title: Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison Sentence

component: Criminal Division

body_text: A California woman who fled to Montenegro to avoid serving a lengthy prison sentence has been returned to the United States after spending approximately one year as a fugitive. Tamara Dadyan, 43, of Encino, was extradited by Montenegro and arrived in Los Angeles Monday evening. She is expected to appear this afternoon in the U.S. District Court in Los Angeles. According to court documents, Dadyan was a member of a Los Angeles-based fraud ring who engaged in a scheme to fraudulently obtain more than $20 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. Dadyan and her co-conspirators used dozens of fake, stolen, or synthetic identities – including names belonging to elderly or deceased people and foreign exchange students who briefly visited the United States years ago and never returned – to submit fraudulent applications for approximately 150 PPP and EIDL loans. In support of the fraudulent loan applications, Dadyan and her co-conspirators also submitted false and fictitious documents to lenders and the Small Business Administration (SBA), including fake identity documents, tax documents, and payroll records. Dadyan and her co-conspirators then used the fraudulently obtained funds as down payments on three luxury homes in California. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, designer handbags, cryptocurrency, securities, and a Harley-Davidson motorcycle. In June 2021, Dadyan pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, one count of conspiracy to commit money laundering, and one count of aggravated identity theft. She was sentenced in December 2021 to 10 years and 10 months in prison. In January 2022, Dadyan fled the United States. U.S. authorities determined Dadyan had fled to Montenegro where she joined Richard Ayvazyan and Marietta Terabelian, two other participants in the scheme and conspiracy who also fled after their convictions. Ayvazyan and Terabelian, who were respectively sentenced to 17 years and six years in prison, were extradited to the United States from Montenegro in November 2022. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office; Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA-OIG), Western Region; and Special Agent in Charge Jay N. Johnson of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Western Region, made the announcement. The Government of Montenegro, including the Ministry of Justice, provided significant assistance in the extradition of Dadyan to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Dadyan. The FBI Los Angeles Field Office, IRS-CI, SBA-OIG, and FHFA-OIG investigated the case. The U.S. Marshals Service transported Dadyan from Montenegro to the United States. Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brian Faerstein and Scott Paetty for the Central District of California are prosecuting the case. Assistant U.S. Attorney Dan Boyle for the Central District of California is handling forfeiture. Trial Attorney Goran Krnaich and International Affairs Specialist Marina Shimarova of the Justice Department’s Office of International Affairs handled the extraditions with assistance from Assistant U.S. Attorney John Lulejian for the Central District of California. The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted more than 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud . In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: United States Enters Into Consent Decrees With Principals Of CISNE NY Construction, Inc. For Violating Lead Paint Safety Rules

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States entered into Consent Decrees settling a civil lawsuit against the principals of CISNE NY CONSTRUCTION, INC. (“CISNE”) — EDISON RUILOVA and JOSE PACCHA — for violations of the Toxic Substances Control Act (“TSCA”) and EPA’s Renovation, Repair, and Painting Rule (“RRP Rule”). Defendants violated provisions of TSCA and the RRP Rule that protect public health by reducing the risk of lead poisoning during renovations in residential buildings that may contain lead paint. U.S. Attorney Damian Williams said: “CISNE NY Construction, Inc. put the public health at risk by failing to abide by lead-safe work practices during renovations of residential buildings. These consent decrees will help ensure that CISNE NY’s principals abide by safety standards moving forward and send a message that companies and the individuals that run them cannot prioritize profits over complying with health and safety regulations.” EPA Regional Administrator Lisa F. Garcia said: “Protecting children from the harmful effects of lead exposure is a top priority for EPA. In New York, where most housing predates the 1978 federal ban on lead in residential paint, lead exposure is a critical public health concern, particularly for children. Exposure to chips and dust from lead-based paint can cause irreversible brain damage and other debilitating effects, making it essential for renovators to be certified and trained in lead-safe work practices and to implement these practices when disturbing lead-based paint in homes. EPA remains committed to enforcing these vital federal requirements and increasing accountability and awareness to safeguard families and workers from lead exposure.” The Consent Decrees, which are subject to public comment and approval by the District Court, would resolve a lawsuit filed in Manhattan federal court in 2022, which alleged that CISNE, its principals EDISON RUILOVA and JOSE PACCHA, and several related entities, violated TSCA and the RRP Rule in the course of renovating several Manhattan apartment buildings. The lawsuit also alleged that the same defendants violated TSCA and the RRP Rule by failing to provide EPA with records necessary to enable EPA to monitor the defendants’ compliance. In the Consent Decrees entered today, JOSE PACCHA and EDISON RUILOVA admitted, acknowledged, and accepted responsibility for the fact that they were the principals of CISNE who were responsible for ensuring the firm’s compliance with the RRP Rule in 2017 and 2018 and that CISNE “violated the RRP Rule and TSCA” as a result of the following conduct during two Manhattan renovation projects: Failing to obtain an RRP firm certification prior to conducting renovation work; Failing to have a certified renovator direct the renovations and to ensure that all other persons performing the renovations received training on lead-safe work practices; Failing to post warning signs defining the work areas and cautioning occupants and other persons not involved in the renovation activities to keep out; Failing to provide an EPA pamphlet on lead hazards, The Lead-Safe Certified Guide to Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools , to the owner of the units being renovated; Failing to contain the renovation work areas to minimize the risk of lead exposure; Failing to clean the work areas after the renovations were completed to ensure that no dust, debris, or residue remained in those areas; and Failing to make available to EPA the records necessary to demonstrate compliance with the RRP Rule. * * * Pursuant to the Consent Decrees, EDISON RUILOVA and JOSE PACCHA will each pay $25,000 in civil penalties, an amount based on each individual’s documented inability to pay the full civil penalty for which he otherwise would be liable. Further, the Consent Decrees require each individual to receive training before conducting future RRP Rule-covered work and require them to operate any future renovation firm that they own, operate, or control in compliance with safe work practices and other RRP Rule requirements. Failure to comply with the Consent Decrees will result in significant additional penalties. To provide public notice and afford members of the public the opportunity to comment on the Consent Decrees, the Consent Decrees will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval. Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work in this matter. This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Zack Bannon is in charge of the case. Paccha_Consent_Decree.pdf Ruilova_Consent_Decree.pdf


title: Justice Department Secures $9 Million from Park National Bank to Address Lending Discrimination Allegations

component: Civil Rights Division

body_text: The Justice Department announced today a $9 million agreement to resolve allegations that Park National Bank (Park National), headquartered in Newark, Ohio, engaged in a pattern or practice of lending discrimination by “redlining” in the Columbus metropolitan area. The agreement is part of the Justice Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021. “For far too long the doors to home ownership have been shut for Black families and many other people of color because of unlawful redlining by banks and other financial institutions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks fail to provide equal access to lending services in neighborhoods of color, they engage in modern day redlining and exacerbate the racial wealth gap in our country. The Justice Department will continue to fight to fulfill the promise of our nation’s fair lending laws while tearing down the discriminatory barriers that deny Black people and other people of color access to economic opportunity and homeownership.” “Let today’s settlement send a very clear message to banks: we will not tolerate discriminatory lending practices and we will hold you accountable,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “We are committed to enforcing fair lending laws, which require financial institutions to provide equal opportunity for every American to obtain home loans and credit. We take very seriously our duty and honor to uphold those laws.” Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court in the U.S. District Court for the Southern District of Ohio today alleges that, from at least 2015 to 2021, Park National failed to provide mortgage lending services by redlining majority-Black and Hispanic neighborhoods in the Columbus area. Specifically, the complaint alleges that all of Park National’s branches and mortgage lenders in the Columbus area were concentrated in majority-white neighborhoods, and that the bank failed to take any meaningful measures to compensate for its lack of physical presence in majority-Black and Hispanic communities. Under the proposed consent order, which was also filed today in federal court and is subject to court approval, Park National has agreed, among other things, to do the following: Invest at least $7.75 million in a loan subsidy fund to increase access to credit for home mortgage, improvement, and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the Columbus area; $750,000 in outreach, advertising, consumer financial education, and credit counseling initiatives; and $500,000 in developing community partnerships to provide services to residents of majority-Black and Hispanic areas that expand access to residential mortgage credit; Open one new branch and one new mortgage loan production office in majority Black-and Hispanic neighborhoods in the Columbus area; ensure that a minimum of four mortgage lenders, at least one of whom is Spanish-speaking, are assigned to serve these neighborhoods; and maintain the full-time position of Director of Community Home Lending and Development, who is responsible for overseeing lending in majority-Black and Hispanic areas; and Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services in majority-Black and Hispanic census tracts in the Columbus area. Park National worked cooperatively with the department to remedy the redlining concerns that were identified and has agreed to settle this matter without contested litigation. The Justice Department’s Combating Redlining Initiative is a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the Initiative was launched, the department has announced six redlining cases and settlements and secured $84 million in relief for communities of color that have been victims of lending discrimination across the country. This includes a $31 million settlement with City National Bank , the largest in Justice Department history. More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing . Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online .


