title: Man Indicted for Impersonating a U.S. Marshal and  Fraudulently Obtaining $39,000

component: USAO - Washington, Eastern

body_text: Yakima, Washington - On February 7,2024, a federal grand jury for the Eastern District of Washington returned an indictment charging Charmmorro Vijay Strothers with one count of Wire Fraud and one count of False Personation of an Officer or Employee of the United States. The indictment alleged that on August 13, 2023, Strothers rented a car at the Seattle-Tacoma International Airport and drove to Yakima, Washington. Two days later, on August 15, Strothers’ co-schemer called the victim, told her she was speaking with law enforcement, and that she had an active warrant for her arrest. The co-schemer then told the victim that to avoid arrest, she needed to drive to Egley’s Bail Bonds in Yakima and pay a bond of $14,000. The co-schemer remained on the phone with the victim, while she withdrew $14,000 from her bank account and traveled to a parking lot across from Egley’s Bail Bonds. When the victim arrived, Strothers allegedly approached, collected the cash, and gave the victim a handwritten receipt indicating it was from Egley’s Bail Bonds and listing a fraudulent case number. A short time later, the co-schemer called the victim a second time and told her a felony warrant was issued for her arrest. Again, the victim was told, to avoid arrest, she needed to drive to the parking lot near Egley’s Bail Bonds and pay a bond of $25,000. When the victim again arrived, Strothers collected the additional $25,000 payment. Strothers falsely told the victim he could not provide identification information, such as a badge number, because he was United States Marshal. “Impersonating a law enforcement officer and using the threat of arrest to commit fraud is an affront to our justice system and the men and women in law enforcement who work to keep our communities safe,” said United States Attorney Vanessa R. Waldref. “My office is committed to stopping all fraudsters, no matter the shape or scope of their schemes.” This case is being investigated by the United States Secret Service. Assistant United States Attorney Courtney Pratten is prosecuting this case on behalf of the United States. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Case: 1:24-cr-02006-SAB


title: Professional Money Launderer Sentenced to 40 Months in Prison for Transmitting $42 Million

component: USAO - California, Southern

number: CAS24-0216-Vazquez Padilla

body_text: SAN DIEGO –Jesus Vazquez Padilla of Tijuana was sentenced in federal court today to 40 months in custody for the unlicensed transmission of more than $42 million of illicit proceeds derived from the sale of drugs across the United States. According to court records, between January 4, 2016 and May 24, 2019, Vazquez Padilla led the operation of an illegal unlicensed money transmission business by using 22 shell corporations and 85 corporate bank accounts at various U.S. banks to launder drug sale proceeds. Using the corporate bank accounts, Vazquez Padilla and his co-conspirators offered money transmitting services to the public for a fee by performing tasks that included: (1) depositing cash at financial institutions throughout the United States; (2) transferring money by wire, checks, and inter-bank transfers, and (3) transferring money to Mexico on behalf of third parties. “The complexity of this money laundering operation was remarkable but as it unraveled so did the string of drug proceeds into the coffers of the cartels,” said U.S. Attorney Tara McGrath. “The United States will prosecute not only the drug traffickers, but also the facilitators who cannot out-maneuver justice.” “Mr. Vasquez Padilla knowingly and willingly subverted laws that protect our financial institutions from becoming unwitting pawns in funding transnational crime and terrorism,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Furthermore, by moving over $42 million in drug money, Mr. Vasquez Padilla and his co-conspirators’ put our sons and daughters at risk of becoming statistics in the drug crisis we face as a country. IRS Criminal Investigation is committed to following the money to bring criminals like Mr. Vasquez Padilla to justice.” In total, Vazquez Padilla’s business deposited $42,276,668 into the U.S. financial system. Of those deposits, approximately 95 percent of those funds were transferred to third party bank accounts in Mexico. The remaining 5 percent constituted the business’ fee for transmitting the funds. Under U.S. law, a money transmission business must register with the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury; file Currency Transaction Reports and Suspicious Activity Reports; and maintain an effective anti-money laundering compliance program. Vazquez Padilla did not comply with any of these requirements. On December 5, 2022, Vazquez-Padilla’s co-conspirator, Jose Gonzalez, was sentenced to 30 months’ custody for operating an unlicensed money transmission business and for assisting in the preparation of false tax returns related to the conspiracy. Gonzalez helped Vazquez Padilla open approximately 11 shell corporations and then, to create a veneer of legitimacy, Gonzalez filed federal tax returns on behalf of 10 of the shell corporations in tax years 2016 and 2017. In doing so, Gonzalez invented $19,615,192 in false and fictitious deductions so the shell corporations would not owe taxes. On December 18, 2023, another co-conspirator, Juan Medina, was sentenced to 12 months and one day in custody for operating an unlicensed money transmission business. Despite knowing the laundered money represented illegal drug proceeds, Medina helped Vazquez Padilla open bank accounts for the shell corporations to enable the money laundering. Vazquez Padilla’s sister and co-conspirator, Monica Vazquez, remains at large. Assistant U.S. Attorneys Christopher Beeler and Carl Brooker of the Southern District of California are prosecuting the case. DEFENDANT Case Number 22-CR-1551-RBM Jesus Vazquez Padilla Age: 47 Tijuana, Mexico DEFENDANT Case Number 22-CR-1472-W Jose Gonzalez Age: 52 San Diego, California DEFENDANT Case Number 22-CR-1473-RBM Juan Medina Age: 42 San Diego, California SUMMARY OF CHARGES Conspiracy to Operate an Unlicensed Money Transmission Business – Title 18, U.S.C., Sections 371, 1960 Maximum penalty: Five years in prison, $250,000 fine; forfeiture and restitution AGENCY Internal Revenue Service Criminal Investigation


title: Springfield, Illinois, Man Sentenced to Twenty Years for Drug Trafficking

component: Federal Bureau of Investigation (FBI)

body_text: SPRINGFIELD, Ill. – A Springfield, Illinois, man, Denziel Witherspoon, 32, was sentenced on February 15, 2024, by Senior U.S. District Judge Sue Myerscough to twenty years in prison to be followed by ten years of supervised release, for his role in a wide-spread drug conspiracy lasting from approximately May of 2020 through November of 2020. At the sentencing hearing, Witherspoon was held accountable for 72,000 grams of methamphetamine, 12,000 grams of heroin, 6,000 grams of fentanyl, and 5,129.1 grams of marijuana. During the hearing, Judge Myerscough noted that the amount of drugs Witherspoon was responsible for was the most she had seen during her judicial career. Co-defendants in the case have received the following sentences James Cooper, 180 months; Isadore Montgomery, 120 months; Rashaud Brown, 84 months; Paul Davis, 40 months; and Taylor Cockrell, 36 months. Charges remain pending against Derrick Bailey, Lavar Maney, Dorothy Jackson, Christopher Wallace, Haley Riley, Haylee Vaughn, and Shelton Witherspoon. Members of the public are reminded that an indictment is merely an accusation and defendants are presumed innocent unless proven guilty. Witherspoon was indicted on December 15, 2020, and pleaded guilty on February 9, 2023. He has remained in the custody of the United States Marshal since his arrest. The statutory penalties for the most serious charge Witherspoon was convicted of include, 15 years to life imprisonment, up to a $20,000,000 fine, and up to a life term of supervised release. This case was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation, Springfield Field Office, Illinois State Police, and Springfield Police Department Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution. The case against Witherspoon was part of an investigation of the Springfield based Boss Playas street gang and was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Peoria Man Pleads Guilty to Conspiring to Commit Bank Fraud and Money Laundering

body_text: PEORIA, Ill. – A Peoria, Illinois man, Richard Weiss, 62, of the 1500 block of North Knoxville Avenue, pleaded guilty today to one count of bank fraud and one count of conspiracy to commit money laundering. Sentencing for Weiss will be scheduled following the conclusion of proceedings against a co-conspirator. At the hearing before U.S. Magistrate Judge Jonathan E. Hawley, Weiss admitted that he conspired with another federal defendant, Chad D. Campen, who is separately charged with multiple felony offenses, to create false and fraudulent documents. Weiss admitted that he created, at Campen’s direction, false bank statements, tax returns, and other documents for the express purpose of deceiving banks and other third parties. In Court, the government stated Weiss had gone into business with Campen and allowed Campen to corrupt him into creating false documents, artificially inflating Campen’s apparent wealth and success. This included Weiss altering bank statements for Campen to make it appear that the account held approximately $200,000 more than it contained. Weiss’ scheme with Campen began in or around August 2015, continuing to about January 2022, during which Weiss and Campen knowingly engaged in a scheme to defraud several financial institutions, including Community State Bank, headquartered in Galva, Illinois, with branches and offices throughout Central Illinois. Weiss faces statutory penalties of up to 30 years imprisonment, $250,000 in fines and 5 years of supervised release on the bank fraud charge, and up to 20 years imprisonment, up to $500,000 in fines or twice the value of the property involved in the transactions and up to 5 years of supervised release on the money laundering charge. The federal trial for Campen is scheduled to begin on April 8, 2024. Members of the public are reminded that the indictment against Campen is merely an accusation; Campen is presumed innocent unless proven guilty. Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office, and the Internal Revenue Service. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the prosecution.


