NewzIntel.com

Category: Federal Bureau of Investigation

  • MIL-OSI Security: Drug Trafficker with Gun Sentenced to 20 Years After Leading State Troopers on High-Speed Chase

    Source: US FBI

    RALEIGH, N.C. – Shoun Lamelle Wright Jr., 28, a resident of Sumter, South Carolina, was sentenced to 240 months in prison for drug trafficking and firearms offenses after he led law enforcement on a high-speed chase. These charges included possession with intent to distribute methamphetamine, cocaine, and fentanyl, as well as possession of a firearm by a felon. On August 4, 2024, he pled guilty to the charges.

    “This armed drug runner tried to flee from state troopers at 135 miles per hour before ditching his dope out the driver’s side door,” said U.S. Attorney Michael F. Easley, Jr. “Running from law enforcement never works, and puts innocent motorists at risk. Many thanks to the NC Highway Patrol and Jacksonville Police for taking this dangerous felon off the streets.”

    “This case not only highlights the risks that our members incur during the performance of their duties, but also the perilousness that hard-working North Carolinians can face as a result of such actions as they travel on our state’s highways,” said Colonel Freddy Johnson Jr., Commander of the North Carolina State Highway Patrol. “Our mission is to ensure the safety of our state’s motorists and inhabitants, and we greatly value the partnership of the Department of Justice in their pursuit to place accountability of criminals at the forefront to help us accomplish this mission. The decisiveness of this sentencing is undoubtedly a victory for the people of North Carolina.”

    “Mr. Wright’s complete and utter disregard for the safety of others is disturbing.  Not only was he involved in activities that harmed our community, but he also deliberately put resident’s lives at risk with his actions.  I am thankful no one in the community was physically harmed by his actions.  I commend the members from the Jacksonville Police Department, N.C. State Highway Patrol, the Federal Bureau of Investigation, and the U.S. Attorney’s Office for their service to our community and for their excellent collaboration in bringing this case to a successful resolution,” said Jacksonville Police Chief Jarad Phelps.

    According to court documents and other information presented in court, the N.C. State Highway Patrol (NCSHP) conducted a traffic stop on a vehicle driven by Wright on July 21, 2021. Wright initially pulled over and then fled as the trooper approached his vehicle, driving up to 135 miles per hour. Law enforcement made a successful stop when the vehicle entered Jacksonville. Once stopped, Wright dropped a bag containing 26 grams of crack out of the driver’s door, and a search of the vehicle resulted in the seizure of marijuana.

    On July 29, 2021, officers with the Jacksonville Police Department (JPD) responded to a call from a security guard at the Platinum Gentlemen’s Club who saw an armed individual bagging narcotics in the establishment’s parking lot. The security guard stated that the individual, later identified as Wright, had pointed a pistol at him as he approached the vehicle. Later that day, a JPD officer identified the vehicle driven by Wright parked at a residence known to law enforcement due to previous narcotics and violent crime investigations. After Wright left the residence, the JPD officer initiated a traffic stop on his vehicle. Officers returned to the residence and conducted a search where they seized a loaded 9mm pistol with an obliterated serial number, a 27-round magazine, a second 9mm pistol, and a loaded .380 caliber pistol. They also seized nearly 2,000 grams of marijuana, more than 55 grams of crack, more than eight grams of cocaine, and over $7,000 in cash. Wright claimed ownership of the drugs and guns found at the residence. As a previously convicted felon, Wright cannot legally possess a firearm or ammunition.

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The NCSHP, the JPD, and the FBI investigated the case.

    Assistant U.S. Attorneys Ashley Foxx and Leonard Champaign prosecuted the case.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-00100-BO.

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  • MIL-OSI Security: Chowan County Man Sentenced to 10 Years for Child Pornography

    Source: US FBI

    RALEIGH, N.C. – Kevin Lassiter, of Tyner, was sentenced today to 120 months in prison for possession of child pornography after online CyberTips led local sheriff’s deputies to search his devices.  On August 5, 2024, Lassiter, 40, pled guilty to the charge.

    According to court documents and other information presented in court, on September 27, 2023, the Perquimans County Sheriff’s Office received 12 CyberTips from the National Center for Missing and Exploited Children (NCMEC).  Electronic service providers submit CyberTips to NCMEC to report users who possess child sexual abuse material on their systems.  A cloud-based storage provider for the Verizon network reported 12 CyberTips of a user uploading images depicting prepubescent minors engaged in sex acts between July 29 to August 25, 2023.

    Investigators were able to link the tips, through an associate phone number, to Lassiter, and a residential billing address in Tyner.  Investigators confirmed Lassiter’s address and found that he was a registered sex offender after state convictions in 2013 for 3rd degree sexual exploitation of a minor in Carteret County. 

    Later the same day, investigators obtained and executed a search warrant for Lassiter’s residence.  During a search with Lassiter present, investigators found a Samsung Galaxy phone on the stairwell that rang when they dialed the number associated with the CyberTips. 

    Investigators seized a computer downstairs at a desk, which Lassiter admitted was his. The computer was connected to a USB hub with four cables plugged into it, but no devices connected to those cables. Deputies then found multiple hard drives under the desk. When they picked up a 6TB Western Digital MyBook hard drive, Lassiter called out that it was a router. After a deputy responded that it was a hard drive and would be seized, Lassiter became noticeably distraught and hung his head. 

    During a recorded interview at the sheriff’s office, Lassiter admitted the device he claimed was a router was a hard drive that contained child pornography.  Lassiter explained that he would copy images from the hard drive to his phone.

    A forensic review of the 6TB Western Digital external hard drive revealed approximately 10,000 files of child sexual abuse material.  The files included infants through teenage minors, with an estimated 90% of files depicting minors 10 years old or younger.

    Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle.  The Perquimans County Sherriff’s Office and the Federal Bureau of Investigation investigated the case, which Assistant U.S. Attorney Jake D. Pugh prosecuted.

    Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:24-cr-0014-BO.

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  • MIL-OSI Security: Pain Management Physician Sentenced for Unlawfully Distributing Opioids

    Source: US FBI

    An Ohio physician was sentenced today to seven years in prison for unlawfully distributing opioids from his clinic.

    According to court documents and evidence presented at trial, Thomas Romano, 74, of Wheeling, West Virginia, owned and operated a self-named pain management clinic in Martin’s Ferry, Ohio, to which individuals traveled hundreds of miles to obtain prescriptions for opioids and other controlled substances. The prescriptions Romano issued for opioids and other controlled substances greatly exceeded recommended dosages and were in dangerous, life-threatening combinations that fueled the addiction of the individuals to whom he prescribed. Between October 2014 and September 2019, Romano prescribed over 137,000 pills, including opioids, benzodiazepines, and muscle relaxants, to nine individuals.

    A federal jury convicted Romano in September 2023 of 24 counts of unlawfully distributing controlled substances in violation of the Controlled Substances Act.  

    Principal Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Kenneth L. Parker for the Southern District of Ohio; Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA) Detroit Field Division; Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

    The DEA, FBI, HHS-OIG, Ohio Bureau of Workers’ Compensation, and Ohio Board of Pharmacy investigated this case.

    Trial Attorneys Devon Helfmeyer and Danielle Sakowski and Counsel Alexis Gregorian of the Criminal Division’s Fraud Section prosecuted the case.

    The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

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  • MIL-OSI Security: Licking County Man Pleads Guilty to Conspiracy Crime Involving Videos of Monkey Torture & Mutilation

    Source: US FBI

    COLUMBUS, Ohio – A plea agreement was unsealed today in which a Licking County man pleaded guilty to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.

    Ronald P. Bedra, of Etna, pleaded guilty to conspiring to create and distribute “animal crush” videos.

    According to court documents, Bedra conspired with others to create and distribute the videos that depicted acts of sadistic violence against baby and adult monkeys, including having digits and limbs severed and being forcibly sodomized with a heated screwdriver.

    The conspirators used encrypted chat apps to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera. Bedra also mailed a thumb drive containing 64 videos of monkey torture to a co-conspirator in Wisconsin.

    Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Kenneth L. Parker for the Southern District of Ohio made today’s announcement.

    The U.S. Fish and Wildlife Service and FBI investigated the case.

    Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.

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  • MIL-OSI Security: Former Children’s Hospital Employee Pleads Guilty to Sharing, Receiving Child Pornography

    Source: US FBI

    COLUMBUS, Ohio – A former Nationwide Children’s Hospital employee who treated child burn patients pleaded guilty in U.S. District Court today to downloading, exchanging and receiving child pornography.

    Ryan Ramos, 38, of Columbus, pleaded guilty to one count of distributing and receiving child pornography and one count of possessing child pornography. He faces an imprisonment range of five to 20 years in prison.

    Ramos worked at Nationwide Children’s Hospital from 2018 until 2020 and then at The Ohio State University Wexner Medical Center in the ICU in burn trauma until 2023.

    According to court documents, a 2020 FBI investigation in their Brooklyn-Queens office led agents to discover Ramos’s participation in a Signal app group dedicated to the exchange of child pornography.

    Ramos shared hundreds of images and videos of child sexual abuse, including abuse of young boys and infants, to the chat group.

    Further investigation into Ramos revealed that, in 2018, he had paid a sexual offender in New York City and received child pornography created by the offender in exchange for his payment. Ramos sent more than $500 via PayPal to the child exploiter.

