Month: February 2023

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West Virginia man faces COVID fraud charges after claiming lost earnings while incarcerated

Source: United States Department of Justice News

WHEELING, WEST VIRGINIA – A West Virginia man has been indicted on wire fraud charges after obtaining COVID relief money by claiming he was operating a food truck when he was actually in federal prison.

Anton Matthews, age 39, of Wheeling, has been charged with wire fraud after obtaining nearly $50,000 in CARES Act loans after misrepresenting his income and occupation. According to court documents, Matthews submitted a loan application in which he claimed to have established a food truck business in January 2019 and to have earned $103,000 in gross income in 2020. However, Matthews was in federal prison from November 2016 until October 2020, followed by a period of home confinement until March 2021.

“We will continue to aggressively pursue criminals who stole relief money that was meant to help Americans,” said United States Attorney William Ihlenfeld. “Mr. Matthews’ conduct was particularly brazen, but he will be held to account thanks to the excellent work of the FBI.”

On the same day COVID fraud charges were filed against him, Matthews was also indicted for drug trafficking. The drug case alleges that Matthews conspired with others to distribute cocaine both inside and outside of the Third Alarm Bar on Wheeling Island in Ohio County last fall. Matthews faces a total of four cocaine distribution charges.

Matthews is presumed innocent until and unless proven guilty.

Assistant U.S. Attorneys Jennie Conklin and Shawn Adkins are representing the government.

The fraud investigation was conducted by the Federal Bureau of Investigation.

The drug investigation was conducted by the Ohio Valley Drug Task Force, which includes officers from the Wheeling Police Department, the Ohio County Sheriff’s Office, the West Virginia State Police, and the Drug Enforcement Administration.

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Leader Of Drug Trafficking Organization Pleads Guilty To Trafficking Thousands Of Kilograms Of Cocaine

Source: United States Department of Justice News

Damian Williams, the United States Attorney for the Southern District of New York, announced today that CAMILO ENRIQUEZ-NUNEZ, a/k/a “Viejo,” the leader of a drug trafficking organization that distributed thousands of kilograms of cocaine, pled guilty today in Manhattan federal court before U.S. District Judge Paul A. Engelmayer to conspiring to distribute more than 5,000 kilograms of cocaine. 

U.S. Attorney Damian Williams said: “Thanks to our partners at the DEA, approximately 1,300 kilograms of cocaine was seized before it could hit the streets.  Now, the leader of this major trafficking organization has been held accountable for his crimes.”

According to the allegations in the Superseding Information and other filings and statements made in court:

ENRIQUEZ-NUNEZ controlled a drug trafficking organization (the “DTO”) responsible for trafficking more than 5,000 kilograms of cocaine from Puerto Rico to the mainland United States.

On September 29, 2021, law enforcement officers seized 920 kilograms — more than one ton — of cocaine belonging to the DTO in New Jersey.  Three defendants were arrested in New Jersey along with that seizure.

On July 18, 2022, ENRIQUEZ-NUNEZ was arrested in Puerto Rico.  At approximately the same time as the arrest, law enforcement also seized approximately 380 kilograms of additional cocaine, four assault rifles, and $750,000 in cash belonging to the DTO.

*                *                *

ENRIQUEZ-NUNEZ, 43, of Puerto Rico, pled guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine, which carries a maximum potential sentence of life in prison. 

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentencing of the defendant will be determined by a judge.  Sentencing before Judge Engelmayer is scheduled for May 30, 2023, at 11:00 a.m.

Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration.

The case is being prosecuted by the Office’s Narcotics Unit.  Assistant U.S. Attorneys Samuel P. Rothschild, Kevin Mead, and Marguerite B. Colson are in charge of the prosecution.

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U.S. Marshals Capture Over 800 Fugitives in Operation North Star

Source: United States Department of Justice News

The U.S. Marshals Service has concluded Operation North Star II (ONS II), a high-impact fugitive apprehension initiative aimed at combating violent crime in 10 cities with a significant number of homicides and shootings.

This 30-day initiative resulted in the arrest of 833 fugitives, violent criminals, sex offenders, and self-identified gang members in Albuquerque, New Mexico; Buffalo, New York; Cleveland and Columbus, Ohio; Detroit, Michigan; Jackson, Mississippi; Kansas City, Missouri; Milwaukee, Wisconsin; Oakland, California; and Puerto Rico.

