NewzIntel.com

Category: Law Enforcement

  • MIL-OSI USA: With New Tobacco Enforcement Law Set to Go into Effect January 1st, Attorney General Bonta Releases Guidance to Businesses

    Source: US State of California Department of Justice

    Friday, December 20, 2024

    Contact: (916) 210-6000, agpressoffice@doj.ca.gov

    SACRAMENTO — California Attorney General Rob Bonta today released guidance to help businesses across the state comply with the new law regarding implementation of the flavored tobacco ban. Effective January 1, 2025, Assembly Bill (AB) 3218, builds on the implementation of the flavored tobacco ban (SB 793, 2019) by enacting new enforcement efforts from the Attorney General’s office and the establishment of a list of all tobacco products that are permissibly unflavored and allowed to be sold in California.
     
    “Young children across our state are still being lured into harmful addiction through flavored tobacco products. It’ll take a collective effort, including state and local enforcers, to address illicit access to these products,” said Attorney General Bonta. “This new law will provide my office with the tools and support needed to hold those who are responsible for illegal sales accountable and help sellers looking to meet their obligations come into full compliance with the law.”
     
    Tobacco companies make and market flavored tobacco products, which come with high nicotine content in a myriad of kid-friendly flavors, and that are widely available for purchase in stores and on the Internet. Usage of these products among youth has remained a persistent problem, specifically among middle school students. 

    AB 3218 will help ensure full compliance of the flavored tobacco ban by:

    • Establishing a publicly available list of all tobacco products that are permissibly unflavored under the state’s flavored tobacco restrictions. 
    • Authorizing the Attorney General to seek civil penalties against sellers for selling products not appearing on the Unflavored List.
    • Rendering products not appearing on the Unflavored List subject to seizure, aiding in enforcement efforts by state or local law enforcement agencies.
    • Revising the definition of a prohibited “characterizing flavor” to specifically include products that impart menthol-like cooling sensations, as well as other flavors that are “distinguishable by an ordinary consumer.”

    Copies of the bulletins can be found here and here. 

    # # #

    MIL OSI USA News –

  • MIL-OSI Security: Habitant — Valley Integrated Street Crime Enforcement Unit seizes loaded firearms

    Source: Royal Canadian Mounted Police

    Valley Integrated Street Crime Enforcement Unit (VISCEU) seized loaded firearms and illicit drugs from a residence in Habitant.

    On December 19, VISCEU safely arrested a man at a residence on Hwy. 221 in Habitant then searched the home as part of an ongoing investigation.

    During the search, officers seized two loaded firearms; one in the vehicle and one inside the residence. Officers also seized an unloaded rifle, brass knuckles, pre-packaged cocaine, methamphetamine, and a quantity of cash.

    Dawson Andrew Elliott, 25, of Habitant, has been charged with offences including:

    • Possession for the Purpose of Trafficking (cocaine and methamphetamine)
    • Possession of a Weapon for Dangerous Purpose (4counts)
    • Unauthorized Possession of a Firearm (3counts)
    • Careless Use of a Firearm (3 counts)
    • Possession of Property Obtained by Crime

    Anyone with information about illicit drugs or firearms in their community are encouraged to contact their nearest RCMP detachment or local police to report a crime. Anonymous tips can be made by calling Nova Scotia Crime Stoppers, toll-free, at 1-800-222-TIPS (8477), submitting a secure web tip at www.crimestoppers.ns.ca, or using the P3 Tips app.

    MIL Security OSI –

  • MIL-OSI USA: United States Joins Lawsuit Against Former Executives of Kabbage Inc. Alleging False Claims Act Violations in Connection with Paycheck Protection Program Lending

    Source: US State of California

    The United States has intervened and filed a complaint against Robert Frohwein, Kathryn Petralia and Spencer Robinson, three former executives of Kabbage Inc., a now-bankrupt financial technology company. The United States alleges that they violated the False Claims Act by submitting and causing the submission of false claims for loan forgiveness, loan guarantees and processing fees to the Small Business Administration (SBA) in connection with Kabbage’s participation in the Paycheck Protection Program (PPP).

    “The PPP was intended to provide critical assistance to eligible businesses during the economic uncertainty caused by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that PPP lenders — including their executives — are held accountable for contributing to the misuse of PPP funds by knowingly failing to comply with applicable program requirements, including approving PPP loans in inflated amounts and to ineligible borrowers.”

    Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The SBA administered the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans so long as they used loan funds on employee payroll and other eligible expenses. Among other things, participating PPP lenders were required to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. Lenders were also required to follow applicable Bank Secrecy Act/Anti-Money Laundering requirements to help combat fraud. Any unforgiven or defaulted PPP loans made by lenders were guaranteed by the SBA, so long as the lenders adhered to PPP requirements. Lenders who originated PPP loans were paid a fixed fee calculated as a percentage of the loan amount by the SBA.

    According to the government’s complaint, Frohwein and Petralia co-founded Kabbage in 2008 and served as the company’s chief executive officer and president, respectively, while Robinson formerly served as the company’s head of strategy. Kabbage was approved as a PPP lender in 2020 and approved more than $7 billion in PPP loans that year for which the company was paid more than $217 million in processing fees after certifying that it had complied with all applicable lending requirements.

    The complaint alleges that, between April and October 2020, the defendants knowingly submitted or caused the submission of false claims for loan guarantees, loan forgiveness and processing fees relating to tens of thousands of PPP loans that were systemically inflated due to calculation errors by Kabbage. These errors allegedly included Kabbage’s double-counting of state and local taxes paid by employees and the failure to exclude annual compensation in excess of $100,000 per employee from its calculation of payroll costs. Additionally, the lawsuit alleges that the defendants knowingly submitted or caused the submission of false claims for processing fees related to tens of thousands of PPP loans where Kabbage failed to implement appropriate fraud controls. The government’s complaint alleges that the defendants ignored these violations to maximize PPP processing fees before selling off the majority of Kabbage’s assets in October 2020.

    Kabbage Inc., which is now winding down its operations as KServicing Wind Down Corp. after filing for bankruptcy in the wake of the 2020 asset sale, previously agreed to resolve allegations relating to its role in the submission of false claims to the SBA. As part of that settlement, the United States received a general unsecured claim in the bankruptcy proceeding of up to $120 million, and the company received a credit for $12.5 million that Kabbage returned to SBA during the department’s investigation.

    “The PPP was a light providing hope to businesses in the midst of the shadow of a global pandemic,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Unfortunately, some unscrupulous lenders and executives took advantage of that situation by lining their pockets with ill-gotten incentive payments from processing PPP loans despite not performing even the most cursory fraud checks or reviews of borrower documentation. Individuals who shirked their responsibilities at the expense of the public fisc must be held accountable. This lawsuit against Kabbage’s former executives demonstrates our firm commitment to holding all parties responsible for their part in causing the submission of false claims to the PPP.”

    “SBA’s lending partners have a responsibility to ensure only eligible borrowers gain access to SBA’s programs,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA OIG)’s Central Region. “SBA OIG stands ready to support the Justice Department in rooting out greed and wrongful actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

    The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Paul Pietschner, a former analyst in Kabbage’s collections department. The FCA permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The FCA also permits the United States to intervene in such an action, as it has done in this case. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties. 

    On May 17, 2021, Attorney General Merrick B. Garland established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

    Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Betty Young for the Eastern District of Texas are handling the matter, with assistance provided by the SBA’s Office of General Counsel and Office of the Inspector General.

    The case is captioned United States ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (EDTX).

    The claims asserted by the United States are allegations only. There has been no determination of liability.

    MIL OSI USA News –

  • MIL-OSI USA: Medicare Advantage Provider Independent Health to Pay Up To $98M to Settle False Claims Act Suit

    Source: US State of California

    Independent Health Association and its affiliate, Independent Health Corporation (collectively, Independent Health) have agreed to pay up to $98 million to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission of invalid diagnosis codes to Medicare for Medicare Advantage Plan enrollees to increase payments that Independent Health received from Medicare. Independent Health is headquartered in Buffalo, New York.

    Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with diagnoses more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.

    Independent Health operates MA plans for beneficiaries living in western New York. As alleged by the United States, Independent Health created a wholly owned subsidiary, DxID LLC, to retrospectively search medical records and query physicians for information that would support additional diagnoses that could be used to generate higher risk scores, and DxID provided these services to Independent Health and other MA Plans. The United States filed a complaint alleging that, from 2011 through at least 2017, Independent Health, with the assistance of DxID and its founder and chief executive, Betsy Gaffney, knowingly submitted diagnoses to CMS that were not supported by the beneficiaries’ medical records in order to inflate Medicare’s payments to Independent Health.

    “The government expects those who participate in Medicare Advantage to provide accurate information to ensure that proper payments are made for the care received by enrolled beneficiaries,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “Today’s result sends a clear message to the Medicare Advantage community that the United States will take appropriate action against those who knowingly submit inflated claims for reimbursement.”

    “To protect the integrity of Medicare and other federal health care programs, my office is committed to ensuring that each and every dollar meant for Medicare beneficiaries is spent appropriately and in accordance with the law,” said U.S. Attorney Trini E. Ross for the Western District of New York. “As this settlement makes clear, we will diligently pursue those who defraud government programs.”

    “Medicare Advantage Plans that attempt to game federal programs for profit must be held accountable through rigorous oversight and enforcement,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to root out fraud, waste and abuse in federal health care programs.”

    Under the terms of the settlement, Independent Health will make guaranteed payments of $34,500,000 and contingent payments of up to $63,500,000 on behalf it itself and DxID, which ceased operations in 2021. The settlement is based on Independent Health’s ability to pay. Gaffney will separately pay $2,000,000.

    In connection with the settlement, Independent Health entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. The CIA requires, among other things, that Independent Health hire an Independent Review Organization to annually review a sample of Independent Health’s Medicare Advantage patients’ medical records and associated internal controls to help ensure appropriate risk adjustment payments.

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Teresa Ross, a former employee of Group Health Cooperative, now Kaiser Foundation Health Plan of Washington (Kaiser). Under the qui tam provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits as it has done in this case. Ms. Ross will receive at least $8,212,500 of the settlement announced today. Ms. Ross also alleged that Kaiser employed DxID to identify additional diagnoses to be submitted to Medicare for risk adjustment, and the United States previously settled those claims with Kaiser.

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

    Attorneys Samson Asiyanbi and David Wiseman of the Civil Division’s Fraud Section and Assistant U.S. Attorney David Coriell and investigator Peggy McFarland for the Western District of New York handled the matter, with assistance from the HHS-OIG Buffalo Regional Office.

    The case is captioned United States ex rel. Ross v. Independent Health Association et al., No. 12-CV-0299(S) (WDNY).

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    View the settlement here.

    MIL OSI USA News –

  • MIL-OSI USA: United States and Arizona File to Effect Transfer of Land to Be Held in Trust for the Hopi Tribe

    Source: US State of California

    The Justice Department, the Department of the Interior (DOI), the State of Arizona and the Hopi Tribe today announced the filing of a “friendly condemnation” to effect the historic transfer of more than 20,000 acres of land from Arizona to the United States to be held in trust for the Hopi Tribe. Upon the deposit by the Hopi Tribe of $3.9 million, which serves as an estimate of just compensation for the benefit of the State of Arizona, into the Registry of the U.S. District Court for the District of Arizona, these lands will be owned by the United States and then immediately placed into trust for the Hopi Tribe. The lands being transferred are interspersed with Hopi-owned lands and have long been leased to the Hopi Tribe for ranching purposes.

    This is the first of an anticipated series of condemnation actions to ultimately transfer approximately 110,000 acres from Arizona to the United States in trust for the Hopi Tribe. As with subsequent actions, today’s condemnation is filed with the concurrence of Arizona and authorized by the Navajo-Hopi Land Dispute Settlement Act of 1996, which ratified a 1995 resolution to a long-running land dispute in northeastern Arizona between the Hopi Tribe, the Navajo Tribe and the United States. When the title is transferred to the United States, DOI will take the lands into trust for the Hopi Tribe.

    “Today’s filing starts the process of eliminating the interspersed ownership that characterizes much of the lands the Hopi Tribe uses for ranching in northeast Arizona, as was envisioned by the Settlement Act of 1996,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Arizona will receive just compensation for the land, and the Hopi Tribe will no longer have to deal with checkerboarded ownership, which will help improve its use for ranching and other agriculture activities.”

