title: Rebecca C. Lutzko Announces Resignation from Service as U.S. Attorney for the Northern District of Ohio

component: USAO - Ohio, Northern

body_text: CLEVELAND – United States Attorney for the Northern District of Ohio Rebecca C. Lutzko announced today that she will step down as the region’s chief federal law enforcement officer, effective 11:59 p.m. on Jan. 3, 2025. Under the Vacancies Reform Act, First Assistant U.S. Attorney Carol M. Skutnik will become the Acting United States Attorney, effective midnight on Jan. 4, 2025. Ms. Lutzko was nominated by President Joseph R. Biden on June 7, 2023 and, while pending Senate confirmation, was installed as the interim U.S. Attorney on June 9, 2023, by the United States District Judges for the Northern District of Ohio. “It has been the single greatest honor of my career to lead the Office and serve the people of northern Ohio as their United States Attorney,” said U.S. Attorney Lutzko. “I thank President Biden, Senators Sherrod Brown and J.D. Vance, Attorney General Merrick Garland, and the Judges of our District Court for giving me that opportunity.” During her tenure as U.S. Attorney, Ms. Lutzko led an office of approximately 175 prosecutors, civil litigators, and administrative and support personnel in its mission to enforce federal civil and criminal laws, advocate for crime victims, and represent the interests of the United States, its agencies, and their employees in court. In this role, she oversaw prosecutions involving violent crime and organized gang activity, financial crime, national security matters, public corruption, hate crimes and other civil rights violations, drug trafficking organizations, child exploitation, cybercrime, and firearms crimes, among others. On the civil front, she oversaw investigations and the filing of affirmative actions in areas as diverse as protecting the environment, ensuring fair housing, protecting disability rights, and addressing healthcare frauds and controlled substance violations in which the Office recovered tens of millions of dollars in waste, fraud, and abuse. She hired several new civil and criminal Assistant U.S. Attorneys (AUSA), created the district’s first e-Litigation unit, and implemented numerous internal training, efficiency, and accountability measures. “I am incredibly proud of the work our office has undertaken and our employees’ collective efforts to do the right thing, the right way, for the right reasons. We have been strategic in the types of cases we have pursued to maximize the positive impact to the communities that we are honored to serve, and we have held ourselves to standards of excellence and integrity in pursuing those cases,” said U.S. Attorney Lutzko. “We have accomplished much in a limited amount of time, despite challenging budgetary constraints. I have dedicated almost 20 years of my career to prosecuting criminals and seeking justice so that life can be better for Ohioans. I am confident that our Office’s many career public servants will continue to uphold the Department of Justice’s norms, making impartial, reasoned, and fair decisions to obtain justice. Credit for our successes during my tenure belongs to them, and to our federal, state, and local law enforcement officers for their unending dedication and redoubled efforts to help our Office combat both violent and non-violent crimes to keep our citizens and their neighborhoods safe and free from financial harm, to allow our citizens to enjoy their civil rights, and to prevent additional crime before it happens.” The Northern District of Ohio covers the state’s 40 northern counties and is home to more than 5.7 million people. The main office is in Cleveland, with branch offices located in Akron, Toledo, and Youngstown. Under U.S. Attorney Lutzko’s leadership, the Office has achieved noteworthy success in criminal and civil cases. Even with her focus on strategic case selection emphasizing impact over numbers, the Office remained one of the most productive large U.S. Attorney’s Offices in the nation according to several different metrics. Some of the more notable cases and outreach efforts include the following: Public Safety & Violent Crime Reduction U.S. Attorney Lutzko has prioritized combatting violent crime and promoting public safety, encouraging the use of data-driven strategies to identify and focus on the most significant drivers of crime and through purposeful case selection and charging decisions, with the goal of prosecuting cases that will have significant, positive community impact. She and her staff worked closely with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and other law enforcement partners to open a new Crime Gun Intelligence Center (CGIC) in the District in 2024. Located in a single facility, a team of firearm evidence examiners, intelligence analysts, and investigators can now rapidly collect, analyze, and share information about guns used in violent crimes. The CGIC serves as a hub for federal and local law enforcement to investigate and prevent gun violence in the region, utilizing cutting-edge technology and tracing systems to rapidly develop and pursue investigative leads to identify, prosecute, convict, and lock up the bad actors who commit violent crimes and remove “crime guns” from the streets faster, so neither continue to endanger innocent people in neighborhoods throughout Northern Ohio. Notably, violent crime rates have dropped significantly in Northern Ohio this year. Some other notable investigations and cases include: Violent Crime Reduction Operation – After a three-month, violent crime reduction initiative in the summer of 2023, a total of 84 defendants were charged in connection with firearms-trafficking, straw purchasing firearms, narcotics, conspiracy, and other firearms offenses. The investigation was led by the ATF and resulted in the seizure of more than 255 firearms, of which 47 were traced back to other crimes. The seizure also included 17 untraceable firearms, also known as “ghost guns.” Seventy defendants were charged federally and the remaining 14 faced state charges. Sixty of those entered guilty pleas, 49 of which have been sentenced to date. Of the 14 defendants charged in the state, 12 have pled guilty and been convicted and sentenced. Noteworthy prison sentencings for charged federal firearms violations include Darvell Jackson, sentenced to 168 months; Cortez Buggs sentenced to 132 months; Kenneth Smith sentenced to 135 months; Darion Shelton, sentenced to 100 months; and Willie Earl Jackson sentenced to 84 months. U.S. v. Mullins, et al. – Twenty-one members and associates of a Cleveland-based, violent street gang known as the Fully Blooded Felons were arrested and charged beginning in December 2023 and continuing into 2024. The defendants are alleged to have committed numerous federal crimes, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, murder in aid of racketeering, kidnapping in aid of racketeering, assault in aid of racketeering, firearms violations, conspiracy, and drug trafficking. As the indictment alleges, the gang styled themselves after a Mafia crime family, conspired to commit numerous violent acts, and operated an open-air illegal drug market in Cleveland’s Cedar Central neighborhood for years. U.S. v. McKillips – A Sandusky man was sentenced to 41 months in prison after his guilty plea to interstate communication of threats and unlawful possession of a machine gun. He made multiple online threats to harm or kill law enforcement officers, including by posting a photo of himself aiming a semi-automatic rifle at an officer parked in a police vehicle down the street. U.S. v. Sledge, et al. – In October 2024, an Ohio father-son team were indicted for the murder of an on-duty U.S. Postal Service mail carrier. The Office has also separately brought several other indictments and/or obtained convictions for defendants throughout the district who have robbed mail carriers to steal their blue-mailbox keys and mail. U.S. v. Matheny – On Oct. 26, 2022, a bank in Lorain, Ohio, was robbed by a man armed with a small silver semi-automatic firearm. The teller reported that the suspect entered, approached the counter, and slid a note under plexiglass indicating that it was robbery, that he had a gun, not to touch the alarm, and to hand over all fifty, hundred, and twenty-dollar bills. When the teller retrieved the cash from her drawer and handed it to him, he walked away with more than $4,000 from the bank. The Lorain Police Department investigated anonymous tips and reviewed surveillance videos. Two days later, Matheny was located and then arrested after a police chase. A bookbag containing a loaded firearm, fentanyl, cocaine, and two cellphones were seized from Matheny. Matheny was convicted on all counts after a five-day trial in April 2024. In August, he was sentenced to 78 months in prison, plus 84 months consecutive for brandishing a firearm in during the course of a robbery, for a total of 162 months. U.S. v. Hansen – After he pled guilty to committing three, armed bank robberies in Michigan and Ohio, a Toledo man was sentenced to 348 months in prison and ordered to pay $44,908.73 in restitution. In the Ohio robbery, Hansen aimed a pistol at bank employees and customers and forced them to lie down on the floor. After growing frustrated with the speed at which tellers were retrieving the money he demanded, Hansen grabbed money containers from a bill-dispensing machine and fled with approximately $82,000. Officers apprehended Hansen a short time later. In addition to bringing criminal prosecutions to combat violent crime, U.S. Attorney Lutzko and USAO staff also engaged in affirmative public outreach activities in an effort to promote public safety. For example, she brought together local community organizations and the Ohio Adult Parole Authority to work with the USAO to identify individuals recently released from state prison who were deemed at high-risk for committing future violent crime, but amenable to making positive change in their lives. That partnership is continuing with a pilot program that pairs those individuals with needed services and hands-on mentors to assist participants in charting a new course for themselves that avoids criminal conduct. Taking a different tack, under U.S. Attorney Lutzko’s direction, the USAO also led a “Safe Storage” awareness campaign to highlight firearms safety and help prevent accidents, self-harm, theft, and other unauthorized use of firearms. Thus far, the campaign has included public in-person events, public service announcements, and information dissemination. Additional events are scheduled for 2025. Healthcare Fraud As chief law enforcement officer in a district with multiple, sophisticated healthcare providers and facilities, U.S. Attorney Lutzko prioritized fighting fraud, waste, and abuse in federal healthcare programs through a combination of robust criminal and civil enforcement efforts. The Office’s notable criminal convictions and sentences and civil settlements and judgments obtained during her tenure include the following: U.S. v. Singh – In February 2024, a jury convicted Ankita Singh, M.D., of six counts of healthcare fraud for signing false orders for orthotic braces that patients had never requested and did not need. Although she never saw, examined, or even spoke to these patients, she signed more than 11,000 such prescriptions for approximately 3,000 Medicare beneficiaries, causing the submission of more than $8 million in fraudulent bills to Medicare for devices that were not medically necessary. Singh was sentenced to 26 months in prison, followed by two years of supervised release, and ordered to pay $4,470,931.02 in restitution. U.S. v. Bailey, et al. – From 2017 through 2020, 21 individuals involved with the healthcare nonprofit entity Eye for Change Youth and Family Services, Inc., conspired and manipulated billing, falsified records, and used the identities of clients without authorization to bill Medicaid. Twenty defendants pled guilty, while one, Eric King, was convicted at