title: El Departamento de Justicia obtiene $9 millones de Park National Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticio

body_text: El Departamento de Justicia hoy anunció un acuerdo de $9 millones para resolver alegaciones de que Park National Bank (Park National), con sede en Newark, Ohio, incurrió en un patrón o una práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (“redlining”, en inglés) en la zona metropolitana de Columbus. El acuerdo forma parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia que el Fiscal General Merrick B. Garland lanzó en octubre de 2021. “Por demasiado tiempo se han cerrado las puertas de ser propietarios de vivienda a las familias afroestadounidenses y a muchas otras personas de color debido a las prácticas ilegales de exclusión financiera de los bancos y otras instituciones financieras”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Cuando los bancos no proporcionan un acceso equitativo a los servicios crediticios en los barrios de color, incurren en una práctica moderna de exclusión financiera y agravan la disparidad racial de riqueza en nuestro país. El Departamento de Justicia seguirá luchando para cumplir la promesa de las leyes de préstamos justos de nuestra nación, al tiempo que derriba las barreras discriminatorias que niegan a los afroestadounidenses y a otras personas de color el acceso a las oportunidades económicas y a ser propietarios de vivienda”. “Hagamos que el acuerdo de hoy envíe un mensaje muy claro a los bancos: no toleraremos prácticas discriminatorias en el ámbito crediticio y les haremos rendir cuentas”, declaró Kenneth L. Parker, el Fiscal Federal para el Distrito Sur de Ohio. “Estamos comprometidos a hacer cumplir las leyes de préstamos justos, que exigen que las instituciones financieras ofrezcan igualdad de oportunidades a todos los estadounidenses para obtener préstamos y crédito hipotecarios. Nos tomamos muy en serio nuestro deber y honor de hacer cumplir esas leyes”. La exclusión financiera es una práctica ilegal en la que los prestamistas evitan proporcionar servicios de crédito a las personas que viven en comunidades de color por motivos de la raza, color de piel u origen nacional de los residentes en esas comunidades. En la demanda entablada hoy ante el Tribunal Federal de Distrito para el Distrito Sur de Ohio se alega que, al menos desde 2015 hasta 2021, Park National no prestó servicios de crédito hipotecario al reducir la oferta en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus. En concreto, la demanda alega que todas las sucursales y prestamistas hipotecarios de Park National en la zona de Columbus se concentraron en barrios de mayoría blanca, y que el banco no tomó ninguna medida significativa para compensar su falta de presencia física en las comunidades de mayoría afroestadounidense e hispana. En virtud de la orden por consentimiento propuesta, que también fue entablada hoy ante el tribunal federal y está sujeta a aprobación judicial, Park National ha acordado, entre otras cosas, hacer lo siguiente: Invertir al menos $7.75 millones en un fondo de subvención de préstamos para aumentar el acceso al crédito para hipotecas, mejoras y refinanciación de viviendas, así como préstamos y líneas de crédito sobre el valor neto de la vivienda, en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; $750,000 en iniciativas de divulgación, publicidad, y educación financiera de los consumidores y asesoramiento crediticio; y $500,000 en el desarrollo de asociaciones comunitarias para prestar servicios a los residentes de zonas de mayoría afroestadounidense e hispana que amplíen el acceso al crédito hipotecario residencial; Abrir una nueva sucursal y una nueva oficina de generación de préstamos hipotecarios en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; garantizar que un mínimo de cuatro prestamistas hipotecarios, al menos uno de los cuales sea hispanohablante, estén asignados para atender a estos barrios; y mantener el puesto a tiempo completo de Director de Préstamos y Desarrollo de Viviendas Comunitarias, responsable de supervisar los préstamos en las zonas de mayoría afroestadounidense e hispana; y Realizar una Evaluación de las Necesidades de Crédito de la Comunidad, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las zonas censales de mayoría afroestadounidense e hispana de la zona de Columbus. Park National trabajó en colaboración con el Departamento para remediar las inquietudes de exclusión financiera que se habían identificado y ha acordado resolver este asunto sin litigio contencioso. La Iniciativa para Combatir la Exclusión Financiera es un esfuerzo coordinado para hacer cumplir las leyes para abordar esta forma persistente de discriminación contra las comunidades de color. Desde al lanzamiento de la Iniciativa, el Departamento ha anunciado seis casos y acuerdos de exclusión financiera y ha conseguido $84 millones en ayuda para las comunidades de color que han sido víctimas de discriminación en el ámbito crediticio en todo el país. Esto incluye un acuerdo de $31 millones con City National Bank , el más grande en la historia del Departamento de Justicia. Se puede encontrar información adicional sobre los esfuerzos del Departamento de hacer cumplir las leyes de préstamos justos en https://www.justice.gov/crt-espanol/hce . Las personas pueden denunciar la discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea .


title: New York Gang Member Sentenced To 25 Years In Prison For 2010 East Harlem Murder

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMAL ADAMSON, a/k/a “J-Rock,” was sentenced today to 25 years in prison for the June 20, 2010, murder of David Moore in East Harlem and other racketeering offenses. ADAMSON previously pled guilty before United States District Judge Gregory H. Woods, who imposed the sentence. U.S. Attorney Damian Williams said: “Jamal Adamson callously took the life of another during a gang-related shooting. As today’s sentence shows, those who commit acts of gang violence in New York City are subject to spending serious time in federal prison.” As alleged in the Indictment and other documents filed in federal court and based on statements made in public court proceedings: The Cash Money Boys (“CMB”) gang was a criminal enterprise involved in committing numerous acts of violence, including murder, attempted murder, robberies, and assaults, in and around Manhattan. Members and associates of CMB engaged in violence to retaliate against rival gangs, to promote the standing and reputation of CMB, and to protect the gang’s narcotics sales. From at least in or about 2006 to in or about 2017, members and associates of CMB regularly distributed crack cocaine and other drugs in the vicinity of Lexington Avenue between East 122 nd Street and East 123 rd Street. CMB controlled drug sales within this area by preventing non-members, outsiders, and rival drug dealers from selling drugs in the area controlled by the gang. This included gang members shooting at, assaulting, and/or robbing other drug dealers and members of rival gangs who entered CMB’s territory. On June 20, 2010, after members of CMB and a rival gang got into a physical altercation, ADAMSON shot and killed David Moore, 23, near the corner of East 122 nd Street and Lexington Avenue. * * * In addition to his prison sentence, ADAMSON, 28, of New York, New York, was sentenced to three years of supervised release. Mr. Williams praised the outstanding work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the New York City Police Department. The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Maurene Comey, Dominic A. Gentile, Christopher J. Clore, and Peter J. Davis are in charge of the prosecution.


title: Hot Springs Man Sentenced to More Than 7 Years in Federal Prison for Firearms Possession

component: USAO - Arkansas, Western

body_text: HOT SPRINGS – A Hot Springs man was sentenced yesterday to 92 months in prison followed by three years of supervised release on one count of being a Felon in Possession of a Firearm. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs. According to court documents, on February 10, 2020, Investigators with the Hot Springs Police Department, Special Investigations Division, conducted a controlled purchase of a firearm from Larry Wayne Natt, Jr ., age 36. The firearm Natt possessed and transferred was manufactured outside the State of Arkansas and therefore traveled in interstate commerce. Prior to Natt possessing the firearm, Natt was convicted of at least one felony offense and prohibited from possessing firearms. Furthermore, Natt was aware of his status as a convicted felon at the time of possession. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Hot Springs Police Department investigated the case. Assistant U.S. Attorney David Harris prosecuted the case. This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.


title: Justice Department Files Complaint Alleging Public Health Endangerment Caused by Denka Performance Elastomer’s Carcinogenic Air Pollution