    Ramos’s iPhone contained more than 346,000 Signal, Telegram and other online chat messages, in most of which Ramos was distributing, seeking, receiving or discussing child pornography.

    Ramos was charged by a bill of information on May 6 and pleaded guilty during his arraignment in federal court this afternoon. He is in custody pending sentencing.

    Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Elena Iatarola, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea entered today before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.

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  • MIL-OSI Security: Chicago Man Pleads Guilty to Cyberstalking, Sextortion

    Source: US FBI

    COLUMBUS, Ohio – Omoruyi O. Uwadiae, 28, of Chicago, offered a guilty plea in U.S. District Court today to cyberstalking, sextortion and identity theft crimes. His scheme involved dozens of victims in multiple states, including Ohio, Colorado and Washington.

    According to his plea documents, Uwadiae admitted to obtaining sexually explicit photographs and videos from potential victims and then using the content to threaten them. Uwadiae threatened to distribute the explicit material widely on the internet and specifically to victims’ friends, family members, employers and others.

    The defendant demanded money from some victims. From others, he demanded they meet him, have sex with him, or make damaging admissions such as admissions that they were racist. On multiple occasions, Uwadiae carried through with his threats. He sent sexually explicit photographs and videos to the victims’ friends, family members (including at least one victim’s mother, at least one victim’s brother, and at least one victim’s sister), employers and acquaintances, and also posted sexually explicit photographs and videos widely on the internet.

    Multiple victims had not publicly disclosed their sexual orientation, which Uwadiae’s actions disclosed, contrary to their wishes. The defendant also used victims’ identifications to create false accounts on social media and post personal information about the victims online.

    Uwadiae targeted young gay men on Grindr and other online sites. He would obtain their sexually explicit photographs and videos consensually and then use them to extort. In some cases, he posted their nude images on Male General without their consent and then demanded money or other things of value to take down the images. Male General is a blog marketed to gay men containing, among other things, boards where users can post images and text.

    For example, one victim was a student at The Ohio State University who communicated with Uwadiae on Grindr. Uwadiae ultimately demanded that the victim either pay him $200 or have sex with him. When the victim did not comply, Uwadiae created false social media accounts using true photos of the victim, stating, “this guy is gay, see pics for evidence.” The victim had not disclosed his sexual orientation to his family and had told Uwadiae he was concerned that his family would react negatively if they learned he was bisexual.

    Uwadiae was charged in the Southern District of Ohio in April by a bill of information.

    As part of his plea, Uwadiae pleaded guilty to 22 total counts. He pleaded guilty to eight counts of cyberstalking (punishable by up to five years in prison), seven counts of making interstate communications with the intent to extort (up to two years in prison) and seven counts of unlawfully using a means of identification (up to five years in prison).

    Congress sets the maximum statutory sentences and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing.

    Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the guilty plea offered today before U.S. Magistrate Judge Norah McCann King. Assistant United States Attorney Peter K. Glenn-Applegate and Senior Litigation Counsel Heather A. Hill are representing the United States in this case, which was investigated by the FBI and the Columbus Division of Police.

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  • MIL-OSI Security: Ohio Man Pleads Guilty to Felony Civil Disorder During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON – An Ohio man pleaded guilty today to a felony charge stemming from his conduct during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

                Adrian Schmidt, 26, of Cincinnati, Ohio, pleaded guilty to a felony charge of civil disorder before U.S. District Judge Ana C. Reyes. Judge Reyes will sentence Schmidt on Sept. 10, 2024.

                According to court documents, Schmidt traveled from Cincinnati to Washington, D.C., to attend the former President’s rally on the National Mall. At about 12:50 p.m., Schmidt made his way to a line of barricades erected by U.S. Capitol Police (USCP) officers around the Capitol building near the Peace Circle Monument. Here, Schmidt was amongst a group of rioters pushing on the barricades, which eventually led to the breach of the outer perimeter of the Capitol.

                After breaching the Peace Circle Monument barricades, Schmidt and the mob of rioters surged toward the Capitol, into the restricted area. Schmidt then stood on top of a small wall and yelled towards other rioters, “Our House!” and “Whose House?” Schmidt then made his way to the front of the mob that had gathered near a black metal fence on the West Plaza and jumped over the fencing as the mob surged forward toward a line of USCP officers.

                Schmidt again moved to the front of the mob and confronted the line of USCP officers on the West Plaza. He used his cellphone to record a video where he chanted, “Whose House?” Schmidt then turned towards the USCP officers guarding the West Plaza and said, “We’re right here (pointing at the ground). Whose platform? Our platform!”

                Court documents say that between 1:00 and 2:45 p.m., the mob on the West Plaza became more and more confrontational with the line of USCP officers. During this time, Schmidt again confronted the officers and, on several occasions, obstructed, impeded, and interfered with the USCP officers. Specifically, he pushed backward against police officers and their riot shields on the West Plaza.

                Following his confrontation with police, Schmidt made his way to the Upper West Plaza and, at about 2:45 p.m., entered the Capitol building via the Upper West Terrace Doors with his fist raised in the air as fire alarms from the doors were loudly ringing. Over the next two minutes, Schmidt traveled into the Rotunda, and entered Statuary Hall. At approximately 2:51 p.m., Schmidt exited the Capitol via the East Foyer Doors. He later reentered the building through the same doors at approximately 3:15 p.m.

                Schmidt remained in the East Foyer until he was forced out of the Capitol by officers at approximately 3:30 p.m. Schmidt remained on Capitol grounds, circling from the East Foyer to the West Plaza until the early evening of January 6th.

                The FBI arrested Schmidt on July 28, 2023, in Ohio.  

                The U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section are prosecuting this case. The U.S. Attorney’s Office for the Southern District of Ohio provided valuable assistance. 

               This case was investigated by the FBI’s Cincinnati and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

                In the 40 months since Jan. 6, 2021, more than 1,424 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 500 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

                Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

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  • MIL-OSI Security: FBI Helps Public to Recognize Signs of Concerning Behavior

    Source: US FBI

    In Bid to Prevent Mass Attacks, the FBI Asks Public to ‘Talk to Someone You Trust’ if You Notice Concerning Behaviors

    CLEVELAND, OH—FBI Cleveland and the FBI’s Behavioral Analysis Unit are urging people to take notice when their friends, family, classmates, and coworkers show disturbing signs they may be on a “pathway to violence.”

    Drawing on years of research on targeted violence and mass shooters—to include the mass shooting in Uvalde, Texas, in 2022 in which 19 elementary school students and two teachers were killed—the FBI unit best known for its “profilers” is asking people to confide in someone they trust or respect when they see behaviors they think are concerning. Too often, the signs are ignored or dismissed because they are not recognized as potentially dangerous, or observers will directly confront the person they are concerned about, believing that alone will be enough to defuse concerning behaviors.

    “We are focused on helping the public recognize threatening signs and report concerning behaviors. As bystanders, we might think we are overreacting when we observe something out of place or hesitant to say something for fear of appearing impulsive. The reality is that it is vitally important to report suspicious behavior, whether to the FBI or to local law enforcement,” said FBI Cleveland Special Agent in Charge Greg Nelsen.

    “Following a tragedy or crisis, we often hear “something needs to change.” Helping the public recognize the behaviors and adopt the prevention tips are the first steps to that change,” he added.

    “Our goal is to get bystanders, who are the most important part of the prevention cycle, to be able to consistently identify concerning behaviors that are backed by research and experience,” said Taylor Cilke, a crime analyst in the unit of BAU that studies threats. BAU resides in the FBI’s Critical Incident Response Group and is part of the National Center for the Analysis of Violent Crime, which was established in 1984 to develop strategies to combat serial and violent crimes.

    “In order to prevent a threat, we have to identify it, and we have to assess it, and then we have to take steps to manage it,” Cilke said. “The hardest part is that identification piece. And that’s where the public and potential bystanders can really help us empower our communities and force-multiply our work. But if we never identify the threat, we can’t assess and manage it.”

    To that end, BAU this week launched a Prevent Mass Violence campaign that includes a new webpage and brochures containing tips and strategies to help potential bystanders understand what types of behaviors may be concerning and ways to respond. “The most important thing is to tell someone,” the webpage says. That may not necessarily mean law enforcement; it could be a school administrator, employee assistance peer, a boss, or someone else you trust.

    “We’ve seen time and again that there are noticeable, observable behaviors,” said Brad Hentschel, a supervisory special agent in BAU, pointing to nearly three decades of academic research, along with BAU’s findings from studying mass violence events. “Mass shooters don’t just snap. Recognizing and reporting the warning signs of someone thinking about and preparing for violence can be lifesaving.”

    According to BAU, some concerning behaviors may include:

    • Comments, jokes, or threats about violent plans
    • Repeated or detailed fantasies about violence
    • Comments about hurting themselves or others
    • Creating a document, video, suicide note, or other item to explain or claim credit for future violence
    • Seeing violence as a way to solve their problems
    • Unusual difficulty coping with stress
    • Increasing isolation from family, friends, or others
    • Angry outbursts or physical aggression
    • Obsessive interest in prior attackers or attacks
    • Changing vocabulary, style of speech, or how they act in a way that reflects a hardened point of view or new sense of purpose associated with violent extremist causes

    Last spring, as the one-year anniversary of the Uvalde shootings approached, BAU developed and distributed brochures related to preventing mass violence. BAU-trained special agents who serve as threat management coordinators in their field offices and provided the brochures to school administrators, mental health providers, and the human resource departments of companies in their regions. These resources are meant to help communities identify concerning behaviors and take action to get help—before violence is imminent.

