Month: April 2022

Source: United States Department of Justice Criminal Division

A superseding indictment was unsealed today in the Southern District of Iowa charging the former Chief Financial Officer (CFO) of publicly traded reinsurance company, IRB Brasil Resseguros SA, aka IRB Brasil RE (IRB), for fraudulently propping up its stock price by spreading false information that U.S. investment firm Berkshire Hathaway Inc. had invested in IRB.

According to court documents, Fernando Passos, 39, of Brazil, allegedly executed the fraud scheme beginning in February 2020, after an investment company published a report questioning the accuracy of IRB’s financial statements and announcing that the investment company had taken a short position against IRB’s stock. IRB’s stock price dropped in the wake of the report. In response, Passos allegedly developed and executed a scheme to mislead shareholders and the investing public by disseminating and causing to be disseminated materially false information that Berkshire Hathaway had invested in IRB, despite knowing the U.S. investment firm had not made such an investment. Passos discussed his plans to spread this materially false information with IRB investor relations employees. In one text message described in the indictment, Passos stated, “I will spread this story that berk [i.e., Berkshire Hathaway] bought 28MM of shares,” and added, “then it becomes true.”  

As part of the fraud scheme, the superseding indictment alleges, Passos falsified documents and information to support his claims that Berkshire Hathaway was an IRB shareholder and caused this information to be provided to members of the press, several of IRB’s directors, and IRB investors. News outlets in both Brazil and the United States began incorrectly reporting that Berkshire Hathaway had invested in IRB. Following the news coverage, on the evening of March 3, 2020, Berkshire Hathaway issued a press release stating that it was not currently, had never been, and had no intention of becoming a shareholder in IRB. On March 4, 2020, after Berkshire Hathaway’s press release, IRB’s stock price dropped, causing significant shareholder losses.  

IRB, which is based in Brazil, trades on Brazil’s B3 exchange and has shareholders around the world, including in the United States.

Passos is charged with one count of securities fraud and three counts of wire fraud. If convicted, he faces up to 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. He remains at large.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.

The U.S. Postal Inspection Service is investigating the case.

Trial Attorney Kate McCarthy of the Criminal Division’s Fraud Section is prosecuting the case. 

The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing Victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the Passos indictment, please visit https://www.justice.gov/criminal-vns/case/Passos.

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

Source: United States Department of Justice News

Hattiesburg, Miss. – A Columbia, Mississippi woman was sentenced to 57 months in prison for defrauding health care insurance providers. 

Joy Beth Harden, 51, pled guilty on August 10, 2021, to executing a scheme to defraud Medicare and other health care benefit programs.  Specifically, Harden submitted fraudulent bills for durable medical equipment on behalf of her business, BZB LLC doing business as Duracare Home Medical Equipment in the Hattiesburg area.  As a result, Medicare and other benefits programs paid Harden for durable medical equipment that was never prescribed for patients and for medical equipment that was never delivered to the patients.

United States District Judge Taylor B. McNeel sentenced Harden on April 15, 2022, to serve a term of 57 months in federal prison, followed by a term of 3 years of supervised release.  Harden was also ordered to pay full restitution to all of the health care insurers she defrauded.

The announcement was made by United States Attorney Darren J. LaMarca, Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi, Special Agent in Charge Tamala Miles of the U.S. Department of Health & Human Services, Office of Inspector General (HHS OIG) Atlanta Regional Office, Special Agent in Charge Cynthia A. Bruce of the DoD OIG, Defense Criminal Investigative Service (DCIS) Southeast Field Office, and Inspector General Martin J. Dickman of the U.S. Railroad Retirement Board, Office of Inspector General (RRB OIG).

“Submitting claims for unsubstantiated services threaten the integrity of the Medicare program and increases the financial burden on taxpayers,” stated Tamala Miles, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our partners, HHS-OIG will continue to safeguard the integrity of federal health care programs by investigating individuals who seek to exploit them.”

