title: Former Liberian Rebel General Pleads Guilty to Immigration Fraud

component: Criminal - Human Rights and Special Prosecution Section

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero, the Justice Department, and Homeland Security Investigations announced that Laye Sekou Camara, 46, of Mays Landing, New Jersey, entered a plea of guilty yesterday before United States District Court Judge Chad F. Kenney to using and possessing a green card that he unlawfully obtained by making false statements about his involvement in the civil war in the west African nation of Liberia. Camara pleaded guilty on the eve of trial to all charges against him — three counts of using, and one count of possessing, a fraudulently obtained green card. According to court documents, Camara was a general with a Liberian rebel group from approximately 1999 to 2003 and fought against the Liberian government that was led by then-President Charles Taylor. Camara, also known as K-1 and Dragon Master, entered the United States pursuant to an immigrant visa and later obtained Lawful Permanent Resident status and a green card by falsely stating on immigration forms that he had never participated in extrajudicial killings or other acts of violence; had never been involved with a paramilitary unit, rebel group, or guerilla group; and had never engaged in the recruitment or use of child soldiers. According to the indictment, Camara used the green card when he applied for a Pennsylvania identification card in 2017, applied for a New Jersey home health care aide license in 2020, and sought employment at a New Jersey-based home health care agency in 2020, and he was in possession of the green card when he was arrested in 2022 at JFK International Airport in New York before attempting to board an international flight. Camara is scheduled to be sentenced on May 19, 2025, and faces a maximum penalty of 40 years in prison. “Respecting both human dignity and the rule of law is fundamental to who we are as a nation,” said U.S. Attorney Romero. “Camara lied about his brutal history in Liberia to get a green card and live in the United States, enjoying the benefits and protections provided by our government’s laws, even as he flouted them. The Department of Justice is committed to working with our federal and international partners to deny human rights violators safe haven in this country.” “The guilty plea by Laye Sekou Camara is another resounding example of coordination and collaboration targeting human rights violators globally,” said Edward V. Owens, Special Agent in Charge of HSI Philadelphia. “Camara fraudulently claimed that he had not participated in Liberia’s civil war. In fact, Camara, also known as ‘Dragon Master,’ was a high-ranking member of the Liberians United for Reconciliation and Democracy (LURD) rebel group during Liberia's Second Civil War. As such, he was involved in committing atrocities, including the massacre of civilians, and the recruitment of child soldiers. HSI, along with the excellent prosecutors with the U.S. Attorney’s Office, will continue to thoroughly investigate and prosecute such offenses to ensure that war criminals that engage in such horrific crimes against humanity will find no refuge within the United States.” This case is being investigated by HSI, with assistance from the Pennsylvania Attorney General’s Office and U.S. Department of State’s Diplomatic Security Service at the U.S. Embassy in Monrovia, Liberia. Assistant U.S. Attorneys Linwood C. Wright Jr., Patrick Brown, and Kelly M. Harrell are prosecuting the case, with Trial Attorney Chelsea Schinnour of the Department of Justice Criminal Division’s Human Rights and Special Prosecutions Section. Members of the public who have information about human rights violators in the United States are urged to contact U.S. law enforcement through the FBI tip line at 1-800-CALL-FBI or the HSI tip line at 1-866-DHS-2-ICE, or complete the FBI online tip form or the ICE online tip form .


title: U.S. Government Reaches Settlement in Class Action Relating to Discharge Paperwork of Military Veterans Discharged Under “Don’t Ask, Don’t Tell” and Predecessor Policies

component: Civil Division

body_text: On Jan. 3, the United States reached a settlement in Farrell v. Department of Defense , a class action lawsuit filed in 2023 in the U.S. District Court for the Northern District of California. The plaintiffs in Farrell alleged that the Department of Defense’s files for military veterans discharged under “Don’t Ask, Don’t Tell” and earlier policies barring lesbian, gay and bisexual people from serving openly in the military violate the Constitution’s guarantees of equal protection and due process. Under the proposed settlement, veterans will have the opportunity to request changes to aspects of their discharge paperwork relating to sexual orientation under more streamlined procedures than currently available. The proposed settlement agreement is subject to final approval by the district court after notice to the class and an opportunity to object. Additional information for class members about the proposed settlement is available here: www.defense.gov/Spotlights/Dont-Ask-Dont-Tell-Resources/ www.milreviewbds.mil/Portals/149/Class%20Notice__Farrell%20et%20al__1.pdf


title: Four Members Of Charlotte-Based Multi-Million Dollar Auto Theft Ring Are Sentenced To Prison

component: USAO - North Carolina, Western

body_text: CHARLOTTE, N.C. – Four members of a theft ring that stole more than 100 high-end vehicles worth millions of dollars from dealerships located across the United States were sentenced in federal court late yesterday, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. Attorney King is joined in making today’s announcement by Cardell T. Morant, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert M. DeWitt, Special Agent in Charge of the FBI in North Carolina, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD). The defendants pleaded guilty to conspiracy to transport, possess, and sell stolen vehicles in interstate commerce and were sentenced as follows: Dewanne Lamar White, 44, of Sumter, South Carolina, was sentenced to 108 months in prison followed by three years of supervised release. White also pleaded guilty to possession of a stolen motor vehicle. Kevin Ja’Coryen James Fields, 28, of Charlotte, was sentenced to 96 months in prison followed by three years of supervised release. Fields also pleaded guilty to interstate transportation of a stolen vehicle. Reginald Eugene Hill, 25, of Charlotte, was sentenced to 60 months in prison, followed by two years of supervised release. Garyka Vaughn Bost, 26, of Denver, North Carolina, was sentenced to 12 months and a day in prison followed by two years of supervised release. According to court documents and court proceedings, from 2021 to 2023, the defendants engaged in a conspiracy to steal luxury vehicles worth millions of dollars from dealerships in North Carolina, South Carolina, Georgia, Florida, Tennessee, Kentucky, Alabama, Mississippi, Louisiana, Indiana, Ohio, Pennsylvania, New Jersey, New York, and Arizona. To maximize profits, they targeted luxury vehicles made by Bentley, BMW, Cadillac, Land Rover, Porsche, and Mercedes-Benz, and other expensive models from Chevrolet, Dodge, Ford, and other manufacturers. Court documents show that the defendants executed the thefts in a number of ways. In some instances, they visited dealerships posing as customers interested in purchasing the vehicles. After pretending to test drive or inspect the vehicles, the defendants would swap the vehicles’ key fobs with similar ones, and later use the stolen key fobs to steal the vehicles. Other times, they employed methods like “smash and grab” thefts, where they would break into dealerships and locate keys to the high-end models, or break open lockboxes containing keys to luxury vehicles, and then drive the vehicles off the lot. According to court records Bost, Fields, and Hill often served as drivers in the conspiracy, and White frequently paid them and other drivers for their work in the scheme. On several occasions the defendants and other co-conspirators stole multiple vehicles simultaneously, resulting in hundreds of thousands of dollars in losses. According to court documents and the sentencing hearings, once the stolen vehicles were taken off the dealership lots, the defendants avoided law enforcement detection by removing the GPS navigation and tracking systems from the stolen vehicles, attaching fictitious dealer tags or stolen license plates on the vehicles, and replacing the vehicles’ authentic Vehicle Identification Numbers, among other things. The stolen vehicles were then transported back to Charlotte where they were sold locally at prices well below market value. In making today’s announcement, U.S. Attorney King thanked HSI, FBI, and CMPD for their investigation of the case and recognized the contributions of the York County South Carolina Sheriff’s Office and many other state and local law enforcement partners that assisted with the investigation. Assistant U.S. Attorneys William Bozin and Daniel Ryan of the U.S. Attorney’s Office in Charlotte are prosecuting the case.


title: Fayetteville Man Sentenced to More Than 15 Years in Federal Prison  For Attempted Production of Child Pornography

component: USAO - Arkansas, Western

body_text: FAYETTEVILLE – A Fayetteville man was sentenced yesterday to 188 months in prison without the possibility of parole on one count of Sexual Exploitation of a Minor via Attempted Production of Child Pornography on January 15, 2025. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville. According to court documents, in November of 2023, the Benton County Sheriff’s Office conducted an online child pornography investigation that led investigators to discover that a residence in Fayetteville was responsible for downloading child pornography. The Benton County Sheriff’s Office then provided the lead to the Northwest Arkansas Internet Crimes Against Children (ICAC) Task Force. Investigators with the ICAC Task Force and Fayetteville Police Department subsequently executed a residential search warrant at the Fayetteville residence and encountered John Steven Wallace , age 30, who admitted that he was responsible for downloading child pornography files via the peer-to-peer network. Wallace further admitted that he had produced images and videos of a minor in various stages of undress with a hidden camera staged in the bathroom of his residence. Subsequent forensic examination of the electronics taken from the residence confirmed Wallace had a large collection of child pornography and the videos of the minor he identified. Wallace was indicted by a Grand Jury in May 2024 and entered a plea of guilty in September 2024. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. The Internet Crimes Against Children (ICAC) Task Force, Fayetteville Police Department and the Benton County Sheriff’s Office investigated the case. Assistant U.S. Attorney Tyler Williams prosecuted the case. This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov


title: Pittsburgh Felon Sentenced to More Than 11 Years in Prison for Fentanyl, Cocaine, and Firearms Violations

