PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Combustion Research and Flow Technology, Inc. (“CRAFT”) based in Pipersville, PA, has agreed to pay $192,586 and implement enhanced compliance measures to resolve claims arising from its administration of Small Business Innovation and Research (“SBIR”) contracts funded through the Department of Defense and the National Aeronautics and Space Administration (“NASA”). Concurrent with its settlement with the Department of Justice, CRAFT reached an administrative agreement with the Department of Defense in which CRAFT committed to enhancing its compliance practices relating to SBIR contracts and timekeeping.

Like all federal agencies, the Department of Defense and NASA seek to support American small businesses through the award of research and technology development contracts.  Their SBIR contracts and those of other agencies form “America’s seed fund,” providing critical capital to small businesses across the United States to develop new technologies or products.  These products can be commercialized to provide small businesses with revenue streams to maintain or expand their operations for years to come.

The settlement resolves claims that CRAFT proposed that work would be performed by particular individuals – including in some cases its principal investigator on the research – who then performed little or no documented work on the contract, and that CRAFT neither sought nor received permission to substitute personnel under these contracts. Principal investigators, particularly, are supposed to have frequent contact with research personnel and have the overall responsibility for managing each project’s finances, administration, and scientific and technical direction. The United States does not allege that there was any issue with the quality or functionality of the research or other output that CRAFT produced under these contracts.

"Federally contracted researchers must account accurately for their time so that the United States knows it has received the work for which it bargained. Timekeeping obligations are especially important for the principal investigators and other key personnel upon whose qualifications the contracts were awarded,” said Acting U.S. Attorney Williams. “Whether a contractor is a small business, a major university, or a Fortune 500 company, principal investigators need to ensure that the government knows who is doing the work, and any changes in personnel must be clearly communicated to the United States before being made.” 

“The Defense Criminal Investigative Service (DCIS) is committed to protecting research and development programs funded by the U.S. Department of Defense,” said Patrick J. Hegarty, Special Agent in Charge of the DCIS Northeast Field Office.  “Today's settlement agreement is the result of a joint investigative effort and demonstrates our commitment to work with the USAO-EDPA and our law enforcement partners to ensure that claims submitted on SBIR contracts are proper.”

“SBIR/STTR program participants must accurately represent that they meet and will abide by the program’s compliance requirements,” said Special Agent-in-Charge, Mark. J. Zielinski, Eastern Field Office, NASA Office of Inspector General (“NASA OIG”). “Identifying attempts to circumvent the program requirements is one step in safeguarding access to limited government resources. NASA OIG, along with its law enforcement partners, will continue to aggressively investigate individuals and entities to ensure that American taxpayers get the work for which they contracted.”

Acting United States Attorney Williams also praised CRAFT’s agreement to enhance its compliance program: “We commend CRAFT for reacting promptly to the government’s investigation, cooperating fully, and taking serious steps to ensure this issue never recurs.  We hope the compliance measures it has undertaken will be a model for other grantees and contractors looking to meet their responsibilities to the United States.”

This investigation was conducted as part of the United States Attorney’s Office for the Eastern District of Pennsylvania’s Affirmative Civil Enforcement Strike Force’s grant fraud initiative with investigators from DCIS, NASA-OIG, the U.S. Army Criminal Investigation Command, the Naval Criminal Investigative Service, the Air Force Office of Special Investigations, and the Department of Homeland Security Office of Inspector General. Assistant United States Attorneys Paul W. Kaufman and Veronica J. Finkelstein of the Eastern District of Pennsylvania handled the investigation and settlement. 

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

Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.

COUNCIL BLUFFS, IA – On April 12, 2021, United States District Court Judge Rebecca Goodgame Ebinger sentenced Lindsay Hurst, age 35, of Council Bluffs, to 126 months in prison for distributing methamphetamine announced Acting United States Attorney Richard D. Westphal. Hurst was ordered to serve five years of supervised release to follow her prison term and pay $100 to the Crime Victims’ Fund. There is no parole in the federal system.

In January and February 2020, Hurst sold methamphetamine to a confidential informant on three occasions - selling approximately 130.83 grams total of actual methamphetamine. Hurst pleaded guilty on November 20, 2020, to the methamphetamine charge.

This investigation was conducted by the Council Bluffs Police Department and Southwest Iowa Narcotics Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa

CLARKSBURG, WEST VIRGINIA – Anthony A. Shuster, Jr., of Caldwell, Ohio, was sentenced today to 70 months of incarceration for drug and firearms charges, Acting United States Attorney Randolph J. Bernard announced.

