Month: October 2022

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Security News: Health Care Company Pleads Guilty and Is Sentenced for Conspiring to Suppress Wages of School Nurses

Source: United States Department of Justice News

Company Admits to Criminal Allocation and Wage-Fixing Conspiracy Targeting Nurses Serving a Nevada School District

VDA OC LLC (VDA), a health care staffing company, pleaded guilty and was sentenced today for entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses. 

During the conspiracy, from about October 2016 until July 2017, VDA, then known as Advantage On Call, LLC, was one of two primary providers of contract nursing services to the Clark County School District. According to the plea agreement it entered into with the government, VDA, through one of its employees, participated in a conspiracy with another contract health care staffing firm to suppress and eliminate competition by agreeing to allocate nurses and fix the wages of those nurses. At the same hearing during which VDA pleaded guilty, U.S. District Court Judge Richard F. Boulware II sentenced VDA to pay a criminal fine of $62,000 and restitution of $72,000 to victim nurses.

“Free and open labor markets are a cornerstone of the American dream,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty plea demonstrates our commitment to ensuring that workers receive competitive wages and a fair chance to pursue better work and that criminals who conspire to deprive them of those rights are held accountable. The court’s sentence will compensate the hardworking health care workers who were victims of this crime.”

“Protecting workers from antitrust schemes – such as wage-fixing and employee allocation – remains a priority for the U.S. Attorney’s Office,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Antitrust Division and FBI to prosecute anticompetitive conduct that affects opportunities for workers and the labor market.”

“The defendant conspired with a competitor to fix wages and undercut the salaries of school nurses,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Everyone, especially those responsible for keeping our children healthy and safe, deserves the opportunity to compete for employment in a fair marketplace.”

Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s International Corruption Unit, with assistance from the U.S. Attorney’s Office for the District of Nevada.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

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Security News: Two Former Directors of Public Works Sentenced for Accepting Bribes

Source: United States Department of Justice News

The former Director of Public Works of the Municipality of Guayama, Puerto Rico, and the former Director of Public Works of Cataño, also in Puerto Rico, were sentenced this week to two years and two years and 6 months in prison, respectively, for their involvement in separate bribery schemes in which they received cash payments in exchange for approving invoice payments for an asphalt and paving company.

According to court documents, Ramon Conde-Melendez, 56, was the Director of Public Works in the municipality of Guayama from 2013 until 2022. In 2019 and 2021, Conde-Melendez agreed to receive and received cash payments from an individual (Individual A) in exchange for certifying that the asphalt and paving company (Company A) completed asphalt projects in the municipality. The certification was required for the approval of invoices for payments from the municipality of Guayama to Company A. In 2019 and 2021, Conde-Melendez received kickback payments, equaling $1 per each square meter of asphalt removed by Company A, which totaled more than $15,000. In addition to the term of imprisonment, he was sentenced to two years of supervised release. In May 2022, Conde-Melendez pleaded guilty to conspiracy to commit federal program bribery.

According to court documents, Pedro Marrero-Miranda, 54, was the Director of Public Works in the municipality of Cataño from 2017 until 2021. In 2019, 2020, and 2021, Marrero-Miranda agreed to receive and received cash payments from Individual A and another individual (Individual B) in exchange for the distribution of asphalt removal projects by the municipality of Cataño to Company A, and the certification of invoices for payments from the municipality of Cataño to Company A. Specifically, Marrero-Miranda received multiple kickback payments equaling approximately $1 for each square meter of asphalt removed by Company A in the municipality of Cataño, which totaled more than $40,000. In addition to the term of imprisonment, he was sentenced to three years of supervised release. In June 2022, Marrero-Miranda pleaded guilty to conspiracy to commit federal program bribery.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement. 

The FBI San Juan Field Office investigated the cases.

Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico prosecuted the cases.

These cases are part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM); United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); Jose Luis Cruz-Cruz, 22-276 (SCC); United States Jose Bou-Santiago, 22-379 (ADC).

Additionally, federal grand juries recently indicted several former officials with bribery related to municipal contracts, and those cases are still pending. See United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).

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

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Defense News: Bahrain Leads Unmanned Exercise for Multinational Task Force

Source: United States Navy

Naval Forces from Bahrain, Saudi Arabia, the United Kingdom and the United States participated in support of Bahrain-led Combined Task Force (CTF) 152, one of four task forces organized under the Combined Maritime Forces. The naval drill enhanced interoperability in integrating new unmanned technologies to monitor regional waters.

“It is so valuable to get these opportunities to really test how our forces from across different nations can work together with the uncrewed systems,” said Royal Bahrain Naval Force Capt. Rashed Al-Ameen, commander of CTF 152. “It helps us better understand how to work with each other to boost regional security.”

Three U.S. Navy Saildrone Explorer unmanned surface vessels operated with USS Hurricane (PC 3) and USS Chinook (PC 9) from the United States, UK Royal Navy ships RFA Cardigan Bay (L3009) and HMS Bangor (M109), Royal Bahrain Naval Force ships RBNS Al-Manama and RBNS Al-Fateh, and HMS Khalid from the Royal Saudi Navy.