title: FACT SHEET: Disruptive Technology Strike Force Efforts in First Year to Prevent Sensitive Technology from Being Acquired by Authoritarian Regimes and Hostile Nation-States

component: National Security Division (NSD)

body_text: One year ago, on February 16, 2023, the Departments of Justice and Commerce, alongside their partners at the Federal Bureau of Investigation and Homeland Security Investigations, launched the Disruptive Technology Strike Force to fiercely protect advanced technology from being unlawfully acquired by foreign adversaries. Together, the agencies that comprise the Strike Force have taken an all-tools approach to aggressively pursue enforcement actions against illegal procurement networks and prevent nation-state actors from illicitly acquiring our most sensitive technology. In the twelve months since its formation, the Strike Force has successfully: Charged 14 cases involving alleged sanctions and export control violations, smuggling conspiracies, and other offenses related to the unlawful transfer of sensitive information, goods, and military-grade technology to Russia, China, or Iran. Seven cases charged defendants with sending or attempting to send semiconductors, microelectronics, or other technologies to Russia in violation of U.S. law. In January 2024, Brooklyn- and Los Angeles-based businessman Ilya Kahn was arrested for allegedly running a years-long scheme to unlawfully export hundreds of thousands of semiconductors to a sanctioned Russian business, using networks of businesses in the China and other transshipment points to evade export controls. In October 2023, Brooklyn-based Salimdzhon Nasriddinov, a dual Russian and Tajik national, and Canadian nationals Nikolay Goltsev and Kristina Puzyreva were arrested for running a scheme to source, purchase, and ship millions of dollars’ worth of dual-use electronics from U.S. manufacturers to sanctioned end-users in Russia, including components used in guided missile systems and unmanned aerial vehicles (UAVs). In October 2023, Brooklyn resident Nikolay Grigorev was arrested and Russian nationals Nikita Arkhipov and Artem Oloviannikov were charged with running a scheme to procure dual-use electronic components, including semiconductors, for companies affiliated with the Russian military. In September 2023, Russian citizen Maxim Marchenko was charged with using shell companies in Hong Kong to smuggle large quantities of microelectronics with military applications to end users in Russia. In August 2023, dual Russian-German citizen Arthur Petrov was arrested in Cyprus for his involvement in a scheme to procure U.S.-sourced microelectronics on behalf of a Russia-based supplier of critical electronic components for manufacturers supplying weaponry and other equipment to the Russian military. In May 2023, Greek national Nikolaos Bogonikolos was arrested for overseeing a years-long operation to smuggle into Russia U.S.-origin military and dual-use technology, including sensitive components used in quantum cryptography and nuclear weapons testing. In May 2023, Russian nationals Oleg Sergeyevich Patsulya and Vasilii Sergeyevich were arrested for conspiring to violate export control laws and commit money laundering to obtain airplane technology for Russian airlines. These cases were brought in partnership with Task Force KleptoCapture, an interagency law enforcement effort dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States, along with its allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Assistant Attorney General for National Security Matthew G. Olsen and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department, and five U.S. Attorneys from offices around the country, and officials from HSI and FBI announced the Strike Force’s first five cases in May 2023. Three cases charged former employees of U.S. companies with stealing confidential and proprietary information related to sensitive technology and attempting to take such information to China, and one case charged a defendant with seeking to obtain technology from U.S. manufacturers on behalf of Chinese end users. In February 2024, California resident Chenguang Gong was arrested for transferring more than 3,600 files containing proprietary information from his employer, including files with blueprints for sophisticated missile-detection technology. According to the complaint, Gong sought funding from the People’s Republic of China (PRC)-administered “Talent Programs,” which recruit individuals overseas with expertise sought after by the PRC, to develop similar technology. In May 2023, Liming Li of California was arrested for his alleged theft of sensitive technology related to advanced manufacturing software programs from his Southern-California-based employers and using that information to market his own competing company to businesses in China. In May 2023, California man and former Apple employee Weibao Wang was charged in connection with a scheme to steal Apple source code and other proprietary information related to autonomous systems. Allegedly, he left Apple to work as an engineer for a U.S.-based subsidiary of a China-based company to work on the development of self-driving cars, and, following a search of his residence, Wang left the country for China. In December 2023, Belgian national Hans Maria De Geetere was charged and arrested in Belgium for crimes related to a years-long scheme to export accelerometers used in aerospace and military systems from the United States to end users in China. Three cases charged individuals with seeking to procure sensitive U.S. technology on behalf of the government of Iran or Iranian end users . In February 2024, Iranian national Abolfazi Bazzazi and his son Mohammad Resa Bazzazi were charged with violating U.S. sanctions by procuring for the Government of Iran and other Iranian ends users goods and technology from U.S. companies that supply the military, aerospace, and firefighting industries. In January 2023, four Chinese nationals, Baoxia Liu, You Wa Yung, Yongxin Li, and Yanlai Zhong, were charged with smuggling U.S.-origin items used in the production of UAVs and ballistic missile systems through Chinese front companies to Iranian entities with ties to the Islamic Revolutionary Guard Corps and Ministry of Defense. In May 2023, Chinese national Xiangjiang Qiao was charged with multiple offenses related to a scheme to use a sanctioned Chinese company to provide high-tech materials used in the production of weapons of mass destruction to Iran, in exchange for payments made through the U.S. financial system. Secured the guilty plea of a defendant charged for her role in a multimillion-dollar scheme to send electronic components used in UAVs and guided missile systems and other weapons to sanctioned entities in Russia. In February 2024, Canadian national Kristina Puzyreva, one of three defendants charged in the case, pleaded guilty to money laundering conspiracy as part of a sophisticated sanctions and export control scheme involving two Brooklyn-based companies. Issued Temporary Denial Orders against 29 entities, including airlines, freight forwarders, defense companies, and others to cut off their access to controlled U.S. items. Contributed to numerous parties being placed on Commerce’s Entity List and Treasury’s Specially Designated Nationals and Blocked Persons List. Forged international partnerships committed to preventing critical technology from being siphoned off by foreign adversaries. Assistant Attorney General Matthew Olsen and Assistant Secretary for Export Enforcement Matthew Axelrod traveled to Kyiv in November 2023, following prior visits by the Attorney General to Ukraine, to reaffirm the Strike Force’s close partnership with the Ukrainian Prosecutor General and commitment to curbing the illegal flow of advanced technology to Russia. Following the Camp David Leaders’ Summit with President Biden and the leaders of Japan and Korea, DOJ and Commerce took steps to establish a Disruptive Technology Protection Network with South Korea and Japan to expand collaboration on technology protection measures, including expanding information-sharing and the exchange of best practices across the three countries’ enforcement agencies. As part of the Munich Security Conference, Assistant Attorney General Matthew Olsen and Assistant Secretary Matthew Axelrod participated in a panel discussion on safeguarding disruptive technology in a new era of economic statecraft. During a speech in the United Kingdom, where she announced the creation of the Strike Force in February 2023, Deputy Attorney General Lisa Monaco delivered remarks about the national security risks posed by artificial intelligence and why it is a top enforcement priority for the Strike Force. Assistant Attorney General Matthew Olsen delivered remarks and participated in a roundtable discussion hosted by the American Academy at the U.S. embassy in Berlin, Germany. Throughout the visit, AAG Olsen reaffirmed the Department’s close partnership with foreign counterparts to stop the flow of sensitive technology to foreign adversaries. Assistant Secretary of Commerce for Export Enforcement Matthew Axelrod delivered remarks on international partnerships, with a focus on the Strike Force, at the Federal Office for Economic Affairs and Export Control-Bureau of Industry and Security Export Control Forum in Frankfurt, Germany. Assistant Attorney General for National Security Matthew G. Olsen and Assistant Secretary for Export Enforcement Matthew S. Axelrod of the Commerce Department tour the Kyiv Scientific Research Institute of Forensic Expertise, which houses drones, electronic components, and other devices used by Russia and found on the battlefields in Ukraine. The two traveled to Kyiv, Ukraine from Oct. 30 – Nov. 1, 2023, to meet with counterparts about stopping the flow of sensitive technology to Russia. Fostered partnerships with the private sector, working directly with companies involved in the manufacture, sale, and shipment of sensitive export-controlled items. Hosted industry outreach events in Boston, Massachusetts; Houston, Texas; and Phoenix , Arizona to educate industry on the Strike Force’s work to stem the flow of sensitive technology to our adversaries, recent corporate enforcement initiatives, and tips and best practices for working with investigators on issues related to export compliance, cybersecurity, and protecting intellectual property. Convened roundtable discussions with compliance officials and technical experts at multiple cutting-edge tech companies, research institutions, and defense contractors. Toured the largest and third-largest commercial ports in the United States More than 200 people from across the country gathered in Phoenix for a two-day summit to mark the Strike Force’s one-year anniversary. Here, AAG Olsen, Assistant Secretary Axelrod, and the leaders of eight U.S. Attorney’s Offices stand with a delegation of Ukrainian officials who spoke at the summit. Added new interagency partners to the effort and enforcement teams to the Strike Force. To strengthen efforts to protect defense industry technology, the Strike Force added the Defense Criminal Investigative Service as a formal Strike Force partner. To strategically align Strike Force presence with the location of critical technology-related industries throughout the United States, the Strike Force added enforcement teams in the Eastern District of North Carolina, the Western District of Texas, and the Southern District of Georgia.


