Fraud News From World

FOR IMMEDIATE RELEASE
Friday, June 16, 2023
Man Convicted of $54M Bribery and Kickback Scheme Involving Fraudulent Prescriptions
A federal jury convicted a Florida man for his role in a $54 million bribery and kickback scheme involving TRICARE, a federal program that provides health insurance benefits to active duty and retired service members and their families.

According to court documents and evidence presented at trial, David Byron Copeland, 55, of Tallahassee, was a part-owner and senior sales manager at Florida Pharmacy Solutions (FPS), a Florida-based pharmacy that specialized in compounded prescription drugs. Copeland, along with his accomplices, engaged in a practice known as “test billing” to develop the most expensive combination of compounded drugs to maximize reimbursement from TRICARE. Copeland and his accomplices targeted physicians who treated TRICARE beneficiaries and paid bribes and kickbacks to physicians and salespeople to encourage the referral of prescrip..

FOR IMMEDIATE RELEASE
Friday, June 16, 2023
Canadian Man Convicted in Multimillion-Dollar Psychic Mass-Mailing Fraud Scheme
A federal jury in the Eastern District of New York convicted a Canadian man today for perpetrating a decades-long mass-mailing fraud scheme that stole more than $175 million from victims in the United States.

According to court documents and evidence presented at trial, Patrice Runner, 57, a Canadian and French citizen, operated a mass-mailing fraud scheme from 1994 through November 2014. As part of the scheme, Runner sent letters to millions of U.S. consumers, many of whom were elderly and vulnerable. The letters falsely purported to be individualized, personal communications from so-called “psychics,” including Maria Duval (leading this type of fraud scheme to be referred to as a “Maria Duval Scam”), and promised that the recipient had the opportunity to achieve great wealth and happiness with the psychic’s assistance, in exchange for payment of a fee. Once..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Readout from Associate Attorney General Vanita Gupta’s Meeting with Mille Lacs Band of Ojibwe
Associate Attorney General Vanita Gupta traveled to Minnesota today and met with Tribal leaders and members of the Mille Lacs Band of Ojibwe. The trip focused on areas – public safety, justice administration, reentry and victims’ services – where the Justice Department provides substantial grant funding to support Tribal self-governance. Associate Attorney General Gupta held government-to-government meetings with the Tribe’s leadership, heard about the Tribe’s work to respond to challenges and reinforced the Justice Department’s commitment to supporting Indian Country. She was joined throughout the trip by Director Tracy Toulou of the Justice Department’s Office of Tribal Justice (OTJ).

The Associate Attorney General’s trip to the Mille Lacs Band is the first in a series of meetings with Tribal governments on Tribal land in the coming months a..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Oregon Man Pleads Guilty to Hate Crime Charges for Bias-Motivated Attacks in Boise
An Oregon man pleaded guilty in the U.S. District Court in Boise, Idaho, today to two federal hate crimes.

According to court records, on Oct. 8, 2022, while at the Boise Public Library Main Branch in downtown Boise, Matthew Alan Lehigh, 31, approached a transgender library employee, called her a slur, punched her and threatened to stab her. A member of the library’s security staff intervened, and Lehigh fled into the parking lot. When the security guard attempted to speak to Lehigh in the parking lot, Lehigh got into a car and suddenly accelerated it toward the guard, intending to collide with him. The guard narrowly escaped being struck by jumping behind a concrete barricade at the last moment, and Lehigh fled the scene.

Four days later, while sitting in his car in a public parking lot elsewhere in Boise, Lehigh saw two women walking together towards ..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Foreign National Sentenced for International Cocaine Trafficking Conspiracy
A Mexican national was sentenced today in the District of Columbia to 13 years in prison for conspiring to distribute cocaine for importation into the United States.