“Health care fraud threatens the most vulnerable of our citizens by endangering the programs which provide care for them,” stated Jermicha Fomby, Special Agent in Charge of the FBI in Mississippi. “It is imperative we proactively root out such acts as this fraud which erode the fabric of our healthcare system upon which our citizens depend.  I want to commend the investigators and prosecutors who worked together on this case. We look forward to continued partnerships such as this among the law enforcement community in Mississippi.”

“There are no victimless crimes.  Stealing money from the Defense Health Agency (DHA) and Medicare is stealing money from all taxpayers,” stated Special Agent in Charge Cyndy Bruce, Office of the Inspector General (DoD-OIG), Defense Criminal Investigative Service (DCIS), Southeast Field Office.  “DCIS and our investigative partners will continue to come after those who seek to illegally enrich themselves and hold them accountable for their actions.” 

“The U.S. Railroad Retirement Board, Office of Inspector General (RRB-OIG) is committed to fighting Medicare fraud, waste, and abuse and is proud to be part of this collaborative effort with the FBI, HHS-OIG, and DoD-OIG,” said Inspector General Martin J. Dickman. “The sentencing of Joy Beth Harden sends a loud and clear message that combating Medicare fraud is a top federal law enforcement priority and unscrupulous Medicare providers will not be tolerated.”

This case was investigated by the HHS-OIG, FBI, DCIS, and RRB-OIG. The case was prosecuted by Deputy Criminal Chief Dave Fulcher.

Source: United States Department of Justice News

After serving over 43 years as a prosecutor in South Dakota, United States Attorney Dennis R. Holmes announced today that he intends to retire.  Holmes, a Custer, South Dakota native, began his career as a prosecutor in 1978 as a clinical law intern in the Pennington County States Attorney’s Office while still in Law School at the University of South Dakota.  The following spring Holmes was offered a position by then newly elected South Dakota Attorney General Mark Meierhenry to serve as an Assistant Attorney General in the litigation division.  He spent nine years in the Attorney General’s office handling a broad variety of criminal cases ranging from homicides to drug conspiracies.  He also represented the State of South Dakota in civil litigation, including jurisdictional challenges on Indian country issues.  While in the Attorney General’s Office Holmes held the positions of head of the litigation division, Deputy Attorney General, and Chief Deputy Attorney General.  Holmes said, “I was very fortunate to begin my legal career under the tutelage of Mark Meierhenry.  Mark was a great lawyer and a mentor to so many South Dakota attorneys.”

In 1988 Holmes joined the United States Attorney’s Office in Pierre where he handled primarily Indian country criminal cases and drug prosecutions.  In 1995 Holmes moved to the Sioux Falls U.S. Attorney’s office to become the lead Drug Task Force prosecutor for the District of South Dakota.  During his 34 years as a federal prosecutor Holmes prosecuted a wide array of federal criminal cases, including large scale drug conspiracies, violent crimes, tax fraud, federal program fraud, and environmental crimes.  He received several awards for his work in the U.S. Attorney’s office, including the Director’s Award for Superior Performance by an Assistant U.S. Attorney, Outstanding Performance Award from the Environment Natural Resources Division of the Department of Justice, the Bronze Medal Award from the Environmental Protection Agency, West Central Region Organized Crime Drug Taskforce Award for Outstanding Achievement, National Department of Justice Organized Crime Drug Taskforce Award for Outstanding Achievement, and Midwest High Intensity Drug Trafficking Area Prosecutor of the year Award.  Holmes has served three times as Acting U.S. Attorney for the District of South Dakota.  Holmes also held the position of First Assistant U.S. Attorney for four different U.S. Attorneys.  He has been the Criminal Chief for the office for over 19 years. 

Holmes said, “It has been an honor to work with so many dedicated law enforcement officials from state, local, tribal, and federal law enforcement agencies who toil every day to keep our communities safe.  In my career I also have had the privilege of serving alongside many talented and devoted attorneys.  I have always admired their professionalism and their dedication to public service.”

