NewzIntel.com

Category: Intelligence

  • MIL-OSI Security: Ten Indicted in $2.7 Million Little Rock Fraud Ring

    Source: US FBI

          LITTLE ROCK—Ten defendants have been indicted for their roles in a bank fraud conspiracy that involved theft of pandemic unemployment funds. Khi Simms, 27, of Alexander, Arkansas, was ordered to remain in federal custody late yesterday afternoon after a detention hearing held before United States Magistrate Judge J. Thomas Ray.

          Three other defendants, Brelyn London, 27; Karl Harris, 26; and Deuntae Diggs, 26; all of Little Rock, are also in custody awaiting trial. The remaining six defendants, Madison Clark, 24, of Alexander; Keshoun Coleman, 23; Derrick Harris, 19; Terence Holman, 27; Brandon Shavers, 29; and Quentin Watson, 27; all of Little Rock, have been released on bond to await trial, which is scheduled for April 18, 2022.

          The indictment alleges that the defendants used unemployment debit cards, which were designed to distribute pandemic unemployment assistance made available by the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), to withdraw funds to which they were not entitled. According to the indictment, Madison Clark worked as a contract employee with a bank who had a role in distributing these unemployment debit cards for the state of California’s Employment Development Department.

          The indictment alleges that Clark used her access to issue debit cards, remove fraud blocks, and add credits to unemployment debit card accounts, resulting in approximately $2.7M in losses as calculated to this point in the investigation. Clark and Simms, and others Simms recruited, then used fraudulent debit cards to withdraw the funds Clark made available.

          All ten defendants are charged with conspiracy to commit bank fraud, which carries a maximum penalty of 30 years imprisonment, a fine of up to $1M, and not more than five years of supervised release. All ten defendants are also charged with wire fraud, which carries a maximum penalty of 20 years imprisonment, a fine of up to $250,000, and not more than five years of supervised release. The case is being investigated by the FBI and prosecuted by Assistant United States Attorney Allison W. Bragg.

          An indictment contains only allegations. Defendants are presumed innocent unless and until they are proven guilty.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Jury Finds Little Rock Man Guilty of Sex Trafficking; Distribution and Production of Child Pornography

    Source: US FBI

          LITTLE ROCK—A Little Rock man has been convicted of four sex offenses at the conclusion of a three-day trial. A federal jury found KeShawn Boykins, 27, guilty on all four counts for which he was indicted: two counts of sex trafficking, distribution of child pornography, and production of child pornography.

          The jury returned their verdict this afternoon after deliberating for just under three hours. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Boykins at a later date. 

          “This defendant physically abused his victims in order to maintain control over them and profit from the sexual acts he forced them to perform,” said Jonathan D. Ross, United States Attorney for the Eastern District of Arkansas. “Today’s verdict sends a clear message to those who engage in these violent acts: you will be caught, and you will be prosecuted to the fullest extent available to us under federal law.”

          Testimony during the trial established that in October 2018, a 19-year-old female identified as H.E. notified employees at Walmart in Maumelle, Arkansas, that she needed to escape from the man she was with. The employees contacted police, and H.E. told law enforcement she had met Boykins five days earlier and exchanged numbers. H.E. had been kicked out of her parents’ home, and Boykins offered for her to live with him, which she agreed to do.

          When H.E. arrived at Boykins’ apartment, she learned he was living with a 17-year-old female, identified as T.M., an adult woman, and others. The defendant made a profile for H.E. on an online dating website. Two days after moving in, the defendant told H.E. she had two “dinners” to attend. T.M. had already told H.E. that these dates meant H.E. would be expected to have sex for money. H.E. testified at trial that when she told Boykins she did not want to go, he threw her on the floor, choked her, and continued to physically abuse her. H.E. escaped during a trip to Walmart the following day.

          T.M. testified at trial that the defendant used an online dating website to arrange dates for her, and that if she came back with less money than Boykins expected, he would hit her. He never allowed her to keep any of the money and, due to her repeated attempts to leave, he routinely physically abused her.

          Evidence at trial indicated that Boykins’ phone contained multiple messages in which he arranged dates for both T.M. and H.E. He sent sexually explicit photos of both T.M. and H.E. while attempting to set up dates. The photos of T.M., taken when she was a minor, led to Boykins’ conviction on the child pornography charges.

          “Mr. Boykins produced child sexual abuse material and lured a vulnerable minor into the reprehensible world of sex trafficking,” said FBI Little Rock Special Agent in Charge James A. Dawson. “His abominable actions highlight the pervasive threat Arkansas children and families face on a daily basis. FBI Little Rock will continue to work with our local police partners and federal prosecutors to protect our communities from vile child predators.”