Anthony Shuster, also known as “Tiny,” 35, pled guilty to one count of “Distribution of More than 50 Grams of Methamphetamine” in September 2020. Shuster admitted to selling more than 50 grams of methamphetamine, also known as “crystal meth” and “ice,” in January 2019 in Ritchie County.

Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.

Senior U.S. District Judge Irene M. Keeley presided.
 

WILMINGTON, N.C. – A Norlina man was sentenced today to 108 months in prison for possession with intent to distribute 28 grams or more of cocaine base (crack) and a quantity of cocaine and marijuana, maintaining a dwelling for the purpose of manufacturing, distributing, and using any controlled substance, and felon in possession of a firearm. 

According to court documents, William Leon Mayfield, 60, also known as “Moon,” sold crack cocaine to a confidential information out of a residence in Norlina on multiple occasions.  Following those controlled purchases, the Warren County Sheriff’s Office obtained a search warrant for the residence and executed it on June 13, 2019.  During that search, deputies found a loaded firearm, quantities of cocaine, crack cocaine, marijuana, and U.S. currency.  Mayfield is a convicted felon, having been convicted of numerous drug and gun charges in and around Warren and Vance Counties. 

Mayfield pled guilty to the charges on November 5, 2020.

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by Chief U.S. District Judge Richard E. Myers, II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Warren County Sheriff’s Office investigated the case and Assistant U.S. Attorney Robert J. Dodson  prosecuted the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-230-M.

BOSTON – A Dominican national pleaded guilty on Friday, April 16 in federal court in Boston to illegally reentering the United States after being deported.

Danny Rivera Zorilla, 38, pleaded guilty to one count of illegal reentry into the United States after deportation. U.S. District Court Judge Indira Talwani scheduled sentencing for Aug. 25, 2021. Rivera Zorilla was indicted in February 2020.

Rivera Zorilla was arrested in 2010 and later convicted in Woburn District Court for distribution of cocaine. On March 19, 2013 he was deported to the Dominican Republic. Rivera Zorilla later reentered the United States illegally and was arrested in 2019 in Malden but released from custody. In September 2020, immigration agents located and arrested Rivera Zorilla on the charge in this case.

The charging statute provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Rivera Zorilla will face deportation proceedings upon completion of his sentence. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Todd Lyons, Field Office Director of Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Mendell’s Major Crimes Unit is prosecuting the case.

A criminal complaint was filed today in federal court in Brooklyn charging Lionel Virgile with attempted arson by allegedly using an improvised incendiary device commonly known as a “Molotov Cocktail” to damage and destroy a New York City Police Department (NYPD) vehicle while police officers were inside the vehicle.  Virgile was arrested on Saturday and made his initial appearance this afternoon before United States Magistrate Judge Robert M. Levy.  The defendant was ordered detained pending trial.

Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, NYPD, announced the arrest and charges.

“As alleged, the defendant deliberately sought to severely injure an NYPD police officer by throwing bleach at his eyes and to ignite an NYPD vehicle with officers inside by hurling a lit Molotov cocktail at it," stated Acting United States Attorney Lesko.  “This Office simply will not tolerate the intentional infliction of physical harm on NYPD officers while they are working to protect our communities.” Mr. Lesko thanked the Kings County District Attorney’s Office for their assistance with the investigation.

“Virgile’s alleged attack on members of the NYPD is yet another reminder of the danger law enforcement officers face on a daily basis—and today’s charges should serve as a reminder to all that this type of behavior will be met with a swift response.  As Virgile has now learned, the federal charge he faces carries the potential for a lengthy federal prison sentence.  The NYPD’s quick response in neutralizing this threat to the public is a testament to its professionalism and dedication to keeping our city safe,” stated FBI Assistant Director-in-Charge Sweeney. 

“Attacks on uniformed police officers, as alleged in this federal complaint, are not only crimes against our sworn public servants but are unacceptable assaults on the fabric of society. I commend our NYPD officers and our partners in the FBI and the United States Attorney’s Office in the Eastern District of New York for working closely to ensure that Lionel Virgile, the accused assailant in this case, faces justice,” stated NYPD Commissioner Shea.