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. – A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 135 months in prison, to be followed by five years of supervised release, on his conviction of violating federal narcotics and firearms laws, United States Attorney Eric G. Olshan announced today. United States District Judge Marilyn J. Horan imposed the sentence on Willie Blair Jr., 43, on January 14, 2025. According to information presented to the Court, in early October 2022, Blair possessed with intent to distribute more than one kilogram of a mixture and substance containing fentanyl, in addition to attempting to possess with intent to distribute more than two kilograms of a mixture and substance containing cocaine. He also possessed a firearm and ammunition as a convicted felon. Federal law prohibits possession of a firearm or ammunition by a convicted felon. After being led to Blair’s residence through a suspicious United States Postal Service parcel containing approximately two kilograms of cocaine that was addressed to the residence, law enforcement executed a search warrant upon the home and Blair’s vehicle, recovering a total of approximately 1,262.8 grams of fentanyl as well as a kilogram press and packaging and cutting material consistent with drug trafficking. In the main bedroom, law enforcement also found a loaded Glock pistol and various ammunition. Blair admitted that the fentanyl, drug trafficking tools, and pistol and ammunition all belonged to him and to being a multi-kilogram distributor of fentanyl and heroin, as well as to attempting to possess with intent to distribute the cocaine seized from the USPS parcel. Blair had several previous felony convictions for controlled substances, including a federal conviction for conspiracy to possess with intent to distribute and distribution of heroin. Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government. United States Attorney Olshan commended the United States Postal Inspection Service, Drug Enforcement Administration High Intensity Drug Trafficking Areas Task Force, Pennsylvania Office of Attorney General, and Pennsylvania State Police for the investigation that led to the successful prosecution of Blair.


title: Registered Sex Offender Indicted For Transporting And Possessing Child Sexual Abuse Material And AI Generated Child Sexual Abuse Material

component: USAO - Florida, Middle

body_text: Tampa, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Oxley (52, Polk City) with transportation and possession of child sex abuse material and possession of obscene visual depictions of minors engaging in sexually explicit conduct. If convicted, Oxley faces a maximum penalty of 40 years in federal prison for transporting child sex abuse material and up to 20 years in federal prison for the possession and AI offenses. The indictment also notifies Oxley that the United States intends to forfeit a cellphone, which was used in the commission of the offense. According to court documents, on December 22, 2024, Oxley entered the Tampa seaport on board a cruise ship. The ship had traveled to two destinations in Mexico before returning to Tampa. Between December 17 and 22, 2024, Oxley transported child sex abuse material. Agents from U.S. Customs and Border Protection conducted a search of Oxley’s cellphone, which he had traveled with, and observed images and videos of child exploitation. Beginning on an unknown date and continuing to December 22, 2024, Oxley possessed images and videos of minors engaged in sexually explicit conduct, including minors under 12 years of age. He also possessed AI generated images that appeared to depict minors engaged in sexually explicit conduct. Oxley is a registered sex offender, have previously been convicted in 2012 of three counts of possessing images showing the sexual performance by a child, in violation of Florida state laws. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . This case was investigated by Homeland Security Investigations and U.S. Customs and Border Protection. It will be prosecuted by Assistant United States Attorney Ilyssa M. Spergel.


title: Pittsburgh Resident Sentenced to Three Years in Prison for Failure to Register as Sex Offender

body_text: PITTSBURGH, Pa. - A former resident of Pittsburgh, Pennsylvania, was sentenced in federal court to 36 months of imprisonment on his conviction of violating federal sex offender registration laws, United States Attorney Eric G. Olshan announced today. United States District Judge W. Scott Hardy imposed the sentence on Terry Bonner, 30, on January 16, 2025. According to information presented to the Court, Bonner previously pleaded guilty and was convicted of First Degree Criminal Sexual Abuse while living in the State of Alabama, resulting in a requirement for Bonner to register under the Sex Offender Registration and Notification Act (SORNA). As part of his guilty plea in that case, Bonner was notified that he was required to register as a sex offender in the jurisdiction in which he resides. Bonner moved to Pennsylvania and lived in the City of Pittsburgh between December 2022 and April 2023. During that period, Bonner failed to take any steps to update his registration with local law enforcement officials as required for a sex offender under SORNA. Court records in Alabama showed that Bonner also had been convicted multiple times for failing to register in that state. Prior to imposing sentence, Judge Hardy stated that Bonner’s conduct was particularly serious because of his lengthy criminal history, history of violence, and repeated willful disregard for his registration requirements. Judge Hardy stated that SORNA requirements exist to keep communities safe from violent sex offenders with histories like Bonner’s, and that he hoped that a sentence of 36 months in federal prison would finally impress upon Bonner, and all sex offenders subject to SORNA, that they must take their obligation to register seriously or face severe consequences. Assistant United States Attorney Benjamin C. Dobkin prosecuted this case on behalf of the United States. United States Attorney Olshan commended the United States Marshals Service and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Bonner.


title: Multiple defendants indicted on federal firearms charges

body_text: SAVANNAH, GA: Newly returned indictments in the Southern District of Georgia include charges alleging felons illegally possessed firearms, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges. “Removing guns from the hands of those who are prohibited from possessing them is a vital part of this office’s effort to fight violent crime,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “Our law enforcement partners continue their valiant efforts to identify individuals who illegally possess weapons in our communities.” The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns. Those indicted in January include: Natravien Reshawn Landry , 25, of Abbeville, Louisiana, charged with Premeditated Murder and Use of a Firearm During a Crime of Violence for the Dec. 14, 2024, fatal shooting of U.S. Army Sgt. Andre S. Stewart Jr. at Fort Eisenhower in a case under investigation by the Department of the Army Criminal Investigation Division. Also, Fitz Kenney Williams , 33, of Augusta, charged with Illegal Receipt of a Firearm by a Person Under Indictment; Ruben Alejandro Reyna-Mendoza , 47, of Ridgeland, South Carolina, charged with Possession of a Firearm by a Convicted Felon; and, Jarvis Jerrell Giles , 36, of Savannah, charged with Possession of a Firearm by a Convicted Felon. All indicted defendants are considered innocent unless and until proven guilty. Defendants recently adjudicated on federal firearms charges include: Lial Stephens , 28, of Pooler, Ga., was sentenced to 64 months in prison and ordered to pay $11,400 in restitution after pleading guilty to two counts of Interference with Commerce by Robbery. Stephens pointed a pistol at a Garden City, Ga., convenience store clerk during robberies in September and November 2023. Jeremy Studdard , 43, of Dublin, Ga., was sentenced to 80 months in prison and fined $1,500 after pleading guilty to Possession of Firearms by a Convicted Felon, and Possession of Methamphetamine with Intent to Distribute. Studdard, initially facing a federal gun charge, was out on bond for related state charges when Dublin police officers found him in possession of drugs and guns during two separate traffic stops. Ray Charles Canady III , 51, of Augusta, awaits sentencing after pleading guilty to Interference with Commerce by Robbery, Possession of a Firearm in Furtherance of a Crime of Violence. Richmond County investigators arrested Canady after he brandished a firearm at an Augusta convenience store in February 2024 and threatened an employee before running from the store with cash and lottery tickets. Phillip Moore , 29, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers conducting foot patrol in a Savannah neighborhood found Moore in possession of a semiautomatic pistol while arresting him for trespassing. Kenneth Moultrie Jr. , 24, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a semiautomatic pistol in Moultrie’s possession during an April 2024 traffic stop. The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office. Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense. For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473


title: Nashville Man Sentenced to 25 Years in Federal Prison for Multiple Robberies and Carjackings

