title: Child pornography production sends Dillon man to prison for more than 18 years

body_text: MISSOULA — A Dillon man who admitted to recording himself having sex with a minor girl on multiple occasions was sentenced today to 18 years and four months in prison, to be followed by 20 years of supervised release, U.S. Attorney Jesse Laslovich said. Blaine Anthony Thomas Burger, 20, pleaded guilty in March to production of child pornography. U.S. District Judge Dana L. Christensen presided. In a plea agreement filed in the case, the parties agreed that the evidence established the commission of two additional counts of production of child pornography involving two additional Jane Does, and that the agreement would be treated as if Burger had been convicted of the additional counts for purposes of calculating his recommended sentencing guideline range. “Burger’s violent, perverse and destructive conduct caused a lifetime of damage to these girls. He built trust and developed relationships with them, and then abused and sexually exploited them for his own gratification. Protecting children from predatory conduct, like Burger’s, and holding offenders accountable remains a top priority for our office,” U.S. Attorney Laslovich said. The government alleged in court documents that Burger preyed on three underage girls, torturing two of the girls, convincing both that he cared for them, and blackmailing a third girl until she sent him nude images of herself. Between October 2021 and May 1, 2022 in Dillon, Burger was in a dating relationship with Jane Doe 1, who was under the age of 18. On April 30, 2022, Jane Doe 1 told law enforcement that she had been in an abusive sexual relationship with Burger for the last several months. Jane Doe 1 further disclosed that Burger had sex with her on multiple occasions, recorded them having sex on his phone and kept the videos. When interviewed, Burger admitted to having sex with Jane Doe 1 more than 10 times after he learned that she was underage. Burger further admitted he had naked pictures of Jane Doe 1 on his phone. Law enforcement executed a search warrant on Burger’s phone and recovered three videos that were recorded by Burger and depict him having sexual intercourse with Jane Doe 1. The U.S. Attorney’s Office prosecuted the case. The Beaverhead County Sheriff’s Office, Dillon Police Department, Helena Police Department and FBI conducted the investigation. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . XXX


title: French cybercriminal pleads guilty to fraud and aggravated identity theft for hacking private information

component: U.S. Attorneys (USAO)

body_text: Seattle – A 22-year-old French citizen from Epinal, France, pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft in U.S. District Court in Seattle, announced Acting U.S. Attorney Tessa M. Gorman. Sebastien Raoult, aka Sezyo Kaizen, was arrested last year in Morocco and was extradited to the U.S. in January 2023. Raoult and two co-conspirators were indicted by a grand jury sitting in the Western District of Washington in June 2021. “People often think their actions from behind a screen won’t have consequences for them. Raoult and his co-conspirators used deceptive tactics to trick people into sharing personal login information and breached confidential data from numerous companies,” said Acting U.S. Attorney Tessa M. Gorman. “The FBI Seattle Cyber Task Force and our office’s cyber unit work tirelessly to ensure victims of fraud and hacking like this get justice.” According to the plea agreement, Raoult and his co-conspirators hacked into protected computers of corporate entities for the theft of confidential information and customer records, including personally identifiable information and financial information. They hacked numerous companies, including companies in Washington State, elsewhere in the United States, and around the world. After Raoult and his co-conspirators hacked companies, a user going by the name ShinyHunters posted hacked data from many of those companies for sale on dark web forums, including RaidForums, EmpireMarket, and Exploit. Between April 2020 and July 2021, ShinyHunters posted sales of hacked data from more than 60 companies. Sometimes ShinyHunters threatened to leak or sell stolen sensitive files if the victim did not pay a ransom. According to the records filed in the case, Raoult helped create websites that pretended to be login pages belonging to legitimate businesses. The conspirators sent phishing emails to company employees that were designed to look like they came from legitimate businesses and contained links to those login pages. Victims provided their account sign-on credentials on those fake login pages, and the conspirators obtained the victims’ credentials. Raoult and his co-conspirators used the login information to breach victims’ accounts, steal the data stored there, and search the stolen data for credentials to access additional data on companies’ networks and third-party service providers, such as cloud storage services. In total, the conspirators stole hundreds of millions of customer records and caused loss to victim companies that is estimated to exceed $6 million. The conspiracy to commit wire fraud is punishable by a maximum of 27 years in prison. Aggravated identity theft is punishable by a mandatory minimum two-year prison term to follow any other prison sentence imposed in the case. The case is being investigated by the FBI Seattle Cyber Task Force. The case is being prosecuted by Assistant United States Attorney Miriam R. Hinman. DOJ’s Office of International Affairs is providing substantial assistance. The Department of Justice also appreciates the significant cooperation and assistance provided by Moroccan and French authorities .


title: Man who sold fake Native Art to Seattle customers sentenced to two years of probation and 200 hours of community service for violations of the Indian Arts and Crafts Act

body_text: Seattle – A 54-year-old Western Washington artist was sentenced today to 24 months of probation and 200 hours of community service for violations of the Indian Arts and Crafts Act by representing himself as a Native American artist, when he had no tribal enrollment or heritage, announced Acting U.S. Attorney Tessa M. Gorman. Lewis Anthony Rath, of Maple Falls, pleaded guilty in March 2023. U.S. District Judge Tana Lin thanked the tribal representatives who participated in the sentencing hearing. She read aloud the letter submitted by the San Carlos Apache Tribe Chairman, Terry Rambler, describing the harm to his 17,000 tribal members caused by Rath’s misappropriation of his Tribe’s culture in selling his fake artwork. Judge Lin also heard from Yavapai-Apache jewelry artist Matagi Sorensen who spoke about the importance of art to the survival of his people both culturally and financially. According to documents filed in the case, the investigation of Lewis Anthony Rath began in July 2018, when the Indian Arts and Crafts Board received a complaint that Rath was representing himself as a San Carlos Apache Indian artist, when in fact, he is not an enrolled tribal member. For more than a year, Rath sold carved wooden totem poles, transformation masks, and pendants to Seattle retail stores, claiming they were Native American art. Agents executed a federal search warrant at Rath’s residence and recovered feathers from birds protected under the Bald and Golden Eagle Protection Act and the Migratory Bird Treaty Act, according to results from the National Fish and Wildlife Forensic Lab. In a statement to the court, Assistant U.S. Attorney Tate London stated, “Rath’s victims are real: they are Indian artists, many who struggle to make a living, who lost out on sales to those who seek authentic Indian artwork; and they are also consumers who were defrauded into purchasing fake Indian art.” “Lewis Anthony Rath’s false Tribal affiliation involving the San Carlos Apache Tribe cheated customers and impacted the economic and cultural livelihood of Native American artists," said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Protecting American Indian and Alaska Native culture and traditions is a critical part of the Indian Arts and Crafts Act. Our dedicated team of special agents work on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board to protect American Indian and Alaska Native artists and the consumers who purchase authentic Native American art and craftwork. This sentencing is important in the ongoing effort to hold Indian Arts and Crafts Act violators accountable. We want to thank our partners at the U.S. Department of Justice and the Indian Arts and Crafts Board for their assistance with this investigation.” “Counterfeit Indian art, like Lewis Anthony Rath’s carvings and jewelry that he misrepresented and sold as San Carlos Apache-made, tears at the very fabric of Indian culture, livelihoods, and communities,” stated U.S. Department of the Interior Indian Arts and Crafts Board (IACB) Director Meridith Stanton. “The IACB by statute is responsible for administering the Indian Arts and Crafts Act (IACA), an anti-counterfeiting law to protect Indian artists and consumers. Mr. Rath’s actions demean and rob authentic Indian artists who rely on the creation and sale of their artwork to put food on the table, make ends meet, and pass along these important cultural traditions and skills from one generation to the next. His actions also undermine consumers’ confidence in the Indian art market in the Northwest and nationwide. Due to the outstanding work of the Office of the U.S. Attorney-Western District of Washington and the U.S. Fish and Wildlife Service IACA Investigative Unit, Mr. Rath is being held accountable and the message is clear. For those selling counterfeit Indian art and craftwork it is important to know that wherever you are we will diligently work to find you and prosecute you under the Indian Arts and Crafts Act.” The case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement. The case was prosecuted by Assistant United States Attorney and Tribal Liaison J. Tate London.


