Month: September 2022

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Security News: Florissant Bank Manager Accused of Defrauding Elderly Customers

Source: United States Department of Justice News

ST. LOUIS – A bank branch manager from Florissant, Missouri appeared in court Thursday to answer charges accusing her of stealing $175,000 from elderly customers.

Andrea Nicole Hopkins, 28, was indicted September 7 on four felony counts of bank fraud. She pleaded not guilty Thursday.

Hopkins’ indictment alleges that from Feb. 20, 2020 to May 25, 2021, while manager of the Commerce Bank branch on Natural Bridge Avenue in St. Louis, she devised a scheme to divert money from numerous customer accounts for her own use. 

Hopkins targeted elderly customers, including two 80-year-olds, one 95-year-old and one 82-year-old, the indictment says. She logged into customer accounts and transferred funds out, the indictment says, sometimes obtaining cashier’s checks or prepaid cards. She changed the address on some account statements, forged customer signatures and transferred funds among customers to try and hide the thefts, the indictment says.

In all, Hopkins fraudulently diverted $328,273 from customer accounts, but $152,431 of that she transferred internally among customers to hide her theft, the indictment says.

Each bank fraud count is punishable by up to 30 years in prison and a fine of $1 million.

Charges set forth in an indictment are merely accusations and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.   

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Security News: New Haven Man Admits Stealing More Than $160K from Retired Woman’s Bank Account

Source: United States Department of Justice News

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GREGORY IVY, 23, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of bank fraud.

According to court documents and statements made in court, in 2018, Ivy began working for a retired woman (“the victim”), doing odd jobs for her.  In October 2018, Ivy began to steal checks from the victim’s checkbook while in her home.  He then wrote checks payable to himself, forged the victim’s signature on the checks, and deposited the checks into his personal credit union account.  Ivy also gave stolen blank checks on which he had forged the victim’s signature to another individual, who then cashed or deposited the checks.  That individual then recruited other individuals, including Lamont Bethea, to cash or deposit stolen checks on which Ivy had forged the victim’s signature.

Bethea used the information on the stolen checks, including the bank routing number and the victim’s bank account number, to arrange electronic funds transfers (EFTs) from the victim’s bank account to make payments for himself, his family members, and other friends or acquaintances.  Bethea used these EFTs to pay credit cards bills, rent, car insurance, student loans, cell phone bills, and other payments for himself and others. Bethea also provided the victim’s routing and bank account numbers to other individuals so they could arrange similar EFTs for themselves and others from the victim’s account.

Ivy, Bethea and other participants attempted to obtain a total of $624,818.28 from the victim’s bank account.  Because the victim’s bank account became overdrawn, some attempted check deposits or EFTs were reversed, resulting in a loss to the victim of $479,569.08.  Ivy personally stole $162,942 from the victim during his involvement in the scheme, which lasted until May 2021.

Judge Dooley scheduled sentencing for December 21, at which time Ivy faces a maximum term of imprisonment of 30 years. 

Ivy was arrested on a federal criminal complaint on November 8, 2021.  He is released on a $50,000 bond pending sentencing.

Bethea and his family members and friends stole more than $131,000 from the victim.  On September 1, 2022, Bethea pleaded guilty to fraud offenses stemming from this scheme and a separate, unrelated scheme.  He awaits sentencing.

This ongoing investigation is being conducted by the Federal Bureau of Investigation with the assistance of Bank of America.  The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.

The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud.  The Hotline is staffed by experienced case managers who can provide personalized support to callers.  Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed.  When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller.  The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311).  For more information, please visit. https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.

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GSA Administrator Highlights Progress on Low-Carbon Construction Material Procurement in Ohio

Source: United States General Services Administration

September 15, 2022

Inflation Reduction Act Will Further Bolster the Biden-Harris Administration’s Buy Clean Initiative

TOLEDO, OH – Today, U.S. General Services Administration (GSA) Administrator Robin Carnahan joined White House officials and U.S. Secretary of Transportation Pete Buttigieg in Ohio to highlight the Biden-Harris Administration’s Buy Clean Initiative. Administrator Carnahan discussed how GSA is working to catalyze markets for low-carbon construction materials and highlighted the successful use of clean construction materials at GSA’s Bipartisan Infrastructure Law-funded projects.

In March, GSA issued new standards for the concrete and asphalt used in nationwide GSA construction, modernization, and paving projects – the first standards in the U.S. to apply beyond a local jurisdiction. To date, GSA has completed seven Bipartisan Infrastructure Law-funded (BIL) paving projects using the new asphalt standards, all of which were awarded to and completed by small or disadvantaged businesses.

The historic passage of the Inflation Reduction Act provides a boost to these efforts with $3.375 billion that will allow GSA to invest in federal buildings with lower-carbon materials and sustainable technologies, and leverage emerging clean technologies that help achieve greater carbon reductions and catalyze American innovation. These investments help boost the competitiveness of American manufacturers developing sustainable materials and technologies.