    “Today’s filing could initiate historic transfer of more than 20,000 acres back into Hopi Tribe ownership, a first step in the process to transfer an overall 110,000 acres into trust for the Tribes,” said Solicitor Bob Anderson of the Department of the Interior. “All parties stand to benefit, as the State of Arizona will receive just compensation and the Hopi Tribe will take on cohesive ownership across lands that hold sacred and economic significance and will support ranching and agricultural activities of their communities.”

    “After nearly three decades of the Hopi fighting for their rights, I’m proud to enter into this historic agreement,” said Arizona Governor Katie Hobbs. “Every Arizonan should have an opportunity to thrive and a space to call home, and this agreement takes us one step closer to making those Arizona values a reality. While politicians of the past refused to hear the voices of tribal communities in our state, I’m so glad to work side-by-side with them as we build a state that gives every family opportunity. I look forward to continued partnership with Chairman Nuvangyaoma and the 22 tribal governments across our state.”

    “Today is not only a historic day, it is also a day of celebration for the Hopi Tribe. The 1996 Hopi-Navajo Land Settlement Act is being fulfilled; the Hopi Tribe signed the settlement with the United States 30 years ago,” said Chairman Timothy L. Nuvangyaoma of the Hopi Tribe. “I am grateful to everyone who worked on making this a reality; I want to acknowledge the hard-working staff at the Governor’s office, the Arizona State Land Commission, the Department of the Interior and the Department of Justice. A special thank you to Governor Hobbs, Secretary Haaland and Commissioner Sahid for their leadership, collaboration and dedication to this effort. Within Hopi, it is our time of the Soyal’ang ceremony — the start of the New Year and the revitalization of life. It is fitting that this historic moment coincides with such an important time.”

    The acquisition includes all appurtenant water and mineral rights owned by Arizona. However, it is subject to, and will not affect, existing easements and rights of way for public highways and utilities and similar encumbrances.

    Attorneys from ENRD’s Land Acquisition Section are handling the matter.

    MIL OSI USA News –

  • MIL-OSI USA: Jordanian National Pleads Guilty to Explosives Threats and Attack on Energy Facility

    Source: US State of California

    Hashem Younis Hashem Hnaihen, 44, of Orlando, pleaded guilty today to four counts of threatening to use explosives and one count of destruction of an energy facility.

    “With this plea, we are holding this defendant accountable for his threats to carry out hate-fueled mass violence in our country, motivated in part by his desire to ‘warn’ businesses because of their perceived support of Israel,” said Attorney General Merrick B. Garland. “The Justice Department will fiercely protect the right of every person to peacefully express their opinions, beliefs, and ideas, but we have no tolerance for acts and threats of hate-fueled violence that create lasting fear.”

    “Today, the defendant is admitting he attacked a solar power facility, damaged a number of Florida businesses, and left a series of threatening messages about perceived support for Israel,” said Director Christopher Wray of the FBI. “Violence, destruction of property, and threats are simply unacceptable. The FBI will work with our partners to pursue and hold accountable those who commit illegal and destructive acts and cause our citizens to fear for their safety and livelihoods.”

    According to court documents, beginning around June, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.”

    In his letters, which were addressed to the U.S. government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.”

    Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused nearly $500,000 in damage.

    Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, shortly after another “warning letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

    Hnaihen faces a maximum penalty of 10 years in prison for each threat offense and a maximum penalty of 20 years in prison for the destruction of an energy facility offense. Hnaihen has also agreed to make full restitution to the victims of the offenses. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section are prosecuting the case.

    MIL OSI USA News –

  • MIL-OSI Security: United States and Arizona File to Effect Transfer of Land to Be Held in Trust for the Hopi Tribe

    Source: United States Attorneys General

    The Justice Department, the Department of the Interior (DOI), the State of Arizona and the Hopi Tribe today announced the filing of a “friendly condemnation” to effect the historic transfer of more than 20,000 acres of land from Arizona to the United States to be held in trust for the Hopi Tribe. Upon the deposit by the Hopi Tribe of $3.9 million, which serves as an estimate of just compensation for the benefit of the State of Arizona, into the Registry of the U.S. District Court for the District of Arizona, these lands will be owned by the United States and then immediately placed into trust for the Hopi Tribe. The lands being transferred are interspersed with Hopi-owned lands and have long been leased to the Hopi Tribe for ranching purposes.

    This is the first of an anticipated series of condemnation actions to ultimately transfer approximately 110,000 acres from Arizona to the United States in trust for the Hopi Tribe. As with subsequent actions, today’s condemnation is filed with the concurrence of Arizona and authorized by the Navajo-Hopi Land Dispute Settlement Act of 1996, which ratified a 1995 resolution to a long-running land dispute in northeastern Arizona between the Hopi Tribe, the Navajo Tribe and the United States. When the title is transferred to the United States, DOI will take the lands into trust for the Hopi Tribe.

    “Today’s filing starts the process of eliminating the interspersed ownership that characterizes much of the lands the Hopi Tribe uses for ranching in northeast Arizona, as was envisioned by the Settlement Act of 1996,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “Arizona will receive just compensation for the land, and the Hopi Tribe will no longer have to deal with checkerboarded ownership, which will help improve its use for ranching and other agriculture activities.”

    “Today’s filing could initiate historic transfer of more than 20,000 acres back into Hopi Tribe ownership, a first step in the process to transfer an overall 110,000 acres into trust for the Tribes,” said Solicitor Bob Anderson of the Department of the Interior. “All parties stand to benefit, as the State of Arizona will receive just compensation and the Hopi Tribe will take on cohesive ownership across lands that hold sacred and economic significance and will support ranching and agricultural activities of their communities.”

    “After nearly three decades of the Hopi fighting for their rights, I’m proud to enter into this historic agreement,” said Arizona Governor Katie Hobbs. “Every Arizonan should have an opportunity to thrive and a space to call home, and this agreement takes us one step closer to making those Arizona values a reality. While politicians of the past refused to hear the voices of tribal communities in our state, I’m so glad to work side-by-side with them as we build a state that gives every family opportunity. I look forward to continued partnership with Chairman Nuvangyaoma and the 22 tribal governments across our state.”

    “Today is not only a historic day, it is also a day of celebration for the Hopi Tribe. The 1996 Hopi-Navajo Land Settlement Act is being fulfilled; the Hopi Tribe signed the settlement with the United States 30 years ago,” said Chairman Timothy L. Nuvangyaoma of the Hopi Tribe. “I am grateful to everyone who worked on making this a reality; I want to acknowledge the hard-working staff at the Governor’s office, the Arizona State Land Commission, the Department of the Interior and the Department of Justice. A special thank you to Governor Hobbs, Secretary Haaland and Commissioner Sahid for their leadership, collaboration and dedication to this effort. Within Hopi, it is our time of the Soyal’ang ceremony — the start of the New Year and the revitalization of life. It is fitting that this historic moment coincides with such an important time.”

    The acquisition includes all appurtenant water and mineral rights owned by Arizona. However, it is subject to, and will not affect, existing easements and rights of way for public highways and utilities and similar encumbrances.

    Attorneys from ENRD’s Land Acquisition Section are handling the matter.

    MIL Security OSI –

  • MIL-OSI Security: Jordanian National Pleads Guilty to Explosives Threats and Attack on Energy Facility

    Source: United States Attorneys General

    Hashem Younis Hashem Hnaihen, 44, of Orlando, pleaded guilty today to four counts of threatening to use explosives and one count of destruction of an energy facility.

    “With this plea, we are holding this defendant accountable for his threats to carry out hate-fueled mass violence in our country, motivated in part by his desire to ‘warn’ businesses because of their perceived support of Israel,” said Attorney General Merrick B. Garland. “The Justice Department will fiercely protect the right of every person to peacefully express their opinions, beliefs, and ideas, but we have no tolerance for acts and threats of hate-fueled violence that create lasting fear.”

    “Today, the defendant is admitting he attacked a solar power facility, damaged a number of Florida businesses, and left a series of threatening messages about perceived support for Israel,” said Director Christopher Wray of the FBI. “Violence, destruction of property, and threats are simply unacceptable. The FBI will work with our partners to pursue and hold accountable those who commit illegal and destructive acts and cause our citizens to fear for their safety and livelihoods.”

    According to court documents, beginning around June, Hnaihen targeted and attacked businesses in the Orlando area for their perceived support for Israel. Wearing a mask, under the cover of night, Hnaihen smashed the glass front doors of businesses and left behind “Warning Letters.”

    In his letters, which were addressed to the U.S. government, Hnaihen laid out a series of political demands, culminating in a threat to “destroy or explode everything here in whole America. Especially the companies and factories that support the racist state of Israel.”

    Hnaihen’s attacks escalated. At the end of June, as law enforcement worked to identify the masked attacker, Hnaihen broke into a solar power generation facility in Wedgefield, Florida, and spent hours systematically destroying solar panel arrays. He smashed panels, cut wires, and targeted critical electronic equipment. Hnaihen left behind two more copies of his threatening demand letter. Hnaihen’s attacks caused nearly $500,000 in damage.

    Following a multiagency effort, law enforcement identified Hnaihen and arrested him on July 11, shortly after another “warning letter” threatening to “destroy or explode everything” was discovered at an industrial propane gas distribution depot in Orlando.

    Hnaihen faces a maximum penalty of 10 years in prison for each threat offense and a maximum penalty of 20 years in prison for the destruction of an energy facility offense. Hnaihen has also agreed to make full restitution to the victims of the offenses. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    The FBI is investigating the case.

    Assistant U.S. Attorney Richard Varadan for the Middle District of Florida and Trial Attorneys Ryan White and George Kraehe of the National Security Division’s Counterterrorism Section are prosecuting the case.

    MIL Security OSI –

  • MIL-OSI Security: United States Joins Lawsuit Against Former Executives of Kabbage Inc. Alleging False Claims Act Violations in Connection with Paycheck Protection Program Lending

    Source: United States Attorneys General 7

    The United States has intervened and filed a complaint against Robert Frohwein, Kathryn Petralia and Spencer Robinson, three former executives of Kabbage Inc., a now-bankrupt financial technology company. The United States alleges that they violated the False Claims Act by submitting and causing the submission of false claims for loan forgiveness, loan guarantees and processing fees to the Small Business Administration (SBA) in connection with Kabbage’s participation in the Paycheck Protection Program (PPP).

    “The PPP was intended to provide critical assistance to eligible businesses during the economic uncertainty caused by the pandemic,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to ensuring that PPP lenders — including their executives — are held accountable for contributing to the misuse of PPP funds by knowingly failing to comply with applicable program requirements, including approving PPP loans in inflated amounts and to ineligible borrowers.”

    Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide federally guaranteed loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The SBA administered the PPP. The CARES Act authorized private lenders to approve PPP loans for eligible borrowers who could later seek forgiveness of the loans so long as they used loan funds on employee payroll and other eligible expenses. Among other things, participating PPP lenders were required to confirm borrowers’ average monthly payroll costs by reviewing the payroll documentation submitted with the borrower’s application. Lenders were also required to follow applicable Bank Secrecy Act/Anti-Money Laundering requirements to help combat fraud. Any unforgiven or defaulted PPP loans made by lenders were guaranteed by the SBA, so long as the lenders adhered to PPP requirements. Lenders who originated PPP loans were paid a fixed fee calculated as a percentage of the loan amount by the SBA.

    According to the government’s complaint, Frohwein and Petralia co-founded Kabbage in 2008 and served as the company’s chief executive officer and president, respectively, while Robinson formerly served as the company’s head of strategy. Kabbage was approved as a PPP lender in 2020 and approved more than $7 billion in PPP loans that year for which the company was paid more than $217 million in processing fees after certifying that it had complied with all applicable lending requirements.