CTF 152 led the exercise while embarked aboard Cardigan Bay, as the ship sailed in international waters off the coast of Saudi Arabia. This is the latest drill involving unmanned systems in the Arabian Gulf since the United Kingdom and United States completed a similar bilateral naval exercise Oct. 7.

During both maneuvers, unmanned and artificial intelligence systems operated in conjunction with crewed ships and naval command centers ashore in Bahrain. Sensors from the unmanned vessels were able to locate and identify training aides in the water and relay visual depictions to the command centers.

Established in 2004, CTF 152 oversees maritime security operations in the Arabian Gulf for Combined Maritime Forces. Bahrain assumed command of CTF 152 from Kuwait in August.

Combined Maritime Forces is the world’s largest multinational naval partnership and includes 34 member-nations whose forces operate in the Red Sea, Gulf of Aden, Northern Arabian Sea, Gulf of Oman, Arabian Gulf and Indian Ocean. CMF is headquartered in Bahrain with U.S. Naval Forces Central Command and U.S. 5th Fleet.

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Defense News: U.S. Navy Rescues Mariners from Burning Vessel in Gulf of Aden

Source: United States Navy

Guided-missile destroyer USS Nitze (DDG 94) and patrol coastal ship USS Monsoon (PC 4) responded after observing the mariners in distress and immediately rendered assistance. Sailors safely rescued the civilian mariners before their burning vessel sank approximately 50 miles off the coast of Yemen.

“I’m so proud of our Sailors for being ready to respond and performing their duty to save lives with the upmost professionalism,” said Capt. Robert Francis, commander of Task Force 55, whose staff oversees operations for U.S. 5th Fleet’s surface forces. “Making a positive difference is what the U.S. Navy’s presence in this region is all about.”

The mariners identified themselves as Yemeni nationals and were immediately transferred to the Yemen Coast Guard.

Nitze is an Arleigh Burke-class destroyer that began operating in the Middle East this summer. Monsoon is forward-deployed to U.S. 5th Fleet and operates from Bahrain.

The U.S. 5th Fleet operating area includes 21 countries, the Arabian Gulf, Gulf of Oman, Red Sea, parts of the Indian Ocean and three critical choke points at the Strait of Hormuz, Bab al-Mandeb and Suez Canal.

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Security News: St. Paul Man Pleads Guilty to His Role in $250 Million Feeding Our Future Fraud Scheme

Source: United States Department of Justice News

MINNEAPOLIS – A St. Paul man has pleaded guilty to his role in the $250 million fraud scheme that exploited a federally-funded child nutrition program during the COVID-19 pandemic, announced United States Attorney Andrew M. Luger. 

According to court documents, Abdul Abubakar Ali, 40, admitted that from December 2020 through January 2022, he knowingly and willfully conspired with others to participate in a fraudulent scheme to obtain and misappropriate millions of dollars in federal child nutrition program funds that were intended as reimbursements for the cost of serving meals to underprivileged children.

According to his guilty plea, Ali used a non-profit entity called Youth Inventors Lab as a shell company to carry out his scheme. Ali and his co-conspirators enrolled Youth Inventors Lab in the Federal Child Nutrition Program under the sponsorship of Feeding Our Future. After enrolling in the program, Ali and his co-conspirators immediately began submitting claims for reimbursement for purportedly serving meals to hundreds or thousands of children a day. In support of these fraudulent claims, Ali and his co-conspirators prepared and submitted fake invoices purporting to document the purchase of food from a vendor, S & S Catering. But S & S Catering did not provide Youth Inventors Lab any meals and Youth Inventors Lab did not serve any meals.

According to his guilty plea, Ali submitted fake invoices from his company, Bilterms Solutions, to Youth Inventors Lab. The invoices were for purportedly providing technology services, which Ali and Bilterms Solutions did not actually perform. The purpose of the invoices was to hide the source of the funds Ali was receiving for participating in the fraud. Ali received approximately $82,000 from Youth Inventors Lab. Ali also received payments through Bilterms Solutions from co-conspirators made through another company, Franklyn Transportation. Those payments were made to Ali for his participation in the fraud scheme. Ali received $47,000 from Franklyn Transportation.

In total, Youth Inventors Lab claimed to have served over 1.3 million meals between December 2020 through June 2021 and fraudulently received $3,029,786 in reimbursements from Feeding Our Future.

Ali pleaded guilty yesterday in U.S. District Court before Judge Nancy E. Brasel to one count of conspiracy to commit wire fraud. Sentencing hearings will be scheduled at a later time.

This case is the result of an investigation conducted by the FBI, IRS – Criminal Investigations, and the U.S. Postal Inspection Service.

This case is being prosecuted by Assistant U.S. Attorneys Joseph H. Thompson, Harry M. Jacobs, Chelsea A. Walcker, Matthew S. Ebert, and Joseph S. Teirab. Assistant U.S. Attorney Craig Baune is handling the seizure and forfeiture of assets.

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