component: Energy and Natural Resources Division

body_text: Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Eastern District of Louisiana, the U.S. Department of Justice filed a complaint under Section 303 of the Clean Air Act against Denka Performance Elastomer LLC (Denka) to compel Denka to significantly reduce hazardous chloroprene emissions from its neoprene manufacturing facility in LaPlace, Louisiana. The complaint asserts that the LaPlace plant’s operations present an imminent and substantial endangerment to public health and welfare due to the cancer risks from Denka’s chloroprene emissions. “We allege that Denka’s emissions have led to unsafe concentrations of carcinogenic chloroprene near homes and schools in St. John the Baptist Parish, Louisiana,” said Associate Attorney General Vanita Gupta. “The Justice Department’s environmental justice efforts require ensuring that every community, no matter its demographics, can breathe clean air and drink clean water. Our suit aims to stop Denka’s dangerous pollution.” “When I visited Saint John the Baptist Parish during my first Journey to Justice tour, I pledged to the community that EPA would take strong action to protect the health and safety of families from harmful chloroprene emissions from the Denka facility,” said EPA Administrator Michael S. Regan. “This complaint filed against Denka delivers on that promise. The company has not moved far enough or fast enough to reduce emissions or ensure the safety of the surrounding community. This action is not the first step we have taken to reduce risks to the people living in Saint John the Baptist Parish, and it will not be the last.” “The Justice Department and EPA have worked closely together to bring decisive action to address Denka’s harmful air pollution,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s complaint is part of our ongoing effort to advance environmental justice in overburdened communities through the enforcement of laws.” Denka’s facility manufactures neoprene, a flexible, synthetic rubber used to produce common goods like wetsuits, beverage cozies, laptop sleeves, orthopedic braces, and automotive belts and hoses. Chloroprene is a liquid raw material used to produce neoprene and is emitted into the air from various areas at the facility. According to the complaint, filed today in the U.S. District Court for the Eastern District of Louisiana, air monitoring – conducted by both the EPA and Denka over the past several years – consistently shows long-term chloroprene concentrations in the air near Denka’s LaPlace facility that are as high as 14 times the levels recommended for a 70-year lifetime of exposure. This complaint seeks to compel Denka to eliminate the public health endangerment caused by its emissions by greatly reducing the levels of chloroprene to which this community is being exposed. The complaint also names DuPont Specialty Products USA LLC – the owner of the land beneath Denka’s facility and Denka’s landlord. DuPont is a necessary party to ensure there are no delays in any actions that Denka is ordered to take to reduce its chloroprene emissions as a result of the rights DuPont holds under its lease agreement with Denka. In 2010, EPA published its peer-reviewed assessment of chloroprene that concluded the chemical is “likely to be carcinogenic to humans.” According to guidance that looks at impacts of certain cancer-causing chemicals to children, EPA also acknowledged that children accumulate excess lifetime cancer risk from breathing chloroprene faster than adults. Approximately 20% of the total population living within two-and-a-half miles of Denka are children under the age of 18, and about 800 to 1,000 children are under the age of five. Children are particularly vulnerable to carcinogens like chloroprene because they change DNA and harm cells, meaning they are “mutagenic.” Denka’s chloroprene’s emissions reach more than 300 young children who attend the 5th Ward Elementary School, located within approximately 450 feet of Denka’s facility. Approximately 1,200 children who attend East St. John High School, located roughly a mile-and-a-half north of Denka, are also exposed to the facility’s chloroprene emissions. Justice Department Attorneys Steven Shermer, Davis Forsythe, and Hannah Frazier of the Environment and Natural Resources Division’s Environmental Enforcement Section are handling this matter.


title: D.C. Woman Sentenced to 32 Months in Prison For Stealing Government Benefit Funds

component: USAO - District of Columbia

body_text: WASHINGTON – Rosemary Ogbenna, 46, of the District of Columbia, was sentenced today to 32 months in prison for felony charges relating to her scheme to steal more than $400,000 in government benefit funds, provided by the Social Security Administration (SSA) and the U.S. Department of Veteran’s Affairs (VA), intended for the care and benefit of government beneficiaries. Ogbenna pleaded guilty on June 28, 2022, in U.S. District Court for the District of Columbia, to charges of mail fraud and false statements. In addition to the prison term, U.S. District Court Judge Trevor N. McFadden ordered 36 months of supervised release and ordered Ogbenna to pay restitution in the amount of $523,696. He also ordered forfeiture in the same amount. Her sentences on the two counts were ordered to run concurrently. The sentence was announced today by United States Attorney Matthew M. Graves, Special Agent in Charge Michael McGill, of the Social Security Administration (SSA) - Office of Inspector General (OIG), Philadelphia Field Division, Special Agent in Charge Kim Lampkins, of the U.S. Department of Veteran’s Affairs (VA) - Office of Inspector General (OIG) for the Mid-Atlantic Field Office, and Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero. According to the facts admitted in her guilty plea, Ogbenna perpetrated a scheme in which she obtained and used SSA and VA benefit funds – which were intended for the care of elderly, mentally ill, disabled, and veteran beneficiaries – for her own personal use and benefit. According to Court documents, Ogbenna stole more than $400,000 in government benefits funds intended for the benefit of others who had been tenants of her rooming house business. The Social Security Administration administers benefit programs under federal law, including the Old-Age, Survivors, and Disability Insurance (“OASDI”) program, which provides monthly benefit funds to qualified retired and disabled workers and their dependents, and to survivors of insured workers. Eligibility and benefit amounts under this program are determined by a worker’s contributions to Social Security. Under another program, qualifying individuals receive monthly benefit funds under the Supplemental Security Income for the Aged, Blind, and Disabled (“SSI”) and related programs. The U.S. Department of Veterans Affairs serves the needs of American veterans, including providing monthly government benefit funds through its Veterans Benefits Administration. As Ogbenna admitted in Court documents, she carried out a scheme between at least March 19, 2009 and February 23, 2020, in which she obtained and maintained control over SSA benefit funds for some tenants of her rooming house business by becoming the Representative Payee of their SSA benefit funds. Although a Representative Payee has a duty to use SSA benefits solely on behalf of the beneficiary, Ogbenna used a portion of those funds for her own personal use and benefit. Ogbenna also gained control over some tenants’ monthly VA benefits and used a portion of those VA benefit funds for her personal use and benefit without authority. In addition, Ogbenna made false statements to agents investigating the fraud scheme, claiming she had paid back a beneficiary for using their intended funds when she had not. This case was investigated by the Social Security Administration (SSA) - Office of Inspector General (OIG), the U.S. Department of Veteran’s Affairs (VA) - Office of Inspector General (OIG) and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant U.S. Attorney Diane Lucas of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia, prosecuted the case, supported by Financial Analyst Bryan Snitselaar and former Paralegal Specialist Chad Byron, and Paralegal Specialists Mariela Andrade, Daniel Haines, and Lisa Abbe.


title: Bookkeeper Pleads Guilty to Embezzling Money from Alaska Native Village

component: USAO - Alaska

body_text: ANCHORAGE – A Minto woman entered a guilty plea for embezzling, stealing, and obtaining by fraud money that was owned and under the care, custody, and control of an Indian tribal government. According to court documents, Melanie Gail Titus, 52, of Minto, was employed as the bookkeeper for the Minto Village Council, which is the federally recognized native governing body for the Native Village of Minto. The Minto Village Council receives federal funding from various federal agencies. The defendant embezzled a total of $55,753.99 between January 2015 and June 2019 from the Minto Village Council. As its bookkeeper, she developed several schemes during her employ including issuing herself multiple payroll checks for the same pay periods, tendering duplicative deposits, and issuing duplicative reimbursements for work expenses. The defendant is scheduled to be sentenced on June 1, 2023, for the federal charge of theft concerning programs receiving federal funds, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Lane S. Tucker of the District of Alaska made the announcement. The Federal Bureau of Investigation, with assistance from the Alaska State Troopers, investigated the case. Assistant U.S. Attorney George Tran is prosecuting the case.


title: Indictment Charges Alleged Darknet Marketplace  Fentanyl Dealer

body_text: WASHINGTON – An indictment, unsealed today, charges a Coraopolis, Pennsylvania man with running a counterfeit drug conspiracy that sold fentanyl and methamphetamine disguised as Oxycontin, Xanax and Adderall on a Darknet Marketplace. Jacob Blair, 25, is also charged in a parallel indictment in the Western District of Pennsylvania with possession of fentanyl and methamphetamine related to a February 24, 2022, search warrant. Blair was arrested by FBI and Drug Enforcement Administration (DEA) agents on February 24, 2023, in Aliquippa, Pennsylvania. The indictments were announced by United States Attorney Matthew M. Graves, of the U.S. Attorney’s Office for the District of Columbia and Acting United States Attorney Troy Rivetti, of the U.S. Attorney’s Office for the Western District of Pennsylvania. In the District of Columbia, Blair is charged with conspiracy to distribute and possess with intent to distribute fentanyl, methamphetamine, and metonitazene along with money laundering. According to the indictment, since at least May 2022, Blair and his co-conspirators ran a Darknet narcotics trafficking business. Blair and his network operated under the profile name YourVendorsSupplier (“YVS”). Blair’s YVS Darknet marketplace profile page lists over 459 successful drug sales in that time period. YVS was advertised on one darknet market as “a syndicate of professionals that specialize in making the best products the markets have to offer. We focus on quality, consistency, stealth, and speed. Nothing but the best. . . now vending on 5 markets, time will show that we mean business, and we’re here to stay.” YVS listed a variety of drugs for sale on their darknet market vendor account, to include several varieties of counterfeit oxycodone, Adderall and Xanax which, in reality, were fentanyl and methamphetamine. The counterfeit oxycodone pills Blair sold contained fentanyl and metonitazene; the counterfeit Adderall pills contained methamphetamine. Blair only accepted cryptocurrency in exchange for controlled substance. Once an order came in, Blair took payment in the form of Bitcoin or Monero (cryptocurrencies) on the marketplaces. After the payment was confirmed, Blair and his network would pack the controlled substances in vacuum-sealed packaging, packaging materials, and padded shipping envelopes to disguise the substance, and would drop the packages in various United States Postal Service drop boxes in West Virginia and Pennsylvania for shipment throughout the United States. Blair is also charged with money laundering. According to the indictment, between August of 2022 and at least February 1, 2023, Blair knowingly conducted cryptocurrency transactions, consisting of drug trafficking proceeds, through various cryptocurrency wallets and cryptocurrency exchange businesses in order to conceal that the transactions were from drug trafficking. Law enforcement executed a series of search warrants on February 24, 2023, at residences associated with Blair and a storage unit owned by Blair. They seized over 10,000 suspected fentanyl pills, plastic tubs of raw powder, a pill press, and 11 firearms including an AK-47 and AR-15. A separate indictment was filed against Blair in the Western District of Pennsylvania. According to that three-count indictment, Blair attempted to possess over 100 grams of a mixture and substance containing a detectable amount of a fentanyl analogue; possessed with intent to distribute over 40 grams of a mixture and substance containing a detectable amount of fentanyl and 50 grams of a mixture and substance containing methamphetamine; and possessed with intent to distribute over 400 grams of a mixture and substance containing a detectable amount of fentanyl. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty. The conspiracy charge carries a statutory maximum sentence of life in prison. The money laundering charge carries a statutory maximum of 10 years in prison. The charges also carry potential financial penalties, and the indictment contains a notice of forfeiture for all illegal gains. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. This case is being investigated by the Pittsburgh and Washington, D.C. offices of the FBI, the DEA, the U.S. Postal Inspection Service, and Homeland Security Investigations. Valuable assistance was provided by the Pittsburgh Bureau of Police and the Moon Township Police Department. The District of Columbia case is being prosecuted by AUSA Kevin Rosenberg, of the Violence Reduction and Trafficking Offenses Section. The Western District of Pennsylvania indictment is being prosecuted by DeMarr Moulton. 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: Justice Department secures agreement with Park National Bank to resolve lending discrimination claims