title: Depew man pleads guilty to selling fentanyl that led to the deaths of two individuals

component: USAO - New York, Western

body_text: BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Jonathan DiPirro, 33, of Depew, NY, pleaded guilty before U.S. District Judge John L. Sinatra to distribution of acetyl fentanyl and fentanyl causing death, which carries a mandatory minimum penalty of 20 years in prison, a maximum of life, and a fine of $1,000,000. Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that on Nov. 1, 2019, DiPirro sold controlled substances to an individual identified as J.L. During the morning hours of Nov. 2, 2019, emergency personnel arrived at J.L.’s residence and determined J.L. was deceased. An autopsy by the Erie County Medical Examiner’s Office determined the cause of death to be acute mixed drug intoxication, to include acetyl fentanyl, fentanyl, and cocaine. On March 4, 2020, at approximately 3:00 p.m., DiPirro sold controlled substances to an individual identified as S.L. At approximately 4:53 p.m., emergency personnel arrived at S.L.’s residence and determined S.L. to be deceased. An autopsy determined the cause of death to be acute mixed drug intoxication, to include acetyl fentanyl and fentanyl. In addition, between approximately Oct. 2019, and March 24, 2020, DiPirro conspired with his co-defendant, Sarah Szymanski, and others, to sell acetyl fentanyl and fentanyl. In February 2020, investigators conducted four controlled purchases of controlled substances from DiPirro. Sarah Szymanski was previously convicted and is awaiting sentencing. The plea is the result of an investigation by the Lancaster Police Department, under the direction of Chief William Gummo; the Depew Police Department, under the direction of Chief Jerome Miller; the Cheektowaga Police Department, under the direction of Chief Brian Gould; the New York State Police Violent Gang Narcotics Enforcement Team, under the direction of Major Eugene Staniszewski; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino, III, New York Field Division. Sentencing is scheduled for March 26, 2024, at 9:30 a.m. before Judge Sinatra. # # # #


title: Fraudster sent to prison for back-to-back fraud scheme

component: USAO - Texas, Southern

body_text: CORPUS CHRISTI, Texas – A 39-year-old Orange Grove woman has been ordered to federal prison following her convictions of fraud and identity theft, announced U.S. Attorney Alamdar S. Hamdani. Katrina Theiss Freitag pleaded guilty to Fraudulent use of a Social Security number on April 5, 2022. Prior to sentencing Freitag committed additional fraudulent conduct and plead guilty to aggravated identity theft April 17. U.S. District Judge Drew B. Tipton has now ordered Freitag to serve 80 months in federal prison to be immediately followed by three years of supervised release for fraudulent use of a Social Security number. She will also receive two years for aggravated identity theft which must be served consecutively for a total 104-month sentence. At the hearing, the court heard that Freitag was involved in an additional fraud scheme while working for another employer and statements from victims of Freitag’s schemes. From 2012 to 2017, Freitag worked for a commercial insulation company as a bookkeeper who handled day-to-day business activities including finances. She obtained unauthorized cash advances using the companies’ receivables as collateral. Freitag used the owner’s Social Security number and signed the owner’s name to the cash advance documents without authorization. She executed five unauthorized secure merchant agreements over seven months. The company incurred a loss of $580,000 because of Freitag’s scheme. Freitag pleaded guilty April 5, 2022, to two counts of fraudulent use of Social Security number in a loan scheme. After this plea, she was permitted to remain on bond. Freitag then began working for a Corpus Christi pawn shop as a bookkeeper. The manager discovered several suspicious credit card transactions on the owner’s credit card account. The investigation revealed Freitag made unauthorized online charges for groceries, payments to a tax preparation company and her personal cell phone bill. There was an also a forged company check electronically deposited into Freitag’s bank account. Freitag was remanded into custody after this scheme and pleaded guilty to aggravated identity theft related to use of the pawn shop owner’s credit card account without authorization. Freitag will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI conducted the investigation with the assistance of the Orange Grove Police Department. Assistant U.S. Attorneys Robert D. Thorpe Jr. and John Marck prosecuted the case.


title: Former state trooper gets 43 years for sexually assaulting women

body_text: HOUSTON – A 34-year-old former state trooper will now see the other side of a prison cell after coercing two women into providing him with oral sex while on duty, announced U.S. Attorney Alamdar S. Hamdani. The jury deliberated for three hours before returning a guilty verdict against Lee Ray Boykin Jr. following a four-day trial Jan. 13. U.S. District Judge George C. Hanks has now ordered Boykin to serve 516 months in federal prison to be immediately followed by five years of supervised release. In imposing the sentence, the court called Boykin a “predator” who had not shown remorse for his crimes. “Your crocodile tears do not impress me,” said Hanks. Boykin attempted to blame the victims, but the court said it was “repugnant,” saying that he had destroyed their lives. “Lee Ray Boykin turned traffic stops into sexual assaults,” said U.S. Attorney Hamdani. “He used his badge and all the power it afforded to force himself onto two vulnerable women. Boykin targeted victims he believed would not report him and even thought he got away with it. He was wrong. This sentence sends a message that we will pursue anyone that poses a threat to our citizens, no matter what position they hold. And thanks to the hard work of law enforcement, the position Boykin now holds is inmate.” At trial, the jury determined Boykin had deprived two separate victims of their right to bodily integrity while acting in his capacity as a state trooper with the Texas Department of Public Safety (DPS) in that he committed aggravated sexual abuse as to one victim and kidnapping as to the other victim. He was also found guilty of two counts of destruction, alteration or falsification of records in a federal investigation. One of the victims explained how Boykin had taken her to a secluded parking lot after being ordered out of her friend’s car following a traffic stop. Once there, Boykin falsely accused her of being a prostitute, threatened to take her to jail and forced her to perform oral sex on him. Afterwards, he told her to run while placing his hand on his gun. The jury heard evidence that showed Boykin’s DNA in the parking lot. The victim’s DNA was also found on Boykin’s underwear. The second victim testified that Boykin ordered her out of her friend’s car and placed her into Boykin’s vehicle. Boykin falsely told her she had outstanding traffic warrants. He then took this victim to the same secluded parking lot, where she performed oral sex on him. Three days later, Boykin attempted to get her into his trooper car again, but she was able to escape. The jury also heard about statements Boykin had made to authorities. Regarding the sexual assault of the first victim, he said he thought he “got away with it” and knew he should not have done it. He said he “just wanted to try.” The jury did not believe defense claims and ultimately found him guilty. Boykin has been and will remain in custody. The Houston Police Department and Texas Rangers conducted the investigation with the assistance of FBI and DPS. Assistant U.S. Attorneys Sebastian A. Edwards and Kate A. Suh are prosecuting the case.


title: Fairport man pleads guilty to attacking a federal officer during a campaign event

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that David G. Jakubonis, 44, of Fairport, NY, pleaded guilty before U.S. Magistrate Judge Marian W. Payson to assaulting a federal officer, which carries a maximum penalty of one year in prison and a $100,000 fine. Assistant U.S. Attorney Sean C. Eldridge, who is handling the case, stated that on July 21, 2022, during a campaign event in Perinton, NY, Congressman Lee Zeldin gave a speech from the bed of a flatbed trailer. During the speech, Jakubonis walked onto the trailer, approached the Congressman, extended a keychain with two sharp points toward him and grabbed his arm. A struggle then ensued between Congressman Zeldin and Jakubonis and, as bystanders intervened, Jakubonis pulled Congressman Zeldin down onto the bed of the trailer, stating several times during the assault, “you're done.” Jakubonis was subdued and arrested. The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the U.S. Capitol Police, under the direction of Assistant Special Agent-in-Charge Chad Beckett, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the New York State Police, under the direction of Major Brian Ratajczak, the Rochester Police Department, under the direction of Chief David Smith and the Brighton Police Department, under the direction of Chief David Catholdi. Sentencing is scheduled for December 14, 2023, at 3:30 p.m. before Judge Payson. # # # #