    For a more comprehensive list of concerning behaviors, to include brochures—along with resources and research about targeted violence—please visit the new webpage at www.fbi.gov/prevent. The webpage and all the supporting information are provided to encourage the public to “be the key to preventing violence by talking to someone you trust.”

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  • MIL-OSI Security: Rite Aid Corporation and Elixir Insurance Company Agree to Pay $101 Million to Resolve Allegations of Falsely Reporting Rebates

    Source: US FBI

    The Justice Department announced that Rite Aid Corporation and Rite Aid subsidiaries, Elixir Insurance Company, RX Options LLC and RX Solutions LLC, have agreed to resolve allegations that they violated the False Claims Act (FCA) by failing to accurately report drug rebates to the Medicare Program. As part of the settlement, Elixir Insurance and Rite Aid will pay the United States $101 million, and RX Options and RX Solutions will grant the United States an allowed, unsubordinated, general unsecured claim for a total of $20 million in Rite Aid’s bankruptcy case pending in the District of New Jersey. The settlement is based on the companies’ ability to pay and was approved on June 28 by the bankruptcy court as part of Rite Aid’s plan of reorganization, which is expected to become effective later this summer. In addition to operating one of the country’s largest retail pharmacy chains, Rite Aid offered Medicare drug plans and pharmacy benefits manager (PBM) services through Elixir Insurance, RX Options and RX Solutions.  

    “Participants in Medicare’s drug program must accurately report price concessions, including drug manufacturer rebates, to ensure that the government receives the benefit of those concessions,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement reflects the Justice Department’s commitment to hold accountable entities that pursue their own financial interests at the expense of taxpayer programs.”

    “Rite Aid and its Elixir subsidiaries lined their corporate pockets with millions of dollars of manufacturer rebates that should have been reported to Medicare,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Each of those dollars could have been used to benefit Americans with genuine health care needs. Our office will not tolerate deceptive health-insurance practices, and we will vigorously pursue those who violate the FCA.”

    Under Medicare Part D, private entities known as Part D Plan Sponsors offer and administer insurance plans that provide prescription drug coverage to enrolled Medicare beneficiaries. Part D Sponsors must submit annual reports to the Centers for Medicare and Medicaid Services (CMS) with information about rebates and other remuneration the Plans received from drug manufacturers in connection with the Part D drugs provided to beneficiaries, which ensures that the government receives the benefit of any price concessions provided by drug manufacturers to purchasers of the drugs covered under the Part D plan. CMS relies on the reports in the annual reconciliation process that determines payments due to the Plans or CMS at the end of the year.

    The settlement resolves allegations that, between 2014 and 2020, the defendants improperly reported to CMS portions of rebates received from manufacturers as bona fide service fees, even though manufacturers did not negotiate with the defendants to pay such fees. The United States further alleged that Elixir Insurance knew the retained rebates did not meet the regulatory definition of bona fide services fees.

    “Truthful and accurate documentation in the delivery of health care goods or services is crucial to the integrity of federal health care programs,” said Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Improper submission of manufacturer drug rebates and fees by Part D Plan Sponsors for pharmaceutical products in order to make more money will not be tolerated. Collaborating with our law enforcement partners, HHS-OIG is committed to preventing and investigating health care fraud in Medicare and other taxpayer-funded health care programs.”

    The civil settlement includes the resolution of claims brought in 2021 under the qui tam, or whistleblower, provisions of the False Claims Act by Glenn Rzeszutko, who previously worked for RX Options. The FCA authorizes a private party to sue on behalf of the United States and share in any recovery. The qui tam case is captioned United States ex rel. Rzeszutko v. Rite Aid Corporation et al., No. 5:21-CV-574 (N.D. Ohio). The relator’s share of these proceeds has not yet been determined.

    Trial attorneys Christopher Wilson and Dan Schiffer of the Civil Division’s Fraud Section and Assistant U.S. Attorney Jackson Froliklong for the Northern District of Ohio handled this matter. HHS-OIG and the FBI Cleveland Field Office provided substantial assistance in the investigation. Trial Attorneys Mary Schmergel, Gregory Werkheiser and Ryan Lamb of the Civil Division’s Corporate/Financial Litigation Section are handling the Rite Aid bankruptcy.

    The settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).

    The claims asserted against defendants are allegations only. There has been no determination of liability.

    Settlement

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  • MIL-OSI Security: Ohio Medical Doctor Sentenced to Prison for Health Care Fraud Scheme

    Source: US FBI

    TOLEDO – Ankita Singh, 42, formerly of Maumee, Ohio, was sentenced to 26 months in prison by U.S. District Judge Jack Zouhary, for her role in a durable medical equipment (DME) scheme that defrauded the U.S. Department of Health and Human Services Medicare Program. She was also ordered to pay restitution in the amount of $4,470,931.02, serve two years of supervised release, and pay a special assessment fee of $600.

    On Feb. 29, 2024, a jury found Singh guilty of six counts of health care fraud for signing false orders for orthotic braces, that patients never requested and did not need, as part of a DME scheme.

    Beginning in 2019, Singh worked as an independent contractor for at least two companies, to purportedly provide “telehealth services,” and was paid a fee to conduct patient consultations. The consultations never took place. Telemarketers would cold call Medicare beneficiaries and tell them that orthotic braces would be provided to them at no cost. The beneficiaries were not previously Singh’s patients and she never spoke to them. Singh never saw them in person and did not conduct a telehealth visit. The telemarketers would prepare orders with the beneficiaries’ names, Medicare numbers, and purported diagnosis to support a false diagnosis that the braces were medically necessary. Orders were then electronically sent to Singh to affix her signature and certify that she was treating the Medicare beneficiary and affirm that the brace was medically necessary. Singh signed more than 11,000 prescriptions for orthotic braces for approximately 3,000 Medicare beneficiaries with whom she had no patient-physician relationship, and frequently ordered multiple braces for each patient, without ever having examined them.

    As a result of Singh’s false orders, more than $8 million was billed to Medicare for orthotic devices that were not medically necessary. In all, Medicare paid approximately $4.47 million in claims for the fraudulent prescriptions that Singh signed.

    This case was prosecuted by Assistant U.S. Attorneys Gene Crawford and Angelita Cruz Bridges for the Northern District of Ohio. The case was investigated by the U.S. Department of Health and Human Services (HHS) – Office of Inspector General, and the FBI.

    To report suspected health care fraud, waste, abuse, or mismanagement of HHS programs, visit https://oig.hhs.gov/fraud/report-fraud/contact/ or call 1-800-447-8477.

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  • MIL-OSI Security: Federal Court Permanently Prohibits Ohio Physician From Prescribing Opioids and Imposes $4.7 Million Judgment for Alleged Unlawful Opioid Distribution

    Source: US FBI

    CLEVELAND – A federal court prohibited a Sandusky, Ohio-area physician from prescribing opioids and other controlled substances and ordered him to pay $4.7 million in a case alleging violations of the Controlled Substances Act (CSA) and the False Claims Act (FCA).

    In a civil complaint filed in August 2018, the United States alleged that Gregory Gerber, MD, age 59, of Port Clinton, Ohio, who operated an office in Sandusky, unlawfully issued prescriptions without a legitimate medical basis for opioids and other controlled substances in violation of the CSA and the FCA. The complaint alleged that one patient died from an overdose of fentanyl patches prescribed by Gerber. The complaint further alleged that Gerber received kickback payments from a drug manufacturer as part of a scheme to unlawfully prescribe Subsys, a powerful opioid drug containing fentanyl, in violation of the FCA.

    “Medical professionals who knowingly facilitate the abuse of opioids violate their legal obligations,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will pursue justice against anyone who seeks to profit from unlawfully prescribing opioids.”

    “All doctors must follow the law when prescribing opioids — their patients, and the public more generally, rely on such compliance,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Gerber’s patients trusted him. But instead of safeguarding that trust, Gerber accepted payments from a drug company in exchange for prescribing dangerous, addictive drugs and wrote thousands of prescriptions that were not for a legitimate medical purpose. Our office will use all available tools — civil and criminal — to fight the opioid epidemic and protect patients and their families so that doctors like Gerber do not profit from abusing our healthcare system.” 

    “Dr. Gerber betrayed the trust placed in him and willfully violated his oath to protect the public and the provisions of the Controlled Substance Act,” said Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA)’s Detroit Field Division. “His reckless behavior contributed to the opioid crisis gripping the nation and brought suffering to many communities in northern Ohio. This ruling will hopefully deter other medical practitioners who are inclined to put profit over patient health and safety.”

    “Health care professionals who exploit opioid addiction for financial gain do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic,” said Deputy Inspector General Christian J. Schrank of Investigations of the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to work to ensure that bad actors are held accountable for such schemes in order to protect both patients and taxpayers.”

    “Ignoring the law by distributing prescriptions to opioids for illicit profit harms the communities that physicians are meant to help,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response and Services Branch. “The FBI is glad that Gerber will not be able to prescribe controlled substances ever again.”

