title: Oxford Man Sentenced to Two Years in Prison for Drug Charges

body_text: BOSTON – An Oxford man was sentenced today in federal court in Boston for his role in a large-scale drug trafficking conspiracy that distributed controlled substances in and around the Quincy and Weymouth areas. Chaasad Cyprien, 24, was sentenced by U.S. Senior District Court Judge William G. Young to two years in prison and three years of supervised release. In April 2024 , Cyprien pleaded guilty to possession with intent to distribute cocaine and to conspiracy to distribute and possess with intent to distribute cocaine. Cyprien was charged in September 2022 along with Aderito Amado, Neylton Fontes and Erica Vieira. Until at least 2021, Cyprien conspired with Amado, Vieira and Fontes to distribute certain quantities of controlled substances in and around Quincy and Weymouth. At the time of his arrest, Cyprien was with Amado and Fontes sitting inside a Jeep that contained controlled substances, including cocaine and cocaine base. Two cellular devices recovered from the Jeep were identified as belonging to Cyprien – each of which were found to contain evidence, including communications and/or images, that further connected Cyprien to the drug trafficking conspiracy. Fontes and Vieira pleaded guilty in May 2024. Amado was convicted by a federal jury in June 2024 for his involvement in the drug conspiracy – including drug distribution and firearm-related charges. The defendants are currently awaiting sentencing. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance in the investigation was provided by the Quincy, Weymouth, Braintree, Randolph and Brockton Police Departments. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Philip A. Mallard of the Organized Crime & Gang Unit are prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Businessman Arrested for Multi-Million Dollar Fraud Scheme to Defraud Pandemic Relief Programs

component: USAO - District of Columbia

body_text: WASHINGTON – Jose “Joe” Biaou, 40, a local businessman and founder of FRB Capital Group LLC (“FRB”), was arrested today on charges he defrauded the Paycheck Protection (PPP) and the Economic Injury Disaster Loan (EIDL) programs, announced United States Attorney Matthew M. Graves and Inspector in Charge Damon E. Wood of the Washington Division of the U.S. Postal Inspection Service’s (USPIS). The indictment, returned on July 16, 2024, was unsealed today and Biaou made an initial appearance in U.S. District Court to face six counts of wire fraud and one count of theft of government property. According to the multi-count indictment, Biaou applied for and received more than $3.5 million in PPP and EIDL loan proceeds on behalf of two businesses he controlled – FRB and Millenium Global Finance. With respect to his applications on behalf of FRB, a loan brokerage firm that connected real estate developers with lenders, Biaou consistently inflated the number of employees the company had, as well as their average monthly salaries and other financial information. The indictment further alleges that Biaou then applied for forgiveness of one of the PPP loans, again, submitting false information about how his business spent the funds during the COVID-19 pandemic. In addition to the false applications submitted on behalf of FRB, Biaou allegedly submitted fabricated documentation in support of these applications, including fraudulent payroll reports, a fictitious birth certificate, and a forged lease, among other things. With respect to Millenium Global Finance according to the indictment, Biaou applied for and received $1.25 million in PPP funds after representing that Global had 52 employees and an average monthly payroll of more than $520,000 throughout 2019. In reality, Millenium Global was not even in operation at that time. If convicted, the defendant faces a maximum statutory sentence of 20 years in prison for the charged offenses. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided for informational purposes. The sentence will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. This case is being investigated by the Washington Division of the United States Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Will Hart. 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: Bitwise Founders Plead Guilty to $115 Million Fraud Scheme

component: USAO - California, Eastern

body_text: FRESNO , Calif. — Irma Olguin, Jr., 43, and Jake Soberal, 38, the founders and leaders of the failed Fresno-based start-up company, Bitwise Industries, pleaded guilty today to one count of conspiring to commit wire fraud and one count of wire fraud, United States Attorney Phillip A. Talbert announced. They admitted to defrauding investors, lenders, and others out of $115,000,000. According to court records, Olguin and Soberal founded Bitwise in 2013. The company then grew to have three business lines: (1) technology workforce training program, (2) technology consulting service, and (3) a real estate arm that bought, renovated, and leased commercial properties. The company promised to create jobs for underserved groups of people, revitalize blighted urban areas, and show that such a project could be highly profitable. By early 2022, Bitwise had raised over $75,000,000 through Series A and B investment rounds, and the company had grown to 800 employees and apprentices across multiple offices and states. But the company was not making a significant profit and was running low on funds. Thereafter, Olguin and Soberal conspired to mislead investors, lenders, and others into believing that Bitwise was excelling when it was instead failing. They fabricated financial information in investor materials and altered and forged other financial records to inflate the company’s revenues, cash balances, and other financial markers. The following are illustrative examples of Olguin and Soberal’s fraud: In a February 2022 presentation and July 2022 prospectus that were circulated to investors, Olguin and Soberal represented that Bitwise’s cash balance was over $44,000,000 as of the end of 2021. They also represented that the company’s revenue was more than $58,000,000. In reality, the company’s cash balance was less than $12,000,000 at that time and its revenue was minimal; In June and July 2022, Olguin and Soberal falsely represented to a California-based investment firm that Bitwise had secured a $150,000,000 investment from another, London-based investment firm. This was done to convince the California-based investment firm to purchase several buildings that Bitwise owned. Several months later, Soberal falsely represented to another lender that Bitwise still owned those buildings to get the lender to loan Bitwise millions more dollars; In a March 2023 presentation circulated to investors, Olguin and Soberal represented that Bitwise’s cash balance was over $77,000,000 as of the end of 2022. They also represented that the company’s revenue was more than $143,000,000. In reality, the company’s cash balance was less than $5,000,000 at that time and its revenue was minimal; Also in March 2023, Olguin and Soberal provided an investor with an altered version of an audit of Bitwise that was previously conducted by an international audit firm. They altered the audit to make it appear as though Bitwise’s revenue was 300% higher than was true; Also in March 2023, Soberal represented to a long-time Bitwise employee that the company had sufficient resources on-hand to induce the employee to make a significant loan to the company. This pattern continued until the end of May 2023 when Bitwise ran out of money and the company collapsed. As a result of Olguin and Soberal’s false and fraudulent representations, Bitwise received $115,000,000 in investments and loans to which the company was not entitled. The ill-gotten money went towards paying the company’s payroll, outfitting its office spaces, and repaying debts owed to prior investors and lenders, among other business expenses. Olguin and Soberal admitted that they used their positions as Bitwise’s co-Chief Executive Officers to conceal their fraud from the company’s board of directors and others at the company. They also admitted to using sophisticated means to deceive and cheat investors and lenders out of their money. This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant United States Attorneys Joseph Barton and Henry Carbajal III are prosecuting the case. Olguin and Soberal are scheduled to be sentenced on Nov. 6, 2024. They face maximum statutory penalties of 20 years in prison and a $250,000 fine for each of the conspiracy to commit wire fraud and wire fraud counts. That makes for a total maximum penalty of 40 years in prison and a $500,000 fine. They also agreed to pay full restitution. The actual sentences, 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.


