Month: September 2022

Source: United States Department of Justice News

            WASHINGTON—Louis “Joey” Mitchell III, a former employee of the District of Columbia Fire and Emergency Medical Services Department (FEMS), was sentenced today to 34 months in prison for accepting more than $60,000 in payments from a District of Columbia contractor in exchange for directing purchase agreements and orders to the contractor and then falsely certifying that goods that FEMS had paid for had been delivered.

            The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division, and Daniel W. Lucas, Inspector General for the District of Columbia.

            Mitchell, 50, of Capitol Heights, Maryland, pleaded guilty to bribery in May 2022, in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Amit P. Mehta. Following his prison term, Mitchell will be placed on three years of supervised release. He also must pay a $61,250 forfeiture money judgment and $257,680 in restitution.

            Mitchell was a warehouse supply technician at FEMS. In that role, he was responsible for verifying deliveries of goods to the warehouse before the agency would issue payments to the relevant vendors.  According to the plea documents, beginning in at least 2016 and continuing through in or about 2020, Mitchell and a FEMS contract administrator engaged in a bribery scheme with a contractor whose company was an approved vendor for supplies.

            According to the documents, Mitchell and the contract administrator solicited and received bribes from the contractor on at least seven occasions in exchange for directing purchase orders to the contractor’s company and confirming delivery of and payment for goods that the company did not deliver.  In addition, Mitchell, the contractor, and the contract administrator made fraudulent charges on FEMS credit cards, payable to the contractor’s company, and then split the proceeds.

            As a result of the bribery scheme, FEMS paid the company approximately $250,000 for goods that never were delivered. Mitchell personally received at least $61,250 in bribes from the contractor.

            The FEMS contract administrator, Charity Keys, pleaded guilty in July 2022 to bribery and is to be sentenced on Dec. 2, 2022. In her guilty plea, Keys, 44, of Bowie, Maryland, admitted to a federal bribery charge receiving at least $42,500 in bribes.

            Law enforcement opened an investigation into the conduct after FEMS officials discovered procurement anomalies and referred the matter to the District of Columbia Office of the Inspector General and the FBI for investigation. Mitchell and Keys were arrested on Feb. 10, 2022.

            This case is being investigated by FBI’s Washington Field Office and D.C. Office of Inspector General.  The case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia. 

Source: United States Department of Justice News

          LOS ANGELES – A South Bay man has been sentenced to 60 months in prison for cyberstalking multiple young women in a “sextortion” campaign he waged while he was an active-duty member of the United States Marine Corps, the Justice Department announced today.

          Johao Miguel Chavarri, 26, a.k.a. “Michael Frito,” of Torrance, was sentenced late Thursday afternoon by United States District Judge Maame Ewusi-Mensah Frimpong, who also ordered him to pay a $15,000 fine.

          Chavarri pleaded guilty on May 27 to three counts of cyberstalking.

          From May 2019 to February 2021, Chavarri stalked and sent anonymous threatening communications to numerous victims, including the three victims discussed in court documents.

          Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims either refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts.

          In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers — people he often specifically identified by name. Chavarri threatened his victims and their friends and family that he would ruin their lives. He knew many of his victims personally.

          “Perhaps most troubling is the emotional distress that [Chavarri] intentionally inflicted on his victims,” prosecutors argued in a sentencing memorandum. “He terrified and terrorized them. The young women feared not only for their privacy and their relationships with their friends, family, employers, and community, but also for their physical safety. They suffered, and continue to suffer, significant emotional harm.”

          The FBI investigated with this case with assistance from the Naval Criminal Investigative Service.

          Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crimes Section and Senior Trial Attorney Mona Sedky of the Justice Department’s Computer Crime and Intellectual Property Section prosecuted the case.

Source: United States Department of Justice News

ALEXANDRIA, Va. – An Alexandria man who was intoxicated and had used drugs, and then drove his truck more than 50 miles per hour over the speed limit before crashing into a tree and killing his front seat passenger was sentenced today to 30 months in prison for manslaughter.

According to court documents, on May 31, 2020, at approximately 5:45 p.m., Samuel Meyer, 22, was driving his Toyota Tacoma truck southbound on the George Washington Memorial Parkway, which is a federal land. Near Mt. Vernon Circle, as the road curves, Meyer lost control of his truck, left the roadway, and crashed into the woods next to the travel lanes. The truck crashed with such force that the skin of the passenger side of the vehicle was peeled off entirely, and the front passenger door of the vehicle was embedded into a tree a short distance from where the truck came to a stop. Meyer’s front seat passenger, Michael Cunningham, 19, who was wearing his seatbelt, was transported by ambulance to the hospital. Hospital personnel could not resuscitate him, and he died from blunt trauma injuries to his head, neck, trunk, and extremities.