title: Former Union President Sentenced in Connection with $36,000 Embezzlement

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – September 27, 2023 SAN DIEGO – Felix Luciano, former President of Local 2805 chapter of the American Federation of Government Employees and former Department of Homeland Security officer, was sentenced in federal court today to four months in custody for filing a false report to conceal his embezzlement of thousands of dollars in union dues. U.S. District Judge Jinsook Ohta also ordered Luciano to repay $36,000 to Local 2805 as money that he embezzled and pay a $10,000 fine. In imposing the sentence, Judge Ohta found that Luciano abused the trust of union members. Local 2805 is a labor union which represents Department of Homeland Security, Immigration and Customs Enforcement employees in San Diego and Imperial Counties. According to court records, from January of 2016 to December of 2018, Luciano used some of Local 2805’s money for a variety of personal expenses, including shopping, travel reimbursements, groceries, dining, dry cleaning, and paying for non-union accounts. He did this by writing checks from Local 2805’s checking account and using Local 2805’s debit and credit cards to directly pay personal expenses. As a result of Luciano’s actions, he caused a total loss of $36,000 to Local 2805. As Local 2805’s president, Luciano was required to file an annual Form LM-3 financial report with the United States Department of Labor, Office of Labor-Management Standards. A Form LM-3 is a report containing information about the organization over the prior year, including assets, liabilities, and disbursements to officers. A Form LM-3 is sworn under penalty of perjury. In the LM-3 report he filed in 2018, Luciano underreported the amount of money that he received from Local 2805 and Local 2805’s cash balance. In doing so, Luciano attempted to hide his embezzlement from the Department of Labor, his fellow union officers, as well as the union membership whose dues were the source of the embezzled funds. “When workers devote their hard-earned money to labor unions, they rightly expect the officers to be honest stewards of their dues,” said Acting U.S. Attorney Andrew R. Haden. “Felix Luciano abused the trust of the government employees represented by Local 2805 for his own personal benefit. We hope this criminal prosecution helps to hold Luciano accountable for his crimes and serves as a deterrent for others who might consider abusing the trust of union members.” “While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur. When they do, it is the union and its members that are the victims. Felix Luciano embezzled over $36,000 from AFGE Local 2805 that should have been used for its members’ benefit,” said Ed Oquendo, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.” Carroll Harris, Postal Inspector in Charge of the Los Angeles Division, stated, “This investigation was an excellent example of a partnership between federal law enforcement agencies, working together in the pursuit of justice. I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved.” This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander. DEFENDANT Case Number 22cr2201-JO Felix Luciano Age: 61 San Diego, CA SUMMARY OF CHARGES False Statement, a felony, in violation of Title 18, United States Code, Section 1001. Maximum Penalty: Five years in prison and a fine of $250,000. AGENCIES Department of Labor, Office of Labor Management Standards Department of Labor, Office of Inspector General Department of Homeland Security, Office of Inspector General United States Postal Inspection Service


title: Anchorage Nonprofit Directors Indicted for Stealing $1.6 million in COVID Recovery Funds

component: USAO - Alaska

body_text: ANCHORAGE, Alaska – An Anchorage couple has been indicted by a federal grand jury for using their nonprofit, House of Transformations, and other corporate entities, as part of a scheme to fraudulently obtain millions of dollars in COVID-19 recovery funds. According to court documents, Rosaline Natazha Mavaega, 41, and Esau Malele Fualema Jr., 44, submitted applications for over $1.6 million in American Rescue Plan Act (ARPA) funds in April 2021. The ARPA funds were being administered by the Municipality of Anchorage to help businesses who were struggling during the COVID-19 pandemic. In the application, Mavaega and Fualema falsely claimed the nonprofit would be providing housing, treatment and vocational training services, and strengthened their request with inaccurate information on the finances, organization and management of House of Transformations. In August 2021, the Municipality of Anchorage issued a check for $1,623,165, which was deposited into the House of Transformations checking account. According to the indictment, instead of using these funds for the purposes identified in the grant, the defendants moved the money into their personal bank accounts and accounts associated with other corporations under their control. They allegedly used the money to finance their for-profit business operations, pay tax dept on another business, secure a personal cash loan and buy cryptocurrency. In December 2021, the defendants submitted applications for various corporate entities under their control for over a million dollars in loans from the Economic Injury Disaster Loan program, a Small Business Administration fund that assists businesses impacted by major disasters, including the COVID-19 pandemic. According to court documents, the defendants falsified these applications by lying about the status of their businesses. They allegedly inflated the number of employees, made false claims about the corporations’ administration and structure, and used other people’s personal identifying information to make it appear that they were associated with the corporations’ management when they were not. In summer 2022, Mavaega and Fualema fraudulently applied to the Municipality of Anchorage for approximately $2 million of additional ARPA grants. Mavaega and Fualema are charged with five federal counts; one count major fraud against the United States, in violation of 18 U.S.C. §1031; one count wire fraud conspiracy, in violation of 18 U.S.C. §§1343 and 1349; one count wire fraud, in violation of 18 U.S.C. §1343; one count money laundering conspiracy, in violation of 18 U.S.C. §§1956(h) and 1957; and one count aggravated identity theft, in violation of 18 U.S.C. §1028A(a)(1). Both defendants were arrested today – Mavaega was arrested at Captain Cook Hotel, and Fualema was arrested at his residence. The defendants will make their initial U.S. District Court appearances on a later date. If convicted, they face a mandatory minimum penalty of 24 months in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney S. Lane Tucker of the District of Alaska; IRS Criminal Investigation, Seattle Field Office, Special Agent in Charge Adam Jobes; and Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King made the announcement. The IRS Seattle Division and the Small Business Administration Office of Inspector General are investigating the case. Assistant U.S. Attorneys James Klugman and Karen Vandergaw, and former U.S. Attorney George Tran are 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: Maryland Man Convicted of Gun Charge

component: USAO - District of Columbia

body_text: WASHINGTON – Artie Byrd, 31, of Hyattsville, Maryland, was found guilty, today, of unlawful possession of a firearm by a convicted felon. The verdict, in the U.S. District Court for the District of Columbia, was announced by Matthew M. Graves, U.S. Attorney for the District of Columbia and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). A sentencing hearing is scheduled for January 5, 2024. According to evidence presented at trial, on September 2, 2022, Byrd was driving southbound on Connecticut Avenue, while somewhat intoxicated, in a car bearing counterfeit Delaware tags. Two MPD officers observed Byrd’s driving and noticed the fake tags. When the officers attempted a traffic stop, Byrd fled, turning down a dead-end cul-de-sac and crashing his car into a bench in front of a house. Byrd bailed out of the car and ran between two houses into a back yard. After realizing he was trapped in by a series of fences and a retaining wall, Byrd eventually surrendered. Officers canvassed his flight path and found a loaded Smith & Wesson .40 caliber semi-automatic handgun loaded with 14 rounds in the magazine and one in the chamber. No one observed Byrd with the gun in his hand and no one saw him toss the gun, but DNA analysis tied him to the gun. Byrd faces a statutory maximum sentence of 15 years in prison, plus a period of supervised release. The court will determine the appropriate sentence after considering the guideline sentencing range and other relevant factors. This case was investigated by the Metropolitan Police Department. The case was prosecuted by former Assistant U.S. Attorney Connor Mullin, and Assistant U.S. Attorney’s Josh Gold, Colin Cloherty, and Cameron Tepfer, of the U.S. Attorney’s Office for the District of Columbia.


title: Former IT Contractor Pleads Guilty to Trafficking Stolen Property from the U.S. Small Business Administration

body_text: Defendant Brazenly Used Victim’s WiFi to Post Stolen Equipment WASHINGTON – Ashley Robinson, 31, of Bowie, Maryland, pleaded guilty today, in Superior Court, to one count of trafficking in stolen property in connection with stealing and reselling at least at least $110,233 worth of laptop computers from U.S. Small Business Administration (SBA). The plea was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Amaleka McCall-Brathwaite, of the U.S. Small Business Administration Office of Inspector General (SBA OIG), and Acting Investigations Branch Chief Brendt Johnson, of the Federal Protective Service (FPS). Superior Court Judge Erik Christian accepted Robinson’s guilty plea and scheduled sentencing for November 28, 2023. As part of the plea agreement, Robinson agrees to pay restitution to the victim. Robinson was employed as a contractor who was assigned to work at the SBA Information Technology Service Center service desk at SBA headquarters in Washington, D.C. According to the government’s evidence, between November 20, 2017, and August 22, 2018, Robinson stole and then resold at least 57 laptop computers from the SBA. In September and October 2017, the SBA received 100 Microsoft Surface Pro laptop computers, each of which was purchased for at least $1,933.92. Robinson had direct access to these computers as part of her job responsibilities, which included issuing computers to SBA headquarters staff. A few months later, the SBA's Office of the Chief Information Officer determined that 72 of the laptop computers were unaccounted for and had never issued to SBA headquarters staff. The SBA's Office of Inspector General (SBA OIG) launched an investigation which revealed that Robinson had taken possession of, posted, and sold, multiple SBA laptop computers on OfferUp, an online customer-to-customer marketplace used to buy and sell products and services and did so while was using the SBA headquarters' guest wireless network. In total, the Defendant had sold 57 Microsoft Surface Pro computers on OfferUp to seven different individuals during the relevant period, for an approximate loss to the SBA of at least $110,233.44. In announcing the guilty plea, U.S. Attorney Graves, Special Agent in Charge McCall-Brathwaite, and Acting Investigations Branch Chief Johnson commended the work of those who investigated the case from SBA OIG. They also acknowledged the efforts of Assistant U.S. Attorneys Benjamin D. Bleiberg, with assistance from Assistant U.S. Attorney Molly Gaston.