title: Two Former U.S. Marines and Nurse Practitioner Sentenced in $65 Million TRICARE Fraud

body_text: SAN DIEGO – Three members of a massive conspiracy to bilk the military’s healthcare program known as TRICARE out of more than $65 million have been sentenced in federal court. Former U.S. Marines, Daniel Castro and Jeremy Syto, were sentenced to 21 months and 15 months, respectively; Nurse Practitioner Candace Craven was sentenced to serve three months in home confinement. Castro and Syto recruited fellow Marines to receive expensive compounded drugs; Craven and others wrote bogus prescriptions and filled out fraudulent paperwork to process the insurance reimbursements. All told, tens of millions of dollars in false claims were submitted; everyone got kickbacks. All of the defendants were working for Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, who quarterbacked the scheme. Two weeks ago, Jimmy Collins received a 10-year prison sentence; Ashley Collins was sentenced to 18 months in home confinement. To account for all the fraud, the couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE. According to plea agreements, the Marines who Castro and Syto recruited agreed to receive the pricey compounded medications in return for a monthly kickback of approximately $300. For young Marines-turned-straw-beneficiaries, this money significantly augmented their monthly paycheck. One defendant noted “it took very little work to sign people up to receive free money.” For recruiting bogus patients, Castro and Syto were paid a commission—somewhere between 3 to7 percent of the total TRICARE reimbursement paid to the pharmacy for the drugs sent to their recruits. By the time this fraud scheme was in full swing, the average cost for these compounded drugs was more than $13,000 for a 30-day supply, peaking at around $25,000 for certain individual drugs. Over the course of the conspiracy, the illegal kickbacks amounted to at least $1,013,450.36 for Castro and $264,000 for Syto. In total, TRICARE paid at least $11,949,710.15 in insurance reimbursements for compounded medications prescribed to straw beneficiaries directly recruited by Castro. During the same period, TRICARE paid at least $8,620,215.83 for compounded medications prescribed to straw beneficiaries directly recruited by Syto. Nurse Practitioner Craven admitted that her primary role was to write and process fraudulent prescriptions and fill out other fraudulent paperwork for compounded drugs for the straw beneficiaries. According to the pleadings, the sharp increase in the number of bogus prescriptions for compounded drugs was the result of multiple fraud schemes, including this one, that popped up around the country. As a result, the TRICARE program faced a $2 billion explosion in liability for compounded prescription drugs. “This outrageous scheme undermined health services for those who risk their lives to serve our country,” said U.S. Attorney Tara McGrath. “Our military members and taxpayers deserve so much better. This case reflects our dedication to the well-being of our armed forces and our steadfast protection of the U.S. taxpayer.” During the course of the investigation, authorities seized numerous items and properties purchased by the Collinses and others with the proceeds of the fraud: an 82-foot yacht; multiple luxury vehicles, including two Aston Martins; a multimillion-dollar investment annuity; gold and silver bars; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate. This case was prosecuted by Assistant U.S. Attorney Mark W. Pletcher. DEFENDANTS Case Number: 18-CR-0432-JLS Daniel Castro Age: 36 Oak Lawn, IL Jeremy Syto Age: 30 Chula Vista, CA DEFENDANTS Case Number: 18-CR-4209-JLS Candace Michelle Craven Age: 57 Apison, TN SUMMARY OF CHARGES Daniel Castro: Conspiracy, in violation of 18 U.S.C. § 1349, 1347 Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater An order of restitution requiring defendant to repay at least $11,949,710.15 to DHA/TRICARE Jeremy Syto: Conspiracy, in violation of 18 U.S.C. § 1349, 1347 Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater An order of restitution requiring defendant to repay at least $8,620,215.83 to DHA/TRICARE Candace Craven: Conspiracy, in violation of 18 U.S.C. § 1349, 1347 Maximum penalty: Ten years in prison and $250,000 fine or double loss amount, whichever is greater An order of restitution requiring defendant to repay at least $32,750.00 to DHA/TRICARE INVESTIGATING AGENCIES Defense Criminal Investigative Service Naval Criminal Investigative Service IRS Criminal Investigation Division, Gulfport, MS Federal Bureau of Investigation - Jackson, MS Field Office


title: Ashland Man Sentenced on Child Pornography Charges

component: USAO - Nebraska

body_text: United States Attorney Susan Lehr announced that Conner Chapman, 21, of Ashland, Nebraska, was sentenced February 16, 2024 in federal court in Omaha, Nebraska, for receiving and distributing child pornography. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Chapman to 120 months’ imprisonment. There is no parole in the federal system. After Chapman’s release from prison, he will begin a 5-year term of supervised release and register as a sex offender. In November of 2021, Nebraska’s Internet Crimes Against Children investigation team received a Cypertip from the National Center for Missing and Exploited Children (NCMEC) reporting 5 video files were uploaded by a KIK user that contained child pornography. The IP address used for uploading of the files was identified as belonging to Chapman’s residence. In September, 2022, a search warrant was executed on Chapman’s residence and a phone belonging to Chapman was seized. Chapman was interviewed and eventually admitted to viewing child pornography online. Chapman’s phone was forensically searched and 216 image files and 7 video files of child pornography were found. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 . This case was investigated by the Nebraska State Patrol.


title: Oxford Woman Sentenced for Conspiracy to Distribute Methamphetamine and Fentanyl

body_text: United States Attorney Susan Lehr announced that Samantha Miller, 31, of Oxford, Nebraska, was sentenced February 16, 2024 in federal court in Lincoln, Nebraska, for conspiracy to distribute methamphetamine and fentanyl. Senior United States District Court Judge John M. Gerrard sentenced Miller to 60 months’ imprisonment. There is no parole in the federal system. After Miller’s release from prison, she will begin a 5-year term of supervised release. From July 2021 to July 2022, Miller and others worked together to sell methamphetamine and fentanyl in and around Kearney, Nebraska. Miller was identified after a confidential informant purchased meth from a different drug dealer, who told the confidential informant he had to pick up the meth from a different location. Law enforcement followed that drug dealer to Miller’s residence, where the drug dealer obtained the meth and then provided to the confidential informant. During the course of the investigation, law enforcement learned that Miller was working with others to deal meth and fentanyl and sending money from drug proceeds back to Mexico. This case was investigated by the Nebraska State Patrol and FBI.


