Month: May 2022

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Security News: Dearborn Doctor Pleads Guilty to Diverting Prescription Pills

Source: United States Department of Justice News

DETROIT – Dearborn physician Tete Oniango, 47, pleaded guilty yesterday to conspiracy to distribute controlled substances, and agreed to forfeit approximately $37,000 in cash seized from his office, announced United States Attorney Dawn N. Ison.

Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division and Special Agent in Charge Mario Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office.

According to court records, Dr. Oniango admitted to prescribing 12,500 dosage units of hydrocodone, a powerful, Schedule II controlled substance without regard to medical necessity.  Oniango issued these prescription drugs outside the course of professional medical practice and without any legitimate medical need for the drugs.  

U.S. Attorney Ison said, “Hydrocodone is extremely addictive and can lead to addiction and eventual heroin use.  Michigan has seen a devastating number of opioid drug overdoses in the last five years. My office remains committed to pursuing medical providers who abuse their roles as caregivers and inflict harm upon our community.”

Special Agent in Charge Tarasca stated, “Physicians who provide prescription drugs without a legitimate medical purpose are contributing to the drug epidemic in our community. The message should be clear, the FBI and our law enforcement partners will continue to focus our efforts on any doctor or healthcare professional who prioritizes profit over patient health and safety.”

“Physicians, and other medical practitioners, who place profits ahead of their patients by prescribing powerful controlled substances outside of medical necessity, unnecessarily risk the safety of those who they are charged to care for,” said Mario M. Pinto, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General (HHS-OIG).  “We will continue to work with our law enforcement partners to hold accountable those who needlessly prescribe controlled substances at the expense of the well-being of others.”

Sentencing is set for August 22, 2022.

This case was prosecuted by Assistant U.S. Attorney Philip A. Ross as part of the district’s efforts to address the nation’s opioid crisis.  The Eastern District of Michigan is one of twelve districts included in the Attorney General’s Opioid Fraud Abuse and Detection initiative.

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Security News: Idaho I.T. Professional Charged With Misappropriating Pre-Publication Investment Recommendations For Insider Trading Scheme

Source: United States Department of Justice News

David Stone Electronically Accessed an Investment Advice Service’s Unannounced Stock Picks and Used That Information to Generate Millions in Trading Profits and to Provide Inside Tips to Another

Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a complaint charging DAVID STONE with securities fraud in connection with an insider trading scheme. STONE was arrested yesterday and will be presented today in the United States District Court for the District of Oregon.

U.S. Attorney Damian Williams said:  “As alleged, David Stone used his computer skills to extract pre-publication stock picks from an investment advice service so he could beat the markets and generate millions in trading profits. Though Stone may have thought that he could hide his scheme behind IP addresses, other losing trades, and donations to his church, he was wrong. This prosecution reflects my office’s commitment to market integrity and a fair playing field for investors.”

FBI Assistant Director Michael J. Driscoll said:  “As we allege here today, Mr. Stone exploited his unauthorized access to market-moving stock recommendations to make trades in advance of their release.  In relaying tips to another individual, he acknowledged his actions might be illegal and even provided advice to the individual on avoiding detection.  As today’s action demonstrates, the FBI and our partners remain committed to protecting the integrity of our financial markets from the unscrupulous actions of those who seek to reap illegal gains from them.”

According to the allegations in the complaint unsealed today in Manhattan federal court:[1]

From 2020 up to his arrest in 2022, DAVID STONE exploited market-moving stock recommendations made by an investment recommendation service (“Advisor-1”) before those recommendations were released to paying subscribers. STONE, an information technology (“I.T.”) professional, accessed Advisor-1’s computing system without authorization and viewed information relating to Advisor-1’s recommendations before they were announced to Advisor-1’s paying subscribers.

