADA). The settlement will help ensure that incarcerated individuals who are deaf or hard of hearing have equal access to WDOC’s programs, services and activities, including educational, counseling, medical, recreational and prison employment programs. The agreement resolves the department’s investigation into complaints that WDOC did not provide auxiliary aids and services, such as sign language interpreters, to incarcerated individuals with hearing disabilities. Under the settlement agreement, WDOC will provide inmates with hearing disabilities appropriate auxiliary aids and services, such as sign language interpreters, video telephones, visual notification systems and hearing aids when necessary. WDOC must also make reasonable modifications to its policies, practices and procedures to accommodate inmates with disabilities, such as handcuffing in front to allow an individual who uses sign language to communicate, and allowing additional time for telephone calls that rely on an interpreter. “The ability for incarcerated people with hearing disabilities to understand and to be understood is a critical protection provided by the ADA,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that correctional institutions eliminate barriers, including communication barriers, that prevent inmates with disabilities from participating fully in prison programs.” “People with disabilities in Wisconsin deserve equal access, and that does not change when they are incarcerated,” said U.S. Attorney Haanstad. “Our office remains dedicated to supporting efforts to improve access and inclusion for everyone in Wisconsin.” As a result of the agreement announced today, WDOC will implement a process that begins at intake, and continues throughout incarceration, to identify and accommodate inmates with hearing disabilities; develop individualized communication assessment and plans; provide training on the ADA to staff; and pay $15,000 to compensate three incarcerated individuals who were harmed. The Justice Department’s Civil Rights Division and U.S. Attorney’s Office for the Eastern District of Wisconsin handled the matter. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt . For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov . ADA complaints may be filed online at www.ada.gov/complaint . Additional information about the U.S. Attorney’s Office’s Civil Rights Programs is available at www.justice.gov/usao-edwi/civil-rights . # # #


title: Remarks of United States Attorney Todd Gee  Regarding the Department of Justice’s Efforts in 2024 to Protect the Vote and Secure Elections

component: Federal Bureau of Investigation (FBI)

body_text: Thank you, Assistant Special Agent in Charge Dimachkie. It has been a long-standing priority of the Department of Justice to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or criminal activity in the election process. The Department is also committed to ensuring that our elections are secure and free from foreign malign interference. In order to achieve these goals, we want to share some information with the public about steps the Department is taking to protect the right to vote and prevent federal election crimes in Mississippi and throughout the nation during this year’s federal elections in November. These measures are consistent with longstanding Justice Department practices and policies. The Justice Department’s Civil Rights Division, in partnership with U.S. Attorney’s Offices, is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote, and with federal criminal laws that prohibit discriminatory interference with that right. Throughout the election cycle, attorneys with the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Mississippi will be available to receive and review complaints of potential violations of these laws. Individuals with complaints related to possible violations of federal voting laws can call the Justice Department’s hotline at 1-800-253-3931, and can also submit complaints through the Department’s website at www.civilrights.justice.gov/ . Additionally, as part of the Justice Department’s efforts to secure the election, each U.S. Attorney’s office – including the U.S. Attorney’s Office for the Southern District of Mississippi – has partnered with the local FBI field office to respond to reports of federal election crimes, such as alleged destruction of ballots, vote-buying, multiple voting, submission of fraudulent ballots or registrations, and alteration of votes. The FBI and the U.S. Attorney’s offices are also responsible for enforcing federal criminal law prohibiting unlawful threats to election workers. As part of these efforts, each U.S. Attorney’s Office has designated an Assistant U.S. Attorney, who is a career public servant, to serve as the District Election Officer responsible for overseeing potential election-crime matters in their districts, and for coordinating with the Department’s election-crime experts at the Public Integrity Section in Washington, D.C. The FBI has also designated a specially trained agent in each field office as an Election Crime Coordinator who will be on duty while polls are open to receive complaints from the public. The FBI’s Election Crime Coordinator and the U.S. Attorney’s Office’s District Election Officer will also work closely with the Office of the Mississippi Secretary of State and other state and local officials regarding alleged election crimes. Members of the public in Mississippi can report election-crime complaints to the Jackson FBI Field office at 1-800-CALL-FBI, or online at https://tips.fbi.gov/ . The Department of Justice has also launched a website with information about its efforts to secure elections and the right to vote at www.justice.gov/voting . Protecting the right to vote, prosecuting election crimes, and securing our elections in Mississippi and throughout the nation are essential to maintaining the confidence of all Americans in our democratic system of government. The Justice Department encourages anyone with information regarding concerns in these subject areas to contact the appropriate authorities. -END-


title: South Florida U.S. Attorney’s Office Charges an Attorney, Former SBA Employee, Tax Preparer, and others with COVID-19 Fraud Schemes