title: Columbus man sentenced to more than 14 years in prison for committing 6 robberies

component: USAO - Ohio, Southern

body_text: COLUMBUS, Ohio – A Columbus man was sentenced in federal court today to 171 months in prison for committing six robberies in Columbus in September and October 2020. Ronald Lee Jacobs, 46, was convicted following a jury trial in August 2023 of six counts of robbery and one count of brandishing a firearm during a crime of violence. At the time of the robberies, Jacobs was under supervision with the State of Ohio after serving a nine-year sentence for aggravated robbery with a firearm specification. According to court documents and trial testimony in his current case, Jacobs committed at least six recent robberies, including: Hampton Inn on South Hamilton Road on Sept. 5, 2020, Wing Snob on North High Street on Sept. 12, 2020, United Dairy Farmers on North High Street on Sept. 24, 2020, Shell Gas Station on South Hamilton Road on Sept. 30, 2020, Wing Snob on North High Street on Oct. 8, 2020, and Walgreens on East Livingston Avenue on Oct. 12, 2020. During the robberies, Jacobs typically wore either an inside-out gray sweatshirt or a dark sweatshirt, dark pants and used a blue bandana. Jacobs was employed at a glue factory and, during multiple robberies, had visible glue splatters on his clothing. He called off work for one robbery and left during his shift to commit another one of the robberies. In jail calls, Jacobs discussed the firearms he used and said he committed the robberies because he was “broke” and needed to pay child support. “There’s no excuse for committing dangerous crimes,” said U.S. Attorney Kenneth L. Parker. “There are numerous resources available to assist individuals who are returning to our communities from periods of incarceration. In this case, we are grateful that no one was seriously harmed or killed by Jacobs’s actions and his sentence reflects the fact that bad choices often have serious consequences.” Jacobs was charged by criminal complaint and arrested in November 2020. In March 2021, a federal grand jury returned an indictment against Jacobs and that indictment was superseded in September 2021. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. Assistant United States Attorneys Elizabeth A. Geraghty and S. Courter Shimeall are representing the United States in this case. # # #


title: Paycheck Protection Program Fraud Defendants Convicted Following Jury Trial

component: USAO - Georgia, Northern

body_text: ATLANTA – Teldrin Foster and Carla Jackson were found guilty by a jury for their roles in schemes to steal Paycheck Protection Program (“PPP”) funds during the COVID-19 pandemic. Foster was charged with 14 counts of wire fraud, six counts of bank fraud, 14 counts of conspiracy to commit wire and bank fraud, six counts of making a false statement to a federally insured financial institution, and one count of money laundering. Jackson was charged with two counts of money laundering. After a seven-day trial, both defendants were convicted on all counts. Foster and Jackson were charged in a 16-defendant indictment containing 63 felony counts, alleging numerous conspiracies among defendants. This indictment is part of a wide-ranging investigation into PPP fund theft that has resulted in the convictions of 23 of 24 defendants charged during the investigation. A final defendant’s case remains pending. “These defendants brazenly stole pandemic relief funds intended for struggling small businesses during the COVID-19 pandemic,” said United States Attorney Ryan K Buchanan. “This investigation has produced charges against 24 defendants and secured guilty verdicts by a jury of the only two defendants to proceed to trial thus far. This successful prosecution is the culmination of a comprehensive collaboration between multiple federal agencies and our office that demonstrates our collective commitment to comprehensively investigating and prosecuting criminals who stole pandemic relief funds.” “Foster and Jackson’s actions affected every tax paying citizen in this country and took away from government funds that were intended to provide relief to small businesses and employees who desperately needed it during the pandemic,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “These convictions reiterate the message that the FBI and our federal partners remain vigilant prosecuting people who misuse government funds for their own personal greed.” “IRS Criminal Investigation special agents and our law enforcement partners will continue investigating and bring to justice those who committed fraud on the Paycheck Protection Program,” said Demetrius Hardeman, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Atlanta Field Office. According to U.S. Attorney Buchanan, a second superseding indictment, and other information presented in court: from April 2020 through August 2020, Teldrin Foster worked with co-defendant Darrell Thomas and others to fraudulently obtain at least 14 fraudulent loans. Each of the businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11.1 million. The loan applications certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the applications and in all supporting documents and forms were true and accurate in all material respects. The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. But none of the businesses had employees or payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Indeed, some of the supporting documents the businesses submitted were substantively identical, including identical Form 941s, identical bank statements, and W2 payroll spreadsheets where the reported figures were identical and only the purported employee names changed. To conceal and launder the stolen funds, PPP funds were sometimes disguised by the defendants. Jackson acted as a money launderer, receiving more than $300,000 of the stolen PPP funds into her business’s bank account. The funds were transferred through two transactions, a check in the amount of $155,252.50 and a wire transfer in the amount of $179,985.72. The check falsely claimed that the funds were being provided to Jackson as consulting fees and daily business management, and the wire transfer paperwork falsely stated that the funds were for payroll services. In reality, Jackson was just trying to prevent the detection of funds obtained from the PPP program and seizure of those proceeds by federal law enforcement. This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General. Assistant U.S. Attorneys Tal Chaiken, Samir Kaushal, and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Level 1 sex offender pleads guilty to child pornography charge

component: USAO - New York, Western

body_text: BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Zachary Feeterman, 29, of Tonawanda, NY, who was convicted of possession of child pornography was sentenced to serve 10 years imprisonment and 30 years supervised release by U.S. District Judge Lawrence J. Vilardo. Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in March 2016, Feeterman was convicted of attempted possession of a sexual performance by a child less than 16 years of age in New York State Court. On August 8, 2019, Erie County Probation Officers conducted a home inspection at Feeterman’s residence and found an unauthorized cell phone in his possession. A forensic analysis recovered approximately 375 images of child pornography on the cell phone, and 4,670 images and videos of child pornography in a cloud storage account. Some images depicted prepubescent minors as well as violence against children. The sentencing is the result of an investigation by members the Erie County Probation Department, under the direction of Commissioner Michelle Olszowy; the FBI's Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia; and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.


title: Former Springville teacher pleads guilty to child pornography charge

body_text: BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Frank E. Noeson III, 46, of Holland, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to receipt of child pornography, which carries a mandatory minimum penalty of five years in prison, a maximum of 20 years in prison, and a $250,000 fine. Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that Noeson, who was then a 5th grade teacher at a local elementary school, engaged in sexual communications with a minor female (Victim) using Snapchat. The Victim was 16 years old when the communications began. During the communications, Noeson persuaded the Victim to create sexually explicit images and videos and send them to him. Noeson also engaged in sexual communications with another minor female victim, who was 15 years-old, using Snapchat. During these communications, the victim sent numerous images and videos of child pornography. The plea is the result of an investigation by the Federal Bureau of Investigation Buffalo Office Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the FBI Miami Field Office, under the direction of Special Agent-in-Charge Jeffrey Veltri, and the Tonawanda Police Department, under the direction of Chief James Stauffiger. Sentencing will be scheduled at a later date. # # # #


title: Metro-Atlanta Man Charged with Fraud and Money Laundering of COVID-19 Unemployment Funds and IRS Tax Refunds

body_text: ATLANTA - Nnamdi Iheanacho has been indicted on federal charges of wire fraud, aggravated identity theft, money laundering conspiracy, and concealment money laundering for stealing COVID-19 relief funds and federal tax refunds based on fraud and identity theft. “Iheanacho allegedly defrauded government funds during the COVID-19 pandemic involving state unemployment insurance funds and tax refunds from the Internal Revenue Service,” said U.S. Attorney Ryan K. Buchanan. “COVID-19 pandemic funds provided vital aid for citizens who qualified for them. Congress did not intend for individuals to illegally profit from the CARES Act program. The indictment alleges that Iheanacho compounded his fraudulent conduct by stealing the identities of others to perpetrate his schemes, including filing fraudulent tax returns with the Internal Revenue Service.” “An important part of the mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud involving unemployment insurance programs. We will continue to work with our law enforcement partners to aggressively investigate these types of allegations,” said Mathew Broadhurst, Special Agent in Charge, U.S. Department of Labor, Office of Inspector General, Southeast Region. “Iheanacho’s alleged criminal acts deprived the government of funding for its programs and possibly created financial instability for his victims of identity theft,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. "IRS Criminal Investigation special agents and our law enforcement partners are diligently working to find those who show so much disregard to others in their pursuit of greed.” “This defendant is charged with taking advantage of our nation during an unprecedented time of a pandemic and stealing money intended to help others who were struggling,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We are proud to work with our partner agencies to investigate and stamp out these schemes.” According to U.S. Attorney Buchanan, the charges, and other information presented in court: The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act provided emergency assistance for individuals, families, and businesses affected by the COVID-19 pandemic. The CARES Act created a new temporary federal program called Pandemic Unemployment Assistance that provided up to 39 weeks of unemployment benefits and funding to states for administration of the program. An individual receiving these benefits might also receive a $600 weekly benefit in federal funds under the Federal Pandemic Unemployment Compensation program if he or she was eligible for such compensation for the week claimed. To fraudulently take advantage of the $600 weekly federal benefit, Nnamdi Iheanacho, 38, of Dacula, Georgia, allegedly applied online for unemployment insurance benefits for numerous individuals using stolen personal identifying information. Simultaneously, Iheanacho allegedly filed federal income tax returns using stolen identity information. He then allegedly laundered the proceeds of his fraud schemes. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial. This case is being investigated by the Department of Labor, Office of Inspector General, Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Sarah E. Klapman is prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6280. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Florida Conspirators Sentenced to Nearly Five Years in Prison Each for Evading Over $42 Million in Duties When Illegally Importing and Selling Plywood