Meyer and a backseat passenger were also transported to the hospital with minor injuries. About three and a half hours after the crash, blood samples were taken from Meyer. An analysis showed that Meyer’s blood alcohol content was .09 g/100 mL, still above the legal limit hours after the crash. Also present in Meyer’s blood were benzoylecgonine, the main metabolite of cocaine; THC, the psychoactive compound in marijuana; and cocaethylene, which is formed by the liver when cocaine and alcohol coexist in the blood.

Meyer’s vehicle’s electronic data recorder revealed that he was driving 85.1 miles per hour at the time of impact. The speed limit at the location of the accident is 35 miles per hour. There was no sign that Meyer had applied his brakes and the accelerator was pressed for the last five seconds prior to impact. The roadway was clear and dry, and Meyer’s truck was working properly with no defects or malfunctions. Just before the accident, Cunningham and the other passenger had each implored Meyer to slow down.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Pamela A. Smith, Chief of U.S. Park Police, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.

Assistant U.S. Attorneys Patricia Haynes and Marc J. Birnbaum prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-281.

Source: United States Department of Justice Criminal Division

The Department of Justice announced guilty pleas by seven defendants in three separate cases in schemes to defraud the Department of Veterans Affairs (VA) Post-9/11 GI Bill education benefits program, including the largest known Post-9/11 GI Bill fraud case ever brought by the department.

“The Post-9/11 GI Bill was enacted to aid our military veterans and their families on behalf of a nation grateful for their service,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Criminal Division. “These frauds drain funds from a vital veterans’ program and undermine public faith in the administration of government. These cases demonstrate the Criminal Division’s clear commitment to protecting the integrity of federal programs and to holding offenders who would abuse and exploit these programs accountable.” 

The Post-9/11 GI Bill is a VA benefit program that pays tuition, housing, and other costs for eligible veterans seeking post-secondary education and training. Employees of VA-approved education institutions, known as School Certifying Officials (SCOs), are responsible for ensuring the participating educational institution maintains and supplies the VA with true and accurate enrollment, attendance, and course completion records for enrolled veterans; promptly notifies the VA of changes to veteran enrollment status; and maintains compliance with the “85-15 rule,” which stipulates educational institutions (1) charge the same tuition rate to veteran and non-veteran students, and (2) ensure that no more than 85% of the students enrolled in an approved course are funded by the VA. The VA relies on representations made by SCOs in authorizing tuition payments to VA-approved schools and housing and other payments to eligible veterans.

Today’s enforcement action involves SCOs for three VA-approved education institutions who submitted fraudulent claims to the VA in order to obtain millions of dollars in payments in Post-9/11 GI Bill benefits.

“The scope of the fraud uncovered in these investigations is stunning, particularly when you consider the schemes siphoned funds intended for providing legitimate education assistance to former service members,” said U.S. Attorney David H. Estes for the Southern District of Georgia. “We applaud the work of the VA Office of Inspector General in identifying and halting this fraud.”

“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority,” said Inspector General Michael J. Missal of the Department of Veterans Affairs. “These guilty pleas are a testament of our commitment to working with our law enforcement partners to hold accountable those who would defraud VA’s benefits programs.”

The following charges were announced today as part of this national enforcement action:

United States v. Michael Bostock and Eric Bostock (District of Columbia)

Michael Bostock, 54, of Nampa, Idaho, and Eric Bostock, 47, of Riverside, California, each pleaded guilty to one count of conspiracy to commit wire fraud in the U.S. District Court for the District of Columbia. According to court documents, Michael Bostock was the founder and CEO of California Technical Academy (CTA), a VA-approved, for-profit school that offered technical training programs at three locations in Los Angeles and San Diego. Eric Bostock was CTA’s Director of Student Services. Both were SCOs.

According to court documents, from January 2012 to June 2022, the Bostocks and their co-conspirators made false representations to the VA regarding veterans’ enrollment in CTA’s approved courses of study, class attendance, and grades, and CTA’s compliance with the 85-15 rule. They also falsified course completion records to make it appear as if enrolled veterans completed their programs, when in fact they had not. In order to conceal their scheme, the Bostocks and their co-conspirators falsified veterans’ contact information to ensure that regulators could not contact the veterans by substituting phone numbers they and their co-conspirators controlled. When regulators called the falsified phone numbers to obtain information about CTA, the Bostocks and their co-conspirators would impersonate students.

Between January 2012 and June 2022, when CTA’s VA approval was withdrawn, CTA received more than $32 million in tuition payments for approximately 1,793 enrolled veterans. During the same period, veterans enrolled in CTA’s VA-approved courses received over $72 million in housing and other education-related benefits. In total, Michael and Eric Bostock’s scheme to defraud the VA resulted in a total loss of approximately $104,682,860. This is the largest known incident of Post-9/11 GI Bill benefits fraud prosecuted by the department to date.