According to court documents, between 1998 and approximately 2012, Jaime Antonio Mandujano-Eudave, 61, worked with the Sinaloa Cartel to coordinate the transportation of cocaine by boat from Colombia to Culiacan, Los Cabos, and elsewhere in Mexico. Mandujano-Eudave communicated GPS coordinates to the boats’ crew members to facilitate meetings in the Pacific Ocean. There, the cocaine-laden boats from Colombia would meet other boats under the control of the Sinaloa Cartel and offload the cocaine. These boats transported multi-kilogram amounts of cocaine. Once the cocaine arrived in Mexico, other members of Sinaloa Cartel would transport the cocaine to the United States for sale. Mandujano-Eudave knew..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Two Jacksonville Compounding Pharmacies and Their Owner Agree to Pay at Least $7.4 Million to Resolve False Claims Act Allegations
The Justice Department announced today that Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations. The settlement amount is based on the defendants’ ability to pay.

“When pharmacies inflate their revenue with medically unsupported prescription ingredients, they compromise the quality of patient care and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity o..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Air National Guardsman Indicted for Unlawful Disclosure of Classified National Defense Information
A member of the U.S. Air National Guard (USANG) stationed in Massachusetts was indicted today by a federal grand jury in Boston for allegedly retaining and transmitting classified national defense information on a social media platform beginning in or around 2022 and continuing until his arrest in April.

Jack Douglas Teixeira, 21, of North Dighton, Massachusetts, was indicted on six counts of willful retention and transmission of classified information relating to the national defense (National Defense Information). Teixeira was arrested on April 13, 2023, and charged by criminal complaint with retention and transmission of national defense information and unauthorized removal and retention of classified documents or materials. On May 19, 2023, U.S. District Court Magistrate Judge David H. Hennessy granted the government’s motion for dete..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Foreign National Sentenced for Trafficking Child Pornography
A Bulgarian national was sentenced today to 25 years in prison for conspiracy to traffic images and videos depicting the sexual exploitation of young children.

According to court documents and evidence presented at trial, Plamen Georgiev Velinov, 49, of Sofia, helped manage and administer the Newstar Enterprise, an internet-based business that profited from the sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Beginning in around 2006 and continuing until 2019, Velinov assisted the enterprise by selecting children to be featured on the Newstar Websites, editing images and videos on those websites, communicating with customers, setting prices for videos, activating new websites, and creating advertising banners. While chatting with a co-conspirator, Velinov described one child as “nucle..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Russian National Arrested and Charged with Conspiring to Commit LockBit Ransomware Attacks Against U.S. and Foreign Businesses
The Justice Department today announced charges against a Russian national for his involvement in deploying numerous LockBit ransomware and other cyberattacks against victim computer systems in the United States, Asia, Europe, and Africa.

Ruslan Magomedovich Astamirov (АСТАМИРОВ, Руслан Магомедовичь), 20, of Chechen Republic, will make his initial appearance later today.

“This LockBit-related arrest, the second in six months, underscores the Justice Department’s unwavering commitment to hold ransomware actors accountable,” said Deputy Attorney General Lisa O. Monaco. “In securing the arrest of a second Russian national affiliated with the LockBit ransomware, the Department has once again demonstrated the long arm of the law. We will continue to use every tool at our disposal to disrupt cybercrime, and while cyb..

FOR IMMEDIATE RELEASE
Thursday, June 15, 2023
Attorney General Merrick B. Garland Statement on Haaland v. Brackeen
The Justice Department issued the following statement from Attorney General Merrick B. Garland following the Supreme Court’s decision in Haaland v. Brackeen:

“The Justice Department is committed to honoring Tribal sovereignty and protecting Indian children and families. For nearly 45 years, the Indian Child Welfare Act has helped protect Tribal children from being unnecessarily separated from their parents, extended family, and Tribal communities.

I am pleased that today’s Supreme Court decision in Haaland v. Brackeen rejected this challenge to the Indian Child Welfare Act. The Justice Department vigorously defended the statute before the Supreme Court and will continue to support the Indian Child Welfare Act and do everything in our power to protect Tribal communities and affirm Tribal sovereignty.”

Topic(s): Indian Country Law and JusticeComponent(s): Office of ..

Remarks as Delivered

Good [afternoon]. In just a few minutes, Deputy Attorney General Lisa Monaco and I will be meeting with all 93 of our U.S. Attorneys, and with the heads of the Department’s law enforcement components, to discuss our summer anti-violent crime strategy.