trial in August 2023 for his role in the scheme, and for continuing to engage in similar fraudulent conduct at another provider. King and the scheme’s leader, Alfonso Bailey, were each sentenced to 36 months in prison (in Jan. 2024 and June 2023, respectively). The defendants were ordered to pay $4.5 million in restitution, with more than $4.3 million forfeited from Eye for Change and Bailey. Investigation of the Cleveland Clinic Foundation – The Cleveland Clinic Foundation agreed to pay $7,600,000 to resolve allegations that it violated the False Claims Act by submitting grant applications for health-related-research funding to the National Institutes of Health that contained materially false information. U.S. ex rel. White, et al. v. Rite Aid Corp., et al. – Rite Aid Corporation and 10 subsidiaries and affiliates agreed to pay $7.5 million to settle the government’s allegations of filling medically unnecessary prescriptions under the False Claims Act and Controlled Substances Act. U.S. ex rel. Rzeszutko v. Elixir Insurance Co., et al. – Three Rite-Aid subsidiaries, Elixir Insurance Company, RX Options LLC, and RX Solutions LLC, agreed to a $101 million settlement that resolved allegations that they violated the False Claims Act when they did not accurately report drug rebates to the Medicare program. U.S. v. Gerber, et al. – In August 2024, a federal court permanently enjoined Ohio physician Gregory Gerber, M.D., from prescribing opioids and other controlled substances, and ordered him to pay $4.7 million in a civil case alleging Controlled Substances Act and False Claims Act violations. Gerber also pled guilty to criminal drug-trafficking charges for writing numerous medically unnecessary prescriptions for addictive painkillers, including over 800 illegitimate prescriptions for a drug he was being paid to promote. In March 2024, Gerber was sentenced to 42 months in prison and ordered to pay $861,892.13 in criminal restitution. Other Fraud Schemes & Public Corruption In addition to the serious long-term effect that financial crimes may have on individual victims, such crimes undermine the well-being of financial institutions and harm our entire community. Similarly, public corruption undermines the public’s confidence in the public institutions and officials central to our democratic society. Accordingly, during U.S. Attorney Lutzko’s tenure, the Office both criminally prosecuted such crimes and engaged in public outreach to prevent such crimes from occurring in the first place. Lutzko also served as a member of the White Collar Crime Subcommittee of the Attorney General’s Advisory Committee (AGAC). Notable efforts and case success in these areas included the following: Elder Fraud Outreach – U.S. Attorney Lutzko and her staff engaged in several outreach events to bring awareness to senior citizens about the dangers of financial scams. Government Supply Chain and Procurement Fraud Task Force – In 2024, the Office stood up this task force, bringing together white collar crime AUSAs, homeland security investigators, and numerous other federal investigative agencies to address large-scale supply chain and procurement fraud in government contracting, prioritizing fraud in connection with military, law enforcement, and public safety. A first of its kind in this District, the task force will focus on government contractors who provide faulty, counterfeit, or otherwise dangerous products, such as substandard medications or supplies purchased by the Veterans Administration, counterfeit or faulty electronics or software provided to NASA, or similar products supplied to the military. U.S. v. Eid – A Perrysburg man was sentenced to 30 months in prison for filing false tax returns and engaging in wire fraud that defrauded educational and government entities. He admitted to falsifying his income for his children to qualify for aid packages to colleges and private schools. U.S. v. Page – A Toledo man who described himself as a “social-justice activist” was sentenced to 42 months in prison after a jury convicted him of wire fraud and money laundering. Page defrauded donors of more than $450,000 that they collectively gave to his nonprofit organization, “Black Lives Matter of Greater Atlanta,” based on Page’s false representations about how their money would be spent. U.S. v. Khan – In November 2023, a Michigan man was sentenced to 97 months in prison after earlier pleading guilty to bank fraud and attempted tax evasion in connection with a massive check-kiting scheme involving numerous banks. He was also ordered to pay more than $150,000,000 in restitution to the victims of his bank fraud and the IRS, and to serve three years of supervised release once released from prison. U.S. v. Pounds – A Toledo-area man was sentenced to 94 months in prison after pleading guilty to conspiracy to commit wire fraud, wire fraud, and money laundering in a scheme to obtain Small Business Administration (SBA)-financed loans from the Economic Injury Disaster Loans program and the Paycheck Protection Program under false pretenses. He was also ordered to pay $4,239,940.43 in restitution to the SBA. Fresh Mark Inc. Investigation – An Ohio meat processing company entered into an agreement with the USAO for a hiring manager’s involvement in an identity theft scheme and making false statements on government forms. Under the terms of the agreement, the company paid more than $3.7 million to the federal Crime Victims Fund in November 2024 and agreed to abide by compliance-reporting requirements for a two-year period. U.S. v. Spivak, et al. – A jury convicted two men for conspiring to artificially inflate prices on “penny stocks” being sold to investors. After a trial that proceeded in two stages for over four weeks in August and September 2024, the two were found guilty of conspiracy to commit securities fraud. Spivak was also found guilty of two counts of wire fraud at trial, then pled guilty to four other counts of wire fraud, two counts of securities fraud, and a separate count of conspiracy to commit securities fraud. His codefendant was found guilty of a securities fraud conspiracy and one count of securities fraud in the second stage of trial. Two other defendants also pled guilty. U.S. v. Barr – A Pennsylvania man was sentenced to 57 months in prison after pleading guilty to an organized scheme that defrauded the Lucas County Auditor of more than $622,000. From March 2018 through November 2020, he conspired with others to obtain money by pretending to be legitimate vendors with which the county was approved to do business. U.S. v. Graham, et al. – Two Ohio men were charged in a bribery scheme in which a municipal prosecutor allegedly agreed to help a criminal defendant with his pending cases in exchange for auto repair work. According to the indictment, Graham was a prosecutor for the Warren Municipal Court. The other defendant had two criminal cases pending in the same court. It is alleged that in October 2019, Graham assisted the codefendant with his criminal cases, and in return, he performed repairs to Graham’s truck. U.S. v. Cheney et al. – Six defendants pled guilty and were sentenced to a total of 355 months for a COVID-19 fraud conspiracy. From March 2020 to August 2021, they obtained nearly $3,000,000 in federal Pandemic Unemployment Assistance benefits using other people’s identities to apply for benefits in several states. The defendants, all residents of Northeast Ohio, were sentenced to numerous years in prison. Dates for future proceedings for a seventh defendant are yet to be determined. Civil Rights U.S. Attorney Lutzko led a comprehensive approach dedicated to protecting the civil rights of Ohioans through criminal and civil enforcement actions, community outreach, and a strong partnership with the Department of Justice (DOJ) Civil Rights Division. She also served as a member of the AGAC’s Civil Rights Subcommittee. The Office’s efforts included the following: U.S. v. Penny – In January 2024, an Ohio man was sentenced to 18 years in prison followed by three years of supervised release for firebombing a church and attempting to burn it down because the church supported the LGBTQ+ community. He was convicted of violating the Church Arson Prevention Act, a hate-crime statute, and of using fire and explosives to commit a felony. U.S. v. Durant – In April 2024, a woman was sentenced to two years of probation and fined $2,000 after pleading guilty to a misdemeanor charge of intentionally damaging a reproductive healthcare center and violating the Freedom of Access to Clinic Entrances (FACE) Act. She did so after learning that the clinic offered pregnancy counseling, free pregnancy testing, and ultrasounds, but not abortion services. Investigation of Case Western Reserve University – The USAO entered into a settlement with a private Ohio university to resolve Title IX violations. The agreement requires extensive reforms to ensure the University enacts appropriate response protocols for students and employees to report sex discrimination and to provide adequate support to those affected. U.S. v. Citizens for a Pro-Life Society, Inc. et al. – A federal lawsuit was filed against two organizations and seven individuals, alleging they violated the FACE Act on two days in June 2021 by physically obstructing entrances to reproductive health facilities. U.S. v. Pedaline and TLP LLC – A federal lawsuit was filed against an owner and manager of residential rental properties, in Youngstown, Ohio, for engaging in sexual harassment in violation of the Fair Housing Act. The complaint alleged that Pedaline sexually harassed female tenants at properties that he owned or managed in Youngstown since 2009. Pedaline entered into a consent decree with the USAO and agreed to pay a $10,000 civil penalty and $189,000 to aggrieved persons allegedly harmed by the defendant’s actions. Protecting Places of Worship Forum – More than 150 leaders from different faiths attended the “Protecting Places of Worship” forum, sponsored by the U.S. Attorney’s Office, FBI-Cleveland, and the DOJ’s Community Relations Service. U.S. Attorney Lutzko gave opening remarks, and legal and security experts provided information about how to identify, report, and protect against hate crimes. Interfaith Council Initiative – The USAO reestablished an interfaith council to bring together members of our area’s diverse faith communities to address issues that are important to them, including the protection of Civil Rights and the freedom to worship without fear. Ms. Lutzko and USAO staff also visited several different houses of worship and faith-community gatherings during her tenure as part of the Office’s continued outreach efforts. The USAO partnered with the Beachwood City School District and DOJ’s Community Relations Service to hold a Fall 2024 program under the DOJ’s “United Against Hate” umbrella, wherein representatives from law enforcement, community organizations, and members of the public engaged in a discussion about practical strategies and skills to constructively address and resolve conflicts and to prevent acts of hate. Also in connection with the Department’s “United Against Hate” initiative, the USAO sponsored a community engagement program in the Fall of 2023 at The LGBTQ Center in Lakewood. It addressed identifying and reporting hate crimes and related civil rights violations. Voting with a Disability – In February 2024, U.S. Attorney Lutzko took part in an online forum to highlight concerns and address issues encountered by voters with disabilities. Advocacy groups and others from throughout the state listened to the presentation and identified areas of concern. This event was held in partnership with the USAO for the Southern District of Ohio. Pride in CLE – Ms. Lutzko and USAO staff marched alongside thousands of community members to support diversity, acceptance, and inclusion for all. Child Exploitation Under U.S. Attorney Lutzko’s leadership, the Office continued its strong tradition of prosecuting crimes against children, who are among our most vulnerable