    The complaint alleges that, between April and October 2020, the defendants knowingly submitted or caused the submission of false claims for loan guarantees, loan forgiveness and processing fees relating to tens of thousands of PPP loans that were systemically inflated due to calculation errors by Kabbage. These errors allegedly included Kabbage’s double-counting of state and local taxes paid by employees and the failure to exclude annual compensation in excess of $100,000 per employee from its calculation of payroll costs. Additionally, the lawsuit alleges that the defendants knowingly submitted or caused the submission of false claims for processing fees related to tens of thousands of PPP loans where Kabbage failed to implement appropriate fraud controls. The government’s complaint alleges that the defendants ignored these violations to maximize PPP processing fees before selling off the majority of Kabbage’s assets in October 2020.

    Kabbage Inc., which is now winding down its operations as KServicing Wind Down Corp. after filing for bankruptcy in the wake of the 2020 asset sale, previously agreed to resolve allegations relating to its role in the submission of false claims to the SBA. As part of that settlement, the United States received a general unsecured claim in the bankruptcy proceeding of up to $120 million, and the company received a credit for $12.5 million that Kabbage returned to SBA during the department’s investigation.

    “The PPP was a light providing hope to businesses in the midst of the shadow of a global pandemic,” said U.S. Attorney Damien M. Diggs for the Eastern District of Texas. “Unfortunately, some unscrupulous lenders and executives took advantage of that situation by lining their pockets with ill-gotten incentive payments from processing PPP loans despite not performing even the most cursory fraud checks or reviews of borrower documentation. Individuals who shirked their responsibilities at the expense of the public fisc must be held accountable. This lawsuit against Kabbage’s former executives demonstrates our firm commitment to holding all parties responsible for their part in causing the submission of false claims to the PPP.”

    “SBA’s lending partners have a responsibility to ensure only eligible borrowers gain access to SBA’s programs,” said Special Agent in Charge Brady Ipock of the SBA Office of Inspector General (SBA OIG)’s Central Region. “SBA OIG stands ready to support the Justice Department in rooting out greed and wrongful actions. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

    The lawsuit was originally filed under the qui tam or whistleblower provisions of the False Claims Act by Paul Pietschner, a former analyst in Kabbage’s collections department. The FCA permits private parties to file suit on behalf of the United States for false claims and to share in any recovery. The FCA also permits the United States to intervene in such an action, as it has done in this case. A defendant who violates the act is subject to liability for three times the government’s losses, plus applicable penalties. 

    On May 17, 2021, Attorney General Merrick B. Garland established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across the federal government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

    Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

    Trial Attorney Sarah E. Loucks of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Betty Young for the Eastern District of Texas are handling the matter, with assistance provided by the SBA’s Office of General Counsel and Office of the Inspector General.

    The case is captioned United States ex rel. Pietschner v. Kabbage, Inc., et al., No. 4:21-cv-110-SDJ (EDTX).

    The claims asserted by the United States are allegations only. There has been no determination of liability.

    MIL Security OSI –

  • MIL-OSI Security: Medicare Advantage Provider Independent Health to Pay Up To $98M to Settle False Claims Act Suit

    Source: United States Attorneys General 7

    Independent Health Association and its affiliate, Independent Health Corporation (collectively, Independent Health) have agreed to pay up to $98 million to resolve allegations that they violated the False Claims Act by knowingly submitting or causing the submission of invalid diagnosis codes to Medicare for Medicare Advantage Plan enrollees to increase payments that Independent Health received from Medicare. Independent Health is headquartered in Buffalo, New York.

    Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with diagnoses more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.

    Independent Health operates MA plans for beneficiaries living in western New York. As alleged by the United States, Independent Health created a wholly owned subsidiary, DxID LLC, to retrospectively search medical records and query physicians for information that would support additional diagnoses that could be used to generate higher risk scores, and DxID provided these services to Independent Health and other MA Plans. The United States filed a complaint alleging that, from 2011 through at least 2017, Independent Health, with the assistance of DxID and its founder and chief executive, Betsy Gaffney, knowingly submitted diagnoses to CMS that were not supported by the beneficiaries’ medical records in order to inflate Medicare’s payments to Independent Health.

    “The government expects those who participate in Medicare Advantage to provide accurate information to ensure that proper payments are made for the care received by enrolled beneficiaries,” said Deputy Assistant Attorney General Michael Granston of the Justice Department’s Civil Division. “Today’s result sends a clear message to the Medicare Advantage community that the United States will take appropriate action against those who knowingly submit inflated claims for reimbursement.”

    “To protect the integrity of Medicare and other federal health care programs, my office is committed to ensuring that each and every dollar meant for Medicare beneficiaries is spent appropriately and in accordance with the law,” said U.S. Attorney Trini E. Ross for the Western District of New York. “As this settlement makes clear, we will diligently pursue those who defraud government programs.”

    “Medicare Advantage Plans that attempt to game federal programs for profit must be held accountable through rigorous oversight and enforcement,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to root out fraud, waste and abuse in federal health care programs.”

    Under the terms of the settlement, Independent Health will make guaranteed payments of $34,500,000 and contingent payments of up to $63,500,000 on behalf it itself and DxID, which ceased operations in 2021. The settlement is based on Independent Health’s ability to pay. Gaffney will separately pay $2,000,000.

    In connection with the settlement, Independent Health entered into a five-year corporate integrity agreement (CIA) with HHS-OIG. The CIA requires, among other things, that Independent Health hire an Independent Review Organization to annually review a sample of Independent Health’s Medicare Advantage patients’ medical records and associated internal controls to help ensure appropriate risk adjustment payments.

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Teresa Ross, a former employee of Group Health Cooperative, now Kaiser Foundation Health Plan of Washington (Kaiser). Under the qui tam provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The Act permits the government to intervene in such lawsuits as it has done in this case. Ms. Ross will receive at least $8,212,500 of the settlement announced today. Ms. Ross also alleged that Kaiser employed DxID to identify additional diagnoses to be submitted to Medicare for risk adjustment, and the United States previously settled those claims with Kaiser.

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

    Attorneys Samson Asiyanbi and David Wiseman of the Civil Division’s Fraud Section and Assistant U.S. Attorney David Coriell and investigator Peggy McFarland for the Western District of New York handled the matter, with assistance from the HHS-OIG Buffalo Regional Office.

    The case is captioned United States ex rel. Ross v. Independent Health Association et al., No. 12-CV-0299(S) (WDNY).

    The claims resolved by the settlement are allegations only. There has been no determination of liability.

    View the settlement here.

    MIL Security OSI –

  • MIL-OSI USA: Proclamation to Implement the United  States-Israel Agreement on Trade in Agricultural Products and for Other  Purposes

    US Senate News:

