Month: March 2022

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Security News in Brief: La Crosse Man Sentenced to 7 Years for Trafficking Cocaine

Source: United States Department of Justice News

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Antjuano Green, 40, La Crosse, Wisconsin was sentenced on Friday, March 25, by Chief U.S. District Judge James D. Peterson to 7 years in federal prison for distributing cocaine base.  This prison term will be followed by 5 years of supervised release.  Green pleaded guilty to this charge on November 19, 2021.

On March 17, 2021, La Crosse Police Department officers purchased 41.9 grams of crack cocaine from Green through a confidential informant in La Crosse.  On March 24, 2021, officers purchased 12.9 grams of crack cocaine from Green, again through a confidential informant. 

The next day, officers arrested Green for the prior drug deliveries.  Officers searched Green’s car and found baggies containing a total of 16.9 grams of crack cocaine and 3.4 grams of powder cocaine, as well as $4,440 in cash.  When interviewed by officers, Green admitted to selling cocaine for profit.

At the time of these events, Green was on state supervision for crack cocaine trafficking.  His supervision was revoked and he is currently serving a sentence of 3 ½  years.  Judge Peterson ordered this federal sentence to run concurrently with the remainder of the state prison sentence.

At sentencing, Judge Peterson noted that drug trafficking degrades the health and safety of a community.  Judge Peterson highlighted Green’s lengthy criminal history involving drug dealing and his persistent recidivism.

The charge against Green was the result of an investigation conducted by the Campbell, La Crosse, and Onalaska Police Departments.  The La Crosse County District Attorney’s Office also provided assistance in the case.  Assistant U.S. Attorney Steven P. Anderson prosecuted this case. 

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President’s FY23 Budget Sends $15M to San Francisco Federal Building

Source: United States General Services Administration

March 28, 2022

Repair and alteration project relocates HUD from leased offices to federal space

SAN FRANCISCO – The Biden-Harris Administration today submitted to Congress the President’s Budget for fiscal year 2023, detailing his vision to build a better America, reduce the deficit, reduce costs for families, and grow the economy from the bottom up and middle out.

The Budget makes critical investments in the American people that will help lay a stronger foundation for shared growth and prosperity for generations to come.

“These are common-sense investments in our nation’s physical and digital infrastructure that will improve governmentwide digital services and cyber defenses; strengthen American leadership on clean energy; and make critical upgrades to our public buildings,” said Administrator Robin Carnahan. “The President’s budget reaffirms the Biden-Harris Administration’s commitment to improving digital service delivery and ensuring a sustainable and cost-effective federal real estate footprint for our federal customers.”

In California, the President’s FY 2023 budget request for GSA includes funding for a:

  • $15.6 million repair and alteration project for Housing and Urban Development (HUD) at the San Francisco Federal Building (SFFB). Pending funding, the project will relocate HUD’s regional office, currently housed in leased space, to the SFFB located at 90 7th Street.

“This proposed project supports HUD’s long-term mission requirements by significantly reducing annual leasing costs,” said GSA Acting Regional Administrator Dan Brown. “By moving HUD’s regional offices to federally owned space, taxpayer dollars are saved by providing more efficient space and reinvesting in the federal government’s owned real estate instead of external rent. The project also is a climate-sensitive investment in this Leadership in Energy and Environmental Design (LEED) Platinum federal building.”

For more information on the President’s FY 2023 Budget, please visit: https://www.whitehouse.gov/omb/budget/ and for the GSA Budget request, please visit: www.gsa.gov/cj.

About GSA: GSA provides centralized procurement for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet and overseeing approximately $75 billion in annual contracts. GSA’s mission is to deliver value and savings in real estate, acquisition, technology, and other mission-support services across government, in support of the Biden-Harris Administration’s priorities. For more information, visit GSA.gov and follow us at @USGSA.

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Security News in Brief: Florida Business Executives Charged In Illegal Kickback Scheme

Source: United States Department of Justice News

Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Thomas Mollick (79, Odessa) and Martin Krytus (55, Windemere) with conspiracy to solicit and receive, and a substantive count of soliciting and receiving, illegal remunerations (kickbacks and bribes). If convicted on all counts, Mollick and Krytus each face a maximum penalty of 15 years in federal prison. The indictment also notifies Mollick and Krytus that the United States intends to forfeit any assets, which are alleged to be traceable to proceeds of the offense.