title: Russian International Money Launderer Sentenced To Three Years In Prison For Illicitly Procuring Large Quantities Of U.S.-Manufactured Dual-Use, Military Grade Microelectronics For Russian Entities

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Matthew G. Olsen, the Assistant Attorney General of the Justice Department’s National Security Division; Matthew S. Axelrod, the Assistant Secretary of Export Enforcement for Department of Commerce’s the Bureau of Industry and Security (“BIS”); and Robert Wells, the Executive Assistant Director of the National Security Branch of the Federal Bureau of Investigation (“FBI”), announced that MAXIM MARCHENKO was sentenced today by U.S. District Judge Nelson S. Román to three years in prison for his role in procuring dual-use, military grade OLED micro-displays for Russian end users. MARCHENKO previously pled guilty to money laundering and smuggling charges before U.S. Magistrate Judge Victoria Reznik on February 29, 2024. U.S. Attorney Damian Williams said: “This Office will stop at nothing to hold accountable those who seek to circumvent our laws to gain access to some of our most sensitive technologies. Today’s sentence should be a reminder that no number of shell companies or obfuscation will stop this Office in its pursuit of those who seek to illicitly gain access to controlled technologies.” Assistant Attorney General Matthew G. Olsen said: “Today’s sentence holds Mr. Marchenko accountable for his role in a procurement syndicate that funneled U.S.-manufactured military-grade microelectronics to end users in Russia, illegally delivering controlled technologies worth hundreds of thousands of dollars. The Justice Department remains relentlessly focused on dismantling illicit procurement networks led by individuals like the defendant, who use their business skills and connections to advance the Russian war agenda.” BIS Assistant Secretary of Export Enforcement Matthew S. Axelrod said: “The transshipment of military-grade microelectronics through Hong Kong to Russia helps fuel the engine of Russia’s war machine. Today’s sentencing is just the latest example of our unceasing efforts to target and disrupt illegal Russian procurement networks.” FBI Executive Assistant Director Robert Wells said: “Marchenko and his co-conspirators operated an international smuggling network of sensitive microelectronics used in military gear and other weapons systems. Today’s sentencing demonstrates the FBI’s resolve in doing our part to protect national security and prevent American military technology from being diverted to foreign adversaries and hostile nation states.” According to the allegations contained in the Information and other filings and statements made in court: MAXIM MARCHENKO is a Russian national who resides in Hong Kong and operates several Hong Kong-based shell companies, including Alice Components Co. Ltd. (“Alice Components”), Neway Technologies Limited (“Neway”), and RG Solutions Limited (“RG Solutions”). MARCHENKO and two co-conspirators (“CC-1” and “CC-2”), who are also Russian nationals, operate an illicit procurement network in Russia, Hong Kong, and elsewhere overseas. This procurement network has fraudulently obtained from U.S. distributors large quantities of dual-use, military grade microelectronics, specifically OLED micro-displays, on behalf of Russia-based end users. To carry out this scheme, MARCHENKO, CC-1, and CC-2 used shell companies based in Hong Kong and other deceptive means to conceal from U.S. Government agencies and U.S. distributors that the OLED micro-displays were destined for Russia. The technology that MARCHENKO and his co-conspirators fraudulently procured have significant military applications, such as in rifle scopes, night vision goggles, thermal optics, and other weapon systems. To perpetrate the scheme, MARCHENKO and other members of the conspiracy acquired the dual-use OLED micro-displays from U.S.-based distributors using MARCHENKO’s Hong Kong-based shell companies, including Alice Components, Neway, and RG Solutions. Members of the conspiracy, including MARCHENKO, procured these sensitive microelectronics by falsely representing to the U.S. distributors (who, in turn, are required to report to U.S. agencies) that Alice Components was sending the shipments to end users located in China, Hong Kong, and other countries outside of Russia for use in electron microscopes for medical research or hunting rifles. In reality, the OLED micro-displays were destined for end users in Russia. MARCHENKO and other members of the conspiracy concealed the true final destination (Russia) from U.S. distributors for the purpose of causing false statements to the U.S. agencies. To conceal the fact that these OLED micro-displays were destined for Russia, MARCHENKO and other members of the conspiracy worked together to transship the illicitly procured OLED micro-displays by using pass-through entities principally operated by MARCHENKO in third countries, such as Hong Kong. MARCHENKO then caused the OLED micro-displays to be shipped to the ultimate destination in Russia using, among other entities, a freight forwarder known to provide freight forwarding services to Russia. In addition, MARCHENKO and other members of the conspiracy used Hong Kong-based shell companies, principally operated by MARCHENKO, to conceal the fact that payments for the OLED micro-displays were coming from Russia. In total, between in or about May 2022 and in or about August 2023, MARCHENKO’s shell companies funneled more than $1.6 million to the U.S. in support of the procurement network’s efforts to smuggle the OLED micro-displays to Russia. * * * In addition to the prison term, MARCHENKO, 52, a Russian citizen who resided in Hong Kong, was sentenced to three years of supervised release. Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and the New York Field Office of the BIS. Mr. Williams also thanked the FBI’s Legal Attaché office in Australia; the U.S. Department of State’s Diplomatic Security Service; the Department of Justice’s National Security Division, Counterintelligence and Export Control Section; and the Office of International Affairs of the Department of Justice’s Criminal Division for their assistance. This case is being handled by the Office’s White Plains Division and the Illicit Finance and Money Laundering Unit. Assistant U.S. Attorneys Jennifer N. Ong and Shiva H. Logarajah are in charge of the prosecution, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section. Today’s actions were coordinated through the Justice Department’s Task Force KleptoCapture and the Justice and Commerce Departments’ Disruptive Technology Strike Force. Task Force KleptoCapture is an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions and economic countermeasures that the United States has imposed, along with its allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Disruptive Technology Strike Force is an interagency law enforcement strike force co-led by the Departments of Justice and Commerce designed to target illicit actors, protect supply chains, and prevent critical technology from being acquired by authoritarian regimes and hostile nation states.