    Source: The White House
         1.  On April 22, 1985, the United States and Israel entered into the Agreement on the Establishment of a Free Trade Area between the Government of the United States of America and the Government of Israel (USIFTA), which the Congress approved in section 3 of the United States–Israel Free Trade Area Implementation Act of 1985 (the “USIFTA Implementation Act”) (Public Law 99-47, 99 Stat. 82 (19 U.S.C. 2112 note)).  Section 4(b) of the USIFTA Implementation Act provides that, whenever the President determines that it is necessary to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the USIFTA, the President may proclaim such withdrawal, suspension, modification, or continuance of any duty, or such continuance of existing duty-free or excise treatment, or such additional duties, as the President determines to be required or appropriate to carry out the USIFTA.  In order to maintain the general level of reciprocal and mutually advantageous concessions with respect to agricultural trade with Israel, on July 27, 2004, the United States entered into an agreement with Israel concerning certain aspects of trade in agricultural products during the period January 1, 2004, through December 31, 2008 (United States-Israel Agreement Concerning Certain Aspects of Trade in Agricultural Products (the “2004 Agreement”)).     2.  In Proclamation 7826 of October 4, 2004, the President determined, pursuant to section 4(b) of the USIFTA Implementation Act and consistent with the 2004 Agreement, that, in order to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the USIFTA, it was necessary to provide duty-free access into the United States through December 31, 2008, for specified quantities of certain agricultural products of Israel.  Each year from 2008 through 2023, the United States and Israel entered into agreements to extend the period that the 2004 Agreement was in force for 1-year periods to allow additional time for the two governments to conclude an agreement to replace the 2004 Agreement.  To carry out the extension agreements, the President in Proclamations 8334 of December 31, 2008; 8467 of December 23, 2009; 8618 of December 21, 2010; 8770 of December 29, 2011; 8921 of December 20, 2012; 9072 of December 23, 2013; 9223 of December 23, 2014; 9383 of December 21, 2015; 9555 of December 15, 2016; 9687 of December 22, 2017; 9834 of December 21, 2018; 9974 of December 26, 2019; 10128 of December 22, 2020; 10326 of December 23, 2021; 10509 of December 23, 2022; and 10692 of December 29, 2023, modified the Harmonized Tariff Schedule of the United States (HTS) to provide duty-free access into the United States for specified quantities of certain agricultural products of Israel, each time for an additional 1-year period.  On October 31, 2024, the United States entered into an agreement with Israel to extend the period that the 2004 Agreement is in force through December 31, 2025, and to allow for further negotiations on an agreement to replace the 2004 Agreement.  Pursuant to section 4(b) of the USIFTA Implementation Act, I have determined that it is necessary, in order to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided for by the USIFTA, to provide duty-free access into the United States through the close of December 31, 2025, for specified quantities of certain agricultural products of Israel, as provided in Annex I of this proclamation.    3.  Proclamation 10053 of June 29, 2020, implemented the Agreement between the United States of America, the United Mexican States, and Canada (USMCA) with respect to the United States and, pursuant to section 103 of the United States-Mexico-Canada Agreement Implementation Act (the “USMCA Implementation Act”) (Public Law 116-113, 134 Stat. 11, 15-17 (19 U.S.C. 4513)), incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out the USMCA.    4.  In order to provide generally for the preferential tariff treatment being accorded under the USMCA, to set forth rules for determining whether goods imported into the customs territory of the United States are eligible for preferential tariff treatment under the USMCA, to provide tariff-rate quotas with respect to certain originating goods of Canada, and to provide certain other treatment to originating goods for purposes of the USMCA, Proclamation 10053 modified the HTS as set forth in Annex I of Publication 5060 of the United States International Trade Commission (the “Commission”), entitled “Modifications to the Harmonized Tariff Schedule of the United States to Implement the United States-Mexico-Canada Agreement” (Publication 5060), including by adding general note 11.  Proclamation 10053 further modified the HTS to reflect the termination of tariff treatment under the North American Free Trade Agreement (NAFTA), as set forth in Annex III of Publication 5060, including by deleting general note 12.     5.  In order to implement the initial stage of duty reduction provided for in the USMCA, to provide for future staged reductions in duties for originating goods provided for in the USMCA, and to provide tariff-rate quotas with respect to certain goods provided for in the USMCA, Proclamation 10053 modified the HTS as set forth in Annex II of Publication 5060.      6.  A technical error was made in the modifications to U.S. note 3(d) to subchapter II of chapter 98 of the HTS, and certain references to general note 12 were inadvertently not modified.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the USMCA, including certain technical or conforming changes within the tariff schedule.      7.  Proclamation 7987 of February 28, 2006, implemented the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) with respect to the United States and, pursuant to section 201 of the Dominican Republic-Central America-United States Free Trade Agreement Implementation Act (the “DR-CAFTA Act”) (Public Law 109-53, 119 Stat. 462, 467 (19 U.S.C. 4001 note)), incorporated in the HTS the tariff modifications and rules of origin necessary or appropriate to carry out certain provisions of the DR-CAFTA.      8.  A rule of origin under the DR-CAFTA, found in general note 29 to the HTS, contains a reference to general note 12.  Proclamation 10053 deleted general note 12 but omitted a conforming change to the reference in general note 29.  I have determined that an additional modification to the HTS is necessary or appropriate to reflect this conforming change.     9.  Section 602 of the Consolidated Appropriations Act, 2021 (Public Law 116-260, 134 Stat. 1182, 2152-54), made technical corrections to other laws, including replacing certain references to the NAFTA with references to the USMCA in sections 112 and 113(b) of the African Growth and Opportunity Act (the “AGOA”) (title I of Public Law 106-200, 114 Stat. 251, 258-265 (19 U.S.C. 3721, 3722(b))), as amended by the Africa Investment Incentive Act of 2006 (title VI of Public Law 109-432, 120 Stat. 2922, 3190-94), and in sections 212(a), 213(b), and 213A(b) of the Caribbean Basin Economic Recovery Act (the “CBERA”) (title II of Public Law 98-67, 97 Stat. 369, 384-85, 388 (19 U.S.C. 2702(a)(1), 2703(b), 2703a(b))), as amended by the United States-Caribbean Basin Trade Partnership Act (title II of Public Law 106-200, 114 Stat. 251, 275-288), the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (title V of Public Law 109-432, 109 Stat. 2922, 3181-87), and the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2008 (subtitle D of Public Law 110-234, 122 Stat. 923, 1527-47).    10.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the AGOA and the CBERA, including certain technical or conforming changes within the tariff schedule.    11.  Section 104(c) of the Trade Preferences Extension Act of 2015 (the “TPEA”) (Public Law 114–27, 129 Stat. 362, 365 (19 U.S.C. 2466a note)) authorizes the President to proclaim modifications that may be necessary to add the special tariff treatment symbol “D” in the “Special” subcolumn of the HTS for each article classified under a heading or subheading with the special tariff treatment symbol “A” or “A” in the “Special” subcolumn of the HTS.  Pursuant to section 104(c) of the TPEA, Proclamation 9466 of June 30, 2016, modified the HTS to add the special tariff treatment symbol “D” in the HTS as set forth in Annex III of that proclamation.     12.  The modifications to the HTS authorized in Proclamation 9466 included certain technical errors.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the AGOA, as authorized by section 104(c) of the TPEA, including certain technical or conforming changes within the tariff schedule.     13.  Proclamation 6763 of December 23, 1994, implemented, with respect to the United States, the trade agreements resulting from the Uruguay Round of multilateral trade negotiations, including Schedule XX-United States of America, annexed to the Marrakesh Protocol to the General Agreement on Tariffs and Trade 1994 (Schedule XX), that were entered into pursuant to sections 1102(a) and (e) of the Omnibus Trade and Competitiveness Act of 1988 (the “1988 Act”) (Public Law 100-418, 102 Stat. 1107, 1126 (19 U.S.C. 2902(a) and (e))), as amended by Public Law 103-49, 107 Stat. 239, and approved in section 101(a) of the Uruguay Round Agreements Act (the “URAA”) (Public Law 103-465, 108 Stat. 4809, 4814–15 (19 U.S.C. 3511(a))).      14.  Pursuant to the authority provided in section 111 of the URAA (19 U.S.C. 3521) and sections 1102(a) and (e) of the 1988 Act (19 U.S.C. 2902(a) and (e)), Proclamation 6763 included the staged reductions in rates of duty that the President determined to be necessary or appropriate to carry out the terms of Schedule XX.     15.  Section 1205(a) of the 1988 Act (102 Stat. 1150 (19 U.S.C. 3005(a))) directs the Commission to keep the HTS under continuous review and to periodically recommend to the President such modifications to the HTS as the Commission considers necessary or appropriate to accomplish the purposes set forth in that subsection.     16.  Pursuant to sections 1205(c) and (d) of the 1988 Act (102 Stat. 1150-51 (19 U.S.C. 3005(c) and (d))), in 2010, 2015, and 2021, the Commission recommended modifications to the HTS to conform the HTS to amendments made to the International Convention on the Harmonized Commodity Description and Coding System and the Protocol thereto (the “Convention”).     17.  Section 1206(a) of the 1988 Act (102 Stat. 1151 (19 U.S.C. 3006(a))) authorizes the President to proclaim modifications to the HTS based on the recommendations of the Commission under section 1205 of the 1988 Act if the President determines that the modifications are in conformity with United States obligations under the Convention and do not run counter to the national economic interest of the United States.     18.  Proclamation 8771 of December 29, 2011, Proclamation 9549 of December 1, 2016, and Proclamation 10326 of December 23, 2021, modified the HTS pursuant to section 1206 of the 1988 Act to conform the HTS to the amendments to the Convention.  However, the HTS modifications authorized in Proclamation 8771, Proclamation 9549, and Proclamation 10326 each included certain technical errors.     19.  Proclamation 8771 incorrectly modified the column 2 rate of duty for subheadings 0401.40.25 and 0401.50.25, and the “General” subcolumn rate of duty for column 1 and the column 2 rate of duty for subheading 6505.00.01.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment.     20.  Proclamation 9549 and Proclamation 10326 each created certain new subheadings with the special tariff treatment symbol “A” or “A” in the “Special” subcolumn of the HTS, but omitted the special tariff treatment symbol “D”.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment under the AGOA, including certain technical or conforming changes within the tariff schedule.    21.  Proclamation 10326 also included technical errors with respect to other subheadings.  I have determined that additional modifications to the HTS are necessary or appropriate to provide for the intended tariff treatment, including the tariff treatment previously proclaimed in Proclamation 6763.    22.  In Proclamation 9705 of March 8, 2018, pursuant to section 232 of the Trade Expansion Act of 1962, as amended (the “Trade Expansion Act”) (Public Law 87-794, 76 Stat. 872, 877 (19 U.S.C. 1862)), the President concurred with the finding of the Secretary of Commerce that steel articles, as defined in clause 1 of Proclamation 9705 (as amended by clause 8 of Proclamation 9711 of March 22, 2018), are being imported into the United States in such quantities and under such circumstances as to threaten to impair the national security of the United States, and decided to adjust the imports of steel articles by imposing a 25 percent ad valorem tariff on such articles imported from all countries except Canada and Mexico.  Proclamation 9740 of April 30, 2018, and Proclamation 9759 of May 31, 2018, modified the HTS to provide quotas with respect to steel articles imported from certain countries.  Proclamation 10328 of December 27, 2021, Proclamation 10356 of March 31, 2022, Proclamation 10406 of May 31, 2022, and Proclamation 10691 of December 28, 2023, modified the HTS to provide tariff-rate quotas with respect to steel articles imported from certain countries.     23.  On July 1, 2024, the Commission, in cooperation with the interagency Committee for Statistical Annotation of Tariff Schedules, implemented certain changes in 10-digit statistical reporting categories of the HTS under section 484(f) of the Tariff Act of 1930 (ch. 497, 46 Stat. 590, 723 (19 U.S.C. 1484(f))), as amended by section 637 of the North American Free Trade Agreement Implementation Act (Public Law 103-182, 107 Stat. 2057, 2202).  I have determined that certain conforming amendments to the HTS are necessary in order to ensure the maintenance of duty rates, quotas, and tariff-rate quotas for steel articles under tariff categories that were modified.    24.  Section 604 of the Trade Act of 1974, as amended (the “Trade Act”) (Public Law 93-618, 88 Stat. 1978, 2073 (19 U.S.C. 2483)), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other acts affecting import treatment, and actions taken thereunder, including the removal, modification, continuance, or imposition of any rate of duty or other import restriction.      NOW, THEREFORE, I, JOSEPH R. BIDEN JR., President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States of America, including but not limited to section 4(b) of the USIFTA Implementation Act, section 104(c) of the TPEA, section 1206(a) of the 1988 Act, section 232 of the Trade Expansion Act, and section 604 of the Trade Act, do proclaim that:      (1)  In order to implement tariff commitments under the 2004 Agreement through December 31, 2025, the HTS is modified as set forth in Annex I of this proclamation.    (2)  The modifications and technical rectifications to the HTS made by Annex I of this proclamation shall enter into effect on the applicable dates set forth in Annex I of this proclamation.    (3)  In order to make the modifications and technical rectifications to the HTS described in paragraphs 3 through 24 of this proclamation, the HTS is modified as set forth in Annex II of this proclamation.  These modifications and technical rectifications shall enter into effect on the applicable dates set forth in Annex II of this proclamation.    (4)  Any provisions of previous proclamations and Executive Orders that are inconsistent with the actions taken in this proclamation are superseded to the extent of such inconsistency.    IN WITNESS WHEREOF, I have hereunto set my hand thistwentieth day of December, in the year of our Lord two thousand twenty-four, and of the Independence of the United States of America the two hundred and forty-ninth.
                            JOSEPH R. BIDEN JR.

    MIL OSI USA News –

  • MIL-OSI USA: Amendments to Executive Orders Relating to Certain Certificates and  Badges

    US Senate News:

    Source: The White House
         By the authority vested in me as President by the Constitution and the laws of the United States of America, and as Commander in Chief of the Armed Forces of the United States, it is hereby ordered as follows:
         Section 1.  Amendments to Executive Order 12793, as Amended.  Executive Order 12793 of March 20, 1992 (Continuing the Presidential Service Certificate and the Presidential Service Badge), as amended by Executive Order 13286 of February 28, 2003 (Amendment of Executive Orders, and Other Actions, in Connection With the Transfer of Certain Functions to the Secretary of Homeland Security), is further amended by:
         (a)  Amending section 1 to read as follows:
         “Section 1.  Presidential Service Certificate.  The Presidential Service Certificate (Certificate) is hereby continued, the design of which accompanies and is hereby made a part of this order.  The Certificate shall be awarded in the name of the President of the United States to members of the United States Uniformed Services who have been assigned to the White House Office; to military units and support facilities under the administration of the White House Military Office; or to other direct support positions within the Executive Office of the President (EOP).  The Certificate shall be awarded by the Secretary of the military department concerned, or, when the Coast Guard is not operating as a service in the Navy, by the Secretary of Homeland Security, and, in the case of members of the Commissioned Corps of the National Oceanic and Atmospheric Administration or the Commissioned Corps of the Public Health Service, by the Secretary of Commerce or the Secretary of Health and Human Services, respectively.  The Certificate shall not be issued to any member who is issued a Vice Presidential Certificate, or similar EOP Certificate, for the same period of service.  Such assignment must be for a period of at least 1 year, subsequent to January 21, 1989.”; and
         (b)  Amending section 2 to read as follows:
         “Sec. 2.  Presidential Service Badge.  The Presidential Service Badge (Badge) is hereby continued, the design of which accompanies and is hereby made a part of this order.  The Badge shall be awarded to those members of the United States Uniformed Services who have been granted the Certificate and shall be awarded in the same manner in which the Certificate has been given.  The Badge shall be worn as a part of the uniform of those individuals under such regulations as their respective Secretaries may severally prescribe.”.
         Sec. 2.  Amendments to Executive Order 11926, as Amended.  Executive Order 11926 of July 19, 1976 (The Vice Presidential Service Badge), as amended by Executive Order 13286 and by Executive Order 13373 of March 10, 2005 (Amendments to Executive Order 11926 Relating to the Vice Presidential Service Badge), is further amended by:
         (a)  Amending section 1 to read as follows:
         “Section 1.  There is established a Vice Presidential Service Badge to be awarded in the name of the Vice President of the United States of America to members of the United States Uniformed Services who have been assigned to duty in the Office of the Vice President for a period of at least 1 year subsequent to December 19, 1974, or who have been assigned to perform duties predominantly for the Vice President for a period of at least 1 year subsequent to January 20, 2001, in the implementation of Public Law 93-346, as amended, or in military units and support facilities to which section 1 of Executive Order 12793 of March 20, 1992, as amended, refers.”;
         (b)  Amending section 2 to read as follows:
         “Sec. 2.  The Vice Presidential Service Badge may be awarded, upon recommendation of the Vice President’s designee (with the concurrence of the Director of the White House Military Office in the case of personnel in military units or support facilities to which section 1 of Executive Order 12793, as amended, refers), by the Secretary of the military department concerned, or, when the Coast Guard is not operating as a service in the Navy, by the Secretary of Homeland Security, to military personnel of their respective services who have been assigned to duty in the Office of the Vice President and, in the case of members of the Commissioned Corps of the National Oceanic and Atmospheric Administration or the Commissioned Corps of the Public Health Service so assigned, by the Secretary of Commerce or the Secretary of Health and Human Services, respectively.”;
         (c)  Amending section 4 to read as follows:
         “Sec. 4.  Upon award, the Vice Presidential Service Badge may be worn as a part of the uniform of an individual both during and after their assignment to duty in the Office of the Vice President.”; and
         (d)  Amending section 6 to read as follows:
         “Sec. 6.  Notwithstanding the provisions of sections 1 and 2 of this order, any member of the United States Uniformed Services, who has been assigned to duty in the Office of the Vice President, or who has been assigned to perform duties predominantly for the Vice President, in the implementation of Public Law 93-346, as amended, or in military units and support facilities to which section 1 of Executive Order 12793, as amended, refers, is authorized, unless otherwise directed by the Director of the White House Military Office in the case of personnel in military units and support facilities to which section 1 of Executive Order 12793, as amended, refers, to wear the Vice Presidential Service Badge on their uniform commencing on the first day of such duty and thereafter while assigned to such duty.”.
         Sec. 3.  General Provisions.  (a)  Nothing in this order shall be construed to impair or otherwise affect:
    (i)   the authority granted by law to an executive department or agency, or the head thereof; or
    (ii)  the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
         (b)  This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
         (c)  This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
                                 JOSEPH R. BIDEN JR.
    THE WHITE HOUSE,
        December 20, 2024.

