Security News: McNary Man Sentenced to 180 Months for Abusive Sexual Contact of a Child

Source: United States Department of Justice News

PHOENIX, Ariz. – On November 7, 2022, Keenan Sherman Johnson, 26, of McNary, Arizona, was sentenced by United States District Judge Steven P. Logan to 180 months in prison, followed by lifetime supervised release. Johnson, an enrolled member of the White Mountain Apache Tribe, previously pleaded guilty to Abusive Sexual Contact of a Child.

In October 2018, the victim disclosed to her school counselor that Johnson had repeatedly sexually abused her several years before. When interviewed, Johnson admitted committing some of the acts, and apologized.

The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange, District of Arizona, Phoenix, handled the prosecution.

CASE NUMBER:            CR-21-08128-PCT-SPL
RELEASE NUMBER:    2022-214_Johnson

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

Security News: Milwaukee Man Sentenced to Federal Prison for Conspiracy to Defraud Medicare and Medicaid.

Source: United States Department of Justice News

Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 18, 2022, David Guerrero, Jr., was sentenced to 32 months’ imprisonment for conspiracy to defraud Medicare and Medicaid.  Guerrero was also ordered to pay over $1 million in restitution to Medicare and Medicaid.   

Court records in the case established the following. Guerrero worked at two Milwaukee-area medical clinics.  Beginning in 2016, Guerrero engaged in a years’ long scheme to refer patients to pharmacies owned by his co-defendant, Alexander Shister, for expensive compound pain creams in exchange for illegal kickback payments.  Although he is not a licensed medical provider, Guerrero used his access to private medical records at the clinics to identify patients who could plausibly need the pain creams and then ordered the pain creams from Shister’s pharmacies without the patients’ knowledge or consent.  As a result of the scheme, Medicare and Medicaid paid Shister’s pharmacies about $1 million for medically unnecessary pain creams, including creams not even received by patients.  Guerrero received over $100,000 in kickbacks from Shister for his role in the scheme.  In addition, Guerrero engaged in another kickback scheme with a medical laboratory company, receiving over $150,000 in kickbacks in exchange for ordering urine drug tests that doctors at the clinics generally did not approve or review.  In August 2022, Guerrero pleaded guilty to one count of conspiracy.   Shister has previously plead guilty for his role. His sentencing is set for January 13, 2023.

At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Guerrero’s crime, including the length of the fraudulent scheme and the significant losses suffered by the Medicare and Medicaid programs.  Judge Stadtmueller further noted that Guerrero violated the trust of patients by using their private medical information without their knowledge or consent in order to implement the scheme and earn his kickback payments.   

“Medicare and Medicaid only pay for medications and services that are actually needed to treat patients, not items ordered by individuals working in the medical field to line their own pockets,” said United States Attorney Haanstad.  “Guerrero took advantage of his access to patients’ private medical information to order millions of dollars of unnecessary pain creams and drug tests, all so that he could earn hundreds of thousands of dollars of illegal kickbacks.  This office is committed to working with our federal, state, and local partners to prevent kickback schemes and other frauds against the Medicare and Medicaid programs.”  

“The billing of medically unnecessary medications and tests, as well as the payment of kickbacks to induce those referrals to a federal health care program is illegal,” said Mario M. Pinto, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General. “The OIG is committed to working with our law enforcement partners to hold those who seek to defraud federally funded health care programs accountable.”

“The defendant thought he could get away with criminal activity, accessing patient’s medical records without their knowledge and using that information for personal financial gain,” said FBI Special Agent in Charge Michael E. Hensle. “Working with his co-defendant, they conspired to receive significant payments of nearly $1 million from Medicare and Medicaid for unnecessary medical products.  They also received over $150,000 in kickbacks from a medical lab.  The FBI continues to stand with our local, state, and federal partners to identify, investigate, and bring these offenders to face justice.”