component: USAO - Florida, Southern

body_text: MIAMI – The U.S. Attorney’s Office for the Southern District of Florida remains a leader in COVID-19 pandemic relief prosecutions, holding a range of actors accountable for these crimes. Over this summer alone, the district has charged 17 individuals with COVID-19 relief fraud cases, with scheme amounts totaling over $21 million. In 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to enhance efforts to combat and prevent pandemic-related fraud. In 2022, the Southern District of Florida’s U.S. Attorney’s Office was selected to head one of three national COVID-19 Fraud Strike Force Teams. Together, with federal, state and local law enforcement partners, the U.S. Attorney’s Office targets fraudsters that took advantage of programs that offered assistance during the pandemic. Since the pandemic, more than 185 people have been charged in the Southern District of Florida for schemes involving more than around $220 million. “These defendants have in common a willingness to exploit federal programs created to help people in a global pandemic for their own gain,” stated U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “The U.S. Attorney’s Office and our law enforcement partners will continue to uncover COVID-19 related financial fraud schemes and hold people accountable – regardless of their role in the community. We will not allow limited federal tax dollars, which were intended to provide a lifeline to small businesses as they struggled to stay afloat during the economically devastating pandemic lockdown, to be stolen to support criminal actors.” “The Department of Justice remains committed to the prosecution of those who engaged in COVID-19 benefits program fraud and the return of recovered funds to the American taxpayers. I appreciate the dedication of the prosecutors and investigators who brought these people to justice and worked to protect the integrity of our federal benefits programs,” said Mandy Riedel, Director of COVID-19 Fraud Enforcement. The following cases were charged this summer. Cases Against Federal Employees A number of federal employees and former federal employees have been charged with COVID loan schemes, including: U.S. v. Malaina Chapman, Case No. 24-CR-20321 : Chapman, 37, of Hialeah, Fla., a former SBA employee, was indicted in July 2024. The indictment alleges that, while employed by the SBA, Chapman became involved in multiple schemes to defraud the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, as well as to defraud local credit unions and local and state programs designed to assist those affected by the Covid-19 pandemic pay their rent. United States Postal Service Office of Inspector General (USPS OIG) and the U.S. Small Business Administration Office of Inspector General (SBA OIG) investigated this case. This case is being handled by Assistant U.S. Attorney Daniel Bernstein. “Fraudulent exploitation of SBA's pandemic relief programs diverts critical resources from the small businesses that truly need them,” said Amaleka McCall-Brathwaite, Special Agent in Charge of the SBA OIG’s Eastern Region. “Our office is committed to protecting taxpayer funds and ensuring that individuals who attempt to defraud SBA programs are brought to justice. I want to thank the U.S. Attorney’s office and our law enforcement partners for their collaboration and dedication to justice.” Unemployment Insurance Fraud A number of defendants in Florida were charged with defrauding the California Employment Development Department of millions of dollars by making false claims for unemployment with the personally identifiable information of the victims of identity theft. These cases were investigated by the Federal Bureau of Investigation (FBI), U.S. Department of Labor Office of Inspector General (DOL OIG), SBA OIG, and Homeland Security Investigations (HSI). This includes: U.S. v. Harold Eubanks and Myotha Francois, Case No. 24-CR-20335: handled by Assistant U.S. Attorney Roger Cruz. U.S. v. Kenneth Dikari Stevens, Jr. and Giovanni Kymani Paul Matthews, Case No. 24-CR-20293: handled by Assistant U.S. Attorneys Sean Cronin and Aimee Jimenez. U.S. v. Zachary Ramyard, Case No. 24-CR-20382: handled by Assistant U.S. Attorney Joesph Egozi. “These cases represent the continued commitment of the FBI and many other federal agencies to identify and hold accountable those who engaged in COVID relief fraud,” said Jeffrey B. Veltri, Special Agent in Charge of the FBI’s Miami Field Office. “The intent of these programs was to provide a financial safety net to eligible businesses during a time of economic duress – not as a way for criminals to fund their lifestyles. While the relief programs have ended, our pursuit of the fraudsters has not. The amount of fraud we’ve seen is staggering. We continue to work hard every day to investigate these fraud schemes and protect the public from being swindled.” “This funding was intended to mitigate the risk to Americans and businesses impacted by an unprecedented global pandemic but was stolen by individuals for their own personal gain” said Anthony Salisbury Special Agent in Charge Homeland Security Investigations in Miami “Criminally taking advantage of programs designed to help our communities will not be tolerated. HSI and their partners will vigilantly pursue all those who seek to exploit these programs to ensure that Americans properly in need of this kind of support have access.” COVID-19 Procurement Fraud This office continues to investigate and pursue individuals who capitalized on the pandemic by illegally profiting on personal protective equipment (PPE), including: U.S. v. Nabil Nahlah, Case No. 24-CR-20434 : Nahlah, 49, of Miami Beach, Fla., was charged with one count of fraud against the United States, arising from his efforts to sell millions of dollars of PPE to the Department of Veterans Affairs (VA) during the COVID-19 pandemic. According to allegations contained in the charging documents filed Sept. 25, Nahlah, through his company The Noble Attorney, made bids on various procurement requests from the VA for items like medical masks and examination gloves. Nahlah won the contracts by making false and fraudulent representations to the VA, namely by claiming that his firm was an authorized distributor or reseller of the PPE manufacturers and that he had the qualifying PPE in stock and available for immediate delivery. Nahlah furthered the scheme to defraud the VA by creating a fake web domain and email address for a PPE manufacturer and using it to submit a phony authorized distributor letter to the VA. Once awarded the lucrative contracts, Nahlah shipped non-conforming PPE to the VA, including counterfeit medical masks. This case was investigated by the VA Office of Inspector General’s (VA OIG) and the FDA Office of Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorney Jon Juenger. U.S. v. Rodrigo Mera, Case No. 24-CR-20148 : In August 2024, Mera pled guilty to stealing gloves and other PPE from his employer during the pandemic. Mera admitted he sold the stolen PPE under false pretenses and profited over $1 million. This case was investigated by the United States Secret Service (USSS). This case is being prosecuted by Assistant U.S. Attorney Daniel Bernstein. “The charges included in today’s announcement highlight the VA Office of Inspector General’s dedication throughout the pandemic to protect veterans and VA employees from those who would exploit the opportunity for fraudulent gain,” said Special Agent in Charge David Spilker with the VA OIG Southeast Field Office. “The VA OIG remains steadfast in our commitment to work with our law enforcement partners to ensure the integrity of VA’s vital supply chain.” “The FDA continues to monitor the marketplace to ensure that medical devices are safe and effective for American consumers,” said Special Agent in Charge Justin Fielder, FDA Office of Criminal Investigations’ Miami Field Office. “Today’s announcement should serve as a reminder that the FDA is continuing to collaborate with our fellow law enforcement partners to bring to justice those who place profits above the public health.” Cases Against COVID-19 Loan Preparers A number of loan preparers have been charged, including: U.S. v. Pete Andrew Cohen, Case No. 24-CR-60017: Cohen, 56 of Miramar, Fla., was the president of Taxez Taxez Taxez Incorporation in Miramar. From June 2020 through June 2021, the defendant caused the filing of approximately $3 million in fraudulent PPP loan applications that falsely and fraudulently inflated the number of employees and payroll figures for the applicants. The defendant also arranged for PPP loan borrowers to create false and fraudulent payroll information using a payroll service. Cohen pled guilty and is scheduled to be sentenced on Oct. 17, before U.S. District Judge Rodney Smith. This case was investigated by Internal Revenue Service Criminal Investigation (IRS-CI) and Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). This case is being prosecuted by Senior Litigation Counsel Michael N. Berger. U.S. v. Marc Prince, Case No. 24-CR-20214 : Prince, 41 of Miramar, reached out to various small business owners, directly or indirectly, to offer to obtain PPP loans. From June 2020 through April 2021, Prince caused the filing of approximately $3 million in fraudulent PPP loan applications that falsely and fraudulently inflated the number of employees and payroll figures for the applicants. Prince charged a fee, typically, of around 20 percent of the value of the PPP loan. Prince pled guilty and is scheduled to be sentenced on Oct. 17, before U.S. District Judge Darrin P. Gayles. This case was investigated by IRS-CI, FDIC-OIG, and HSI. This case is being prosecuted by Senior Litigation Counsel Michael N. Berger. “These charges demonstrate the FDIC OIG's commitment to working with our law enforcement partners to investigate allegations of fraud in COVID-19 relief programs and other financial crimes that threaten to undermine the safety and soundness of our Nation's financial institutions,” said Special Agent in Charge Kyle A. Myles, of the FDIC OIG Atlanta Region. “It has been four years after the enactment of a key pandemic-era law and IRS-CI still continues to investigate cases related to the CARES Act,” said Matthew D. Line, Special Agent in Charge of the IRS-CI Miami Field Office. “These cases cover a wide range of criminal activity, including tax, money laundering, fraudulently obtained loans, credits and payments meant for American workers, families, and small businesses. In the last year alone, IRS-CI has opened nearly 700 new COVID fraud investigations nationwide that collectively add up to $5 billion. If you committed fraud, know that we are working hard every single day to find you and hold you accountable.” Theft of Employee Retention Credit Checks This office has charged the theft of employee retention checks, for example: U.S. v. Madelein Olivia, Case No. 24-CR-20323: Olivia, 52, of Miami, was indicted by a grand jury for stealing a $7 million Employee Retention Credit (ERC) check issued to a victim business where she was not employed. ERC checks are refundable tax credits for certain eligible businesses and tax-exempt organizations that had employees and were affected by the COVID-19 pandemic. Treasury Inspector General for Tax Administration (TIGTA) investigated the case. This case is being handled by Assistant U.S. Attorney Altanese Phenelus. An indictment, information, and complaint contain mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law. For more information regarding the Department of Justice’s response to the pandemic visit https://www.justice.gov/coronavirus . Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams . 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 . Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under the case numbers referenced above. ###