“Using domestic, lower-carbon construction materials is a triple win – creating good-paying American jobs, reducing energy costs, and tackling climate change to ensure a healthy planet for the next generation,” said GSA Administrator Carnahan. “At GSA, we’ve already started deploying standards that help reduce emissions and advance sustainable projects across the country with little to no additional cost – while supporting small businesses along the way.”

GSA’s concrete and asphalt standards require construction contractors to provide a product-specific cradle-to-gate Type III environmental product declaration (EPD). An EPD is a third-party-verified summary of the primary environmental impacts associated with a product’s extraction, transportation, and manufacture. GSA’s asphalt standard requires at least two environmentally-preferable techniques or practices to be used during the material’s manufacture or installation. These options include bio-based or alternative binders, recycled content, and reduced mix temperatures — in other words, best practices that reduce fossil fuel use and environmental impacts.

Under GSA’s low embodied carbon concrete standard, contractors are asked to provide concrete that reflects a 20% reduction in the amount of GHG emissions, or “embodied carbon,” associated with its production. GSA’s first projects to use concrete since the standard’s March 2022 issuance anticipate compliance, including a BIL-funded land port of entry near Yuma, Arizona.

GSA will also issue a request for information next week to hear directly from manufacturers — including small businesses — on the availability of construction material and products with lower embodied carbon. Findings from that RFI will help the government understand industry trends and opportunities.

The investments enabled by the Inflation Reduction Act will reduce carbon emissions from the federal supply chain by millions of metric tons per year, save millions of dollars in energy costs, and support the achievement of GSA’s sustainability goals.

GSA’s Climate Action and Sustainability page provides more information on our leadership in tackling the climate crisis and investing in a more sustainable future.

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: Justice Department and Albuquerque Police Department Provide Policing Reform Progress Report

Source: United States Department of Justice Criminal Division

New Agreement Allows Albuquerque to Self-Assess Compliance with Portions of the Consent Decree

The Justice Department and the City of Albuquerque (City) today agreed that because the City has sustained compliance with significant provisions of the consent decree for the last two years, covering the Albuquerque Police Department (APD), the City now will self-assess compliance with those provisions. The announcement was made by filing a joint notice of the parties’ agreement with the U.S. District Court for the District of New Mexico, which oversees the City’s implementation of the consent decree.

The City will analyze and publicly report on its compliance every six months, pursuant to a self-assessment plan also filed with the court. This transition to self-assessment is a significant accomplishment, and represents significant progress toward compliance and termination of the consent decree. 

“The Albuquerque Police Department has made real progress toward compliance with this Consent Decree,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The progress that we have seen in the City of Albuquerque has yielded reform and is moving the city in the right direction when it comes to constitutional policing. We look forward to working with officials to achieve full compliance with the consent decree. The residents of Albuquerque deserve nothing less.”

“Today, we come before the court to recognize important and sustained advances made by the Albuquerque Police Department toward the goal of constitutional, effective policing,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Successful self-assessment is the cornerstone of true reform, and the Albuquerque community should expect no less. I want to commend the hard work put in by the men and women of APD, as well as the persistence of community stakeholders, that went into this accomplishment. Together, we will realize the goals set out by this community, through mutual agreement, seven years ago.”

As detailed in today’s joint notice, the City has achieved sustained substantial compliance with and will self-assess the portions of the consent decree covering:

  • The Multi-Agency Task Force that investigates shootings by APD officers;
  • Specialized units (except tactical units);
  • Training on behavioral health and field training;
  • Filing of complaints by the public;
  • Officer support programs;
  • Recruitment, hiring, performance evaluations, and promotions; and more.

For example, APD has achieved full compliance with the consent decree’s requirement that it “develop a comprehensive recruitment and hiring program that successfully attracts and hires qualified individuals.” In its most recent report, the independent monitor found that APD has “set new standards in police recruiting,” and increased interest in joining APD at a time when police recruiting has become more difficult nationwide. In addition, APD has also developed and maintained a robust and effective public information program to facilitate misconduct reporting and ensure that civilian complaints are accepted and investigated.

The parties’ agreement reflects the strides APD has made in important areas of reform, while also recognizing that APD has put in place the necessary staff and systems to accurately and credibly assess its own continued compliance with these portions of the consent decree. This agreement will allow APD to focus even more on critical areas where it has made substantial improvements, as recognized by the independent monitor in its most recent report. These areas include force investigations, for which the monitoring team found that APD had improved both timeliness and quality, and discipline, where the monitoring team noted that APD continues to make “marked improvements.”

The Justice Department initiated an investigation of APD in November 2012 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the District of New Mexico. The Justice Department announced the findings of the investigation in April 2014. The consent decree was approved by the U.S. District Court for the District of New Mexico in June 2015.

The findings report and the settlement agreement, as well as additional information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters (justice.gov). Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department (justice.gov).