ONS II focused on fugitives wanted for the most serious, violent, and harmful offenses including homicide, forcible sexual assault, robbery, or aggravated assault. ONS II investigators prioritized their efforts to include individuals using firearms in their crimes, or who exhibited risk factors associated with violence.

“The results of this operation should make clear that the Justice Department and our partners across the country will stop at nothing to find and bring to justice those responsible for violent crime,” said Attorney General Merrick B. Garland. “The U.S. Marshals Service, and the entire Justice Department, will continue to work in partnership with community leaders and law enforcement professionals nationwide to protect our communities.”

“The U.S. Marshals Service remains steadfast in its commitment to assisting law enforcement and community leaders at all levels to combat violent crime,” said Director Ronald Davis of the U.S. Marshals Service. “The success of ONS II is based on its laser focus on the most significant drivers of violence. We are confident that apprehending these offenders will bring a level of justice to their victims and contribute to the overall violence reduction efforts in each city.”

Throughout the month of January, the U.S. Marshals Service used its broad arrest authority and network of task forces to arrest individuals wanted on charges including 95 for homicide and 68 for sexual assault. In addition, investigators seized 181 firearms, more than $229,000 in currency, and more than 160 kilograms of illegal narcotics.

Notable arrests included:

Walter Abbott was arrested on Jan. 18 in Rio Rancho, New Mexico, by members of the Southwest Fugitive Task Force. Abbott was wanted in Sandoval County, New Mexico, for first-degree attempted homicide and aggravated burglary with a deadly weapon.

Paris Jackson was arrested on Jan. 31 in Buffalo, New York, by members of the New York/New Jersey Regional Fugitive Task Force. Jackson was wanted in Buffalo for second-degree criminal in possession of a weapon and for shooting at a police officer.

Gregory Kalvitz and Jessica Downing were arrested on Jan. 20 in Cleveland by members of the Northern Ohio Violent Fugitive Task Force. They were wanted in Henry County, Ohio, for interference of a custody warrant after taking an 8-year-old girl and fleeing.

Jermaine Westbrook was arrested on Jan. 26 in Parkersburg, West Virginia, by personnel from the U.S. Marshals Service Southern District of West Virginia, with assistance from members of the Southern Ohio Fugitive Apprehension Strike Team. Westbrook was wanted in Franklin County, Ohio, for felony assault, murder, and parole violation.

Richard Nichols was arrested on Jan. 30 in Albion, Michigan, by members of the Detroit Fugitive Apprehension Team. Nichols was wanted by the Michigan State Police for assault with intent to murder.

Gerard Parker was arrested on Jan. 26 in Harrison County, Mississippi, by members of the Gulf Coast Regional Fugitive Task Force. Parker was wanted in New Orleans for third-degree sexual assault and parole violations.

Aaron Payne was arrested on Jan. 18 in Kansas City, Missouri, by members of the Missouri Violent Fugitive Task Force. Payne was wanted in Tarrant County, Texas, for felony assault strangulation.

Antonio Jenkins was arrested on Jan. 13 in West Allis, Wisconsin, by members of the Great Lakes Regional Fugitive Task Force. Jenkins was wanted in Milwaukee for numerous charges including first-degree reckless endangering safety, felon in possession of a firearm, battery, and sale/possess/use/transport of a machine gun.

Michael Nguyen was arrested on Jan. 11 in Oakland, California, by members of the Pacific Southwest Regional Fugitive Task Force. Nguyen was wanted in Oakland for possession of illegal weapons, illegal manufacturing of weapons, and firing weapons.

Edwin Padilla-Lopez was arrested on Feb. 3 in Carolina, Puerto Rico, by members of the Puerto Rico Violent Offender Task Force and Puerto Rico Organized Crime Drug Enforcement Task Force. Padilla-Lopez was wanted in the District of Puerto Rico for conspiracy to distribute controlled substances in the municipalities of Caguas, Cidra, and Aguas Buenas.

The concept behind interagency law enforcement operations such as ONS II evolved largely from regional and district task forces. Since the 1980s, the U.S. Marshals Service has combined their resources and expertise with local, state, and federal agencies to find and apprehend dangerous fugitives.

For more information, visit www.usmarshals.gov.