title: Jury Finds District Man Guilty of Armed Carjacking and Related Charges

body_text: Defendant Attacked Victim When She Stopped for Gas WASHINGTON – Andrew Patrick, 38, of Washington, D.C., was convicted by a Superior Court jury of all charges including: armed carjacking, possession of a firearm during a crime of violence, felon in possession, carrying a pistol without a license, possession of an unregistered firearm, and unlawful possession of ammunition. The verdict was announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). The Honorable Judge Lynn Leibovitz scheduled sentencing for December 1, 2023, at 9:30am. According to the government’s evidence, on September 22, 2022, the victim took her 2005 blue Chevy Suburban to the Good Hope Road gas station in Washington, DC. The defendant, dressed in a black jacket with white stripes and a hoodie, a red bandana, blue jeans, and grey New Balance sneakers, approached the victim and demanded her car keys while holding her at gunpoint. The victim begged Patrick not to hurt her. Patrick pushed her up against her own vehicle, took her keys, and drove away in the victim’s car. The victim called 911 and gave officers a description of her assailant and his black and grey firearm. Later that day, a license plate reader detected the tags of the blue Chevy Suburban on North Capitol NE and Benning Road NE. Officers located and apprehended the vehicle, which was being driven by the defendant. The defendant told officers that he received the vehicle from a man with a black hoodie. Upon arresting Patrick, officers discovered a black and grey Glock 37 in a red floral satchel on the front passenger floorboard. In announcing the verdict, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including: Paralegal Specialist Renee Prather, Victim/Witness Advocate Christie Bloodworth, and Litigation Technology Specialist Charlie Bruce. Finally, they commended the work of Assistant U.S. Attorneys Gregory J. Evans and Omeed A. Assefi, who investigated, prosecuted, and tried the case.


title: Toledo Couple Who Operated Clinic Sentenced for Mail, Wire, and Health Care Fraud

component: USAO - Ohio, Northern

body_text: TOLEDO – Dr. Oliver Jenkins, age 61 and Sherry-Ann Jenkins, age 59, of Jessup, Georgia, were sentenced to prison yesterday by U.S. District Judge Jack Zouhary after earlier being convicted by a jury of conspiracy, mail fraud, wire fraud and health care fraud. Dr. Oliver Jenkins was sentenced to 41 months imprisonment to be followed by one year of supervised release and a $15,000 fine. Sherry-Ann Jenkins was sentenced to 71 months imprisonment to be followed by two years of supervised release and a $25,000 fine. Restitution will be ordered at a later date. According to court documents and evidence presented at trial, Dr. Oliver Jenkins, who was an Ear, Nose, and Throat M.D. at the Toledo Clinic, and his wife Sherry-Ann Jenkins, who had a Ph.D. but was not licensed to practice medicine in Ohio, started a new business called the “The Toledo Clinic Cognitive Center”. The Jenkinses represented to the Toledo Clinic that patients suspected of cognitive disorders, particularly dementia and Alzheimer’s Disease, could come to the Cognitive Center for neurocognitive testing, diagnosis, treatment, and referrals, and that Sherry-Ann Jenkins would administer the neurocognitive testing under the supervision of Dr.Oliver Jenkins. The Jenkinses represented that Dr. Oliver Jenkins would make a diagnosis, and provide medical treatment, or a referral. Instead, the Jenkinses engaged in a scheme to defraud. Dr. Oliver Jenkins never saw or treated patients at the Cognitive Center. Sherry-Ann Jenkins ordered PET scans of patients’ brains, interpreted the scans, diagnosed patients, one as young as 21 years old, with Alzheimer’s Disease, dementia, or other impairments. She also recommended patients take coconut oil to improve memory, and instructed certain patients to see her every 3-6 weeks for the rest of their lives. The Jenkinses billed Cognitive Center patients and health care benefits programs using Dr. Oliver Jenkins’ billing number. This case was investigated by the Federal Bureau of Investigation in Toledo, Ohio, the United States Department of Health and Human Services, Office of Inspector General in Cleveland, Ohio, the Ohio Attorney General’s Medicaid Fraud Control Unit, and the Ohio State Medical Board. The case is being prosecuted by Assistant U.S. Attorneys Brian McDonough and Robert Melching.


title: U. S. Attorney Rebecca C. Lutzko Announces Over $1.2 Million in Justice Department Grants to Address Behavioral and Mental Health Programs and to Support the Ohio Internet Crimes Against Children Task Force Program

body_text: CLEVELAND ― U.S. Attorney Rebecca C. Lutzko today announced awards of over $1.2 million in Department of Justice grants to help various programs in the Northern District of Ohio. The grants were awarded by the Department’s Office of Justice Programs and are being awarded to communities nationwide. The following organizations received funding: The City of Cleveland, Law Enforcement Behavioral Health Response Program, Connect and Protect awarded $549,998.00; Findlay, Hancock County, Justice and Mental Health Collaboration Program, The Steady Path Forward awarded $550,000.00; and Cleveland, Cuyahoga County, Internet Crimes Against Children Task Force Programs awarded $678,139.00. The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page. About the Office of Justice Programs The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov.


title: Omaha Man Sentenced to Eight Years for Possession of Ammunition

component: USAO - Nebraska

body_text: Acting United States Attorney Susan Lehr announced that Raymond A. Butler, Jr., 52, of Omaha, Nebraska, was sentenced today in federal court in Omaha following a conviction for being a felon in possession of ammunition. United States District Judge Brian C. Buescher sentenced Butler to 96 months’ imprisonment. There is no parole in the federal system. After his release from prison, Butler will begin a three-year term of supervised release. On February 22, 2022, Omaha police stopped a vehicle for traffic infractions. Butler was identified as the driver and a data check confirmed an active misdemeanor arrest warrant. During a search incident to arrest, officers found one Winchester 9mm Luger bullet in his pocket. Butler is a convicted felon prohibited from possessing ammunition under federal law. His convictions include first-degree sexual assault in 1991, bank robbery in 2002, and delivery of a controlled substance in 2018. This case was investigated by the Omaha Police Department.


title: Representative John Rogers Charged with Obstruction of Justice in Fraud Case Involving the Jefferson County Community Service Fund

component: Federal Bureau of Investigation (FBI)

body_text: BIRMINGHAM, Ala. – Representative John Rogers has been indicted by a federal grand jury for obstruction of justice, and tax charges have been added against his assistant, in a superseding indictment in the case involving schemes to defraud the Jefferson County Community Service Fund, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and Internal Revenue Service, Criminal Investigation Acting Special Agent in Charge Demetrius Hardeman. A 25-count superseding indictment filed this week in United States District Court charges Varrie Johnson Kindall , 58, of Chelsea, with one count of conspiracy to commit wire and mail fraud, 11 counts of wire fraud, 3 counts of mail fraud, 1 count of money laundering, and 4 tax related charges. Additionally, the superseding indictment charges John Rogers , 82, and Kindall with 2 counts of obstruction of justice. These charges arise from an investigation of wrongdoing in connection with the Jefferson County Community Service Fund. In June, former Representative Fred L. Plump, Jr., pleaded guilty to conspiring with Kindall and resigned from the Alabama House of Representatives. According to the superseding indictment, in 2015 the Alabama Legislature passed Alabama Act No. 2015-226 (the “Act”) and authorized the Jefferson County Commission to levy and distribute a one percent sales tax and a one percent use tax to benefit the public welfare and enhance the education of the children of Jefferson County. Jefferson County began levying the new taxes in or about August 2017. The Act required the County to distribute the tax revenue according to certain specified priorities, including paying debt incurred during school construction, increasing the County’s general fund, giving funds to each board of education serving students in the County, and for certain other purposes set forth in the Act. The Act created the Jefferson County Community Service Fund (the “Fund”), which was subsidized by approximately $3.6 million annually from the new taxes. The Act also created the Jefferson County Community Service Committee (the “Committee”), the four members of which were elected by members of the Jefferson County House and Senate delegations. The Committee was responsible for ensuring that the Fund was used only for the purposes set forth in the Act, which included to support public entities and projects such as schools, libraries, museums, parks, zoos, neighborhood associations, athletic facilities, youth sports associations, road construction, the performing arts, police departments, the sheriff’s office, fire departments, and certain nonprofit entities. Each Representative and Senator representing Jefferson County could make recommendations to the Committee of expenditures from their allotted amount of the Fund. These recommendations were made on a form created by the Committee that required certain certifications by the legislator. The organization receiving the funds was required to submit information about the organization and confirm that it intended to use the money for a public purpose. During each fiscal year from 2018 to 2022, each Representative was allocated approximately $100,000 and each Senator was allocated approximately $240,000 from the Fund. The superseding indictment identifies certain relevant parties. Representative John Rogers was a long-serving member of the Alabama House of Representatives. Fred L. Plump, Jr. served as the Executive Director of the Piper Davis Youth Baseball League (“Piper Davis”), a nonprofit organization that claimed to provide a positive sporting experience for inner city youth in Jefferson County. Defendant Varrie Johnson Kindall was Rogers’ personal and professional assistant. Individual #1 was the Founder of Organization #1. Between fiscal year 2018 and fiscal year 2022, Representative Rogers was allocated approximately $500,000 by the Fund. Rogers directed approximately $400,000 of those discretionary funds to Piper Davis. In turn, Plump gave approximately $200,000 to Kindall. The superseding indictment alleges that from in or about March 2019, and continuing through April 2023, Kindall conspired with Plump and others to defraud and obtain money from the Fund. It is alleged that it was part of the conspiracy that Rogers, with Kindall’s assistance, recommended during each fiscal year that most of his allotment of Fund money be paid to Piper Davis. In turn, Plump agreed to pay kickbacks to Kindall. Plump and Kindall submitted false and fraudulent information to the Committee about Piper Davis’ intended use of Fund money. Upon receipt and deposit of Fund checks, Plump gave checks to Kindall for approximately one-half of the amount of Fund money received by Piper Davis. On one occasion, it is alleged, Kindall engaged in money laundering by moving a large sum of illegally obtained money between bank accounts. Additionally, the superseding indictment alleges that, in 2019, Kindall committed wire fraud by assisting Rogers in directing Fund money to another entity, identified as Organization #1, and then requiring Individual #1 to pay kickbacks to her. The superseding indictment alleges further that, after learning about the federal investigation into the fraud scheme, Rogers and Kindall attempted to obstruct justice by offering Individual #1 additional grant money as a bribe and otherwise trying to corruptly persuade Individual #1 to give false information to federal agents. The superseding indictment adds 4 counts alleging that Kindall did not file a tax return for 2019 despite receiving substantial income and aided the filing of false tax returns for 2020-2022. The maximum penalty for the conspiracy and substantive fraud counts is twenty years in prison and a $250,000 fine. The maximum penalty for money laundering is ten years in prison and a $250,000 fine. The maximum penalty for obstruction of justice is twenty years in prison and a $250,000 fine. The maximum penalty for obstruction of justice by bribery is five years in prison and a $250,000 fine. The maximum penalty for failing to file a tax return is 1 year in prison and a $25,000 fine. The maximum penalty for aiding the filing of a false tax return is 3 years in prison and a $100,000 fine. The Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation investigated the case. Assistant United States Attorneys George Martin and Catherine Crosby are prosecuting the case. An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.