          The statutory penalty for sex trafficking ranges from not less than 15 years imprisonment up to life imprisonment. The statutory penalty for distribution of child pornography is not less than five years and not more than 20 years imprisonment. The statutory penalty for production of child pornography is not less than 15 years imprisonment and not more than 30 years imprisonment. All offenses of conviction include a potential penalty of not more than a $250,000 fine and not less than five years of supervised release.

          The investigation was conducted by the FBI, and the case was prosecuted by Assistant United States Attorneys Kristin Bryant and Benecia Moore.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: FBI Little Rock Warns of Increase in Targeted Sextortion Schemes

    Source: US FBI

    FBI Little Rock has noted an increase in sextortion schemes targeting children. The FBI has received numerous reports of predators posing as young girls on social media to coerce young boys into sending sexual videos of themselves and then extorting money from these victims.

    Here’s how this disturbing scheme works:

    1. A predator (posing as a young girl on social media) uses deception and manipulation to convince a young male, usually 13 to 17 years old, to engage in explicit sexual activity over video chat.
    2. The video is secretly recorded and saved by the predator.
    3. The predator then reveals they have saved the recordings and attempts to extort money from the juvenile victim by threatening to post the videos on various social media pages.
    4. To receive money, the predator may ask for bank account login information or request gift cards.

    Sextortion is a crime. The coercion of a child by an adult to produce child sexual abuse material (CSAM) carries heavy penalties, including life sentences for offenders. To make the victimization stop, children typically notify someone—normally a parent, teacher, caregiver, or law enforcement. The embarrassment children feel from the activity they were coerced to engage in is what usually prevents them from coming forward. Sextortion offenders frequently have dozens of victims around the world, so coming forward to help law enforcement identify a predator may prevent countless future incidents of sexual exploitation.

    Here are some tips to protect adults and children online:

    • Parents should be selective about what they share online. If social media accounts are open to everyone, offenders can easily learn about parents and their children, and then use that information for predatory purposes.
    • Be wary of anyone you encounter online. Block or ignore messages from strangers.
    • People can pretend to be anyone online. Videos and photos are not proof that a person is who they claim to be.
    • Be highly suspicious if someone you meet on a game or app asks you to start communicating with them on a different platform.
    • Encourage children to report suspicious behavior to a trusted adult.

    If you know someone who may be a victim of sextortion in Arkansas:

    1. Contact FBI Little Rock at 501-221-9100 or the National Center for Missing and Exploited Children (1-800-THE-LOST).
    2. Do not delete anything before law enforcement is able to review it.
    3. Tell law enforcement everything about the online encounters. It may be embarrassing, but it is necessary to find the predator.

    MIL Security OSI –

  • MIL-OSI Security: Jury Convicts Monticello Man of Selling Methamphetamine Multiple Times

    Source: US FBI

          LITTLE ROCK—A Monticello man has been convicted of selling methamphetamine three different times in 2018 following a two-day trial that featured videos of all three sales. A federal jury convicted Ramien “Rambo” Collins, 40, on all three counts for which he was indicted.

          The jury returned their verdict Wednesday morning after deliberating for approximately 30 minutes. United States District Judge James M. Moody, Jr., presided over the trial, and Judge Moody will sentence Collins at a later date. Collins, based on his charges, criminal history, and the jury’s verdict, faces a statutory minimum sentence of 10 years to life imprisonment, and an anticipated recommended sentencing range of 360 months to life in federal prison.

          A grand jury indicted Collins on September 5, 2019, on three counts of distribution of more than 50 grams of actual methamphetamine for transactions that occurred in September and November 2018. Testimony during the trial established that in 2018 the FBI developed a confidential informant who was being supplied with multiple pounds of cocaine and methamphetamine by Collins. The informant then made three purchases directly from Collins three different times—one-quarter pound of methamphetamine on September 12 and September 26, and three ounces of methamphetamine on November 7.

          At trial the jury heard evidence that Collins had previously been convicted of a federal drug trafficking crime and was on federal supervised release when he was selling methamphetamine in 2018.

          All of Collins’s offenses of conviction, in addition to the imprisonment ranges, include a potential penalty of not more than a $10,000,000 fine and not less than five years of supervised release.

          The investigation into Collins was part of the larger “Quack Attack” operation that resulted in the arrests of 15 defendants. During the course of Operation Quack Attack, investigators conducted 58 controlled purchases of drugs and executed two search warrants. Authorities seized more than 2.5 kilograms of methamphetamine, 229 grams of cocaine, 200 grams of crack cocaine, 128 grams of marijuana, and 6 firearms, as well as almost $17,000 in cash.

          This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

          The investigation into Collins was conducted by the FBI, the 13th Judicial Drug Task Force, and the Arkansas State Police, and the case was prosecuted by Assistant United States Attorneys Julie Peters and Chris Givens.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Oklahoma Man Sentenced to 12 Years in Prison

    Source: US FBI

          LITTLE ROCK—An Oklahoma man has been sentenced to 12 years in prison for his role in a conspiracy that resulted in the trafficking of firearms to Mexican cartels. Andrew Scott, Pierson, 46, of Jay, Oklahoma, was sentenced this afternoon by United States District Judge Brian S. Miller.