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

body_text: NASHVILLE – Jesse Jose Rucker, 35, of Nashville, Tennessee, was sentenced yesterday to 25 years in federal prison, followed by 4 years of supervised release, on charges related to a series of carjackings and robberies he committed in Middle Tennessee in November 2021 while he was on probation for a state court felony offense, announced Acting United States Attorney for the Middle District of Tennessee Robert E. McGuire. Rucker previously pled guilty to four counts of commercial robbery, four carjacking counts, three counts of brandishing a firearm during a crime of violence, and one count of unlawful possession of a firearm by a convicted felon. “This prosecution again demonstrates our unwavering commitment to hold violent offenders accountable for the havoc they wreak in our community” said Acting United States Attorney Robert E. McGuire. “This sentence ensures that Jesse Rucker will not have the chance hurt any other citizen for over two decades. Those who would do similar violence should know that we will do what it takes to ensure that they face similar punishment.” “This investigation focused on armed robberies, multiple carjackings, and terrifying acts of violence within the communities that we serve,” said ATF Special Agent in Charge Marcus Watson. “The ATF and our valued law enforcement partners will continue to collaborate and work collectively to take violent criminals off our streets in an effort to maintain public safety.” “Accountability is essential for violent criminals who prey on innocent victims,” said Metropolitan Nashville Police Chief John Drake. “In this case, our partnership with federal law enforcement to hold Rucker accountable means that he will be 60 when he is released from prison. I deeply appreciate the U.S. Attorney’s Office for working closely with us to keep Nashville safe.” According to court documents, on November 10, 2021, Rucker entered the Hightail Convenience Store on Eaton’s Creek Road in Joelton, Tennessee, and requested the clerk turn on a gas pump for him. When she said she could not, he opened his jacket and showed her a gun. He told her, “My homie was just shot, and I have to do what I have to do.” He left the store and pumped gas then returned to the store and demanded the money from the register. He received approximately $180 from the clerk, then fled the store. On November 11, 2021, at 8:01 a.m., Rucker carjacked a victim at the Woodspring Suites, located at 515 Metroplex Drive in Nashville. Rucker pulled into a parking space next to the victim, pointed a gun at the victim, and stated, “I want your car.” A few hours later, Rucker carjacked two more victims outside their home. He pointed a gun at the victims and told them he needed their vehicle. He then fled in their car in the direction of Nolensville Pike where, a few minutes later, he was captured on video getting out of the car before robbing the Harding Pharmacy at 4120 Nolensville Pike in Nashville. Rucker entered the pharmacy and approached the counter where he asked the victim for two boxes of syringes while waiving a black and silver pistol. Less than an hour later, at approximately 1:37 p.m., Rucker pulled up in the second stolen car next to yet another victim who was sitting in their car eating lunch at 1201 Antioch Pike. He pointed a gun at the victim and asked if he could have the victim’s car and phone. The victim refused to turn over the phone, despite Rucker asking multiple times. Finally, Rucker drove off in the victim’s car. A few minutes later, Rucker parked the latest stolen car outside the Metro PCS store at 3503 Nolensville Pike. He walked into the store and yelled to the employees, “You’re about to get robbed.” The employees did not believe him at first, but he then pulled out his black and silver gun, cocked it, and pointed it at an employee. He then demanded all the store’s iPhones. Surveillance from a nearby store captured Rucker entering the store, then walking by with his arms full of the stolen items from Metro PCS. Within minutes of leaving Metro PCS, Rucker entered the Dubai Jewelry store at 3971 Nolensville Pike with a gun in his hand where he smashed the glass of a jewelry counter with his gun. He reached into the jewelry counter and grabbed four 24 carat gold rings valued at $1,450 before leaving the store. After fleeing the store, Rucker crashed the stolen car into another car and attempted to carjack that car, but it had been disabled by the crash. Rucker then ran through the street and fired at least one shot. Rucker then carjacked yet another car at gunpoint at 2219 Murfreesboro Pike. This car was occupied by a couple and their two young children. Metro Nashville Police officers located the vehicle and initiated a pursuit on I-40 East into Wilson County where the pursuit lasted more than six minutes with multiple law enforcement vehicles dodging in and out of interstate traffic at speeds up to 126 miles per hour. Rucker crashed the stolen car into a Wilson County Sheriff’s Office deputy’s car and then ran away still carrying his gun in his hand. Wilson County deputies chased Rucker on foot for a short time down the interstate into oncoming traffic before catching and arresting him. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Metropolitan Nashville Police Department. Assistant U.S. Attorney Rachel M. Stephens prosecuted the case. # # # # #


title: Lead Defendants of Prolific Human Smuggling and Money Laundering Network Sentenced in Joint Task Force Alpha Investigation

component: Office of the Attorney General

body_text: A Texas woman and man were sentenced to 121 months and 135 months in prison and ordered to pay money judgments of $942,537.00 and $438,119.00 , respectively, this week for their roles as the leaders of a human smuggling organization (HSO) that conspired to illegally transport, harbor, and conceal from law enforcement hundreds of undocumented individuals in the United States and launder the proceeds of their illicit human smuggling. “The two defendants sentenced in this case were leaders of a human smuggling operation that endangered vulnerable migrants for profit,” said Attorney General Merrick B. Garland. “Since I directed the formation of Joint Task Force Alpha (JTFA) in 2021, the Justice Department has combatted the threats posed by dangerous human smuggling networks where they originate and operate. Since then, the Justice Department has made over 345 domestic and international arrests and secured 290 convictions.” “As these sentencings make clear, human smugglers will ruthlessly and dangerously exploit vulnerable people for profit — intending migrants should not believe their false promises of safety and opportunity,” said Secretary of Homeland Security Alejandro N. Mayorkas. “The Department of Homeland Security (DHS) will continue to work with our federal, state, and international partners to help track down these criminals, disrupt their illegal operations, and bring them to justice — the integrity of our lawful, orderly immigration system demands it.” “The defendants exploited vulnerable migrants by leading a scheme to unlawfully transport them across the U.S. border, using dangerous methods that risked the migrants’ lives in order to evade detection,” said Principal Deputy Assistant Attorney General Brent S. Wible, head of the Justice Department’s Criminal Division. “Because of illegal operations like this one, more than three years ago we launched JTFA to combat the most prolific and harmful human smuggling organizations. The sentences and forfeitures announced today underscore the Criminal Division’s commitment to working with its JTFA partners to disrupt and dismantle smuggling networks that callously endanger human life for profit.” “Confining individuals, including minors, in coffin-like spaces with no room to move or breathe, reveals this organization’s complete disregard for human life,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Those who profit from such human suffering will face justice, and their ill-gotten gains will be stripped away to ensure that crime does not pay.” According to court documents, Erminia Serrano Piedra, also known as Irma and Boss Lady, 33, and Oscar Angel Monroy Alcibar, also known as Pelon, 41, were leaders of an illegal HSO that unlawfully transported, harbored, and concealed from law enforcement the detection of hundreds of undocumented individuals in the United States. These individuals were citizens of Mexico, Guatemala, Colombia, and elsewhere and they or their families paid members of the HSO to help them travel illegally to and within the United States. Serrano Piedra’s role included directing the operations of the HSO, recruiting members, ordering payments to be made related to the organization’s operation, and instructing members of the HSO to be lookouts for law enforcement. Monroy Alcibar coordinated the smuggling of undocumented individuals and movement of financial proceeds for the HSO. The HSO used drivers to pick up undocumented individuals near the U.S.-Mexico border and transport them further into the interior of the United States, often harboring them at “stash houses” along the way in locations such as Laredo and Austin, Texas. Drivers for the HSO used various dangerous methods to transport undocumented individuals, including hiding them in suitcases placed in pickup trucks, cramming them in the back of tractor-trailers, covered beds of pickup trucks, repurposed water tankers, and wooden crates strapped to flatbed trailers. The methods used by the HSO to transport undocumented individuals placed their lives in danger, as they were frequently held in contained spaces with little ventilation, which became overheated and made it difficult to breathe, and they were driven at high speeds with no vehicle restraints in the back of trucks and tankers. Members of this HSO commonly referred to the undocumented individuals as “boxes,” “packages,” or “pieces.” Typically, the fee paid to the organization was approximately $8,000, with $3,000 paid up front to smugglers in Mexico and the remainder paid once the undocumented individuals entered the United States. Further, Serrano Piedra and Monroy Alcibar have admitted in court documents that they conspired to engage in financial transactions designed to conceal the nature, location, source, ownership, and control of ill-gotten proceeds of illicit human smuggling and the unlawful harboring and transportation of undocumented individuals. The leaders of the organization recruited and utilized straw persons to accept human smuggling proceeds in the straw persons’ bank accounts and then transferred these proceeds to the leaders under the pretense of work payments. The defendants also established businesses and opened business accounts in order to transfer the human smuggling proceeds. In addition, the defendants recruited individuals in the construction industry who accepted human smuggling proceeds in the form of cash in exchange for checks from the recruited individuals’ business bank accounts. Serrano Piedra and Monroy Alcibar, both leaders of the HSO, have admitted in court documents that they made significant money from their involvement in human smuggling. Moreover, Serrano Piedra admitted she was going to continue doing this for her lifetime and was not planning to retire. In addition to the terms in prison, the court entered orders of criminal forfeiture of two properties belonging to one or both of these defendants, which were purchased with the illicit proceeds of human smuggling, recently estimated to have the value of approximately $2,275,000 and $515,000. Serrano Piedra and Monroy Alcibar were originally charged by indictment in August 2022 and then by superseding indictment in August 2023. Serrano Piedra pleaded guilty on Jan. 4, 2024, to conspiracy to transport and move illegal aliens, transporting aliens for commercial and private financial gain and placing the lives of aliens in jeopardy while doing so, and conspiracy to launder money. Monroy Alcibar pleaded guilty on Jan. 9, 2024, to the same charges. Including Serrano Piedra and Monroy Alcibar, 14 co-conspirators have been sentenced for their various roles in the HSO, including some for laundering illicit proceeds. The sentences ranged up to 135 months in prison, with money judgments totaling over $2.3 million and forfeiture of interests in real property, including residences located in Bastrop and Elgin, Texas. One other co-conspirator still awaits sentencing. DHS Office of Inspector General, Homeland Security Investigations (HSI) Laredo, and Customs and Border Protection (CBP)’s U.S. Border Patrol Laredo Sector led U.S. investigative efforts on the case. HSI offices in Austin, San Antonio, Waco, and Corpus Christi, Texas; New Orleans, Louisiana; Gulfport, Mississippi; Mobile, Alabama; West Palm Beach, Florida; and HSI’s Human Smuggling Unit in Washington, D.C.; along with CBP’s National Targeting Center; U.S. Marshals Service; U.S. Immigration and Customs Enforcement Enforcement and Removal Operations — Austin; the Treasury Executive Office for Asset Forfeiture; Police Departments in Laredo, Killeen, Elgin, and Round Rock, Texas, as well as Wiggins, Missouri and Bogalusa, Louisiana; the Webb County Constable’s Office; Webb County District Attorney’s Office; Sheriff’s Offices in Webb, Bastrop, and Caldwell County, Texas, Harrison County, George County, and Stone County, Mississippi, and Mobile County, Alabama; Jefferson Parish and Washington Parish, Louisiana; Mississippi Bureau of Narcotics, and Louisiana State Police provided substantial assistance with the investigation. Trial Attorneys Christian Levesque and Angela Buckner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP), Trial Attorney and JTFA Deputy Director Daria Andryushchenko of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), MLARS Financial Investigator Kelly O’Mara, and JTFA member Assistant U.S. Attorney Jennifer Day for the Southern District of Texas are prosecuting the case, with substantial assistance from the Electronic Surveillance Unit of the Criminal Division’s Office of Enforcement Operations. This and related convictions of co-conspirators are the result of the coordinated efforts of JTFA. Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP, and supported by MLARS, the Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in more than 345 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 290 U.S. convictions; more than 240 defendants sentenced, including significant jail sentences imposed; and forfeitures of substantial assets.