title: Chinese National and DPRK Facilitator Extradited to the United States; Faces Charges of Conspiracy, Bank Fraud, and Violating North Korea Sanctions

body_text: On Sept. 27, the Commonwealth of Australia extradited Jin Guanghua, 53, to the United States. Jin, a Chinese national, and his co-conspirators North Korean banker, Sim Hyon-Sop, 50, and Chinese nationals Qin Guoming, 60, and Han Linlin, 41, both of Liaoning Province, were all charged by indictment in 2022 in connection with a multi-year scheme to facilitate the sale of tobacco to North Korea through the U.S. financial system in violation of the sanctions imposed on North Korea. Jin made his initial appearance in the District of Columbia today. Between 2009 and 2019, the defendants engaged in a scheme to purchase leaf tobacco for North Korean-owned entities and used front companies and false documentation to cause U.S. financial institutions to process at least 310 transactions worth approximately $74 million that the financial institutions otherwise would have frozen, blocked, investigated, or declined, had they known that the transactions involved trade with North Korea. The transactions resulted in an estimated nearly $700 million in revenue for North Korean entities, and ultimately, for the government of North Korea. The defendants are charged by indictment with conspiracy to commit bank fraud, conspiracy to violate and violations of International Emergency Economic Powers Act (IEEPA) and the North Korean sanctions regulations, and conspiracy to launder monetary instruments and laundering monetary instruments. Jin was residing in Australia and was attempting to depart the country for China at the time of his arrest by Australian authorities on March 23, 2023. The arrest followed a request by the United States for Jin’s provisional arrest with a view toward extradition. This case is part of a larger Justice Department response to the ongoing efforts of North Korea to evade sanctions and use the U.S. financial system to engage in illicit trafficking of tobacco products. As alleged in the indictment, trafficking in tobacco products generates revenue for advancing North Korea’s Weapons of Mass Destruction (WMD) programs. North Korea has been developing nuclear weapons since at least 2006 and financed these activities through illicit trade, including trafficking of tobacco and counterfeit cigarettes, which North Korea has engaged in since at least 1992. North Korea’s counterfeit cigarette production capacity is estimated to exceed two billion packs a year. Counterfeit cigarettes are a major source of income to the North Korean regime and may be the single most lucrative item in the North Korean portfolio, as smuggled tobacco is estimated to garner revenue as much as $20 on every $1 spent in cost. North Korean tobacco sales are alleged to flow back to the North Korean government, including to slush funds designed to sustain the loyalty of a core of party elite and to underwrite weapons development programs. If convicted, the defendant faces a maximum penalty of 30 years in prison for bank fraud, 20 years in prison for violating IEEPA, and 20 years in prison for committing money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement. The FBI Phoenix Field Office and HSI Colorado Springs and investigating the case. Valuable assistance was provided by the Australian Attorney-General’s Department, the Australian Federal Police, and the Justice Department’s Office of International Affairs. Assistant U.S. Attorneys Karen P. Seifert, David Recker, and Steven Wasserman for the District of Columbia and Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case with assistance from Paralegal Specialists Brian Rickers and Jorge Casillas. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: TD Securities to Pay $15.5M in Connection with Scheme to Defraud U.S. Treasuries Markets