title: Idabel Resident Pleads Guilty To Murder In Indian Country And Federal Firearm Crime

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Zachary Carlton Ty Capps, age 28, of Idabel, Oklahoma, pleaded guilty to charges in a Superseding Indictment related to the murder of an Idabel resident. At the plea hearing, Capps pleaded guilty to one count of Second Degree Murder in Indian Country and one count of Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence. Capps admitted during the plea hearing he discharged a firearm to commit the murder. According to investigators, Capps was seen with the victim in a white truck on November 15, 2022. Later that evening, law enforcement located Capps at a house in Idabel. During a search of the residence, agents located and recovered a revolver that was reported to be in Capps’s possession earlier in the night. Two days later, the victim was discovered in the same white truck, having been shot in the head. According to forensic reports, the revolver recovered from the Idabel residence fired the fatal bullet. The crime occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Federal Bureau of Investigation, the Choctaw Nation Tribal Police, the Idabel Police Department, and the McCurtain County Sheriff’s Office. The Honorable Judge Gerald L. Jackson, 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. Capps was remanded to the custody of the U.S. Marshals pending sentencing. Assistant United States Attorney Benjamin D. Traster represented the United States.


title: Stilwell Resident Pleads Guilty To Involuntary Manslaughter

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bradley Jordan Eagle-Tate, age 30, of Stilwell, Oklahoma, entered a guilty plea to one count of Involuntary Manslaughter in Indian Country. The Indictment alleged that on June 27, 2022, Eagle-Tate unlawfully killed the victim by failing to devote his full time and attention to driving. According to investigators, Eagle-Tate drifted into the oncoming lane of Oklahoma Highway 100 in a no-passing zone, clipping one vehicle before colliding head-on with a second vehicle. The driver of the second vehicle died at the scene. Eagle-Tate admitted during the plea hearing that he had multiple drugs in his system at the time of the collision. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma. The charges arose from an investigation by the Oklahoma Highway Patrol and the Federal Bureau of Investigation. The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea in Muskogee and ordered the completion of a presentence investigation report. The Court permitted Eagle-Tate to remain out of custody pending sentencing. Assistant United States Attorneys Zack Parsons and Kevin Gross represented the United States.


title: U.S. Attorney's Office For The Eastern District Of Tennessee Announces Over $6 Million In Department Of Justice Programs Grant Funding

component: USAO - Tennessee, Eastern

body_text: KNOXVLLE, Tenn. On September 25, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $6,487,260 in Department of Justice, Office of Justice Programs (OJP) funding. Blount County, County Executive - $22,147. City of Chattanooga - $192,244. City of Kingsport - $28,103. City of Knoxville - $154,782. City of Morristown - $18,819. Community Coalition Against Human Trafficking - $950,000. County of Washington - $31,657. First Things First Inc. - $764,508. Hamilton County Board of Education - $1,000,000. Knox County - $1,300,000. Knoxville Leadership Foundation - $900,000. Rescue 180, Inc. - $1,125,000. The Office of Justice Programs is a federal agency that provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and uphold the rule of law by strengthening the criminal and juvenile justice systems. OJP’s six program offices support state, local, and tribal community safety efforts; crime victim assistance and compensation programs; juvenile justice and child protection activities; sex offender management; a wide range of training and technical assistance opportunities; ground-breaking criminal justice research; and, statistical collections covering a host of justice system topics. The awards announced above are being made as part of the regular end-of-fiscal year cycle. Additional information about FY23 awards can be found on OJP’s website here: www.ojp.gov/funding/explore/ojp-award-data . For more information, please contact ojpcongressional@ojp.usdoj.gov . ###


title: Maryland Man Sentenced To 24 Months In Federal Prison For Federal Firearms Charges

component: USAO - Maryland

body_text: Baltimore , Maryland – Judge James K. Bredar yesterday sentenced Elias Nick Costianes, age 44, formerly of Nottingham, Maryland, to 24 months in prison, followed by two years of supervised release, after Costianes’s plea of guilty to possession of firearms and ammunition by an unlawful user of any controlled substance. The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office. According to his plea agreement, on February 12, 2021, the FBI executed search warrants for Costianes’s residence, his vehicle, and his cellphone. Costianes was taken into custody pursuant to an arrest warrant issued by the U.S. District Court for the District of Columbia. Costianes was advised of his Miranda rights and voluntarily agreed to be interviewed. Costianes told agents that he kept four firearms in cases in the basement. Law enforcement searched the basement and recovered the four firearms described by Costianes: a 9mm pistol; a M&P 15 semi-automatic rifle; a .223 caliber semi-automatic rifle; and a 12-gauge shotgun, as well as thousands of rounds of ammunition, including 9mm, .22 caliber, .223 caliber, and shotgun cartridges. A box containing 100 rounds of 9mm ammunition was also found in the trunk of Costianes’ vehicle. Two of the firearms were semiautomatic and capable of accepting a large-capacity magazine. As detailed in his plea agreement, during the search, law enforcement also recovered marijuana and four vials containing either testosterone enanthate or testosterone cypionate, both controlled substances. The electronic evidence from Costianes’ phone, including photographs and text message conversations, revealed that Costianes illegally used cocaine, testosterone, and marijuana and that his use of each substance was consistent, prolonged, and recent. Costianes further admitted that he not only purchased cocaine and testosterone for personal use, but that he also conspired to distribute, and did distribute, cocaine and testosterone to others. United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Jeffrey J. Izant and P. Michael Cunningham, who prosecuted the federal case. Mr. Barron also thanked Paralegals Andrew Branigan, and Mark Phares, and Intelligence Research Specialist Angelina Thompson for their assistance. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Rhode Island Man Charged with Possessing Twelve Kilograms of Cocaine

component: USAO - Vermont

body_text: Burlington, Vermont - The United States Attorney’s Office stated that Freddy Rodriguez, 38, of West Warwick, Rhode Island, has been charged by criminal complaint with possession with intent to distribute cocaine. Rodriguez initially appeared before Magistrate Judge Doyle on September 20, 2023, and a detention hearing was delayed until September 25, 2023. Rodriguez was released on conditions of pretrial supervision at the conclusion of the hearing on September 25, 2023. According to court documents, federal agents encountered Rodriguez behind a rented camp in Highgate, Vermont the night of September 18 into September 19, 2023. Agents observed Rodriguez walking to the shore of Lake Champlain at approximately 12:05 am carrying a bag. After agents received notice that a vessel had entered the United States on the lake traveling south near the camp’s location, they observed Rodriguez transfer objects from his bag into a kayak, and began to drag the kayak into the water. When agents confronted him, Rodriguez unsuccessfully tried to flee. The objects Rodriguez had loaded into the kayak were brick-like objects wrapped in black cellophane-style packaging containing a white powder that tested presumptively positive for the presence of cocaine. The packages and their contents weighed approximately 12.2 kilograms (approximately 26.4 pounds). The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Rodriguez is presumed innocent until and unless he is convicted of a crime. As presently charged, Rodriguez faces a mandatory minimum sentence of 5 years’ imprisonment and up to 40 years’ imprisonment for the possession of more than 500 grams of cocaine with intent to distribute it. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines and statutory sentencing factors. United States Attorney Nikolas P. Kerest commended the investigatory efforts and rapid response of Homeland Security Investigations and the United States Border Patrol. The prosecutor is Assistant United States Attorney Matthew Lasher. Rodriguez is represented by William Keefe, Esq. of Boston, Massachusetts.