title: Grand jury indicts 2 former FirstEnergy executives in racketeering conspiracy involving more than $60 million in bribery schemes

component: USAO - Ohio, Southern

body_text: CINCINNATI – Two former FirstEnergy executives have been indicted by a federal grand jury and charged with one count of participating in a racketeering (RICO) conspiracy. Charles E. Jones, 69, of Akron, and Michael Dowling, 60, of Massillon, will be scheduled to appear in federal court in Cincinnati today. The indictment was returned on Jan. 15 and unsealed this morning. It is alleged that Jones and Dowling participated in an enterprise (FirstEnergy Corp. and its subsidiaries) through a pattern of racketeering activity – including bribery, money laundering and obstruction – to increase the company’s stock price and enrich themselves. Although the defendants helped pursue the legal interests of FirstEnergy, Jones and Dowling also corrupted FirstEnergy by allegedly abusing their positions of trust and engaging in criminal activities in pursuit of personal and commercial gain. Jones served in senior executive positions for FirstEnergy, including as President and CEO, from approximately 2015 until his employment was terminated in 2020. During that time, Jones made approximately $65 million in compensation. Approximately $60 million of his earnings came from performance-based pay tied, in part, to FirstEnergy stock prices. Dowling served as Senior Vice President at the time of his termination in 2020. Part of his pay was also tied to company financial performance and growth. The 42-page indictment details the ways in which Jones and Dowling allegedly acted in support of the RICO conspiracy, including schemes to bribe former Ohio House Representative Larry Householder and former PUCO Chairman Samuel Randazzo. According to the indictment, between 2017 and March 2020, FirstEnergy paid more than $59 million to 501(c)(4) entity Generation Now, which Jones and Dowling knew was operated for the benefit of and controlled by Householder. The bribe money helped Householder gain the position of Speaker of the House and pass and uphold House Bill 6, a billion-dollar nuclear plant bailout to benefit FirstEnergy. It is alleged Jones and Dowling used a different 501(c)(4) entity, Energy Pass-Through, to fund with FirstEnergy money and direct payments to Generation Now and other entities they believed were associated with public officials for FirstEnergy’s and the officials’ benefit. Dowling allegedly referred to the 501(c)(4) as a “political tool.” The indictment also alleges that Jones and Dowling pushed for FirstEnergy-approved appointments to the state public utilities board, including Randazzo as PUCO Chairman. In January 2019, FirstEnergy allegedly paid Randazzo’s companies more than $4.3 million for Randazzo providing favorable official actions for FirstEnergy through PUCO proceedings. The indictment alleges that Jones referred to Householder as his “expensive friend,” and thanked Randazzo after PUCO, under Randazzo’s leadership, took action in 2019 that Jones attributed to raising FirstEnergy’s stock price. After the passage of House Bill 6, Dowling wrote, “Huge bet and we played it all right on the budget and HB 6 – so we can go back for more!” “I stated following the jury conviction of Householder and Borges that this office would continue to work tirelessly to hold more people accountable for their actions to harm Ohioans, and we have,” said U.S. Attorney Kenneth L. Parker. “This indictment is yet another step in the direction of that accountability.” “This alleged $60 million racketeering conspiracy defrauded Ohioans to enrich the defendants," stated FBI Cincinnati Special Agent in Charge Elena Iatarola. “The FBI will continue to pursue political corruption and corporate fraud to protect taxpayers and hold white-collar criminals responsible for their actions.” The RICO conspiracy as charged in this case is punishable by up to 20 years in prison. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the charges. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorney Matthew C. Singer are representing the United States in this case. An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law. # # #


title: Attorney For The United States Announces $9.5 Million Settlement With Stericycle, Inc. For Violations Of Hazardous Waste Management Regulations

component: USAO - New York, Southern

body_text: Matthew Podolsky, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, and Cecil Rodrigues, the Acting Assistant Administrator of the Office of Enforcement and Compliance Assurance of the U.S. Environmental Protection Agency (“EPA”), announced today that the U.S. has filed and simultaneously settled a lawsuit against STERICYCLE, INC. (“STERICYCLE”) for systemic, nationwide violations of the Resource Conservation and Recovery Act (“RCRA”), 42 U.S.C. § 6901 et seq. , and related regulations in the operation of its former hazardous waste management business from May 5, 2014, through April 6, 2020. The proposed stipulation and order of settlement agreed to by STERICYCLE requires payment of a $9.5 million civil penalty, one of the largest civil penalties ever paid for RCRA violations. The settlement is subject to approval by the Court. Attorney for the United States Matthew Podolsky said: “Today, we hold Stericycle responsible for flouting hazardous waste management requirements while operating a nationwide hazardous waste business, and risking significant potential harm to human health and the environment. This penalty should put other waste management firms on notice that we will hold them accountable when they shirk their legal responsibilities and put the public and environment in harm’s way.” EPA Acting Assistant Administrator Cecil Rodrigues said: “Stericycle repeatedly failed to ensure the proper transport, management, and storage of hazardous waste – a job that they were paid to do and entrusted to perform on behalf of customers nationwide. EPA is committed to ensuring companies comply with the law and to protecting communities from the potential risks associated with the mismanagement of hazardous wastes.” As alleged in the U.S. Complaint filed in Manhattan federal court: STERICYCLE is a waste management company that operated a nationwide hazardous waste transportation, storage, treatment, and disposal business until it sold the vast majority of the business on April 6, 2020. STERICYCLE operated 13 RCRA-permitted hazardous waste Treatment, Storage, and Disposal Facilities (“TSDFs”) and 44 waste transfer facilities. Between May 5, 2014, and the date of sale, STERICYCLE routinely violated RCRA requirements related to tracking and transportation of hazardous waste, as alleged in detail in the Complaint. STERICYCLE routinely lost track of hazardous waste while transporting it, sent hazardous waste to disposal facilities that were not the ones its customers had chosen, or delivered hazardous waste shipments without the required manifests. STERICYCLE also failed to comply with requirements for resolving and reporting discrepancies between hazardous waste identified on a shipping manifest and the hazardous waste received by STERICYCLE at its facilities for disposal, and it failed to timely return signed manifests to generators and timely submit them electronically to EPA. STERICYCLE also violated RCRA by storing hazardous waste in transfer facilities when not authorized to do so, either because the storage period was longer than the 10 days permitted by RCRA regulations or because overall transportation times for the hazardous waste shipment exceeded those constituting “the normal course of transportation” under RCRA regulations. All of this conduct violated RCRA hazardous waste regulations critical to preventing substantial risks to human health and the environment. STERICYCLE was well aware of severe problems giving rise to these violations and failed to address them. In the words of one STERICYCLE director in 2016, STERICYCLE had “way too many issues with a basic fundamental of [its] business, getting waste and paperwork from the generator to the designated facility.” In 2019, the same STERICYCLE director underscored the continuation of these fundamental failings: “The most basic thing that we do for our clients is moving the waste from point a to point b and we can’t do it.” On April 6, 2020, STERICYCLE completed the sale of its “Stericycle Environmental Solutions” hazardous waste business and, since that date, has largely ceased managing hazardous waste in the U.S. However, STERICYCLE remains accountable for its systemic RCRA violations prior to that sale. In the settlement filed with the federal court today, STERICYCLE admits, acknowledges, and accepts responsibility for the following, among other things: On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE was the transporter of hazardous waste shipments for hazardous waste generators, and failed to deliver part or all of the hazardous waste shipment described on the shipment’s manifest to the designated TSDF. On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE (or one of its subsidiaries or subcontractors) served as a transporter of hazardous waste shipments to one of STERICYCLE’s TSDFs and failed to ensure that a manifest accompanied all hazardous waste shipments. On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE failed to timely provide hazardous waste generators with final signed copies of their waste shipment manifests within 30 days after the shipments were delivered to STERICYCLE TSDFs. On numerous occasions between June 2018 and April 2020, STERICYCLE failed to timely submit hazardous waste manifests to EPA’s national system for electronically tracking hazardous waste shipments—known as the e-Manifest system—within 30 days after the date of delivery of the hazardous waste shipment to STERICYCLE TSDFs. On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE failed to consult with a generator prior to changing the destination of hazardous waste as designated on a hazardous waste manifest. On numerous occasions between May 5, 2014, and April 6, 2020, STERICYCLE stored hazardous waste at its hazardous waste transfer facilities (as that term is defined in 40 C.F.R. § 260.10) for longer than the 10-day limits permitted under RCRA. * * * Mr. Podolsky thanked EPA’s Office of Enforcement and Compliance Assurance for its critical work on this case. The case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorneys Dominika Tarczynska and Tomoko Onozawa are in charge of the case.