component: Criminal Division

body_text: WASHINGTON – TD Securities (USA) LLC (TD Securities), a securities firm based in New York, has entered into a resolution with the Justice Department to resolve criminal charges concerning a scheme to defraud that involved hundreds of episodes of unlawful trading in the secondary (cash) market for U.S. Treasuries. TD Securities entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the District of New Jersey charging the company with one count of wire fraud. Under the terms of the DPA, TD Securities will pay over $15.5 million in a criminal monetary penalty, forfeiture, and victim compensation. Under the DPA, TD Securities will pay the equivalent of the statutory maximum criminal fine in connection with the offense (approximately $9.4 million) and will ensure that victims of the offense are made whole through a claims administration process (approximately $4.7 million in victim compensation). The former head of the TD Securities desk that was responsible for trading U.S. Treasuries, Jeyakumar Nadarajah, was indicted on Nov. 7, 2023, in the District of New Jersey in connection with this scheme and is awaiting trial. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. “TD Securities placed hundreds of orders to buy and sell U.S. Treasuries that it never intended to execute, in order to deceive market participants and manipulate prices by creating the false appearance of supply and demand,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Such efforts to profit through unlawful trading undermine public confidence in U.S. Treasuries markets and defraud other market participants. The Criminal Division is committed to ensuring the integrity of our financial markets and holding accountable those who engage in deceptive trading practices.” “The American public places trust in our financial institutions and relies on companies to be truthful and execute their obligations to traders in an ethical manner,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS)’s Criminal Investigations Group. “The USPIS’ DOJ Mail Fraud team found there was a blatant violation of that trust, as this individual placed billions of dollars in spoof orders, distorting supply and demand and causing significant losses. These charges send a clear message that such deceptive practices will not be tolerated, and we are dedicated to protecting the integrity of our markets and the interests of honest investors.” According to court documents and admissions, Nadarajah, a former director and head of the TD Securities U.S. Treasuries trading desk, engaged in a scheme to defraud in connection with the purchase and sale of U.S. Treasuries in the secondary market. In hundreds of instances, Nadarajah placed orders to buy and sell U.S. Treasuries with the intent to cancel those orders before execution. Nadarajah did so in an attempt to profit by injecting false and misleading information concerning the existence of genuine supply and demand for U.S. Treasuries, thereby deceiving other market participants and fraudulently inducing those participants to trade at prices, quantities, and times that they otherwise would not have traded. As part of the DPA, TD Securities, and its U.S. parent company, TD Group US Holdings LLC (TDGUS), have agreed to, among other things, continue to cooperate with the Criminal Division’s Fraud Section in any ongoing or future investigations by the Fraud Section begun before or during the term of the DPA. As part of its cooperation, TD Securities and TDGUS are required to report evidence or allegations of conduct that may constitution a violation of the U.S. anti-fraud, securities, and commodities laws as defined in the DPA. In addition, TD Securities and TDGUS have also agreed to enhance TD Securities’ compliance program where necessary and appropriate, and to report to the government regarding remediation and implementation of their enhanced compliance program. The department reached this resolution with TD Securities based on numerous factors, including the nature and seriousness of the offense conduct, which involved placing hundreds of fraudulent spoof orders amounting to tens of billions of dollars of false supply and demand in the secondary market for U.S. Treasuries, and TD Securities’ failure to voluntarily self-disclose the offense conduct to the department. TD Securities received credit for its cooperation with the department’s investigation and for remedial measures taken, including terminating Nadarajah, and reviewing and continuing to enhance the compliance function. Today, the Financial Industry Regulatory Authority announced a separate settlement with TD Securities in connection with a related, parallel proceeding. Under the terms of that resolution, TD Securities agreed to pay a fine of approximately $6 million. Also today, the U.S. Securities and Exchange Commission (SEC) announced a separate settlement with TD Securities in connection with a related, parallel proceeding. Under the terms of that resolution, TD Securities agreed to pay approximately $7 million, which includes a civil monetary penalty of approximately $6.5 million, as well as approximately $400,000 in disgorgement and $135,000 in prejudgment interest. A portion of the forfeiture agreed to in the department’s DPA will be credited against payments made to the SEC under a separate agreement with the SEC. USPIS is investigating the case. Trial Attorney John J. Liolos of the Criminal Division’s Fraud Section is prosecuting the case. Former Deputy Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section provided substantial assistance.