The Federal Bureau of Investigation and the Office of the Inspector General for the Department of Health and Human Services investigated the case.  Assistant United States Attorneys Benjamin Proctor and Michael Carter handled the prosecution.

###

For further information contact:

Public Information Officer

Kenneth.Gales@usdoj.gov

(414) 297-1700

Follow us on Twitter

Security News: Court Authorizes the Seizure of Domains Used in Furtherance of a Cryptocurrency “Pig Butchering” Scheme

Source: United States Department of Justice News

ALEXANDRIA, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia announced today the seizure of seven domain names used in a recent cryptocurrency confidence crime, known as “pig butchering.”

In pig butchering schemes, scammers encounter victims on dating apps, social media websites, or even random texts masquerading as a wrong number. Scammers initiate relationships with victims and slowly gain their trust, eventually introducing the idea of making a business investment using cryptocurrency. Victims are then directed to other members of the scam syndicate running fraudulent cryptocurrency investment platforms, where victims are persuaded to invest money. Once the money is sent to the fake investment app, the scammer vanishes, taking all the money with them, often resulting in significant losses for the victim. And that is exactly what happened in this instance.

According to court records, from at least May through August 2022, scammers induced five victims in the United States by using the seven seized domains, which were all spoofed domains of the Singapore International Monetary Exchange. The term “spoofed” refers to domain spoofing and involves a cyberattack in which fraudsters or hackers seek to persuade individuals that a web address or email belongs to a legitimate and generally trusted company, when in fact it links the user to a false site controlled by a cybercriminal. The scammers — using the confidence-building techniques described above — convinced the victims that they were investing in a legitimate cryptocurrency opportunity. After the victims transferred investments into the deposit addresses that the scammers provided through the seven seized domain names, the victims’ funds were immediately transferred through numerous private wallets and swapping services in an effort to conceal the source of the funds. In total, the victims lost over $10 million.

If you believe you are a victim, please contact CryptoFraud@SecretService.gov or IC3.gov to file a report. Please provide detailed information in your report, including any purported investment websites visited, telephone numbers, email accounts, and social media profiles used by scammers, and any cryptocurrency addresses, transaction hashes, and dates of transactions. Your responses are voluntary. Based on the information provided, you may be contacted by the United States Secret Service or other law enforcement entity and asked to provide additional information. This office cannot act as your attorney or provide you with legal advice. However, you may seek the advice of an attorney with respect to this or other related legal matters.

Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; William Mancino, Special Agent in Charge, Criminal Investigative Division of the U.S. Secret Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, announced the seizure of the domain names.

The U.S. Attorney’s Office for the Eastern District of Virginia is represented by Assistant U.S. Attorneys Annie Zanobini, Zoe Bedell, and Carina A. Cuellar. Georgiana L. MacDonald of the Justice Department’s National Cryptocurrency Enforcement Team (NCET) provided substantial assistance in this action.

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. 1-22-sw-596.

Security News: Former Supervisory Correctional Officer Sentenced for Abusing a Hawaii Inmate and Leading a Conspiracy to Cover Up the Beating

Source: United States Department of Justice News

A former supervisory correctional officer at the Hawaii Community Correctional Center was sentenced to 144 months in federal prison for his role in the assault of an inmate and his leadership of a multi-year conspiracy to cover up the abuse.   

“The defendant had a non-violent inmate in his custody and care, and he abused both the inmate and the Constitution by permitting lower-ranking officers to commit an unjustified assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “His subsequent decision to orchestrate a multi-year cover-up is an affront to the principles of honesty and integrity that our society expects from law enforcement. His sentence makes clear that no one is above the law, and that when officers violate the civil rights of people under their supervision – through violence or obstruction – they will be held accountable.”