title: Two Money Couriers for Colombian-Based Drug Money Laundering Organization Convicted by Federal Jury

component: USAO - Massachusetts

body_text: BOSTON – Two men from Jamaica were convicted yesterday following a four-day jury trial for their involvement in a sophisticated international money laundering organization that laundered more than $6 million in drug trafficking proceeds from Colombian cartels through the United States, Caribbean and European banking systems. St. Devon Anthony Cover, 61, was convicted of one count of money laundering conspiracy and seven counts of laundering of monetary instruments. Dennis Raymond Rowe, 59, was convicted of one count of money laundering conspiracy, one count of money laundering and two counts of laundering of monetary instruments. U.S. District Court Judge Richard G. Stearns will schedule sentencing for a later date. The defendants were among 20 individuals from Colombia, Jamaica and Florida who were indicted by a federal grand jury in May 2022 in connection with the money laundering conspiracy. Over the course of the investigation, $1 million was seized from corporate bank accounts and other investigative activity. Nearly 3,000 kilograms of cocaine – with a street value of over $90 million – was traced back to the money laundering organization. This includes approximately 1,193 kilograms of cocaine seized at sea, 60 miles south of Jamaica, in July 2019, as well as 1,555 kilograms of cocaine seized in nine scrap metal shipping containers at the Port of Buenaventura, Colombia, in March 2019. “Today’s convictions reflect the relentless efforts of this office and our law enforcement partners to dismantle the sophisticated financial networks that fuel international drug cartels. These defendants were key players in a scheme that laundered millions in drug proceeds – enabling the flow of deadly narcotics onto our streets,” said United States Attorney Joshua S. Levy. “This case demonstrates that we will hold accountable all players in the illicit drug operations that have had a devastating impact on Massachusetts.” “Those who choose to launder money from drug proceeds are endangering the general public in Massachusetts. Maintaining public safety requires that they be prosecuted aggressively,” said Stephen Belleau, Acting Special Agent in Charge of the Drug Enforcement Administration, New England Field Division. “We will continue to work closely each day with our law enforcement partners to target those who seek to profit from the sale of deadly substances.” In or about October 2016, law enforcement began an investigation into a sophisticated money laundering organization located primarily in Barranquilla, Colombia. During an extensive five-year investigation, the organization laundered over $6 million in drug proceeds through intermediary banks in the United States, including banks in Massachusetts, as well as additional proceeds through banks in the Caribbean and Europe by use of the Colombian Black Market Peso Exchange (BMPE). By using the BMPE, the defendants and their co-conspirators sought to conceal drug trafficking activity and proceeds from law enforcement as well as evade currency exchange requirements in the United States and Colombia through the illegal currency exchange process. As part of the conspiracy, members of the organization held roles and responsibilities relative to the needs and opportunities of the scheme, such as drug suppliers, peso brokers, money couriers and business owners/dollar purchasers. Through the BMPE, Colombian drug trafficking organizations with drug proceeds generated in the United States use third parties – generally referred to as “peso brokers” that are also based in Colombia – who agree to exchange Colombian pesos they control for the drug supplier’s dollar proceeds. Peso brokers then use money couriers in the United States and elsewhere to physically secure the drug proceeds, often in suitcases or bags on the street, and transfer the proceeds into the United States banking system. To avoid detection, peso brokers deposit the drug proceeds into bank accounts in company or individual names intended to appear as legitimate business activity, or through multiple small deposits into different bank accounts which are then consolidated into larger accounts. As a result, Colombian peso brokers control a pool of drug-derived proceeds in United States bank accounts. These dollar proceeds are then purchased by individuals or companies in Colombia seeking to exchange pesos for United States dollars at a favorable exchange rate and in a manner that avoids currency exchange and income reporting requirements. The dollar drug proceeds are transferred at the direction of the purchaser, and often end up in bank accounts of individuals or companies who appear to have no direct involvement in drug trafficking crimes. During the course of the conspiracy, Cover laundered approximately $268,000 and Rowe laundered over $600,000 by delivering bulk cash drug proceeds to undercover law enforcement. The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. U.S. Attorney Levy; DEA Acting SAC Belleau; Thomas Demeo, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office; Aura Liliana Trujillo Rojas, Delegate for Criminal Finance for the Colombian Attorney General’s Office; Ricardo Sánchez Silvestre, Brigadier General of the Colombian National Police Anti-Narcotics Directorate; Jervis Moore, Chief of the Narcotics Division for the Jamaica Constabulary Force; and Colonel Geoffrey Noble of the Massachusetts State Police made the announcement. The Justice Department’s Office of International Affairs and the Criminal Division’s Narcotic and Dangerous Drug Section’s Office of the Judicial Attaché in Bogotá, Colombia provided significant assistance in securing the arrests and extraditions of Cover, Rowe, and other co-defendants from Colombia and Jamaica. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Two Charged with Defrauding Connecticut’s Medicaid Program

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; and Chief State’s Attorney Patrick J. Griffin today announced that RAMON APELLANIZ , also known as “Kristopher Rockefeller” and “Kris,” 39, of Middletown, and SUHAIL APONTE , 38, of Wethersfield, were arrested yesterday on federal criminal complaints charging each with health care fraud offenses stemming from an alleged scheme that defrauded Connecticut’s Medicaid program. Apellaniz and Aponte appeared before U.S. Magistrate Judge Thomas O. Farrish in Hartford. Aponte was released on a $100,000 bond and Apellaniz was detained pending a hearing that is scheduled for January 23. The Connecticut Medical Assistance Program (CTMAP) is a Connecticut Department of Social Services-administered program that provides medical assistance to low income persons. CTMAP’s benefit packages, referred to as “HUSKY” or “Connecticut Medicaid,” are jointly funded by the State of Connecticut and the federal government. As alleged in court documents and statements made in court, Apellaniz previously operated The Gemini Project, LLC (“Gemini”), a Newington-based business that offered counseling to patients with mental, behavioral, and emotional disorders. According to the State of Connecticut’s public license database, Apellaniz is not a licensed provider. In 2020, Apellaniz was charged by the state with larceny, health care fraud, and identity theft offenses related to his providing services to numerous Medicaid beneficiaries as a non-licensed provider, and Gemini billing Medicaid for those services, or for services that were not rendered at all. Medicaid paid Gemini and Apellaniz $909,268 for the false claims. Apellaniz pleaded nolo contendere and, on April 17, 2024, was sentenced in Hartford Superior Court to eight years in prison, execution suspended after 15 months, and five years of parole. He was released from Department of Correction custody on November 19, 2024. It is further alleged that in June 2021, Minds Cornerstone LLC, dba Minds Cornerstone Behavior Therapy Services (“Minds Cornerstone”), an Autism Specialist Group, was registered with the State of Connecticut. Aponte, who is not a licensed provider, was listed as its manager and registered agent. Beginning in approximately November 2021, Apellaniz, Aponte, and Minds Cornerstone defrauded the Connecticut Medicaid Program by submitting fraudulent claims for applied behavior analysis (“ABA”) services to children diagnosed with Autism Spectrum Disorder (“ASD”). Although Apellaniz does not appear on any of Minds Cornerstone’s Medicaid enrollment forms, has no ownership interest in the company, and has no signatory authority to any of its bank accounts, Apellaniz conspired with Aponte and ran the company under a pseudonym, including while he was incarcerated in state custody. The complaint specifically alleges that Apellaniz and Aponte billed Medicaid for services purportedly rendered to patients when company payroll records indicate employees were not compensated for the associated services; direct supervision services purportedly provided by a Board Certified Behavior Analyst (“BCBA”) of a behavioral technician, when the corresponding procedure code for behavioral technician services was not billed; services purportedly rendered to patients who were actually in an inpatient hospital; and services purportedly rendered when parents of patients and former employees of Minds Cornerstone confirmed those services did not occur. It is alleged that between November 2021 and December 2024, Apellaniz and Aponte submitted or caused to be submitted to Medicaid fraudulent claims that exceeded $1.8 million in losses to the Connecticut Department of Social Services. The ongoing investigation indicates that Apellaniz used some of the funds Minds Cornerstone received to pay a portion of the restitution he owes as a result of his state prosecution. From approximately May 2022 until November 2024, Aponte was also employed by the State of Connecticut in the Office of Policy and Management. Apellaniz and Aponte are charged with conspiracy to commit health care fraud, and health care fraud. Each offense carries a maximum term of imprisonment of 10 years. U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This investigation is being conducted by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Medicaid Fraud Control Unit of the Connecticut Chief State’s Attorney’s Office, with the assistance of the Connecticut Department of Social Services. The case is being prosecuted by Assistant U.S. Attorney David T. Huang.