title: Lexington Man Sentenced for Armed Fentanyl and Methamphetamine Trafficking

component: USAO - Kentucky, Eastern

body_text: LEXINGTON, Ky. – A Lexington man, Khmari Smith, 21, was sentenced on Tuesday, by Chief U.S. District Judge Danny Reeves, to 32 years, for conspiracy and possession with intent to distribute methamphetamine and fentanyl and possession of firearms in furtherance of drug trafficking offenses. In May 2023, law enforcement began investigating an individual distributing methamphetamine and fentanyl in Lexington and identified the vehicle being used to transport the drugs into the area. On July 10, 2023, law enforcement located the vehicle traveling from Detroit to Kentucky and observed the vehicle following another car and mirroring its movements, which led them to believe the vehicles were connected. Law enforcement conducted a traffic stop on both vehicles. Khmari Smith, and his brother and co-defendant, Khari Qunarll Smith, 23, were found in one vehicle, with no evidence of drugs. In the other vehicle, Smith’s co-defendant, Brianna Hanspard, 29, of Detroit, was found with 4.6 kilograms of methamphetamine and 199.7 grams of fentanyl. Hanspard admitted to entering into an agreement with Khmari Smith and others to transport drugs from Detroit to Lexington for payment. Further investigation proved that Khari and Khmari Smith continued their drug distribution, from sources in Detroit. In August 2023, law enforcement searched their leased residences in Lexington. At the first residence they found 354.4 grams of fentanyl and 216.3 grams of methamphetamine; at the second, the found additional methamphetamine and fentanyl, as well as a drug processing room. Law enforcement also found 18 firearms at the first residence and 12 firearms at the second residence. Khmari Smith admitted that he received those firearms as payment for the drugs he distributed. Khari Smith is scheduled to be sentenced at a date yet to be determined by the Court. Hanspard was previously sentenced to 84 months in prison. Under federal law, Khmari Smith and Hanspard must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office for five years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Erek Davodowich, Acting Special Agent in Charge, DEA, Louisville Field Division; Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentences. The investigation was conducted by the DEA, KSP, and Lexington Police Department. Assistant U.S. Attorney Roger West prosecuted the case on behalf of the United States. This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. — END —


title: Luzerne County Man Charged with Firearm Offenses

component: USAO - Pennsylvania, Middle

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justis Shea, age 31, of Glen Lyon, PA, was indicted by a federal grand jury for unlawfully possessing a firearm as a convicted felon and for possession of that firearm in furtherance of a drug trafficking offense. According to United States Attorney Gerard M. Karam, the indictment alleges that from on or about May 1, 2024, to on or about July 2, 2024, Shea possessed a Smith & Wesson M&P 15 rifle in Luzerne County, Pennsylvania, after having previously been convicted of a crime punishable by more than one year in prison. The indictment further alleges that Shea possessed that firearm in furtherance of a drug trafficking offense. The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Kingston Police Department, the Ashley Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James Buchanan is prosecuting the case. This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty under federal law for these offenses is life imprisonment and a fine of $250,000. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant. # # #


title: Summerville Man Sentenced to 17 Years in Federal Prison for Possession of Child Sex Abuse Materials

component: USAO - South Carolina

body_text: CHARLESTON, S.C. — Adam Baez, 46, of Summerville, was sentenced to 17 years in federal prison after pleading guilty to possession of child sexual abuse materials.* Evidence presented to the court showed that Baez possessed more than 600 images of prepubescent child sexual abuse materials on multiple electronic devices. In addition to the possession of the images, evidence showed that Baez exploited a minor victim over the course of several years and produced images of this minor victim. United States District Judge David C. Norton sentenced Baez to 210 months' imprisonment, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system. Baez was also ordered to pay $15,000.00 in restitution to the identified victims of his offense. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc . This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Amy F. Bower is prosecuting the case. ### * The term “child pornography” is currently used in federal statutes and is defined as any visual depiction of sexually explicit conduct involving a person less than 18 years old. While this phrase still appears in federal law, “child sexual abuse material” is preferred, as it bette r reflects the abuse that is depicted in the images and videos and the resulting trauma to the child.


title: Las Vegas Man Sentenced To Prison For Making Threats To Kill Family Member Of Federal Official

component: USAO - Nevada

body_text: LAS VEGAS – A Las Vegas man was sentenced Tuesday to 46 months in prison to be followed by three years of supervised release for leaving a threatening voicemail and text messages threatening to kill a family member of a then member of the U.S. House of Representatives. According to court documents, in the late evening of June 1, and the early morning of June 2, 2023, Anthony Lewis Hamelin, also known as “Tony Hamelin,” 52, called the spouse of a then-member of the U.S. House of Representatives and left a voicemail threatening to kill their son. Hamelin stated that he was enroute to his intended victim. Hamelin sent text messages stating anger and frustration with the U.S. Representative for carrying out his official duties. On June 2, 2023, Las Vegas Metropolitan Police Department officers and U.S. Capitol Police agents located Hamelin and arrested him. On March 11, 2024, Hamelin pleaded guilty to one count of influencing, impeding, or retaliating against a federal official by threatening a family member, and one count of transmitting a communication containing a threat to injure. United States District Judge Gloria M. Navarro presided over the sentencing hearing. United States Attorney Jason M. Frierson for the District of Nevada and Chief J. Thomas Manger, Chief of the U.S. Capitol Police made the announcement. The U.S. Capitol Police and the Las Vegas Metropolitan Police Department investigated the case. Assistant U.S. Attorney Jacob Operskalski prosecuted the case. ###


title: GPS Manufacturer Agrees to Pay $2.6M to Settle False Claims Act Allegations Relating to Improper Paycheck Protection Program Loan

component: Civil Division

body_text: Hemisphere GNSS (USA) Inc., a satellite global positioning system manufacturer in Arizona that was purchased by CNH Industrial in 2023, has agreed to pay $2.6 million to settle allegations that it violated the False Claims Act by knowingly providing false information to apply for and receive forgiveness of a Paycheck Protection Program (PPP) loan to which the company was not entitled. Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to millions of Americans suffering the economic effects caused by the pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other expenses. In 2021, Congress offered a second round of forgivable PPP loans through the Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications. In February 2021, Hemisphere applied for a second round PPP loan and certified that it was eligible to receive the loan. Among other certifications, Hemisphere represented that no “entity created in or organized under the laws of the People’s Republic of China” owned or held 20% or more of an economic interest in Hemisphere. The company also certified that it did not retain as a board member a person who is a resident of the People’s Republic of China. At the time of its application, however, both of these certifications were allegedly false. For this reason, Hemisphere was not eligible for the second round PPP loan it received. After receiving this PPP loan, Hemisphere sought and received forgiveness of the total loan amount. “PPP loans were an important but finite resource available to help eligible small businesses retain employees and keep their doors open,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When ineligible entities improperly sought PPP loans or forgiveness of those loans, they reduced the availability of this critical support for eligible businesses.” “Legitimate PPP loans saved small businesses across America,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “But not everyone used the program as intended. Our office will continue to hold accountable those business and individuals who misused the PPP program, as the settlement announced today reflects.” “The settlement in this matter demonstrates the excellent results achieved through the combined efforts of SBA and the Department of Justice to uncover and forcefully respond to PPP misconduct,” said General Counsel Therese Meers of the Small Business Administration (SBA). “The federal government is strongly committed to identifying and aggressively pursuing any instances of fraud or misconduct within the Paycheck Protection Program.” The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by GNGH2 Inc. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. GNGH2, Inc. v. Hemisphere GNSS (USA) Incorporated, 2:22-cv-00224 (D. Arizona). GNGH2 will receive $260,000 as its share of the settlement. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Arizona, with assistance from SBA’s Office of General Counsel and Office of the Inspector General. Trial Attorney John F. Schifalacqua of the Justice Department’s Civil Division and Assistant U.S. Attorney Anne E. Nelson for the District of Arizona handled the matter. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus . Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here . Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Wisconsin Man Sentenced For Sexually Victimizing A Minor