title: Montana Man Sentenced for Federal Wildlife Trafficking Charges as Part of Yearslong Effort to Create Giant Hybrid Sheep for Captive Hunting

body_text: A Montana man was sentenced today to six months in prison for committing two felony wildlife crimes — a conspiracy to violate the Lacey Act and substantively violating the Lacey Act — as part of an almost decade-long effort to create giant sheep hybrids in the United States with an aim to sell the species to captive hunting facilities. Arthur “Jack” Schubarth, 81, of Vaughn, is the owner and operator of Sun River Enterprises LLC, also known as Schubarth Ranch, which is a 215-acre alternative livestock ranch in Vaughn. The Schubarth Ranch is engaged in the purchase, sale and breeding of “alternative livestock” such as mountain sheep, mountain goats and various ungulates. The primary market for Schubarth’s livestock is captive hunting operations, also known as shooting preserves or game ranches. According to court documents, Schubarth conspired with at least five other individuals between 2013 and 2021 to create a larger hybrid species of sheep that would garner higher prices from shooting preserves. Schubarth brought parts of the largest sheep in the world, Marco Polo argali sheep ( Ovis ammon polii ), from Kyrgyzstan into the United States without declaring the importation. Average males can weigh more than 300 pounds, with horns that span more than five feet. Marco Polo argali are native to the high elevations of the Pamir region of Central Asia. They are protected internationally by the Convention on International Trade in Endangered Species (CITES) and domestically by the Endangered Species Act, and are prohibited in the State of Montana to protect native sheep from disease and hybridization. Schubarth sent genetic material from the argali parts to a lab to create cloned embryos. Schubarth then implanted the embryos in ewes on his ranch, resulting in a single, pure genetic male Marco Polo argali that he named “Montana Mountain King” or MMK. December 2023 photo of MMK from the sentencing memo, United States v. Arthur “Jack” Schubarth case number 24-cr-0006 in U.S. District Court for the District of Montana. Court documents explain that Schubarth worked with the other unnamed coconspirators to use MMK’s semen to artificially impregnate various other species of ewes — all of which were prohibited in Montana — and create hybrid animals. Their goal was to create a larger and more valuable species of sheep to sell to captive hunting facilities, primarily in Texas. To move the prohibited sheep into and out of Montana, Schubarth and others forged veterinary inspection certificates, falsely claiming that the sheep were legally permitted species. On occasion, Schubarth sold MMK semen directly to sheep breeders in other states. According to court documents, disease introduction was a risk associated with Schubarth’s conduct and at least two sheep from the scheme died from Johne’s disease. Johne’s disease is a contagious, chronic wasting disease easily spread between animals directly or through environmental contamination. Court documents also describe how Schubarth illegally obtained genetic material from wild-hunted Rocky Mountain bighorn sheep in Montana. Schubarth purchased parts of these wild-hunted sheep in violation of Montana law, which prohibits the sale of game animal parts within the state and prohibits the use of Montana game animals on alternative livestock ranches. Schubarth transported and sold the bighorn parts in interstate commerce. “Schubarth not only violated federal and state law and international treaties, but he and others illegally conspired to conceal their actions from authorities,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Violations of the Lacey Act, CITES and other laws can be devastating for our domestic populations of wild animals, which is why we are unwavering in our commitment to enforce them.” “Schubarth’s criminal conduct is not how Montanans treat our wildlife population,” said U.S. Attorney Jesse Laslovich for the District of Montana. “Indeed, his actions threatened Montana’s native wildlife species for no other reason than he and his co-conspirators wanted to make more money. Schubarth’s greed drove their conspiracy to bring to Montana parts of the largest sheep in the world from Kyrgyzstan. Such actions to create hybrid animals are as unnatural as they are illegal, and I applaud the extensive collaboration and diligence of all of our law enforcement partners to bring Schubarth to justice.” “This case exemplifies the serious threat that wildlife trafficking poses to our native species and ecosystems,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “Mr. Schubarth's actions not only violated multiple laws designed to protect wildlife, but also risked introducing diseases and compromising the genetic integrity of our wild sheep populations. The U.S. Fish and Wildlife Service remains committed to working with our partners to investigate and prosecute those who exploit protected species for personal gain. This sends a clear message that we will not tolerate the illegal importation, sale and transport of wildlife, especially when it endangers our natural heritage.” “This case is complex and is a great example of how we work together with the U.S. Fish and Wildlife Service to protect resources no matter where the investigation takes us,” said Chief of Law Enforcement Ron Howell of Montana Fish, Wildlife and Parks. In addition to his prison sentence, Schubarth was ordered to pay a $20,000 fine to the Lacey Act Reward Fund, a $4,000 payment to the National Fish and Wildlife Foundation and a $200 special assessment. The Lacey Act prohibits interstate trade in wildlife that has been taken, possessed, transported or sold in violation of federal or state law. The Lacey Act also prohibits the interstate sale of wildlife that has been falsely labeled. The Act is one of the most powerful tools the United States has to combat wildlife trafficking and prevent ecological invasion by injurious wildlife. The U.S. Fish and Wildlife Service and Montana Department of Fish, Wildlife and Parks are investigating the case. Trial Attorney Sarah M. Brown and Senior Trial Attorney Patrick M. Duggan of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Jeffrey Starnes for the District of Montana are prosecuting the case.


title: Man Sentenced for Threatening to Place Pipe Bombs  on School Buses in Indiana

component: USAO - Arizona

body_text: TUCSON, Ariz. – Amir Safavi Farokhi, 29, of Fishers, Indiana, was sentenced by U.S. District Judge Scott H. Rash last week to over 11 months’ custody for threatening to blow up school buses in Castleton, Indiana. Farokhi pleaded guilty on July 17, 2024, to one count of Making an Interstate Threat. Between October 21 and October 24, 2023, while staying at a residence in Tucson, Farokhi made several cell phone calls to hospitals, police departments, schools, and businesses in both Tucson, Arizona and Indiana. Farokhi pleaded guilty to calling the Indianapolis Metropolitan Police Department and threatening that he was going to blow up three school buses with pipe bombs. Farokhi was arrested on October 25, 2023, in Tucson, and he remained in federal custody throughout the duration of his case. Following his release from custody, Farokhi will be placed on supervised release for a period of three years, during which he will be required to participate in mental health treatment. The Federal Bureau of Investigation and the Pima County Sheriff’s Department, as part of the FBI’s Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution. CASE NUMBER: CR-23-01845-TUC-SHR RELEASE NUMBER: 2024-129_Farokhi # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Huntington Man Pleads Guilty to Federal Gun Crime