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – The Justice Department announced today an agreement to resolve allegations that Park National Bank (Park National), headquartered in Newark, Ohio, engaged in a pattern or practice of lending discrimination by “redlining” in the Columbus metropolitan area. This resolution is part of the Justice Department’s nationwide Combating Redlining Initiative . “For far too long the doors to home ownership have been shut for Black families and many other people of color because of unlawful redlining by banks and other financial institutions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks fail to provide equal access to lending services in neighborhoods of color, they engage in modern day redlining and exacerbate the racial wealth gap in our country. The Justice Department will continue to fight to fulfill the promise of our nation’s fair lending laws while tearing down the discriminatory barriers that deny Black people and other people of color access to economic opportunity and homeownership.” “Let today’s settlement send a very clear message to banks: we will not tolerate discriminatory lending practices and we will hold you accountable,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “We are committed to enforcing fair lending laws, which require financial institutions to provide equal opportunity for every American to obtain home loans and credit. We take very seriously our duty and honor to uphold those laws.” “Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court today alleges that, from at least 2015 to 2021, Park National failed to provide mortgage lending services in majority-Black and Hispanic neighborhoods in the Columbus area. Specifically, the department alleges that all of Park National’s branches and mortgage lenders in the Columbus area were concentrated in majority-white neighborhoods, and that the bank did not take effective measures to compensate for its lack of physical presence in majority-Black and Hispanic communities. Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the Southern District of Ohio along with the complaint, Park National has agreed, among other things, to do the following: Invest at least $7.75 million in a loan subsidy fund to increase access to credit for home mortgage, improvement, and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the Columbus area; $750,000 in outreach, advertising, consumer financial education, and credit counseling initiatives; and $500,000 in developing community partnerships to provide services to residents of majority-Black and Hispanic areas that expand access to residential mortgage credit; Open one new branch and one new mortgage loan production office in majority Black-and Hispanic neighborhoods in the Columbus area; ensure that a minimum of four mortgage lenders, at least one of whom is Spanish-speaking, are assigned to serve these neighborhoods; and maintain the full-time position of Director of Community Home Lending and Development, who is responsible for overseeing lending in majority-Black and Hispanic areas; and Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services in majority-Black and Hispanic census tracts in the Columbus area. Park National worked cooperatively with the department to remedy the redlining concerns that were identified and has agreed to settle this matter without contested litigation. The Justice Department’s Combating Redlining Initiative is a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched in October 2021, the Department has announced six redlining cases and settlements and secured $84 million in relief for communities of color that have been victims of lending discrimination across the country. More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing . Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. The public can also report potential civil rights violations through the U.S. Attorney’s Office main webpage or at /media/1227446/dl?inline . Deputy Civil Chief Brandi Stewart and Assistant United States Attorney Michael J.T. Downey represented the U.S. Attorney’s Office in this matter. # # #


title: District Man Sentenced to Seven Years in Prison  For Child Exploitation

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Jason Tipton, 36, of Washington, D.C., was sentenced today to seven years in prison for distribution of child pornography. Tipton pleaded guilty on October 11, 2022. According to court documents, after identifying Tipton, law enforcement arrested him in April 2020. During execution of a search warrant at his residence, various digital devices were seized. The partial extraction of his cellphone revealed a series of hyperlinks in a “Notes” section on the phone. A subsequent search of the defendant’s iCloud account revealed these same hyperlinks, which contained over 200 videos depicting the sexual abuse of very young children. Several of these videos depict victims known to law enforcement, who have been identified by the National Center for Missing and Exploited Children as victims depicted in series of child sexual abuse material that is widely traded. The defendant admitted that he had several KIK accounts, all of which he deleted, that he used to trade images depicting the sexual abuse of young children. He admitted to sending pictures of a child relative to strangers that he met over the internet, who had expressed a sexual attraction to children. He admitted that he took pictures of a child sleeping and that he sent those pictures to other individuals he met online. In addition to the prison term, U.S. District Court Judge Trevor N. McFadden ordered $21,000 in restitution to the victim, 10 years of supervised release, and ordered Tipton to register as a sex offender for 25 years. This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. In announcing the sentence, U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department commended the work of the FBI agents and MPD detectives. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office Victim/Witness Advocate Yvonne Bryant, and Assistant U.S. Attorney Amy Larson, who investigated and prosecuted the case. This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .


title: Serial Con Artist Sentenced To 51 Months In Connection With Embezzlement Scheme

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that TRACII SHOW HUTSONA was sentenced today to 51 months in prison for her embezzlement of more than one million dollars as part of a confidence scheme. The sentence was imposed by U.S. District Judge Jesse M. Furman. U.S. Attorney Damian Williams said: “Not long after serving a lengthy sentence for a previous federal conviction, Tracii Show Hutsona betrayed her employer’s trust by misusing her employer’s financial information to fund her own luxury lifestyle for years. Her desire to live the high life at the expense of her victim has placed her back where she began — facing another substantial federal sentence.” According to public court filings and statements made in Court: Between October 2015 and November 2019, SHOW HUTSONA engaged in a confidence scheme to embezzle over a million dollars from a victim (the “Victim”). The Victim hired SHOW HUTSONA to serve as a personal assistant at the Victim’s home and trusted SHOW HUTSONA with access to the Victim’s financial information. Just a few months after she was hired, and while SHOW HUTSONA was on supervised release in connection with a previous federal fraud conviction in California, SHOW HUTSONA began using that access to finance her own luxury lifestyle. In February 2016, SHOW HUTSONA opened a credit card account in the Victim’s name without the Victim’s knowledge or authorization. In September 2018, after the Victim learned about significant expenditures from the Victim’s financial accounts, the Victim confronted SHOW HUTSONA, who confessed that she had used the Victim’s financial accounts for her own personal use and repeatedly apologized to the Victim. Shortly thereafter, SHOW HUTSONA and the Victim signed an agreement, which stated, among other things, that SHOW HUTSONA had obtained an “additional user card” (the “User Card”) and that SHOW HUTSONA “had been using [the Victim’s] account since July 2016.” The agreement further stated that SHOW HUTSONA needed to repay $307,498.02 to the Victim. Having regained the Victim’s trust, in the days and months after executing the agreement with the Victim, SHOW HUTSONA continued to use the Victim’s financial accounts without permission, including through use of the User Card, which SHOW HUTSONA had represented to the Victim had been destroyed. In September 2019, the Victim terminated her relationship with SHOW HUTSONA after discovering additional unauthorized charges made by SHOW HUTSONA. The Victim reported fraudulent expenditures on the Victim’s financial accounts to her bank. During the bank’s subsequent investigation, SHOW HUTSONA faxed the bank a fraudulent “Power of Attorney” document (the “Power of Attorney”), which appeared to be signed by the Victim and notarized. The Power of Attorney stated that SHOW HUTSONA would serve as the Victim’s “attorney-in-fact” and have control over the Victim’s “Banking and other financial institution transactions.” In fact, the Victim did not provide SHOW HUTSONA with any such power of attorney, the Victim did not sign the document, and the notary did not notarize it. During the scheme, SHOW HUTSONA, without authorization, added herself as an additional account holder to at least two checking accounts and a savings account maintained by the Victim and obtained multiple credit cards in her own name but drawn on accounts of the Victim (collectively, the “Fraud Accounts”). Over the course of approximately four years, SHOW HUTSONA used the Fraud Accounts to steal over $1 million from the Victim. SHOW HUTSONA used the proceeds of her fraud scheme to make payments to SHOW HUTSONA’s concierge business and for personal expenses, such as mobile phones, restaurants and nightclubs, luxury hotels, and jewelry. To cover the purchases, SHOW HUTSONA transferred hundreds of thousands of dollars into the Fraud Accounts from a checking account of the Victim and two 529 college savings accounts maintained by the Victim on behalf of the Victim’s children. * * * In addition to her prison term, SHOW HUTSONA, 54, of Scottsdale, Arizona, was sentenced to three years of supervised release. She was further ordered to forfeit $1,148,759.28 and to pay restitution in the amount of $1,148,759.28. Mr. Williams praised the outstanding investigative work of the United States Secret Service and the New York City Police Department. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Timothy V. Capozzi is in charge of the prosecution.