    MIL OSI USA News –

  • MIL-OSI USA: 2024 Amendments to the Manual for Courts-Martial, United  States

    US Senate News:

    Source: The White House
         By the authority vested in me as President by the Constitution and the laws of the United States of America, including chapter 47 of title 10, United States Code (Uniform Code of Military Justice, 10 U.S.C. 801-946a), and in order to prescribe additions and amendments to the Manual for Courts-Martial, United States, prescribed by Executive Order 12473 of April 13, 1984, as amended, it is hereby ordered as follows:
         Section 1.  Part II, Part III, Part IV, and Part V of the Manual for Courts-Martial, United States, are amended as described in the Annex attached to and made a part of this order.
         Sec. 2.  With this order, I hereby prescribe regulations for the randomized selection of qualified personnel as members of a court-martial to the maximum extent practicable, pursuant to section 543 of the James M. Inhofe National Defense Authorization Act for Fiscal Year 2023, Public Law 117-263 (10 U.S.C. 825(e)(4)).
         Sec. 3.  Except as provided in sections 4 and 5 of this order, these amendments shall take effect on the date of this order, subject to the following:
         (a)  Nothing in these amendments shall be construed to make punishable any act committed or omitted prior to the date of this order that was not punishable when committed or omitted.
         (b)  Nothing in these amendments shall be construed to invalidate any nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action begun prior to the date of this order, and any such nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action may proceed in the same manner and with the same effect as if these amendments had not been prescribed.
         Sec. 4.  The amendments to Rule for Courts-Martial (R.C.M.) 908(c)(3), R.C.M. 1205(a), and R.C.M. 1209(a)(1) shall take effect on December 22, 2024, subject to the following:
         (a)  Nothing in these amendments shall be construed to make punishable any act committed or omitted prior to the effective date that was not punishable when committed or omitted.
         (b)  Nothing in these amendments shall be construed to invalidate any nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action begun prior to the  effective date, and any such nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action may proceed in the same manner and with the same effect as if these amendments had not been prescribed.
         Sec. 5.  The amendment to R.C.M. 503(a)(1) shall take effect on December 23, 2024, subject to the following:
         (a)  Nothing in this amendment shall be construed to make punishable any act committed or omitted prior to the effective date that was not punishable when committed or omitted.
         (b)  Nothing in this amendment shall be construed to invalidate any nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action begun prior to the  effective date, and any such nonjudicial punishment proceeding, restraint, preliminary hearing, referral of charges, trial in which arraignment occurred, or other action may proceed in the same manner and with the same effect as if this amendment had not been prescribed.
                                 JOSEPH R. BIDEN JR.
    THE WHITE HOUSE,
        December 20, 2024.

    MIL OSI USA News –

  • MIL-OSI Security: Syracuse Man Pleads Guilty to Distribution and Possession of Child Pornography

    Source: Office of United States Attorneys

    SYRACUSE, NEW YORK – David Hullihen, age 41, of Syracuse, pled guilty today to ten counts of receipt of child pornography. United States Attorney Carla B. Freedman, and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI) made the announcement.

    As part of his guilty plea, Hullihen admitted that he sent multiple videos depicting child sexual abuse material to another person over the application Wire. Hullihen also possessed child sexual abuse material on his cell phone. Hullihen is a registered sex offender with two previous convictions for child pornography offenses in New York.

    The offenses to which Hullihen pled guilty carry a mandatory minimum sentence of 15 years, with a maximum of 40 years imprisonment. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the United States Sentencing Guidelines, and other factors.  However, if Chief United States District Judge Brenda K. Sannes accepts the parties’ agreed-upon disposition at sentencing on April 23, 2025, Hullihen will receive an prison term of 235 months. Hullihen’s sentence must also include a post-imprisonment term of supervised release of between five years and life, a fine of up to $250,000.00, restitution to the children whose images he distributed and possessed, and he will be required to register as a sex offender upon his release from prison. 

    This case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force, the Tiffin, Ohio Police Department, the Syracuse, New York Police Department, and the New York State Police. Special Assistant U.S. Attorney Paul Tuck prosecuted Hullihen as part of Project Safe Childhood. 

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

    MIL Security OSI –

  • MIL-OSI Security: Beverly Hills and Ventura County Men Indicted for Allegedly Running NFT Crypto Fraud that Conned Investors Out of More Than $22 Million

    Source: Office of United States Attorneys

    LOS ANGELES – A six-count indictment was unsealed today charging two Southern California men with defrauding investors of more than $22 million in cryptocurrency through a series of digital asset project “rugpulls,” a type of fraud scheme in which the creator of a nonfungible token (NFT) or other digital asset project solicits funds from investors for the project and then abruptly abandons the project and fraudulently retains investors’ funds.

    Gabriel Hay, 23, of Beverly Hills, and Gavin Mayo, 23, of Thousand Oaks, are each charged with one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of stalking.

    Their arraignments are scheduled for this afternoon in United States District Court in downtown Los Angeles.

    “Whenever a new investment trend occurs, scammers are sure to follow,” said United States Attorney Martin Estrada. “My office and our law enforcement partners will continue our efforts to protect consumers and punish wrongdoers involved in crypto fraud.”

    “Gabriel Hay and Gavin Mayo allegedly defrauded investors in digital asset projects of tens of millions of dollars and threatened an individual who attempted to expose their roles in these fraudulent schemes,” said Principal Deputy Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Fraudsters take advantage of new technologies and financial products to steal investors’ hard-earned money. The department is committed to protecting investors and will continue to work with our law enforcement partners to root out fraud involving cryptocurrency and other digital assets and bring offenders to justice.”

    “For three years, Hay and Mayo allegedly lied to their investors in order to defraud them out of millions of dollars,” said HSI Executive Associate Director Katrina W. Berger. “Such technological fraud schemes cost investors millions of dollars every year. Just because such crimes aren’t violent does not mean they are victimless. HSI will continue to investigate, disrupt, and dismantle such cryptocurrency fraud networks.”

    According to court documents, from May 2021 to May 2024, Hay and Mayo sponsored several NFT and other digital asset projects and undertook promotional activities in support of those projects. Hay and Mayo allegedly made or caused others to make materially false and misleading statements regarding the digital asset projects being launched and provided false and misleading project “roadmaps” detailing plans for the NFTs or digital asset projects after their launch that the sponsors never intended to fulfill.

    For example, the indictment alleges that in promoting the Vault of Gems NFT project, Hay and Mayo falsely claimed that the project would be the “first NFT project to be pegged to a hard asset.” However, instead of pursuing the Vault of Gems project or others as they had represented they would, Hay and Mayo allegedly abandoned the projects after collecting millions in funds from investors.

    Hay, Mayo, and others allegedly used these tactics with a variety of other digital asset projects, including Vault of Gems, Faceless, Sinful Souls, Clout Coin, Dirty Dogs, Uncovered, MoonPortal, Squiggles, and Roost Coin. Hay and Mayo also allegedly used a variety of means to conceal their involvement in the fraudulent projects by falsely identifying other individuals or causing other individuals to be falsely identified as owners of the projects.

    When one project manager on the Faceless NFT project exposed Hay and Mayo as being behind that project, Hay and Mayo allegedly embarked on a harassment campaign against the project manager, sending or causing the sending of messages to the project manager and his parents for the purpose of intimidating him and his family and causing them great emotional distress.

    “Using NFTs to commit fraud not only exploits emerging technology but also erodes trust in the broader digital ecosystem,” said Special Agent in Charge Michael McCarthy of Homeland Security Investigations (HSI). “The alleged actions of Hay and Mayo, who defrauded investors out of millions over several years, highlight the profound harm these schemes cause. These crimes may not involve violence, but they leave countless victims in their wake. HSI remains dedicated to exposing and dismantling cryptocurrency fraud schemes to protect investors and ensure that technological advancements are used to drive progress, not deception.”

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

    If convicted, they each face a maximum penalty of 20 years in prison on each of the conspiracy and wire fraud counts and a maximum penalty of five years on the stalking count.

    The HSI Baltimore Field Office is investigating the case.

    Assistant United States Attorney Maxwell K. Coll of the Cyber and Intellectual Property Crimes Section and Justice Department Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section, both members of the National Cryptocurrency Enforcement Team (NCET), are prosecuting this case.

    The NCET was established to combat the growing illicit use of cryptocurrencies and digital assets. Within the Criminal Division’s Computer Crime and Intellectual Property Section, the NCET conducts and supports investigations into individuals and entities that are enabling the use of digital assets to commit and facilitate a variety of crimes, with a particular focus on virtual currency exchanges, mixing and tumbling services, and infrastructure providers. The NCET also works to set strategic priorities regarding digital asset technologies, identify areas for increased investigative and prosecutorial focus, and lead the department’s efforts to collaborate with domestic and foreign government agencies as well as the private sector to aggressively investigate and prosecute crimes involving cryptocurrency and digital assets. 

    MIL Security OSI –

  • MIL-OSI Security: U.S. Attorney, FBI Announce Federal Charges Against Arizona Man for Sexual Abuse

    Source: Office of United States Attorneys

    ALBUQUERQUE – A Whiteriver man has been charged with two counts of sexual abuse.

    The indictment alleges that between August 1, 2021, and August 31, 2021, Fernando Yatsatie, Jr., 47, a member of the Zuni Pueblo, unlawfully engaged in and attempted to engage in sexual acts using threats and intimidation.

    Yatsatie will remain in custody pending trial, which has not been scheduled. If convicted, Yatsatie faces any term of years up to life in prison.

    U.S. Attorney Alexander M.M. Uballez and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, made the announcement today.

    The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.

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

    # # #

    MIL Security OSI –

  • MIL-OSI New Zealand: Road Closed, SH1, Horeke

    Source: New Zealand Police (District News)

    State Highway One is closed following a serious crash in Horeke this morning.

    Emergency services were alerted to the single vehicle crash on State Highway One near Rangiahua Road at around 9.20am.

    Initial indications suggest there are serious injuries.

    The Serious Crash Unit has been advised.

    The road is closed, and diversions are in place.

    Motorists are advised to avoid the area and expect delays.

    ENDS

    MIL OSI New Zealand News –

  • MIL-OSI New Zealand: Police respond to family harm incident in Blenheim

    Source: New Zealand Police (National News)

    Attribute to Marlborough Area Commander Inspector Simon Feltham

    Police remain near a residential address in Blenheim this morning following a family harm-related incident.

    Police were called to a house on Park Terrace about 5.10pm yesterday, after a man carrying a firearm arrived at the address, where he is known.

    Two occupants were inside at the time, and one was able to get to safety. The other person remains inside the property with the man.

    The Police Negotiation Team is at the scene and no injuries have been reported. We are focused on the welfare of both people inside the address and are working hard to resolve this peacefully.

    As a precaution, neighbours of the address were asked to stay in temporary accommodation last night, and we are keeping them informed of developments.

    The incident is confined to the address and there is no risk to the wider community. A section of Park Terrace is cordoned off and we ask that people avoid the area.

    Information will be released proactively, when we are in a position to do so.

    ENDS

    Issued by the Police Media Centre

    MIL OSI New Zealand News –

  • MIL-OSI USA: Sixteen Cardiology Practices to Pay a Total of $17.7M to Resolve False Claims Act Allegations Concerning Inflated Medicare Reimbursements

    Source: US State Government of Utah

    Sixteen separate cardiology practices and associated physicians, located across 12 states, have agreed to pay amounts totaling $17,761,564 to resolve allegations that they each violated the False Claims Act by overbilling Medicare for diagnostic radiopharmaceuticals.