    Gerber agreed to a consent judgment to settle the allegations in the complaint. The order entered by the court permanently prohibits Gerber from prescribing opioids or other controlled substances, permanently prohibits him from managing, owning or controlling any entity that dispenses controlled substances and requires Gerber to pay approximately $4.7 million under the FCA. Gerber was also sentenced in March to 42 months in prison and one year of home confinement in a related criminal case brought by the United States Attorney’s Office for the Northern District of Ohio.

    U.S. District Judge Jeffrey J. Helmick entered the judgment and permanent injunction in U.S. District Court for the Northern District of Ohio. In August 2018, Judge Helmick issued a temporary restraining order and preliminary injunction prohibiting Gerber from prescribing opioids or other controlled substances.

    The DEA, FBI, HHS-OIG, Ohio Attorney General’s Medicaid Fraud Control Unit, State of Ohio Board of Pharmacy and State Medical Board of Ohio investigated the case.

    Assistant U.S. Attorneys Patricia Fitzgerald and Angelita Cruz Bridges for the Northern District of Ohio and Trial Attorney Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch handled the case.

    The claims made in the complaint are allegations that the United States would need to prove by a preponderance of the evidence if the case proceeded to trial.

    View Consent Decree

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  • MIL-OSI Security: Six Plead Guilty to Pandemic Unemployment Assistance Fraud

    Source: US FBI

    CLEVELAND – Six people have pleaded guilty in a 33-count indictment with illegally obtaining nearly $3,000,000 in Federal Pandemic Unemployment Assistance (PUA) benefits using other people’s personal identifying information. The PUA program is overseen by the U.S. Department of Labor and was created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 to provide temporary benefits to workers who lost work for COVID-19-related reasons.

    According to court documents, from March 2020 to August 2021, the defendants, Clarissa Cheney, 30, of Cleveland Heights; Kevin Gilmore, 38, of Beachwood; Tiara Henderson, 37, of Lakewood; Ladessa Battle, 29, of South Euclid; Lynard Mitchell, 39, of South Euclid; and Marcelys Jones, 29, of Cleveland Heights, submitted fraudulent applications for PUA benefits to the California Employment Development Department (EDD) and other state workforce agencies around the country.

    “The pandemic created unprecedented financial challenges for millions of Americans who were unable to work because their employers were forced to cut back business operations or close entirely.  PUA was intended to assist those individuals—workers in dire need of financial support while unemployed—yet these defendants stole millions of dollars from that program,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “These guilty pleas demonstrate our office’s commitment to prosecute and hold criminally responsible those who try to scam federal relief programs, waste our tax dollars, and steal the identities of others.  We thank our law enforcement partners for helping us hold these defendants responsible for their crimes.”

    The defendants falsified application details, such as employment history and residency, to appear eligible for PUA benefits. As a result, California EDD and other agencies approved nearly $3,000,000 in unemployment insurance benefits in the defendants’ names, and those of other individuals.  The benefits were pre-loaded onto bank-issued debit cards and sent through the U.S. mail.  After receiving the debit cards, some of the defendants used the cards to make cash withdrawals at various ATMs in the Northern District of Ohio.

    “The deliberate and conniving actions to cheat a program designed to assist people who were affected by the Covid-19 pandemic is inexcusable,” said FBI Special Agent in Charge, Greg Nelsen. “Their actions, including exploiting the identities of a multitude of individuals, will have a profound and long-lasting impact. The FBI and our partners will continue to identify and investigate those who commit pandemic-related fraud and seek justice for the victims.”

    The defendants are scheduled to be sentenced in September and October 2024 and face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    “The defendants engaged in an unemployment insurance (UI) fraud scheme that targeted multiple state workforce agencies. These individuals conspired to file fraudulent UI claims in the names of other individuals, diverting vital taxpayer resources away from unemployed American workers in dire need of UI benefits. These guilty pleas affirm the U.S. Department of Labor, Office of Inspector General’s commitment to protecting the integrity of the UI program. We are grateful for our many law enforcement partners, including the U.S. Attorney’s Office,” said Dana Johnson, Acting Special Agent in Charge, Great Lakes Region, U.S. Department of Labor, Office of Inspector General.

    The Department of Labor, Office of Inspector General, and the FBI investigated this case. This case was prosecuted by Assistant U.S. Attorneys Alejandro Abreu and Scott Zarzycki.

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  • MIL-OSI Security: Fraud Charges Added Against Health Care Staffing Executive in Las Vegas

    Source: US FBI

    LAS VEGAS – A federal grand jury in Las Vegas returned a superseding indictment yesterday charging a health care staffing executive with conspiring to fix the wages of Las Vegas nurses — and then fraudulently concealing that conspiracy and the government’s investigation so that he could sell his company for over $10 million.

    According to the six-count felony indictment, Eduardo Lopez, of Las Vegas, held executive positions at three different home health agencies. For each company, Lopez oversaw recruitment, hiring, retention and assignments of nurses and other health care staff. Count one of the superseding indictment charges Lopez and other unnamed co-conspirators with agreeing to suppress and eliminate competition for the services of nurses between March 2016 and May 2019.

    Counts two through six of the superseding indictment charge Lopez with wire fraud. According to the indictment, in December 2021, Lopez sold his health care staffing company for over $10 million and falsely represented to the buyer of his company that federal law enforcement was not investigating him or his company. But, according to court documents, Lopez knew that was false. FBI special agents had questioned Lopez, served Lopez with a grand jury subpoena addressed to his company and seized his cell phone pursuant to a search warrant.

    “Wage fixing hurts workers,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will aggressively investigate and prosecute wage-fixing conspiracies and any fraudulent conduct aimed at keeping the illicit profits of such conspiracies.”

    “Today’s superseding indictment demonstrates our ongoing commitment to enforce federal antitrust laws and to ensure workers have an opportunity to compete for employment in a fair marketplace,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We will continue to work with the Antitrust Division and our law enforcement partners to protect the right of workers to earn a fair wage, and to root out wrongdoers who commit unlawful anticompetitive conduct.”

    “The FBI and its partners will not tolerate the illicit practice of fixing wages,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “As today’s indictment shows, we will continue to pursue anyone engaging in fraudulent activity and combat any attempts made to evade the consequences of those actions.”

    A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. A violation of the wire fraud statute carries a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The Antitrust Division’s San Francisco Office and the FBI’s International Corruption Unit investigated the case, with assistance from the U.S. Attorney’s Office for the District of Nevada.

    The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

    An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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  • MIL-OSI Security: Las Vegas Resident Sentenced to 21 Years in Prison for Child Sexual Exploitation

    Source: US FBI

    LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Andrew P. Gordon to 21 years in prison followed by a lifetime of supervised release for recording himself sexually assaulting a 14-year-old girl.

    Mohamed Muhina (28) pleaded guilty in November 2022 to one count of sexual exploitation of children. Muhina will be required to register as a sex offender, under the Sex Offender Registration and Notification Act (SORNA).

    According to court documents, in 2017, Muhina began communicating with a 14-year-old girl on Facebook messenger. Shortly thereafter, he drove to the victim’s residence and pulled her into the backseat of his car where he sexual assaulted her despite her pleas to stop. Between September 2017 and January 2018, Muhina sexually assaulted the victim two more times. Then, in February 2018, the victim was walking to school when Muhina grabbed her by her hair and jacket and he forced her into his car. He drove to his apartment and sexually assaulted the victim. A forensic examination of Muhina’s cell phones revealed several images and videos showing him engaged in sex acts with young girls, including the victim.

    “The defendant is a predator who actively sought out one of our most vulnerable, a 14-year-old child, and repeatedly committed sexual assaults, ignoring the victim’s cries and pleas to stop,” said United States Attorney Jason M. Frierson for the District of Nevada. “This case is another example of our office’s commitment to bringing to justice those who sexually exploit children in our communities. We will continue to work closely with our law enforcement partners to identify, prosecute, and hold accountable those who exploit children. Today’s sentence will protect children from future crimes by the defendant.”

    “I am extremely proud of the collaborative effort put forth to ensure this defendant was brought to justice,” said Special Agent in Charge Spencer L. Evans for the FBI. “Knowing that the defendant will serve the next 21 years in federal prison, ensures there is one less predator victimizing the most innocent and vulnerable members of our community. This sentencing is a success in the fight against those who exploit the vulnerable and illustrates our dedication to bring these criminals to justice.”

    The FBI and North Las Vegas Police Department investigated the case. Assistant United States Attorney Kimberly Sokolich prosecuted the case.

    This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

    Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or online at www.cybertipline.org.

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  • MIL-OSI Security: Purported Medical Assistant Convicted for Multi-Year Conspiracy to Distribute Prescriptions for Opioids

    Source: US FBI

    LAS VEGAS – A federal jury convicted a purported medical assistant for the distribution of large quantities of illegal prescriptions for opioids without a legitimate medical purpose.

    According to court documents and evidence presented during the eight-day trial, David A. Litwin (64) conspired with a licensed physician and others to sell prescriptions, including oxycodone, hydrocodone, Xanax and Soma, to persons without any legitimate medical purpose for the drugs. Over the course of several years, Litwin helped to operate a medical practice known as New Amsterdam Medical Group that purported to be a pain specialty center. However, Litwin and his co-conspirators utilized that pain specialty center to sell fake prescriptions to hundreds of people, including multiple individuals who filled the prescriptions in order to sell opioids unlawfully on the secondary market.