of victims. Notable case examples include: U.S. v. Zacharias – In November 2023, a former priest was sentenced to life in prison after a jury found him guilty of sex trafficking three victims who he first met at a Catholic school in Toledo in 1999. The evidence presented at trial showed that Zacharias used his position of authority as a spiritual leader to groom the boys and grow close with their families before ultimately coercing the victims into engaging in commercial sex acts. Zacharias’s abuse continued for years, assisted by his exploiting his victims’ opioid addictions, which they had developed while taking such drugs to cope with the abuse. U.S. v. Patterson – A Canton man was sentenced to 26 years in prison after pleading guilty to multiple charges including sexual exploitation of children, receipt and distribution of visual depictions of real minors engaged in sexually explicit conduct, and possession of child sexual abuse materials (CSAM), also referred to as child pornography. U.S. v. Walker – After FBI agents received a lead that a sexually explicit picture of a two-year old was likely a child residing in Northeast Ohio, agents identified the child and discovered that she spent time at an in-home daycare in Parma, Ohio, where Walker was often present. After he pled guilty to sexual exploitation and child pornography crimes for sexually abusing the child, filming it on his phone, and distributing those videos, Walker was sentenced to 16 years in prison. U.S. v. Deitsch – In February 2024, an Ohio man was sentenced to 17 and a half years in prison after he pled guilty to coercion and enticement of a minor and transportation of a minor across state lines for illicit sexual activity. A month after his release from prison for the abduction of another female, Deitsch traveled to Illinois to pick up a 15-year-old girl who he had met online, then brought her back to Ohio and engaged in sexual activity with her. After serving his prison term, he was also ordered serve 25 years of supervised release. U.S. v. Wilcoxon – A Defiance man was sentenced to 30 years in prison in October 2023 after pleading guilty to attempted sexual exploitation of a minor, coercion and enticement of a minor, and receipt and distribution of child sexual abuse materials. According to court documents, he initiated online chats with a purported 13-year-old and sought to meet with her to have sex. A search of his home uncovered more than 11,000 images of child sexual abuse in his possession. National Security & Cybercrime National security remained a top priority of all U.S. Attorney’s offices, including the Northern District of Ohio. Further, the Office continued to be a recognized leader in cybercrime investigations and prosecutions, seeking to apprehend and punish criminal actors who hide behind their computer screens to wreak immeasurable damage worldwide. Office achievements under U.S. Attorney Lutzko’s leadership included the following: U.S. v. John Doe a.k.a. “Brain” – In August 2024, the Office filed a criminal complaint against a defendant known as “Brain,” believed to be based in Europe and responsible for building a multi-national ransomware organization known as Radar. This complaint sought injunctive relief to prevent additional attacks on victims from occurring and authorized disruption of the ransomware by disabling foreign and domestic domain names, servers, and IP addresses associated with the criminal enterprise. Victims include businesses and organizations located in more than three dozen countries throughout the world, including a trade union and a manufacturing company located in the northern district of Ohio. The FBI estimates monetary losses incurred by individuals and organizations to be in the millions, and the investigation remains open. U.S. v. Vidic – A Croatian man living in Parma Heights was sentenced to three years in prison for possessing a green card that he fraudulently obtained by concealing that he had been charged with a war crime in Croatia before immigrating to the United States. He also falsely stated that his only past military service was in the Yugoslav Army from 1988 to 1989, when, in fact, he fought with the Serb Army of Krajina and its predecessors during the civil war in the former Yugoslavia from 1991. Trickbot Malware Conspiracy – Russian national Vladimir Dunaev pled guilty in November 2023 to crimes related to developing and deploying worldwide a malicious software program used to launch cyberattacks against American hospitals, schools, and businesses, including 10 in northern Ohio. Dunaev was responsible for causing those Ohio entities $3.4 million in losses based on Trickbot ransomware attacks. He was sentenced to 64 months in prison in January 2024. A co-conspirator pled guilty earlier and was sentenced in June 2023. Drug Trafficking U.S. Attorney Lutzko emphasized prosecuting and dismantling multi-level drug-trafficking organizations during her tenure, particularly those with international connections and/or that peddled highly toxic poisons such as fentanyl on our communities streets. The Office had numerous successes combatting the scourge of drug-trafficking, including the following examples: U.S. v. Ojeda-Elenes et al. – Four individuals, including two with direct connections to the Sinaloa Cartel based in Culiacán, Mexico, received sentences in 2024 ranging from two and a half years to 19 years in prison for a drug conspiracy involving more than 240 pounds of fentanyl and nearly 100 pounds of cocaine. U.S. v. Whittaker, et al. – Fifteen people in Lorain County were charged in a 19-count indictment after authorities seized large quantities of fentanyl that included more than 42,000 thousand fentanyl pills. U.S. v. Hovanec, et al. – A woman was sentenced to 40 years in prison after pleading guilty to multiple charges, including conspiring to distribute a controlled substance that resulted in the death of her husband (she intentionally injected him with that substance). Her boyfriend and mother were also implicated in the case and sentenced to 18 and 10 years prison, respectively. U.S. v. Johnson, et al. – Twenty members of a drug trafficking operation operating in Sandusky, Ohio, were charged in a 63-count indictment and alleged to be responsible for trafficking distribution quantities of controlled substances in the Greater Sandusky area, including fentanyl and fentanyl analogues in both powder and counterfeit pill form, as well as methamphetamine and cocaine. U.S. v. May – A man was sentenced to more than 14 and a half years in prison after pleading guilty to conspiracy to distribute drugs and distributing drugs. He was also ordered to serve 15 years of supervised release following imprisonment. According to court documents and court records, he led a drug conspiracy in the Youngstown area that distributed fentanyl, cocaine, cocaine base, and heroin. U.S. v. Lumbus, et al. – Eleven people were charged in an international drug trafficking conspiracy that involved the importation of fentanyl, synthetic opioids, and synthetic cannabinoids into the United States, and the distribution of those drugs in Ohio and other states, including in Ohio’s prisons. U. S. Attorney Lutzko chaired the Office’s Heroin-Opioid Task Force, partnering with local law enforcement entities and service providers to address the opioid epidemic in Cuyahoga County. Under her leadership, the Office recently spearheaded a successful effort to more quickly connect persons who have experienced a recent overdose with community intervention organizations that assist willing participants begin their journey toward sobriety. Financial Collections/Forfeiture As U.S. Attorney Lutzko recently noted, “Asset forfeiture is a vital tool” used “to punish criminals and financially deter, disrupt, or dismantle criminal activity and criminal organizations. When we take the assets used to commit, or gained as the result of crime, we deprive criminals of the tools they need to engage in criminal activity and, indeed, their reason for committing such crimes in the first place. Additionally, forfeiting criminal assets allows us to return money lost by victims who were scammed by criminals in deceitful and fraudulent schemes or otherwise harmed by crime.” In FY 2024 alone, the Office forfeited over $7.7 million in criminal assets, with more than $50 million of assets still pending future forfeiture. In addition, the Office continued its tremendous success collecting debts owed to the government based on false claims, environmental damage, controlled-substance violations, and the like, to return that money to the U.S. taxpayers, and further, recovering money for crime victims to make them whole. In FY 2024, the Office’s Financial Litigation Program collected nearly $28 million in victim restitution and taxpayer recoveries of money improperly taken through fraud, waste, and abuse. Protecting Our Environment & Animal Welfare The Office worked closely with the DOJ’s Environmental and Natural Resources Division to protect the environment for our district’s residents. Notable examples include: U.S. v. Norfolk Southern Railway Co., et al. – The Norfolk Southern Railway Company agreed to a settlement valued at over $310 million to hold it accountable, address, and pay for the environmental damages caused by the Feb. 3, 2023, train derailment in East Palestine, Ohio, and fund health monitoring and mental health services for the surrounding communities, and railway safety measures. U.S. v. Shepherd – A Kenton, Ohio, man was sentenced to probation, community service, a $5,000 fine, and to pay $22,508.60 in restitution after pleading guilty to dumping over 7,000 gallons of hazardous pollutants into the Scioto River, killing over 43,000 fish and contaminating an 18-mile stretch of the river. U.S. v. Mt. Hope Auction – A civil complaint filed in September against Mt. Hope Auction alleged that it placed animals in serious danger and violated the Animal Welfare Act (AWA). At the time of the complaint’s filing, Mt. Hope had been cited for 69 AWA violations in less than two years, including repeated violations for failing to provide veterinary care to sick or injured animals. U.S. Department of Agriculture (USDA) inspectors observed a calf unable to stand, with its legs splayed in an abnormal position and other animals that were so emaciated that their ribs, scapula, pelvic bones, and individual vertebrae were visible. Mt. Hope Auction entered into a consent decree with the USAO and agreed not to deal or exhibit AWA-regulated animal without a license and allow the USDA access to ensure compliance. If Mt. Hope Auction obtains a new USDA license within the next three years, it agrees to a two-year probationary period. Career History Ms. Lutzko first joined the Office as a career prosecutor in 2005. As an Assistant United States Attorney, she prosecuted complex criminal cases involving a range of federal violations, including money laundering; campaign-finance violations; public corruption; multiple types of fraud schemes, including healthcare, tax, government-program, investment, and corporate frauds; and complex narcotics conspiracies, from illegal “street” drugs to illegal online pharmacy operations and other doctor-involved drug trafficking. She served as Chief of the Criminal Division’s Appeals Unit between January 2017 and June 2023, where she oversaw all briefing and arguments by the Office before the U.S. Court of Appeals for the Sixth Circuit. She also served as Deputy Chief of the Major Fraud and Corruption Unit from 2010 to 2011. Before becoming an Assistant U.S. Attorney, Ms. Lutzko was an associate at BakerHostetler in Cleveland from 1998 to 2005. She also served as a law clerk from 1997 to 1998 for Judge Alice M. Batchelder of the United States Court of Appeals for the Sixth Circuit. Ms. Lutzko graduated cum laude from the Georgetown University Law Center in 1997 where she earned her Juris Doctor degree with distinction. She graduated magna cum laude in 1993 from Boston University where she earned her Bachelor of Arts degree.