          In May 2017, an Arkansas resident received a shipment of firearm components that had been sent to him for cerakoting, a process in which a polymer-ceramic coating is added to a firearm or its parts to improve durability. The parts appeared to be 80% Colt lower receivers, and this individual recognized these firearm parts as counterfeit. He contacted law enforcement. The counterfeit receivers were traced to an organization in Laredo, Texas, which was transporting firearm parts to Pierson in Nuevo Laredo, Mexico. Pierson assembled the parts into functioning weapons for the Cartel Del Noreste (CDN) and Cartel Jalisco Nueva Generacion (CJNG).

          Pierson was arrested at the southern United States border on December 10, 2018. Pierson admitted to ordering and receiving firearm parts from the United States and manufacturing automatic weapons in Mexico for the CDN and CJNG cartels. Law enforcement later confirmed cartel firearm availability was impaired following Pierson’s arrest.

          On September 3, 2019, a federal grand jury indicted Pierson and seven others for their involvement conspiracies to traffic in counterfeit goods and to violate the Arms Export Control Act. Five codefendants have previously pleaded guilty, and one co-defendant remains a fugitive. In November 2021, Pierson pleaded guilty to Count 2 of the Fourth Superseding Indictment, conspiracy to violate the Arms Export Control Act. 

          “Mr. Pierson’s participation in the exportation and manufacturing of illegal firearms to Mexican cartels is an inexcusable contribution to the violence carried out by these groups,” said United States Attorney Jonathan D. Ross. “We are committed to prosecuting any case that will help prevent violent criminal organizations from obtaining firearms.”

          “Our Special Agents worked diligently on this investigation to intercept illegal weapon components being trafficked to criminal organizations in Mexico,” said Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Kurt Thielhorn. “Our goal is to disrupt and dismantle the illegal activity and this sentencing sends a message to those who seek to aid violent criminals that it will not be tolerated.  ATF works aggressively to identify and investigate individuals who arm the ruthless organizations that are responsible for a majority of the extreme violence in Mexico.”

          “The U.S. Postal Inspection Service values our law enforcement partners and the U.S. Attorney’s Office in the Eastern District of Arkansas who helped bring this investigation to a successful conclusion,” said Thomas Noyes, Inspector in Charge of the Fort Worth Division. “Illegal shipments of weapons threaten the safety of all our communities. These crimes are a priority for Postal Inspectors and demonstrate the importance of our mission that includes the safeguarding of the Postal Service, its customers, and preventing the illegal use of the U.S. Mail.” 

          This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

          Essential support and coordination for Operation Thor’s Hammer was supplied by Special Operations Division (SOD) personnel, including assigned agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Drug Enforcement Administration, and attorneys from the Narcotic and Dangerous Drug Section and Money Laundering and Asset Recovery Section. The United States Postal Inspection Service and the Pine Bluff Police Department were also instrumental in the investigation, with assistance from Homeland Security Investigations and the FBI. The case was prosecuted by Assistant United States Attorney Anne Gardner.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Florida Man Sentenced for Misleading Federal Agents

    Source: US FBI

          LITTLE ROCK—A Florida man was sentenced today for lying to federal agents. Steve Hill, 57, was sentenced to 18 months in prison and ordered to forfeit $345,727.15 by United States District Judge Brian S. Miller.

          Formerly of the Memphis area, Hill spent nearly a quarter century working in the medical sales industry for various Fortune 500 companies, during which time he received standard compliance training on the Anti-Kickback Statute. In 2014, then working under Brad Duke of Little Rock, Hill began to promote expensive compounded prescription drugs covered by TRICARE. Hill operated on a commission basis, earning a fixed percentage of whatever TRICARE paid for the drugs.

          To generate sales, Hill encouraged a Memphis area doctor to prescribe the expensive compounded drugs by agreeing to share his commission on the doctor’s prescriptions through payments to the doctor’s spouse. Most of Hill’s payments would eventually be routed to a Tennessee shell corporation formed under the spouse’s name. Within a year, Hill’s arrangement succeeded in generating over $1 million in TRICARE compounded prescription drug claims, earning Hill $345,727.15.

          Federal agents investigating the case discovered the connection between Hill, the shell corporation, the spouse, and the doctor. In August 2017, federal agents visited Hill’s Memphis area home to discuss his promotion of compounded prescription drugs. When asked about his financial dealings with the spouse, Hill denied paying the spouse anything in relation to the doctor’s prescriptions.

          The investigation was conducted by the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the case was prosecuted by Assistant United States Attorney Alexander D. Morgan.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Texarkana Man Sentenced to 14 Years in Federal Prison for Drug Trafficking

    Source: US FBI

    TEXARKANA – A Texarkana man was sentenced today to 168 months in prison followed by three years of supervised release on one count of Possession with the Intent to Distribute Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Texarkana.