    On September 22, 2023, Litwin was found guilty of conspiracy to distribute oxycodone and seven counts of distribution of oxycodone. United States District Judge Kent J. Dawson presided over the jury trial, and sentencing is scheduled for December 21, 2023.

    United States Attorney Jason M. Frierson for the District of Nevada, Assistant Special Agent in Charge Kevin Adams for the DEA Las Vegas District Office, and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

    The case was investigated by the DEA and FBI. The case is being prosecuted by Assistant United States Attorneys Nadia Ahmed, Edward Veronda, and Jean Ripley.

    If you have a tip or information about illegal sales or distribution of prescription opioids, including oxycodone, hydrocodone, etc., by doctors and pharmacies call the DEA RxAbuse Tip Line at 1-877-RxAbuse (1-877-792-2873) or submit a tip online at: https://www.deadiversion.usdoj.gov/tips_online.htm.

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  • MIL-OSI Security: Northern Nevada Man Sentenced to Life in Prison for Murdering Pregnant Indigenous Woman on Reservation

    Source: US FBI

    RENO, Nev. — A Northern Nevada man was sentenced today by Chief United States District Judge Miranda M. Du to life in prison, plus 20 years in prison, for murdering a pregnant indigenous woman on the Pyramid Lake Indian Reservation in December 2020.

    According to court documents, Michael Burciaga (36) stabbed his pregnant girlfriend, a registered member of the Pyramid Lake Paiute Tribe, multiple times, causing her death and the death of their unborn child. Shortly after midnight on December 15, 2020, officers with Pyramid Lake Police Department responded to an emergency call from the victim’s daughter at the victim’s home located on the Pyramid Lake reservation in Nixon, located in Washoe County.

    Burciaga has prior convictions for Domestic Assault in Becker County, Minn.; Domestic Battery in Fernley; and Battery and Domestic Battery in Sparks.

    A jury convicted Burciaga of Murder in the First Degree within Indian Country, a violation of the Protection of Unborn Children Act, and Domestic Assault by a Habitual Offender Within Indian Country.

    “Today’s sentence illustrates our collaborative efforts to ensuring justice for the victim and holding the defendant accountable for his heinous crime,” said United States Attorney Jason M. Frierson for the District of Nevada. “The Missing or Murdered Indigenous Persons (MMIP) crisis is a priority for the Department of Justice and we will continue to work alongside Tribes and law enforcement partners in the pursuit of justice.”

    “Today’s sentencing ends a tragic story of cold-blooded murder,” said Special Agent in Charge Spencer L. Evans for the FBI. “While life in prison will not undo the crime committed by Mr. Burciaga, it will prevent him from victimizing anyone on the Pyramid Lake Indian Reservation again. I appreciate the work of our investigators and tribal partners ensuring violent offenders such as this are held accountable, and residents can feel safe in their homes.”

    This case was investigated by the FBI and Pyramid Lake Police Department. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Richard Casper prosecuted the case.

    For additional information about the Department of Justice’s efforts to address the MMIP crisis, please visit the Missing or Murdered Indigenous Persons section of the Tribal Safety and Justice website at: https://www.justice.gov/tribal/mmip.

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  • MIL-OSI Security: Las Vegas Man Sentenced to 23 Years in Prison for Committing Two Armed Carjackings, Shooting at Police During Car Pursuit, and Assaulting a Federal Corrections Officer

    Source: US FBI

    LAS VEGAS – A Las Vegas man was sentenced today by United States District Judge Gloria M. Navarro to 23 years in prison followed by three years of supervised release for two carjackings during which he brandished a firearm and shot at one victim, shooting at police officers during the vehicle pursuit, and for assaulting a federal officer while in custody.

    Justin Venegas (41) pleaded guilty to two counts of carjacking, one count of brandishing a firearm during and in relation to a crime of violence, one count of felon in possession of a firearm, and one count of assault on a federal officer which inflicts bodily injury.

    According to court documents, on August 11, 2022, Las Vegas Metropolitan Police Department (“LVMPD”) was pursuing Venegas for a robbery/carjacking that occurred on May 20, 2022.   While at an intersection, Venegas pointed a firearm at the  driver of another vehicle and to into the vehicle. He then put the firearm into the victim’s stomach and forcibly removed the victim from their vehicle. Venegas drove away in the victim’s vehicle. During the pursuit, Venegas reached out the driver’s window and fired several rounds at the front windshield of the pursuing officers’ patrol vehicle. Later, Venegas attempted to carjack a second victim. He shot at and struck the second carjacking victim using a firearm. While the pursuit continued, Venegas collided head on with a K9 police vehicle. He was placed under arrest. A search of the vehicle revealed a Smith and Wesson M&P Shield with an obliterated serial number. A National Integrated Ballistic Information Network (NIBIN) analysis showed that the firearm was the same gun that was discharged during the pursuit and at a police officer. Venegas is a convicted felon, and he is prohibited by law from possessing a firearm.

    Later, on October 1, 2022, at the Nevada Southern Detention Center, Venegas punched a detention officer in the face causing the officer to fall to the ground. The detention officer suffered facial fractures, lacerations, and a dislocated thumb.

    “The defendant will spend the next 23 years in prison for putting the public and police officers in danger with his senseless, violent actions in his attempt to evade apprehension, and for assaulting a detention officer while in custody,” said United States Attorney Jason M. Frierson for the District of Nevada. “In this case, NIBIN crime gun tracing connected the gun used in the first and second carjackings by the defendant. Together with our law enforcement partners, we will continue to combine resources to protect our communities and to bring violent offenders to justice.”

    “The defendants’ sentence should serve as a deterrent to anyone who is considering terrorizing the safety and security of our community by committing armed carjackings,” said Special Agent in Charge Spencer L. Evans for the FBI. “The sentence also reflects the severity of the crime and the commitment of the FBI, along with our federal, state, and local partners, to reduce the potential of future carjacking offenses, a major driver of violent crimes.”

    This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant United States Attorney Allison Reese prosecuted the case.

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  • MIL-OSI Security: Bergen County Man Admits Robbery of New Jersey Bank

    Source: US FBI

    CAMDEN, N.J. – A Bergen County, New Jersey, man admitted robbing a bank in Mountain Lakes, New Jersey, U.S. Attorney Philip R. Sellinger announced.

    Tony Winst, 46, of Cresskill, New Jersey, pleaded guilty before U.S. District Judge Edward S. Kiel in Camden federal court to an information charging him with bank robbery.

    According to documents filed in this case and statements made in court:

    On Nov. 17, 2023, Winst entered a bank in Mountain Lakes, New Jersey, and handed a note to a teller stating: “this is a robbery.” He claimed to have a weapon. The teller gave Winst money and he fled from the bank.

    The count of bank robbery carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000. Sentencing is scheduled for April 2, 2025.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll, with the investigation leading to the guilty plea. He also thanked the Mountain Lakes Police Department, under the direction of Chief of Police Shawn Bennett.

    The government is represented by Assistant U.S. Attorney Sean Nadel of the General Crimes Unit in Newark.

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  • MIL-OSI Security: FBI Newark Seeks Information on Drone Sightings

    Source: US FBI

    The FBI Newark, NJ State Police, and NJ Office of Homeland Security and Preparedness are asking for the public to report any information related to the recent sightings of possible drones flying in several areas along the Raritan River. Witnesses have spotted the cluster of what look to be drones and a possible fixed wing aircraft. We have reports from the public and law enforcement dating back several weeks.  
     
    Anyone with relevant information is asked to call the FBI at 1-800-CALL-FBI or submit it online at tips.fbi.gov.  

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  • MIL-OSI Security: Founder of Beverage Company Charged with Defrauding Investors of Millions of Dollars

    Source: US FBI

    NEWARK, N.J. – The founder and executive chairman of a beverage company appeared in court for lying to solicit investments in his company, U.S. Attorney Philip R. Sellinger announced.

    Todd O’Gara, 44, of Austin, Texas was charged by complaint with one count of wire fraud and appeared in court today to before U.S. Magistrate Judge Dustin Howell in Austin federal court.

    According to documents filed in this case and statements made in court:

    O’Gara, who founded and managed a beverage company, Wanu Water, Inc., raised at least $3.4 million dollars from individual victim investors. O’Gara repeatedly lied to solicit those investments and to encourage investors to maintain their investments. Among other things, O’Gara lied about the size of purchase orders from retailers and about major investments from private equity firms. As part of this fraudulent scheme, O’Gara sent investors fake documents including doctored emails and forged term sheets.

    The wire fraud charge carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.

    U.S. Attorney Sellinger added that the investigation is continuing. If you believe you are a victim of or otherwise have information concerning this scheme, please contact the FBI at newark-victim_assistance@fbi.gov.

    U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado, Newark Field Division, with the investigation.

    The government is represented by Assistant U.S. Attorneys Aaron L. Webman and Carolyn Silane of the Economic Crimes Unit in Newark.
     

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  • MIL-OSI Security: Former Assistant Dean Sentenced to 36 Months in Prison for Million-Dollar Embezzlement From Essex County Graduate School

    Source: US FBI

    NEWARK, N.J. – A former assistant dean of an Essex County graduate school was sentenced yesterday to 36 months in prison for defrauding her former employer of more than $1.3 million, U.S. Attorney Philip R. Sellinger announced.