component: USAO - West Virginia, Southern

body_text: HUNTINGTON, W.Va. – Weslee Nathaniel Black, 38, of Huntington, pleaded guilty today to possession of a short-barrel shotgun not registered to him in the National Firearms Registration and Transfer Record. According to court documents and statements made in court, on March 28, 2024, law enforcement officers ordered Black to exit a vehicle on the 1300 block of Marcum Terrace in Huntington and arrested him for grand larceny of the vehicle. Officers searched the vehicle and seized a Hatfield Gun Company model PAS 12-gauge shotgun with a shortened barrel. Black admitted that he possessed the firearm, that he knew it had a shortened barrel when he purchased it, and that it was not registered to him in the National Firearms Registration and Transfer Record as required by law. Federal law prohibits a person with a prior conviction for a misdemeanor crime of domestic violence from possessing a firearm or ammunition. Black knew he was prohibited from possessing a firearm because of his prior conviction for domestic battery in Cabell County Magistrate Court on January 31, 2023. Black is scheduled to be sentenced on January 13, 2025, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a $10,000 fine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:24-cr-84. ###


title: Somerset County Man Sentenced to 64 Months’ Incarceration for  Concealing Material Support to Hamas

component: USAO - New Jersey

body_text: TRENTON, N.J. – A Somerset County, New Jersey, man was sentenced today to time served – 64 months – for concealing his attempts to provide material support to Hamas, U.S. Attorney Philip R. Sellinger, Assistant Attorney General Matt Olsen of the U.S. Department of Justice’s National Security Division, FBI-Newark Acting Special Agent in Charge Nelson I. Delgado Jr., and FBI Assistant Director for Counterterrorism David J. Scott announced. Jonathan Xie, 25, of Basking Ridge, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with one count of concealing attempts to provide material support to a designated foreign terrorist organization. Judge Shipp imposed the sentence today in Trenton federal court. “Jonathan Xie not only admitted sending money that he hoped would be used by the terrorist organization Hamas to fund violent acts against civilians in Israel, he professed his desire to travel to Gaza to join them. Brandishing a gun and holding a Hamas flag, he also posted that he was going to shoot everybody at a pro-Israel march and ruminated how one could go on a rampage by ramming pro-Israel demonstrators with a car. This supporter of Hamas learned the true cost of supporting terrorists.” U.S. Attorney Philip R. Sellinger “Xie is an unfortunate example of an emerging and extremely dangerous threat the FBI Newark Joint Terrorism Task Force is seeing with much more frequency,” Newark FBI Acting Special Agent in Charge Nelson I. Delgado said. “The average age of the international and domestic terrorism subjects we investigate is under 21 years old, and they're being radicalized in only a few months. Xie was a teenager when he decided to send money in support of a terrorism organization and then threaten to carry out a plan to kill pro-Israeli people. We need this case to serve as a warning to parents and guardians - pay attention to what your teenagers are doing online.” According to documents filed in this case and statements made in court: Xie knowingly concealed and disguised the nature, location, source, ownership and control of his attempt to provide material support and resources to Harakat alMuqawamah al-Islamiyya and the Islamic Resistance Movement, an organization that is commonly referred to as Hamas. Xie admitted that he knew Hamas was a designated foreign terrorist organization and has engaged in terrorist activities. He said he attempted to conceal his attempted support believing it would be used to commit or assist in the commission of a violent act. In December 2018, Xie sent $100 via Moneygram to an individual in Gaza who Xie believed to be a member of the Al-Qassam Brigades – a faction of Hamas that has conducted attacks, to include suicide bombings against civilian targets inside Israel. At approximately the same time that Xie sent the money, he posted on his Instagram account “Just donated $100 to Hamas. Pretty sure it was illegal but I don’t give a damn.” In April 2019, Xie appeared in an Instagram Live video wearing a black ski mask and stated that he was against Zionism and the neo-liberal establishment. When asked by another participant in the video if he would go to Gaza and join Hamas, Xie stated “yes, If I could find a way.” Later in the video, Xie displayed a Hamas flag and retrieved a handgun. He then stated “I’m gonna go to the [expletive] pro-Israel march and I’m going to shoot everybody.” In subsequent Instagram posts, Xie stated, “I want to shoot the pro-israel demonstrators . . . you can get a gun and shoot your way through or use a vehicle and ram people . . . all you need is a gun or vehicle to go on a rampage . . . I do not care if security forces come after me, they will have to put a bullet in my head to stop me.” In April 2019, Xie sent a link to a website for the Al-Qassam Brigades to an FBI employee who was acting online in an undercover capacity. Xie described the website as a “Hamas” website and stated he had previously sent a donation to the group. Xie then sent screenshots of the website to the undercover employee and demonstrated how to use a new feature on the website that allows donations to be sent via Bitcoin. On April 18, 2019, when the undercover employee asked whether Bitcoin was anonymous, Xie responded: “yah… i think thats why hamas is using it now because money transfer is not that anonymous.” In addition to the prison term, Judge Shipp sentenced Xie to 20 years of supervise release, including six months of home detention with location monitoring for the first six months. U.S. Attorney Sellinger and Assistant Attorney General Olsen credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Acting Special Agent in Charge Nelson I. Delgado; and the U.S. Department of Defense, Army Counterintelligence, 902d Military Intelligence Group, with the investigation leading to the sentencing. He also thanks the U.S. Secret Service for its assistance. The government is represented by Joyce M. Malliet, Chief of the U.S. Attorney’s Office’s National Security Unit and Trial Attorney Taryn Meeks of the U.S. Department of Justice’s Counterterrorism Section of the National Security Division (currently detailed to the Human Rights and Special Prosecutions Section).