title: Five gang members sentenced to prison for armed robbery spree

component: Federal Bureau of Investigation (FBI)

body_text: NORFOLK, Va. – Five men affiliated with the United Blood Nation gang have been sentenced to prison for their roles in a series of armed robberies of convenience stores in Virginia Beach and Norfolk. According to court documents, on January 14, 2022, Harold Edward Spencer III, 34, of Virginia Beach, and Kareem Doyle Ross, 34, of Newport News, began a two-month robbery spree when they robbed a Citgo Mini Mart in Virginia Beach. Spencer and Ross entered the store and pointed firearms at employees, taking money, lottery tickets, and cigarettes. Later that day, Spencer and Ross, while still armed, robbed a Circle D Food Mart in Virginia Beach. During the robbery, Spencer fired his handgun twice at a fleeing customer. On Feb. 7, 2022, Spencer, Ross, and a third individual robbed an Express Food Mart in Norfolk. On Feb. 19, 2022, Spencer, Ross, and Marvin Eugene Lockhart Jr., 34, of Virginia Beach, robbed a Crown Gas Station in Virginia Beach. During both robberies, all of the conspirators pointed firearms at employees and customers and stole money and cigarettes. During the Express Food Mart robbery, the men also took lottery tickets and cigars. On March 5, 2022, Spencer, Ross, and Roshaun Devon Griffin, 36, of Virginia Beach, robbed an Arrowhead Food Mart in Virginia Beach, again taking money, cigarettes, and lottery tickets. During the robbery, Spencer and Ross pointed firearms at an employee. On March 12, 2022, Spencer, Ross, and Lockhart robbed a Jr. Market in Norfolk, taking money and lottery tickets. During the robbery, all three pointed firearms at an employee. On March 18, 2022, Ross, Spencer, Lockhart, Griffin, and Jon Demetrious Jacques Morgan, 34, of Portsmouth, attempted to rob a Tiger Mart in Virginia Beach. During the attempted robbery, Ross, Lockhart, Griffin, and Morgan approached the Tiger Mart as a group while Spencer remained in a vehicle nearby as a getaway driver. Ross, Lockhart, Griffin, and Morgan aborted the robbery and ran back to the getaway vehicle. The group then attempted to flee from the police. As they attempted to escape, the conspirators threw from the car the firearms they had possessed during the robbery. Virginia Beach Police used spike strips to disable the vehicle and all five conspirators were arrested. On Oct. 4, 2022, Griffin pled guilty to conspiracy to interfere with commerce by means of robbery; interference and attempted interference with commerce by means of robbery; and using, carrying, and brandishing a firearm during and in relation to a crime of violence. On June 9, 2023, Griffin was sentenced to 15 years and four months in prison. On Oct. 14, 2022, Ross pled guilty to conspiracy to interfere with commerce by means of robbery; interference and attempted interference with commerce by means of robbery; and using, carrying, and brandishing a firearm during and in relation to a crime of violence. On June 13, 2023, Ross was sentenced to 27 years and one month in prison. On Dec. 13, 2022, Spencer and Morgan were convicted at trial. Spencer and Morgan were convicted of conspiracy to interfere with commerce by means of robbery; attempted interference with commerce by means of robbery; and being a felon in possession of a firearm. Spencer was also convicted of using, carrying, and brandishing a firearm during and in relation to a crime of violence. On Nov. 7, 2023, Morgan was sentenced to seven years and three months in prison and Spencer was sentenced to 42 years and three months in prison. On Oct. 6, 2022, Lockhart pled guilty to conspiracy to interfere with commerce by means of robbery; interference and attempted interference with commerce by means of robbery; and using, carrying, and brandishing a firearm during and in relation to a crime of violence. Lockhart, who left a family member’s birthday party to commit one of the armed robberies, was sentenced today to 22 years and one month in prison. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after Lockhart’s sentencing by U.S. District Judge Arenda Wright Allen. Assistant U.S. Attorneys John F. Butler and Joseph E. DePadilla prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-106.