title: New Orleans Man Given Maximum Sentence for Gun Offense

body_text: NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MAURICE FLORANT (“FLORANT”) , age 34, formerly a resident of New Orleans, was sentenced today by U.S. District Judge Carl J. Barbier to 180 months imprisonment after previously pleading guilty to being a Felon in Possession of a Firearm, in violation of Title 18, United States Code, Section 922(g)(1). The sentence, 180 months, is the maximum statutory sentence allowed. Judge Barbier also ordered that FLORANT be placed on supervised release for three (3) years following his release from imprisonment and pay a mandatory $100 special assessment fee. Court documents reveal that on September 5, 2022, FLORANT, a convicted felon, and another unknown individual, were seen on a home video camera shooting at two individuals with two pistols while driving in New Orleans in a stolen vehicle. Four days later, FLORANT was seen in a different stolen vehicle by Jefferson Parish Sheriff’s Office (JPSO) deputies but fled when they attempted to stop him. A high-speed chase ensued that ended when FLORANT crashed into an exterior air conditioning unit of an apartment complex. FLORANT ran from deputies but was eventually arrested. A Palmetto State Armory Model PA-15, .556 caliber pistol, and a CZ Scorpion Model EVO 3 S1, nine-millimeter pistol were recovered from the stolen car FLORANT was driving. Ballistic testing revealed that the shell casings found at the scene of the shooting matched the shell casings from the pistols found in the stolen car FLORANT was driving. The Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted JPSO and the New Orleans Police Department in the investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. United States Attorney Evans praised work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Narcotics Unit handled the prosecution.


title: Justice Department Files Civil Rights Lawsuit Against Iowa Landlord for Sexually Harassing Tenants

component: Civil Rights Division

body_text: The Justice Department announced today that it has filed a lawsuit against Kurt Williams and Gearhead Properties LC, of Davenport, Iowa, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Williams has managed residential rental properties in Davenport since at least 2010. The lawsuit, filed in the U.S. District Court for the Southern District of Iowa, alleges that, since at least 2010, Williams subjected female tenants to unwelcome sexual contact, exposed his genitals to female tenants, made requests for sex in exchange for reduced rent or other housing benefits and evicted tenants when they did not give in to his sexual advances. “Landlords who target vulnerable women by repeatedly demanding sex for themselves and their friends and retaliating against those who refuse with eviction actions and refusals to make repairs show an egregious abuse of power,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to protecting tenants’ right to live in and access housing free of sexual harassment. We encourage survivors of sexual harassment to speak out so that we can vindicate their fair housing rights.” “Seeking basic human needs such as housing, should not bring with it the threat of sexual harassment,” said U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Gearhead Properties is alleged to have violated the rights of tenants to be free from this type of harassment. Our office and the Justice Department will continue to protect and vindicate tenant’s rights. Improper interference with a tenant’s right to housing will not be tolerated. Anyone with information about the Gearhead Properties investigation are encouraged to contact our office at the number below.” The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest, and a court order barring future discrimination. The lawsuit is the result of a joint investigative effort with the Department of Housing and Urban Development Office of Inspector General (HUD-OIG). “It is unconscionable for landlords to sexually harass or abuse their vulnerable, low-income tenants,” said Inspector General Rae Oliver Davis of HUD. “The defendant allegedly preyed upon female tenants by seeking sexual acts in exchange for housing benefits and retaliating against them when they refused his advances. Together with our law enforcement partners we will continue to hold landlords accountable for this type of horrible conduct.” The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental properties owned or managed by Kurt Williams or Gearhead Properties LC, or who have other information that may be relevant to this case, may contact the Justice Department by calling the U.S. Attorney’s Office for the Southern District of Iowa at (515) 473-9300. Individuals may also email the Justice Department at fairhousing@usdoj.gov or submit a report online . Reports also may be made by contacting HUD at 1-800-669-9777 or by filing a complaint online . The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division in coordination with U.S. Attorneys’ Offices across the country, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 48 lawsuits alleging sexual harassment in housing and recovered over $17 million for victims of such harassment. The Civil Rights Division is committed to protecting people from sexual misconduct.


title: Prolific fraudster pleads guilty to multiple scams that resulted in over $600,000 in losses

component: Federal Bureau of Investigation (FBI)

body_text: ALEXANDRIA, Va. – A Washington man pled guilty today to conspiracy to commit wire fraud and aggravated identity theft. According to court documents, from at least January 2021 through April 2022, Marco Raquan Honesty, 28, engaged with co-conspirators in a number of fraud schemes including defrauding COVID relief programs, “smishing” scams, forged money orders, creating fake IDs and vehicle titles, a bank account takeover scheme, and selling stolen financial information online. From at least April through October of 2021, Honesty conspired to defraud the Paycheck Protection Program (PPP), which provided loans that were supposed to help eligible businesses cover specific permissible business expenses, such as making payroll payments. Honesty and his co-conspirators submitted fraudulent PPP loan applications for non-existent sole proprietorships. Honesty obtained kickback payments or fees from some of the PPP loans that he helped obtain, sometimes receiving payment of $10,000 per fraudulent PPP loan. Honesty and his co-conspirators submitted at least 16 first draw and nine second draw PPP loan applications, all of which were funded by the Small Business Association (SBA). Honesty and his co-conspirators also created false tax returns, including 2019 1040 Schedule C IRS Forms, to support the fraudulent PPP loan applications. A total of 15 individuals were involved in the fraudulent scheme, which resulted in a total loss of $509,069.00 to the SBA. Honesty procured PPP loans through this scheme for himself, his father, his two sisters, his grandmother, his cousin, the mother of his children, and various other friends and associates. Honesty engaged in a “smishing” scheme, short for “SMS phishing,” where he used a website that was spoofed to resemble a legitimate bank website. Honesty would send victims text messages crafted to appear to be from a bank, and typically included a link to the website in the message. Typically, the fraudulent text message alerted the victim of an unauthorized transfer of the victims’ funds. Victims would click the link in the text message and enter their username and password into the fraudulent website, allowing Honesty to obtain the victims’ usernames and passwords. Honesty used one smishing victim’s information to complete a purchase with the Texas Department of Motor Vehicles for temporary permits in support of a scheme to defraud car dealerships by providing fraudulent identification documents, cashier’s checks, and insurance documents for ostensible car purchases. From January through June of 2021, Honesty created fraudulent IDs to sell to other individuals, who in turn supplied these fraudulent documents to dealerships and attempted to purchase vehicles. From December 2021 to January 2022, Honesty engaged in a scheme in which he purchased large quantities of Western Union money orders, typically for one dollar each, then scratched the true amount off the money order and used computers, software programs, and printers to manipulate the money orders to reflect larger amounts, typically $500, $900, or $1,000. After the money orders were altered, Honesty deposited them into ATMs at various banks. In some instances, Honesty coordinated with co-conspirators to deposit the money orders and withdraw the proceeds quickly before the banks could determine that the money orders had been altered and reverse the deposits. Honesty conspired to deposit at least $79,700 of fraudulent money orders. Honesty operated a Telegram channel called “Heavenly Logs” with the username @Criptonic831, on which he advertised stolen credit cards, stolen checks, stolen bank log-in information, and other fraud-related contraband for sale to his followers. Honesty also orchestrated an account takeover scheme in which he gained access to victim accounts and, without the knowledge or permission of the account owner, transferred money to himself and his co-conspirators via payment platforms such as Zelle and intrabank transfers. On Sept. 7, 2023, law enforcement searched Honesty’s residence. Among other things, agents seized 24 cellphones, three laptops, blank Social Security card templates, a 16-pound box of blank IRS 1099 forms, Virginia temporary vehicle tags, multiple SIM cards for cellphones, a credit card embossing machine, blank cards with microchips, a credit card reader, a debit card in the name of an unrelated person, and a check stolen from an unrelated person. The known attempted loss for all of Honesty’s fraud schemes combined is $850,204.64. The actual known loss amount of the schemes is $621,958.50. Honesty is scheduled to be sentenced on May 23 and faces a up to 20 years in prison for wire fraud and a mandatory term of two years in prison for aggravated identity theft to be served consecutively with any other term of imprisonment imposed. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Sean Ryan, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorneys Katherine E. Rumbaugh and Kathleen Robeson are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:25-cr-3.