    According to court records, Officers with the Texarkana Police Department began investigating, 33 year old, Terron Jerome Pearse, after receiving information that a felony warrant had been issued for his arrest.  On October 12, 2020, officers located and attempted to make contact with Pearse, while he sat in a parked vehicle at his residence. As officers approached Pearse, he ran inside his residence and locked the door.  Knowing that Pearse was on state parole, and had an active search wavier on file, officers searched Pearse’s vehicle.  Inside Pearse’s vehicle, officers located a backpack that contained approximately 611 grams (or about 1.34 pounds) of suspected methamphetamine. While officers were making attempts to get Pearse to come out of the residence, he fell through the ceiling and was taken into custody.

    U.S. Attorney David Clay Fowlkes made the announcement.

    The Texarkana Police Department, the Bi-State Narcotics Task Force and the FBI investigated the case.

    Assistant U.S. Attorney Graham Jones prosecuted the case.

    MIL Security OSI –

  • MIL-OSI Security: FBI Field Offices Warn of Numerous Targeted Sextortion Schemes in Southern Arkansas and Northern Louisiana

    Source: US FBI

    The FBI has received numerous reports of predators posing as children on social media to coerce minors into sending sexual videos of themselves and then extorting money from these underage victims. The FBI Little Rock Field Office has noted an alarming uptick in these schemes targeting children in areas around El Dorado, Magnolia, and Monticello, Arkansas. The FBI New Orleans Field Office has also seen similar schemes targeting children in the Monroe, Alexandria, and Shreveport, Louisiana areas.

    Here’s how this disturbing scheme works:

    1. A predator (posing as a child on social media) uses deception and manipulation to convince a minor victim, usually 13 to 17 years old, to engage in explicit sexual activity over video chat.
    2. The videos or images are secretly recorded and saved by the predator.
    3. The predator then reveals they have saved the recordings and attempts to extort money from the juvenile victim by threatening to post the videos on various social media pages.
    4. To receive money, the predator may ask for bank account login information or request gift cards.

    Sextortion is a crime. The coercion of a child by an adult to produce child sexual abuse material (CSAM) carries heavy penalties, including life sentences for offenders. To make the victimization stop, children typically notify someone—normally a parent, teacher, caregiver, or law enforcement. The embarrassment children feel from the activity they were coerced to engage in is what usually prevents them from coming forward. Sextortion offenders frequently have dozens of victims around the world, so coming forward to help law enforcement identify a predator may prevent countless future incidents of sexual exploitation.

    Here are some tips to protect children online:

    • Everyone should be wary of anyone they encounter online. Block or ignore messages from strangers.
    • People can pretend to be anyone online. Videos and photos are not proof that a person is who they claim to be.
    • Be highly suspicious if someone you meet on a game or app asks you to start communicating with them on a different platform.
    • Encourage children to report suspicious behavior to a trusted adult.

    If you know someone who may be a victim of sextortion in Arkansas or Louisiana:

    1. Contact FBI Little Rock at 501-221-9100 or FBI New Orleans at 504-816-3000.
    2. Do not delete anything before law enforcement is able to review it.
    3. Tell police investigators everything about the online encounters. It may be embarrassing, but it is necessary to find and stop the predator.

    MIL Security OSI –

  • MIL-OSI Security: Ringleader of $10 Million TRICARE Scheme Sentenced

    Source: US FBI

          LITTLE ROCK—The organizer of a multi-million-dollar kickback conspiracy was sentenced today. Brad Duke, 47, of Little Rock was sentenced to 36 months’ imprisonment and ordered to forfeit $1,055,855.86 by United States District Judge Brian S. Miller.

          Duke promoted prescription pain creams, scar creams, and supplements for a Mississippi-based compounding pharmacy, earning a share of whatever the pharmacy was paid for prescriptions issued by Duke’s affiliated doctors. After learning TRICARE, the national military’s health insurer, paid tens of thousands of dollars per month per patient for the compounded drugs he was promoting, Duke began to offer and pay kickbacks to generate prescriptions for those with TRICARE insurance.

          Duke paid kickbacks to recruiters, including Michael “Chance” Beeman (52, of Maumelle), Michael Sean Brady (53, of Little Rock), Jason Greene (35, of Nashville, Tenn.), Brian Means (47, of Fort Smith), and Jennifer Sorenson (44, of McKinney, Tex.), to find TRICARE beneficiaries around the country willing to receive the drugs. Duke explained a doctor would sign off on the necessary prescriptions without ever consulting the patients. All Duke needed was TRICARE beneficiary insurance information sufficient to fill out prescription forms.