title: Informational: Federal Court arraignments

component: USAO - Montana

body_text: The U.S. Attorney’s Office announced that the following persons were arraigned or appeared recently before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt: Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Jan. 2 was: Jeffrey Thomas Maki, 40, of Billings, on charges of bank fraud and aggravated identity theft. If convicted of the most serious crime, Maki faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release on the bank fraud charge and a mandatory minimum of two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised release on the identity theft charge. Maki was detained pending further proceedings. The FBI and Billings Police Department conducted the investigation. PACER case reference. 24-171. Appearing on Dec. 23, 2024 was: Ricardo Alberto Salazar Contreras, 33, unknown residence, on charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Contreras faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm charge. Contreras was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force, FBI and Montana Highway Patrol conducted the investigation. PACER case reference. 24-169. Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Dec. 30, 2024 was: Felipe Michael Garza, 31, of Washington, on charges of possession with intent to distribute methamphetamine and fentanyl, possession of a firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious crime, Garza faces a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug charge and a mandatory minimum of five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the charge of possessing a firearm in furtherance of drug trafficking. Garza was detained pending further proceedings. The Drug Enforcement Administration and Homeland Security Investigations conducted the investigation. PACER case reference. 24-65. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


title: Defense Contractor Agrees To Pay $628,000 To Settle False Claims Act Allegations

component: USAO - New Jersey

body_text: NEWARK, N.J. - A Vermont company will pay $628,328 to resolve allegations that it sold substandard items to the United States Army, U.S. Attorney Philip Sellinger announced today. The settlement resolves allegations that from July 13, 2018 through November 21, 2019, Live Wire, LLC made false claims in conjunction with contracts awarded to it by the United States Army. Live Wire contracted with the Army to sell electronic communications headsets and admits in the settlement that it provided non-compliant headsets that were not tested to the appropriate military specifications prior to their sale. Upon discovering that the headsets were not properly tested, Live Wire self-disclosed that information to the Government and cooperated with the investigation. U.S. Attorney Sellinger credited special agents of the United States Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, and special agents of the United States Army, Army Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Joel Kirch, for the investigation of the allegations against Live Wire. The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Health Care Fraud Unit in Newark. livewire.settlementagreement.pdf


title: Mingo County Man Pleads Guilty to Child Pornography Crime

component: USAO - West Virginia, Southern

body_text: CHARLESTON, W.Va. – Cameron Drake Newsome, 25, of Williamson, pleaded guilty today to production of child pornography. According to court documents and statements made in court, on or about November 1, 2019, Newsome used a cell phone to take two photographs of an approximately 3-year-old child in Williamson while the child was naked from the waist down and with the child’s genitals as the focal point of the images. Newsome admitted to taking the photographs and to storing them on an online file storage account. By storing those images in the online file storage account, Newsome transported the images in and affecting interstate commerce via the internet. Newsome further admitted that he stored numerous other images and videos in his online file storage accounts depicting minors, including prepubescent children, engaged in sexually explicit conduct. Newsome is scheduled to be sentenced on April 24, 2025, and faces a mandatory minimum of 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Newsome must also register as a sex offender. United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police Crimes Against Children Unit. United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is prosecuting the case. This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:24-cr-111.


title: Ardmore Resident Pleads Guilty To Federal Firearm Charge

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

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Michael Adrian Wrenn, age 36, of Ardmore, Oklahoma, entered a guilty plea to an Information of one count of Felon in Possession of a Firearm. The Information alleged that on December 9, 2023, Wrenn knowingly possessed a semiautomatic 9mm caliber pistol, after having been convicted of a crime punishable by a term of imprisonment exceeding one year. The charge arose from an investigation by the Ardmore Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Wrenn will remain in the custody of the United States Marshals Service pending sentencing. Assistant U.S. Attorney Jonathan E. Soverly represented the United States.


title: Foreign National Pleads Guilty To Unlawful Reentry

component: USAO - Oklahoma, Eastern

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Adelby Isloa Martinez Mendez, age 35, of Honduras, entered a guilty plea to one count of Unlawful Reentry of a Removed Alien. The Indictment alleged that on or about March 5, 2024, Martinez Mendez, an alien, was found in the United States after having been previously deported and removed on two prior occasions. The charges arose from an investigation by the Bryan County Sheriff’s Office and the U.S. Department of Homeland Security’s Immigration and Customs Enforcement Division. The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Martinez Mendez will remain in the custody of the United States Marshals Service pending sentencing.


title: Pittsburg County Resident Sentenced For Failure To Register As Sex Offender

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Lenard Ray Bond, age 31, of Hartshorne, Oklahoma, was sentenced to 21 months in prison, to be followed by five years of supervised release, for failing to register as a sex offender. The charges arose from an investigation by the United States Marshals Service Violent Crime Fugitive Task Force and the LeFlore County Sheriff’s Office. On May 8, 2024, Bond pleaded guilty to an Indictment of one count of Failure to Register as a Sex Offender. On August 8, 2014, Bond was convicted in the State of Oklahoma for Second Degree Rape and required to register as a sex offender. Bond was advised of the requirement to register as a sex offender and to inform law enforcement of any change in residency. According to investigators, between April 14, 2019, and March 15, 2024, Bond repeatedly failed to register as a sex offender despite moving into and living at various residences in and around Indian country within the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Bond will remain in the custody of the U.S. Marshals Service pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant U.S. Attorneys Emily Wittlinger and Jessica Bove represented the United States.


title: Activity in the U.S. Attorney's Office Recent Sentencings

component: USAO - Wyoming

body_text: Firearm Offenses Anthony William Glandt, 45, of Casper, WY, was sentenced to 8 months with 2 years of supervised release to follow, for being a felon in possession of a firearm. According to court documents, on November 17, 2023 Glandt was in possession of three firearms after law enforcement was called to the defendant’s residence for a possible domestic disturbance. Glandt is a previously convicted felon and is prohibited from possessing a firearm. Glandt was indicted on July 18. U.S. District Court Judge Alan B Johnson. imposed the sentence on December 20 in Casper. The Bureau of Alcohol, Firearms, Tobacco and Explosives and the Casper Police Department investigated the crime. Assistant U.S. Attorney Paige Hammer prosecuted the case. Case No. 20-CR-00112. Illegal Re-Entry of a Previously Deported Alien Hector Valencia-Cuevas, 33, of Mexico, was sentenced to time served plus up to 10 days for deportation proceedings with one year unsupervised release to follow and will be deported for illegal reentry into the United States. According to court documents, on Oct 04, Valencia-Cuevas was arrested in Rock Springs, WY for Delivery or Possess with intent to Deliver Narcotics. The defendant claimed to be a citizen of Mexico and agents with Immigration and Customs Enforcement (ICE) were contacted. They determined that Valencia-Cuevas had previously been removed from the U.S. on three occasions and had not applied for permission to reenter. Valencia-Cuevas was last removed on 06/24/2018. ICE investigated the crime, and Assistant U.S. Attorney Cameron J. Cook prosecuted the case. U.S. District Court Judge Kelly Rankin imposed the sentence on Jan 3, in Cheyenne. Case No. 24-CR-00178. About the United States Attorney’s Office The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include: Environmental Justice The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. Project Safe Childhood Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious. Project Safe Neighborhoods Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful. Victim Witness Assistance The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect. To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime


title: Groton Man Pleads Guilty to Child Exploitation Offense

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RYAN CAMERON, 22, of Groton, pleaded guilty today before U.S. District Judge Vernon D. Oliver in Hartford to a child exploitation offense. According to court documents and statements made in court, in 2023, Cameron was convicted in state court of illegal dissemination of intimate images of a 15-year-old female. In April 2024, while Cameron was on state probation, his probation officer conducted a home visit and discovered Cameron was in possession of a cell phone in violation of the conditions of his probation. Subsequent forensic analysis of the phone revealed that it contained videos of child sexual abuse, and messages between Cameron and others in which Cameron solicited and distributed child pornography. The phone also contained recordings of Cameron sending sexually explicit images and videos of himself to young girls on Snapchat. Cameron pleaded guilty to receipt of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years. Sentencing is scheduled for March 28. Cameron has been detained since May 20, 2024, when he was arrested on unrelated state charges. This matter has been investigated by Homeland Security Investigations (HSI) with the assistance of the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Christopher Lembo. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Thompson Falls felon sentenced to more than five years in prison, fined $20,000 for illegal possession of firearms, shortened rifle