    Diagnostic radiopharmaceuticals are radioisotopes bound to biological molecules that target specific organs, tissues or cells within the human body and are used to diagnose and, in some cases, treat certain cancers and diseases. In 13 states and the District of Columbia, Medicare Part B reimburses healthcare providers for diagnostic radiopharmaceuticals based on the provider’s acquisition cost. In those jurisdictions, Medicare’s contractors have published guidance explaining the reimbursement methodology and providers’ obligation to accurately report their invoice costs for diagnostic radiopharmaceuticals. The government alleged that the settling cardiology practices regularly reported inflated acquisition costs to Medicare for these drugs. In each of the settlements, the conduct occurred for at least a year, and in some instances, the conduct extended over a period of more than 10 years.

    “The financial stability of federal healthcare programs depends upon providers complying with applicable billing rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to ensuring that Medicare funds are expended appropriately and to pursuing those who knowingly fail to do so.”

    The settling medical practices and associated physicians have agreed to pay the following amounts:

    • Western Kentucky Heart & Lung Associates PSC and Mohammed Kazimuddin ($6,750,000)
    • Heart Clinic of Paris P.A. and Arjumand Hashmi ($2,600,000)
    • Scranton Cardiovascular Physician Services LLC ($2,369,111)
    • Shannon Clinic ($996,856)
    • Edward W. Leahey M.D. Professional Association and Edward Leahey ($894,679)
    • Metropolitan Cardiovascular Consultants LLC and Ayim Djamson ($846,888)
    • Cardiology Center of New Jersey LLC, Mario Criscito, Frank Iacovone, and Sameer Kaul ($740,000)
    • Clovis Cardiology Associates LLC and Mahamadu Fuseini ($600,000)
    • Family Medical Specialty Clinic PLLC, Melecio Abordo, and June Abadilla ($409,594)
    • James R. Higgins M.D. Inc. and James Higgins ($395,537)
    • TrustCare Health LLC ($279,407)
    • Taj Medical Inc. ($240,000)
    • White River Diagnostic Clinic PLC, Margaret Kuykendall, and Seth Barnes ($234,490)
    • Veinguard Heart & Vascular Center P.C. and Fareeha Khan ($195,000)
    • Boulder Medical Center PC ($160,000)
    • Wellspring Cardiac Care P.A. ($50,000).

    “Practices and providers who overcharge the government and fail to return overpayments compromise our healthcare programs,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “When people see the wrong and report it, we have the tool we need to put a stop to this type of irresponsible conduct. So, I applaud the whistleblowers who came forward in this case.”

    “These practitioners overbilled the Medicare program by grossly exaggerating the acquisition costs of drugs used in diagnostic imaging of the heart,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “This office is committed to protecting our federal health care programs, and we will hold accountable anyone who seeks to exploit them.”

    “Medicare providers are required to be honest and accurate in the costs they report for reimbursement,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate alleged false claims act violations and ensure the integrity of the Medicare program. ”

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators Jasjit Walia and Preet Randhawa in the District of Columbia and the Western District of Kentucky. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers will receive a total of more than $2.7 million from the settlements announced today.

    The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of Columbia and Western District of Kentucky, with assistance from the HHS Office of Counsel to the Inspector General and Office of Investigations.

    The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).

    Trial Attorney James Nealon of the Justice Department’s Civil Division and Assistant U.S. Attorneys Ben Schecter, Matt Weyand, John Truong and Stephen DeGenaro for the District of Columbia handled the matter.

    The claims resolved by the settlements are allegations only. There has been no determination of liability.

    View the Heart Clinic of Paris settlement agreement here.

    View the Leahey settlement agreement here.

    View the Scranton settlement agreement here.

    View the Metropolitan settlement agreement here.

    View the Shannon Clinic settlement agreement here.

    View the Family Medical Specialty Clinic settlement agreement here.

    View the Taj Medical settlement agreement here.

    View the TrustCare settlement agreement here.

    View the Veinguard settlement agreement here.

    View the Wellspring settlement agreement here.

    View the White River settlement agreement here.

    View the WKHL settlement agreement here.

    View the Boulder Medical Center settlement agreement here.

    View the CCNJ settlement agreement here.

    View the Clovis settlement agreement here.

    View the Higgins settlement agreement here.

    MIL OSI USA News –

  • MIL-OSI Security: FBI and Cincinnati Police Announce $15,000 Reward in Death of 5-Year-Old Arty Stanford

    Source: Federal Bureau of Investigation (FBI) State Crime News

    The FBI and the Cincinnati Police Department today announced a reward of up to $15,000 for information leading to the arrest and conviction of the individual(s) responsible for the death of Artagist “Arty” Stanford III.

    “Arty’s family has suffered greatly since this shooting and anyone responsible for his death should be held accountable,” stated FBI Cincinnati Special Agent in Charge Elena Iatarola. “Someone in our community knows what happened that night and who was involved. We need anyone with information to do the right thing and contact law enforcement.”

    “Silence protects the wrong people,” said Cincinnati Police Chief Teresa Theetge. “Someone knows what happened. Someone holds the key to bringing closure to Arty’s family. Please speak up and help us bring justice for Arty.”

    On October 24, 2024, at approximately 5:48 a.m., the Cincinnati Emergency Communications Center received a report of a drive-by shooting at a house on Holland Drive. Initially, residents believed there were no injuries and the house only received damage from the gunfire. When police arrived, family members found five-year-old Artagist “Arty” Stanford III suffering from a gunshot wound to the head in an upstairs bedroom. There were at least seven bullet impact marks or bullet holes in the front of the house. One of the bullets passed through the front exterior wall into a second-floor bedroom and struck Arty in the head.

    Arty was taken to the hospital for treatment which included multiple surgeries. On October 26, 2024, Arty succumbed to his injuries and his death was ruled a homicide.

    Anyone with information regarding this incident is asked to call the FBI at 1-800-Call-FBI or Crime Stoppers at 513-352-3040.

    MIL Security OSI –

  • MIL-OSI New Zealand: Arrests, charges over meth-filled suitcases

    Source: New Zealand Police (National News)

    Four people have been arrested and approximately 200kg of methamphetamine has been seized following a joint investigation between New Zealand Police and the New Zealand Customs Service.

    Critically, an insider threat at the Port of Tauranga has also been identified and removed.

    Customs officers became aware of a suspicious concealment on 11 December after a routine x-ray of a container at the port.

    At about 3pm two men entered a restricted area and forced entry into the container. Police were alerted as the men loaded the suitcases into their car.

    The vehicle left the port driving recklessly and at speed through heavy traffic on the East Link Toll Road towards Whakatāne.

    Bay of Plenty District Police were able to stop the vehicle using road spikes on the toll road.

    The occupants fled on foot but were apprehended a short distance from the vehicle.

    Police recovered the five suitcases in the vehicle, along with other tools linked to the burglary.

    The two men, both aged 28, have been charged with burglary, possession of methamphetamine for supply, failing to carry out obligations in relation to a computer search, and possession of instruments for burglary.

    They have been remanded in custody and will appear in the Tauranga District Court, one on 20 January 2025, and the second on 7 March 2025.

    On Wednesday 18 December, search warrants were executed at various locations around the Western Bay of Plenty, and a further two people were arrested in relation to the matter.

    The two men, aged 33 and 36, have been charged with a number of offences, including importation of methamphetamine. Both appeared in the Tauranga District Court on Thursday 19 December.

    It is believed members of this criminal operation may have been operating from within the port for some time.

    The four arrested men all have associations with the Mongrel Mob, Comancheros and the Filthy Few. 

    Detective Inspector Albie Alexander of the National Organised Crime Group says this seizure will make a significant dent into the supply of methamphetamine in the Western Bay of Plenty.

    “Even more significantly, we believe we have now shut down an insider threat at the port, and enquiries into this aspect will continue.”

    It’s estimated the 200kg of methamphetamine equates to 10 million doses and its seizure has prevented up to $209.5m of social harm to the New Zealand economy.

    While the retail value of 10 million doses may be as high as $75m, the wholesale value of the drugs is estimated to be between $14m and $32m.

    “This illustrates another example of the continuing cooperation and strong partnerships we have with Customs and our local and domestic partners in targeting criminal activity at our borders and in the community,” says Detective Inspector Alexander. 

    Customs Investigations Manager Dominic Adams says that New Zealand continues to be an attractive market for organised criminal groups to smuggle drugs including methamphetamine and cocaine, as well as illicit tobacco.

    Customs is seeing an increase in legitimate imports being targeted by overseas criminal groups who conceal illicit drugs within freight containers or container contents, which are later recovered by New Zealand-based criminals. This can involve attempted break-ins to collect the drugs.

    “We know that criminal groups attempt to circumvent border and port security processes to intercept drugs. We work closely with port companies, their security teams and our Police colleagues to ensure people who intentionally attempt to breach port security measures are identified and apprehended. Our increased port and maritime presence is helping us face this threat,” Mr Adams says.   

    “Criminal infiltration of the supply chain is common overseas, and it is a threat that all supply chain businesses including port companies should be alert to. The Customs Border Protect team has a range of resources to support businesses to identify and report criminal infiltration in the supply chain.”

    To report suspicious activity, call 0800 WE PROTECT (0800 937 768) confidentially or call CrimeStoppers anonymously on 0800 555 111. For more information, visit www.customs.govt.nz/report.

    ENDS

    Issued by the Police Media Centre

    MIL OSI New Zealand News –

  • MIL-OSI Security: Sixteen Cardiology Practices to Pay a Total of $17.7M to Resolve False Claims Act Allegations Concerning Inflated Medicare Reimbursements

    Source: United States Attorneys General 6

    Sixteen separate cardiology practices and associated physicians, located across 12 states, have agreed to pay amounts totaling $17,761,564 to resolve allegations that they each violated the False Claims Act by overbilling Medicare for diagnostic radiopharmaceuticals.

    Diagnostic radiopharmaceuticals are radioisotopes bound to biological molecules that target specific organs, tissues or cells within the human body and are used to diagnose and, in some cases, treat certain cancers and diseases. In 13 states and the District of Columbia, Medicare Part B reimburses healthcare providers for diagnostic radiopharmaceuticals based on the provider’s acquisition cost. In those jurisdictions, Medicare’s contractors have published guidance explaining the reimbursement methodology and providers’ obligation to accurately report their invoice costs for diagnostic radiopharmaceuticals. The government alleged that the settling cardiology practices regularly reported inflated acquisition costs to Medicare for these drugs. In each of the settlements, the conduct occurred for at least a year, and in some instances, the conduct extended over a period of more than 10 years.

    “The financial stability of federal healthcare programs depends upon providers complying with applicable billing rules,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to ensuring that Medicare funds are expended appropriately and to pursuing those who knowingly fail to do so.”

    The settling medical practices and associated physicians have agreed to pay the following amounts:

    • Western Kentucky Heart & Lung Associates PSC and Mohammed Kazimuddin ($6,750,000)
    • Heart Clinic of Paris P.A. and Arjumand Hashmi ($2,600,000)
    • Scranton Cardiovascular Physician Services LLC ($2,369,111)
    • Shannon Clinic ($996,856)
    • Edward W. Leahey M.D. Professional Association and Edward Leahey ($894,679)
    • Metropolitan Cardiovascular Consultants LLC and Ayim Djamson ($846,888)
    • Cardiology Center of New Jersey LLC, Mario Criscito, Frank Iacovone, and Sameer Kaul ($740,000)
    • Clovis Cardiology Associates LLC and Mahamadu Fuseini ($600,000)
    • Family Medical Specialty Clinic PLLC, Melecio Abordo, and June Abadilla ($409,594)
    • James R. Higgins M.D. Inc. and James Higgins ($395,537)
    • TrustCare Health LLC ($279,407)
    • Taj Medical Inc. ($240,000)
    • White River Diagnostic Clinic PLC, Margaret Kuykendall, and Seth Barnes ($234,490)
    • Veinguard Heart & Vascular Center P.C. and Fareeha Khan ($195,000)
    • Boulder Medical Center PC ($160,000)
    • Wellspring Cardiac Care P.A. ($50,000).