According to the complaint, in the morning of April 17, 2021, NYPD officers in a marked vehicle observed Virgile drive his Lincoln Town Car through a steady red traffic light at the intersection of Clarendon Road and East 45^th Street in East Flatbush.  When the officers approached Virgile’s car, he opened the driver side door and threw a cup containing a chemical substance in one of the NYPD officer’s eyes that was later determined to be bleach.  The officer sustained chemical burns on his face and has since been discharged from the hospital.  Virgile fled in the Lincoln Town car and was pursued by officers in another NYPD vehicle.  Approximately 10 minutes later, Virgile pulled over, exited his Lincoln Town Car and threw a lit Molotov cocktail at the NYPD vehicle pursuing him.  The Molotov cocktail struck the windshield of the NYPD vehicle and shattered on the sidewalk.  The Molotov cocktail consisted of a glass beverage bottle containing gasoline and a cloth wick.  The defendant subsequently crashed into a parked car on Snyder Avenue and was apprehended by the NYPD.  Five additional Molotov cocktails and a red jerry can were found in Virgile’s Lincoln Town Car.       

The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted, Virgile faces up to 20 years’ imprisonment.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant United States Attorneys Sara K. Winik and Joy Lurinsky are in charge of the prosecution.

The Defendant:

LIONEL VIRGILE
Age:  44
Brooklyn, New York

E.D.N.Y. Docket No. 21-MJ-483

BOSTON – A federal grand jury in Springfield last week indicted a Pittsfield man on child pornography charges.

Benjamin Shacar, 34, was indicted on April 15, 2021 on 10 counts of receipt of child pornography and one count possession of child pornography. Shacar was charged by criminal complaint in March 2021.

According to charging documents, between August 2020 and March 2021, Shacar allegedly received and possessed child pornography. Law enforcement agents executed a search warrant at Shacar’s residence and uncovered a thumb drive containing multiple files depicting children engaged in sexually explicit conduct. During an on-scene interview, Shacar allegedly admitted that he viewed and downloaded child pornography from the internet.

The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Each charge also provides for a mandatory minimum of five years and up to life of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Hampden County Sheriff Nicholas Cocchi; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Pittsfield Police Chief Michael J. Wynn made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.

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

The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

RALEIGH, N.C. – An Elizabeth City man was sentenced today to 162 months in prison for three counts of Interference with Commerce by Robbery and Brandishing a Firearm in Furtherance of a Crime of Violence.

According to court documents, on October 22, 2019, Marcus Alexander Waldo, Jr., 20, robbed the Family Fare on U.S. Highway 17 South in Elizabeth City at gunpoint.  He pointed a firearm at the clerk’s head and demanded money.  The clerk complied and Waldo fled the store.  A week later, on October 29, 2019, Waldo robbed the Dollar General on Oak Stump Road in Elizabeth City in a similar fashion.  Waldo pointed a firearm at the store clerk, demanded money, and fled.  On January 21, 2020, Waldo robbed the same Dollar General, again at gun point.  Following the third robbery, law enforcement executed a search warrant at Waldo’s residence where they found clothing, gloves, and a mask which matched the description of the items Waldo wore during the robbery.  Officers also found a firearm, ammunition, and several stacks of U.S. currency. 

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Federal Bureau of Investigation (FBI) and the Elizabeth City Police Department investigated the case and Assistant U.S. Attorney Robert J. Dodson  prosecuted the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-CR-29-D.

LAS VEGAS, Nev.– The U.S. Attorney’s Office for the District of Nevada joins the Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, and communities nationwide in observing National Crime Victims’ Rights Week. This year’s observance takes place from April 18 to April 24, and features the theme: “Support Victims. Build Trust. Engage Communities.”

“During National Crime Victims’ Rights Week, our office would like to help raise awareness about crime victims’ issues and rights, and introduce our communities to the important resources and services available,” said Acting U.S. Attorney Christopher Chiou. “We stand with victims and survivors of crime — and we’re very grateful for the hard work of dedicated advocates across Nevada, for advancing the cause of victims’ rights and services.”

In 2019, 1.2 million people were victims of violent crime, according to the latest National Crime Victimization Survey from the Bureau of Justice Statistics. The Office for Victims of Crime supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties, and bond forfeitures.

Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.

For more information about this year’s National Crime Victims’ Rights Week and how to support victims of crime, please visit OVC’s website at www.ovc.ojp.gov.

###

Baltimore, Maryland– Njideka Udochi, M.D., a family practice physician who owns Millennium Family Practice in Howard County, has agreed to pay the United States $663,094.76 to resolve allegations that she submitted false claims to the Medicare program for fraudulent neurostimulator billings, arising from the use of an auricular stimulation (“P-Stim”) device. 

The settlement agreement was announced today by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.

“Taping a device with adhesive is clearly not the same as surgical implantation,” said Acting United States Attorney Jonathan Lenzner. “Falsely billing the government for a procedure that reimburses at a high rate for such a simple procedure that is not reimbursed at all diverts valuable government resources and undermines confidence in our healthcare system.  This settlement will restore funds that should not have been reimbursed and should serve as a bold reminder that improper billing will not be tolerated.  I commend our partners at CMS’s Center for Program Integrity and HHS-OIG for identifying and eliminating this kind of waste and abuse in our federal healthcare programs.”

In her practice, Dr. Udochi used a P-Stim device to treat her pain patients.   A P-Stim device provides electrical acupuncture to treat pain symptoms and is applied externally to the patient, generally behind the patient’s ear.  Acupuncture, electrical or otherwise, is not reimbursable by Medicare.    

According to the settlement agreement, from January 2019 to May 2019, Dr. Udochi falsely billed Medicare for the use of the P-Stim device by using the Healthcare Common Procedure Coding System (HCPCS) code for a neurosurgical procedure of an invasive and extensive nature where the device is implanted into the patient. HCPCS codes are used by Medicare to determine the level of reimbursement to providers. Medicare reimburses providers approximately $6,255.61 for an implantable neurostimulator procedure, reflecting the complexity and in-depth nature of surgical implantation of a neurostimulator.  Despite the fact that Medicare does not provide any reimbursement for the use of acupuncture devices, Dr. Udochi’s false billing for P -Stim devices, that were taped behind the ears of her patients and were often removed by her patients at home without assistance from a medical professional, caused Medicare to pay her hundreds of thousands of dollars. 

The claims resolved by this settlement are allegations.  The settlement is not an admission of liability by Dr. Udochi, nor a concession by the United States that its claims are not well founded.

Acting United States Attorney Jonathan Lenzner commended the Office of Inspector General for the Department of Health and Human Services for its work in the investigation.  Mr. Lenzner also thanked Assistant United States Attorneys Matt Haven and Allen Loucks, along with Investigators Steve Capobianco and Ann Thiel, who handled and investigated the case.

# # #

Note: Click to view superseding indictment.

SHERMAN, Texas – A federal grand jury in Sherman, Texas, returned a superseding indictment charging two Texas men with engaging in wage fixing and obstructing a federal investigation, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Neeraj Jindal, the former owner of a Texas-based therapist staffing company, and John Rodgers, a physical therapist and the clinical director of Jindal’s company, are charged with conspiring to fix prices, in violation of the Sherman Act, and with conspiring to obstruct a Federal Trade Commission (FTC) investigation.  Both defendants are also charged with obstruction of an FTC investigation.

According to the four-count superseding indictment, in 2017, Jindal, Rodgers, and their co-conspirators agreed to pay lower rates to certain physical therapists and physical therapist assistants in North Texas.  Their company, in turn, paid the agreed lower rates for several months after entering into the agreement. 

Jindal and Rodgers also conspired to obstruct an FTC investigation and to obstruct proceedings occurring before the FTC.  In furtherance of the conspiracy, Jindal and Rodgers made false and misleading statements and withheld and concealed information during the FTC’s investigation to determine whether their company or other therapist staffing companies violated the Federal Trade Commission Act.

The superseding indictment follows an indictment returned against Jindal in December 2020 for violating the Sherman Act and obstructing an FTC investigation.

“Wage-fixing agreements are, at their core, an attempt to artificially rig the labor market to depress wages and deprive workers of competitive salaries and benefits,” said Acting U.S. Attorney Nicholas J. Ganjei.  “The present charges demonstrate that the Department of Justice and its partner agencies will not stand by and allow the exploitation of American workers and the manipulation of the marketplace.” 

“The charges announced today underscore the Antitrust Division’s ongoing commitment to enforcing antitrust laws, particularly when the victims are American workers who deserve the benefits of competitive wages, mobility, and competition by employers for their services,” said Acting Assistant Attorney General Richard A. Powers of the Department of Justice’s Antitrust Division. “They also demonstrate how seriously we take our obligation to protect the integrity of investigations into anticompetitive conduct, whether those investigations are conducted by the Department of Justice or another agency.”

“Today’s charges should serve as a warning to those who choose to engage in corrupt practices at the expense of hard-working Americans,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. “The FBI is committed to working closely with our law enforcement partners to uncover corruption and bring the individuals responsible to justice.” 

A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million.  The charged conspiracy to commit obstruction and obstruction offenses carry statutory maximum penalties of five years imprisonment and a $250,000 fine.

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

This case is being investigated by the Federal Bureau of Investigation’s International Corruption Unit and prosecuted by the Antitrust Division’s Washington Criminal I and II Sections with the assistance of United States Attorney’s Office for the Eastern District of Texas.

It is important to note that a complaint, arrest, or indictment should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.

###

Every April, the Department of Justice leads communities across the Nation in their annual
observance of National Crime Victims’ Rights Week. This year is the event’s 40th anniversary.
Throughout the week, we renew our commitment to serving all victims of crime, acknowledge
significant achievements in victim services and allied professions, and remember crime victims and
survivors. This year’s theme — Support Victims. Build Trust. Engage Communities. — emphasizes the
importance of leveraging community support to help victims of crime.

The U.S. Attorney’s Office for the Southern District of Illinois prioritizes victim cases,
especially violent crimes, hate crimes, crimes against the elderly, and crimes against children.
Seeking justice for victims involves  extensive  coordination,  not  only  with  our outstanding 
partners  in  law  enforcement,  but  also with community organizations, care providers, social
services, and victim advocates.

“This week we honor all who work tirelessly and compassionately to care for the needs of crime
victims,” said U.S. Attorney Steven D. Weinhoeft. “Their jobs have been especially vital during the
pandemic, as victims have struggled to connect with family, friends, and other support systems. We
also recognize the bravery and sacrifice of all those who serve honorably in law enforcement, who
put themselves at risk every day to prevent others from being victimized. The work they do has
never been more difficult, and we owe them a great debt of gratitude.”

Organizations, programs, and individuals across the nation who have provided outstanding service in
support of crime victims will be honored at the 2021 National Crime Victim’s Service Awards
Ceremony, which will be held virtually on April 23, 2021, from 3:00 to 4:30 p.m. eastern time. To
register for the ceremony, please visit https://go.usa.gov/xssdb. Visitors to the website can also
access the 2021 National Crime Victims’ Rights Week Resource Guide, which provides free event
planning ideas, graphics, videos, and more information for participating organizations.

Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that ROBERT T. COLGAN, 60, of Norwalk, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden to a federal tax offense.

Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding occurred via videoconference.

According to court documents and statements made in court, Colgan controlled a business known as Colgan Financial Group, Inc. (“CFG”), and he employed a bookkeeper to maintain CFG’s books and a return preparer to assist him in the preparation of both CFG’s  corporate tax returns and his personal income tax returns.  Colgan used CFG funds to pay for personal expenditures, but directed his bookkeeper to record the payments as a loan in CFG’s books.  As a result, Colgan’s personal income tax returns for the 2013 through 2017 tax years underreported his income and resulted in a tax loss of more than $250,000.

Colgan pleaded guilty to one count of filing of a false tax return, an offense that carries a maximum term of imprisonment of three years.  He is released pending sentencing, which is not scheduled.

This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Ray Miller.

Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced new charges against NACHMAN HELBRANS, MAYER ROSNER, YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN for conspiring to (1) transport a minor with intent to engage in criminal sexual activity, and (2) travel with intent to engage in illicit sexual conduct, in connection with the kidnapping of a 14-year-old girl (“Minor-1”) from New York to reunite her with her adult “husband” outside the United States for purposes of continuing their sexual relationship.  The defendants, among other members of Lev Tahor, were previously charged with several other crimes related to the kidnapping of Minor-1 and her younger brother.

U.S. Attorney Audrey Strauss stated:  “As alleged, the defendants engaged in a brazen kidnapping of a minor girl in the middle of the night, taking her across the border to Mexico in order to reunite her with her adult ‘husband’ to continue their sexual relationship.  These charges send a clear message that the sexual exploitation of children will not be tolerated.”

FBI Assistant Director William F. Sweeney Jr. stated:  “International borders will not stop the FBI from pursuing justice and enforcing violations of our laws, especially when you target children.  The behavior alleged today is outrageous, and there is no justification for it whatsoever.  We are grateful for the excellent cooperation from our partners in Mexico and Guatemala who helped us hold these leaders of Lev Tahor accountable for their behavior.  Protecting innocent children should be a priority for all of society – it’s certainly one of ours.  If you know of children who are being trafficked, please contact the FBI at 1-800-CALL-FBI or fbi.tips.gov.”

According to the allegations contained in the Superseding Indictment, other court filings, and statements made during court proceedings:[1]

NACHMAN HELBRANS, MAYER ROSNER, YAKOV WEINGARTEN, SHMIEL WEINGARTEN, and YOIL WEINGARTEN are U.S. citizens and senior leaders of Lev Tahor, an extremist Jewish sect previously based in New York and Canada, and currently based in Guatemala.  HELBRANS became the leader of Lev Tahor in or about 2017.  After HELBRANS and his leadership team took over, they seized tight control over the group and embraced several extreme practices, including strict, invasive monitoring of members, frequent beatings, and forced marriages of minors to adult members.  Children in Lev Tahor are often subject to physical, sexual, and emotional abuse.

In or about 2017, HELBRANS arranged for his then-12-year-old niece, Minor-1, to be “married” to a then-18-year-old man, defendant JACOB ROSNER.  They were religiously “married” the following year, when Minor-1 was 13 and JACOB ROSNER was 19, and immediately began a sexual relationship with the goal of procreation.  They were never legally married.  Lev Tahor leadership, including the defendants, required young brides to have sex with their husbands, to tell people outside Lev Tahor that they were not married, to pretend to be older, and to deliver babies inside their homes instead of at a hospital, partially to conceal from the public the mothers’ young ages.

In or about October 2018, the mother of Minor-1 (who is also HELBRANS’s sister) determined that it was no longer safe for her children to remain in the Lev Tahor community in Guatemala.  The mother escaped from the group’s compound and arrived in the United States in early November 2018.  Also in November 2018, a Brooklyn family court granted her temporary custody of the children and prohibited the children’s father, a leader within Lev Tahor, from communicating with the children.

After the mother fled and settled in New York with her children, the defendants devised a plan to return Minor-1, then 14 years old, to Guatemala and to her then-20-year-old “husband” so that they could resume their sexual relationship and procreate.  In December 2018, they executed their plan, kidnapping Minor-1 and her brother in the middle of the night from a home in New York and transporting them through various states and, eventually, to Mexico.  During this time, Lev Tahor leadership was seeking asylum for the entire Lev Tahor community in the Islamic Republic of Iran. 

Following a three-week search involving scores of local, federal, and international law enforcement entities, Minor-1 and her brother were recovered in Mexico and returned to New York.  On two additional occasions, in or about March 2019 and March 2021, members of Lev Tahor again tried to kidnap Minor-1 and her brother.

*                *                *

NACHMAN HELBRANS, 39, of Guatemala, MAYER ROSNER, 44, of Guatemala, YAKOV WEINGARTEN, 30, of Guatemala, SHMIEL WEINGARTEN, 25, of Guatemala, and YOIL WEINGARTEN, 32, of Guatemala, are charged with (1) conspiring to transport a minor with intent to engage in criminal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; and (2) conspiring to travel with intent to engage in illicit sexual conduct, which carries a maximum sentence of 30 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

The Superseding Indictment also includes charges that were previously brought against the defendants and other members of Lev Tahor.  Specifically, it charges NACHMAN HELBRANS, MAYER ROSNER, YAKOV WEINGARTEN, SHMIEL WEINGARTEN, YOIL WEINGARTEN, MORDECHAY MALKA, 26, of Guatemala, ARON ROSNER, 47, of Brooklyn, New York, JACOB ROSNER, 21, of Guatemala, and MATITYAU MOSHE MALKA, 29, of Guatemala, with conspiring to kidnap, unlawfully use a means of identification, and enter by false pretenses the secure area of an airport, and charges three additional counts of international parental kidnapping.

Ms. Strauss praised the outstanding work of the FBI, the New York State Police, the Sullivan County District Attorney’s Office, United States Customs and Border Protection, the Village of Spring Valley Police Department, and our law enforcement partners in Mexico and Guatemala.

This case is being handled by the Office’s White Plains Division.  Assistant United States Attorneys Sam Adelsberg, Jamie Bagliebter, and Jim Ligtenberg are in charge of the prosecution.

The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.            

BILLINGS – Acting U.S. Attorney Leif Johnson will join the Drug Enforcement Administration in support of the 20th National Prescription Drug Take Back Day on Saturday, April 24. The biannual event will be from 10 a.m. to 2 p.m. at sites across Montana. The event is an effort to rid homes of potentially dangerous, expired, unused and unwanted prescription drugs.

In addition to DEA’s National Drug Take Back Day on April 24, prescription drugs can be disposed of any day throughout the year at any of the 11,000 authorized collectors. For more information on collection sites, visit: https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1.

This initiative addresses a vital public safety and public health issue. Medicines that languish in homes are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses from these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.

“The DEA’s Take Back Day is a great reminder to get rid of unneeded and expired prescriptions, not only on April 24, but also on any day of the year. Prescription drugs often end up in the wrong hands, fueling an epidemic of opioid deaths and overdoses. Montanans can help protect their families, friends and community by participating in the DEA Take Back event to safely dispose of unused prescription medications,” Acting U.S. Attorney Johnson said.

“We now face a national epidemic reaching every corner of America.  Prescription medications often end up in the wrong hands, fueling an epidemic that kills more Americans than car accidents,” said DEA Montana Resident Agent in Charge Stacy Zinn-Brittain. “The power to make a difference starts at home, beginning with returning the unused, unwanted or expired medications that each American keeps in their homes.”

Information from the Centers for Disease Control and Prevention indicates that opioid overdose deaths have increased during the coronavirus pandemic. The CDC issued an alert in December indicating a significant increase in overdose deaths from August 2019 through Aug. 1, 2020, including concerning trends during the first months of the COVID-19 pandemic.

In the United States, 85,500 people died of an overdose in just one year, from August 2019 to August 2020. This is the largest number of drug overdoses on record in the country within a one-year period and a 27 percent increase in deaths year over year. While many of these deaths are attributed to synthetic opioids (fentanyl), and while the CDC is seeing a decline in deaths attributed to prescription opioids, there are still an alarming number of overdose deaths involving prescription opioids.

To keep everyone safe, collection sites will follow local COVID-19 guidelines and regulations. Given the ongoing COVID-19 public health emergency, DEA wants to ensure that the public is aware of other ways they can dispose of unwanted prescription drugs without having to leave their homes. More information is available at: https://takebackday.dea.gov/

During the last Take Back Day held on Oct. 24, 2020, DEA collected a record amount of drugs since the program began in 2010. With a total of 4,153 law enforcement participants at 4,587 collection sites, the event brough in a total weight of 985,392 pounds, or 492.7 tons, of drugs. This brings the total weight collected to 13.68 million pounds, or more than 6,842 tons, of prescription drugs collected in the history of the program. Collection results may include materials other than prescription drugs.

During the Oct. 24, 2020 event, Montanans turned in 2,251 pounds of prescription drugs at 20 collection sites.

For more information about the disposal of prescription drugs or about the April 24 Take Back Day event, go to www.DEATakeBack.com.

XXX

Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Cheikh Ahmet Tidiane Cisse, age 45, of Baltimore, Maryland, today to three years and a day in federal prison, followed by three years of supervised release for theft of government property and aggravated identity theft, in connection with a scheme in which Cisse filed fraudulent claims for Social Security benefits using fictitious identities and the identities of actual individuals, and attempted to collected over $236,000.  Judge Russell also ordered Cisse to pay restitution of $83,247 and forfeit $30,000 seized from Cisse’s home and pay a money judgment in the amount of $51,107.

The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Gail S. Ennis, Inspector General for the Social Security Administration.

Cisse was employed by the Social Security Administration (SSA) as a Claims Specialist in SSA’s Office of International Operations.  Cisse admitted that between July 2018 and March 2019, he filed fictitious claims for benefits using stolen identities and identity documents he obtained through the course of his employment with SSA in order to steal or attempt to steal over $236,000 from SSA.

According to his plea agreement, as part of his job, Cisse was responsible for reviewing the identity documents of social security claimants living abroad, such as passports, marriage certificates, and identity cards.  Cisse then created new, fictitious identities in SSA's database, often using information from the foreign identity documents he reviewed, which were issued social security numbers (SSNs).  Cisse used the fictitious identities to file fraudulent claims for social security divorced spouse survivor's benefits against actual deceased individuals, directing the benefits payments to debit cards or bank accounts he opened in the names of the fictitious identities using the identity documents he obtained through his employment.  Cisse sometimes provided his home address for that of the fictitious claimants, but also provided an address in Quebec, Canada, that corresponded to a mail forwarding service to which he subscribed, making it appear as if the fictitious claimants lived abroad.  Through this mail forwarding service, Cisse received mail associated with the scheme, including genuine social security cards in the names of the fictitious identities and benefits payments.

As detailed in the plea agreement, in one instance, when SSA stopped payment on the $10,734 back payment for one of the fraudulent claims due to suspected fraud, Cisse contacted SSA’s payment center and falsely relayed that the purported beneficiary had called inquiring about the whereabouts of the payment, causing the SSA payment center to issue the back payment by direct deposit.  Cisse received a total of approximately $25,916 as a result of this fraudulent claim, which he spent through cash withdrawals and retail purchases.

In total, Cisse submitted at least nine fraudulent claims in stolen and fictitious identities, causing SSA to pay approximately $87,000 in fraudulent claims through direct deposit, issue approximately $46,000 in checks that were never negotiated, and authorize approximately $103,000 in claims that SSA halted before payments were issued.  Cisse personally received and spent $82,047 as a result of the scheme.