title: Seven Defendants Sentenced For Defrauding Federal Program That Provided Technology Funding For Rockland County Schools

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today the sentencing of all seven defendants who previously pled guilty to defrauding the federal “E-Rate” program, designed to provide information technology to underprivileged schools, in connection with E-Rate funds provided to private religious schools in Rockland County, New York. PERETZ KLEIN, BEN KLEIN, MOSHE SCHWARTZ, SIMON GOLDBRENER, SHOLEM STEINBERG, ARON MELBER, and SUSAN KLEIN had each pled guilty in White Plains federal court to one count of conspiring against the United States and were sentenced in proceedings held between June 2022 and today. PERETZ KLEIN was sentenced to 48 months in prison; BEN KLEIN was sentenced to 27 months in prison; MOSHE SCHWARTZ was sentenced to 27 months in prison; SIMON GOLBRENER was sentenced to 24 months in prison; SHOLEM STEINBERG was sentenced to 12 months and one day in prison; AARON MELBER was sentenced to nine months in prison; and SUSAN KLEIN was sentenced to time served. U.S. District Judge Kenneth M. Karas imposed all sentences. U.S. Attorney Damian Williams said: “The seven defendants who have now pled guilty in this case sought to steal from our most vulnerable population: economically disadvantaged children. The defendants created elaborate schemes with complete disregard for the fact that the money they selfishly stole should have gone towards providing children with much-needed technology to further their education and brighten their future. Each defendant now faces serious penalties for their callous crime.” According to the allegations made in the Indictment and the Informations to which the defendants pled guilty, as well as the defendants’ admissions in court: The E-Rate program distributes funds to schools and libraries mostly serving economically disadvantaged children so that those institutions can afford needed telecommunication services, internet access, and related equipment. Over 30,000 applications from schools and libraries seeking funds to serve economically disadvantaged children were received each year during the relevant time period, and every year, requests for E-Rate funds have exceeded funds available. In order to obtain those funds, educational institutions certify that they are purchasing equipment and services from a private vendor. If approved, the program defrays the cost by up to 90%. The educational institution is supposed to enter into an open bidding process in order to select a vendor, and the educational institution and vendor then submit a series of certifications that they comply with a number of requirements of the E-Rate program. A school applying for E-Rate funds may employ a consultant, but that consultant must be independent of the vendors competing to sell E-Rate funded equipment and services. The schools at issue in this case never received millions of dollars’ worth of these items and services for which the defendants billed the E-Rate program. In other cases, the schools and the defendants requested hundreds of thousands of dollars of sophisticated technology that served no real purpose for the student population. For example, from 2009 through 2015, one day care center that served toddlers from the ages of two through four requested over $700,000 – nearly $500,000 of which was ultimately funded – for equipment and services – including video conferencing and distance learning, a “media master system,” sophisticated telecommunications systems supporting at least 23 lines, and high-speed internet – from companies controlled by certain defendants. In still other instances, the schools received equipment and services that fulfilled the functions for which the schools had requested E-Rate funds (such as providing the school with internet access), but the schools and the defendants materially overbilled the E-Rate program for the items provided in order to enrich themselves at the expense of the underprivileged children the program was designed to serve. The defendants also perverted the fair and open bidding process required by the E‑Rate program. Defendants who held themselves out as independent consultants working for the schools in truth worked for and were paid by other defendants who controlled vendor companies. These defendants presented the schools with forms to sign or certify, awarding E-Rate funded contracts to companies owned by several defendants. As a result of false and misleading filings, the defendants received millions of dollars in E-Rate funds for equipment and services that they did not, in fact, provide and which the schools did not use, and the defendants purporting to act as consultants accepted payments totaling hundreds of thousands of dollars from the vendors, despite falsely presenting themselves as independent of the vendors. In return for their participation in the scheme to defraud the E‑Rate program, certain schools and school officials received a variety of improper benefits from certain defendants, including a percentage of the funds fraudulently obtained from E-Rate for equipment and services that were not, in fact, provided to the schools; free items paid for with E-Rate funds but not authorized by the program, such as cellphones for school employees’ personal use and alarm systems and security equipment (which the E-Rate program does not authorize) installed at the schools; and free services for which the E-Rate program authorizes partial reimbursement (such as internet access) but for which the schools did not – contrary to their statements in filings – make any payment at all. PERETZ KLEIN, SUSAN KLEIN, BEN KLEIN, and SHOLEM STEINBERG held themselves out as vendors to schools participating in the E‑Rate program. Corporations controlled by these defendants requested over $35 million in E‑Rate funds and received over $14 million in E‑Rate funds from in or about 2010 to in or about 2016. Each of these defendants has now admitted that the companies they controlled did not, in fact, provide much of the equipment for which they billed the federal government. SIMON GOLDBRENER and MOSHE SCHWARTZ held themselves out as consultants who worked for educational institutions supposedly helping schools to participate in the E-Rate program by, among other things, holding a fair and open bidding process to select cost-effective vendors. GOLDBRENER and SCHWARTZ have now admitted that they were, in fact, paid hundreds of thousands of dollars by the vendors to complete and file false E-Rate documents that circumvented the bidding process and resulted in the payment of millions of dollars to the vendors. ARON MELBER was an official at a private religious school in Rockland County, New York, that participated in the E-Rate program with some of the defendants. MELBER has now admitted that he filed false certifications with the E-Rate program, falsely claiming to have obtained authorized E‑Rate funded equipment and services from vendors selected through a fair and open bidding process. Each defendant pled guilty to one count of a conspiracy to commit wire fraud. * * * PERETZ KLEIN, 68, of Spring Valley, New York, was sentenced on June 8, 2022, to 48 months in prison followed by 24 months of supervised release and was ordered to forfeit $1,144,288.37 and to pay restitution of the same amount. BEN KLEIN, 43, of Monsey, New York, was sentenced on October 19, 2022, to 27 months in prison followed by 24 months of supervised release and was ordered to forfeit $412,586.37 and to pay restitution of the same amount. MOSHE SCHWARTZ, 50, of Monsey, New York, was sentenced on June 9, 2022, to 27 months in prison followed by 24 months of supervised release and was ordered to forfeit $275,160.00 and to pay restitution of the same amount. SIMON GOLDBRENER, 59, of Monsey, New York, was sentenced on November 7, 2022, to 24 months in prison followed by 24 months of supervised release and was ordered to forfeit $479,357.18 and to pay restitution of the same amount. SHOLEM STEINBERG, 43, of Monsey, New York, was sentenced on November 7, 2022, to 12 months and one day in prison followed by 24 months of supervised release and was ordered to forfeit $191,423.50 and to pay restitution of the same amount. ARON MELBER, 47, of Monsey, New York, was sentenced on February 28, 2023, to nine months in prison followed by 24 months of supervised release and was ordered to forfeit $127,654.55 and to pay restitution of the same amount. SUSAN KLEIN, 62, of Spring Valley, New York, was sentenced on June 8, 2022, to time served followed by 12 months of supervised release and was ordered to forfeit $1,144,288.37 and to pay restitution of the same amount. Mr. Williams thanked the Federal Bureau of Investigation, the Federal Communications Commission - Office of the Inspector General, and the Rockland County District Attorney’s Office for their outstanding work on the investigation. This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys Michael D. Maimin, Hagan Scotten, and Vladislav Vainberg are in charge of the prosecution.