title: United States Obtains More Than $370 Million In Judgments Against Kentucky Businessman And His Companies For Laboratory Testing Scheme That Targeted Medicare

component: USAO - Florida, Middle

body_text: Tampa, FL – United States Attorney Roger B. Handberg announces today that the United States has obtained more than $370 million in judgments against a Kentucky businessman and his companies for a laboratory testing scheme that targeted the Medicare program. In August 2022, the United States filed a complaint-in-intervention against Rajen Shah and his companies United Diagnostics Lab, Tomoka Medical Lab, Tennessee Valley Regional Laboratory, Luminus Diagnostics, and Golden Rule Management for violations of the False Claims Act. The complaint alleged that Shah caused his laboratories to bill Medicare for expensive molecular tests that were not ordered by a licensed healthcare provider. On September 21, 2023, the district court granted the United States’ motion for default judgment and awarded judgment in favor of the United States and against the defendants in the amount of $105,634,097.50 for Shah, $6,159,118 for Tomoka Medical Lab, Inc., $23,996,305.50 for Tennessee Valley Regional Laboratories, LLC, $75,478,674.00 for Luminus Diagnostics, LLC, $105,634,097.50 for Golden Rule Management, LLC, and $54,587,325.00 for United Diagnostics Lab, LLC. “The integrity of our healthcare system depends on the government being able to rely on accurate and truthful information submitted by laboratories, and that labs only bill for services ordered by a beneficiary’s doctor or nurse practitioner,” said U.S. Attorney Handberg. “We will continue to hold people accountable when they disregard Medicare’s regulations.” “Providers who seek to boost their own profits by submitting inaccurate billing information to federal health care programs like Medicare undermine the integrity of these programs, which beneficiaries rely on for safe and effective health care services,” stated Acting Special Agent in Charge Julie Rivera of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency, working with our law enforcement partners, will continue to investigate health care fraud schemes, including those involving providers allegedly submitting fraudulent claims in violation of the False Claims Act.” In 2021, Shah received a jail sentence for a criminal contempt charge stemming from his violation of court orders related to the United States’ fraud investigation. This case was investigated by the U.S. Attorney’s Office and the U.S. Department of Health and Human Services – Office of Inspector General. The case was handled by Assistant U.S. Attorney Sean Keefe. The False Claims Act is a federal statute originally enacted in 1863 in response to defense contractor fraud during the American Civil War. It allows the United States to recover damages and penalties for the false or fraudulent submission of claims seeking reimbursement from the government. The United States intervened in a lawsuit originally brought by Jacqueline Cushing, a former Tomoka employee, under the whistleblower provisions of the False Claims Act. The Act permits private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. The case is captioned United States of America ex rel. Jacqueline Cushing v. Rajen Shah, et al, Case No. 19-cv-2997-T-33TGW.


title: Bowling Green Man Sentenced to 15 Years in Federal Prison for Methamphetamine Trafficking and Firearms Offenses

component: USAO - Kentucky, Western

body_text: Bowling Green, KY – A Bowling Green man was sentenced yesterday to 15 years in prison for methamphetamine trafficking and firearms offenses. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement. According to court documents, Jimmy Norris, 46, was sentenced to 15 years in prison, followed by a 3-year term of supervised release, for possessing with the intent to distribute 23.456 grams of methamphetamine, illegally possessing a sawed-off shotgun that was not registered under the National Firearms Act, and possessing three handguns, two rifles, and a sawed-off shotgun as a convicted felon. Norris was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On August 24, 2016, in Warren Circuit Court, Norris was convicted of first-degree promoting contraband. On August 24, 2016, in Warren Circuit Court, Norris was convicted of first-degree trafficking in a controlled substance. On October 17, 2012, in Warren Circuit Court, Norris was convicted of first-degree wanton endangerment. On September 6, 2006, in the U.S. District Court for the Western District of Kentucky, Norris was convicted of felon in possession of a firearm. There is no parole in the federal system. The case was investigated by the ATF Bowling Green Field Office and the Bowling Green/Warren County AHIDTA Drug Task Force. Assistant U.S. Attorney Mark J. Yurchisin II, of the U.S. Attorney’s Bowling Green Branch Office, prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. ###


title: Federal Grand Jury Indicts New Orleans Man for Murdering Two Victims

body_text: NEW ORLEANS, LOUISIANA – On August 18, 2023, BLAIR TAYLOR, a/k/a “Blood” a New Orleans resident, was charged in a recently unsealed two-count indictment. Both Counts 1 and 2, charged TAYLOR with causing a death through the use of a firearm, pursuant to Title 18, United States Code, Section 924(j)(1), announced U.S. Attorney Duane A. Evans. TAYLOR was arrested on Wednesday, September 20, 2023, in Norwich, Connecticut. According to the indictment, on or about August l0, 2014, TAYLOR , during and in relation to a drug trafficking crime described as a conspiracy to distribute and to possess with the intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841 and 846, knowingly used, carried, brandished, and discharged a firearm, during his commission of a violation of Title18, United States Code, Section 924(c), that caused the deaths of two victims. The indictment further alleges that the deaths of these victims, through the use of a firearm, constituted the crime of murder as defined in Title 18, United States Code, Section 1111; all of which violated Title 18, United States Code, Sections 924(j)(1) and 2. As to each count, TAYLOR faces a maximum term of life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a mandatory special assessment fee of $100. U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt. 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. The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Inga Petrovich and Unit Chief Attorney Elizabeth Privitera, both of the Violent Crime Unit, are in charge of the prosecution.


title: Trinitarios Gang Member Charged in Connection With Two Shootings in Queens and Brooklyn on the Same Day

component: USAO - New York, Eastern

body_text: An indictment was unsealed today in federal court in Brooklyn charging Abel Mora, a member of the Trinitarios, a violent street gang, with being a convicted felon in possession of ammunition related to two separate shootings Mora allegedly committed in Queens and Brooklyn on August 13, 2023. Mora was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Robert M. Levy. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the charges and arrest. “As alleged, this defendant was a one-man crime wave, who engaged in a broad daylight gunfight in Queens, then robbed and shot someone in Brooklyn later that same day,” stated United States Attorney Peace. “This Office will continue working tirelessly to dismantle gangs and reduce gun violence by prosecuting violent offenders who put the safety of communities in our district at extreme risk.” Mr. Peace expressed his appreciation to the FBI/NYPD Metro Safe Streets Task Force and the NYPD’s 75th and 101 st Precincts for their outstanding work and assistance in this investigation and prosecution. “Gang members like Mora continue to plague our city with his blatant disregard for the safety of our community and his reckless indifference to human life. It is only through our local and federal partnerships that we are able to put a stop to these violent repeat offenders,” stated FBI Assistant Director-in-Charge Smith. “This case is another example of how the FBI and our law enforcement partners are dedicated to keeping the streets of New York City Safe for everyone in our community.” “Today’s indictment is a result of the tight focus the NYPD and our law enforcement partners maintain to identify and remove from the streets the individuals who are most significantly driving crime and violence in New York City neighborhoods,” stated NYPD Commissioner Caban. “I thank our colleagues at the FBI and the office of the U.S. Attorney for the Eastern District, in particular, for their unwavering dedication to our shared public safety mission.” As alleged in the indictment and other court filings, the charges stem from two shootings allegedly committed by the defendant on August 13, 2023 within a span of nine hours. At approximately 1:05 p.m. in Far Rockaway, Queens, Mora exchanged gunfire with individuals inside of a vehicle as they chased each other throughout a residential neighborhood in the vicinity of New Haven Avenue and Beach 13 th Street. The shooting, which was captured on video, arose from a fight that broke out between an occupant of the vehicle and Mora’s associate. Residents of the neighborhood, including children, ran for cover to escape harm. The second shooting occurred at approximately 9:18 p.m. outside of 3441 Fulton Street in East New York, Brooklyn. Mora allegedly shot a victim and robbed him of his backpack. Video surveillance capturing this incident showed that Mora committed this violent crime outside of a busy convenience store with customers and children present inside and outside the location. Immediately following the shooting, Mora fled to Etna Street with the stolen property, where he was picked up by an associate on a scooter. The victim survived. A total of ten 9mm Luger cartridges were possessed by Mora in the two shootings. This morning, law enforcement recovered a loaded 9mm firearm with a 17-round magazine inside Mora’s residence. At the time of the shootings, Mora had a prior felony conviction for assault. The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty. If convicted, Mora faces up to 15 years in prison on each of the two counts. This case was brought as 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 make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Emily J. Dean and Dana Rehnquist are in charge of the prosecution. The Defendant : ABEL MORA Age: 22 Far Rockaway, Queens E.D.N.Y. Docket No. 23-CR-383 (FB)