According to the indictment, Mollick co-founded and served as President of RX Development (“RXD”), and as President and Director of Mollick Enterprises, Inc. (“MEI”). Between January 2012 and March 2017, Mollick, who was responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, selected the company’s wholesale drug supplier, Business #1, and solicited and caused the supplier to make kickback payments to MEI. Krytus co-founded and served as Vice President of RXD, and as President, Secretary, Treasurer, and Director of Eastwood & Assoc., Inc. (“EW”). Krytus, who was also responsible for overseeing the creation and operation of RXD’s in-office drug dispensing program, received a portion of kickback payments made by Business #1 to MEI.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the U.S. Department of Labor – Office of Inspector General, the U.S. Postal Service – Office of Inspector General, and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorneys Greg Pizzo and Rachelle DesVaux Bedke.

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Security News in Brief: Former Yale Med School Employee Pleads Guilty, Admits Stealing and Selling $40 Million in Electronics

Source: United States Department of Justice News

Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that JAMIE PETRONE, 42, of Lithia Springs, Georgia, formerly of Naugatuck, Connecticut, pleaded guilty today in Hartford federal court to fraud and tax offenses related to her theft of $40 million in computer and electronic hardware from the Yale University School of Medicine where she was employed.

According to court documents and statements made in court, beginning in approximately 2008, Petrone was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, and most recently served as the Director of Finance and Administration for the Department of Emergency Medicine.  As part of her job responsibilities, Petrone had authority to make and authorize certain purchases for departmental needs as long as the purchase amount was below $10,000.  Beginning at least as early as 2013, Petrone engaged in a scheme whereby she ordered, or caused others working for her to order, millions of dollars of electronic hardware from Yale vendors using Yale Med funds and arranged to ship the stolen hardware to an out-of-state business in exchange for money.

As part of the scheme, Petrone falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval.  The out-of-state business, which resold the electronic equipment to customers, paid Petrone by wiring funds into an account of a company in which she is a principal, Maziv Entertainment LLC.

In total, Petrone caused a loss of approximately $40,504,200 to Yale.  Petrone used the proceeds of the sales of the stolen equipment for various personal expenses, including expensive cars, real estate and travel.

Petrone also failed to pay taxes on the money she received from selling the stolen equipment.  She filed false federal tax returns for the 2013 through 2016 tax years, in which she falsely claimed as business expenses the costs of the stolen equipment, and failed to file any federal tax returns for the 2017 through 2020 tax years.  This caused a loss of $6,416,618 to the U.S. Treasury.

Petrone pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years.  She is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on June 29, 2022.

Petrone has agreed to forfeit $560,421.14 that was seized from the Maziv Entertainment LLC bank account, a 2014 Mercedes-Benz G550, a 2017 Land Rover/Range Rover Sv Autobiography, a 2015 Cadillac Escalade Premium, a 2020 Mercedes Benz Model E450A, a 2016 Cadillac Escalade (4 Door Sport), and a 2018 Dodge Charger.  She also has agreed to liquidate three Connecticut properties that she owns or co-owns to help satisfy her restitution obligation.  A property she owns in Georgia is also subject to seizure and liquidation.

Petrone was arrested by criminal complaint on September 3, 2021.  She is released on a $1 million bond pending sentencing.

This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Yale Police Department.  The case is being prosecuted by Assistant U.S. Attorney David E. Novick.

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Security News in Brief: Department of Justice Fiscal Year 2023 Funding Request

Source: United States Department of Justice News

President’s Budget Proposal to Keep America Safe, Protect Civil Rights, Promote Economic Competition, and Strengthen Justice Systems

Today, the President submitted to Congress his Budget for Fiscal Year 2023 (FY23), which requests a total of $37.65 billion in discretionary resources for the Department of Justice, an increase of $2.63 billion over the Fiscal Year 2022 enacted level.

“The President’s Budget would enable the Justice Department to carry out our mission of upholding the rule of law, keeping our country safe, and protecting civil rights,” said Attorney General Merrick B. Garland. “We will put these resources to work to keep our country safe from threats both foreign and domestic – from terrorism and gun violence to cybercrime and corporate crime. At the same time, we will step up our efforts to protect civil rights by combating hate crimes, safeguarding fair elections, and strengthening trust and accountability in law enforcement. This Budget would also allow us to reinvigorate antitrust enforcement and ensure the just administration of our nation’s immigration courts and correctional systems. We look forward to working with Congress to secure this Budget’s timely passage.”