According to court documents and evidence introduced at trial, on June 15, 2015, Jonathan Taum, 50, supervised his two co-defendants and a third correctional officer while they transported an inmate across the facility. The inmate became frightened in the course of the transfer, and Taum’s fellow officers took the non-violent inmate to the ground and repeatedly punched and kicked him in the face, head, and body. As the other officers beat the inmate, Taum verbally encouraged them to continue. The inmate’s jaw, orbital socket and nose were broken in the course of the assault. In the months and years that followed, Taum led the officers in a cover-up conspiracy that included writing false reports, submitting false statements to internal affairs and providing false testimony to disciplinary board members. 

“Protecting the civil rights of everyone in the community, including inmates, is at the heart of our system of justice,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “Supervisors in our correctional facilities are held to a higher standard of responsibility and as this case demonstrates, we will prosecute those who criminally violate the civil rights of those in their custody.”

“This case highlights how the FBI will vigorously investigate and hold accountable any individual who violates the civil rights of an inmate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “We are committed in ensuring that every citizen—whether free or incarcerated—can exercise their protected liberties without fear of violence. This case should deter others in a position of power from such behavior in the future.”

Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.

The FBI Honolulu Field Office investigated the case.

Assistant U.S. Attorney Craig Nolan for the District of Hawaii, Special Litigation Counsel Chris Perras and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.

Defense News: Navy Lays Keel for Future USS Arkansas (SSN 800)

Source: United States Navy

SSN 800 will be the fifth naval vessel to bear the name Arkansas. The original Arkansas was a Civil War-era screw steamer. In 1902 an Arkansas-class monitor, one of the last monitors in the U.S. Navy, was commissioned with the same name. The third Arkansas, a Wyoming-class battleship, was commissioned in 1912. The fourth, which saw service from 1980 until 1998, was a Virginia-class nuclear-powered guided missile cruiser.

“Today is a momentous occasion. Not just for the shipbuilders who will pour their considerable skills into building this submarine, but also for the Sailors who will deploy aboard Arkansas and patrol the ocean’s depths in service of our nation and our way of life,” said Rear Adm. Jon Rucker, Program Executive Office, Attack Submarines. “Virginia-class submarines, such as Arkansas, and their dedicated crews will ensure our Navy remains ready to deter maritime aggression, maintain freedom of the seas, and defend our country and allies well into the future.”

The submarine’s sponsors are the six women of the Little Rock Nine – Dr. Melba Pattillo Beals, Elizabeth Eckford, Gloria Ray Karlmark, Carlotta Walls Lanier, Minnijean Brown Trickey, and Thelma Mothershed Wair. In a 1954 landmark decision, the Supreme Court ruled racial segregation of schools as unconstitutional. Three years later, nine African-American children were the first people of color to attend Central High School in Little Rock, Arkansas, a previously all-white campus. President Dwight D. Eisenhower would eventually federalize the Arkansas National Guard to protect the students during their integration. The Little Rock Nine, as they came to be known, have spent their lives advocating for quality education.

Per Navy tradition, shipbuilders welded the six women’s initials onto steel plates that will be affixed to the ship. The men of the group – Ernest G. Green, Dr. Terrence J. Roberts, and the late Jefferson Thomas – were also honored during the ceremony.

“With advances in sound silencing, acoustic sensors, and weapons delivery systems, Arkansas will traverse the world’s oceans and seas as an Apex Predator,” said Vice. Adm. Bill Houston, Commander, Naval Submarine Forces. “Representing our asymmetric advantage in the undersea domain, Arkansas will have no equal.”

Arkansas will be the 27th Virginia-class submarine. Boats in this class are the most advanced attack submarines in the world, with superior stealth, firepower and maneuverability than previous classes. They can hit shore-based targets with highly accurate Tomahawk cruise missiles and are capable of long-term, stealth surveillance of sea forces, littoral waters or ground targets. Their design also provides for Special Forces delivery and support, mine delivery and minefield mapping, and anti-submarine and anti-ship warfare.

For more information about the Virginia-class attack submarine, visit http://www.navy.mil/local/virginiaclass/

For more news from the Navy, visit www.navy.mil