title: Readout of the Justice Department’s Servicemembers and Veterans Initiative Meeting

body_text: The Justice Department’s Servicemembers and Veterans Initiative convened a virtual listening session today with representatives from organizations serving veterans. The listening session was part of the Civil Rights Division’s celebration of Black History Month. The discussion focused on issues faced by Black veterans, particularly in the transition from military to civilian life, and the programs and resources available to help them. The meeting participants also discussed the civil legal needs of veterans with regard to access to veteran benefits, housing, homelessness and child custody. Assistant Attorney General for Civil Rights Kristen Clarke welcomed the participants and described the Division’s role in protecting servicemembers and veterans from discrimination and unfair treatment. Other Justice Department attendees included representatives from the Office for Access to Justice, Office of Justice Programs, Justice Management Division and Executive Office of U.S. Attorneys. Representatives of organizations serving veterans also participated in the discussion. They include, among others, the American Legion, the Military Officers Association of America, the National Association of Black Military Women, the Connecticut Veterans Legal Center and several law school veteran legal services clinics. The Servicemember and Veterans Initiative, housed in the Justice Department’s Civil Rights Division, works to ensure that the rights of the brave men and women of our Nation’s armed forces, and the veterans who have served in the past, are safeguarded from discrimination and unfair treatment. To learn more about the Justice Department’s Servicemember and Veterans Initiative, please visit Servicemembers and Veterans Initiative (justice.gov) . To learn more about the Justice Department’s Office for Access to Justice, please visit Office for Access to Justice .


title: Deputy Attorney General Lisa Monaco And Secretary Deb Haaland Meet With Not Invisible Act Commission

component: Office of the Deputy Attorney General

body_text: This week, as part of the continued work by the Department of Justice and the Department of the Interior to implement the Not Invisible Act and combat the crisis of Missing and Murdered Indigenous People (MMIP), Deputy Attorney General Lisa Monaco and Secretary Deb Haaland hosted the first in-person plenary session of the Not Invisible Act Commission at the U.S. Department of the Interior in Washington, D.C. The two-day meeting follows a series of online sessions since the establishment of the Commission last year. The Not Invisible Act , which was authored by then-Rep. Haaland and passed into law in October 2020, established the Commission as a cross jurisdictional advisory committee composed of both federal and non-federal members including law enforcement, Tribal leaders, federal partners, service providers, family members of missing and murdered individuals, and survivors. Deputy Attorney General Monaco and Secretary Deb Haaland announced the members of the Commission last year as part of a live event to recognize National MMIP Awareness Day on May 5. Deputy Attorney General Monaco reported that after hearing from Tribal representatives and subject-matter experts during consultations, the Department of Justice was successful in its efforts to secure more Indian country law enforcement resources to address the crisis of missing or murdered Indigenous People in fiscal year 2023. The Deputy Attorney General also stressed the Department’s commitment to doing everything in its power to offer support and partnership to the Commission as it develops and finalizes its recommendations. “The Justice Department is steadfast in our pledge to work with Tribal governments in preventing and responding to the violence that has disproportionately harmed Tribal communities. And we are committed to listening and being responsive to what our partners have to say,” said Deputy Attorney General Lisa Monaco . “We are eager to receive the recommendations of this group of experts.” “This work requires each of us to face our own trauma, to relive unimaginable pain, and visualize a future in which our loved ones are safe and our communities have closure. We're here for our children, grandchildren and relatives we have yet to meet,” said Secretary Deb Haaland. “This work is urgently needed and requires all of us working collaboratively. I am so grateful to the Commission for the work they are doing and the lasting impact they will have.” The Commission is developing recommendations through the work of six subcommittees focused on improving intergovernmental coordination and establishing best practices for state, Tribal and federal law enforcement to bolster resources for survivors and victim’s families, and combatting the epidemic of missing persons, murder and trafficking of American Indian and Alaska Native peoples, as specified under the law. As part of the Commission’s final report to Attorney General Merrick B. Garland, Secretary Deb Haaland and Congress, the subcommittees selected specific locations to hold field hearings this year to hear directly from the public in some of the communities most affected by the MMIP crisis: April: Tulsa, Oklahoma Anchorage, Alaska May: Flagstaff, Arizona June: Minneapolis, Minnesota Northern California Albuquerque, New Mexico July: Billings, Montana * A national, virtual field hearing will be held later in Summer 2023 with details to follow. Hearings will include both panel discussions and a public comment period. Specific topics of the hearings as well as logistical details and information will be made available to the public as the date of each hearing approaches. Trauma-informed mental health professionals will be available at each location. Department of Interior Deputy Attorney General Monaco, Secretary Haaland, members of the Not Invisible Act Commission and staff


title: Drug Trafficking Organization Sentenced to More Than 44 Years Combined in Federal Prison

body_text: HOT SPRINGS – A Hot Springs drug trafficking organization was sentenced today to federal prison for crimes related to the Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs. According to court documents, in 2020, agents with the Drug Enforcement Administration (DEA) began investigating a drug trafficking organization operating within the Western District of Arkansas, Hot Springs Division. During the course of their investigation, investigators identified Jose Luis Aguilar as the leader of this group. Jose Luis Aguilar regularly supplied narcotics to multiple dealers in the Hot Springs area between July 29, 2020, through at least September 25, 2020. Those members of the drug trafficking organization indicted federally have been sentenced as follows: Jose Luis Aguilar: age 61, Houston, Texas – one count of Conspiracy to Distribute Methamphetamine and one count of Aiding and Abetting in the Possession with the Intent to Distribute 500 Grams or More of a Mixture or Substance Containing Methamphetamine – 235 months imprisonment and 5-year term of supervised release. Eric Alexi Aguilar: age 25, Houston, Texas – one count of Conspiracy to Distribute Methamphetamine and one count of Aiding and Abetting in the Possession with the Intent to Distribute 500 Grams or More of a Mixture or Substance Containing Methamphetamine – 120 months imprisonment and 5-year term of supervised release. James Franklin Wells, Jr: age 60, Hot Springs, Arkansas – one count of Possession with Intent to Distribute More Than 50 Grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine – 180 months imprisonment and 4-year term of supervised release. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Drug Enforcement Administration, Homeland Security Investigations Little Rock, the Hot Springs Police Department, the 18 th East Judicial District Drug Task Force and the Garland County Prosecutors Office investigated the case. Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.


title: Tulsan Sentenced to Life in Prison for Sexually Abusing a 7-Year-Old Child

component: USAO - Oklahoma, Northern

body_text: A Tulsan who sexually abused a young child for approximately one year was sentenced Monday in federal court, announced U.S. Attorney Clint Johnson. U.S. District Judge Jack Zouhary sentenced Robert William Perry II, 32, to life in federal prison. In May, Perry was found guilty at trial for aggravated sexual abuse of a minor in Indian Country and for abusive sexual contact of a minor in Indian Country. “Robert Perry’s crimes are despicable. The defendant repeatedly abused a 7-year-old girl for whom the defendant was responsible,” said U.S. Attorney Clint Johnson. “This week, the Court made it clear that Perry’s predatory crimes and blame shifting warranted a lifetime in federal prison.” During the hearing, the judge called Perry’s actions intentional and manipulative. He reflected on the long-term trauma the child would have to live with then noted that protecting children was one of society’s highest duties. Perry sexually abused the minor from May 6, 2017, to May 15, 2018,. Prosecutors contended that Perry would coerce the young child into sex acts then “reward” her with candy, other items, and the opportunity to play video games in what the defendant termed as a “man cave,” a closet where Perry regularly played video games and watched pornography. Most of the abuse occurred in the closet while the child was in the defendant's care. The child eventually told a friend at school about the abuse. Another student overheard the discussion and reported it to her teacher. The teacher had a conversation with the victim, who then disclosed the abuse and wrote about it. The teacher reported the crimes to the Oklahoma Department of Human Services. In a forensic interview, the young child was initially hesitant to speak about the abuse but indicated that Perry made her keep secrets. She eventually drew a picture of the abuse when she was examined by a Sexual Assault Nurse Examiner. She also testified about the abuse at an earlier state trial and at the federal trial in May 2022. Perry was previously convicted in Tulsa County District Court in 2020, but the conviction was later dismissed because the state lacked jurisdiction to prosecute the case following the Supreme Court’s decision in McGirt v Oklahoma . Perry is a citizen of the Muscogee Nation, and the crimes occurred within the tribe’s reservation. Only the federal government or tribes have jurisdiction to prosecute cases that occur in Indian Country that involve Native American defendants. The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorneys Alex M. Scott and Valeria G. Luster prosecuted the case. *Note: The defendant, Robert Perry II, now identifies as she/her.


title: Bemidji Man Pleads Guilty to Possession with Intent to Distribute Methamphetamine

component: USAO - Minnesota

body_text: ST. PAUL, Minn. – A Bemidji man has pleaded guilty to possession with intent to distribute methamphetamine, announced United States Attorney Andrew M. Luger. According to the defendant’s guilty plea and court documents, on May 2, 2022, law enforcement observed Levi Adams Westbrook, 30, meet with a suspected drug trafficker in the Minneapolis-St. Paul metro area. As Westbrook was traveling back toward northern Minnesota, officers stopped the vehicle in which Westbrook was a passenger. After Westbrook exited the vehicle, officers saw a plastic bag with approximately one pound of methamphetamine on the front passenger floorboard where Westbrook was sitting. Officers also seized a .22 caliber “pen” gun from the passenger compartment. The “pen” gun discharged as the police were securing the gun into evidence. Westbrook pleaded guilty on February 24, 2023, in U.S. District Court before Judge Wilhelmina M. Wright to one count of possession with intent to distribute methamphetamine. A sentencing hearing has not yet been scheduled. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southeast Minnesota Violent Crime Enforcement Team, and the Paul Bunyan Drug Task Force. Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.