          Upon receipt of beneficiary information from his recruiters, Duke routed prescriptions in the names of the TRICARE beneficiaries to local medical assistant Charlotte Leija (41, of Conway), to whom Duke paid kickbacks, usually $1,000 per prescription, to file the prescriptions under the name of the doctor for whom she worked.

          Within a year, Duke’s scheme generated over $10 million in compound drug prescriptions for over 100 TRICARE beneficiaries hailing from as far west as Chula Vista, Calif., to as far east as Foxborough, Mass. No one ever consulted a prescriber. Duke paid his recruiters more than $2 million to supply the beneficiaries and over $250,000 to Leija to issue the prescriptions.

          Judge Miller previously sentenced co-conspirators Brady, Beeman, Green, Means, Sorenson, and Leija to prison terms ranging from 8 months to 28 months and ordered them to forfeit illicit proceeds ranging from $198,799.00 to $598,435.99. As of today’s sentencing hearing, the U.S. Marshals had already seized $1,055,855.86 from Duke.

          The investigation was conducted by the FBI and the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the case was prosecuted by Assistant United States Attorney Alexander D. Morgan.

    # # #

    This news release, as well as additional information about the office of the

    United States Attorney for the Eastern District of Arkansas, is available online at

    https://www.justice.gov/edar

    Twitter:

    @EDARNEWS

    MIL Security OSI –

  • MIL-OSI Security: Man Sentenced to 35 Years in Prison for Attempting to Murder Two Jewish Men Leaving Los Angeles Synagogues Last Year

    Source: US FBI

    LOS ANGELES – A man who last year shot and wounded two Jewish men as they left religious services in the Pico-Robertson area of Los Angeles was sentenced today to 420 months in federal prison.

    Jaime Tran, 30, formerly of Riverside, was sentenced by United States District Judge George H. Wu, who set a restitution hearing for December 2, 2024.

    Tran pleaded guilty on June 3 to two counts of hate crimes with intent to kill and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence. 

    “Targeting people for death based solely on their religious and ethnic background brings back memories of the darkest chapters in human history,” said United States Attorney Martin Estrada. “Such hate-fueled violence has no place in America. We hope the sentence imposed today sends a strong message to all in our community that we will not tolerate antisemitism and hate of any sort. For those who engage in hate crimes, the punishment will be severe.”

    “After years of spewing antisemitic vitriol, the defendant planned and carried out a two-day attack attempting to murder Jews leaving synagogue in Los Angeles,” said Attorney General Merrick B. Garland. “Vile acts of antisemitic hatred endanger the safety of individuals and entire communities, and allowing such crimes to go unchecked endangers the foundation of our democracy itself. As millions of Jewish Americans prepare to observe the High Holidays of Rosh Hashanah and Yom Kippur, the Justice Department reaffirms its commitment to aggressively confronting, disrupting, and prosecuting criminal acts motivated by antisemitism, or by hatred of any kind. No Jewish person in America should have to fear that any sign of their identity will make them the victim of a hate crime.”

    “This country was founded by many who fought for religious freedom, and practicing our religion continues to be a sacred and fundamental right,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will always defend that constitutional right. Those who violate the First Amendment by violent acts, those who would target the innocent based on hatred, will be held accountable.”

    “While this sentencing cannot fully restore the sense of safety stolen from the two victims and the Jewish community, it is a decisive step towards justice and a clear message that such acts of hate and violence will not be tolerated,” said Los Angeles Police Chief Dominic Choi.

    According to the government’s sentencing position, Tran obsessed over his antisemitic hatred for years leading up to the attack. In 2018, Tran left graduate school after making antisemitic comments about other students. From August 2022 to December 2022, Tran’s antisemitic statements escalated and included increasingly violent language, including messages to former classmates such as “I want you dead, Jew,” and “Someone is going to kill you, Jew.” Tran described himself as a “ticking time bomb” and maintained social media accounts with the handle “k1llalljews.”

    In November 2022, Tran emailed two dozen former classmates a flyer containing antisemitic propaganda, including the statement, “EVERY SINGLE ASPECT OF THE COVID AGENDA IS JEWISH.” The following month, Tran emailed his former classmates excerpts from an anti-Semitic website further denigrating Jewish persons. 

    As a result of previous mental health holds, as of 2023, Tran was prohibited from purchasing firearms. In January 2023 in Phoenix, Tran asked a third party to buy two firearms for him. Tran selected the firearms he wanted and paid approximately $1,500 in cash to the third party, who then purchased them. Law enforcement identified the third party, who has now pleaded guilty in Arizona to illegally selling Tran the firearm used in the shootings. Messages later retrieved from his phone reflected that Tran had asked multiple people to purchase firearms for him and had offered to pay more if no background check was performed. 

    In early February 2023, Tran sent an online message stating: “it’s time to kill all Jews.” On the morning of February 15, 2023, Tran used the internet to research locations with a “kosher market,” planning to shoot someone near a kosher market because he believed there would be Jewish people in the area. Tran drove to Pico-Robertson and shot a Jewish victim wearing a yarmulke as he was leaving religious services at a synagogue. Tran, believing the victim was Jewish, shot him at close range centimeters from his spine, intending to kill him. Tran then fled the scene in his car.