component: Energy and Natural Resources Division

body_text: A Florida husband and wife, Noel and Kelsy Hernandez Quintana were both sentenced yesterday to 57 months in prison for illegally importing and selling between $25 million and $65 million worth of plywood products in violation of the Lacey Act and customs laws. Their employee, Marta Angelbello, was also sentenced. In addition to their prison sentences, the Quintanas were ordered to pay, jointly and severally, $42,417,318.50 in forfeitures, as well as $1,630,324.46 in storage costs incurred by the government when the Quintanas declined to abandon illegal wood seized by the government, thus forcing the government to maintain the wood in storage pending resolution of the case. The Quintanas were also ordered to serve three years of supervised release following their prison sentences, during which time they are prohibited in engaging in businesses regarding importing or exporting in products specifically protected under the Lacey Act. Angelbello was sentenced to three years of probation to include 90 days in home detention and was ordered to pay a fine of $3,000. “Illegal timber trafficking has serious environmental effects. Also, accurate plant import declarations protect domestic producers from dumping by foreign countries and detect potential over-harvesting and trade in timber from high-risk sources,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This case clearly illustrates the ties between natural resource crime and customs laws, and is the result of excellent investigative work by customs officers, import specialists and Homeland Security Investigations.” “The enforcement of customs laws serves an integral part of U.S. foreign policy and trade policy,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “In this case, the defendants undermined U.S. policy by evading legally mandated customs duties on plywood manufactured in China using Russian timber. Moreover, by doing so, the defendants covered up their criminal scheme to violate federal environmental law, while also unjustly enriching themselves. This case shows the importance of prosecuting customs and environmental offenses.” “Homeland Security Investigations is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. Customs laws and undermine a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the Homeland Security (HSI) Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.” According to court filings, the Quintanas and Angelbello together engaged in a sophisticated scheme to evade antidumping and countervailing duties owed on hardwood plywood products made in China by falsely declaring the species, country of origin or country of harvest of the wood from which the plywood was made. At times they caused containers of plywood to be shipped from China to Malaysia or Sri Lanka, for example, where the wood was taken out of the original containers and put into a second set of containers to conceal the Chinese origin of the product. The Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and used these shell companies to import hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of law, including the Lacey Act and customs laws. When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of harvest. The Lacey Act makes it unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act. According to the Quintana’s October plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017. Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties. For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia and transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China. The Quintana also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports. Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro where they were the subject of extradition proceedings. The couple pleaded guilty to conspiring to import hardwood plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested. HSI investigated the case with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service. Attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case.


title: New Braunfels Business Owner Sentenced to Federal Prison for Tax Evasion

component: USAO - Texas, Western

body_text: SAN ANTONIO – A New Braunfels woman was sentenced in a federal court in San Antonio to 18 months in prison for failure to account for and pay over withholding taxes. According to court documents, Rachel Nicole Woolard, 50, owned and operated a healthcare staffing company called Reliance Therapy Staffing, LLC. From the first quarter of 2018 through the first quarter of 2020, she willfully failed to account for and pay over employment taxes for nine tax periods, resulting in a total tax loss of $924,752.76. At the sentence hearing, U.S. District Judge Xavier Rodriguez ordered Woolard to pay the full amount in restitution to the U.S. Treasury. “This defendant largely ignored the financial accountability that comes with owning and operating a business,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It is critical to understand, especially in the middle of tax season, your responsibility when it comes to paying taxes. If you choose to pocket taxes that you owe, our partners at IRS Criminal Investigation will uncover your fraud and we will hold you accountable with serious consequences.” "Woolard made a conscious decision to evade paying nearly $1 million in taxes, enabling her to live a more lavish lifestyle. She knowingly engaged in illegal activity and now she must pay the price," said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. "This sentencing, occurring during tax season, emphasizes the dedication of CI and the U.S. Attorney’s Office to ensuring tax criminals are held accountable for their actions.” IRS CI investigated the case. Assistant U.S. Attorney William Harris prosecuted the case. ###


title: Pearsall Felon Sentenced to Prison for Dealing Fentanyl and Possessing a Stolen Firearm

component: Drug Enforcement Administration (DEA)

body_text: SAN ANTONIO – A Pearsall man was sentenced in a federal court in San Antonio to 24 years in prison for one count of felon in possession of a firearm and one count of conspiracy to possess with intent to distribute fentanyl. According to court documents, Elberto Roy Trevino Jr. aka Lil Roy, 50, conspired with others to possess with intent to distribute fentanyl in July 2022. Specifically, on July 4, 2022, Trevino coordinated via text message to sell a substance to an individual. The individual believed they were purchasing cocaine from Trevino. Later that day, the individual was found deceased. From the scene, officers recovered loose powder and a rock-like substance that each tested positive for fentanyl, and another white powder that tested positive for cocaine. On the same day, two other individuals were found deceased inside their Pearsall residence. Officers removed a bag that contained .21 grams of white powdery substance that tested positive for fentanyl. On July 27, 2022, officers executed a search warrant at Trevino’s residence, recovering approximately 44.2 grams of 98% pure methamphetamine, 46.4 grams of a mixture of heroin and fentanyl, a bag containing miscellaneous ammunition, and a handgun that had been reported stolen out of San Antonio. Trevino pleaded guilty on Aug. 30, 2023 to one count of felon in possession of a firearm and one count of conspiracy to possess with intent to distribute fentanyl. At the sentence hearing, U.S. District Judge Xavier Rodriguez sentenced Trevino to 120 months in prison for the felon in possession of a firearm charge, and 292 months for the conspiracy charge. Both penalties will run concurrently. “Several people in the Pearsall community lost their lives over one Fourth of July weekend because of a single batch of fentanyl-laced cocaine,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “While the victims chose to engage in illicit drug use, had it not been for the miniscule amount of deadly fentanyl they ingested, they likely would still be alive today. This is a very dangerous poison that everyone must be cautious of, and, with the efforts of our partners, we will continue to disrupt the infiltration of fentanyl into our communities.” "This case demonstrates the ongoing fentanyl threat facing our country today and the complete disregard for human lives,” said Special Agent in Charge Daniel C. Comeaux for the Drug Enforcement Administration Houston Division. “A batch laced with fake fentanyl instantly claimed the lives of four people, three of whom Trevino was responsible for. We understand this sentence won't be a closure for the families forever grieving these tragic losses. Still, we want this sentence to be a clear reminder to those who are thinking about selling fake fentanyl to realize there will be grave consequences awaiting." The DEA, Pearsall Police Department and Bexar County Sheriff’s Office investigated the case. Assistant U.S. Attorney Amy Hail prosecuted the case. ###


title: U.S. Attorney Announces $25.5 Million Settlement With Durable Medical Equipment Supplier Lincare Inc. For Fraudulent Billing Practices