Holmes began serving as Acting U.S. Attorney under the Vacancies Reform Act on February 26, 2021, following the resignation of U.S. Attorney Ron Parsons.  On December 23, 2021, Attorney General Merrick Garland appointed Holmes U.S. Attorney for the District of South Dakota for 120 days under the provisions of 28 U.S.C. § 546.  The U.S. District Court will appoint an interim U.S. Attorney on April 22, 2022.  Holmes has agreed to remain with the office for a period of time to assist with the transition.

Source: United States Department of Justice News

Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Dylan Milton Jarvis (30, Orange Park) with unlawful possession of an unregistered National Firearms Act firearm (weapon made from a shotgun). If convicted, Jarvis faces a maximum penalty of 10 years in federal prison. Jarvis had been indicted on April 7, 2022. He was arrested on April 14, 2022. The indictment also notifies Jarvis that the United States intends to forfeit the weapon made from a shotgun.

According to the facts presented in court and the indictment, at approximately 5:30 pm on January 11, 2022, the Clay County Sheriff’s Office (CCSO) responded to calls of shots fired near Blanding Boulevard, a heavily traveled road in Orange Park. Upon making contact with Jarvis in a parking lot, the CCSO determined that Jarvis had fired three to four rounds into the ground from a 12-gauge shotgun and then discarded the firearm. The CCSO located the shotgun in the immediate vicinity of the parking lot along with multiple spent shotgun shells. Further investigation by the CCSO and the Bureau of Alcohol, Tobacco, Firearms and Explosives determined that Jarvis previously sawed off the barrel and the stock of the 12-gauge shotgun. A record check confirmed that this weapon made from a shotgun was not registered to Jarvis in the National Firearms Registration and Transfer Record, as required under federal law. 

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 Clay County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives – Jacksonville Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.

This case was 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.

Source: United States Department of Justice News

Every April, the Department of Justice and the U.S. Attorney’s Office for the Middle District of join survivors, advocates, and communities nationwide in observing Sexual Assault Awareness and Prevention Month. Sexual violence is far too prevalent, and it is important to not only to raise awareness of the myriad forms of sexual violence, but to engage in meaningful prevention efforts, take action to hold offenders accountable, and care for survivors in a trauma-informed manner. U.S. Attorney Ronald C. Gathe, Jr. joins the Department of Justice and the Office on Violence Against Women (OVW) in applauding the recent passage of the Violence Against Women Reauthorization Act of 2022 (VAWA 2022), which treats sexual assault as the serious violation it is and creates new programs and initiatives that provide survivors of sexual violence with increased access to services and justice. One such program is the Violence Against Women Tribal Special Assistant U.S. Attorney (SAUSA) program, which cross-designates tribal prosecutors as SAUSAs to support tribes and U.S. Attorneys’ Offices in investigating and prosecuting cases involving sexual assault, domestic and dating violence, stalking, and certain sex trafficking offenses. VAWA 2022 also expands outreach to survivors in underserved communities, including by improving access to sexual assault medical forensic examinations for survivors in rural areas, providing community-specific services for LGBT survivors, and restoring tribes’ jurisdiction to prosecute non-Indian perpetrators of sexual violence and sex trafficking, among certain other offenses committed on tribal lands.

“During Sexual Assault Awareness and Prevention Month, and every month, OVW-funded programs across the nation provide essential services to survivors of sexual assault, responding to their needs, helping them heal, and supporting them as they pursue the justice they seek,” said OVW Principal Deputy Director Allison Randall. “The impact of sexual violence is felt by the entire community and can devastate survivors’ lives, which is why it is critical that VAWA 2022 strengthens not just services and justice interventions but also prevention.” 

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

If you or someone you know is experiencing or has experienced sexual violence, you are not alone and there are many services available to help, including the Sexual Assault Hotline, 1-800-656-HOPE (4673), and the StrongHearts Native Helpline, 1-844-7NATIVE (762-8483). In addition, you can find a local resources page on OVW’s website, which lists state sexual assault coalitions that can direct you to local resources and services, as well as opportunities to get involved.