    The next morning, February 16, 2023, Tran returned to the Pico-Robertson area, intending to shoot another Jewish person. Tran shot a second Jewish victim, also wearing a yarmulke and leaving a synagogue after attending religious services. Tran shot the victim at close range, intending to kill him, as the victim crossed the street. Tran again fled the scene.

    Both victims survived the attacks. Law enforcement arrested Tran on February 17, 2023, after a witness reported seeing someone shooting a firearm behind a motel.  When he was arrested, Tran told law enforcement that he was “practicing” with his assault weapon. In its sentencing position, the government argued that “[h]ad [Tran] not been caught the night of his second shooting, his campaign of terror would likely have continued.”

    The FBI and the Los Angeles Police Department investigated this matter. The Riverside County Sheriff’s Department, the Cathedral City Police Department, the Fountain Valley Police Department, the Beverly Hills Police Department, and the UCLA Police Department provided substantial assistance.

    Assistant United States Attorneys Kathrynne N. Seiden of the Terrorism and Export Crimes Section and Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney’s Office for the District of Vermont’s Statement Relating to November 2024 General Election

    Source: US FBI

    Burlington, Vermont – United States Attorney Nikolas P. Kerest announced today that Assistant United States Attorney (AUSA) Jason Turner will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Turner has been appointed to serve as the District Election Officer (DEO) for the U.S. Attorney’s Office for the District of Vermont, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

    United States Attorney Kerest said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

    The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

    Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).

    United States Attorney Kerest stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Turner will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 802-651-8246.

    In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 1-800-CALL-FBI.

    Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

    United States Attorney Kerest said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

    Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

    MIL Security OSI –

  • MIL-OSI Security: Jennifer LaBonte Pleads Guilty to Embezzling From Employer

    Source: US FBI

    Rutland, Vermont – The United States Attorney’s Office announced that Jennifer LaBonte, 45, of Essex Junction, Vermont pleaded guilty today in United States District Court in Rutland to a charge of wire fraud. U.S. District Judge Mary K. Lanthier released LaBonte on conditions pending sentencing, which is scheduled for March 4, 2025.

    On October 2, 2024, the United States Attorney filed an information charging LaBonte with a single count of wire fraud. That is the charge to which she pleaded guilty. According to the information, between 2001 and January 2024, LaBonte was employed by automobile dealerships located in Burlington. From about 2012 until her termination, LaBonte served as office manager for the dealerships, a position that gave her oversight over all accounting matters. LaBonte had check-signing authority.

    The information charges that, beginning no later than 2013, LaBonte began embezzling from the dealerships. For the most part, LaBonte stole cash receipts that had been paid by dealership customers, but she also issued checks to herself for non-business-related purposes. LaBonte tried to cover up her thefts by manipulating and falsifying entries about individual transactions in the dealerships’ computerized accounting systems. An officer at the dealerships uncovered the fraud in January 2024, and LaBonte was immediately fired. The total loss resulting from her embezzlement is about $191,000. In court, the parties announced that LaBonte has provided the dealerships with a check that repaid them in full for the stolen funds.

    LaBonte faces up to 20 years of imprisonment and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The actual sentence, however, would be determined by the District Court with guidance from the advisory United States Sentencing Guidelines and the statutory sentencing factors.

    This case was investigated by the Federal Bureau of Investigation.

    LaBonte is represented by Brooks McArthur, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.

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  • MIL-OSI Security: New York Man Sentenced to Prison for Assaulting Law Enforcement During January 6 Capitol Breach

    Source: US FBI

                WASHINGTON— A New York man was sentenced to prison today after he previously pleaded guilty to assaulting law enforcement during the Jan. 6, 2021, breach of the U.S. Capitol. 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.

                James Weeks, 55, of Sodus, New York, was sentenced to 27 months in prison, 36 months of supervised release, and ordered to pay $2,774.00 in restitution and a $5,000 fine by U.S. District Judge Beryl A. Howell. Weeks previously pleaded guilty to a to single felony offense of assaulting, resisting, or impeding certain officers on June 27, 2024.

                According to court documents, at approximately 3:02 p.m. on Jan. 6, 2021, Weeks was seen on video footage entering the Lower West Terrace Tunnel. The Tunnel was created by the construction of a stage for the upcoming Presidential Inauguration and was the site of some of the most violent attacks against law enforcement that day. After entering the Tunnel, Weeks made his way through a crowd of rioters and toward the police line.

                After reaching the police line, and as the crowd of rioters continued to violently fight the police, Weeks reached his arm through the broken pane of glass of one of the gold doors inside the Tunnel behind which the police line was located as if to grab a nearby Metropolitan Police Department (MPD) officer. As he attempted to grab the officer, Weeks yelled, “Shove it up your a—! You fat f—! I’m gonna shove that up your a—!” and “We’re gonna f— you up!”