    Teresina DeAlmeida, 59, of Warren, New Jersey and her co-conspirators, Rose Martins, 44, of East Hanover, New Jersey, and Silvia Cardoso, 61, of Warren, NJ, previously pleaded guilty to conspiracy to commit wire fraud before U.S. District Judge Julien Xavier Neals in Newark federal court.

    “The defendant abused her position of trust as an assistant dean to orchestrate an elaborate embezzlement scheme for more than a decade. In doing so, she and her co-conspirators stole more than $1.3 million intended to benefit the school and its students.  My office is committed to relentlessly prosecuting those who commit financial frauds.”

    U.S. Attorney Philip R. Sellinger

    “By choosing to utilize her position for illicit profit, Teresina DeAlmeida chose to enrich herself first and serve the students of the University last,” stated Jenifer L. Piovesan, Special Agent in Charge, IRS Criminal Investigation, Newark Field Office. “Financial fraud like this will not be tolerated and IRS Criminal Investigation will continue to work with our law enforcement partners to root out and investigate these financial crimes.”

    “Trust is an intangible thing, a faith that people who have access to large sums of money won’t steal it. DeAlmeida took funds meant for students at the university and did so for more than a decade,” FBI Acting Special Agent-in-Charge Nelson I. Delgado said. “Students and most average citizens cannot see into finances of institutions, to question where it’s going and why it’s missing. The FBI Newark and our law enforcement partners have the tools to investigate wrongdoing and hold accountable those who don’t think anyone will notice $1.3 million is missing.”

    “I am proud of the contribution of OIG Special Agents in holding former Assistant Dean DeAlmeida accountable for her criminal actions. Her willful diversion and theft of funds that were intended for the school and its students was completely unacceptable,” said John Carlo, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Eastern Regional Office.  “The OIG will continue to work with our law enforcement partners to protect the integrity of Federal education funds.”

    According to documents filed in this case and statements made in court:

    Between 2009 and July 2022, DeAlmeida, Martins, and Cardoso conspired to fraudulently misappropriate more than $1.3 million from their former employer, a graduate school of a university in Essex County, New Jersey.  During the scheme, DeAlmeida was an assistant dean responsible for financial functions, and Martins served as her assistant.  Cardoso, DeAlmeida’s sister, was also employed by the graduate school in a support staff role.  

    The defendants used a variety of methods to defraud the university.  For instance:

    •    Beginning in 2009, DeAlmeida directed a graduate school vendor to pay Martins and Cardoso as though they worked for the vendor, even though they did not perform any services.  DeAlmeida and Martins then caused the vendor to submit false invoices to the graduate school over the course of approximately four years to reimburse the vendor for the amounts fraudulently paid to Martins and Cardoso.  

    •    From 2010 through 2022, DeAlmeida and Martins directed graduate school vendors to order hundreds of thousands of dollars of gift cards and prepaid debit cards the co-conspirators used for their personal benefit, and then to submit fraudulent invoices to the school purporting to be for goods and services that were never provided.  The co-conspirators also misused DeAlmeida’s school-issued credit card to purchase hundreds of thousands of dollars of gift cards and prepaid debit cards from the school’s bookstore.  DeAlmeida routinely fraudulently approved these charges and Martins forged the signatures of other employees on internal approvals.

    •    In 2015, Martins opened a shell entity called CMS Content Management Specialist LLC.  Although CMS never rendered any services to the graduate school, Martins submitted, and DeAlmeida approved, fraudulent invoices totaling more than $208,000.  

    •    The co-conspirators also used DeAlmeida’s school-issued credit card to make tens of thousands of dollars in unauthorized personal purchases.  For example, DeAlmeida and Martins used the card to make over $70,000 in purchases at an online retailer shipped directly to their homes, including woman’s shoes, smart watches, and bed linens.  DeAlmeida and Martins fraudulently altered certain receipts before submitting them to the school for payment.  

    In addition to the prison term, Judge Neals sentenced DeAlmeida to 2 years of supervised release and ordered restitution of approximately $1,397,000.  

    U.S. Attorney Sellinger credited special agents of the Internal Revenue Services, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; special agents of the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; and special agents of the Department of Education, under the direction of Acting Special Agent in Charge John Carlo with the investigation.

    The government is represented by Assistant U.S. Attorneys Carolyn Silane and Aja Espinosa of the Economic Crimes Unit in Newark.
     

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  • MIL-OSI Security: Mercer County Man Charged with Multiple Armed Robberies of Business Owners and Causing the Death of One Victim Through Use of a Firearm

    Source: US FBI

    TRENTON, N.J. – A Mercer County man made an initial appearance on charges of three armed robberies of Trenton-area businesses, including one during which the man caused the death of a victim through use of a firearm, U.S. Attorney Philip R. Sellinger announced.

    Paul X. McNeil, 38, of Trenton, was charged by complaint with one count of conspiracy to commit Hobbs Act robbery, three counts of Hobbs Act robbery, one count of murder during and in relation to a crime of violence, one count of discharging a firearm during and in relation to a crime of violence, and two counts of brandishing a firearm during and in relation to a crime of violence. McNeil made his initial appearance before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court.

    According to documents filed in this case and statements made in court:

    McNeil targeted certain local businesses and/or business owners based upon the victims’ access to the businesses’ cash proceeds. On September 30, 2022, as an employee of an auto recycling shop in Ewing, New Jersey, was in the process of collecting the shop’s cash proceeds, McNeil and a coconspirator entered the shop. McNeil pointed a firearm at the employee before he and the coconspirator took from the employee approximately $150,000 of the shop’s cash proceeds and the employee’s lawfully registered firearm. Later that day, McNeil purchased a new car, paying $9,500 in a down payment, comprised of ninety-five $100 bills.

    On August 10, 2023, McNeil followed the owner of a Trenton cannabis shop from the shop to the owner’s residence in Lawrence Township. Moments after the cannabis shop owner entered the residence, McNeil followed the owner into the residence and robbed the owner of the cannabis shop’s cash proceeds which the owner had carried into the residence. As overheard by the cannabis owner’s spouse, who was in the residence, the owner stated to McNeil, “No, no, no … please, here, you can have it,” moments before McNeil shot and killed the owner with a firearm. In addition to taking from the owner the cannabis shop’s cash proceeds, McNeil also took from the owner jewelry the owner was wearing at the time of the robbery. Photographs recovered from McNeil’s cellphone depict McNeil wearing the owner’s jewelry, which was recovered later from McNeil’s vehicle.

    On September 23, 2023, McNeil entered the Ewing residence of an owner of a Trenton-area house-flipping business. Upon entering the residence, McNeil encountered three victims, including two minors. The owner of the business was not in the residence at the time.  McNeil pointed a handgun at the three victims and demanded money. McNeil then bound the victims’ hands behind their backs with zip ties and forced them at gunpoint into the basement, while he searched the residence. McNeil took approximately $4,500 in cash proceeds from the house- flipping business as well as some personal items belonging to the business owner and the three victims. Law enforcement later recovered from McNeil’s residence approximately $4,000 in cash and some of the personal items belonging to the business’s owner and the three victims.

    “These charges allege that the defendant targeted several local business owners for robbery and murdered one of them. The U.S. Attorney’s Office, together with its federal and local law enforcement partners, will spare no effort to investigate and prosecute violent offenders who target the businesses and residents of New Jersey.” 

    U.S. Attorney Philip R. Sellinger 

    “We allege McNeil went into a Ewing business, held it up at gun point, and while the owner was attempting to hand over money McNeil shot and killed him. We also have evidence showing he also took part in several other brutal attacks and robberies. Violent offenders should take this investigation as a warning that the FBI Newark and our law enforcement partners are pursuing criminals who believe they can act with impunity and not face justice,” Acting SAC Nelson I. Delgado said.

    The count of murder during and in relation to a crime of violence is punishable by death, or a term of imprisonment up to life. The counts of Hobbs Act robbery and conspiracy to commit Hobbs Act robbery each carry a maximum potential penalty of 20 years in prison.  The brandishing and discharging of a firearm during and in relation to a crime of violence counts each carry a maximum potential penalty of life in prison, where the brandishing count has a mandatory minimum sentence of 7 years in prison and the discharging count has a mandatory minimum sentence of 10 year in prison, which sentences must run consecutively to any other term of imprisonment imposed. Each count also carries a fine of up to $250,000.

    U.S. Attorney Sellinger credited special agents and task force officers of the Federal Bureau of Investigation, under the direction of Acting SAC Nelson I. Delgado, members of the Mercer County Prosecutor’s Office Homicide Task Force, under the direction of Acting Mercer County Prosecutor Theresa L. Hilton, and detectives with the Ewing Police Department, under the direction of Chief Albert Rhodes, with the investigation.

    The government is represented by Assistant U.S. Attorney Tracey Agnew and Special Assistant Laura Sunyak of the U.S. Attorney’s Office’s Criminal Division in Trenton.

    The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

    24-447

    Defense counsel: Benjamin West, Esq.

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  • MIL-OSI Security: Syracuse Man Sentenced to 84 Months in Federal Prison for Drug and Firearm Crimes

    Source: US FBI

    SYRACUSE, NEW YORK – Anthony Beverly, age 34, of Syracuse, was sentenced today to serve 84 months in federal prison following his convictions for possession with intent to distribute a controlled substance and possession of a firearm and ammunition by a prohibited person (convicted felon).