Among other things, we will be reinforcing the importance of identifying, investigating, and prioritizing the prosecution of those who are responsible for the greatest violence in our communities.

We will discuss the U.S. Marshals’ upcoming launch of the next phase of Operation North Star. The last two phases resulted in the capture of more than 2,300 fugitives wanted for violent crimes across the country. Our Deputy U.S. Marshals will conduct this next phase together with our state and local task force partners to target the most dangerous criminals in communities with the highest levels of violence.

We will also discuss DEA’s plans to launch the third phase of Operation Overdrive. So far, the first two phases o..

Remarks as Prepared for Delivery

Thank you so much, Director Dettelbach.

And, thank you to the women and men of the ATF for hosting us today.

Thank you all for being here and for your commitment to our shared mission of keeping the American people safe.

I also want to acknowledge the dedicated members of the U.S. Attorney community here today—U.S. Attorneys Diggs, Esparza, Hamdani, Restaino, Simonton, and Uballez. Thanks for the work you are leading across this country to combat firearms trafficking.

It’s also great to be here with Deputy Secretary John Tien and the Deputy Homeland Security Advisor, Josh Geltzer.

And I’m grateful to Ambassador Ken Salazar for taking time out from the Chief of Missions conference to be here for this important discussion.

Although we represent different agencies, we share the same commitment to fighting the epidemic of gun violence that has shattered communities across our country.

Disrupting illegal firearms trafficking networks—those that ope..

FOR IMMEDIATE RELEASE
Wednesday, June 14, 2023
U.S. Army Soldier Pleads Guilty to Terrorism Charges for Attempting to Help ISIS Conduct Deadly Ambush on U.S. Troops
U.S. Army Private First-Class Cole Bridges Provided Tactical Guidance in Attempt to Help ISIS Attack and Murder U.S. Service Members in the Middle East
An Ohio man today pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and attempting to murder U.S. military service members based on his efforts to help the Islamic State of Iraq and al-Sham (ISIS) to attack and kill U.S. soldiers in the Middle East.

Cole Bridges, aka Cole Gonzales, 22, of Stow, pleaded guilty before U.S. District Judge Lewis J. Liman. According to court documents, Bridges joined the U.S. Army in approximately September 2019 and was assigned as a cavalry scout in the Third Infantry Division based in Fort Stewart, Georgia. Beginning in at least 2019, Bridges began researching and consuming online prop..

FOR IMMEDIATE RELEASE
Wednesday, June 14, 2023
Montana Man Sentenced for Federal Hate and Firearms Crimes for Shooting Intended to Kill and Rid Town of LGBTQI+ Residents
A Montana man was sentenced by Chief U.S. District Judge Brian M. Morris to 18 years in prison followed by five years of supervised release for shooting into a residence and attempting to shoot others with the intent of ridding a town of LGBTQI+ residents.

John Russell Howald, of Basin, was convicted by a federal jury on Feb. 17 of a hate crime involving an attempt to kill and discharge of a firearm during and in relation to a crime of violence for firing an AK-style rifle at the residence of a woman who was known within the town as lesbian and was home at the time, and then walking further into town intending to target others he perceived to be lesbian, queer, and gay. The trial lasted four days.

“This defendant is being held accountable for his horrific attempted mass shooting against the LGBTQI+ community in a..

Remarks as Prepared for Delivery

Thank you, Heather. I want to extend my appreciation to you, the National Legal Aid and Defender Association, the Black Public Defender Association and Alaina Bloodworth and April Frazier Camara for your hospitality and leadership.

It really is an honor to be here. I am excited to celebrate the public defenders, mitigation specialists, executives, administrators and other professionals in this room, who have dedicated their careers to affirming the dignity and humanity of the people they represent.

This Monday, our nation will collectively commemorate and celebrate Juneteenth. This holiday, which recognizes the end of enslavement for Black Americans, also marks the beginning of a long and continuing struggle for equality, equity and justice.

We cannot celebrate Juneteenth without acknowledging the continued and pervasive injustices that continue to impact Black communities in this country. From Jim Crow, to disenfranchisement, to redlining, to disp..