title: Chinese National and DPRK Facilitator Extradited to the United States; Faces Charges of Bank Fraud, Conspiracy, and Violating North Korea Sanctions

body_text: WASHINGTON – On Sept. 27, the Commonwealth of Australia extradited Jin Guanghua, 53, to the United States. Jin, a Chinese national, and his co-conspirators North Korean banker, Sim Hyon-Sop, 50, and Chinese nationals Qin Guoming, 60, and Han Linlin, 41, both of Liaoning Province, were all charged by indictment in 2022 in connection with a multi-year scheme to facilitate the sale of tobacco to North Korea through the U.S. financial system in violation of the sanctions imposed on North Korea. Jin made his initial appearance in the District of Columbia today. U.S. Attorney Matthew M. Graves made the announcement with Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement. Between 2009 and 2019, the defendants engaged in a scheme to purchase leaf tobacco for North Korean-owned entities and used front companies and false documentation to cause U.S. financial institutions to process at least 310 transactions worth approximately $74 million that the financial institutions otherwise would have frozen, blocked, investigated, or declined, had they known that the transactions involved trade with North Korea. The transactions resulted in an estimated nearly $700 million in revenue for North Korean entities, and ultimately, for the government of North Korea. The defendants are charged by indictment with conspiracy to commit bank fraud, conspiracy to violate and violations of International Emergency Economic Powers Act (IEEPA) and the North Korean sanctions regulations, and conspiracy to launder monetary instruments and laundering monetary instruments. Jin was residing in Australia and was attempting to depart the country for China at the time of his arrest by Australian authorities on March 23, 2023. The arrest followed a request by the United States for Jin’s provisional arrest with a view toward extradition. This case is part of a larger Justice Department response to the ongoing efforts of North Korea to evade sanctions and use the U.S. financial system to engage in illicit trafficking of tobacco products. As alleged in the indictment, trafficking in tobacco products generates revenue for advancing North Korea’s Weapons of Mass Destruction (WMD) programs. North Korea has been developing nuclear weapons since at least 2006 and financed these activities through illicit trade, including trafficking of tobacco and counterfeit cigarettes, which North Korea has engaged in since at least 1992. North Korea’s counterfeit cigarette production capacity is estimated to exceed two billion packs a year. Counterfeit cigarettes are a major source of income to the North Korean regime and may be the single most lucrative item in the North Korean portfolio, as smuggled tobacco is estimated to garner revenue as much as $20 on every $1 spent in cost. North Korean tobacco sales are alleged to flow back to the North Korean government, including to slush funds designed to sustain the loyalty of a core of party elite and to underwrite weapons development programs. If convicted, the defendant faces a maximum penalty of 30 years in prison for bank fraud, 20 years in prison for violating IEEPA, and 20 years in prison for committing money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The FBI Phoenix Field Office and HSI Colorado Springs and investigating the case. Valuable assistance was provided by the Australian Attorney-General’s Department, the Australian Federal Police, and the Justice Department’s Office of International Affairs. Assistant U.S. Attorneys Karen P. Seifert and Steven Wasserman, and Paralegal Specialists Brian Rickers and Jorge Casillas for the District of Columbia, along with Trial Attorney Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section, are prosecuting the case. Trial Attorney David Recker of the National Security Division provided substantial assistance on this matter. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ## Follow us on Twitter , Instagram , and YouTube


title: Lab Owner Pleads Guilty to $14M COVID-19 Fraud Scheme

body_text: An Illinois man pleaded guilty today for his role in a COVID-19 testing fraud scheme. According to court documents, Zishan Alvi, 45, of Inverness, owned and operated a laboratory in Chicago that performed testing for COVID-19. From February 2021 through February 2022, Alvi caused claims to be submitted to the Department of Health and Human Services’ Health Resources and Services Administration (HRSA) for COVID-19 tests that were not performed as billed. As part of the scheme, the laboratory released negative COVID-19 test results to patients, even though the laboratory either had not actually tested the specimens or the results were inconclusive. Alvi knew that the laboratory was releasing negative results for tests that were not performed or were inconclusive, but still caused the laboratory to submit claims to HRSA for those tests. HRSA paid the laboratory over $14 million as a result of the fraudulent claims Alvi caused to be submitted to HRSA. Alvi pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on Feb. 7, 2025, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois; Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement. The FBI and HHS-OIG are investigating the case. Trial Attorney Claire T. Sobczak of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jared Hasten and Misty Wright for the Northern District of Illinois are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Five Former IRS Employees Sentenced in Connection with COVID-19 Fraud