    United States Attorney Carla B. Freedman, Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and Joseph L. Cecile, Chief of the Syracuse Police Department (SPD), made the announcement.

    As part of his previous guilty plea, Beverly admitted that on October 26, 2023, he knowingly possessed in his Onondaga County apartment three pistols, extended ammunition magazines, and approximately 615 rounds of ammunition of various calibers. Beverly further admitted that when he possessed the firearms and ammunition, he knew that he had previously been convicted of a felony. Specifically, in 2015 he was sentenced in Onondaga County Court to 2 to 6 years’ imprisonment as a result of his conviction of possession of a forged instrument in the first degree. Beverly further admitted that in his apartment he possessed various controlled substances which he intended to distribute to others, including cocaine base, powder cocaine, N,N-Dimethylpentylone (sold as “molly”), fentanyl, and methamphetamine.

    Chief United States District Judge Brenda K. Sannes also imposed a 3-year term of supervised release to follow his term of imprisonment.

    The FBI and Syracuse Police Department investigated the case. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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  • MIL-OSI Security: Baldwinsville Man Pleads Guilty to Sexual Exploitation of a Child and Distribution and Receipt of Child Pornography

    Source: US FBI

    Kenneth Koegel, Jr. Has a Prior Conviction for Sexual Abuse in the 1st Degree Involving a 6-Year-Old

    SYRACUSE, NEW YORK – Kenneth Koegel, Jr., age 40, of Baldwinsville, New York pled guilty today to seven (7) counts of Sexual Exploitation of a Child, one count of Commission of a Felony Offense Involving a Minor by a Registered Sex Offender, one count of Distribution of Child Pornography, and one count of Receipt of Child Pornography. United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.

    As part of his guilty plea today, Koegel admitted that he was previously convicted in 2004 in Monroe County (New York) Court of Sexual Abuse in the First Degree for exposing his penis to a 6-year-old girl in a public park and touching her vagina with his hand, and that he was required to register as a sex offender because of that conviction. He further admitted that starting in or about 2014 and continuing until October 2022, he sexually abused a girl from the time she was approximately 2 years old until she was approximately 9 years old. During that time, Koegel created numerous sexually explicit images and videos depicting the sexual abuse of his victim, including Koegel subjecting her to multiple sex acts. He also used a social messaging application to distribute the material he produced to someone else, with whom he also traded thousands of other child pornography files.

    Sentencing is scheduled for March 5, 2025, before United States District Judge Glenn T. Suddaby. If the Court accepts the parties’ agreed-upon disposition, Koegel will be sentenced to serve between 35 and 50-years imprisonment, with a lifetime term of supervised release to follow. Koegel also will have to pay restitution to the victim of his exploitation and to the victims in whose depictions he trafficked. He also will continue to be required to register as a sex offender upon release.

    The case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force – comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police. The case is being prosecuted by Assistant United States Attorneys Michael D. Gadarian and Adrian S. LaRochelle as part of Project Safe Childhood.

    Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

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  • MIL-OSI Security: Rapids Theatre Owner and Associate Named in Superseding Indictment for Defrauding the Economic Injury Disaster Loan and Paycheck Protection Programs Out of More Than $750,000

    Source: US FBI

    BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a superseding indictment charging John L. Hutchins, 70, of Lewiston, NY, and Roberto Soliman, 40, of Niagara Falls, NY, with conspiracy to commit wire fraud and bank fraud, bank fraud, and wire fraud. In addition, defendant Hutchins is charged with making a false statement and defendant Soliman is charged with engaging in monetary transactions with criminally derived property. The charges carry a maximum penalty of 30 years in prison.

    Assistant U.S. Attorneys Paul E. Bonanno and Douglas A. C. Penrose, who is handling the case, stated that the superseding indictment charges Hutchins and Soliman with filing fraudulent loan applications under the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and the Shuttered Venue Operators Grant (SVOG). The loans available for these programs were designed to provide emergency financial assistance pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES Act). The defendants applied for loans under the following companies owned by defendant Hutchins:

    •              Rapids Theatre Niagara Falls, USA, Inc.

    •              1711 Main, LLC

    •              Bear Creek Entertainment, LLC

    •              Hutch Enterprises, LLC

    •              The Hutchins Agency, LLC

    •              CWE Entertainment, Corp. (owned by defendant Soliman)

    Between March and August 2020, Hutchins and Soliman received four Economic Injury Disaster Loans totaling $749,500.00. In support of each of the loans, Hutchins and Soliman submitted false revenue and expense figures for the businesses on the loan applications. Hutchins and Soliman used the loan funding for their own personal expenses, such as payments for residential properties in North Tonawanda, NY, and Lewiston, NY, a 2020 BMW, a 2020 Cadillac, homeowner association fees on a Florida condominium, and payments to relatives.

    In addition, Hutchins and Soliman applied for and received two Paycheck Protection Program loans totaling $115,978.

    In November 2020, Hutchins is accused of making a false statement to a Special Agent of the Federal Bureau of Investigation and to an Investigator of the United States Attorney’s Office, falsely denying applying for, or authorizing anyone to apply for, any Economic Injury Disaster Loans or Paycheck Protection Program loans, with the possible exception of one PPP loan for Rapids Theater.

    Soliman is also accused of engaging in monetary transactions with criminally derived property for using the fraudulent loan proceeds to pay personal expenses.

    The superseding indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge Thomas Fattorusso, U.S. Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations, and the New York State Office of Professional Discipline. 

    The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.  

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  • MIL-OSI Security: Lackawanna Man Pleads Guilty to His Role in Kidnapping Conspiracy Attempting to Force Sister to Marry in Yemen

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Waleed Abughanem, 32, of Lackawanna, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to misprision of felony, which carries a maximum sentence of three years in prison and a fine of $250,000.

    Assistant U.S. Attorneys Charles M. Kruly and Maeve E. Huggins, who are handling the case, stated that Abughanem is the son of Khaled Abughanem and the brother of Adham Abughanem. Waleed Abughanem has several other siblings, including an adult sister (Victim). On September 1, 2021, the Victim traveled from Lackawanna to Guadalajara, Mexico, to temporarily stay with her fiancé, whom she had known for several years. The Victim did so out of fear that family members would require her to enter into a non-consensual arranged marriage. Khaled and Adham Abughanem, and the Victim’s  mother traveled to Guadalajara, and told the Victim that she would be allowed to marry her fiancé if she returned to the United States, which the Victim agreed to do. Waleed Abughanem knew that Khaled and Adham Abughanem did not intend to allow the Victim to marry her fiancé after she returned to the United States.

    After the Victim returned to the United States, Khaled, Adham, and Waleed Abughanem restricted her freedom of movement and forced her to stay in the Abughanem family’s Lackawanna residence for several weeks in September and October 2021. In October 2021, Khaled and Adham tricked the Victim into thinking that she would be permitted to marry her fiancé if she traveled with Khaled and Adham Abughanem, and other family members to Egypt, and later to Yemen. Waleed Abughanem drove the Victim and other family members to an airport in Cleveland, Ohio, for the purpose of traveling to Egypt. Khaled and Adham Abughanem intended to find a man for the Victim to enter into a non-consensual arranged marriage, which Waleed Abughanem was aware of.

    The Victim was held involuntarily in Cairo, Egypt and then in Sana’a, Yemen, from October 2021 until April 6, 2023. During this time, she did not have free access to her United States passport, and, as an unmarried woman, the Victim was not permitted to freely travel or leave Yemen without the approval of family members. Waleed Abughanem knew the Victim was being held involuntarily, and during some of this period, he was present in Yemen. When he was not present in Yemen, Waleed Abughanem instructed his wife to monitor and supervise the Victim. In December 2022, Waleed Abughanem traveled from Yemen to the United States. When questioned by U.S. Customs and Border Protection as to the whereabouts of his siblings, Waleed Abughanem told the CBP Officer that the Victim was in the United States. By making a false statement, Waleed Abughanem concealed that the Victim had been kidnapped and was being involuntarily held in Yemen.

    Charges remain pending against Khaled and Adham Abughanem. They are scheduled to go to trial in October, 2024.

    The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the U.S. Department of State’s Diplomatic Security Service, under the direction of Diplomatic Security Director Carlos Matus and Deputy Assistant Secretary Paul Houston. Additional assistance was provided by the Lackawanna Police Department, under the direction of Chief Mark Packard, Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and CPB in Boston, Massachusetts.

    Sentencing is scheduled for January 24, 2025, before Judge Sinatra.

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  • MIL-OSI Security: South Carolina Woman Pleads Guilty to $1.7 Million Embezzlement Scheme

    Source: US FBI

    CHARLOTTE, N.C. – Kristin Turney, 54, of Catawba, South Carolina, pleaded guilty in federal court today to wire fraud for embezzling more than $1.7 million from her employer, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, joins U.S. Attorney King in making today’s announcement.