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Security News: Jefferson City Man Indicted in $27.1 Million Dollar Bank Fraud Scheme

Source: United States Department of Justice News

JEFFERSON CITY, Mo. – A Jefferson City man has been indicted by a federal grand jury for a more than $27.1 million fraud scheme that included more than $12.4 million in PPP loans for four businesses, as well as a fraudulent loan for a development in Indiana.

Tod Ray Keilholz, 59, was charged in a 52-count indictment returned under seal by a federal grand jury in Jefferson City on Wednesday, Sept. 14. That indictment was unsealed and made public today after Keilholz was arrested without incident at his home.

Keilholz remains in federal custody pending a detention hearing on Sept. 20, 2022. The court granted the government’s motion for a detention hearing, which cited evidence that Keilholz posed serious risks of flight and obstruction of justice, as well as a threat to the safety of other persons and the community.

The federal indictment charges Keilholz with eight counts of bank fraud, six counts of making false statements to a financial institution, and four counts of making false statements to the Small Business Administration. These charges are related to four fraudulent Paycheck Protection Program loans and a multi-million-dollar fraud scheme related to a development in Valparaiso, Indiana.

The indictment also charges Keilholz with 24 counts of money laundering related to financial transactions  of funds derived from his bank fraud scheme, and with 10 counts of aggravated identity theft related to the use of other people’s identities during the commission of his bank fraud scheme.

On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.

Keilholz was the sole owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC.

According to the indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him. Additionally, the indictment says, Keilholz applied for a $7,818,705 PPP loan for TRK Valpo but the loan was denied by the bank.

Keilholz received a $1,706,260 PPP loan for TRK Construction, a $3,618,815 PPP loan for TL Builders, a $3,903,857 PPP loan for Project Design, and a $3,202,000 PPP loan for TRK Valpo.

Keilholz also applied for second round PPP loans for TRK Construction, TL Builders, and Project Design. Each loan was rejected by the bank. Each loan would have been limited to $2 million based on each application.

Keilholz allegedly used PPP loan proceeds for unauthorized purposes other than legitimate payroll, lease and mortgage interest, and utilities as required by the PPP. Keilholz, through TRK Construction, had accrued substantial and delinquent indebtedness to a number of lenders, the indictment says, and all or part of these debts were satisfied by PPP loan proceeds.

The indictment also alleges that Keilholz identified his wife as an employee of TRK Construction, TRK Valpo, and Project Design, while she worked as a full-time employee of the state of Missouri as a budget analyst. Between May and December 2020, Keilholz’s wife received a total of $325,000 from TRK Construction, TRK Valpo, and Project Design funded with PPP loan proceeds.

In addition to the four fraudulent PPP loans, the indictment alleges that the fraud scheme included $3,526,771 in a loan and line of credit related to a development in Valparaiso.

According to the indictment, Keilholz signed a promissory note with Hawthorn Bank in 2017 for $550,000 for TRK Valpo, which financed the purchase of and was secured by the real property in Valparaiso. Keilholz signed another promissory note, for more than $1 million, in 2018 for TRK Construction as a line of credit secured by the Valparaiso property. This line of credit was ultimately increased to $2 million. Keilholz signed another promissory note for $976,771 for TRK Construction as a line of credit in 2018, which was secured by the Valparaiso property and two properties in Jefferson City.

On Feb. 7, 2020, the Hawthorn Bank loan officer responsible for those loans wrote a memorandum to those loan files that stated, in part, that Keilholz “needed to bring the loans current and demonstrate that the project remains viable or the bank would move forward with aggressive collection or liquidation of collateral.” Hawthorn Bank entered into a forbearance agreement with TRK Construction and TRK Valpo, and with Keilholz and his wife as guarantors of the three of those loans, on April 28, 2020.

On July 3, 2020, Keilholz allegedly used PPP loan funds to purchase a $3,302,830 cashier’s check, which was applied to the outstanding balances on the Hawthorn Bank loans.

The indictment alleges that Keilholz provided materially false information to Hawthorn Bank to obtain loans, loan extensions, loan renewals, and loan forbearance. Keilholz allegedly provided Hawthorn Bank with an insufficient funds check for payment of interest on loans.

The indictment also contains a forfeiture allegation, which would require Keilholz to forfeit to the government any property involved in, or derived from the proceeds of, the alleged offenses, including five properties in Jefferson City, one property in Valparaiso, one property in La Porte, Ind., six vehicles (a 2020 Chevrolet Silverado, a 2021 Chevrolet Tahoe, two 2021 Chevrolet Silverados, a 2019 BMW X5, and a 2017 Ford F250 Lariat), a 2020 John Deer ZTrak, a 2020 John Deere Tractor, a Kubota Compact Track Loader, two utility trailers and two enclosed cargo trailers.

The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.

This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General; the Small Business Administration, Office of Inspector General; the Treasury Inspector General for Tax Administration; the FBI; and IRS-Criminal Investigation.