Key resource requests for the Department of Justice include:

  • A total of more than $20 billion to expand the capacity of the Department’s law enforcement components and U.S. Attorneys’ Offices to keep our country safe from a wide range of complex and evolving threats. Key investments to keep our country safe include:
    • $10.80 billion for the FBI and $2.77 billion for the U.S. Attorneys’ Offices to carry out their complex mission sets, including by keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction.
    • $2.52 billion for the Drug Enforcement Administration (DEA) to continue the fight against dangerous drug trafficking gangs and cartels and to prevent the flow of deadly drugs into our communities.
    • $1.81 billion for the U.S. Marshals Service (USMS) to assist local law enforcement in apprehending violent fugitives from our neighborhoods and to protect our nation’s judges and courts.
    • $1.73 billion for the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to expand multijurisdictional gun trafficking strike forces with additional personnel, enhance the National Integrated Ballistic Information Network, and modernize the National Tracing Center to further build ATF’s capacity to fulfill trace requests from local, state, federal, and international law enforcement agencies.
    • Funding to expand the Justice Department’s efforts to protect children from crime and exploitation; fight elder fraud, abuse, and neglect; combat human trafficking; and promote safety and justice in Indian Country.
  • Significant investments in grants for state and local law enforcement partners nationwide dedicated to funding the police, preventing crime, and accelerating criminal justice system reform, including:
    • A total of $6.24 billion in discretionary and mandatory resources in FY23 for the Office of Justice Programs to support critical longstanding Justice Department grant programs – including Byrne Justice Assistant Grants, Project Safe Neighborhoods, and programs that serve victims of crime – as well as new programs that will provide state, local, and Tribal governments with additional resources to prevent crime, reduce gun violence, and accelerate criminal justice system reform.
    • A total of $2.83 billion in discretionary and mandatory resources in FY23 for the Community Oriented Policing Service (COPS Office) to support the hiring of police and sworn law enforcement personnel nationwide and the implementation of community-based strategies to combat violent crime.
    • $1 billion for the Office on Violence Against Women to support longstanding Violence Against Women Act (VAWA) programs, including programs that provide critical resources to all states and territories to fund police, prosecutors, courts and victim services as well as resources to provide legal assistance for victims, transitional housing, and homicide and domestic violence reduction initiatives.
    • The President is proposing a total of $30 billion in new mandatory resources to support law enforcement, crime prevention, community violence intervention, and justice system reform. More details will be provided on this mandatory funding in the coming weeks.
  • Critical investments to support the Justice Department’s mission of protecting civil rights, including:
    • Robust support for the Justice Department’s core civil rights components: $215.2 million for the Civil Rights Division to expand its efforts to deter and prosecute hate crimes; safeguard fair elections; and combat discrimination; $25 million for the Community Relations Service to provide mediation and conciliation services to communities impacted by conflict; an additional $17.8 million for the FBI and an additional $8.2 million for the U.S. Attorneys to bolster their civil rights work; and $10 million for the Office for Access to Justice.
    • $106.3 million in new funding to strengthen trust and accountability in law enforcement by expanding, formalizing, and managing Body Worn Camera programs for the FBI, DEA, USMS, and ATF.
    • $7.9 million in new funding for the Environment and Natural Resources Division’s efforts to advance environmental justice and combat the climate crisis.
  • Critical investments in the Antitrust Division, the Consumer Protection Branch, the FBI, U.S. Attorneys’ Offices, and the Criminal Division to promote economic competition; prevent the theft of intellectual property; deter and prosecute corporate crime; protect the government against fraud; and combat corruption. Among other investments, the President’s budget would provide a total of $273 million for the Antitrust Division to reinvigorate antitrust enforcement and protect consumers.
  • Resources to ensure the just administration of our nation’s immigration courts and correctional system, including:
    • $1.35 billion for the Executive Office for Immigration Review (EOIR) to reduce the backlog of immigration cases, including by supporting 100 new immigration judges, expanding EOIR’s virtual court initiative, and investing new resources in legal access programming.
    • $8.18 billion for the Federal Bureau of Prisons (BOP) to ensure the health, safety, and wellbeing of incarcerated individuals and correctional staff; fully implement the First Step Act and ease carriers to successful reentry; and ensure transparency, accountability, and effective oversight of all federal prisons and detention centers.