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York; Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”); Brian J. Solecki, the Acting Special Agent in Charge of the Northeast Field Office of the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”); Derek M. Holt, the Special Agent in Charge of the Office of Personnel Management, Office of the Inspector General (“OPM-OIG”); and Michael J. Waters, the Special Agent in Charge of the Eastern Field Office of the Amtrak Office of Inspector General (“Amtrak-OIG”), announced that the United States has settled a civil fraud lawsuit against LINCARE INC., a large durable medical equipment (“DME”) supplier with approximately 700 locations throughout the United States. The settlement resolves claims that LINCARE violated the False Claims Act by fraudulently continuing to bill federal health care programs for the rental of costly non-invasive ventilators (“NIVs”) when patients no longer needed or used the devices. The settlement also resolves claims that LINCARE violated the Anti-Kickback Statute by waiving coinsurance payments to induce certain Medicare and TRICARE beneficiaries to rent NIVs. Under the settlement, which was approved yesterday by U.S. District Judge Paul G. Gardephe, LINCARE agreed to pay a total sum of $25.5 million, of which $24,228,517.96 will be paid to the United States and the remainder will be paid to various states. As part of the settlement, LINCARE also made factual admissions regarding its conduct. LINCARE admitted that it received reimbursement from federal health care programs for some NIV rental claims that did not comply with all of those programs’ billing rules and guidance. LINCARE also admitted that in some instances, it continued to seek monthly payments when it was aware that patients were not using the devices. U.S. Attorney Damian Williams said: “When DME suppliers like Lincare knowingly seek federal funds for items that are not medically necessary and not being used, they threaten the sustainability and financial integrity of vital federal health care programs like Medicare and Medicaid. Companies will be held accountable for fraudulent billing practices that prioritize profits over legal obligations.” HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients. Our agency, working closely with our law enforcement partners, will continue to hold health care providers responsible for receiving improper payments from federal health care programs.” DCIS Acting Special Agent in Charge Brian J. Solecki said: “This settlement makes clear that firms will pay a price for attempting to defraud the government. We, along with our federal partners, are committed to protecting taxpayers from companies that engage in deceptive practices.” OPM-OIG Special Agent in Charge Derek M. Holt said: “I applaud the excellent work of our investigators and law enforcement partners on this case. We take all false claims seriously as the integrity of the federal health care programs relies on the submission of medically reasonable and necessary claims.” Amtrak-OIG Special Agent in Charge Michael J. Waters said: “The favorable outcome in this case is a testament to the professionalism and teamwork displayed by our agents, our fellow investigative agencies, and the U.S. Attorney’s Office. We are very proud of this well-coordinated joint effort.” As alleged in the Complaint filed in Manhattan federal court: NIVs are a type of respiratory equipment designed to deliver pressurized air into the lungs of patients with respiratory failure. Patients frequently rent NIVs for regular use in their homes. During the period of January 1, 2013, through February 29, 2020 (the “Relevant Period”), Medicare and other federal health care programs reimbursed DME suppliers like LINCARE as much as $1,400 per month for supplying NIV rentals to patients. When DME suppliers like LINCARE rent NIVs to federal health care program beneficiaries and seek reimbursement for such rentals, the DME suppliers must ensure that the NIVs continue to be used and that they remain medically reasonable and necessary during the rental period. For example, under Medicare, a DME supplier is required to monitor the extent to which the beneficiary is using the NIV at home and to maintain documentation to support that the device continues to be used and is medically reasonable and necessary. In addition, DME suppliers must discontinue billing federal health care programs when the NIV is no longer being used and is not medically reasonable and necessary. LINCARE often continued to submit monthly claims for payments to federal health care programs when the NIVs were no longer medically necessary or the beneficiary had stopped using the device. LINCARE frequently did not know, or have documentation to support, that a patient continued to use or need the NIV. LINCARE nonetheless continued to seek monthly payments from federal health care programs for these NIV rentals. LINCARE’s primary method to monitor patient usage of NIVs was by having their Respiratory Therapists (“RTs”) conduct home visits, during which RTs would evaluate the device’s settings, usage, and need for maintenance. As part of these “vent checks,” RTs were supposed to record the extent to which patients had been using the NIVs and confirm that they were using their devices as directed by their physicians. Under LINCARE’s own policy, home visits were supposed to occur at least every 60 days. However, LINCARE’s RTs frequently failed to comply with this policy; on tens of thousands of occasions during the Relevant Period, LINCARE failed to perform home visits for NIV patients as required by its policy. Further, when RTs did conduct vent checks, they often failed to record whether, and for how many hours, patients had used their NIVs. In some instances, LINCARE continued to seek monthly payments from federal health care programs when it was aware, through home visits and vent checks conducted by its RTs, that beneficiaries had stopped using their devices. LINCARE billed for NIVs in instances when the beneficiary had not used or had very rarely used the device for over a year. Finally, in violation of the Anti-Kickback Statute, LINCARE’s Regional Vice Presidents waived, either partially or in full, the coinsurance payment due from certain Medicare and TRICARE beneficiaries in an effort to persuade them to rent NIVs from LINCARE instead of another DME supplier. These coinsurance payment waivers were not based on an individualized assessment of the beneficiaries’ financial needs. As part of the settlement, LINCARE admitted and accepted responsibility for certain conduct alleged by the United States, including the following: In violation of LINCARE’s internal protocols, LINCARE’s center clinical staff frequently failed to visit NIV patients every 60 days to confirm that the patients were using their NIVs as directed by their physicians. Some centers lacked sufficient staff to adequately monitor patient progress and confirm that patients were using the devices as directed by their physicians. On many occasions, clinical staff did not perform home visits for NIV patients for several months. In addition to conducting patient visits, LINCARE had the ability to remotely monitor certain patients’ NIV usage for certain newer NIV models through online cloud-based platforms. However, LINCARE did not use these systems to confirm that those patients were using the devices as directed. LINCARE continued to seek monthly payments from federal health care programs for NIV rentals in many instances when its staff had not verified that patients were still using their NIVs or had not maintained documentation showing that the patient continued to use the devices. In some instances, LINCARE continued to seek monthly payments from federal health care programs when it was aware that patients were not using the devices. On certain occasions, LINCARE granted coinsurance payment waivers that were not based on the patient’s financial need in order to persuade patients to rent NIVs. As a result of the above-referenced conduct, LINCARE received reimbursements from federal health care programs for some NIV rental claims that did not comply with all of those programs’ billing rules and guidance. In connection with the filing of the lawsuit and settlement, the Government joined a private whistleblower lawsuit that had been filed under seal pursuant to the False Claims Act. * * * Mr. Williams thanked the Washington and Texas State Medicaid Fraud Control Units for their extensive collaboration in the investigation and resolution of this case, and also praised the outstanding investigative work of HHS-OIG, DCIS, OPM-OIG, and Amtrak-OIG. The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Charles S. Jacob, Ilan Stein, and Amanda Lee are in charge of the case.


title: Man Accused of Armed Robbery of Third Postal Worker

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – Two men already facing an indictment accusing them of robbing two mail carriers at gunpoint in 2022 have been accused of a third robbery. A superseding indictment in U.S. District Court in St. Louis Wednesday added charges against Roy Lee Jones, 21, and Xavier Sean Boyd, 20, of Jennings. The pair had been facing six felony counts: two counts of robbery, two counts of theft of a mail key and two counts of possession and brandishing a firearm in furtherance of a robbery. Wednesday’s indictment adds one count of each crime. The indictment accuses the men of robbing two U.S. Postal Service letter carriers of their “arrow keys,” which open certain U.S. Postal Service collection boxes, at gunpoint on June 9, 2022, and Boyd, acting with another, of a June 1 robbery. “Those who commit violent crimes against postal employees who provide a critical service to the public must be held accountable,” said Inspector in Charge Ruth Mendonça who leads the Chicago Division of the U.S. Postal Inspection Service, which includes the St. Louis Field Office. “This superseding indictment is a critical step toward ensuring that accountability.” Each robbery charge is punishable by up to 25 years in prison. The theft charges are punishable by up to 10 years in prison. The firearm charges carry a penalty of at least seven years, consecutive to all other charges. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The U.S. Postal Inspection Service and the St. Louis County Police investigated the case. Assistant U.S. Attorney Jason Dunkel is prosecuting the case.


title: Justice Department Sues Tennessee for Enforcing State Law that Discriminates Against People with HIV

component: Civil Rights Division

body_text: The Justice Department filed a lawsuit today against the State of Tennessee and the Tennessee Bureau of Investigation (TBI) for violating the Americans with Disabilities Act (ADA). The department previously notified Tennessee and the TBI that they violated the ADA by enforcing the state’s aggravated prostitution statute against people living with human immunodeficiency virus (HIV). That letter of findings detailed the minimum remedial measures necessary to address the discrimination. “The enforcement of state criminal laws that treat people differently based on HIV status alone and that are not based on actual risks of harm, discriminate against people living with HIV,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “People living with HIV should not be subjected to a different system of justice based on outdated science and misguided assumptions. This lawsuit reflects the Justice Department’s commitment to ensuring that people living with HIV are not targeted because of their disability.” The department’s investigation found that the state and TBI subject people living with HIV to harsher criminal penalties solely because of their HIV status, violating Title II of the ADA. Tennessee’s aggravated prostitution statute elevates what would otherwise be misdemeanor conduct to a felony because the individual has HIV, regardless of any actual risk of harm. A person convicted of aggravated prostitution faces three to 15 years in prison and a fine up to $10,000, while a person convicted of a misdemeanor charge based on the same conduct is subject to a penalty of no more than six months in prison and up to a $500 fine. Aggravated prostitution is also categorized as a “violent sexual offense” mandating registration by those convicted on the Tennessee Sex Offender Registry, in most cases for life. The state maintains the registry through the TBI. Individuals placed on the registry due to convictions for aggravated prostitution are restricted in where they may live, work and go in public, and have experienced increased homelessness and unemployment. These individuals also face public disclosure of information about their HIV status, which can lead to harassment and discrimination. For example, the complaint identifies one person who has struggled to find safe housing that complies with the registry’s requirements and has experienced periods of homelessness, has been denied employment because she is on the registry, and is prevented from spending time alone with her nephew because of her conviction. The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. For more information on the Civil Rights Division, please visit www.justice.gov/crt . For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov .


title: California Man Sentenced for Smuggling Fraudulent Cognitive Enhancement Drug Into the United States from China

component: USAO - Massachusetts

body_text: BOSTON – A California man was sentenced yesterday in federal court in Springfield, Mass. for conspiring to smuggle tianeptine, a highly-addictive drug that claims to enhance mood and cognitive functioning, into the United States from China. Ryan M. Stabile, 37, of Pasadena, Calif., was sentenced by U.S. District Court Judge Mark G. Mastroianni to two years in prison, to be followed by three years of supervised release. Stabile was also ordered to pay a forfeiture of $1,833,922. In September 2023, Stabile pleaded guilty to one count of conspiracy and two counts of introduction of misbranded drugs with intent to defraud and mislead. “Mr. Stabile knew how addicting and dangerous tianeptine was and yet it did not stop him from smuggling the illegal drug into the United States and selling it under false pretenses,” said Acting United States Attorney Joshua S. Levy. “He continued to profit off the addiction of others even after he was indicted.” “Misbranded and unapproved drugs that are smuggled from overseas can present a serious health risk to those who buy and use them. Tianeptine is an unsafe drug that is not approved for any use in the United States. All smuggled drugs carry additional risks of unknown ingredients and unknown manufacturing conditions,” Fernando McMillan, Special Agent in Charge of the United States Food and Drug Administration’s Office of Criminal Investigation. “We will continue to investigate and bring to justice those who attempt to traffic in these dangerous, misbranded, and unapproved drug products.” Stabile was the owner of Supplements for Work, a company which sold the misbranded drug tianeptine, commonly known as gas station heroin, online. Stabile, through his company, marketed tianeptine as a mood enhancer and claimed that it improved cognitive functioning and falsely represented that he was selling tianeptine for research purposes only, even though he sold tianeptine to individuals for personal use. Stabile smuggled tianeptine in multi-kilogram quantities from China into the United States, importing between 10-15 kilograms of tianeptine per month from a Chinese supplier. Once received, Stabile divided and repackaged the tianeptine and resold it on his websites in five-gram, 10-gram and 20-gram quantities for prices between $55 and $175. Stabile’s tianeptine sales averaged $250,000 per month and comprised 95 percent of his company’s profits. Additionally, following his indictment by a federal grand jury in November 2019, Stabile continued to sell tianeptine on the internet for several years while on pre-trial release, under a different company and website called Ultra Vulgar Festival Drip. In total, Stabile made at least $2.2 million in illegal tianeptine sales. Acting U.S. Attorney Levy and FDA SAC McMillan made the announcement. Assistant U.S. Attorney Deepika Bains Shukla, Chief of the Springfield Branch Office prosecuted the case.


title: Owner of Suburban Chicago Insurance Agency Sentenced to Seven Years in Prison for Swindling More Than $1 Million From Clients

body_text: CHICAGO — The owner of a suburban Chicago insurance agency has been sentenced to seven years in federal prison for swindling more than $1 million from clients by collecting annuity premiums for policies that he never purchased. DANIEL M. ROSENBAUM owned and operated Alexander & Rosenbaum Financial Group LLC, an insurance agency in Kenilworth, Ill. Beginning in 2016, Rosenbaum collected more than $1 million in annuity premiums from at least 18 clients, including friends and family members, for policies that he never purchased. Rosenbaum instead used the money for his own benefit, including spousal and child support payments, credit card payments, vehicle and other loan payments, and purchases at a jewelry store. Rosenbaum attempted to conceal the fraud by creating fake annuity documents and providing them to his clients. Some of the phony documents contained the logos of legitimate insurance companies that Rosenbaum had cut and pasted into the documents. In addition to the annuity fraud scheme, Rosenbaum also engaged in fraud related to the federal Paycheck Protection Program (PPP), which was created by the CARES Act to cover lost revenue due to economic disruptions from the Covid-19 pandemic. Rosenbaum filed three fraudulent PPP loan applications in his name and, unbeknownst to them, the names of two close family members, for which he was paid a total of $53,537. Rosenbaum also fraudulently obtained $65,826 from the State of Illinois by filing two fraudulent applications for unemployment insurance benefits in his name and, unbeknownst to her, the name of a close family member. Rosenbaum, 56, of Brown Deer, Wisc., pleaded guilty last year to a federal wire fraud charge. U.S. District Judge Manish S. Shah imposed the sentence Tuesday during a hearing in federal court in Chicago. The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The South Chicago Heights, Ill. Police Department provided valuable assistance. “Not only was Rosenbaum stealing his clients’ money, but he was also leaving them without the annuity coverage they expected to have,” Assistant U.S. Attorney Prashant Kolluri argued in the government’s sentencing memorandum. “Without that coverage, a number of his clients suffered substantial financial hardship.”


title: Three Accused of Nearly $350,000 Auto Loan Fraud

body_text: ST. LOUIS – Three people have been indicted on charges accusing them of defrauding St. Louis area lenders and others out of $348,000 with a fraudulent vehicle loan scam. Willie Roy Carter, 74, Kizzie Davis, also known as Kizzie Lofton, 45, and Charles Davis Jr., 56, were indicted Dec. 20, 2023, with nine counts of bank fraud and one count of mail fraud. Carter appeared in U.S. District Court in St. Louis Wednesday and pleaded not guilty. The Davises, who are husband and wife, pleaded not guilty February 2. The indictment accuses Carter of applying for nine auto loans between July 23, 2019, and Aug. 1, 2018, using fraudulent documents. In some cases, Carter allegedly used a fraudulent Illinois vehicle title. In all cases, Carter claimed the car was being sold by City Limits Auto Sales, a business name registered in Missouri in 2016 by Charles Davis, the indictment says. Carter then gave the loan checks to the Davises to deposit. The loans totaled about $348,214, the indictment says. Each bank fraud charge is punishable by up to 30 years in prison, a $1 million fine or both prison and a fine. The mail fraud charges are punishable by up to 20 years in prison, a $250,000 fine, or both. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney Linda Lane is prosecuting the case.


title: Justice Department Conducts Court-Authorized Disruption of Botnet Controlled by the Russian Federation’s Main Intelligence Directorate of the General Staff (GRU)

component: Office of the Attorney General

body_text: Note: Following the publication of this press release, the FBI and international partners issued a joint multinational cybersecurity advisory on Russian cyber actors' use of compromised routers to facilitate cyber operations. A January 2024 court-authorized operation has neutralized a network of hundreds of small office/home office (SOHO) routers that GRU Military Unit 26165, also known as APT 28, Sofacy Group, Forest Blizzard, Pawn Storm, Fancy Bear, and Sednit, used to conceal and otherwise enable a variety of crimes. These crimes included vast spearphishing and similar credential harvesting campaigns against targets of intelligence interest to the Russian government, such as U.S. and foreign governments and military, security, and corporate organizations. In recent months, allegations of Unit 26165 activity of this type has been the subject of a private sector cybersecurity advisory and a Ukrainian government warning . This botnet was distinct from prior GRU and Russian Federal Security Service (FSB) malware networks disrupted by the Department in that the GRU did not create it from scratch. Instead, the GRU relied on the “Moobot” malware, which is associated with a known criminal group. Non-GRU cybercriminals installed the Moobot malware on Ubiquiti Edge OS routers that still used publicly known default administrator passwords. GRU hackers then used the Moobot malware to install their own bespoke scripts and files that repurposed the botnet, turning it into a global cyber espionage platform. The Department’s court-authorized operation leveraged the Moobot malware to copy and delete stolen and malicious data and files from compromised routers. Additionally, in order to neutralize the GRU’s access to the routers until victims can mitigate the compromise and reassert full control, the operation reversibly modified the routers’ firewall rules to block remote management access to the devices, and during the course of the operation, enabled temporary collection of non-content routing information that would expose GRU attempts to thwart the operation. “The Justice Department is accelerating our efforts to disrupt the Russian government’s cyber campaigns against the United States and our allies, including Ukraine,” said Attorney General Merrick B. Garland. “In this case, Russian intelligence services turned to criminal groups to help them target home and office routers, but the Justice Department disabled their scheme. We will continue to disrupt and dismantle the Russian government’s malicious cyber tools that endanger the security of the United States and our allies.” “For the second time in two months, we’ve disrupted state-sponsored hackers from launching cyber-attacks behind the cover of compromised U.S. routers,” said Deputy Attorney General Lisa Monaco. “We will continue to leverage all of our legal authorities to prevent harm and protect the public — whether the hackers are from Russia, China, or another global threat.” “Russia’s GRU continues to maliciously target the United States through their botnet campaigns,” said FBI Director Christopher Wray. “The FBI utilized its technical capabilities to disrupt Russia’s access to hundreds of routers belonging to individuals in addition to small and home offices. This type of criminal behavior is simply unacceptable, and the FBI, in coordination with our federal and international partners, will not allow for any of Russia’s services to negatively impact the American people and our allies.” “In this unique, two-for-one operation, the National Security Division and its partners disrupted a botnet used by both criminal and state-sponsored actors,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Notably, this represents the third time since Russia’s unjustified invasion of Ukraine that the Department has stripped the Russian intelligence services of a key tool used to further the Kremlin’s acts of aggression and other malicious activities. We will continue to use our legal authorities and cutting-edge techniques, and to draw on the strength of our partnerships, to protect the public and our allies from such threats.” “This is yet another case of Russian military intelligence weaponizing common devices and technologies for that government’s malicious aims,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “As long as our nation-state adversaries continue to threaten U.S. national security in this way, we and our partners will use every tool available to disrupt their cyber thugs — whomever and wherever they are.” “Operation Dying Ember was an international effort led by FBI Boston to remediate over a thousand compromised routers belonging to unsuspecting victims here in the United States, and around the world that were targeted by malicious, nation state actors in Russia to facilitate their strategic intelligence collection,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “The FBI’s strong partnerships with the private sector were critical to identifying and addressing this threat which targeted our national security interests here and abroad. This operation should make it crystal clear to our adversaries that we will not allow anyone to exploit our technology and networks.” As described in court documents, the government extensively tested the operation on the relevant Ubiquiti Edge OS routers. Other than stymieing the GRU’s ability to access to the routers, the operation did not impact the routers’ normal functionality or collect legitimate user content information. Additionally, the court-authorized steps to disconnect the routers from the Moobot network are temporary in nature; users can roll back the firewall rule changes by undertaking factory resets of their routers or by accessing their routers through their local network (e.g., via the routers’ web-based user interface). However, a factory reset that is not also accompanied by a change of the default administrator password will return the router to its default administrator credentials, leaving the router open to reinfection or similar compromises. The FBI Philadelphia and Boston Field Offices and Cyber Division, U.S. Attorney’s Office for the Eastern District of Pennsylvania, and the National Security Division’s National Security Cyber Section led the disruption effort. The Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, Shadowserver Foundation, Microsoft Threat Intelligence, and other partners provided valuable assistance. The FBI is working with internet service providers to provide notice of the operation to owners and operators of SOHO routers covered by the court’s authorization. If you believe you have a compromised router, please visit the FBI’s Internet Crime Complaint Center . To better protect themselves, the FBI advises all victims to conduct the following remediation steps: Perform a hardware factory reset to flush the file systems of malicious files; Upgrade to the latest firmware version; Change any default usernames and passwords; and Implement strategic firewall rules to prevent the unwanted exposure of remote management services. The FBI strongly encourages router owners to avoid exposing their devices to the internet until they change the default passwords.