body_text: MISSOULA — A Thompson Falls man with two prior federal felony convictions and other state felonies was sentenced today to five years and 10 months in prison, to be followed by three years of supervised release, for admitting to firearms crimes after law enforcement found numerous guns at his residence, U.S. Attorney Jesse Laslovich said. The defendant, James Vernon Day, Jr., 56, pleaded guilty in September 2024 to prohibited person in possession of a firearm and to possession of an unregistered firearm. U.S. District Judge Donald W. Molloy presided. The court also imposed a $20,000 fine. The government alleged in court documents that Day previously had been convicted in federal court in Montana in 2004 of prohibited person in possession of a firearm and in 2018 of illegal sale of outfitted mountain lion hunts and was prohibited from possessing firearms. Day also had prior state felony convictions in Montana and Idaho. In December 2023, Sanders County Sheriff’s Office deputies arrived at Day’s property to serve a search warrant for stolen vehicle parts. Day confronted deputies but retreated into his residence as the search began. Day told deputies they could not enter his residence. During the search, Day was generally noncompliant with law enforcement’s requests for more than an hour and, in an effort to hide his illicit behavior, Day set fire to his phone. During the search, deputies located a .44-caliber rifle in a shop building. The shop also had three gun safes that contained gun parts, including a barrel from an assault rifle and a barrel from a shotgun. Deputies also found a freshly killed deer head. Day eventually exited his residence and was arrested. In a search of Day’s residence, deputies located an additional 36 firearms, which were strewn around the house. One of those firearms, found on the kitchen floor, was a .222-caliber rifle that had a barrel of less than 16 inches. Possession of a firearm with a shortened barrel is against federal law. In Day’s vehicle, deputies found a .44-caliber revolver. The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Sanders County Sheriff’s Office and Lincoln County Sheriff’s Office conducted the investigation. 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. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN. XXX


title: Justice Department Reaches Agreement With Antioch Police Department Resolving Race Discrimination Investigation

component: USAO - California, Northern

body_text: OAKLAND — The Justice Department announced today an agreement with the Antioch, California, Police Department (APD) and the City of Antioch to resolve an investigation of race discrimination and other discriminatory conduct by APD officers against members of the public in Antioch. The department launched its investigation after the public disclosure of discriminatory text communications that dozens of APD personnel allegedly exchanged between September 2019 and January 2022. The U.S. Attorney’s Office and the Justice Department’s Civil Rights Division jointly investigated APD’s compliance with Title VI of the Civil Rights Act of 1964 (Title VI) and the nondiscrimination provisions of the Omnibus Crime Control and Safe Streets Act (Safe Streets Act). Title VI and the Safe Streets Act collectively prohibit discrimination on the basis of race, color, national origin, sex, and religion by recipients of federal financial assistance, such as APD. “Law enforcement is only effective when it inspires public confidence,” said United States Attorney Ismail J. Ramsey. “A police department that discriminates based on race and other protected classes undermines both public safety and public confidence. Today’s agreement will help ensure that policing in Antioch is done constitutionally and will help restore public trust.” “Fair and non-discriminatory policing is fundamental to effective law enforcement, especially for those agencies that receive federal funding,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In working with the Justice Department to institute policing reform, Antioch Police Department sends a strong message that the discrimination and misconduct that prompted this investigation will not be tolerated. The agreement we have secured will ensure that Antioch’s policing practices are free from discrimination in the road ahead — the community deserves nothing less.” In response to the investigation, APD, the City of Antioch and the City Manager worked cooperatively with the department to reach a resolution agreement embodying a commitment to nondiscrimination in APD’s policing operations and advancing its ongoing efforts to prevent and address discriminatory law enforcement practices. Under the agreement, APD will hire an expert law enforcement consultant jointly selected by the parties to review and update APD’s policies, procedures, and training on a variety of topics, including non-discriminatory policing, use of force, hiring and promotions, investigations of misconduct, discipline, community policing, language access, and other topics. The agreement contemplates a role for the Antioch Police Oversight Commission and sets forth a framework for data collection and reporting for a five-year period of departmental monitoring, among other provisions. Assistant United States Attorney Michael Keough, with the assistance of Jonathan Birch, and attorneys from the Federal Coordination and Compliance Section of the Justice Department’s Civil Rights Division are handling this case. Members of the public may report possible civil rights violations to this office via our website or at civilrights.justice.gov/report/ . Antioch Agreement


title: Two people from Wichita charged with robbing Kansas banks

component: USAO - Kansas

body_text: WICHITA, KAN. – A man and woman from Kansas have been charged through criminal complaint in Wichita on charges related to a series of bank robberies involving a firearm. According to court documents, Zane Tilcock, 20, of Wichita is charged with three counts of bank robbery. Emily Wise, 18, of Wichita is charged with one count of bank robbery. Tilcock is accused of brandishing a firearm to rob three banks in December of 2024. He allegedly robbed Intrust Bank on South Webb Road in Wichita on December 11, Emprise Bank on East Harry Street in Wichita on December 16, and Sunflower Bank on North Jefferson Street in Junction City on December 27. Wise is accused of robbing Emprise Bank in Wichita on December 16, 2024. The Federal Bureau of Investigation (FBI), Wichita Police Department, Junction City Police Department, and the Sedgwick County Sheriff’s Office are investigating the case. Assistant U.S. Attorney Kari Burks is prosecuting the case. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: USAO’s Organized Crime and Drug Enforcement Task Force Unit Ends 2024 with Notable Achievements

body_text: CLEVELAND – The Organized Crime and Drug Enforcement Task Force (OCDETF) Unit of the United States Attorney’s Office (USAO) for the Northern District of Ohio is responsible for prosecuting criminal organizations whose members violate federal laws in any of the 40 northern counties in the state of Ohio that the district serves. As an independent component of the U.S. Department of Justice, OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle criminal organizations using a nationwide strategy, led by prosecutors, that combines targeting, coordination, intelligence-sharing, and directed resourcing to have the greatest impact in disrupting the operations of organized crime. The task force approach facilitates coordination among various federal and local agencies to solve crimes, with agents and officers working side-by-side in the same location, led by a federal prosecutor. This co-located model enables agents from different agencies to share information and collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle large-scale criminal operations. Such criminal networks include all forms of transnational crime, including but not limited to drug cartels, racketeering organizations, and other groups engaged in illicit activities that present a threat to public safety and national security. They may involve, among other illegal activity, the illegal smuggling and trafficking of narcotics or other controlled substances, weapons, humans, or the illegal concealment or transfer of proceeds derived from such illicit activities in the Northern District of Ohio. In the Northern District of Ohio, agents and officers from the FBI, DEA, ATF, Homeland Security Investigations, USMS, U.S. Postal Inspection Service, Internal Revenue Service, and USBP investigate OCDETF cases with ties to the District, working with task force officers from numerous local law enforcement agencies, including the Cleveland Division of Police. Prosecutions are led by the Office of the United States Attorney for the Northern District of Ohio. “No one group or agency can effectively combat organized crime, and particularly transnational organized crime, while working in a silo. The OCDETF framework allows our federal investigative agents to coordinate with each other and local law enforcement, sharing both resources and intelligence,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “This model allows us to come together and build the best cases possible that put the members of large-scale criminal networks behind bars and bring their criminal operations to a halt.” Notable operations and cases prosecuted by the OCDETF Unit in 2024 include: U.S. v. Ojeda-Elenes, et al. – Four individuals, including two individuals with direct connections to the Sinaloa Cartel based in Culiacán, Mexico, were sentenced to prison for a drug conspiracy involving more than 240 pounds of fentanyl and nearly 100 pounds of cocaine. U.S. v. Mullins, et al. –Twenty-one members and associates of a Cleveland-based, violent street gang known as the Fully Blooded Felons were arrested and charged between December 2023 and November 2024. The defendants are alleged to have committed numerous federal crimes, including Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, murder in aid of racketeering, kidnapping in aid of racketeering, assault in aid of racketeering, firearms violations, conspiracy, and drug trafficking. To date, three defendants have pled guilty. U.S. v. Whittaker, et al. – Fifteen people in Lorain County were charged in a 19-count indictment after authorities seized large quantities of fentanyl that included more than 42,000 fentanyl pills. U.S. v. Bryant, et al. – According to court documents, Brandon Bryant was one of 24 members of a large-scale fentanyl trafficking organization that operated on Cleveland’s eastside between September 2019 and February 2022. He was sentenced to more than 30 years in prison after pleading guilty to conspiracy to distribute and possess with intent to distribute controlled substances, distribution of controlled substances, possession with intent to distribute controlled substances, and use of a communications facility in furtherance of a drug felony. Bryant was also ordered to serve a lifetime term of supervised release following his release from prison. The other 23 co-defendants have also been convicted and sentenced. Some of the more notable prison sentences for his co-defendants include the following: Devon Fair, 35 years; Ramel Drew, 27 years; and Branea Bryant, 24 years. U.S. v. Lumbus et al. – Eleven people were charged in an international drug trafficking conspiracy that involved the importation of fentanyl, synthetic opioids, and synthetic cannabinoids into the United States, and the distribution of those drugs in Ohio and other states. To report crimes, visit https://tips.fbi.gov/home .