component: USAO - Michigan, Western

body_text: MARQUETTE, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Todd Stafford, 60, of Bailey’s Harbor, Wisconsin, was sentenced to 156 months in prison followed by five years of supervised release after being convicted of coercion and enticement of a minor and two counts of travel in interstate commerce with intent to engage in illicit sexual conduct. “Mr. Stafford preyed on minors and today he was held accountable for his predatory actions,” said U.S. Attorney Mark Totten . “Let this be a clear message to those who seek to exploit our children and think they can hide. Protecting our most vulnerable is, and will continue to be, a top priority for our office.” Stafford was convicted at a jury trial. The jury heard evidence that Stafford met the minor victim, who was under sixteen years of age, online. Stafford twice traveled from Wisconsin to Michigan hoping to have sex with the minor. Eventually the minor’s father found conversations and contacted law enforcement. The minor’s father and Iron Mountain Police Department took over communications with Stafford, posing as the minor and arranging to meet Stafford again. In late July 2023, Stafford again traveled to Michigan where law enforcement met and arrested him. “Today’s sentencing of Mr. Stafford is a direct result of the hard work of the men and women of the FBI Detroit Field Office’s Marquette Resident Agent, the Iron Mountain Police Department, and the U.S. Attorney’s Office”, said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan . “Any criminal act and/or its attempt, especially involving minors, will not be tolerated and the FBI will investigate and arrest anyone who engages in this illegal behavior.” This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney’s Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, tribal, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following website: www.projectsafechildhood.gov . Individuals with information or concerns about possible child exploitation should contact local law enforcement officials. This case was investigated by the FBI and the Iron Mountain Police Department. ###


title: Cedar Rapids Man to Federal Prison for Possessing Twelve Firearms as a Drug User

component: USAO - Iowa, Northern

body_text: A man caught with two firearms and whose social media and cell phone documented his unlawful possession of another ten firearms over a three-year period was sentenced on July 16, 2024, to more than five years in federal prison. Semaje Jeyvon Star, age 23, from Cedar Rapids, Iowa, received the prison term after a February 1, 2024 guilty plea to one count of possession of a firearm by an unlawful user of a controlled substance. Information from sentencing showed that in 2018, police officers apprehended Star after a foot chase. Star was armed with a loaded handgun and in possession of marijuana. The officers had seen Star engage in a hand-to-hand transaction. Then in May 2020, officers located Star driving despite his status as a barred driver. Officers found a loaded pistol in the car. Star’s fingerprint was on the firearm found in his car. Star tested positive for marijuana and methamphetamine. Star’s Facebook records contained multiple conversations related to using, purchasing, and selling marijuana. Photos and videos from Star’s phone, Snapchat, and Facebook profile showed him possessing at least ten additional firearms, including firearms with extended magazines, in 2018, 2019, and 2020. Star was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. Star was sentenced to 63 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. Star is being held in the United States Marshal’s custody until he can be transported to a federal prison. 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 prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-0092. Follow us on Twitter @USAO_NDIA.


title: Acupuncturist and Acupuncture Clinic Ordered to  Pay $2.3 Million to Resolve Civil False Claims Act Allegations

component: USAO - Texas, Western

body_text: AUSTIN, Texas – U.S. District Judge Robert Pitman has ordered an Austin acupuncturist, Dongxin Ma, and his clinic, Ma Acupuncture Center PC, to pay $2.3 million to the United States under the False Claims Act. The order enforces a mediated settlement resolving allegations that Dr. Ma and his clinic submitted inflated bills to the U.S. Department of Veterans Affairs (VA) for acupuncture services provided to veterans under the VA’s community care program. Specifically, the United States’ lawsuit alleged that Dr. Ma billed the VA for 60 minutes of one-on-one personal contact for each veteran he treated despite spending no more than 15 minutes with any patient. According to the government’s complaint, Dr. Ma billed as many as 61 hours of one-on-one contact with veterans in a single day. “Healthcare providers that treat our nation’s veterans must be held to the highest standards,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “This office is committed to holding accountable any provider that defrauds a VA health benefits program.” “This civil settlement is a testament to the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and preserving taxpayer funds,” said Special Agent in Charge Kris Raper with the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office for their efforts in this case.” The United States’ lawsuit is captioned United States v. Dongxin Ma, et al., Civil Action No. 1:22-cv-00145-RP (W.D. Tex.). The United States was represented by Assistant U.S. Attorneys Thomas Parnham and Liane Noble. The claims resolved by the settlement are allegations only and there has been no determination of liability. ###


title: Violet, Louisiana Man Pleads  Guilty to Firearms Offenses

component: Federal Bureau of Investigation (FBI)

body_text: NEW ORLEANS, LA - United States Attorney Duane A. Evans announced that MALI WILLIAMS (“WILLIAMS”) , age 26, of Violet, Louisiana, pled guilty on July 15, 2024 , before United States District Judge Jay C. Zainey to possessing a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i). According to court documents, on October 12, 2023, New Orleans Police Officers saw WILLIAMS selling marijuana in the Central Business District of New Orleans. While attempting to flee from police, WILLIAMS dropped his backpack. Upon searching the backpack, officers discovered marijuana and tapentadol tablets. When apprehended, WILLIAMS possessed a Taurus Model G3C, nine-millimeter semi-automatic pistol. WILLIAMS faces a minimum of five (5) years up to a maximum of life imprisonment, a fine of up to $250,000, up to five (5) years of supervised release, and a mandatory special assessment fee of $100.00. WILLIAMS is scheduled for sentencing on October 15, 2024. 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. U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The case is being prosecuted by Special Assistant U.S. Attorney James Ollinger of the Violent Crime Unit.