    “Practices and providers who overcharge the government and fail to return overpayments compromise our healthcare programs,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “When people see the wrong and report it, we have the tool we need to put a stop to this type of irresponsible conduct. So, I applaud the whistleblowers who came forward in this case.”

    “These practitioners overbilled the Medicare program by grossly exaggerating the acquisition costs of drugs used in diagnostic imaging of the heart,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “This office is committed to protecting our federal health care programs, and we will hold accountable anyone who seeks to exploit them.”

    “Medicare providers are required to be honest and accurate in the costs they report for reimbursement,” said Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate alleged false claims act violations and ensure the integrity of the Medicare program. ”

    The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators Jasjit Walia and Preet Randhawa in the District of Columbia and the Western District of Kentucky. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblowers will receive a total of more than $2.7 million from the settlements announced today.

    The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the District of Columbia and Western District of Kentucky, with assistance from the HHS Office of Counsel to the Inspector General and Office of Investigations.

    The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).

    Trial Attorney James Nealon of the Justice Department’s Civil Division and Assistant U.S. Attorneys Ben Schecter, Matt Weyand, John Truong and Stephen DeGenaro for the District of Columbia handled the matter.

    The claims resolved by the settlements are allegations only. There has been no determination of liability.

    View the Heart Clinic of Paris settlement agreement here.

    View the Leahey settlement agreement here.

    View the Scranton settlement agreement here.

    View the Metropolitan settlement agreement here.

    View the Shannon Clinic settlement agreement here.

    View the Family Medical Specialty Clinic settlement agreement here.

    View the Taj Medical settlement agreement here.

    View the TrustCare settlement agreement here.

    View the Veinguard settlement agreement here.

    View the Wellspring settlement agreement here.

    View the White River settlement agreement here.

    View the WKHL settlement agreement here.

    View the Boulder Medical Center settlement agreement here.

    View the CCNJ settlement agreement here.

    View the Clovis settlement agreement here.

    View the Higgins settlement agreement here.

    MIL Security OSI –

  • MIL-OSI Security: Registered Sex Offender sentenced to 10 years in prison for possession of images of child sexual abuse

    Source: Office of United States Attorneys

    Defendant who raped 11-year-old child, found with child sexual abuse images after more than 10 years in prison and deviancy treatment

    Seattle –A 53-year-old Des Moines, Washington, man, who is a registered sex offender, was sentenced today to ten years in prison for possession of images of child sexual abuse, announced U.S. Attorney Tessa M. Gorman. Edward James Creed was on Washington State Department of Corrections supervision when he was found to have unapproved electronic devices in his residence and images of child sexual abuse on his phone. At the sentencing hearing U.S. District Judge Kymberly K. Evanson said, “creating a market for this material perpetuates the horrific abuse of children.”

    According to records filed in the case, Creed previously served more than ten years in state custody for a 2008 Kitsap County conviction for rape of a child. He was released in 2017 but was returned to custody for a time in 2019. In March of 2024, community corrections review of his phone revealed that he had collected seventy images of child sexual abuse. After his arrest, a search of his room at the sex offender residence revealed that he had a number of unapproved electronic devices.

    In asking for the ten year sentence Assistant United States Attorney Cecelia Gregson wrote to the court, “In light of the defendant’s demonstrated sexualized interest in minors, it bears repeating that it is exceedingly troubling Creed successfully completed a sexual deviancy treatment program in prison and after two relatively short periods of time in the community was caught seeking out (2020) or successfully obtaining (2024) child sexual abuse material and unlawfully accessing the internet to do so…. He has proven history of deceiving those tasked with monitoring him in the community and has demonstrated a significant commitment to do so.”

    Judge Evanson ordered Creed to be on 15 years of supervised release to follow prison.

    The case was investigated by Homeland Security Investigations (HSI) and the Washington State Department of Corrections.

    The case was prosecuted by Assistant United States Attorney Cecelia Gregson.

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

    MIL Security OSI –

  • MIL-OSI Security: Armed Career Criminal Sentenced to Over 16 Years of Imprisonment for Possession of a Firearm

    Source: Office of United States Attorneys

    Memphis, TN – Tommie Conner, 49, of Memphis, has been sentenced to 200 months in federal prison for being a convicted felon in possession of a firearm.  Acting United States Attorney Reagan Fondren announced the sentence today.

    According to evidence presented in court, on March 4, 2021, an officer with the Memphis Police Department observed a Dodge Durango speeding on American Way.  The Durango was pulled over and the driver, later identified as Conner, fled.  Conner was later located by officers who arrived at the scene.  While investigating the offense, officers saw a handgun in plain view in the Durango.  Officers obtained a search warrant and recovered a loaded SCCY 9mm pistol.  

    Conner is a felon who is prohibited from possessing firearms.  Specifically, in 1993, Conner pled guilty to two counts of robbery and three counts of aggravated robbery in state court and was sentenced to 10 years of incarceration. In 2005, Conner was convicted in federal court in the Western District of Tennessee for being a felon in possession of a firearm and was sentenced to 15 years of federal imprisonment after he was determined to be an armed career criminal.  

    In September 2021, Conner was indicted in the Western District of Tennessee for being a felon in possession of a firearm.  In June 2024, a jury found Conner guilty of that offense.  It also found that at least three of Conner’s prior offenses occurred on different occasions, as required for him to be sentenced as an armed career criminal under the ACCA (Armed Career Criminal Act).

    On December 19, 2024, United States District Court Senior Judge John T. Fowlkes sentenced Conner to 200 months in federal prison with three years of supervised release to follow.  There is no parole in the federal system.

    This case is part of the Project Safe Neighborhood (PSN) Initiative, a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone.  On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

    This case was investigated by the (PSN) Gun Task Force, the Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

    Acting U.S. Attorney Fondren thanked Assistant United States Attorneys Greg Wagner and Jermal Blanchard who prosecuted this case on behalf of the government and the law enforcement partners who investigated this case.

    ###

    For more information, please contact the Media Relations Team at USATNW.Media@usdoj.gov. Follow the U.S. Attorney’s Office on Facebook or on X at @WDTNNews for office news and updates.

    MIL Security OSI –

  • MIL-OSI USA: Chinese National Indicted in El Paso, Texas, and Arrested in Las Vegas for Alleged Conspiracy to Sell Equipment Used to Manufacture Counterfeit Pills

    Source: US State Government of Utah

    A federal grand jury in the Western District of Texas charged a Chinese national with two counts related to alleged distribution of pill press equipment that can be used by criminals to manufacture illegal drugs laced with fentanyl.

    Department of Homeland Security agents arrested the defendant, Xaiofei Chen, at a trade show in Las Vegas on Oct. 29. According to the criminal complaint supporting her arrest warrant, Chen sold pill press machines that can be used with molds, stamps or dies mimicking commonly prescribed controlled substances to produce counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs. Specifically, the criminal complaint alleges that Chen worked for a Chinese-based company that sold die molds and equipment, and that Chen sold pill press equipment and counterfeit die molds to buyers in the United States. The complaint further alleges that Chen avoided Drug Enforcement Administration (DEA) disclosure requirements by dismantling equipment and shipping parts in separate packages into the United States. This equipment allegedly included counterfeit dies, including M30 dies meant to mimic a common prescription drug but which are regularly used to make fake opioid pills. The complaint alleges that the packages that Chen sent also were mislabeled to conceal the illegal equipment that they contained.

    The Controlled Substances Act prohibits the sale of pill press equipment and counterfeit die molds to individuals who intend to use these machines unlawfully and requires reporting of certain equipment sales. Counterfeit pills made on such equipment can be laced with fentanyl and other dangerous drugs. According to the Centers for Disease Control and Prevention (CDC), fentanyl is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl and related substances have devastated communities across the United States and fuel the ongoing drug overdose epidemic, which the CDC recently estimated killed approximately 107,000 Americans in 2023. Fentanyl overdose is the leading cause of death for Americans ages 18 to 49. In recent years, more than half of counterfeit pills tested have been found to have a potentially lethal dose of fentanyl.

    “The fentanyl epidemic has taken hundreds of thousands of American lives, and this case reflects the department’s unwavering commitment to prosecuting every level of the deadly fentanyl supply chain,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to protect Americans by prosecuting those involved in the unlawful sale of parts and equipment that can be used to manufacture counterfeit pills.”

    “The defendant allegedly sold equipment that can be used to make dangerous opioid pills harmful to American families,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI is proud to work with our law enforcement partners to prevent the distribution of equipment commonly used in the manufacture of these destructive drugs.”

    A federal court in Nevada ordered Chen, a foreign national, detained pending her trial in El Paso where the indictment was returned on Nov. 20. The indictment charges Chen with one count of conspiracy to distribute and import a tableting machine used to manufacture a controlled substance and one count of conspiracy to distribute dies designed to imprint and reproduce the trademark, trade name and other identifying mark and imprint of another. If convicted, Chen faces a maximum penalty of four years in prison and a $250,000 fine. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    HSI and Customs and Border Protection are investigating the case.

    Trial Attorneys Edward E. Emokpae, Scott B. Dahlquist and Kaitlin Sahni of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Laura Franco Gregory and Donna S. Miller for the Western District of Texas are prosecuting the case. Attorneys Colin Trundle and Sarah Williams of the Consumer Protection Branch also provided valuable assistance.

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

    MIL OSI USA News –

  • MIL-OSI Security: More Than a Dozen Cardiology Practices Will Pay Over $17.7 Million to Resolve False Claims Act Allegations Concerning Inflated Medicare Reimbursements

    Source: Office of United States Attorneys

                WASHINGTON – The U.S. Attorney’s Office announced today the resolution of False Claims Act violations against 16 separate cardiology practices and associated physicians, located across 12 states, and their agreement to pay a total of $17,761,564 to resolve allegations that they violated the False Claims Act by overbilling Medicare for diagnostic radiopharmaceuticals. The U.S. Attorney’s Office for the District of Columbia was involved in 14 of these settlements, resulting in a total of $10,601,970.97. The remaining amount was captured by the U.S. Attorney’s Office for the Western District of Kentucky. The Department of Justice also announced these settlements.

              Diagnostic radiopharmaceuticals are radioisotopes bound to biological molecules that target specific organs, tissues or cells within the human body and are used to diagnose and in some cases, treat certain cancers and diseases. In 13 states and the District of Columbia, Medicare Part B reimburses healthcare providers for diagnostic radiopharmaceuticals based on the provider’s acquisition cost. In those jurisdictions, Medicare’s contractors have published guidance explaining the reimbursement methodology and providers’ obligation to accurately report their invoice cost for diagnostic radiopharmaceuticals. The government alleged that the settling cardiology practices regularly reported inflated acquisition costs to Medicare for these drugs. In each of the settlements, the conduct occurred for at least a year, and in some instances, the conduct extended over a period of more than 10 years.

              “Practices and providers who overcharge the government and fail to return overpayments compromise our healthcare programs,” said U.S. Attorney Graves. “When people see the wrong and report it, we have the tool we need to put a stop to this type of irresponsible conduct. So I applaud the whistleblowers who came forward in this case.”

              “The integrity of federal healthcare programs depends upon compliance with billing rules that are used to determine reimbursement,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to ensuring that Medicare funds are expended appropriately.”

              The settling medical practices and associated physicians have agreed to pay the following amounts:

    •           Heart Clinic of Paris, P.A. and Arjumand Hashmi ($2.6m)

    •           Scranton Cardiovascular Physician Services, LLC ($2,369,111)

    •           Shannon Clinic ($996,856)

    •           Edward W. Leahey M.D. Professional Association and Edward Leahey ($894,679)

    •           Metropolitan Cardiovascular Consultants, LLC and Ayim Djamson ($846,888)

    •           Cardiology Center of New Jersey, LLC, Mario Criscito, Frank Iacovone, and Sameer Kaul ($740,000)

    •           Clovis Cardiology Associates LLC and Mahamadu Fuseini ($600,000)

    •           James R. Higgins M.D., Inc. and James Higgins ($395,537)

    •           TrustCare Health, LLC ($279,407)

    •           Taj Medical, Inc. ($240,000)

    •           White River Diagnostic Clinic, PLC, Margaret Kuykendall, and Seth Barnes ($234,490)

    •           Boulder Medical Center, PC ($160,000)

    •           (USAO-WDKY) Western Kentucky Heart & Lung Associates PSC and Mohammed Kazimuddin ($6,750,000)

    •           (USAO-WDKY) Family Medical Specialty Clinic, PLLC, Melecio Abordo, and June Abadilla ($409,594)

              “These practitioners overbilled the Medicare program by grossly exaggerating the acquisition costs of drugs used in diagnostic imaging of the heart,” said Michael A. Bennett, United States Attorney for the Western District of Kentucky. “This Office is committed to protecting our federal health care programs, and we will hold accountable anyone who seeks to exploit them.”