FOR IMMEDIATE RELEASE
Wednesday, June 14, 2023
FACT SHEET: Update on Justice Department ’s Ongoing Efforts to Tackle Gun Violence
On June 14, 2023, Attorney General Merrick B. Garland and Deputy Attorney General Lisa O. Monaco convened a meeting with the Criminal Division, FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), U.S. Marshals Service, and all 93 U.S. Attorneys to discuss ongoing efforts to reduce violent crime and combat the gun violence that fuels it. These efforts include implementing the landmark Bipartisan Safer Communities Act (BSCA) passed by Congress and signed by the President last June; addressing the proliferation of untraceable and unlawful “ghost guns” that threaten public safety; surging resources to federal, state, local, and Tribal law-enforcement partners on the front lines; and adopting other common-sense reforms that keep guns out of the wrong hands.  

Focusing U.S. Attorney Resources on Gun Crimes: ..

FOR IMMEDIATE RELEASE
Tuesday, June 13, 2023
Construction Firm CFO Pleads Guilty to Employment Tax Crime
Defendant Failed to Pay More Than $6 Million in Payroll Taxes
The Chief Financial Officer (CFO) of a Mississippi company pleaded guilty today to willfully failing to report and pay over employment taxes withheld from employees’ paychecks.

According to court documents and statements made in court, Julian Russ of Houma, Louisiana, was the CFO of Community Construction Company LLC, a pipeline-maintenance and construction company based in Hazelhurst, Mississippi. From at least 2012 through October 2018, Russ did not file required quarterly employment tax returns or pay over the taxes withheld from employees’ wages to the IRS, despite knowing of his obligation to do so. In total, Russ caused a tax loss to the IRS of more than $6 million.

Russ faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federa..

FOR IMMEDIATE RELEASE
Tuesday, June 13, 2023
Oregon Man Pleads Guilty to Conspiring to Provide Material Support to ISIS
An Oregon man pleaded guilty in federal court today for conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS) by producing and distributing propaganda and recruiting materials online in coordination with ISIS members overseas.

Hawazen Sameer Mothafar, 33, an Iraqi national residing in Troutdale, Oregon, pleaded guilty to one count of conspiracy to provide material support to a designated foreign terrorist organization.

According to court documents, Mothafar immigrated to the U.S. from Iraq in 2014 and, since his arrival, has resided in Troutdale. An ISIS supporter since 2014, Mothafar was the co-founder of the Sunni Shield Foundation, a pro-ISIS media organization that created and published violent propaganda promoting ISIS ideology and objectives. In this role, Mothafar created the Sunni Shield’s first media product, a video of ..

FOR IMMEDIATE RELEASE
Tuesday, June 13, 2023
Property Management Company to Pay Nearly $75,000 to Resolve Servicemembers Civil Relief Act Claims
The Justice Department today announced that FPI Management Inc. (FPI) has agreed to pay $74,087 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing unlawful charges on nine servicemembers who were exercising their right to terminate their apartment leases after receiving military orders to relocate.

“The right for servicemembers to terminate leases without penalty when military orders send them elsewhere is a critical protection for people who already sacrifice so much,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce federal civil rights laws to ensure that paying rent for housing they no longer need is not another sacrifice servicemembers must bear.”

“The SCRA protects servicemembers who have ans..

Thank you for the kind introduction. I appreciate the opportunity to share some thoughts with all of you today on the Antitrust Division’s global approach to criminal enforcement.

One of our values at the Antitrust Division, and the department as a whole, is to be clear with the public about our enforcement priorities, policies and the standards we apply in making charging decisions. And when we have issues and topics appropriate for reasoned discussion, we want to hear from a diverse set of views. For this reason, my colleagues and I appreciate the opportunity to participate in today’s conversations and describe the outstanding work by division prosecutors day in and day out to seek economic justice on behalf of our country.

Economic liberty is something cherished around the world. Looking at the enforcers, private practitioners, competition law experts, in-house counsel and former colleagues assembled in this room, there is at least one thing we share: We all want dynamic, vibrant ..