title: Hazleton Man Charged with Firearm Offenses

body_text: SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Renan Tineo, age 22, of Hazleton, New Jersey, was indicted by a federal grand jury for firearm offenses. According to United States Attorney Gerard M. Karam, the indictment charges Tineo with possessing a firearm while subject to a domestic violence protective order. The indictment further alleges that the firearm possessed by Tineo, a .38 caliber Charter Arms revolver, also had an obliterated serial number. The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilkes-Barre Police Department, and the Luzerne County District Attorney’s Office. Assistant United States Attorney James M. Buchanan is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.] A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. The maximum penalty under federal law for these offenses is 15 years’ imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant. Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. # # #


title: Quincy Man Arrested For Making Threats Against The President Of The United States

component: USAO - Florida, Northern

body_text: TALLAHASSEE, FLORIDA – Jason Patrick Alday, 39, of Quincy, Florida, has been arrested on a federal criminal complaint. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the charge after Alday made his initial appearance in federal court in Tallahassee. The criminal complaint alleges that Alday engaged in sending threatening communications, making threats against the President of the United States, and threats against federal officials. Alday was arrested by the United States Marshals Service Task Force, and the United States Secret Service on Monday. Alday was ordered detained pending trial. The case is being investigated by the United States Secret Service. The case is being prosecuted by Assistant United States Attorney Eric Welch. A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt at trial. The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: El Paso Man to Spend 15 Years in Federal Prison for Dealing Deadly Fentanyl

component: Drug Enforcement Administration (DEA)

body_text: EL PASO, Texas – An El Paso man was sentenced in federal court to 15 years in prison for distribution of fentanyl, causing death. According to court documents, Michael Joseph Cuccaro, 22, sold counterfeit M-30 oxycodone pills containing fentanyl to a purchaser on Dec. 11, 2022. The purchaser consumed the pills and died from fentanyl poisoning. A federal grand jury in El Paso indicted Cuccaro Sept. 6, 2023, in a two-count indictment charging him with conspiracy to possess a controlled substance with intent to distribute and distribution of a controlled substance causing death or serious bodily injury. Cuccaro was subsequently arrested on a bench warrant. He pleaded guilty to distribution of a controlled substance causing death on April 24, 2024. U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement. The Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Phillip Countryman prosecuted the case. ###


title: Kindred and Related Entities Agree to Pay $19.428 Million to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice Patients

body_text: NASHVILLE – Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, Georgia, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon. “Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.” “The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.” The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims. In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island, Beaumont, Texas, and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama, Mobile, Alabama, South Bend, Indiana, and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims. Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016 and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. “This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section, and our law enforcement partners.” “My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this Office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.” “Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.” “Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.” “The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.” The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68. The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice , Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al. , Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al ., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home , Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc ., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al. , Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorneys’ Offices for the Middle District of Tennessee, the Western District of Kentucky, the District of Kansas, the District of Rhode Island, the Southern District of Mississippi, the Southern District of Alabama and the Southern District of Ohio, with assistance from the HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management, Office of Inspector General, the Department of Veterans Affairs, Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorney William E. Olson in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant United States Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. # # # # #


title: Floral Company Pays $1.25 Million To Resolve False Claims Act Allegations Of Defrauding Unemployment Insurance Program During Covid-19 Pandemic

component: USAO - Maryland

body_text: Baltimore, Maryland – Potomac Floral Wholesale, Inc. and Tsur “Jacob” Reiss have agreed to pay the United States and State of Maryland $1,250,000.00 to resolve allegations that they caused the submission of false unemployment insurance (UI) claims at the beginning of the COVID-19 pandemic. The settlement agreement was announced by Erek L. Barron, U.S. Attorney for the District of Maryland; Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor – Office of Inspector General (DOL-OIG); and Maryland Attorney General Anthony Brown. “Attempting to unjustly profit from a global pandemic is absolutely wrong,” said United States Attorney Erek Barron. “Unemployment insurance is meant for employees who need it when they are laid off from their jobs. During the early stages of COVID-19, the Federal Pandemic Unemployment Compensation program was designed to supplement traditional unemployment insurance for employees laid off during an unprecedented global emergency. Employers should not use tax dollars to shirk their responsibility to pay employees for their work.” “The unemployment insurance (UI) program offered critical financial support to American workers who were unable to work due to the immense challenges created by the COVID-19 pandemic,” said Troy W. Springer, Special Agent in Charge of the National Capital Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG). “This civil settlement demonstrates the strong commitment, resolve, and partnership of the DOL-OIG and U.S. Attorney’s Office to hold accountable those who seek to unlawfully exploit the UI program at the expense of those who actually need it.” “All workers deserve to be paid fairly for their time and effort. The unemployment insurance program exists as a critical lifeline to keep individuals and families afloat when someone is laid off or out of work through no fault of their own,” said Attorney General Anthony Brown. “Exploiting the program to try to avoid paying employees their fair wages is unacceptable. My office is committed to standing up for workers and stopping abusive conduct wherever it is found. We thank our federal partners for their invaluable work and cooperation in bringing this matter to a successful resolution.” Potomac Floral is a wholesale floral company run by Owner and CEO Tsur “Jacob” Reiss. According to the settlement agreement, from March 1, 2020 to December 31, 2020, starting immediately after the COVID-19 pandemic forced the suspension or modification of American business activity, Potomac Floral and Reiss instructed a group of their employees to apply for UI benefits. Yet, they also instructed these same employees to continue working for Potomac Floral without pay. Because individuals collecting UI must be unemployed, not completing work for an employer, Potomac Floral’s and Mr. Reiss’s conduct caused the submission of false UI claims in violation of the False Claims Act. The civil settlement also resolves claims filed under the whistleblower provision of the False Claims Act by Travis Gabriel in United States & State of Maryland ex rel. Travis Gabriel v. Potomac Floral Wholesale, Inc. & Tsur “Jacob” Reiss, Civ. No. TDC-21-0207 (D. Md). The False Claims Act permits private parties to file suit on behalf of the United States for false claims and obtain a portion of the recovery. As part of the civil resolution, Mr. Gabriel will receive $243,750.00. The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Potomac Floral or Tsur Reiss, nor a concession by the United States that its claims are not well founded. U.S. Attorney Erek L. Barron praised the DOL-OIG for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Matt Haven who handled the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud . ###


title: Kindred and Related Entities Agree to Pay $19.428M to Settle Federal and State False Claims Act Lawsuits Alleging Ineligible Claims for Hospice Patients