              “Medicare providers are required to be honest and accurate in the costs they report for reimbursement,” said Special Agent in Charge Maureen Dixon, for the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to investigate alleged false claims act violations and ensure the integrity of the Medicare program.”

              The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relators Jasjit Walia and Preet Randhawa in the District of Columbia and the Western District of Kentucky.  Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The whistleblowers will receive a total of approximately $2.2 million from the settlements announced today.

              The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Offices for the District of Columbia and Western District of Kentucky, with assistance from the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations.

              The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

              The matter was handled by Trial Attorney James Nealon and Assistant U.S. Attorneys Ben Schecter and Matt Weyand from Western District of Kentucky, and Stephen DeGenaro and John C. Truong from the District of Columbia.

    The claims resolved by the settlement are allegations only and there has been no determination of liability.

    MIL Security OSI –

  • MIL-OSI Security: Alleged Fentanyl Trafficker Extradited From Honduras To Face Charges In San Francisco

    Source: Office of United States Attorneys

    Gustavo Erazo Is Charged with Conspiring to Distribute, and Possessing with Intent to Distribute, Large Quantities of Fentanyl, Heroin, and Cocaine

    SAN FRANCISCO – The government of Honduras extradited Gustavo Erazo, a Honduran national, to the United States this week to appear on charges stemming from his alleged involvement in a conspiracy to distribute fentanyl, heroin, and cocaine in the San Francisco Bay Area. The extradition marks the sixth extradition of an alleged drug trafficker from Honduras to the Northern District of California this year.

    On Jan. 5, 2023, a federal grand jury indicted Erazo, 49, at the time a resident of Oakland, and two other defendants, on charges of conspiring to distribute fentanyl and possessing fentanyl, heroin, and cocaine with the intent to distribute those substances. Erazo was charged in four of the eight counts in the indictment:

    Count Charge Statute(s) Statutory Maximum Prison Term

    1

    		 Conspiracy to Distribute and Possess with Intent to Distribute 400 Grams or More of Fentanyl 21 U.S.C. §§ 846 and 841(a)(1), (b)(1)(A)(vi)

    Life

    2

    		 Possession with Intent to Distribute 400 Grams or More of Fentanyl 21 U.S.C. § 841(a)(1), (b)(1)(A)(vi)

    Life

    3

    		 Possession with Intent to Distribute 100 Grams or More of Heroin 21 U.S.C. § 841(a)(1), (b)(1)(B)(i)

    40 years

    4

    		 Possession with Intent to Distribute 500 Grams or More of Cocaine 21 U.S.C. § 841(a)(1), (b)(1)(B)(ii)

    40 years

    According to a criminal complaint filed before the indictment, Erazo was arrested in November 2022 outside an apartment in Berkeley, Calif. At the time of his arrest, Erazo was carrying a backpack in which he had nearly four pounds of suspected drugs, including almost a kilogram of suspected fentanyl and more than half a pound each of suspected heroin and suspected cocaine. Inside the apartment, law enforcement officers found nearly 21 pounds of suspected drugs, including nearly 15 pounds of suspected fentanyl, more than two pounds of suspected cocaine, and more than one pound of suspected heroin. Officers also found drug manufacturing equipment, two firearms, ammunition, and cash inside the apartment.

    According to court documents, the Drug Enforcement Administration (DEA) learned after Erazo was charged in federal court that he had traveled back to Honduras. The Justice Department’s Office of International Affairs worked with Honduran authorities and the DEA to secure the arrest and extradition of Erazo, who arrived back in the United States on Dec. 19, 2024. He appeared before U.S. Magistrate Judge Sallie Kim today for arraignment on the indictment and further proceedings. Erazo is next scheduled to appear in court for a status hearing before U.S. Magistrate Judge Lisa J. Cisneros on Dec. 23, 2024.

    An indictment merely alleges that crimes have been committed.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Erazo faces a maximum sentence of life imprisonment and a maximum fine of $10,000,000 on Counts 1 and 2, and a maximum sentence of 40 years in prison and a maximum fine of $5,000,000 on Counts 3 and 4. He also faces a lifetime term of supervised release and a mandatory $100 special assessment on each count. Any sentence following a conviction would be imposed by a court only upon consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

    United States Attorney Ismail J. Ramsey and DEA Special Agent in Charge Bob P. Beris made the announcement.

    Assistant U.S. Attorney Nicholas Parker is prosecuting the case with the assistance of Jessie Chelsea and Linda Love. The prosecution is the result of an investigation by the DEA, with assistance from the San Francisco Police Department.
     

    MIL Security OSI –

  • MIL-OSI Security: East Bay Man Who Claimed His Marijuana Distribution Business Was A “Nonprofit” Sentenced To Over Three Years For Pandemic Relief Loan Fraud

    Source: Office of United States Attorneys

    SAN FRANCISCO – A Brentwood man was sentenced yesterday to 37 months in prison for defrauding the United States by obtaining approximately $300,000 in COVID-19 relief funds for his “nonprofit” that was an unlicensed marijuana distribution business.  The sentence was handed down by the Honorable Rita F. Lin, U.S. District Judge, following defendant’s guilty plea on two counts of wire fraud.

    According to court documents, Thanh Duy Nguyen, 53, ran and was the sole officer of T&A Distribution, an unlicensed interstate marijuana trafficking scheme with grow houses around the Bay Area.  Nguyen used T&A Distribution to obtain two Economic Injury Disaster Loans (EIDL) from the U.S. Small Business Administration (SBA).  The Coronavirus Aid, Relief, and Economic Security Act authorized the SBA to provide EIDL loans to small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.

    In the first application, which he submitted in April 2020, Nguyen certified that he was not engaged in any illegal activity as defined by federal law, even though he knew that his marijuana distribution business was illegal under federal law.  Nguyen fraudulently claimed that T&A Distribution was a nonprofit in the business of “Antiques/Collectibles,” when its business was marijuana distribution.  Nguyen also made other false statements, including about T&A Distribution’s gross revenue and employee count.  The true amount of T&A Distribution’s gross revenues in the 12 months before Jan. 31, 2020, was approximately $2.4 million.

    On a second EIDL application, which he submitted in June 2020, Nguyen again falsely certified that he was not engaged in any illegal activity as defined by federal law, and misrepresented T&A Distribution as a nonprofit in the business of “Miscellaneous Services.”  He also made false statements about the business’s gross revenues, cost of operations, and employee count.

    As a result of the falsified applications, Nguyen received approximately $300,000 in EIDL funds.  He used a significant amount of the loan funds for his marijuana distribution business and for gambling.

    In addition to the term of imprisonment, Judge Lin sentenced Nguyen to three years of supervised release and to pay $300,000 in restitution and $300,000 in forfeiture.  Nguyen will begin serving his sentence on Feb. 28, 2025.

    United States Attorney Ismail J. Ramsey, Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris, and SBA Office of Inspector General (OIG) Special Agent in Charge of the Western Region Weston King made the announcement.

    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.

    Assistant United States Attorney Joseph Tartakovsky prosecuted the case with the assistance of Sara Slattery.  The prosecution is the result of an investigation by DEA and SBA OIG.
     

    MIL Security OSI –

  • MIL-OSI Security: Alexandria Man Sentenced to Federal Prison for Possessing a Machine Gun

    Source: Office of United States Attorneys

    ALEXANDRIA, La. – Kaelin Williams, 27, of Alexandria, was sentenced today by United States District Judge Dee D. Drell for illegal possession of a machine gun, announced U.S. Attorney Brandon B. Brown. Williams was sentenced to 30 months in prison, followed by 2 years of supervised release. 

    Williams was charged in an indictment with one count of illegal possession of a machine gun and he pleaded guilty to the charge on August 21, 2024. On March 1, 2024, a federal search warrant was executed on Williams and his brother’s residence in Alexandria. At the time of the execution of the search warrant, Williams was the sole occupant of the residence and was found with two machine guns, both being Anderson Model AM-15 AR-Type multi-caliber pistols each containing a machine gun conversion device. In addition, law enforcement agents found several additional machine gun conversion devices, often referred to as “Glock switches.”  Williams acknowledged to agents that he knew the “Glock switches” were illegal and that they turned a firearm into a machine gun. 

    The case was investigated by the ATF, Homeland Security Investigations and Alexandria Police Department and prosecuted by Assistant United States Attorney Lauren L. Gardner.

    This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

    # # #

    MIL Security OSI –

  • MIL-OSI Security: Chinese National Indicted in El Paso, Texas, and Arrested in Las Vegas for Alleged Conspiracy to Sell Equipment Used to Manufacture Counterfeit Pills

    Source: United States Attorneys General

    A federal grand jury in the Western District of Texas charged a Chinese national with two counts related to alleged distribution of pill press equipment that can be used by criminals to manufacture illegal drugs laced with fentanyl.

    Department of Homeland Security agents arrested the defendant, Xaiofei Chen, at a trade show in Las Vegas on Oct. 29. According to the criminal complaint supporting her arrest warrant, Chen sold pill press machines that can be used with molds, stamps or dies mimicking commonly prescribed controlled substances to produce counterfeit pills that appear indistinguishable from legitimate pharmaceutical drugs. Specifically, the criminal complaint alleges that Chen worked for a Chinese-based company that sold die molds and equipment, and that Chen sold pill press equipment and counterfeit die molds to buyers in the United States. The complaint further alleges that Chen avoided Drug Enforcement Administration (DEA) disclosure requirements by dismantling equipment and shipping parts in separate packages into the United States. This equipment allegedly included counterfeit dies, including M30 dies meant to mimic a common prescription drug but which are regularly used to make fake opioid pills. The complaint alleges that the packages that Chen sent also were mislabeled to conceal the illegal equipment that they contained.

    The Controlled Substances Act prohibits the sale of pill press equipment and counterfeit die molds to individuals who intend to use these machines unlawfully and requires reporting of certain equipment sales. Counterfeit pills made on such equipment can be laced with fentanyl and other dangerous drugs. According to the Centers for Disease Control and Prevention (CDC), fentanyl is a highly addictive synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl and related substances have devastated communities across the United States and fuel the ongoing drug overdose epidemic, which the CDC recently estimated killed approximately 107,000 Americans in 2023. Fentanyl overdose is the leading cause of death for Americans ages 18 to 49. In recent years, more than half of counterfeit pills tested have been found to have a potentially lethal dose of fentanyl.

    “The fentanyl epidemic has taken hundreds of thousands of American lives, and this case reflects the department’s unwavering commitment to prosecuting every level of the deadly fentanyl supply chain,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to protect Americans by prosecuting those involved in the unlawful sale of parts and equipment that can be used to manufacture counterfeit pills.”

    “The defendant allegedly sold equipment that can be used to make dangerous opioid pills harmful to American families,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI is proud to work with our law enforcement partners to prevent the distribution of equipment commonly used in the manufacture of these destructive drugs.”

    A federal court in Nevada ordered Chen, a foreign national, detained pending her trial in El Paso where the indictment was returned on Nov. 20. The indictment charges Chen with one count of conspiracy to distribute and import a tableting machine used to manufacture a controlled substance and one count of conspiracy to distribute dies designed to imprint and reproduce the trademark, trade name and other identifying mark and imprint of another. If convicted, Chen faces a maximum penalty of four years in prison and a $250,000 fine. A federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

    HSI and Customs and Border Protection are investigating the case.

    Trial Attorneys Edward E. Emokpae, Scott B. Dahlquist and Kaitlin Sahni of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Laura Franco Gregory and Donna S. Miller for the Western District of Texas are prosecuting the case. Attorneys Colin Trundle and Sarah Williams of the Consumer Protection Branch also provided valuable assistance.

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

    MIL Security OSI –