Advisor-1’s stock recommendations typically, but not always, lead to higher closing prices for the recommended stock as compared to the prior day’s closing price. By trading on those recommendations before they were announced, STONE was able to obtain significant profits unavailable to other market participants. In fact, since in or about November 2020, brokerage accounts associated with STONE traded ahead of Advisor-1 recommendations on more than a dozen occasions for approximately $3 million in gross gains.

In addition to his own trading, STONE supplied trading tips to at least one other person (“Tipee-1”). Between on or about January 20, 2021 up to and including on or about March 17, 2022, on approximately 45 different days, STONE sent emails to Tipee-1 providing stock names and/or ticker symbols ahead of Advisor-1 announcements of stock recommendations to its paying subscribers. Since in or about January 2021, a brokerage account associated with Tipee-1 traded ahead of Advisor-1 recommendations on more than a dozen occasions. As a result of that trading, Tipee-1 profited more than approximately $2.7 million.

Before providing tips to Tipee-1, STONE provided Tipee-1 with “guidelines” for avoiding detection and for donating some of the trading profits to a church. Specifically, on or about January 16, 2021, STONE sent an email to Tipee-1 that included the following:

I’m ok with sharing the weekly trades with you. I have used it so far to generate a significant amount of money and I’m sure you will be able to as well. There is a small possibility that what we are doing could be considered insider trading. [Advisor-1] uses only public information about to make its recommendations and even the recommendations are behind a paywall so it is a stretch to call it insider trading but it certainly behaves like it because it almost guarantees favorable price moves at a certain time.

So with that in mind these are the guidelines I am following:

. . . .

* Purchase a [Service-1] subscription from [Advisor-1] . . . and open some long term position of some of the recommendation that appeal to you

* Do other trades besides just what I tell you. If all your trades are up 5x and you never make a loosing trade it may call attention of regulators. . . .

* Pay your taxes. These trades are short term capital gains and are taxed at your regular income tax rate. You may get a significant tax bill come April 15 2022.

* Pay your tithe. This extra income has been a subject of regular prayer for me. I anticipate I will not need to keep my regular job for long when we are on the mission field. I have opened a donor advised fund which make it easy to contribute large sums of money or stocks directly and then schedule donations to be made to my church and any other charity I choose. It makes it easier to make anonymous donations as well which I feel is important.

. . . .

With these guidelines in place I can email the recommendations as soon as I know. I feel [a particular email provider] will be a more secure form of communication if it works for you.

*                *                *

STONE, 36, of Nampa, Idaho is charged with one count of securities fraud, which carries a maximum sentence of 25 years in prison.

The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Williams praised the outstanding work of the FBI.  Mr. Williams also thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force.  Assistant United States Attorneys Samuel P. Rothschild and Andrew Thomas are in charge of the prosecution.

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

 

[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.

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GSA Awards New Blanket Purchase Agreements for Electric Vehicle Supply Equipment Procurement

Source: United States General Services Administration

May 3, 2022

WASHINGTON, DC – GSA awarded new Electric Vehicle Supply Equipment (EVSE) Blanket Purchase Agreements (BPAs), which will make it easier for federal customers to buy the EVSE needed as they work to electrify the federal fleet. The agency made awards to 16 successful offerors, nine of which are small businesses.

“This is just one example of our dedication to streamlining the procurement process for federal agencies looking to acquire charging stations,” said Federal Acquisition Service (FAS) Commissioner Sonny Hashmi.

As federal customers electrify their vehicle fleets, these innovative BPAs will allow them to get everything they need at GSA — including over 1,165 EVSE products (which are awarded across more than 30 unique EVSE manufactured brands):

  • Level 1 stations
  • Level 2 stations
  • DC Fast charging stations
  • Solar/off-grid
  • Portable
  • Site planning & EVSE ancillary services to include consulting and project management
  • Power management & metering
  • Network plans & data packages
  • Operation, repair & maintenance plans
  • Other charging types or non-conventional solutions
  • Accessories

To help agencies with installation, GSA’s Public Buildings Service (PBS) will award a supporting Indefinite Delivery/Indefinite Quantity contract for general construction including design/build services in the near future. PBS can authorize its construction contractors to purchase EV equipment directly from the FAS EVSE BPAs. All products and ordering resources will be posted on gsa.gov/evse over the coming weeks.