body_text: Gentiva, successor to Kindred at Home, has agreed to pay $19.428 million to resolve allegations that Kindred at Home and related entities (Kindred) knowingly submitted false claims and knowingly retained overpayments for hospice services provided to patients who were ineligible to receive hospice benefits under various federal health care programs. Gentiva’s hospice operations, headquartered in Atlanta, include entities that previously operated Kindred at Home hospice locations under the names Avalon, Kindred, SouthernCare and SouthernCare New Beacon. “The hospice benefit under Medicare and other federal health care programs provides critical services to some of the most vulnerable patients,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that this important benefit is used to assist those who need it, and not as an opportunity to line the pockets of those who seek to abuse it.” The settlement resolves allegations made by the United States and the State of Tennessee in a consolidated complaint filed in 2021 against certain Kindred related entities alleging that, from 2010 until February 2020, the defendants knowingly submitted or caused to be submitted false claims for hospice services provided to Avalon hospice patients in Tennessee who were ineligible for the Medicare or Medicaid hospice benefit because they were not terminally ill. The settlement also resolves the complaint’s allegations that the defendants improperly concealed or avoided Avalon’s obligation to repay those hospice claims. In addition, the settlement resolves allegations that certain Kindred, SouthernCare and SouthernCare New Beacon hospice locations knowingly submitted, or caused to be submitted, false claims for hospice services provided to patients who were ineligible for hospice benefits under Medicare and other federal health care programs because the patients were not terminally ill. Those hospice locations were Kindred’s locations in Warwick, Rhode Island; Beaumont, Texas; and Independence, Missouri; SouthernCare New Beacon’s location in Demopolis, Alabama; and SouthernCare’s locations in Daphne, Alabama; Mobile, Alabama; South Bend, Indiana; and Youngstown, Ohio. The settlement also resolves allegations that those Kindred, SouthernCare and SouthernCare New Beacon locations knowingly and improperly concealed or avoided obligations to repay the foregoing hospice claims. Further, the settlement resolves allegations that SouthernCare New Beacon allegedly violated the Anti-Kickback Statute by willfully paying renumeration to a consulting physician, between Oct. 1, 2016, and Oct. 1, 2022, to induce hospice referrals of Medicare beneficiaries to its Gadsden, Alabama, location. The settlement of those allegations stems from a voluntary self-disclosure made by New Beacon Healthcare Group LLC doing business as SouthernCare New Beacon Hospice. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded health care programs. It is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients. “Hospice provides vital care and support for terminally ill patients and their families. Medicare’s and TennCare’s eligibility requirements ensure that federal and state health care money is properly used to support hospice programs,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We are committed to holding accountable health care companies and providers who prioritize profits over patient care by ignoring these requirements.” “This office remains committed to safeguarding public monies,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “I commend the work of all those in the department who have made this successful settlement possible and truly appreciate the strong working relationships that exist between the United States Attorneys’ Offices, the Civil Division’s Fraud Section and our law enforcement partners.” “My office remains determined to ensure that federal funding for essential health care, like the hospice care at issue in this investigation, goes to the patients who need it, rather than to health care companies who seek to exploit those patients for profit,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “Today’s result reflects a concerted effort by this office and U.S. Attorneys’ Offices around the country, working alongside the Fraud Section of the Justice Department’s Civil Division, and our law enforcement partners, to help to guarantee that Medicare funds are directed where they belong and that high-quality hospice care is available for patients and their families in the future.” “Hospice care is special end-of-life care intended to provide comfort for terminally ill patients. The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to increase profits,” said U.S. Attorney Todd Gee for the Southern District of Mississippi. “The continued work of the department and our law enforcement partners is critical to the integrity of these important programs. I appreciate the work of all involved in this significant case.” “Our office is committed to protecting federal healthcare programs like the Medicare hospice benefit from false claims” said U.S. Attorney Sean Costello for the Southern District of Alabama. “We will hold accountable any providers that abuse taxpayer dollars.” “The integrity of hospice care is critical to the millions of patients receiving these services,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We, along with our law enforcement partners, will continue to ensure that providers who focus on personal financial gain rather than providing medically necessary, high-quality hospice care will be held accountable.” The Medicaid program is funded jointly by the state and federal governments. As a result of the settlement announced today, the federal government will receive $18,956,151.32, the State of Tennessee will receive $448,800 and the State of Ohio will receive $23,618.68. The settlement includes the resolution of claims in nine lawsuits brought under the qui tam or whistleblower provisions of the False Claims Act by various current and former Kindred employees. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned: United States ex rel. Pence, et al. v. Curo Health Services Holdings, Inc., et al., Civil Action No. 3:13-00672 (M.D. Tenn.); United States,, et al. ex rel. Anderson et al. v. Curo Health Services, LLC d/b/a Avalon Hospice , Civil Action No. 3:20-cv-00168 (M.D. Tenn.); United States ex rel. Riar v. Kindred Healthcare, Inc., et al. , Civil Action No. 3:18-CV-52 (W.D. Ky.); United States ex rel. Didde, et al. v. Kindred Healthcare Inc. et al ., Civil Action No. 19-2321-JWB-JPO (D. Kan.); United States ex rel. Mut v. Gentiva Certified Healthcare Corp. D/B/A Kindred at Home , Civil Action No. 1:21-cv-00425-JJM-PAS (D.R.I.); United States ex rel. Harris v. SouthernCare, Inc ., Civil Action No. 3:18-cv-643-HTW-LGI (S.D. Miss.); United States,, et al. ex rel. Roy v. Curo Health Services, LLC, et al., Civil Action No. 3:18-cv-643-HTA-LRA (S.D. Miss.); U.S. ex rel. Petrey v. Curo HealthCare Services, LLC, et al., Civil Action No. 1:19-CV-00617 (S.D. Ala.), and United States ex rel. Medved, et al. v. SouthernCare, Inc. D/B/A SouthernCare, et al. , Civil Action No. 2:23-cv-3345 (S.D. Ohio). The share of the settlement to be received by the whistleblowers has not yet been determined. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Middle District of Tennessee, Western District of Kentucky, District of Kansas, District of Rhode Island, Southern District of Mississippi, Southern District of Alabama and Southern District of Ohio, with assistance from HHS-OIG, the Defense Criminal Investigative Service, the Office of Personnel Management Office of Inspector General, the Department of Veterans Affairs Office of Inspector General, the Office of the Tennessee Attorney General and the Office of the Ohio Attorney General. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Trial Attorney William E. Olson of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Wynn M. Shuford for the Middle District of Tennessee, Jessica R.C. Malloy and William F. Campbell for the Western District of Kentucky, Jon P. Fleenor for the District of Kansas, Kevin Love Hubbard for the District of Rhode Island, Deidre Lamppin Colson for the Southern District of Mississippi, Nina T. Herring for the Southern District of Alabama and W. Hunter West and Michael J. T. Downey for the Southern District of Ohio handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Felon Caught with Silenced Pistol Sentenced to 70 Months in Prison