title: Physician and Two Pharmacists Charged for $170M Fraud Scheme

component: Criminal Division

body_text: A 13-count indictment was unsealed today charging two pharmacists and a physician for their roles in a multimillion-dollar health care fraud, kickback, and money laundering scheme. According to court documents, Shalondria Simpson, 45, of Houston, is a pharmacist who owned and operated two pharmacies in Houston: Advance Pharmacy (Advance) and TruCare Pharmacy (TruCare). Simpson’s twin sister, physician Lashondria Simpson-Camp, 45, of Allen, Texas, allegedly referred prescriptions to Advance and TruCare in exchange for illegal kickbacks and bribes. Shayla Bryant, 38, of Houston, was a pharmacist and Advance and TruCare’s business manager. Between 2016 and 2022, Simpson, Simpson-Camp, and Bryant allegedly conspired with others to submit false and fraudulent claims to the Department of Labor’s Office of Workers’ Compensation Program (DOL-OWCP), which administered workers’ compensation benefits on behalf of the Federal Employee’s Compensation Act (FECA), for high reimbursing drugs that were often medically unnecessary and induced by kickbacks and bribes. Further, Simpson, Simpson-Camp, Bryant, and others allegedly conspired to pay and receive these kickbacks. Simpson and Bryan allegedly paid illegal kickbacks and bribes, often through shell entities or in cash, directly to physicians like Simpson-Camp, a clinic owner, a medical assistant, and other marketers. In total, Simpson’s pharmacies allegedly submitted approximately $170 million in fraudulent claims to FECA through DOL-OWCP. To conceal the scheme and disguise its proceeds, Simpson also allegedly conspired to launder the proceeds of the criminal activity through financial transactions greater than $10,000. According to the indictment, after learning of the investigation, Simpson attempted to cover her tracks by converting criminal proceeds to cash, and transferring funds among over ten bank accounts and a cryptocurrency wallet. She also allegedly solicited others’ help in liquidating assets and concealing her ownership and control of those assets. The indictment charges Simpson, Simpson-Camp, and Bryant with one count of conspiracy to defraud the United States and pay and receive health care kickbacks and one count of conspiracy to commit health care fraud. Simpson is also charged with five counts of paying health care kickbacks, one of which also charges Bryant. The indictment further charges Simpson with conspiracy to launder monetary instruments and five counts of money laundering. If convicted, Simpson, Simpson-Camp, and Bryant each face a maximum penalty of five years in prison for conspiracy to defraud the United States and pay and receive health care kickbacks, and 10 years in prison for conspiracy to commit healthcare fraud. Simpson and Bryant each face a maximum penalty of 10 years in prison for each count of paying health care kickbacks. Simpson faces a maximum penalty of 20 years in prison for conspiracy to launder money instruments and 10 years for each count of money laundering. Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas, Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General (USPS-OIG), Acting Special Agent in Charge Casey Howard of the Department of Labor Office of Inspector General (DOL-OIG), Acting Special Agent in Charge David L. Martinez of the FBI Houston Field Office, and Special Agent in Charge Kris Raper of the Department of Veterans Affairs Office of Inspector General (VA-OIG) South Central Field Office made the announcement. The USPS-OIG, DOL-OIG, FBI, and VA-OIG are investigating the case. Trial Attorneys Devon Helfmeyer and Andrew Tamayo of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brandon Fyffe for the Southern District of Texas are prosecuting the case. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit . An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Co-Founder Of Global Multimillion-Dollar Cryptocurrency Ponzi Scheme “AirBit Club” Sentenced To 12 Years In Prison

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that PABLO RENATO RODRIGUEZ, the co-founder of AirBit Club with GUTEMBERG DOS SANTOS, was sentenced to 12 years in prison for orchestrating the massive global AirBit Club pyramid scheme. RODRIGUEZ and his co-conspirators deceived individuals into investing in AirBit Club, a purported cryptocurrency mining and trading company, and executed a sophisticated money laundering operation to hide their illegal profits pilfered from AirBit Club. RODRIGUEZ’s co-defendants, DOS SANTOS, SCOTT HUGHES, CECILIA MILLAN, and KARINA CHAIREZ have pled guilty and are awaiting sentencing. RODRIGUEZ and his co-defendants collectively have been ordered to forfeit their fraudulent proceeds of AirBit Club, which include seized or restrained assets consisting of U.S. currency, Bitcoin, and real estate currently valued at approximately $100 million. U.S. District Judge George B. Daniels imposed today’s sentence. U.S. Attorney Damian Williams said: “Rodriguez co-founded and led an international multimillion-dollar pyramid scheme that preyed on mostly unsophisticated investors with false promises that their money was being invested in cryptocurrency trading and mining. Instead of investing on behalf of investors, Rodriguez hid victims’ money in a complex laundering scheme using Bitcoin, an attorney trust account, and international front and shell companies and used victims’ money to line his own pockets. Rodriguez is one of many recent examples of individuals exploiting cryptocurrency to commit fraud, and today’s sentence should deter anyone who may be tempted to defraud others with false promises of cryptocurrency investments.” According to public court filings and statements made in Court: RODRIGUEZ and DOS SANTOS co-founded AirBit Club in 2015. They coordinated a scheme in which victim-investors (the “Victims”) were induced to invest in AirBit Club based on the false promise of guaranteed profits in exchange for cash investments in club “memberships” (the “AirBit Club Scheme” or the “Scheme”). AirBit Club, through its founders, RODRIGUEZ and DOS SANTOS, as well as its promoters (the “Promoters”), including MILLAN and CHAIREZ, marketed AirBit Club as a multilevel marketing club in the cryptocurrency industry. Promoters falsely promised Victims that AirBit Club earned returns on cryptocurrency mining and trading and that Victims would earn passive, guaranteed daily returns on any membership purchased. RODRIGUEZ, DOS SANTOS, HUGHES, MILLAN, and CHAIREZ traveled throughout the United States and around the world to places in Latin America, Asia, and Eastern Europe, where they hosted lavish expos and small community presentations aimed at convincing Victims to purchase AirBit Club memberships. In furtherance of the AirBit Club Scheme, the Victims were fraudulently induced to buy memberships in cash, including in the Southern District of New York. Following a Victim’s investment, a Promoter provided the Victim with access to an online AirBit Club portal to view the purported returns on memberships (the “Online Portal”). While Victims saw “profits” accumulate on their Online Portal, those representations were false; no Bitcoin mining or trading on behalf of Victims in fact took place. Instead, RODRIGUEZ and his co-conspirators enriched themselves and spent Victim money on cars, jewelry, and luxury homes, and financed more extravagant expos to recruit more Victims. In many instances, as early as 2016, Victims who attempted to withdraw money from the AirBit Club Online Portal and complained to a Promoter were met with excuses, delays, and hidden fees amounting to more than 50% of the Victim’s requested withdrawal, if they were able to make any withdrawal at all. In April 2020, another victim received a notice on the AirBit Club Online Portal that his account was closed – and principal investment lost – due to “execution of financial sustainability Reserve, policy #34 of the AirBit Club Terms and Conditions, due to the economic and financial crisis caused by (COVID-19).” This excuse regarding the COVID-19 pandemic was false. RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN sought to conceal the AirBit Club Scheme, as well as their respective control of the proceeds of that Scheme, by requesting that Victims purchase memberships in cash, using third-party cryptocurrency brokers, and by laundering the Scheme’s proceeds through several domestic and foreign bank accounts, including an attorney trust account managed by HUGHES (the “Hughes Trust Account”). The Hughes Trust Account was ostensibly intended to maintain custody of HUGHES’s law practice’s client funds. Instead, the Hughes Trust Account was used by RODRIGUEZ, DOS SANTOS, HUGHES, CHAIREZ, and MILLAN to conceal the nature and origin of the AirBit Club Scheme’s illicit proceeds. Through that account, HUGHES directed Victim funds to the personal expenses of RODRIGUEZ, DOS SANTOS, CHAIREZ, MILLAN, and himself, and funded promotional events and sponsorships designed to further promote the AirBit Club Scheme. Before AirBit Club, RODRIGUEZ and DOS SANTOS were sued by the Securities and Exchange Commission (“SEC”) for perpetrating another pyramid investment scheme known as Vizinova and paid $1.7 million in disgorgement and fines. HUGHES, an attorney licensed to practice law in California, represented RODRIGUEZ and DOS SANTOS in the Vizinova SEC action. HUGHES then aided RODRIGUEZ and DOS SANTOS in perpetrating the AirBit Club Scheme by, among other things, helping to remove negative information about AirBit Club and Vizinova from the internet. * * * RODRIGUEZ, 40, of Irvine, California, was also sentenced to three years of supervised release. RODRIGUEZ was further ordered to pay a forfeiture of $65 million and to forfeit various items of property, including: (i) $999,936.22 formerly held in escrow by Insured International Aircraft Title Service LLC for the Gulfstream Jet with Tail Number N370Z and Serial Number 2082; (ii) 1,322.98963846 in BTC seized from various Bitcoin wallets; (iii) $896,483.00 in United States currency seized from RODRIGUEZ’s California residence; (iv) RODRIGUEZ’s residence located at 117 Amber Sky in the City of Irvine, California 92618; (v) various watches and jewelry seized from RODRIGUEZ’s California residence; and (vi) 2,499.997 in BTC seized from various Bitcoin wallets. DOS SANTOS, 48, of Panama City, Panama, MILLAN, 41, of Greensboro, North Carolina, CHAIREZ, 47, of Modesto, California, and HUGHES, 47, of Newport Beach, California, have pled guilty to charges including wire fraud conspiracy, which carries a maximum potential sentence of 20 years in prison; money laundering conspiracy, which carries a maximum potential sentence of 20 years in prison; and bank fraud conspiracy, which carries a maximum potential sentence of 30 years in prison. MILLAN, CHAIREZ, and HUGHES are scheduled to be sentenced on October 3, 2023. DOS SANTOS is scheduled to be sentenced on October 4, 2023. Mr. Williams praised the outstanding investigative work of Special Agents from Homeland Security Investigations’ El Dorado Task Force. Mr. Williams further thanked the New York Waterfront Commission for its assistance in the forfeiture process and the attorneys and investigators at the SEC whose expertise and diligence were integral to the development of this investigation. If you believe you are a victim of the AirBit Club fraud, updated information regarding the case and victims’ rights, as well as contact information for the victim witness coordinator, is available here . The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Kiersten A. Fletcher, Samuel L. Raymond, and Cecilia E. Vogel are in charge of the prosecution.