title: Firearms Purchaser Sentenced to 21 Months for Lying to Acquire a Firearm

component: USAO - Arizona

body_text: TUCSON, Ariz. – Javier Alejandro Ramos-Velderrain, 23, of Tucson, was sentenced last week by United States District Judge Scott H. Rash to 21 months in prison. On October 23, 2023, a jury convicted Ramos-Velderrain of Making a False Statement During the Purchase of a Firearm. On November 4, 2020, U. S. Customs and Border Protection officers stopped Luis Manuel Bray-Vasquez as he attempted to enter the Republic of Mexico at the Mariposa Port of Entry in Nogales in an SUV. When told to turn off the engine, Bray-Vasquez, a U.S. Consulate employee, put the car in drive and attempted to flee into Mexico. Port officials were able to close the gates and stop the vehicle from escaping into Mexico and Bray-Vasquez was arrested. A search of the SUV revealed 15 firearms, including a Barrett BMG .50 caliber rifle, broken down and hidden in a blue bag. Bray-Vasquez was subsequently prosecuted and sentenced on August 24, 2021, by United States District Judge Jennifer G. Zipps, to 46 months in prison after he pleaded guilty to Smuggling Goods from the United States (CR-21-00655-TUC-JGZ). Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into the source of the 15 firearms and traced the 12 firearms that had serial numbers. Based on the tracing, ATF discovered that Javier Alejandro Ramos-Velderrain purchased the Barrett BMG .50 caliber firearm from 2A Ballistic Solutions, a federal firearms licensee (FFL), just 22 days prior to it being intercepted at the border. When he purchased the Barrett rifle, Ramos-Velderrain filled out and certified under penalty of perjury the ATF Form 4473, the Firearms Transaction Record, which records the identifying information of the buyer when purchasing a firearm from an FFL. At the time, Ramos-Velderrain knowingly listed a false address as his residence. This delayed the investigation, as agents were unable to locate Ramos-Velderrain. When agents found him, Ramos-Velderrain stated that he sold the firearm for $7,000 to a person who responded to an internet sale advertisement. He was unable to provide any information as to whom and when he allegedly sold the firearm. The Barrett BMG .50 caliber rifle is one of the most highly powered firearms that can be purchased outside of the military as it has massive destructive power. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, and U.S. Customs and Border Protection conducted the investigation in this case. Assistant U.S. Attorneys Serra M. Tsethlikai and Evan N. Wesley, District of Arizona, Tucson, handled the prosecution. Assistant U.S. Attorney Angela W. Woolridge, District of Arizona, Tucson, handled the prosecution of Luis Manuel Bray-Vasquez. CASE NUMBER: CR-21-03282-SHR RELEASE NUMBER: 2024-018_Ramos-Velderrain # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.


title: California Pharmaceutical Company to Pay $750,000 to Resolve False Claims Act Liability for Allegedly Paying Kickbacks to Induce Prescriptions of Opioid Products

component: USAO - New Jersey

body_text: NEWARK, N.J. – A California pharmaceutical company has agreed to pay $750,000 to resolve allegations that it violated the False Claims Act by causing the submission of claims for certain opioids in violation of the federal Anti-Kickback Statute, U.S. Attorney Philip R. Sellinger announced today. From Dec. 1, 2015, through Aug. 31, 2016, Sentynl Therapeutics Inc., of Solana Beach, California, a specialty pharmaceutical company, marketed and sold prescription opioids Abstral and Levorphanol Tartrate (Levorphanol). The settlement resolves allegations that, during the relevant time period, Sentynl knowingly caused the submission of claims for Abstral and Levorphanol medications to Medicare in violation of the federal Anti-Kickback Statute. These allegedly false claims resulted from Sentynl’s alleged indirect payment of kickbacks to a physician. Specifically, the United States contends that Sentynl hired the girlfriend of a physician who was a top prescriber of Transmucosal Immediate Release Fentanyl (TIRF) medications to act as a sales representative in South Florida – the same region in which the physician practiced. Sentynl hired, employed, and made salary and bonus payments to the physician’s girlfriend to induce the physician to prescribe its Abstral and Levorphanol medications. “The opioid crisis has had devastating impacts here in New Jersey and for the country at large. This office is committed to combatting this crisis at every level of the healthcare system, from the prescribers to the manufacturers. Here, this pharmaceutical company is alleged to have indirectly paid unlawful kickbacks to a doctor by employing his girlfriend in an effort to improperly induce him to prescribe their opioid products. Today’s settlement holds them accountable for this alleged wrongdoing and reflects law enforcement’s ongoing commitment to protecting the integrity of medical decision-making and combatting the opioid crisis.” U.S. Attorney Philip R. Sellinger "Pharmaceutical companies that sold opioids are being held accountable for improper inducements offered to prescribers,” FBI – Newark Special Agent in Charge James E. Dennehy said. The Newark FBI and our law enforcement partners will continue our pursuit of those who continue to believe the rules don’t apply to them.” “Pharmaceutical companies are not exempt from their responsibilities to operate within the confines of the law,” Special Agent in Charge Cheryl Ortiz of the Drug Enforcement Administration’s New Jersey Field Division said. “We are glad our diversion investigators were able to assist efforts to bring this matter to a resolution.” “Some violations of the Anti-Kickback Statute, like those alleged here, can induce physicians’ imprudent prescribing of controlled substances,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General. “Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.” U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; investigators of the U.S. Drug Enforcement Administration (DEA), under the direction of Special Agent in Charge Cheryl Ortiz; special agents of the U.S. Department of Health and Human Services Office of Inspector General, under the direction of Special Agent in Charge Naomi Gruchacz, with the investigation leading to the settlement. The government is represented by Assistant U.S. Attorney Susan J. Pappy of the U.S. Attorney’s Office, District of New Jersey’s Health Care Fraud Unit and Robert L. Toll of the Office’s Opioid Abuse Prevention and Enforcement Unit, and Trial Attorney Douglas J. Rosenthal of the Department of Justice’s Civil Division, Commercial Litigation Branch (Fraud Section). The government’s pursuit of this matter illustrates its efforts to combat healthcare fraud. One of the strongest tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477). The claims resolved by the settlement are allegations only and there has been no determination of liability. sentynl.settlement.pdf