title: U.S. Attorney’s Office Honors Law Enforcement Personnel for Exceptional Public Service

component: USAO - Illinois, Southern

body_text: FAIRVIEW HEIGHTS, Ill. – U.S. Attorney Rachelle Aud Crowe announced the recipients of the 2024 Law Enforcement Public Service Awards on Wednesday. Honorees were selected based on their contributions to successful prosecutions in the Southern District of Illinois. “In 2024, the U.S. Attorney’s Office charged 248 criminal cases, which is nearly a 23% increase from 2023. We couldn’t prosecute cases without successful investigations, and we were proud to recognize this group of our trusted law enforcement partners with awards for their public service,” said U.S. Attorney Rachelle Aud Crowe. Awardees include: IRS Agents Jason Bamvakais and Bradley Roessler, DEA Task Force Officer Timothy Birckhead, ATF Agents Duane Clauer and Zachary Green, FBI Agent Raymond Hart, HSI Task Force Officer Robert Wallace, Illinois State Police Sergeant Zachary Heard, Veterans Affairs Office of Inspector General Agent Raymond Vasil and U.S. Marshals Service Deputy William Clay Weier. The USMS Great Lakes Regional Fugitive Task Force was selected as the group awardee. “We are elated and grateful to the United States Attorney’s Office for recognizing the outstanding work of the Great Lakes Regional Fugitive Task Force, Southern District of Illinois, and Supervisory Deputy U.S. Marshal Clay Weier with the 2024 Law Enforcement Public Service Award. SDUSM Weier has been an outstanding leader directing the daily activities of the task force. Their recent performance during Operation North Star, a national USMS fugitive operation, reinforced my belief that they are the best task force in the county,” said U.S. Marshal David Davis. Agent Bamvakais leads exceptional financial investigations and contributes to the office’s Organized Crime Drug Enforcement Task Force caseload, and retired Agent Roessler was recognized for his talent at developing confidential informants. Agent Birckhead works diligently on fatal drug overdose investigations throughout the Metro East, including the prosecution of Tessa Webber who was sentenced to 15 years’ imprisonment for selling a fatal dose of fentanyl. “Agent Birckhead is one of the best of the best. He continually investigates with tenacity and perseverance leaving no stone unturned. He also works with a zest for our victims and emulates every police officer’s sworn oath,” said Fairview Heights Police Chief Steve Johnson. Agent Clauer received recognition for his outstanding work on arson cases and testifying at trials. Agent Green was highlighted for his efforts to educate the law enforcement community in southern Illinois on the prevalence of ghost guns. “Every day our Special Agents work to make our communities safer, uphold the law, and protect civil rights, and we are happy that two of our Special Agents are being recognized for their outstanding work,” said ATF Assistant Special Agent in Charge Shannon Hamm. Agent Hart and Officer Wallace received accolades for their tireless and excellent work on child exploitation investigations. Sergeant Heard was honored for his contributions to investigate human trafficking cases in southern Illinois. In addition, he has led numerous trainings for more than 2,000 law enforcement officers to improve their education on trafficking indications during traffic stops. Retired Agent Vasil led the financial investigations for four cases charged over the last year regarding disability and PPP loan fraud.


title: Justice Department Sues to Shut Down Florida Return Preparer

component: Tax Division

body_text: The Justice Department filed a civil injunction suit yesterday in federal court in Fort Lauderdale, Florida. The suit seeks to bar a Broward County, Florida, tax return preparer and his business from owning or operating a tax return preparation business and preparing tax returns for others. The complaint alleges that Suni Ramchandani and his business SR Chandra Inc., doing business as AHS Income Tax Service, prepare federal tax returns for customers on which the preparers claim fraudulent deductions and credits to purposely underreport the tax their customers owe and claim refunds their clients are not entitled to receive. Specifically, the complaint alleges that Ramchandani and AHS prepare returns with false or inflated deductions, business expenses and business losses, as well as false claims for residential energy credits, fuel tax credits and other credits. The complaint also alleges that Ramchandani and AHS file returns that include a Form 8888 (Allocation of Refund), diverting customers’ additional refund amounts to bank accounts associated with Ramchandani without their customers’ knowledge or consent. The government further alleges that Ramchandani and AHS prepare thousands of tax returns each year, and that when the IRS examined dozens of returns for 2022 and 2023, between 78-82% of the examined returns had errors and fabrications. According to the complaint, the repeated understatement of tax has harmed the United States by causing a revenue loss of approximately $11 million over the past two years. In addition to seeking an injunction against Ramchandani and AHS, the government has requested an order of disgorgement to prevent them from profiting from their violation of the internal revenue laws. Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement. Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer. In addition, IRS Free File , a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $79,000. For individuals whose income is over that threshold, IRS Free File offers electronic federal tax forms that can be filled out and filed online for free. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website . An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page . If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details. Ramchandani Complaint.pdf


title: Tara M. Lyons named Acting U.S. Attorney for Southern District of Georgia

component: USAO - Georgia, Southern

body_text: As of January 18, 2025, and by virtue of the Vacancies Reform Act, First Assistant U.S. Attorney Tara M. Lyons is officially Acting U.S. Attorney for the Southern District of Georgia.


title: Justice Department Statements on Supreme Court’s Decision in TikTok, et al. v. Garland

body_text: The Justice Department issued the following statements from Attorney General Merrick B. Garland and Deputy Attorney General Lisa Monaco on the Supreme Court’s decision in TikTok, et al. v. Garland: “The Court’s decision enables the Justice Department to prevent the Chinese government from weaponizing TikTok to undermine America’s national security,” said Attorney General Garland. “Authoritarian regimes should not have unfettered access to millions of Americans’ sensitive data. The Court’s decision affirms that this Act protects the national security of the United States in a manner that is consistent with the Constitution.” “We welcome today’s decision by the Supreme Court. The Justice Department has long warned about the national security harms from PRC control of TikTok — including the ability to gather sensitive information about tens of millions of Americans and to covertly manipulate the content delivered to them,” said Deputy Attorney General Lisa Monaco. “The Court’s ruling also underscores that the bipartisan legislation upheld today is focused on protecting Americans, not restricting free speech. Rather, this legislation is about breaking the ties that bind TikTok to the government in Beijing, in a manner consistent with the Constitution. The next phase of this effort — implementing and ensuring compliance with the law after it goes into effect on January 19 — will be a process that plays out over time.”


title: Cedar Rapids Fentanyl Dealer Sentenced to Federal Prison

component: USAO - Iowa, Northern

body_text: A Cedar Rapids man who distributed more than 900 fentanyl pills was sentenced January 15, 2025, to more than five years in federal prison. Brogan Eugene McCartney, age 22, from Cedar Rapids, Iowa, received the prison term after a July 29, 2024 guilty plea to one count of conspiracy to distribute a controlled substance, one count of distribution of a controlled substance, and three counts of use of a communication facility to commit a felony drug offense. Information disclosed at sentencing showed that, between January 2023 and the beginning of March 2023, McCartney obtained at least 900 pills containing fentanyl from a source of supply. McCartney distributed some or all those pills to other individuals. On March 4, 2023, emergency personnel responded to McCartney’s residence in Cedar Rapids, where they found a female deceased in McCartney’s bed from a fentanyl‑related overdose. McCartney continued to distribute fentanyl pills. On August 7, 2023, law enforcement officers used an undercover officer to purchase 18 fentanyl pills from McCartney. During the August 7 purchase, McCartney told the undercover officer that he had a firearm on him, and McCartney then lifted up his shirt and flashed the handle of what appeared to be a firearm. Officers later learned that it was actually a BB gun. On August 23, 2023, the undercover officer ordered more fentanyl pills from McCartney. When the officer arrived at McCartney’s residence, McCartney and McCartney’s friend entered the officer’s vehicle, where McCartney’s friend distributed 16 fentanyl pills to the officer. On September 6, 2023, McCartney posted a video on social media of himself with a firearm containing an extended magazine. That same day, the undercover officer ordered more fentanyl pills from McCartney. When the officer arrived at McCartney’s residence, McCartney and McCartney’s friend entered the officer’s vehicle. During the purchase, McCartney offered to purchase a firearm for the officer if the officer paid McCartney $100. McCartney’s friend eventually distributed 30 fentanyl pills to the officer. McCartney was sentenced in Cedar Rapids by United States District Court Chief Judge C.J. Williams. McCartney was sentenced to 63 months’ imprisonment, and he must also serve a three‑year term of supervised release after the prison sentence. There is no parole in the federal system. McCartney is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Johnson County Drug Enforcement Task Force consisting of the Johnson County Sheriff’s Office, the Iowa City Police Department, the Coralville Police Department, the North Liberty Police Department, the University of Iowa Police Department, and the Iowa Division of Narcotics Enforcement; the Cedar Rapids Police Department; and the Drug Enforcement Administration. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24‑CR‑00057‑CJW. Follow us on X @USAO_NDIA.