The Biden-Harris administration is working to transition the entire federal fleet to zero-emission vehicles, with targets of 100% zero-emission vehicle acquisitions by 2035 and 100% zero-emission light-duty vehicle acquisitions by the end of fiscal year 2027. The President’s proposed budget for FY23 includes $300 million for GSA and $457 million for other agencies to help facilitate the Administration’s goal to adopt electric vehicles by building charging infrastructure, purchasing electric vehicles, and consolidating existing conventionally-fueled vehicles into the GSA leased fleet.

For more information about how GSA is advancing the administration’s sustainability priorities.

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About GSA: GSA provides centralized procurement and shared services for the federal government, managing a nationwide real estate portfolio of nearly 370 million rentable square feet, overseeing approximately $75 billion in annual contracts, and delivering technology services that serve millions of people across dozens of federal agencies. GSA’s mission is to deliver the best customer experience and value in real estate, acquisition, and technology services to the government and the American people. For more information, visit GSA.gov and follow us at @USGSA.

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Security News: Detroit Man Sentenced to More Than 19 Years in Federal Prison for Carjacking

Source: United States Department of Justice News

DETROIT – Deloneo Breham, 32, of Detroit, MI, was sentenced in federal court for carjacking and discharge of a firearm during a crime of violence, United States Attorney Dawn N. Ison announced today. Breham was sentenced by United States District Judge Nancy Edmunds to 235 months in federal prison, followed by six years of supervised release. Breham has been in custody since his arrest in February 2021.

Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division.

“Carjackers create an unacceptable risk of physical harm or death and erode the overall sense of safety and security in our community,” stated US Attorney Ison.  “We are committed to bringing the full weight of the justice system to bear on individuals who are making our neighborhoods unsafe and who prey upon our citizens.”

“People who were just living their lives — doing ordinary things each of us has done thousands of times — were terrorized because this defendant wanted a car. No one should have to live in fear of something like that,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Division. “Breham’s sentence should be a warning to anyone who commits a carjacking that the FBI and our law enforcement partners will find you and we will hold you accountable.” 

According to court records, during the early morning hours of February 22, 2021, Breham approached a man pumping gas into his truck at a gas station on Gratiot Avenue in Detroit. Breham—armed with a handgun—told the victim to give him the keys to the truck. When the victim refused, Breham shot him in the leg. While Breham tried to open the driver’s door, the victim—a lawful CPL holder—retrieved his own firearm and shot Breham. Breham fled the scene on foot. Detroit Police responded within seven minutes and found Breham hiding in a bush nearby.

Additional facts presented to the court established that six months before the February 2021 carjacking, Breham carjacked a woman at her home. On August 31, 2020, the victim arrived home with her minor children to find Breham inside her house, armed with a gun. Breham pointed his gun at the victim and demanded the keys to her car. When the woman hesitated, Breham told her “I don’t want to do this in front of your kids.” The victim gave Breham the keys to her car and he left the house. The victim’s car was recovered from the Suez motel on Eight mile the following day.

The case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorneys Barbara Lanning and Diane Princ.

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Security News: Man from the Ring Thunder Community Indicted for Sexual Abuse of a Minor and Aggravated Incest

Source: United States Department of Justice News

United States Attorney Alison J. Ramsdell announced that a Ring Thunder, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor and Aggravated Incest.

Marshall Knife, age 38, was indicted on April 12, 2022.  He appeared before U.S. Magistrate Judge Mark A. Moreno on April 29, 2022, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between January 1, 2019, and November 30, 2021, near Ring Thunder, Knife knowingly engaged in, and attempted to engage in, a sexual act with a minor female.

The charges are merely accusations and Knife is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation.  Assistant U.S. Attorney Abby Roesler is prosecuting the case.   

Knife was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.