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

body_text: ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a convicted felon who was caught in someone’s back yard with a silenced pistol to 70 months in prison. On Oct. 13, 2022, the St. Charles Police Department responded to a call about a man in the 200 block of Blanche Drive. A witness told police that the man was in the rear yard of a home and had been waving a firearm in a threatening manner. The officer discovered Christopher Leach in the gated back yard. When the officer drew his gun and identified himself as a police officer, Leach ran away, tossing the gun into a bush. The officer used a Taser on Leach, who initially refused to put his hands behind his back. The officer found the gun, a loaded .22-caliber semi-automatic pistol with a firearm silencer attached to the barrel. Leach is a felon, having been convicted of offenses including stealing, drug possession, unlawful possession of an illegal weapon and distribution of a controlled substance. He was on parole when he was arrested. Leach’s sentence will run consecutive to any sentence he receives for pending parole revocation matters in Phelps County Circuit Court. Leach, 28, of Rolla, Missouri, pleaded guilty in April in U.S. District Court in St. Louis to one count of being a felon in possession of a firearm. The St. Charles Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney J. Christian Goeke 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: Nigerian Man Pleads Guilty to Real Estate Phishing / Spoofing Scheme

body_text: A Nigerian man pleaded guilty today to conning prospective homeowners and others out of down payments using a “man-in-the-middle” email phishing and spoofing attack, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Kolade Akinwale Ojelade, a 34-year-old Nigerian national living abroad in Leicester, was indicted in February 2023. He was extradited from the U.K. to the U.S. in April 2024 and pleaded guilty Wednesday to wire fraud affecting a financial institution and aggravated identity theft. “Unfortunately, sophisticated phishing and spoofing attacks can ensnare even the most tech-savvy among us. They can be disastrous for companies and absolutely calamitous for individuals,” said U.S. Attorney Leigha Simonton. “We look forward to holding this defendant accountable for the financial devastation he has wrought. In the meantime, I urge the public to follow CFPB’s best practices for wiring down payments.” “Mr. Ojelade orchestrated the theft of funds from unsuspecting homeowners and real estate companies who believed they were legitimately wiring money to a trusted party,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI successfully worked with our foreign partners to ensure he is held accountable by the U.S. judicial system.” According to court documents, Mr. Ojelade sent phishing emails to real estate businesses, gained unauthorized access to many of their accounts, and monitored their email traffic to determine when large transactions were about to take place. He then intercepted wire payment instructions, changed the information, and resent the emails via spoofed email addresses that mimicked the original senders’ addresses. Unbeknownst to the victims – including prospective homeowners wiring money to real estate companies and real estate companies wiring money to title companies – the modified wiring instructions directed them to accounts controlled by Mr. Ojelade and his co-conspirators. Once the funds hit the accounts, Mr. Ojelade and his coconspirators withdrew the money or transferred it into other bank accounts. Mr. Ojelade now faces up to 32 years in federal prison. After serving his sentence, he will be subject to deportation. The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation, with substantial assistance from FBI International Operations at Mission U.K., United Kingdom authorities, and the U.S. Marshals Service. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Mr. Ojelade from the United Kingdom. Assistant U.S. Attorney Matthew Weybrecht is prosecuting the case. The Consumer Financial Protection Bureau advises prospective homeowners to confirm wiring instructions – including account numbers – in person or by phone, and instructs anyone who believes they may have fallen victim to a scam to call their banks as soon as possible to ask for a wire recall.


title: Chicago Man Sentenced to 72 Months in Prison

body_text: SOUTH BEND – Allory Smith, 42 years old, of Chicago, Illinois, was sentenced by United States District Court Judge Cristal C. Brisco after pleading guilty to being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Smith was sentenced to 72 months in prison followed by 2 years of supervised release. According to documents in the case, in January 2023, Smith sold a rifle, a handgun, and ammunition to a buyer in the Michigan City area. Smith referred to the rifle as a “real license to kill” because he believed it had previously been reported stolen. Smith has several prior felony convictions, any one of which prohibit him from possessing the firearms in this case. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the LaPorte County VICE Unit (LCVICE). The case was prosecuted by Assistant United States Attorney Katelan McKenzie Doyle. 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: Waterbury Teens Charged with Stealing 21 Guns from Salem Store; Gun Trafficking and Carjacking Offenses

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and James Ferguson, Special Agent in Charge, ATF Boston Field Division, today announced that a federal grand jury in New Haven has returned an indictment charging TYSSAN WOODS, also known as “Tigger,” 18, and EDUARDO CRUZ, 18, both of Waterbury, with offenses related to the theft of firearms from a licensed gun dealer in Salem, the trafficking of stolen firearms, and two armed carjackings. As alleged in court documents and statements made in court, on March 15, 2024, Woods, Cruz, and others stole 21 firearms from Statewide Pawn Shop, a federal firearms licensee in Salem. Cruz trafficked some of the firearms before he was arrested on March 18, 2024. After the burglary, Woods, using a firearm, and another individual committed two carjackings. Woods was arrested on March 28, 2024. To date, eight of the stolen firearms have been recovered by law enforcement. The indictment, which was returned on June 25, 2024, charges Woods and Cruz with theft of firearms from a licensee, an offense that carries a maximum term of imprisonment of 10 years; Cruz with two counts of firearms trafficking, an offense that carries a maximum term of imprisonment of 15 years on each count; Woods with two counts of carjacking, an offense that carries a maximum term of imprisonment of 15 years on each count; and Woods with using a firearm during and in relation to a crime of violence, an offense that carries a mandatory term of imprisonment of seven years and a maximum term of imprisonment of life. Woods and Cruz have been detained since their arrests. They each appeared yesterday in Hartford federal court and entered pleas of not guilty. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Connecticut State Police, and the Waterbury, Stamford, and Wolcott Police Departments. The case is being prosecuted by Assistant U.S. Attorney Sean Mahard through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit www.justice.gov/psn . U.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted, and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking of firearms.


title: Missouri Man Sentenced to 8 Years in Prison for Possessing Child Pornography

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Henry E. Autrey on Wednesday sentenced a Warren County, Missouri man who possessed child sexual abuse material on phones and a laptop to 96 months in prison. Judge Autrey also ordered Jacob D. Beauchamp, 46, to pay $51,000 in restitution to victims who appeared in the images and videos he collected. Beauchamp admitted possessing 146 images containing child sexual abuse material on his Apple iPhone, about 1,800 on his Samsung phone and numerous images that were running as a screensaver on his laptop. Beauchamp, of Wright City, pleaded guilty in April to one count of possession of child pornography. The Wright City Police Department and the St. Charles County Cyber Crime Task Force investigated the case. Assistant U.S. Attorney Jillian Anderson prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, 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 .