component: USAO - Tennessee, Western

body_text: Memphis, TN – Five former IRS employees were recently sentenced for defrauding federal COVID-19 relief programs. This case was brought as a part of an interagency effort to combat and prevent such fraud by federal employees. According to court documents, Brian Saulsberry , 48 , of Memphis, was employed by the IRS as a Program Evaluation and Risk Analyst in the Human Capital Office in Memphis, Tennessee. Saulsberry laundered funds he received from a scheme to defraud the Economic Injury Disaster Loan (EIDL) program, a federal stimulus program authorized to provide loans to small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Saulsberry submitted false EIDL applications and obtained $171,400 in loan funds. After obtaining the fraudulent loan funds, Saulsberry transferred the funds to his personal checking account. He then used the loan funds for purposes not authorized by the EIDL Program, but instead transferred $100,000 to an investment account, knowing that the property involved in the transaction was derived from unlawful activity. In addition to Saulsberry, four other former IRS employees, Courtney Quinshe Westmoreland , 40 , Fatina Hewitt , 37 , Roderick DeMarco White II , 29 , and Tina Humes , 58 , were convicted for defrauding federal stimulus programs authorized as part of the CARES Act, including the EIDL Program and the Paycheck Protection Program. The five former federal employees collectively sought over $1 million. They then used the loan funds to invest in personal accounts, purchase cars and luxury goods, and pay for personal travel, including trips to Las Vegas. In October 2022, the Justice Department announced charges against the five former IRS employees. Saulsberry pled guilty to one count of money laundering in December 2023. On September 25, 2024, Saulsberry was sentenced by United States District Court Chief Judge Sheryl H. Lipman to 18 months of imprisonment with 2 years of supervised release to follow and was ordered to provide $171,400 to the Government in forfeiture. There is no parole in the federal system. Principal Deputy Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting United States Attorney Reagan Fondren for the Western District of Tennessee, Acting Treasury Inspector General for Tax Administration (TIGTA) Heather M. Hill, and Inspector General Hannibal “Mike” Ware of the Small Business Administration Office of Inspector General (SBA-OIG) made the announcement. TIGTA and SBA-OIG investigated the case. Assistant Chief Justin Woodard and Trial Attorneys Sara Porter, Kelly Z. Walters, and Thomas D. Campbell of the Fraud Section’s Gulf Coast Strike Force and Assistant U.S. Attorney Carroll L. André III for the Western District of Tennessee prosecuted the cases. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 . 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 via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . ### For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov . Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.


title: Las Vegas Doctor Sentenced To Over Two Years In Prison For Unlawful Distribution Of Opioid Medications

component: USAO - Nevada

body_text: LAS VEGAS — A Las Vegas doctor was sentenced today by United States District Judge Cristina D. Silva to 27 months in prison to be followed by three years of supervised release, and a fine of $75,000 for unlawfully distributing opioid pain medications without a medically legitimate purpose. “By prescribing medically unnecessary prescription medications in exchange for cash payments, the defendant put vulnerable patients at risk,” said Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division. “The FBI will continue to work with our federal, state, and local partners to find and investigate practitioners in the medical community who target and victimize vulnerable populations.” According to court documents, Dr. William Alvear (69) unlawfully distributed Hydrocodone without a legitimate medical purpose and outside the usual course of professional practice. Instead, he prescribed opioids when a patient offered to pay him cash. In addition, Alvear unlawfully distributed and dispensed Alprazolam, common brand name Xanax. Alprazolam is a Schedule IV controlled substance that also has the potential for abuse and can lead to psychological or physical dependence. Hydrocodone, a Schedule II controlled substance, has a high potential for abuse and can lead to severe psychological or physical dependence. In November 2023, following a six-day jury trial, Alvear was found guilty of three-counts of distributing a controlled substance – Schedule II and five-counts of distributing or dispensing a controlled substance – Schedule IV. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Evans made the announcement. The FBI investigated the case. Assistant United States Attorneys for the District of Nevada prosecuted the case. ###


title: Detroit Man Sentenced to More than 10 Years in Prison for Federal Drug Crime

body_text: HUNTINGTON, W.Va. – Michael Dayshawn Harris, also known as “Polo,” 31, of Detroit, Michigan, was sentenced today to 10 years and one month in prison, to be followed by three years of supervised release, for distribution of quantities of a mixture and substance containing a detectable amount of methamphetamine and fentanyl. According to court documents and statements made in court, on October 6, 2022, Harris sold approximately 29 grams of methamphetamine and a quantity of fentanyl to a confidential informant in Huntington. Harris admitted to the transaction and further admitted to arranging it beforehand when the confidential informant called him earlier that day. Co-defendant Desmond Devon Magee, also known as “Rich,” 28, of Detroit, was sentenced on May 22, 2023, to four years in prison, to be followed by three years of supervised release, after pleading guilty to distribution of a quantity of a mixture and substance containing a detectable amount of methamphetamine. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-210. ###


title: Founder and Chief Executive Officer of Injectable Stem Cell Product Manufacturer Sentenced for Distributing Unapproved Drug

component: Civil Division

body_text: The founder and chief executive officer of a California-based company that marketed stem cell-based products allegedly linked to 19 hospitalizations was sentenced today to 36 months in prison following his conviction under the Federal Food, Drug and Cosmetic Act. John W. Kosolcharoen, 53, most recently of Orange County, California, pleaded guilty last month in the U.S. District Court for the Central District of California to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in federal custody on a separate, unconnected conviction. The court set a restitution hearing for Dec. 3. According to court documents, beginning in 2016, Kosolcharoen created two companies, Liveyon LLC and Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.” In pleading guilty, Kosolcharoen admitted that he and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness. At sentencing, the government alleged that sales of Liveyon products generated approximately $21.6 million in revenue between 2017 and 2018. “Misleading the public about the safety and effectiveness of purported cures and treatments is illegal,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to prosecute individuals who market potentially dangerous products for personal gain.” “Exploiting the hopes of patients suffering from serious illnesses is not merely greedy, it’s cruel,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to aggressively prosecute those who take advantage of victims’ fears and anxieties to line their pockets.” In recent years, the Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce. In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. The government alleged in court filings that an investigation by CDC, with the assistance of state and local health departments, found that the stem cell products were linked to the hospitalization of 19 patients in eight different states. The FDA’s Office of Criminal Investigations, FBI, Amtrak Office of Inspector General, Defense Criminal Investigative Service, Department of Health and Human Services Office of Inspector General, Department of Labor Employment Benefits Security Administration and the California Department of Health Care Services investigated the case. Assistant U.S. Attorneys Mark Aveis and David Chao for the Central District of California and Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Civil Division’s Consumer Protection Branch handled the case. Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch .