CHARLESTON, W.Va. – A Dunbar man was sentenced to six and a half years in federal prison today for a federal gun crime. Corey Allen Tucker, 25, previously pleaded guilty to being a felon in possession of a firearm.

According to court documents and statements made in court, Tucker shot an individual six times in South Charleston on January 7, 2019. Later that day, investigators with the Kanawha County Sheriff’s Department located Tucker in a South Charleston residence and found a 9mm pistol magazine loaded with unfired cartridges in his jacket pocket.  Law enforcement officers searched the residence and found two firearms, including a Taurus Millennium G2 9mm pistol, buried in a cat litter box.  Some of the ammunition loaded in that firearm was the same brand and type of shell casing located at the scene of the shooting. The magazine found in Tucker’s jacket pocket also fit the firearm.  Tucker admitted to law enforcement that he shot the victim.  Tucker was prohibited from possessing firearms by virtue of a 2016 conviction in South Carolina for assault and battery in the first degree. 

Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Kanawha County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

United States District Irene C. Berger imposed the sentence.  Assistant United States Attorney Julie M. White handled the prosecution.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00162.

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PORTLAND, Maine: A Portland man pleaded guilty today in federal court to possessing child pornography, Acting U.S. Attorney Donald E. Clark announced.

According to court records, on April 29 of this year, investigators with the FBI executed search warrants for the residence and person of Andrew Hazelton, 28. Investigators encountered Hazelton just outside the residence and informed him of the warrants. He had a Samsung smartphone in his pants pocket that he provided to investigators and later unlocked. An analysis of the phone revealed a folder containing dozens of video files depicting minors, some of them prepubescent, engaging in sexually explicit conduct.

Hazelton faces a maximum of 20 years in prison, a $250,000 fine and a term of supervised release of at least five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated 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 U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

CHICAGO — A Chicago man was sentenced today to more than a year in federal prison for participating in an illegal gambling business that involved wagers on professional and collegiate sporting events.

NICHOLAS STELLA, 43, pleaded guilty earlier this year to a charge of conspiring to conduct an illegal gambling business.  U.S. District Judge Virginia M. Kendall today sentenced Stella to 15 months in federal prison.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Donald "Trey" Eakins, Acting Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.  The government was represented by Assistant U.S. Attorneys Terry Kinney and Ankur Srivastava.

The FBI’s Integrity in Sport and Gaming Initiative (ISG) is designed to tackle illegal sports gambling and combat threats of influence from criminal enterprises.

Stella stated in a plea agreement that from 2016 to 2019 he conspired with bookmaker VINCENT DELGIUDICE, also known as “Uncle Mick,” and others to accept wagers on the outcome of professional and collegiate sporting events.  Stella admitted in the plea agreement that he recruited gamblers for Delgiudice’s operation and regularly met with them to pay out winnings or collect on losses.  During the conspiracy, Stella communicated with Delgiudice via text messaging and phone calls, the plea agreement states.  In a text exchange in December 2018, Stella stated to Delgiudice, “Between my two big losers in Minnesota, they’ve dumped 73k,” according to the plea agreement.  In another text exchange cited in the plea agreement, Stella asked DelGiudice shortly before the 2019 Super Bowl to contact the gamblers directly in order to “settle up” after the game.

Delgiudice pleaded guilty earlier this year to a money laundering charge and is awaiting sentencing.

Audrey Strauss, the United States Attorney for the Southern District of New York, announced that BRANDON GREEN, a/k/a “Light,” was sentenced today to approximately 24.5 years in prison by U.S. District Judge Paul G. Gardephe in connection with his leadership of the Blood Hound Brims, a violent street and prison gang that operated in New York City and elsewhere, and his participation in narcotics trafficking and firearms offenses.  GREEN was convicted on March 27, 2019, following an approximately five-week jury trial before Judge Gardephe, who also imposed today’s sentence. 

U.S. Attorney Audrey Strauss said:  “Brandon Green, one of the leaders of a ruthlessly violent gang, was responsible for extensive narcotics trafficking throughout the city and state of New York.  Today’s lengthy sentence sends an important message to the Blood Hound Brims and other gang members that they will be arrested, prosecuted and face justice for their crimes.” 

According to court documents, the evidence at trial, and statements made in court proceedings:

The Blood Hound Brims was a criminal enterprise that operated principally in the greater New York area, from at least 2005 up to and including 2016. The BHB was a faction of the Bloods street gang, which operates nationwide, and is under the New York Blood Brim Army (“NYBBA”).  The BHB operated within and around various locations in New York, including New York City, Westchester County, Elmira, and in Pennsylvania, as well as within and outside federal and state penal systems. 

The BHB used a hierarchical structure that was organized, in part, by New York City borough, and that was maintained, in part, through the payment of dues.  The founder and leader of the gang was Latique Johnson, and other members and associates of the BHB referred to Johnson as the “Godfather.” The gang was divided into several “pedigrees,” each of which had its own leadership structure which was approved by Johnson.  Leadership positions within the pedigrees included, among others, treasurers who collected dues from members of a particular pedigree, and individuals who performed security and disciplinary functions for the pedigree. 

Members of the BHB had regular meetings, sometimes called “pow wows” or “9-11s,” at which members were required to pay dues.  Some of the meetings were among members of a particular pedigree, and other meetings were for all members of the Enterprise.  Word of the meetings was disseminated via text message, word-of-mouth, and flyers.  The BHB’s business, including rivalries with other gangs, shootings, the arrest of gang members, guns, and drugs, was regularly discussed at these meetings.  “Kitty dues” – money that paid for commissary funds, lawyers, guns, and drugs, and that served as tribute to Johnson – were collected at these meetings.  The BHB maintained its own rules and constitution that new members were required to learn.  Members of the BHB also used code words and secret phrases to communicate with each other both while in prison and on the street in order to avoid detection by law enforcement.   

One of the BHB’s principal objectives was to sell cocaine base, commonly known as “crack cocaine,” powder cocaine, and heroin, which members and associates of the BHB sold throughout the greater New York area and in Pennsylvania. 

Members and associates of the BHB engaged in multiple acts of violence against rival gangs.  These acts of violence included assaults and attempted murders, which were committed to protect the Gang’s drug territory, to retaliate against members of rival gangs who had encroached on the territory controlled by the BHB, and to otherwise promote the standing and reputation of the Gang vis-à-vis rival gangs.  These acts of violence also included assaults and attempted murders against members and associates of the BHB itself, as part of internal power struggles within the Gang.

GREEN, 38, of the Bronx, New York, was one of BHB’s primary suppliers of cocaine and heroin, providing other Gang members with redistribution quantities of narcotics for resale in New York City and Elmira, New York. GREEN also maintained a supply of firearms, which he sometimes made available to other members of the Gang.  At the time of GREEN’s arrest in May 2017, U.S. Marshals recovered six loaded firearms from the residence where he was living.

                                    *                      *                     *                    

Latique Johnson, a/k/a “La Brim,” 41, of the Bronx, New York, the Gang’s founder, was convicted following a jury trial of of racketeering conspiracy, assault in aid of racketeering, attempted murder in aid of racketeering, narcotics conspiracy, and firearms. Johnson was sentenced in 2019 to 30 years in prison.

Donnell Murray, 41, of the Bronx, New York, a BHB leader was convicted following a jury trial of racketeering conspiracy, assault in aid of racketeering, narcotics conspiracy, and a firearms offense.  Murray was sentenced in 2019 to 20 years in prison.

David Cherry, 40, of the Bronx, New York, a BHB leader, was convicted following a guilty plea to a firearms offense.  Cherry was sentenced in June to 10 years in prison.

Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation, the New York City Police Department, and the Special Agents of the United States Attorney’s Office for the Southern District of New York.

The prosecution is being handled by the Violent and Organized Crime Unit of the U.S. Attorney’s Office for the Southern District of New York.  Assistant U.S. Attorneys Jessica Feinstein, Allison Nichols, and Andrew Chan are in charge of the prosecution.

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.

FAIRVIEW HEIGHTS, Ill. – The U.S. Department of Justice today launched five cross-jurisdictional 
strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions 
across  the  country.  Leveraging  existing  resources,  the  regional  strike  forces  will  
better  ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key 
market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.

Each strike force region will be led by designated United States Attorneys, who will collaborate 
with the  Bureau  of  Alcohol,  Tobacco,  Firearms,  and  Explosives  (ATF)  and  with  state  and  
local  law enforcement partners within their own jurisdiction (where firearms are used in crimes) 
as well as law enforcement partners in areas where illegally trafficked guns originate. These 
officials will use the latest  data,  evidence,  and  intelligence  from  crime  scenes  to  
identify  patterns,  leads, and  potential suspects in violent gun crimes.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are  redoubling  our  efforts  as  ATF  works  with  law  enforcement  to  track  the  movement  of  illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”

According to gun trace data, a significant number of firearms recovered in Chicago originate 
outside the Chicago area. The new strike force will help ensure sustained and focused coordination 
between law  enforcement  and  prosecutors  in  Chicago  and  their  counterparts  in  those  other 
 locations.  The Southern District of Illinois stands ready to assist in these efforts as needed.

The  strike  forces  represent  one  important,  concrete  step  in  implementing  the  
Department’s Comprehensive  Violent  Crime  Reduction  Strategy,  which  was  announced  on  May  
26,  2021.  The comprehensive strategy supports local communities in preventing, investigating, and 
prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with 
federal, state, local  and  tribal  law  enforcement,  as  well  as  the  communities  they  serve, 
 to  address  the  most significant drivers of violence in their districts. In guidance to federal 
agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made 
clear that firearms traffickers
providing weapons to violent offenders are an enforcement priority across the country.

Since April 2021, the Department has taken the following steps to reduce and prevent violent crime,
especially the gun crime that is often at the core of the problem:
•     April 8, 2021 – Attorney General Garland, alongside President Biden, announced four 
concrete steps for addressing gun violence:   ATF would propose a new rule   within 30 days to help 
curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on 
stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish 
model state extreme risk protection order legislation within 60 days; and ATF would begin preparing 
a thorough and detailed new public study of firearms trafficking for the first time in 20 years.

•     In April 2021, the Office of Justice Programs also made clear when existing grant 
funds could be used to support Community Violence Intervention (CVI) programs.

•     On May 7, 2021, meeting the Attorney General’s announced timeline, ATF issued a 
notice of proposed rulemaking to update outdated firearms definitions and to help address the 
proliferation of ghost guns.

•     May 26, 2021, the Attorney General announced the Department’s comprehensive strategy 
to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the 
strengthening of Project Safe Neighborhoods (PSN), and a directive to U.S. Attorneys to work with 
their local partners in addressing the increase in violence that typically occurs over the summer 
(with specific support from DOJ law enforcement agencies)

•     On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of 
proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply 
when stabilizing braces are used to convert pistols into short-barreled rifles.

•     On June 8, meeting the Attorney General’s announced timeline, the Department 
published model state extreme risk protection order legislation.

•     On June 22, 2021, the Attorney General announced that the Department would be 
forming five Firearms Trafficking Strike Forces within 30 days.

On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no 
tolerance” policy  for  federal  firearms  licensers (FFLs)  that willfully commit  violations  
that  endanger  public safety; designating points of contact for state and local government 
officials to report concerns about rogue  FFLs;  formalizing  the  use  of  public  safety  factors 
 for  inspection  prioritization;  sharing inspection information with states that regulate 
firearms dealers themselves; resuming the practice of notifying  revoked  dealers  on  how  to  
dispose  of  their  inventory  and  the  potential  criminal consequences of continuing to engage 
in the business; increasing ATF’s resources for inspections;and publicly posting disaggregated inspection information to ATF’s website.
 

Greenville, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three South Carolinians have been sentenced by a federal judge after pleading guilty to bank fraud charges in schemes that defrauded the federal government’s Troubled Asset Relief Program (TARP).

Marvette Thompson Easterling, 54, of Gaffney; Keylon Wright, 40, of Simpsonville; and Joshua David Armato, 37, of Georgia; admitted that they knowingly defrauded a program established to help homeowners at risk of mortgage loan default and foreclosure of thousands of dollars.

U.S. District Judge Bruce Howe Hendricks ordered each defendant to a sentence of time served followed by five years of supervised release and the repayment of the stolen funds for the felony charges.

“Stealing from the federal government, particularly from programs that help the least fortunate in America, will not be tolerated,” said Acting U.S. Attorney DeHart.  “Our office appreciates the investigative work of the Special Inspector General for TARP (SIGTARP) and will continue to work with SIGTARP to protect American tax dollars.”

“With today’s sentencing, SIGTARP and the United States Attorney’s Office have brought justice for defendants who defraud and steal from the Hardest Hit Fund, a federal program that helps unemployed homeowners stay in their home,” said Special Inspector General Christy Goldsmith Romero.  “Easterling, Wright, and Armato separately lied to get thousands of federal dollars for mortgage assistance, concealing that they did not live in the house and concealing rental income.  Now they are convicted of fraud and must repay the stolen funds.”

Evidence presented in court showed that through false and fraudulent pretenses, representations, and promises, Easterling obtained funds from SC Housing, a federally funded mortgage payment assistance program that provided eligible homeowners with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes.  Easterling concealed and failed to notify SC Housing of monthly rental income she received for the property as well as the non-owner-occupied status of the property in order to receive and use federal funds to which she was not eligible.

Additional evidence presented in court further showed that Wright executed a similar scheme for a property in Mauldin, while Armato executed a similar scheme for a property in Simpsonville.  Wright and Armato concealed and failed to notify SC Housing of the non-owner occupied statuses of their properties and the rental of the properties to unrelated third parties in order to receive and use federal funds to which they were not eligible.

The cases were investigated by Special Inspector General for TARP (SIGTARP), an independent law enforcement agency used to investigate fraud, waste, and abuse related to the TARP bailout.

Assistant United States Attorney Winston Marosek prosecuted the cases.

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WAYCROSS, GA:  A former prison guard has admitted participating in a drug trafficking operation in south Georgia that included smuggling contraband to inmates.

Jessica Azaelae Burnett, a/k/a “The Madam,” 41, of Douglas, Ga., awaits sentencing after pleading guilty in U.S. District Court to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Marijuana, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Burnett’s guilty plea exposes her to a statutory penalty of up to 20 years in prison and substantial financial penalties, followed by a minimum of three years of supervised release after completion of any prison sentence. There is no parole in the federal system. As part of her plea agreement, Burnett also agrees to the forfeiture of five firearms seized during the investigation.

“Compromised corrections officers who breach prison security to provide contraband to inmates represent a significant danger not only to inmates and guards, but also to citizens outside prison walls who are within reach of unmonitored jail communications from smuggled cell phones,” said Acting U.S. Attorney Estes. “Jessica Burnett is rightfully being held accountable for violating her oath and endangering the community.”

Burnett, who was a sergeant and a senior guard with CoreCivic, the private prison company that operates Coffee County Correctional Facility, admitted working with other conspirators in distribution of methamphetamine and marijuana. Her role in the conspiracy included smuggling cell phones, drugs and other contraband into the state prison.

Burnett is one of 48 defendants indicted in Operation Sandy Bottom, the Organized Crime Drug Enforcement Task Force investigation centered in the Sand Ridge neighborhood on the east side of Douglas, Ga., in an area known as “the bottoms.” The 57-count indictment, USA v. McMillan et. al,  was unsealed in January 2021 and alleges that the conspiracy, controlled by a subset of the violent Gangster Disciples street gang, used guns, violence and fear to control methamphetamine trafficking operations throughout the community and to enable contraband distribution inside Georgia prisons.

Altogether, the indictment charged the 48 defendants with a total of 129 felonies. With Burnett, 20 of the defendants await sentencing after pleading guilty; that includes another former prison guard: Idalis Qua Dazia Harrell, 24, of Douglas, a former guard at Coffee County Correctional Facility, who pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Marijuana. The remaining defendants are awaiting trial, and are considered innocent unless and until proven guilty.

The investigation began in 2018 when the Coffee County Sheriff’s Office Drug Unit, responding to complaints about the increasing level of violence and drug activity in the Sand Ridge neighborhood of Douglas, enlisted the assistance of the FBI and the Coastal Georgia Violent Gang Task Force. The indictment alleges that the conspiracy controlled multiple “trap houses” to store and distribute illegal drugs, primarily methamphetamine, and was coordinated by leaders of the Gangster Disciples who distributed drugs throughout Coffee, Bacon, Emanuel, Jeff Davis, Pierce and Wheeler counties, along with other parts of Georgia.

Investigators infiltrated the operation, intercepting multiple kilograms of drugs and nearly two dozen illegally possessed firearms, along with seven vehicles and more than $12,000 in cash identified as drug-trafficking proceeds.

Cell phones were used by some of the conspirators in Operation Sandy Bottom to facilitate drug trafficking throughout south Georgia from inside the state prison system.

“Not only did Burnett jeopardize the safety of staff and inmates at the Coffee County Correctional Facility, her actions fostered criminal activity inside and outside the facility,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “By violating her sworn oath she betrayed every honest, hard-working officer and she will be held accountable.”

“CoreCivic is committed to the safety and security of our employees, those in our care, and the communities we serve. The facility management team at Coffee Correctional Facility fully supported this investigation and appreciate the efforts of all agencies involved in preventing further introduction of contraband into correctional facilities,” said Vance Laughlin, CoreCivic’s Managing Director of Operations. 

Operation Sandy Bottom is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. It is being investigated by the FBI and the FBI Coastal Georgia Safe Streets Violent Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Coffee County Sheriff’s Office and the Coffee County Drug Unit; the Georgia Department of Corrections; the Jeff Davis County Sheriff’s Office; Pierce County Sheriff’s Office; Bacon County Sheriff’s Office; Emanuel County Sheriff’s Office; Lanier County Sheriff’s Office; the Blackshear Police Department; Nicholls Police Department; Douglas Police Department; Alma Police Department; the Glynn County Police Department; the Brunswick Police Department; the Swainsboro Police Department; and the Coffee County Department of Family and Children Services.

The cases is being prosecuted for the United States by Assistant U.S. Attorneys Joseph McCool, Frank Pennington II and E. Greg Gilluly, with asset forfeitures coordinated by Xavier A. Cunningham, Section Chief of the Asset Forfeiture Recovery Unit of the U.S. Attorney’s Office.

Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Shaykh Abdul-Majid, age 34, of Washington, D.C. to 13 years in federal prison, followed by five years of supervised release, for committing a series of armed robberies and for brandishing a firearm in relation to a violent crime. 

The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.

According to his plea agreement, from March 28, 2020 to July 5, 2020 Abdul-Majid committed at least four robberies in which he posed as a customer before pointing a semi-automatic handgun at a victim employee, demanding store proceeds, and obtaining funds.

Specifically, on July 5, 2020, Abdul-Majid posed as a customer at a Kettering, Maryland business and pointed a silver and black handgun at a victim employee while demanding store proceeds.  The victim employee complied with the demands and gave Abdul-Majid $200 in store funds. Abdul-Majid then instructed the victim employee to move to the store’s back storage area. Fearing that he would be shot, the victim employee attempted to remove the handgun from Abdul-Majid’s possession. During the struggle for the handgun, two rounds of ammunition were discharged. Neither round struck the victim employee, but his hands and fingers were badly cut as he tried to prevent the handgun’s slide from racking as casings were ejected. After the struggle, Abdul-Majid fled on foot with the stolen funds.  In each robbery, Abdul-Majid drove the same vehicle with identifying Washington, D.C. registration plates.

As stated in the plea agreement, on July 7, 2020, detectives located Abdul-Majid’s vehicle in Washington, D.C. while Abdul-Majid was inside the vehicle. Upon seeing law enforcement, Abdul-Majid fled from his vehicle on foot. While a K-9 search was being conducted, Abdul-Majid announced his presence to law enforcement as the K-9 was searching the area where he was hiding. Abdul-Majid was then taken into custody.

Law enforcement executed a search warrant on Abdul-Majid’s vehicle and recovered a black-colored ball cap with the word “SLANE” stitched above the bill as well as a red glove. Both items are consistent with the items worn by Abdul-Majid in two of the robberies. Officers also recovered a victim’s wallet, five cell phones, a silver and black handgun, and $43.00 in cash.

In total, the four victim businesses Abdul-Majid robbed experienced a loss of at least $8,550.

Acting United States Attorney Jonathan F. Lenzner praised the FBI and the Prince George’s County Police Department for their work in the investigation.  Mr. Lenzner thanked Assistant U.S. Attorney Kelly O. Hayes who prosecuted the case.

# # #

Audrey Strauss, the United States Attorney for the Southern District of New York, announced that defendant MICHAEL KEGLEY JR. pled guilty today to his role in the distribution of adulterated and misbranded drugs with the intent to defraud and mislead, in connection with the charges filed in United States v. Navarro et al., 20 Cr. 160 (MKV).  KEGLEY pled guilty before U.S. District Judge Mary Kay Vyskocil, and will be sentenced by Judge Vyskocil on November 22, 2021.

Manhattan U.S. Attorney Audrey Strauss said:  “Michael Kegley promoted and sold unregulated performance enhancing substances intended for use by those engaged in fraud and unconscionable animal abuse in the world of professional horseracing. This conviction underscores that our Office and our partners at the FBI are committed to the prosecution and investigation of corruption, fraud, and endangerment at every level of the horse racing industry.”

According to the allegations contained in the Superseding Information, the prior Indictments[1], other filings in this case, and statements during court proceedings:

The charges in the Navarrocase arise from an investigation of widespread schemes by racehorse trainers, veterinarians, performance-enhancing drug (“PED”) distributors, and others to manufacture, distribute, and receive adulterated and misbranded PEDs and to secretly administer those PEDs to racehorses competing at all levels of professional horseracing. By evading PED prohibitions and deceiving regulators and horse racing officials, participants in these schemes sought to improve race performance and obtain prize money from racetracks throughout the United States and other countries, including in New York, New Jersey, Florida, Ohio, Kentucky, and the United Arab Emirates (“UAE”), all to the detriment and risk of the health and well-being of the racehorses.  Trainers who participated in the schemes stood to profit from the success of racehorses under their control by earning a share of their horses’ winnings, and by improving their horses’ racing records, thereby yielding higher trainer fees and increasing the number of racehorses under their control. Veterinarians and drug distributors, such as KEGLEY, who worked as the director of sales for an unregistered distributor of equine drugs, profited from the sale and administration of these medically unnecessary, misbranded, and adulterated substances.

Among the misbranded and adulterated PEDs marketed and sold by KEGLEY was the drug “SGF-1000,” which was compounded and manufactured in unregistered facilities. SGF-1000 was an intravenous drug promoted as, among other things, a vasodilator capable of promoting stamina, endurance, and lower heart rates in horses through the purported action of “growth factors” supposedly derived from sheep placenta. Despite marketing, selling, and administering SGF-1000, KEGLEY acknowledged in intercepted calls that he, along with a co-defendant involved in the sale of SGF-1000, did not know the actual contents of SGF-1000. Nevertheless, KEGLEY’s sales of that drug persisted, aided by the claim that SGF-1000 would be untestable in horses by law enforcement.

*                *                *

U.S. Attorney Strauss praised the outstanding investigative work of the FBI New York Office’s Eurasian Organized Crime Task Force and its support of the FBI’s Integrity in Sports and Gaming Initiative.

This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Sarah Mortazavi, Andrew C. Adams, Anden Chow, and Benet Kearney are in charge of the prosecution.

ALEXANDRIA, Va. – The U.S. Department of Justice has launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region, and Washington, D.C.

Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes), as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”

According to gun trace data, a significant number of firearms recovered in Washington, D.C. originate from outside the city. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the Washington, D.C., metropolitan area, including in the Eastern District of Virginia, with their counterparts in locations where many of the firearms originate.

Acting U.S. Attorney Raj Parekh said: “Disrupting the flow of illegally trafficked firearms is critical to reducing the painful toll that gun violence inflicts on our communities and loved ones. Through our participation in the cross-jurisdictional strike force, EDVA will bring to justice gun traffickers and others who enable this tragic cycle of violence. We will also amplify our community engagement efforts to continue building the degree of trust that is required for positive and lasting change to occur. Because many of the firearm source locations for the Washington, D.C., metropolitan area overlap with the source locations for firearms recovered in the New York City area, we will work closely with our New York City counterparts to help make our communities safer for everyone.”

The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local, and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.

BOSTON – The former Second-in-Command, or Cacique, of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday on racketeering charges.

Angel Roldan, a/k/a “King Big A,” 35, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to seven years in prison and three years of supervised release. In February 2020, Roldan pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.

From at least 2018 through 2019, Roldan served as the Cacique, or second-in-command, of the Latin Kings in Massachusetts. As part of this leadership role, Roldan sought out “paperwork” concerning Latin Kings members who provided information to law enforcement.  Once the informant and status as an informant was confirmed, Roldan organized violence against them, both inside the prison system and on the street. During the investigation, Roldan was also captured on a recording selling a cooperating witness approximately 100 grams of fentanyl and a firearm.

The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.

In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Roldan is the 37^th defendant to be sentenced in the case.

Acting United States Attorney Nathaniel R. Mendel; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuted the case.

The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.

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

CHICAGO — A suburban Chicago accountant has been sentenced to more than eight years in federal prison for misappropriating more than $1.1 million from four employers and three lending institutions.

PAUL ERIC COLLINS, 55, of Naperville, Ill., pleaded guilty last year to wire fraud.  U.S. District Judge Elaine E. Bucklo imposed a 98-month prison sentence Wednesday after a hearing in federal court in Chicago.  Judge Bucklo also ordered Collins to pay $1,159,414 in restitution to the victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.

“Collins stole funds from his employers, even though he knew that they desperately needed those funds to operate their businesses,” Assistant U.S. Attorney Jacqueline Stern argued in the government’s sentencing memorandum.  “Collins stole from the victims for his own wholly selfish ends.”

Collins was an accountant who handled the finances for four employers from 2013 to 2018.  During that time, Collins stole more than $1 million from the companies by writing corporate checks to himself, his wife, and phony companies he created.  Collins also fraudulently withdrew money from ATMs and charged personal expenses on company credit cards.  He attempted to conceal the thefts by making Ponzi-type payments to certain victims.

Collins also stole more than $70,000 from three lenders by obtaining loans based on false representations.  Collins fraudulently used the identity of one of his employer’s owners and falsely represented that the owner personally guaranteed the loans.  When Collins failed to repay the full amount of the loans and the lenders sought repayment, the owner was left having to dispute the fraudulent guarantee.

SACRAMENTO, Calif. — Filemon Padilla Martinez, 56, of Mexico, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 10 years in prison for conspiring to manufacture marijuana and depredation of federal lands, Acting U.S. Attorney Phillip A. Talbert announced.

Judge England also ordered Padilla Martinez to pay $24,778 in restitution.

According to court documents, Padilla Martinez conspired with three co-defendants to grow marijuana in the Tomhead Mountain area in Shasta-Trinity National Forest. Padilla Martinez recruited, trained, and supplied two of these co-defendants, whom he left to live and work on the site while he stayed either at a nearby stash house or at his residence in Ione, California. The marijuana grow on Tomhead Mountain consisted of 1,054 marijuana plants.

This case is the product of an investigation by the U.S. Forest Service, the Tehama County Sheriff’s Department, and the California Department of Fish and Wildlife with assistance from the Amador County Sheriff’s Office and the California Department of Justice. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Oscar Francisco-Diego and Francisco Gomez Sanchez, two of Padilla Martinez’s co-defendants, have been previously sentenced for their role in the conspiracy. Timothy Charles Wilson, the remaining co-defendant, is currently pending trial. The charges against Wilson are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

BOSTON – A former New Bedford man pleaded guilty in federal court in Boston yesterday to federal wire fraud charges arising from claims for Pandemic Unemployment Assistance (PUA) funds.

Arthur Pacheco, 47, previously of New Bedford, Mass., pleaded guilty to two counts of wire fraud. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 18, 2021. Arthur Pacheco was arrested and charged in December 2020 with his wife Tiffany Pacheco, who is scheduled to plead guilty on Aug. 30, 2021.

According to court documents, Tiffany was hired by the Massachusetts Department of Unemployment Assistance (DUA) in April 2020, shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany allegedly misused her position to submit fraudulent PUA claim information on behalf of herself and her husband, Arthur, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.

After Arthur was released from custody, he placed three calls to DUA regarding an appeal of his claim for PUA benefits. Arthur conveyed false information about the timing of his incarceration, including stating during one call that he had only been incarcerated for about one month. In addition, Arthur referenced an employment letter that he could provide to substantiate his unemployment claim. DUA then received a supposed letter from a Massachusetts retailer, indicating that the retailer withdrew a January 2020 job offer due to COVID-19. In fact, the letter was a forgery, and this retailer did not extend any job offer to Arthur in January 2020, at which time he was incarcerated in Texas.

The charges of wire fraud provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.

Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorneys Bill Abely and Dustin Chao of Mendell’s Criminal Division are prosecuting the case.

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

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

CAMDEN, N.J. – A leader of a drug trafficking organization operating in southern New Jersey and Philadelphia, Pennsylvania, was arrested after previously being charged for his role in a drug distribution conspiracy, Acting U.S. Attorney Rachael A. Honig announced today.

Glen Long, aka “Bless,” 27, of Philadelphia, made his initial appearance before U.S. Magistrate Judge Karen M. Williams in Camden federal court later today. Long was charged in March 2021 with one count of conspiring to distribute crystal methamphetamine and heroin. 

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

Using undercover agents, consensual recordings, controlled drug purchases, electronic surveillance, search warrants, and several court-authorized wiretaps, DEA special agents and task force officers conducted a months-long investigation of a drug trafficking organization led by Long. Long oversaw the organization and directed his conspirators to distribute large quantities of various types of drugs to others. 

Thirteen other people have been charged via criminal complaints for their roles in this drug distribution conspiracy. Each defendant, including Long, faces one count of conspiracy that is punishable by a mandatory minimum of 10 years in prison and a maximum of life in prison and a $10 million fine.

Long also faces separate drug charges in an indictment pending in the Eastern District of Pennsylvania for which he was has been ordered detained pending trial. 

Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the charges against Long and his conspirators. She also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.

The charges and allegations contained in the complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:

Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 20 was:

Mark Eugene Benton, 60, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Benton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Benton was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-32.

Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 21 was:

Brocktin Russo, 31, of Great Falls, on charges of possession with intent to distribute heroin. If convicted of the most serious crime, Russo faces a mandatory minimum 10 years to life in prison, a $10 million fine and five years of supervised release. Russo was detained pending further proceedings. The Russell Country Drug Task Force and Great Falls Police Department investigated the case. PACER case reference. 21-41.

The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.

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PHOENIX, Ariz. – On Wednesday, Robert Jim, 59, of Round Rock, Arizona, was sentenced by U.S. District Judge David G. Campbell to life in prison, plus ten years. Jim, a registered sex offender, was previously found guilty by a jury of aggravated sexual abuse of two children.

The sexual abuse took place on the Navajo Nation Indian Reservation, where Jim and the victims are tribal members.    

The Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Tracy Van Buskirk and Kiyoko Patterson, District of Arizona, Phoenix, handled the prosecution.

CASE NUMBER:            CR-18-8225-PCT-DGC
RELEASE NUMBER:    2021-044_Jim

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

Tampa, Florida – U.S. District Judge William Jung has sentenced Christopher Calkins (29, St. Petersburg) to five years in federal prison for possessing firearms and ammunition as a convicted felon. The court also ordered Calkins to forfeit the firearms and ammunition involved in the offense. 

Calkins had pleaded guilty on January 22, 2020.

According to court documents, on October 11, 2018, law enforcement officers executed a narcotics-related search warrant at Calkins’ home, where the officers seized 12 pounds of marijuana, $7,900 in cash, five loaded firearms (including two assault rifles), and 63 rounds of additional ammunition. The firearms were located out in the open and unsecured and Calkins was babysitting a small child at the time. Calkins later confessed to possessing the marijuana, the firearms, and the ammunition. Because Calkins had a prior felony conviction he was and is prohibited from possessing firearms or ammunition.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pinellas County Sheriff’s Office, and the St. Petersburg Police Department. It was prosecuted by Assistant United States Attorney Charlie D. Connally.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

          LOS ANGELES– Interface Rehab (Interface), headquartered and operating in Orange County, has agreed to pay $2 million to resolve allegations that it violated the False Claims Act by causing the submission of claims to Medicare for rehabilitation therapy services that were not reasonable or necessary.

          The settlement resolves allegations that, from January 1, 2006, through October 10, 2014, the Placentia-based Interface knowingly submitted or caused the submission of false claims for medically unreasonable and unnecessary “Ultra High” levels of rehabilitation therapy for Medicare Part A residents at 11 Skilled Nursing Facilities. These facilities include Colonial Care Center, Covina Rehabilitation Center, Crenshaw Nursing Home, Green Acres Lodge, Imperial Care Center, Laurel Convalescent Hospital, Live Oak Rehabilitation Center, Longwood Manor Convalescent Hospital, Monterey Care Center, San Gabriel Convalescent Center, and Whittier Pacific Care Center.

          In July 2020, the Department of Justice announced that Longwood Management Corporation and 27 affiliated skilled nursing facilities agreed to pay $16.7 million to the United States to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare for rehabilitation therapy services that were not reasonable or necessary. The settlement announced today resolves Interface’s role in that alleged conduct.

          During the relevant time period, Medicare reimbursed skilled nursing facilities at a daily rate that reflected the skilled therapy and nursing needs of qualifying patients. The greater the patient’s needs, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities was for “Ultra High” therapy patients, who required a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, or speech therapy), one of which had to be provided five days a week.

          The United States contends that Interface pressured therapists to increase the amount of therapy provided to patients in order to meet pre-planned targets for Medicare revenue. These alleged targets could only be achieved by billing for a high percentage of patients at the “Ultra High” level without regard to patients’ individualized needs.

          “The claims that patients required ultra-high levels of care appear to be driven solely by a desire to send ultra-high bills to Medicare,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “This case is further proof that the government will vigorously pursue those who attempt to cheat the taxpayer-funded system that pays for medical care for millions of Americans, sometimes with the help of whistleblowers who shine a light on fraud.”

          “This settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded health care programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Brian M. Boynton for the Department of Justice’s Civil Division. “Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they provide therapy services based on maximizing revenue rather than the interests of their patients.”

          “Our agency will continue to aggressively investigate health care providers that attempt to boost their profits by falsely billing federal health care programs for medically unnecessary services,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will not tolerate such fraud schemes, which undermine medical decision-making and the public's trust in the health profession.”

          “This multi-million dollar settlement agreement signifies an important conclusion to the government's investigation into Interface Rehab’s dubious business practices that tainted the integrity of federal healthcare programs, including the Department of Defense's TRICARE program, by unnecessarily inflating costs, ” said Paul K. Sternal, Deputy Director of the Defense Criminal Investigative Service (DCIS). “DCIS is committed to working with its law enforcement partners to protect the healthcare interests of our military service members, their families, and American taxpayers.”

          This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Keith Pennetti, a former Director of Rehab at Interface. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Pennetti, will receive $360,000 of the settlement proceeds. The qui tam case is captioned United States ex rel. Pennetti v. Interface Rehab, et al., No. CV-14-4133 (C.D. Cal.).

          The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California with assistance from the U.S. Department of Health and Human Services Office of Inspector General and the Defense Criminal Investigative Service.

          The investigation and resolution of 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 the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

          The matter was investigated by Assistant United States Attorney John E. Lee of the Civil Division’s Civil Fraud Section and Justice Department Trial Attorney Amy Likoff.

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