title: KC Sex Offender Pleads Guilty to Child Pornography

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., man who is a registered sex offender pleaded guilty in federal court today to sharing child pornography over the internet and to possessing more than 1,000 images and videos of child pornography. Dennis Bruce Bean II, 44, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of transporting child pornography across state lines and on count of possessing child pornography. Bean has a prior felony conviction for criminal sexual conduct and has been required to register as a sex offender. According to court documents, the National Center for Missing and Exploited Children received three CyberTipline reports associated with Bean. In one of those reports, Google reported on Jan. 31, 2024, that approximately 1,442 files of child pornography had been uploaded to Bean’s Google Photos account during the previous two months. On April 5, 2024, law enforcement officers executed a search warrant at Bean’s residence. Bean was arrested after he was found hiding in the back yard. Officers seized two cell phones and a one terabyte thumb drive. Investigators found at least 100 images and videos of child sexual abuse or child erotica on the phones. The thumb drive had more than 1,000 images and videos of child sexual abuse and child erotica. Under federal statutes, Bean is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled on Dec. 3, 2024. This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by the Missouri State Highway Patrol and the FBI. Project Safe Childhood This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."


title: Arapahoe County Man Sentenced To Four Years In Prison In Connection With Robbery Of Mail Carrier

component: USAO - Colorado

body_text: DENVER – The United States Attorney for the District of Colorado announces that Dravell Emon Ross, 28, of Arapahoe County, was sentenced to four years in prison after being pleading guilty to one count of conspiracy to commit robbery and one count of mail theft. According to the facts within the parties’ plea agreement, in September of 2023, Ross and two other individuals committed a strong-arm robbery of a postal carrier while she was on duty in her mail truck taking her lunch break. Ross and the other individuals attempted to obtain a universal mailbox key to access community mailboxes. The men were unable to steal the universal key, but did steal various pieces of mail, packages, and a postal scanner. The postal carrier suffered minor injuries as a result of the robbery. The other suspects in this case have not yet been charged. “Mail theft is an all-too-common occurrence in our communities,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our office is focused on keeping our communities safe and prosecuting these crimes to the fullest extent of the law.” “The United States Postal Inspection Service will not tolerate violence against any U.S. Postal Service employees or theft of the U.S. Mail,” said Inspector in Charge Bryan Musgrove of the Denver Division of the United States Postal Inspection Service. “Postal Inspectors will relentlessly pursue these offenders and ensure they are held responsible for their crimes.” The defendant was sentenced on July 12, 2024, by Judge Charlotte N. Sweeney. The case was investigated by the United States Postal Inspection Service. The prosecution was handled by Assistant United States Attorney Tim Neff.


title: Putnam County Man Sentenced to Prison for Role in Methamphetamine Trafficking Organization

component: USAO - West Virginia, Southern

body_text: HUNTINGTON, W.Va. – Christopher Anthony O'Dell, 39, of Hurricane, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for distribution of quantities of methamphetamine and fentanyl. O’Dell admitted to his role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia. According to court documents and statements made in court, O’Dell participated in the DTO from approximately November 2022 through November 2023. O’Dell admitted that he sold approximately 1.1 grams of fentanyl and 3.5 grams of methamphetamine for $200 to a confidential informant on August 18, 2023. O’Dell further admitted that the transaction took place at his Hurricane residence, and that he arranged it beforehand with the confidential informant by text message. The DTO participants used a St. Albans residence to store and distribute fentanyl and methamphetamine. O’Dell conducted distributions and transported various individuals from the St. Albans residence to a Ninth Avenue residence in Huntington where they received additional amounts of fentanyl and methamphetamine before O’Dell transported them back to the St. Albans residence. On August 28, 2023, a law enforcement officer conducted a traffic stop of a vehicle driven by O’Dell in St. Albans. The officer seized approximately 51 grams of fentanyl and two muzzleloading pistols from the vehicle during the traffic stop. O’Dell admitted that co-defendant Jashawn William Lawson was a passenger in his vehicle during the traffic stop and that he was aware that Lawson was in possession of fentanyl that Lawson was transporting to St. Albans to distribute. O’Dell further admitted to possessing the seized firearms. O'Dell and Lawson are among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia. Lawson, also known as “Nitty,” 23, of Detroit, Michigan, pleaded guilty on April 16, 2024, to aiding and abetting possession with the intent to distribute 5 grams or more of methamphetamine and awaits sentencing. O’Dell and Lawson are among 21 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department. United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor prosecuted the case. The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180. ###


component: USAO - Alabama, Southern


title: Woman who fraudulently used state grant monies sentenced to probation and home confinement

component: USAO - Washington, Western

body_text: Tacoma – The former Executive Director of the Washington Coalition of Crime Victim Advocates (WCCVA) was sentenced today in U.S. District Court in Tacoma to five years of probation and six months of home confinement for two counts of wire fraud. Cody Benson, formerly of Olympia, Washington was convicted in January following a six-day jury trial. Benson was indicted in July 2021 for her scheme to falsely claim Washington State public grant funding for work that was never done. At the sentencing hearing U.S. District Judge Benjamin H. Settle noted that the crime was serious in that the defendant “was drawing a salary while doing little work for an extended time” and that “taxpayers did not get the benefits” of the grant funds meant for training crime-victim advocates. “This defendant was supposed to do critical work – training advocates for crime victims. Instead, she falsified documents to make it appear work was being done, and moved halfway around the world to Italy,” said U.S. Attorney Gorman. “It is remarkable that she believed such conduct would not be scrutinized and prosecuted.” According to records filed in the case, Benson was the head of an Olympia-based non-profit organization that was tasked with training advocates to assist crime victims. In 2013, the legislature appropriated money for this work with a grant administered through the Washington State Attorney General’s Office. Between 2015 and 2017, Benson submitted fraudulent invoices for reimbursement under the grant. She submitted bills for training events that were never held or supplies that were never purchased. In early 2016, she moved away to Italy, yet in the ensuing years, she repeatedly told representatives of the Attorney General’s Office that she was in Washington State doing various outreach and other work. Those representations were false. By the end of the scheme, WCCVA had only two employees: Benson and her son. The Washington State Attorney General’s Office became concerned about WCCVA’s performance under the grant in early 2018 and began investigating. Benson returned just over $50,000 to the state, but other funds were not recovered. The grant payments ceased, and WCCVA is defunct. In all, prosecutors argued that WCCVA obtained almost $180,000 from Benson’s false invoices, and that Benson herself obtained approximately $257,000 in net salary and other benefits such as health insurance, retirement plan contributions, and health reimbursement account contributions during the fraudulent scheme. The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Philip Kopczynski and Yunah Chung.