Michael and Eric Bostock will be sentenced at a later date and each faces a maximum penalty of five years in prison.

Trial Attorneys Michael P. McCarthy and Lauren Archer of the Justice Department’s Fraud Section are prosecuting the case.

United States v. Robert Lanoue, Judith Lanoue, Kenneth Meers, and David Anderegg (Southern District of Georgia)

Robert Lanoue, 63, and Judith Lanoue, 59, both of Savannah, Georgia, each pleaded guilty to one count of submitting false claims to the VA. According to court documents, the Lanoues were the owners of Scooba Shack, a VA-approved scuba academy located in Bryan County, Georgia, that offered eight courses to eligible veterans. As SCOs, the Lanoues made false representations to the VA regarding Scooba Shack’s compliance with the 85-15 rule, the true hours of instruction for each VA-approved course, attendance and course completion dates, and payments received from non-VA students. To evade compliance with the 85-15 rule, the Lanoues took part in setting up a fake scholarship fund, ostensibly to pay for non-VA funded students who enrolled in Scooba Shack’s VA-approved courses. In fact, the scholarship did not pay out any funds, and instead non-VA funded students were allowed to attend classes for free or at discounted rates in violation of the 85-15 rule. Scooba Shack obtained over $3.2 million as a result of materially false claims submitted to the VA.

David Anderegg, 42, of Richmond Hill, Georgia, also pleaded guilty to submitting false claims to the VA for his role as a Scooba Shack SCO.

Kenneth Meers, 54, of Altamonte, Georgia, pleaded guilty to conspiracy to commit wire fraud for his role in orchestrating the scheme to defraud the VA at Scooba Shack and Diver’s Den, another VA-approved scuba school in Camden County, Georgia, which is described in further detail below.

United States v. Theresa Whitlock and Kenneth Meers (Southern District of Georgia)

Theresa Whitlock, 55, of St. Mary’s, Georgia, pleaded guilty to making false statements to the VA. According to court documents, Whitlock was an owner of Diver’s Den, a VA-approved scuba academy located in Camden County, Georgia. As an SCO, Whitlock made false statements to the VA regarding Diver’s Den’s compliance with the 85-15 rule, true hours of instruction, dates of attendance and completion for certain students, and payments received from non-VA students. Diver’s Den obtained more than $1.1 million as a result of materially false claims submitted by Whitlock and Meers.

Judith Lanoue was sentenced to six months in prison on Sept. 15.

Robert Lanoue is scheduled to be sentenced on Oct. 18 and faces a maximum of five years in prison.

The remaining defendants will be sentenced at a later date. David Anderegg, and Theresa Whitlock each faces a maximum penalty of five years in prison. Kenneth Meers faces a maximum penalty of 20 years in prison.

Trial Attorney Michael P. McCarthy of the Justice Department’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Georgia are prosecuting the Scooba Shack and Diver’s Den cases.

For those awaiting sentencing, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. All cases were investigated by the VA-OIG with assistance from the Veterans Benefits Administration-Education Service.

Source: United States Department of Justice Criminal Division

A California man was sentenced yesterday to five years in prison for cyberstalking multiple young women in California in a “sextortion” campaign he waged while he was an active-duty member of the U.S. Marine Corps.    

According to court documents, from May 2019 to February 2021, Johao Miguel Chavarri, aka Michael Frito, 26, of Torrance, stalked and sent anonymous threatening communications to numerous victims.

Chavarri, often using the name “Frito,” contacted victims on social media platforms, including Instagram, Snapchat, and Twitter, complimented their appearance and/or their publicly posted photos, and suggested a relationship in which he would pay the victim to send him photos or videos. Some of the victims initially agreed to Chavarri’s requests and sent him nude, sexually explicit, or compromising photos. When victims refused Chavarri’s initial request for photos, refused to send him additional photos or videos, or otherwise refused to continue to communicate with him online, Chavarri began to harass, threaten, and extort the victims using numerous online accounts. In most cases, he threatened to publish sexual photos and videos of the victims online or on well-known pornography websites and/or to distribute the sexual photos or videos to the victims’ boyfriends, friends, families, or employers, who he would often specifically identify by name.

Chavarri was ordered to pay a $15,000 fine and serve three years of supervised release.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie S. Christensen for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Supervisory Special Agent Adam Smith of the FBI Los Angeles Field Office made the announcement.

The FBI Los Angeles Field Office, Long Beach Resident Agency, investigated the case, with assistance from the Naval Criminal Investigative Service.   

Assistant U.S. Attorney Lauren Restrepo for the Central District of California and Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.