                Seconds later, Weeks moved around the doors so that he was directly in front of the police. Other rioters in the crowd called out, “Get that door open!” and, in response, Weeks pushed the door open, allowing more rioters access to the police line in the Tunnel. After opening the door, court documents say that Weeks struck an MPD officer using his hands and body. Shortly after, another rioter sprayed Weeks with a chemical irritant, causing him to exit the Tunnel.

                After leaving the Tunnel, Weeks approached the Northwest Courtyard on the Upper West Terrace outside the Capitol building. There, Weeks joined a crowd of rioters gathering outside a set of windows in that area. As other rioters climbed up on the windowsill, kicked, punched, or otherwise struck the panes of glass and/or boards covering the windowpanes, Weeks cheered them on. Weeks then approached the window himself, waved a black can of OC spray through one of the broken panes of glass, and banged it several times against the edges of the window. He then struck the window several times with a wooden stick in conjunction with other rioters, causing the window to break.

                The FBI arrested Weeks on Feb. 1, 2024, in Albany, New York.

                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 Western District of New York provided valuable assistance.

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

                In the 44 months since Jan. 6, 2021, more than 1,504 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 560 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: Amherst Woman Pleads Guilty to Threatening a Witness

    Source: US FBI

    BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Jessica Leyland, 37, of Amherst, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to witness retaliation, which carries a maximum penalty of 20 years in prison and a $250,000 fine.

    Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that in July 2019, Leyland approached an individual (Victim) at a bar in Buffalo, NY, and asked if she could speak with the Victim. The Victim agreed and then Leyland accused the Victim of “talking to the feds” and threatened to “(expletive) kill” the Victim. Leyland then placed the Victim in a headlock, causing bodily injury. Leyland ultimately had to be physically separated from the Victim by employees at the bar.

    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 Erie County Sheriff’s Office, under the direction of Sheriff John Garcia.

    Sentencing will be scheduled at a later date.

    # # # #

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  • MIL-OSI Security: Bloods Gang Leader Charged with Narcotics Distribution Resulting in One Death and Three Additional Poisonings

    Source: US FBI

    Defendant Allegedly Distributed Narcotics throughout Long Island Over Seven Year Period

    Earlier today, Gary Johnson, a Bloods gang leader also known as “G Money,” was arraigned in federal court in Central Islip on new charges in a 26-count second superseding indictment charging him with distributing controlled substances, including fentanyl and cocaine base, that caused the death of a woman and caused serious bodily injury to three additional victims.  Johnson is also charged with conspiracy to distribute and possession with intent to distribute heroin and fentanyl in Long Island, additional narcotics distribution offenses, various firearms offenses and destruction of evidence.  Today’s arraignment was held before United States District Judge Joan M. Azrack. Johnson previously was detained pending trial.

    John J. Durham, United States Attorney for the Eastern District of New York, James E. Dennehy, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI) and Kevin Catalina, Commissioner, Suffolk County Police Department (SCPD), announced the charges.

    “Our district has suffered terribly from the opioid epidemic, and as alleged in the superseding indictment, Johnson sold large amounts of dangerous narcotics for his own profit, without regard for the deadly consequences of his actions, even after a victim was fatally poisoned by the defendant’s drugs,” stated United States Attorney Durham.  “With these new charges, this Office continues its tireless efforts, in conjunction with our federal and local law enforcement partners, to prosecute drug traffickers responsible for the opioid crisis. It is my hope that the charges will bring some measure of closure to the family members of the victim whose death was caused by the defendant.”

    “Gary Johnson, a Bloods gang leader, allegedly sold substantial quantities of illicit drugs, which resulted in a known death of one victim and poisonings of three others. These alleged actions threatened public safety by exposing neighborhoods to a supply of dangerous substances,” stated FBI Assistant Director in Charge Dennehy. “The FBI and our law enforcement partners will continue its mission to assuage the flow of lethal narcotics from polluting our communities and apprehending those responsible for its pipeline.”

    “For years, Gary Johnson knew the poison he was selling posed deadly consequences, yet, his only concern was about making money,” stated SCPD Commissioner Catalina.  “We will continue to work with our federal partners to take down drug traffickers while undoubtedly saving lives in the process.”