title: Robbinsdale Felon Sentenced to 120 Months in Federal Prison for Illegal Possession of a Firearm

body_text: ST. PAUL, Minn. – A Robbinsdale man has been sentenced to 120 months in prison for illegal possession of a firearm, to be served consecutively to a prior sentence of 70 months for illegal possession of a firearm, followed by three years of supervised release, announced United States Attorney Andrew M. Luger. According to the defendant’s guilty plea and court documents, on December 15, 2021, Travon Lavelle Blackman, 26, was sentenced to 70 months in prison, by U.S. District Judge Wilhelmina M. Wright, for a felon in possession conviction. Blackman failed to surrender himself to begin his sentence, and a federal warrant for his arrest was issued by the Court. According to court documents, on April 5, 2022, investigators executed a search warrant at a Robbinsdale apartment associated with Blackman and arrested him on the federal arrest warrant. During the search of the apartment, investigators discovered a Glock, model 21 Gen 4, .45-caliber pistol, with an attached high-capacity magazine, loaded with 18 rounds, on the floor of the bedroom closet. The firearm had an attached auto-sear or “switch,” enabling the firearm to fire as a fully automatic weapon, and the slide lock appeared to be glued into place. The firearm had been reported stolen out of Eden Prairie in May 2019. The defendant’s fingerprints were found on the firearm. Because Blackman has prior felony convictions, he is prohibited from possessing a firearm or ammunition at any time. On August 29, 2022, Blackman pleaded guilty to one count of possessing a firearm as a felon. Blackman was sentenced February 24, 2023, before U.S. District Judge Wilhelmina M. Wright. This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, and the Robbinsdale Police Department. Assistant U.S. Attorney Benjamin Bejar prosecuted the case.


title: Former National Guard member who made antisemitic & violent statements online sentenced to nearly 6 years in prison for making, selling ‘ghost guns’

body_text: COLUMBUS, Ohio – A former Ohio National Guard member was sentenced in federal court today to 71 months in prison and six years of supervised release for making and selling “ghost guns,” untraceable homemade weapons made in whole or in part with a 3D printer. Court documents detail that Thomas Develin, 25, of Columbus, also made antisemitic and violent statements online while employed to provide security services at local synagogues and Jewish schools. Develin admitted in his October 2022 plea agreement that he created ghost guns to sell for profit. He also made and possessed homemade conversion devices to convert semi-automatic AR-15 rifles and Glock-type pistols into fully automatic machine guns. Develin admitted that he made and sold firearms that he knew were illegal. Develin advertised online that he possessed and was selling 3D-printed sears, which are devices designed to convert semiautomatic AR-type rifles into fully automatic rifles. Devices that are intended to convert semiautomatic firearms into fully automatic firearms are considered “machineguns” under federal law. Other messages on Develin’s phone stated that he had manufactured a two-handed firearm with an overall length under 26 inches, which is illegal. On March 31, the day Develin was arrested, agents discovered in his vehicle: night vision goggles, ballistic plates, a ballistic helmet, first aid equipment and a large quantity of ammunition including several loaded magazines. Agents discovered more than 25 firearms in Develin’s residence and vehicle while executing search warrants in March and April 2022. They also discovered two IED manuals. Develin admitted in his plea agreement that in late March 2022, he knew law enforcement may be coming for him, so he went to the property surrounding the cabin of a person he knew to hide and burn illegal firearms parts. In text messages with another person, Develin also discussed hiding and destroying incriminating evidence. Develin admitted he took these acts with the intent to obstruct the investigation. Develin was also sentenced today in the Franklin County Court of Common Pleas to six years in state prison for various crimes, including making terroristic threats. His state sentence will run concurrent to his federal term of incarceration. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. The law enforcement agencies were assisted by the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Peter K. Glenn-Applegate and Jessica W. Knight are representing the United States in this case. # # #


title: El Departamento de Justicia obtiene $9 millones de Park National Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticio

body_text: El Departamento de Justicia hoy anunció un acuerdo de $9 millones para resolver alegaciones de que Park National Bank (Park National), con sede en Newark, Ohio, incurrió en un patrón o una práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (“redlining”, en inglés) en la zona metropolitana de Columbus. El acuerdo forma parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia que el Fiscal General Merrick B. Garland lanzó en octubre de 2021. “Por demasiado tiempo se han cerrado las puertas de ser propietarios de vivienda a las familias afroestadounidenses y a muchas otras personas de color debido a las prácticas ilegales de exclusión financiera de los bancos y otras instituciones financieras”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Cuando los bancos no proporcionan un acceso equitativo a los servicios crediticios en los barrios de color, incurren en una práctica moderna de exclusión financiera y agravan la disparidad racial de riqueza en nuestro país. El Departamento de Justicia seguirá luchando para cumplir la promesa de las leyes de préstamos justos de nuestra nación, al tiempo que derriba las barreras discriminatorias que niegan a los afroestadounidenses y a otras personas de color el acceso a las oportunidades económicas y a ser propietarios de vivienda”. “Hagamos que el acuerdo de hoy envíe un mensaje muy claro a los bancos: no toleraremos prácticas discriminatorias en el ámbito crediticio y les haremos rendir cuentas”, declaró Kenneth L. Parker, el Fiscal Federal para el Distrito Sur de Ohio. “Estamos comprometidos a hacer cumplir las leyes de préstamos justos, que exigen que las instituciones financieras ofrezcan igualdad de oportunidades a todos los estadounidenses para obtener préstamos y crédito hipotecarios. Nos tomamos muy en serio nuestro deber y honor de hacer cumplir esas leyes”. La exclusión financiera es una práctica ilegal en la que los prestamistas evitan proporcionar servicios de crédito a las personas que viven en comunidades de color por motivos de la raza, color de piel u origen nacional de los residentes en esas comunidades. En la demanda entablada hoy ante el Tribunal Federal de Distrito para el Distrito Sur de Ohio se alega que, al menos desde 2015 hasta 2021, Park National no prestó servicios de crédito hipotecario al reducir la oferta en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus. En concreto, la demanda alega que todas las sucursales y prestamistas hipotecarios de Park National en la zona de Columbus se concentraron en barrios de mayoría blanca, y que el banco no tomó ninguna medida significativa para compensar su falta de presencia física en las comunidades de mayoría afroestadounidense e hispana. En virtud de la orden por consentimiento propuesta, que también fue entablada hoy ante el tribunal federal y está sujeta a aprobación judicial, Park National ha acordado, entre otras cosas, hacer lo siguiente: Invertir al menos $7.75 millones en un fondo de subvención de préstamos para aumentar el acceso al crédito para hipotecas, mejoras y refinanciación de viviendas, así como préstamos y líneas de crédito sobre el valor neto de la vivienda, en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; $750,000 en iniciativas de divulgación, publicidad, y educación financiera de los consumidores y asesoramiento crediticio; y $500,000 en el desarrollo de asociaciones comunitarias para prestar servicios a los residentes de zonas de mayoría afroestadounidense e hispana que amplíen el acceso al crédito hipotecario residencial; Abrir una nueva sucursal y una nueva oficina de generación de préstamos hipotecarios en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; garantizar que un mínimo de cuatro prestamistas hipotecarios, al menos uno de los cuales sea hispanohablante, estén asignados para atender a estos barrios; y mantener el puesto a tiempo completo de Director de Préstamos y Desarrollo de Viviendas Comunitarias, responsable de supervisar los préstamos en las zonas de mayoría afroestadounidense e hispana; y Realizar una Evaluación de las Necesidades de Crédito de la Comunidad, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las zonas censales de mayoría afroestadounidense e hispana de la zona de Columbus. Park National trabajó en colaboración con el Departamento para remediar las inquietudes de exclusión financiera que se habían identificado y ha acordado resolver este asunto sin litigio contencioso. La Iniciativa para Combatir la Exclusión Financiera es un esfuerzo coordinado para hacer cumplir las leyes para abordar esta forma persistente de discriminación contra las comunidades de color. Desde al lanzamiento de la Iniciativa, el Departamento ha anunciado seis casos y acuerdos de exclusión financiera y ha conseguido $84 millones en ayuda para las comunidades de color que han sido víctimas de discriminación en el ámbito crediticio en todo el país. Esto incluye un acuerdo de $31 millones con City National Bank , el más grande en la historia del Departamento de Justicia. Se puede encontrar información adicional sobre los esfuerzos del Departamento de hacer cumplir las leyes de préstamos justos en https://www.justice.gov/crt-espanol/hce . Las personas pueden denunciar la discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea .


title: Nashville Acupuncture Clinic Agrees To Pay $300,000 To Resolve False Claims Act Allegations

component: USAO - Tennessee, Middle

body_text: NASHVILLE – U.S. Attorney Henry C. Leventis announced today that the United States has reached an agreement with Nashville Acupuncture Clinic, PLLC (NAC) to settle allegations of violating the False Claims Act (FCA). Under the terms of the agreement, NAC will pay $300,000 to resolve the allegations. “Health care fraud is a top priority of this office,” said U.S. Attorney Leventis. “We will continue to aggressively pursue anyone involved in fraud against government programs. Whether it be a corporate entity, a clinic, or an individual provider, those who seek to exploit federal health care programs for financial gain can expect to be the focus of our civil and criminal enforcement efforts.” The United States contends that the NAC violated the FCA by submitting false claims to the U.S. Department of Veterans Affairs (VA) for non-reimbursable acupuncture for which the claims were not authorized, not allowed as coded, or lacked supporting documentation. The settlement covers conduct from the period of January 1, 2017, through December 31, 2020, during which the VA reimbursed NAC for claims arising from false statements. These allegations follow an internal audit by the VA - Office of Inspector General and in its published report issued in December 2021. The audit team estimated that improper payments for acupuncture amounted to about $137 million nationwide during FY 2018 and FY 2019. “The VA OIG is committed to using all available resources, including proactive data reviews of medical provider billing to identify any billing practices that are statistical outliers. Today’s settlement is a result of those efforts,” said Special Agent in Charge Kim Lampkins of the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “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." The civil claims resolved by settlement are allegations. There has been no determination or admission of liability in this matter. This case was investigated by the VA-Office of Inspector General. Assistant U.S. Attorney Kara F. Sweet represented the United States. # # # # #


title: Landlord and Former Operators of Upstate New York Nursing Home Pay $7,168,000 to Resolve False Claims Act Allegations of Worthless Services Provided to Residents

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – The Justice Department, together with the New York State Office of the Attorney General, announced today that the United States and New York State have entered into settlement agreements with the landlord and several individuals and entities involved in the operation of Saratoga Center for Rehabilitation and Skilled Nursing Care (Saratoga Center), a nursing facility in Ballston Spa, New York. Leon Melohn; Alan “Ari” Schwartz; Jeffrey Vegh; Jack Jaffa; 149 Ballston Ave., LLC; Ballston Two, LLC; Saratoga Center for Care, LLC; and Saratoga Care and Rehabilitation Center, LLC (the Settling Parties) collectively agreed to pay $7,168,000 to resolve allegations that they violated the False Claims Act by causing the submission of false claims to the Medicaid program for worthless services provided to residents. Saratoga Center closed in February 2021, after this investigation was initiated. “This settlement demonstrates the Department of Justice’s ongoing commitment to ensuring that nursing home residents receive the quality of care to which they are entitled,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When individuals or entities put the welfare of these vulnerable residents in jeopardy, they will be held accountable.” Before issuing a license to operate a nursing home, the New York State Department of Health (NYSDOH) thoroughly reviews, among other things, an applicant’s character and competence to ensure that the operator will provide a consistently high level of care to residents. After a months-long vetting process, in 2014, NYSDOH approved Schwartz and Vegh to operate Saratoga Center with Leon Melohn, through entities he managed and controlled, acting as its landlord (Melohn and his entities are hereinafter referred to as the Landlord). This license vested in Schwartz and Vegh the nondelegable duty to oversee the operations of the home. But in or around early 2017, due to a financial dispute, the Landlord required the legally licensed operators to surrender control of Saratoga Center. The Landlord replaced them with Jaffa and a business associate of his, along with various corporate entities, even though none of them had – and they never obtained – the necessary license from the NYSDOH. Jaffa and his associate undertook all the nondelegable duties that remained the responsibility of Schwartz and Vegh. These unlicensed individuals operated Saratoga Center from February 2017 until it closed in February 2021. During that period, the United States contends that Saratoga Center delivered worthless services to residents, and its physical conditions deteriorated to such a degree that it violated federal and state regulations. Specifically, the operators failed to adequately staff the home, and residents suffered medication errors, unnecessary falls, and the development of pressure ulcers. Additionally, Saratoga Center did not consistently maintain hot water throughout the facility, have an adequate linen inventory, and dispose of solid waste. In 2019, Saratoga Center was placed on the Centers for Medicare and Medicaid Services Special Focus Facility list – a list of the worst-performing nursing homes in the United States. Saratoga Center remained on the list until its closure. The United States contends that, between February 2017 and February 2021, the Settling Parties knowingly submitted or caused the submission of false claims for payment to Medicaid for worthless nursing services. This settlement resolves those allegations. “Nursing homes should protect the health and well-being of every resident,” said U.S. Attorney Carla Freedman for the Northern District of New York. “That did not happen at Saratoga Center. Instead, a business dispute between the operators and landlord led to dangerous conditions for residents and staff, and caused the submission of false claims to Medicaid for worthless services. This case demonstrates that we will hold responsible people accountable when they pocket federal funds while providing substandard care. Thank you to Attorney General James and her office for collaborating on this case.” “We trust nursing homes to protect New Yorkers during their most vulnerable days, but the owners, unlicensed operator and landlord of Saratoga Center repeatedly violated the law for their own benefit,” said Attorney General Letitia James. “Instead of providing the quality care and compassion that residents deserved, the owners of Saratoga Center deceived regulators and left residents to suffer deplorable conditions and neglect. I am grateful to U.S. Attorney Freedman and team for their partnership in holding Saratoga Center accountable for putting New Yorkers in harm’s way. My office will continue to ensure nursing home residents are protected, and I encourage anyone who has witnessed alarming conditions, resident neglect, or abuse at a nursing home to contact my office.” In connection with the settlement, the United States Department of Health and Human Services, Office of Inspector General (HHS OIG), negotiated voluntary exclusions of the individuals and entities. Schwartz; Saratoga Center for Care, LLC; 149 Ballston Ave, LLC; and Ballston Two, LLC will be excluded from Medicare, Medicaid, and all other Federal health care programs, as defined in 42 U.S.C. § 1320a-7b(f), for a period of ten years. Vegh will be excluded for eleven years. Jaffa and Saratoga Care and Rehabilitation Center, LLC, will be excluded for twenty years. “Ensuring safety and quality of care for nursing home residents is a top priority,” said Inspector General Christi A. Grimm of the HHS OIG. “When nursing home owners, operators, and landlords are responsible for substandard care in their facilities, HHS OIG will not hesitate to pursue their exclusion and bar them from future participation in federal health care programs.” The resolution obtained in this matter was the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the Justice Department’s Civil Division Commercial Litigation Branch, Fraud Section, the New York State Office of the Attorney General’s Medicaid Fraud Control Unit, and the United States Department of Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Christopher R. Moran and Civil Division Attorneys Carol Wallack and Lyle Gruby handled this matter for the United States. Special Assistant Attorneys General Emily Auletta and Hillary Gray Chapman handled this matter for the Office of the New York Attorney General’s Medicaid Fraud Control Unit. The exclusions of the individuals and entities were negotiated by Senior Counsel Felicia Heimer for HHS OIG. The United States’ investigation was part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice. Attachments: 149 Ballston Ave Ballston Two Settlement Agreement (2-27-2023).pdf Jack Jaffa Settlement Agreement (2-27-2023).pdf Jeffrey Vegh Settlement Agreement (2-27-2023).pdf Ari Schwartz and Saratoga Center Settlement Agreement (2-27-2023).pdf


title: UPS employees charged with trafficking cocaine

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A total of five people have been arrested on charges of conspiracy to possess with intent to distribute cocaine and possession with intent to distribute cocaine, announced U.S. Attorney Alamdar S. Hamdani. Orlando Candelario Almanza, 49, Edinburg, and Fidencio Salinas Jr., 51, Pharr, are set to make their initial appearances before U.S. Magistrate Judge Nadia S. Medrano at 9:30 a.m. today. Also arrested last week and who made their appearance already were Javier Enrique Mendoza, 48, Pharr, and Jose Felipe Lozano, 58, Edinburg. Enrique Bernardo Gamez, 45, Hidalgo, was previously in custody on related charges and will make his appearance in the near future. The multi-count indictment was returned Feb. 21 and unsealed upon the arrests last week. On multiple occasions between March 24 through Oct. 3, 2022, the indictment alleges the five individuals conspired to transport cocaine through UPS packages. Salinas and Almanza are both allegedly UPS employees who knowingly transported the packages of cocaine. The charges allege Mendoza provided the packages of cocaine to UPS employees, while Lozano allegedly provided fraudulent labels for the packages. Gamez stored the cocaine at his residence prior to transport, according to the charges. Law enforcement seized approximately 60 kilograms of cocaine these individuals allegedly trafficked. If convicted, they all face up to life in prison and a possible $10 million fine. The Drug Enforcement Administration, Hidalgo County High Intensity Drug Trafficking Area Task Force and FBI conducted the investigation. Assistant U.S. Attorney Laura Garcia is prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.