title: New USAO Task Force to Target Government Contract Fraud

body_text: CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio is spearheading a new, interagency Supply Chain Oversight and Procurement Enforcement (SCOPE) Task Force, created in 2024, to ensure supply chain integrity and prevent procurement fraud. The task force will serve to support the work of the Government Supply Chain Investigations Unit (GSCIU), led by the Department of Homeland Security – Homeland Security Investigations (HSI), based in Washington, D.C. The GSCIU investigates procurement and government contract fraud in connection with military, law enforcement, and public health and safety. Examples include investigations into substandard or fraudulent vaccines or medications that are supplied to veterans through Veterans Affairs. Other investigations have focused on faulty electronics and software provided to NASA or the military supply chain, and counterfeit and faulty armor and munitions provided to law enforcement and military personnel. “As the first of its kind in the district, this task force brings together the USAO’s white collar crime unit, Homeland Security Investigations, and numerous other federal investigative agencies to address large-scale supply chain and procurement fraud in government contracting,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “We also must be vigilant about products entering the government supply chain stemming from prohibited sources or foreign countries of concern, which presents a national security issue that may potentially sabotage or compromise systems put in place to protect our country, our servicemen and servicewomen, and our citizens.” The task force will hold its first meeting in early February. Topics of discussion will emphasize public health and safety, vaccine and medicine fraud, counterfeit goods, intellectual property theft, and national security. Regional federal agencies that have committed to the USAO-NDOH-led task force include the FBI, NASA, HSI, NCIS, Intellectual Property Rights Center, Defense Criminal Investigative Services, Air Force Office of Special Investigations, Veterans Affairs, General Services Administration, Customs and Border Protection, IRS-Criminal Investigation, U.S. ARMY, and Defense Finance Accounting Service.


title: USAO Ends 2024 with Notable Achievements to Combat Elder Fraud

body_text: CLEVELAND – Combatting elder fraud continues to be a top priority for the United States Attorney’s Office (USAO) for the Northern District of Ohio, in 2024 and beyond. The office is responsible for prosecuting federal law violations that occur in any of the 40 northern counties in the state of Ohio which the district serves. Prosecutors in the USAO’s White Collar Crimes Unit carry out the Department of Justice’s Elder Justice Initiatives , which include a commitment to combatting elder abuse, neglect, financial fraud, and other scams that target our nation’s senior citizens. Elder fraud schemes take a variety of forms that range from small-scale identity thefts to mass mail fraud schemes that steal money and other assets from thousands of elderly victims. Annually, these fraud schemes bilk seniors out of billions of dollars throughout the country. “Many fraud crimes that target our elderly population involve criminals taking advantage of this group’s trusting nature. Fraudsters falsely claim to be government officials or promise to help with computer issues, persuading victims to provide fraudsters with access to their personal information,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Our office prioritizes prosecuting those who prey on the elderly members of our communities in an attempt to steal their savings.” Notable cases in 2024 that involved elder fraud include: U.S. v. Alahmad - A caregiver forged a power of attorney document and used it to apply for, and receive, credit and debit cards in the name of the victim who was an elderly adult. The victim was in a nursing home rehabilitation facility while the defendant made unauthorized withdrawals and purchases using the victim’s credit and debit cards. Alahmad was sentenced to 30 months in prison and ordered to pay restitution of $46,064.30. U.S. v. Xie – A Chinese national college student on an F‐1 Visa traveled across the country, worked as a “money mule” who picked up cash from older victims, and then transferred the funds to his handler. Xie was sentenced to 16 months in prison and ordered to pay $188,000 in restitution. U.S. v. Wehman – The defendant was charged with wire fraud for stealing from his grandfather by using credit cards, debit cards, and a line of credit. He was sentenced to 37 months in prison and ordered to pay $376,069.46 in restitution. U.S. v. Turnipseede – The defendant defrauded approximately 72 investors out of more than $8.5 million through a Ponzi scheme that promised investors double-digit profits achieved through a purported algorithm designed to generate double-digit returns through various sports wagering businesses. Defendant used investor money to maintain the business, seek new sources of funds, pay off earlier investors, and fund personal expenses. He is scheduled to be sentenced March 3, 2025. U.S. v. Alexander – The defendant and other involved individuals engaged in a cold‐calling scheme that targeted older investors throughout the United States. They used aggressive and deceptive tactics and promised large returns if the victims participated in wine and whiskey investments. The court sentenced Alexander to three years of probation and ordered him to pay $202,195.58 in restitution. U.S. v. Mangukia – Defendants were charged in a conspiracy for falsely posing as customer service employees at a company or bank. Co-conspirators contacted a victim and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The conspirators directed the victim to make a wire transfer, convert cash to cryptocurrency at a Bitcoin ATM, and withdraw cash to purchase gold coins and bars. Defendants then traveled to Ohio to pick up the gold bars. U.S. v. Chaudhary – Defendants were charged as part of a conspiracy for falsely posing as customer service employees at a company or bank. Co-conspirators contacted a victim and falsely claimed that the victim’s account was at risk or had been compromised by a hacking event or similar computer intrusion. The conspirators directed the victim to withdraw cash and had a conspirator pick up the cash from the victim's home. U.S. v. Kai – The defendant approached victims through social media to invest money into cryptocurrency. Victims were instructed to deposit their money through a “service director” affiliated with a cryptocurrency business. The service director informed the victims that deposits were to be made in person and in cash-only transactions. During one of these transactions, Kai was identified as the individual in a vehicle scheduled to take the victims’ money. Additionally, USAO staff conducted numerous public outreach efforts to educate the community to be aware of elder fraud scams including: “Courier and Grandparent Scams,” National Consumer Protection Week Meeting “Tops Scams for 2024,” St. Mary of the Woods Senior Living Community, FBI Organized Crime Conference, and Parma Snow Branch Library “Elder Fraud Scams and Robocalls,” St. Mary of the Woods Independent Living “Elder Fraud and Cold Calling Investment Scams,” AARP Podcast interview To report crimes, visit https://tips.fbi.gov/home or https://www.justice.gov/elderjustice/financial-exploitation .


title: Man Sentenced in Fentanyl Drug Conspiracy

component: Drug Enforcement Administration (DEA)

body_text: United States Attorney Susan Lehr announced that Taft Burtton, age 52, of Omaha, Nebraska, was sentenced January 3, 2025, in federal court in Omaha for conspiracy to distribute 10 grams or more of fentanyl. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Burtton to 120 months’ imprisonment. There is no parole in the federal system. After Burtton’s release from prison, he will begin a 5-year term of supervised release. On February 15, 2023, the Drug Enforcement Administration Overdose Task Force was executing a search warrant at a residence known for selling fentanyl in Omaha. The suspects at the residence told law enforcement that their source of fentanyl was Burtton. Law enforcement, acting in a undercover capacity, enticed Burtton to come to the residence. Burtton showed up to the residence with 99 grams of fentanyl and was arrested. This case was primarily investigated by the Drug Enforcement Administration.


title: Drug Dealer Receives 106-Month Sentence After Selling Quarter-Pound of Methamphetamine to an Undercover Agent

body_text: United States Attorney Susan Lehr announced that Sherice Dismang, age 42, of Omaha, Nebraska, was sentenced on January 3, 2025, in federal court in Omaha, Nebraska for possession with intent to distribute methamphetamine. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Dismang to 106 months’ imprisonment. There is no parole in the federal system. After Dismang’s release from prison, she will begin a 5-year term of supervised release. On February 27, 2023, law enforcement set up a controlled drug transaction against Dismang in Omaha, Nebraska. During the controlled drug transaction, Dismang met with her source of supply and acquired the 100 grams of lab-confirmed actual meth which she then turnaround and sold directly to the undercover agent. This case was investigated by the Drug Enforcement Administration.


title: Walthill, Nebraska Man Sentenced for Domestic Assault by an Habitual Offender

body_text: United States Attorney Susan Lehr announced that Shaquille Moniz, age 31, of Walthill, Nebraska, was sentenced January 3, 2025, in federal court in Omaha, Nebraska, for domestic assault by an habitual offender in Indian Country. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Moniz to 37 months’ imprisonment. There is no parole in the federal system. After Moniz’s release from prison, he will begin a 3-year term of supervised release. In April 2024, Moniz assaulted his then-girlfriend resulting in substantial bodily injury. At the time that Moniz committed the assault on his girlfriend, he had already been convicted on multiple occasions of domestic violence offenses in state and tribal courts. This case was prosecuted in federal court because the offense was a felony and occurred on the Omaha Nation Indian Reservation in Nebraska. This case was investigated by the Federal Bureau of Investigation.