    According to court documents, from 2016 to 2023, Turney executed a scheme to defraud her employer, a Charlotte-based company, by embezzling more than $1.7 million. Turney was in charge of the company’s financial matters, including bank accounts, payroll, accounts payables and receivables, and tax filings. As part of the scheme, Turney misused her access and control over the company’s bank accounts and books and records to write company checks to herself without proper approval or authorization and then deposited the checks into bank accounts under her control. As a result, Turney caused at least 1,000 fraudulent and unauthorized deposits totaling more than $1.7 million to be made from the bank account of the victim company to Turney’s bank account. Turney then covered up the fraud by, among other things, making false accounting entries in the company’s books and records, providing false information to the company’s tax return preparer, and giving false information to the company’s owner and employees. Turney generally spent the embezzled funds to pay for personal expenses, that included hundreds of thousands of dollars in shopping trips, car payments, mortgage payments, tuition payments, and vacation expenses.

    The wire fraud charge carries a maximum sentence of 20 years in prison and a $250,000 fine.

    In making today’s announcement, U.S. Attorney King thanked the FBI for their investigation of the case.

    Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.

     

     

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  • MIL-OSI Security: Insurance Mogul Pleads Guilty to $2 Billion Fraud and Money Laundering Scheme

    Source: US FBI

    CHARLOTTE, N.C. – A Florida man pleaded guilty today to conspiracy to commit offenses against the United States and conspiracy to commit money laundering in connection with a scheme to defraud insurance regulators and policyholders through a web of companies based in North Carolina, Bermuda, Malta, and elsewhere, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    According to court documents, from no later than 2016 through at least 2019, Greg Lindberg, 54, of Tampa, conspired with others to defraud various insurance companies, other third parties, and ultimately thousands of insurance policyholders. Lindberg and others conspired to deceive the North Carolina Department of Insurance and other regulators, evaded regulatory requirements meant to protect policyholders, concealed the true financial condition of his companies, and improperly used insurance company funds for his personal benefit. Lindberg and his co-conspirators caused companies he controlled to invest more than $2 billion in loans and other securities with his own affiliated companies and laundered the proceeds of the scheme. As set forth in the indictment, Lindberg directed the scheme and personally benefitted from the fraud in part by “forgiving” more than $125 million in loans to himself from the insurance companies that he controlled.

    To carry out the conspiracies, Lindberg and others engaged in circular transactions among Lindberg’s web of entities using insurance company funds and made and caused to be made various materially false and misleading statements and representations to and omitted material information from regulators, various ratings agencies, insurance companies, insurance policyholders, and others regarding these transactions.

    As a result of Lindberg’s conduct, his insurance companies, third-party entities, and policyholders suffered substantial financial hardship, and some of his insurance companies have been placed in rehabilitation and liquidation.

    “Greg Lindberg and his co-conspirators misused $2 billion of company funds in their international scheme to defraud corporate victims, regulators, and policyholders,” said Principal Deputy Assistant Attorney General Nicole Argentieri, head of the Justice Department’s Criminal Division. “Thousands of policyholders suffered substantial financial hardship as a result of Lindberg’s fraud scheme, which left multiple companies in or on the brink of liquidation. The Justice Department will not hesitate to hold corporate executives accountable when they threaten critical sectors of the economy, like the insurance industry, to enrich themselves.”

    “Lindberg created a complex web of insurance companies, investment businesses, and other business entities and exploited them to engage in millions of dollars of circular transactions. Lindberg’s actions harmed thousands of policyholders, deceived regulators, and caused tremendous risk for the insurance industry,” said U.S. Attorney King. “Today’s guilty plea affirms our commitment to protecting the public from predatory financial schemes and bringing to justice those who betray public trust for personal gain.”

    “Lindberg’s elaborate network of investments, insurance companies, and financial deals was designed to exploit the insurance system and drain millions from policyholders to enrich himself at the public’s expense,” said Special Agent in Charge Robert M. DeWitt of the FBI Charlotte Field Office. “The FBI remains steadfast in our commitment to root out financial fraud.”

    Lindberg pleaded guilty to one count of conspiracy to commit offenses against the United States, including wire fraud, investment adviser fraud, and crimes in connection with insurance business, and one count of money laundering conspiracy. He faces a maximum penalty of five years in prison on the conspiracy to commit offenses against the United States count and 10 years in prison on the money laundering conspiracy count. In addition to pleading guilty to these charges, on May 15, following a retrial, Lindberg was convicted by a federal jury in Charlotte of conspiracy to commit honest services wire fraud and bribery concerning programs receiving federal funds for orchestrating a bribery scheme involving independent expenditure accounts and improper campaign contributions, aimed at bribing the elected North Carolina Commissioner of Insurance to influence the regulation of Lindberg’s insurance companies. A sentencing date has not yet been set. A federal district court judge will determine Lindberg’s sentence in both cases after considering the U.S. Sentencing Guidelines and other statutory factors in each case. Lindberg was remanded into the custody of the United States Marshals.

    In December 2022, one of Lindberg’s top executives, Christopher Herwig, pleaded guilty in a related case to conspiring with Lindberg and others to commit offenses against the United States, including wire fraud, investment advisor fraud, and money laundering, as well as to the making of false statements in the business of insurance. Herwig is also awaiting sentencing.

    The FBI Charlotte Field Office is investigating the case. The Securities and Exchange Commission’s Chicago Regional Office provided valuable assistance to the investigation.

    Assistant U.S. Attorneys Dan Ryan and Taylor Stout for the Western District of North Carolina and Trial Attorney Lyndie Freeman of the Criminal Division’s Fraud Section are prosecuting the case.

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  • MIL-OSI Security: Mooresville Man Pleads Guilty to Federal Charges for Multimillion-Dollar Investment Scheme and COVID-19 Fraud

    Source: US FBI

    CHARLOTTE, N.C. – Steven Andiloro, 53, of Mooresville, N.C., pleaded guilty today to securities fraud and wire fraud for orchestrating a multimillion-dollar investment fraud scheme and fraudulently obtaining more than $2.6 million in COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

    Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI) in North Carolina, and Hannibal “Mike” Ware, Inspector General of the Small Business Administration, Office of Inspector General (SBA-OIG), join U.S. Attorney King in making today’s announcement.

    According to the plea agreement and documents filed in the case, from 2018 to 2021, Andiloro operated an investment fraud scheme and induced victims to invest money in businesses that were both real and fictitious, by making false representations about where and how the money would be invested. For example, some of Andiloro’s victims were told their money would be invested into his car service business. Other victims believed their money would be invested into a non-existent marijuana dispensary business. Contrary to representations made to victims, Andiloro did not invest the money as promised. Instead, Andiloro used the funds to pay for personal expenses and to make Ponzi-style payments to other investors.

    In addition to the investment scheme, Andiloro also engaged in COVID-19 fraud. Court records show that, from April 2020 to March 2021, Andiloro obtained funds from the Paycheck Protection Program (PPP) by submitting fraudulent applications for disaster relief loans intended for businesses that suffered economic hardship due to the pandemic. To obtain the PPP funds, Andiloro submitted applications that contained false financial information about his businesses, including fake employment data and inflated revenues, costs, and payroll expenses. Andiloro received more than $2.6 million in disaster relief funds, which he used to fund his personal lifestyle and to make payments in furtherance of the investment fraud scheme.

    Andiloro was released on bond. The securities fraud and the wire fraud offense each carry a maximum prison sentence of 20 years. A sentencing date has not been set.

    In making today’s announcement, U.S. Attorney King thanked the U.S. Secret Service, the FBI, and the SBA-OIG for the investigation which led to the charges.

    Assistant U.S. Attorneys Graham Billings and Katherine Armstrong with the U.S. Attorney’s Office in Charlotte 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 U.S. Attorneys’ Offices and 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 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 www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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  • MIL-OSI Security: Charlotte Man is Sentenced to Prison for Robbing a Convenience Store at Gunpoint

    Source: US FBI

    CHARLOTTE, N.C. – Jonah Terrell Bryant, 29, of Charlotte, was sentenced today to seven years in prison followed by three years of supervised release for the armed robbery of a local convenience store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.  

    Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte-Mecklenburg Police Department (CMPD), join U.S. Attorney King in making today’s announcement.

    According to court documents and information presented at court hearings, on August 18, 2022, at approximately 6:19 a.m., CMPD officers were dispatched to an armed robbery call at the Circle K convenience store located at 10000 N. Tryon Street, in Charlotte. The store clerk had called 911 to report the crime. When CMPD officers arrived at the scene, they spoke with the store clerk who said that the robber had walked up to the counter and asked to buy a cigar. When the store clerk put the cigar on the counter and rang up the sale, the robber pointed a firearm at the clerk and demanded money.  The store clerk told the robber that he didn’t have access to the safe. The robber then ordered the store clerk to open the drawer and proceeded to come around the counter and grab the money that was in the register.

    According to filed court documents, during the investigation, law enforcement used video surveillance footage to identify Bryant’s white Dodge Charger and a fingerprint recovered from the scene to determine the robber’s identity. CMPD officers arrested Bryant on August 26, 2022, while he was driving the white Dodge Charger. In the front center console of the vehicle, law enforcement found a black 9mm semi-automatic pistol with a round in the chamber and rounds in the attached magazine.

    On October 26, 2023, Bryant pleaded guilty to possession and brandishing of a firearm in furtherance of a crime of violence. Bryant is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.

    The FBI and CMPD investigated the case.

    Assistant U.S. Attorney David Kelly of the U.S. Attorney’s Office in Charlotte prosecuted the case.

     

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