Acting United States Attorney Jonathan F. Lenzner commended the SSA Office of Inspector General for their work in the investigation.  Mr. Lenzner thanked Special Assistant U.S. Attorney Michael F. Davio, who is prosecuting the case.

# # #

FARGO – Acting United States Attorney Nick Chase announced Thomas Alexander Starks, age 30 of Lisbon, ND, pleaded guilty before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, for the charge of Destruction of Government Property, 18 USC 1361.

On December 21, 2020, Starks went to the downtown Fargo office of United States Senator John Hoeven and, using an ax, smashed the window and caused substantial damage to the intercom system and doorframe. The monetary damages caused by Starks’ exceeded $1,000.

This case was investigated by the Federal Bureau of Investigations, United States Capital Police, Fargo Police Department and Cass County Sheriff’s Office, and the case is being prosecuted by the United States Attorney’s office, with Assistant United States Attorney Richard Lee assigned to the case.

# # # #

COLUMBUS, Ohio – Acting United States Attorney Vipal J. Patel announced today that Assistant United States Attorney Heather A. Hill will serve as the district’s Senior Litigation Counsel.

“Heather has a distinguished career as a federal prosecutor, both in the Southern District of Ohio and the U.S. Attorney’s Office in D.C.,” Patel said. “She has been a mentor in our Columbus office, and will no doubt continue in that capacity, now for our entire district.”

The Senior Litigation Counsel is a federal prosecutor with at least five years of experience who has been recognized as an outstanding litigator. The SLC is responsible for in-office training of other Assistant United States Attorneys. Hill will also serve as the Criminal Discovery Coordinator.

Hill joined the U.S. Attorney’s Office for the Southern District of Ohio in 2011. In her decade with the Columbus office, she has served as the district’s Project Safe Childhood Coordinator and Human Trafficking Coordinator. She has prosecuted more than 100 cases involving online crimes against children.

Prior to joining the office, Hill did work in the Sex Offense and Domestic Violence Division of the United States Attorney’s Office for the District of Columbia and clerked for the Hon. Robert I. Richter, formerly of the D.C. Superior Court. She attended the George Washington University Law School and received her bachelor’s degree at the University of Missouri.

Hill’s appointment as SLC is pending final administrative approval.

Acting U.S. Attorney Patel commends the office’s prior SLC, Assistant United States Attorney Douglas Squires, for his years of service to the office and the district. AUSA Squires recently began an assignment with the Executive Office of United States Attorneys.

Hill is one of approximately 70 Assistant United States Attorney’s that serves the Southern District of Ohio. The U.S. Attorney’s Office also includes approximately 50 non-attorney personnel and covers the southern 48 counties in the state. The office prosecutes federal crime and represents the United States in civil litigation.

# # #

SANTA ANA, California– A former social worker in Orange County was sentenced today to 96 months in federal prison for distributing computer video files that contained sexually explicit videos depicting children, including infants and toddlers.

          Carlos Castillo, 62, of Santa Ana, was sentenced by United States District Judge Cormac J. Carney, who also ordered Castillo to pay $40,000 in restitution to his victims. Castillo, who was remanded into federal custody today, pleaded guilty on January 11 to a single-count information charging him with distribution of child pornography.

          Castillo worked at Orange County’s Social Services Agency from May 2002 to January 2020. Beginning in August 2007, Castillo was a placement senior social worker whose responsibilities included assessing applicants’ suitability to provide care of children who are in protective custody, completing a home and grounds environment assessment, and placing children into homes.

          In November 2019, Castillo knowingly distributed child pornography consisting of three video files to an undercover law enforcement official. Castillo, using the screen name “Ratster12” as a member of a child pornography group that used the LiveMe application, posted a link to another webpage containing three videos depicting prepubescent children, including infants and toddlers, who were being sexually assaulted by adults and other children.

          Castillo admitted in his plea agreement that in January 2020 he possessed a Dell computer, two flash drives and an Apple iPhone that contained at least 1,027 videos and 914 images of child pornography. Castillo further admitted that he possessed videos of minors undressing that Castillo had recorded from LiveMe. In addition, he admitted to possession of pictures of minors in public without the authorization or knowledge of the minors or their parents.

          “The victims (and their families) must live with the reality that images and

videos of their childhood victimization will live on in the Internet forever,” prosecutors wrote in their sentencing memorandum.

          The FBI investigated this matter.

          Assistant United States Attorney Vibhav Mittal of the Santa Ana Branch Office prosecuted this case.