    As alleged in court filings, Johnson is a leader of the G-Shine set of the Bloods gang. Between June 2013 and November 2020, when Johnson was arrested on federal charges, the defendant conspired to sell narcotics throughout Long Island. The drugs that Johnson sold – including heroin, fentanyl and cocaine base – resulted in at least four victims suffering poisonings. Specifically, on March 3, 2020, Johnson distributed narcotics which were ingested by John Doe #1 and Jane Doe #1 in the parking lot of Baseball Heaven in Yaphank, New York.  John Doe #1 and Jane Doe #1 lost consciousness and were revived by emergency medical personnel who administered CPR and Narcan on both victims.  They were resuscitated and survived.  On May 1, 2020, Johnson distributed narcotics ingested by John Doe #2 and Jane Doe #2. John Doe #2 was found unconscious by coworkers in St. James, New York, and was revived with Narcan. Jane Doe #2, a 39-year-old mother of a three-year-old son, was found deceased in her home in Rocky Point, New York. Her cause of death was determined to be acute mixed drug intoxication caused by a combination of cocaine and fentanyl – these drugs were supplied by the defendant.

    The charges in the second superseding indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Johnson faces a mandatory minimum sentence of 25 years’ imprisonment.

    This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

    The government’s case is being handled by the Criminal Section of the Office’s Long Island Division.  Assistant United States Attorneys Mark Misorek, Meredith A. Arfa and Stephen Petraeus are in charge of the prosecution with assistance from Paralegal Specialist Dejah Turla.

    The Defendant:

    GARY JOHNSON
    Age:  41
    Bellport, New York

    E.D.N.Y. Docket No. 20-CR-518 (S-2)(JMA)

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  • MIL-OSI Security: Durham Man Who Fled From Law Enforcement Sentenced to 12 Years in Prison

    Source: US FBI

    GREENSBORO – A Durham man who pleaded guilty to a firearm charge has been sentenced, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.

    MARIO DEANDRE TAYLOR, age 44, was sentenced yesterday, November 12, 2024, to 144 months of imprisonment and 3 years of supervised release. Sentencing was held in Greensboro, North Carolina, before United States District Judge William L. Osteen, Jr. 

    TAYLOR pleaded guilty in August to one count of felon in possession of a firearm, a Smith & Wesson .40 caliber handgun.

    According to court documents, on October 5, 2023, members of the Durham County Sheriff’s Office patrol division attempted to apprehend TAYLOR, who had outstanding state warrants for armed robberies, felony larcenies, assault on a law enforcement officer, aggravated assault, and robbery with a dangerous weapon, among other alleged crimes that took place between July 28, 2023, and October 5, 2023.  Around 11:00 p.m. that night, TAYLOR, who had already eluded capture twice that day, led deputies on a high-speed chase through residential and business areas in Durham, driving at high rates of speed, running through stop signs and stop lights, side-swiping a truck, and nearly hitting a city bus. Eventually, TAYLOR slowed down on South Buchanan Boulevard in a residential neighborhood, jumped out of the vehicle with a loaded weapon in his possession, and ran.  After a short foot chase, TAYLOR was arrested but did not have a gun on his person.  Approximately fifteen to twenty feet from the location of TAYLOR’s arrest, a K-9 found the loaded .40 caliber handgun that TAYLOR had thrown during the pursuit.

    The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF) and the Durham County Sheriff’s Office.  The lead investigator was an FBI Task Force Officer from the Durham County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Laura Jeanne Dildine.   

    Since 1992, the FBI’s Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a “force multiplier concept” and utilizes the expertise of each agency.  SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.

    ###

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  • MIL-OSI Security: New Bern Bloods Gang Member Sentenced for Illegal Firearm

    Source: US FBI

    RALEIGH, N.C. – A New Bern man was sentenced to nearly five years in prison for possessing a firearm as a felon. On August 15, 2024, Kevin Martell Johnson a/k/a “Stoney J”, age 28, pled guilty to the charge.

    According to court documents and other information presented in court, on March 17, 2023, officers with the New Bern Police Department conducted a traffic stop on a vehicle in which Johnson was a passenger after it ran a stop sign. The vehicle pulled into the Wells Fargo parking lot, and Johnson fled on foot. As Johnson was fleeing, he dropped a .40 caliber handgun. Officers discovered approximately five grams of crack cocaine stuffed in the trigger guard of the firearm. Johnson was eventually apprehended, and during a search of his person, officers found marijuana and eight oxycodone pills.

    Officers swabbed the firearm to obtain a DNA sample from Johnson, which was then sent to the lab for comparison. The lab confirmed that Johnson’s DNA was present on the firearm. Johnson is identified as an active member of the Bloods street gang in New Bern.

    “The New Bern Police Department is proud to be part of a partnership dedicated to addressing violent street gangs, felony drug offenses, and other acts of violence. Collaborating with the U.S. Attorney’s Office, the FBI, and other local and state law enforcement agencies, we have combined personnel, technology, and resources to hold offenders accountable for these serious crimes. We remain committed to creating a safe, crime- and drug-free community where everyone can live without fear,” said New Bern Police Chief Patrick Gallagher.

    The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is a collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.

    Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI and New Bern Police Department investigated the case and Assistant U.S. Attorney Phil Aubart 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. 4:24-CR-20-FL.

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  • 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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