title: Lexington Man Sentenced for Methamphetamine Distribution

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Jaime Ramos-Gonzalez, age 64, of Lexington, Nebraska was sentenced January 3, 2025, in federal court in Omaha, Nebraska for his involvement for distributing methamphetamine. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ramos-Gonzalez to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release. Beginning in the summer of 2023, investigators with the Nebraska State Patrol identified Jaime Ramos-Gonzalez as a distributor of meth in Lexington/Kearney area. A vehicle tracking device was placed on Ramos-Gonzalez’s vehicle which monitored his travels. On September 20, 2023, the tracker indicated that Ramos-Gonzalez’s vehicle was traveling from Kearney to Omaha. A search warrant was obtained and was executed when Ramos-Gonzalez returned to Kearney. After being stopped, Ramos-Gonzalez admitted to investigators that there was two pounds of meth in the car. A search resulted in 970 grams of pure methamphetamine being recovered. This case was investigated by the Nebraska State Patrol.


title: KC Man Pleads Guilty to Producing Child Pornography

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man who drove a 13-year-old victim from her home in Texas pleaded guilty in federal court today to engaging in illicit sex to produce child pornography. Talib Bwana Muhammad, 26, pleaded guilty before U.S. District Judge Greg Kays to one count of producing child pornography. By pleading guilty today, Muhammad admitted that he used a minor victim to produce child pornography from June 9 to 15, 2023. Muhammad met the child victim on a social media application. Muhammad purchased an airline ticket for the child victim but, when she was unable to leave home, he drove to Texas to pick her up and bring her to Kansas City. Law enforcement was notified when the child victim was missing and an Amber Alert was issued. Investigators traced her to Muhammad’s residence. Muhammad and the child victim engaged in sexual contact, which Muhammad video recorded and photographed with a cell phone. Under federal statutes, Muhammad is subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 30 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. This case is being prosecuted by Assistant U.S. Attorney Maureen A. Brackett. It was investigated by the FBI, the Hitchcock, Texas, Police Department, and the Kansas City, Mo., Police Department. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Saf Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."


title: USAO General Crimes Unit Ends 2024 with Notable Achievements

body_text: CLEVELAND – The General Crimes Unit of the United States Attorney’s Office (USAO) for the Northern District of Ohio is responsible for prosecuting individuals who violate a wide variety of federal laws in any of the 40 northern counties in the state of Ohio which the district serves. These Assistant U.S. Attorneys focus on prosecuting crimes that involve firearms violations, illegal drugs, and violent crimes such as armed robberies, carjackings, and/or make threatening communications. They also hold those accountable who sexually abuse children, fail to register as sex offenders, possess and/or distribute pornographic images of minors engaged in sexually explicit conduct, and engage in human trafficking. Reducing violent crime has been a top focus of the Department of Justice and the USAO. To further those efforts, a new Crime Gun Intelligence Center (CGIC) was opened in the District in June 2024. Attorney General Merrick Garland and ATF Director Steven Dettelbach, alongside U.S. Attorney Rebecca Lutzko , announced the center’s opening at a press conference earlier this year. The CGIC serves as a hub for federal and local law enforcement to investigate and prevent gun violence in the region. It utilizes cutting-edge technology and tracing systems to rapidly develop and pursue investigative leads that have helped to drive violent crime rates down in Northern Ohio this year. With these experts located in the same facility, this team of firearm evidence examiners, intelligence analysts, and investigators can rapidly collect, analyze, and share information about guns used in violent crimes. “Driving down violent crime has, without a doubt, been one of our office’s top priorities,” said U.S. Attorney Lutzko. “With the CGIC now fully operational, it allows us to connect the dots between crimes so we can prosecute, convict, and lock up the bad actors who commit violent crimes and remove “crime guns” from the streets faster, so neither continue to endanger innocent people in neighborhoods throughout Northern Ohio.” Notable operations and cases for fiscal year 2024 include the following: Violent Crime Reduction Operation – After a three-month, violent crime reduction initiative in the summer of 2023, a total of 84 defendants were charged in connection with firearms-trafficking, straw purchasing firearms, narcotics, conspiracy, and other firearms offenses. The investigation was led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and resulted in the seizure of more than 255 firearms, of which 47 were traced back to other crimes. The seizure also included 17 untraceable firearms, also known as “ghost guns.” Seventy defendants were charged federally and the remaining 14 faced state charges. Sixty of those entered guilty pleas, 49 of which have been sentenced to date. Of the 14 defendants charged in the state, 12 have pled guilty and been convicted and sentenced. Some notable prison sentencings for various federal firearms violations include Darvell Jackson, sentenced to 168 months; Cortez Buggs sentenced to 132 months; Kenneth Smith sentenced to 135 months; Darion Shelton, sentenced to 100 months; Willie Earl Jackson sentenced to 84 months. U.S. v. Conner Walker – In early January 2024, the FBI Cleveland Division received a lead that a sexually explicit picture of a two-year-old was likely a child residing in Northeast Ohio. After the FBI confirmed the child’s identity, they learned that she spent time at an in-home day care in Parma, Ohio. Walker was identified as a friend of the day care owner’s adult son who frequented the home and often stayed the night. During an interview, he admitted to sexually abusing the child, filmed it on his phone, and distributed the video online. Walker entered guilty pleas to sexual exploitation, receipt, distribution, and possession of child pornography and is currently awaiting sentencing. U.S. v. Shannon Matheny – On Oct. 26, 2022, a bank in Lorain, Ohio, was robbed by a man armed with a small silver semi-automatic firearm. The teller reported that the suspect entered, approached counter, slid a note under plexiglass indicating that it was robbery, that he had a gun, not to touch the alarm, and to hand over all fifty, hundred, and twenty-dollar bills. When the teller retrieved the cash from her drawer and handed it to him, he walked away with more than $4,000 from the bank. The Lorain Police Department investigated anonymous tips and reviewed surveillance videos. Two days later, Matheny was located and then arrested after a police chase. A bookbag containing a loaded firearm, fentanyl, cocaine, and two cellphones were seized from Matheny. Matheny was convicted on all counts after a five-day trial in April 2024. In August, he was sentenced to 78 months in prison, plus 84 months consecutive for brandishing a firearm during the course of a robbery, for a total of 162 months. Additionally, to address regional crime issues, the USAO conducted numerous outreach efforts to diverse members of the community. These included discussions with religious and ethnic groups with concerns about the rise in hate crimes. To report crimes, visit https://tips.fbi.gov/home .


title: LabCorp and University Health System Agree To Pay $388,667 To Resolve Alleged False Claims Act Violations

component: USAO - Tennessee, Eastern

body_text: KNOXVILLE, Tenn. – Laboratory Corporation of America Holdings (“LCAH”), Laboratory Corporation of America (“LCA”), Labcorp Tennessee, LLC (“LCTN”) (collectively, “LabCorp”), and University Health System, Inc. (“UHS”) have paid $388,667.17 to resolve allegations that they violated the False Claims Act by delaying the submission of physician orders for certain laboratory tests by Caris Life Sciences, Inc. (“Caris”) to enable improper billings to Medicare for those tests. During the relevant timeframe, Medicare’s Date of Service or “14-Day” Rule prohibited laboratories from separately billing Medicare for tests performed on specimens if a physician ordered the test within 14 days of the patient’s discharge from a hospital stay either in an outpatient or inpatient setting. If the test was performed more than 14 days after discharge, then Medicare’s 14-Day Rule permitted laboratories to bill Medicare directly for the test. If the test was performed within the 14-day window, the laboratory must instead bill the hospital facility. UHS operates University of Tennessee Medical Center (“UTMC”), and LCA provides clinical laboratory services through LCTN at UTMC’s outpatient laboratory. According to filed documents, between March 2012 and November 2023, UHS and LCTN caused the delay of the submission of physician orders for Caris testing, by either holding orders for submission or cancelling and resubmitting orders, until 14 days after a Medicare beneficiary’s discharge from the hospital to circumvent Medicare’s Date of Service Rule, which allowed the submission of claims to Medicare. The United States contends that, in doing so, UHS and LCTN violated the Date of Service Rule and knowingly caused the submission of false claims for reimbursement to Medicare. UHS and LabCorp cooperated with the United States’ investigation and resolution thereof. Caris, for its part, previously agreed to pay $2.8M to resolve allegations in the Eastern District of New York of its related conduct on a nationwide scale. This settlement resolves, in part, a lawsuit filed under the qui tam , or whistleblower, provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims and receive a share of any recovery. The qui tam case is captioned United States ex rel. Kim Vo v. Caris Life Sciences, Inc. et al. , No. 3:20-CV-509 (E.D. Tenn.). Relator Kim Vo received $73,846.76 of the proceeds from the settlement. UHS was not a party to the qui tam case but participated in the settlement. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Assistant U.S. Attorneys Alexa Ortiz Hadley and Jeremy S. Dykes represented the United States, with assistance from the Department of Health and Human Services’ Office of Inspector General and Trial Attorney Robert C. K. Boyd of the Department of Justice’s Civil Division, Fraud Section. The claims resolved by this settlement are allegations only, and there has been no determination of liability. ###