title: BioReference Health and OPKO Health Agree to Pay $704,349 to Settle Allegations that they Billed the Government for Medically Unnecessary Blood Tests

component: Civil Division

body_text: BioReference Health LLC, formerly known as BioReference Laboratories Inc. (BioReference) and OPKO Health Inc. (OPKO), have agreed to pay $704,349 to resolve alleged violations of the False Claims Act arising from BioReference’s submission of claims for laboratory tests that had not been ordered by a patient’s provider. OPKO is a Delaware Corporation. BioReference, a subsidiary of OPKO, is headquartered in New Jersey and is one of the largest clinical laboratories in the United States. The United States alleged that BioReference and OPKO knowingly submitted false claims to federal healthcare programs for complete blood count (CBC) with automated white blood cell (WBC) differential laboratory tests that were not medically necessary. Specifically, the United States alleged that, from Jan. 1, 2012, until March 1, 2023, BioReference and OPKO routinely performed more expensive CBC with WBC differential tests when, in fact, medical providers had ordered less expensive CBC with no WBC differential tests, and then billed federal healthcare programs for the more expensive and medically unnecessary tests. “Health care providers are expected to provide and bill only for services that are medically necessary,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to protecting the integrity of federal health care programs and the taxpayer funds that support them.” “BioReference allegedly profited by fraudulently performing and billing the federal government for unreasonable and unnecessary lab tests,” said U.S. Attorney David C. Weiss for the District of Delaware. “Schemes like these waste taxpayer money and raise healthcare costs for all Americans. My office will vigorously enforce anti-fraud statutes like the False Claims Act to combat such fraud and abuse of our healthcare system.” “Laboratory companies have a responsibility to perform the specific testing requested by physicians’ orders,” said Special Agent in Charge Maureen R. Dixon of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to working with the Justice Department to investigate allegations of inappropriate insurance claims and to safeguard the integrity of our federal health care programs.” The settlement stems from allegations originally brought in a lawsuit filed in the District of Delaware by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties, known as relators, to bring suit on behalf of the government and to share in any recovery. In connection with today’s announced settlement, the relator will receive $112,694 of the recovery. The qui tam case is captioned United States ex rel. Omni Healthcare Inc. v. OPKO Health, Inc. and BioReference Laboratories Inc ., Civil Action No. 19-1670 (DDE). This settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and U.S. Attorney’s Office for the District of Delaware with assistance from HHS-OIG. Trial Attorney Claire L. Norsetter of the Justice Department’s Civil Division and Assistant U.S. Attorney Shamoor Anis for the District of Delaware handled the matter. The claims resolved by the settlement are allegations only. There has been no determination of liability. Settlement


title: Health Care Plan Agrees to Pay Over $500,000  As Part of Self-Disclosure of Potential False Claims Act Violations

component: USAO - Michigan, Eastern

body_text: DETROIT – United States Attorney Dawn N. Ison announced today that Commonwealth Care Alliance, Inc. (CCA) has agreed to pay $520,355.65 to resolve allegations that Reliance HMO, Inc., a company CCA acquired in 2022, violated the False Claims Act, 31 U.S.C. §§ 3729-3733, by providing cash payments to induce the referral of Medicare beneficiaries to enroll in Reliance’s Medicare Advantage Plan, in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b)(2). CCA voluntarily self-disclosed the conduct to the U.S. Attorney’s Office, and the settlement acknowledges that CCA took significant steps, entitling it to credit for cooperating with the government’s investigation. Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). The Centers for Medicare & Medicaid Services (CMS) pays MA Plans a monthly capitated payment for each beneficiary who enrolls in one of their plans. The Anti-Kickback Statute prohibits parties who participate in federal healthcare programs from knowingly and willfully paying or receiving any remuneration in return for referring an individual to, or arranging for the furnishing of, any item or services for which payment is made by the federal healthcare programs. CCA is a not-for-profit corporation, with its principal place of business in Boston, Massachusetts, engaged in offering MA Plans. In April 2019, CMS authorized Reliance HMO, Inc. (Reliance) to operate a MA plan for Medicare beneficiaries in Michigan, with beneficiaries receiving coverage starting in January 2020. On March 31, 2022, CCA announced completion of its acquisition of a 70% stake in Reliance. After the acquisition, CCA identified concerns regarding certain marketing-related outreach and payments Reliance agents had made to personnel at physician practices. In particular, CCA disclosed two schemes. First, from April 12, 2019, through December 22, 2020, Reliance provided cash payments to healthcare professionals and administrative staff in physician practices, in exchange for providing Reliance with the contact information for patients who had agreed, through executing so-called “permission to contact” cards, to be contacted by Reliance regarding its MA plan offerings. Second, in November 2019, prior to Reliance’s MA plan becoming active, Reliance paid each of four physicians and physician practices $2,500, which Reliance characterized as advances on “coordination of care” services to be provided by the physicians to beneficiaries when the MA plan became active in 2020. The United States alleges these payments were intended to induce the referral, recommendation, or arrangement of enrollment of Medicare beneficiaries in Reliance’s MA plan. Such payments, the United States alleges, were impermissible kickbacks in violation of the False Claims Act. The settlement announced today resolves these claims. CCA voluntarily self-disclosed this conduct to the United States and received credit for its cooperation. In addition, CCA took remedial measures, including terminating the employees directly involved with the decision to offer the payments described above, and providing the United States with a detailed written statement describing its investigation, along with other supplemental information to assist the United States in its investigation. “Our office encourages companies and individuals to make timely self-disclosures and take remedial measures to mitigate the harm from fraud that they discover,” said U.S. Attorney Ison. “While we remain steadfast in using the False Claims Act to address the use of prohibited payments to induce federal healthcare business, our office is prepared to give credit, where justified, to those that save the government time and resources by disclosing fraud.” Ison was joined in the announcement by Special Agent in Charge Mario Pinto, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "Paying kickbacks in exchange for patient referrals can drive up costs and lead to unnecessary medical services," said Mario M. Pinto, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). "This settlement highlights the value of HHS-OIG’s Self-Disclosure Program, which allows providers to report potential fraud directly to HHS-OIG and mitigate the costs and disruptions often associated with a government-directed investigation." The United States Attorney’s Office encourages anyone with information involving waste, fraud, and abuse in federal healthcare or other programs, to please report the illegal conduct, by contacting: HHS-OIG Hotline: 1-800-HHS-TIPS (1-800-447-8477) or https://tips.oig.hhs.gov To file a voluntary self-disclosure, please access the link below: https://oig.hhs.gov/compliance/self-disclosure-info/self-disclosure-protocol/ The civil investigation was handled by Assistant U.S. Attorney Jonny Zajac of the U.S. Attorney’s Office for the Eastern District of Michigan, with assistance from HHS-OIG. The claims resolved by the settlement are allegations only; there has been no determination or admission of liability.


title: Pharmacist guilty in $110 million dollar kickback conspiracy

component: USAO - Texas, Southern

body_text: McALLEN, Texas – A 55-year-old McAllen man has pleaded guilty to conspiring to pay kickbacks in exchange for prescription referrals, announced U.S. Attorney Alamdar S. Hamdani. John Ageudo Rodriguez, a licensed pharmacist, owned and operated a pharmacy in Pharr called Pharr Family Pharmacy. Rodriguez admitted he paid kickbacks in excess of $24 million to various marketers. The marketers had relationships with physicians and clinics and could cause prescriptions for expensive compound drugs to be referred to Rodriguez’s pharmacy. During the time of the conspiracy, from 2014 to 2016, Rodriguez’s pharmacy billed more than $110 million to various federal health care benefit programs for compound drugs. Rodriguez’s guilty plea follows guilty pleas of numerous other marketers involved in the prescription drug kickback scheme. Chief U.S. District Judge Randy Crane accepted the plea and set sentencing for March 25. At that time, Rodriguez faces up to five in federal prison as well as a possible $250,000 maximum fine. Rodriguez was permitted to remain on bond pending that hearing. The U.S. Postal Service – Office of Inspector General (OIG), Department of Labor – OIG, FBI, Department of Defense – Defense Criminal Investigative Service, Department of Veteran Affairs – OIG, Department of Health and Human Services - OIG and Texas Health and Human Services - OIG conducted the investigation. Assistant U.S. Attorney Andrew Swartz is prosecuting the case.