title: Arkansas Business Owner Pleads Guilty to Fraudulently Obtaining More than $16.5 Million in COVID Relief Funding

component: USAO - Washington, Eastern

body_text: Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Tyler Keith Penix, age 37, of Bentonville, Arkansas, formerly known as Tyler Keith Andrews, pled guilty to fraudulently obtaining more than $16.5 million as part of a wide-ranging conspiracy to obtain fraudulent COVID relief funding. United States District Judge Thomas O. Rice accepted Andrews’ guilty plea, and set sentencing for January 11, 2024, at 10 a.m., in Spokane. This conviction is the most recent conviction, and most significant loss amount, announced by the Eastern Washington COVID-19 Fraud Strike Force launched in 2022. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided forgivable loans to eligible small businesses to retain jobs and maintain payroll during the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low-interest bridge funding for small businesses placed at risk during the pandemic. “COVID-19 relief programs quickly ran out of money due to the number of businesses that requested funding, meaning that struggling, deserving small businesses were not able to obtain critically needed funding to keep their businesses afloat during the shutdowns and disruptions caused by the COVID pandemic,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because it is critical to the strength and safety of our communities that we all work together to combat pandemic-related fraud and bring much-needed accountability to these programs. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.” In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security (DHS) OIG, Department of Labor OIG, Air Force Office of Special Investigations, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments and convictions, and have recovered millions of dollars in penalties and restitution for the public. In the plea agreement accepted by the court, and in information disclosed during court proceedings, Mr. Penix admitted to preparing and submitting dozens of fraudulent applications for PPP and EIDL funding for purported businesses supposedly owned by himself and others. For example, Mr. Penix admitted to preparing two EIDL applications for two purported businesses owned by Spokane resident and co-defendant Yuriy Anishchenko. Through the fraudulent applications prepared by Penix, Anishchenko received more than $300,000 for his two purported businesses, neither of which was an active business at the time of the applications. According to court documents, Anishchenko then shared some of the proceeds with Penix, and referred to Penix more than a dozen additional potential “clients” for which Penix prepared and submitted dozens of additional fraudulent EIDL applications using false information and fraudulent documents, and that Penix shared in the proceeds from many of these as well. Finally, Penix admitted to preparing and submitting numerous false and fraudulent PPP and EIDL applications on behalf of purported businesses owned by him, again using fictitious documentation and false statements. In total, Penix admitted to obtaining more than $3.25 million in PPP and EIDL funding for his own businesses, and another $13.5 million in EIDL funding for Anishchenko and other co-conspirators. “I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, the FBI, and TIGTA,” said U.S. Attorney Waldref. “The extent of Mr. Andrews’s fraud – more than $16 million is staggering. I’m so grateful for the support and collaboration with the U.S. Attorney’s Office for the Western District of Arkansas and the State Department’s Diplomatic Security Service. This was an extensive and wide-ranging conspiracy that required exceptional investigative work and close coordination. We will continue to work with our law enforcement partners to strengthen our communities by protecting our small and local businesses.” “This guilty plea sends a signal to wrongdoers that evidence of their crimes will be brought to light,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our Office will remain relentless in the pursuit of fraudsters who sought to exploit SBA’s vital pandemic response programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.” “The money these subjects fraudulently received should have benefitted legitimate small businesses during the pandemic,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “I’m thankful for the work by members of the COVID Fraud Strike Force and the United States Attorney’s Offices to hold accountable those who would take advantage of disaster funding for their own nefarious purposes. This should serve as an example of the effort and resources law enforcement and prosecutors will leverage to seek justice.” The charges to which Andrews pled carries a maximum sentence of up to 20 years in federal prison. The cases were investigated by the Eastern Washington COVID Fraud Strike Force, and in particular by SBA-OIG, the FBI, and TIGTA. The U.S. Attorney’s Office for the Western District of Arkansas and Department of State Diplomatic Security Service provided additional assistance and support. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States. While Andrews has been adjudged guilty, the Indictment against Anishchenko remains pending. An Indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Case No. 2:22-CR-00057-TOR


title: Woman who Tampered with a Witness Involved in a Federal Trial Sentenced to 30 Months in Federal Prison

component: USAO - Iowa, Northern

body_text: A woman who tampered with a witness involved in a federal trial was sentenced September 25, 2023, to 30 months in federal prison. Jenise Colvin, age 38, from Chicago, Illinois, received the prison term after a May 5, 2023 guilty plea to conspiracy to tamper with a witness and tampering with a witness. Evidence at the sentencing hearing showed that Colvin and her co-defendant, Michael Lynn Ashford, spoke about their plan to contact the witness who had called 911 after a firearm was pointed at the witness while at a gas station in Dubuque. Colvin then called the witness. When Colvin spoke to the witness, she told the witness that they knew personal information about the witness, including name and address. In imposing its sentence, the district court expressed that witness tampering goes to the core of the justice system. Colvin was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Colvin was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Colvin is being held in the United States Marshal’s custody until he can be transported to a federal prison. Co-defendant Michael Lynn Ashford has not yet been sentenced. He faces a possible maximum sentence of 20 years’ imprisonment for each count of witness tampering. The case was prosecuted by Special Assistant United States Attorney Nicole L. Nagin, and it was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Dubuque Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR- 1037-02. Follow us on Twitter @USAO_NDIA.


title: Modesto Man Pleads Guilty to Being a Felon in Possession of Ammunition

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Myron Kilgore, 44, of Modesto, pleaded guilty Monday to being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced. According to court documents, on Feb. 2, 2021, Kilgore was arrested in Modesto after a Glock style P80 handgun was discovered under the driver’s side floormat during a search of his vehicle. The handgun was loaded with six rounds of ammunition. Kilgore is a convicted felon and is prohibited from possessing firearms and ammunition. This case is the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Chan Hee Chu is prosecuting the case. Kilgore is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 18, 2023. Kilgore faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. 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 U.S. Department of Justice 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.