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Colorado Laser Technology Company Agrees to Pay More Than $400,000 to Resolve Allegations that it Improperly Used Foreign Subcontractors

Source: United States Department of Justice News

DENVER – Vescent Photonics, Inc., a laser technology company located in Golden, Colorado, agreed to pay $402,621 to resolve allegations that it violated the False Claims Act by using contractors located outside of the United States in research projects funded by the Small Business Innovation Research (SBIR) program.    

The SBIR program is a federal program intended to foster eligible small businesses in the United States through federally funded research and development awards. Awards are made by various government agencies to eligible small businesses for them to use domestically, in conducting research and developing technology with potential commercial benefits. The government does not own the research it subsidizes through the SBIR program or share in the profits from commercial applications. In order to ensure that taxpayer dollars are properly spent, the Small Business Administration, and each agency issuing awards, publishes eligibility requirements for participation in the program. One eligibility requirement for SBIR funds is that all research and development must be performed in the United States. More details on the SBIR program are available at https://www.sbir.gov/faqs/general-questions. 

According to the United States, Vescent, a company that conducts research and development of complex laser technologies, applied for and received two SBIR awards, one from the National Aeronautics and Space Administration (NASA), and one from the United States Air Force.  Vescent then subcontracted with two foreign nationals, located in foreign countries, to perform research and development on these SBIR projects. In doing so, Vescent failed to comply with the SBIR requirement that all research and development be performed in the United States, and violated the False Claims Act. 

“SBIR funds are intended to help support qualified small businesses in the United States, and to encourage domestic innovation and domestic technology development,” said U.S. Attorney Cole Finegan. “Diverting SBIR funds to foreign nationals located abroad undermines the purpose of this funding and violates the rules of the SBIR program.”

“Protecting research and development programs funded by NASA is a priority for the NASA Office of Inspector General (OIG). The settlement agreement with Vescent Photonics is the result of a joint effort to protect SBIR contracts from fraud and abuse, and this case demonstrates the commitment of the NASA OIG and our law enforcement partners to work with the U.S. Attorney’s Office to investigate and prosecute companies that defraud SBIR programs,” said Bob Steinau, Assistant Inspector General for Investigations, NASA OIG.

“This case demonstrates the dedication of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, to tirelessly investigate fraudulent conduct that undermines the integrity of the SBIR program,” said DCIS Assistant Inspector General Paul Sternal. “The outcome in this case reflects our steadfast commitment to hold those who defraud the United States Government and the Department of Defense accountable for their actions.”

“This settlement represents the combined efforts of partnering agencies to defend programs designed to assist domestic small businesses to ensure they are able to thrive and compete. We are fully committed to ensuring integrity within Air Force-funded acquisition programs,” said James P. Stoddard, Special Agent in Charge of the U.S. Air Force, Office of Special Investigations (OSI).

The claims resolved by this settlement are allegations only.

This matter was investigated by NASA OIG, the DCIS, and the U.S. Air Force OSI.  It was handled by Assistant U.S. Attorney Zeyen Wu. 

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Defense News: Congressional Caseworkers Visit the Fleet, Increase Navy Knowledge

Source: United States Navy

Navy OLA’s caseworker workshops help congressional caseworkers gain a greater understanding of Navy facilities, operations, and perspectives, and provide caseworkers the opportunity to tour ships, squadrons, or facilities; meet Sailors and leadership; and discuss various topics that affect constituent casework.

“Given that this session has attracted the most congressional caseworkers in-person attendance in more than five years, we’re ecstatic to provide a platform for these caseworkers to connect and foster relationships with Navy representatives who are masters in their field, equipped to answer their constituents’ most pressing questions,” said Lt. Arabia Shanklin, Navy OLA director of constituent inquiries. “Forty-two top-notch caseworkers from across the nation had a once-in-a-lifetime opportunity to witness and learn about the remarkable efforts of the Navy in serving our Sailors’ families and this great nation.”

This year’s two-day workshop included multiple briefs by subject matter experts covering recruiting, naval records, funeral honors and legal services. Participants also had the opportunity to tour the Nimitz-class aircraft carrier USS Abraham Lincoln (CVN 72) and Naval Special Warfare Center (NSWCEN) in Coronado, Calif.

Navy Talent Acquisition Group Pacific Commanding Officer, Cmdr. Phillip Ujiie informed caseworkers how the Navy has changed its methods to aid recruiting efforts; explaining in great detail the outreach to communities, as well as the qualification requirements for prospective recruits.

“You don’t see a lot of commercials on TV these days, because we’re not trying to recruit 40-year-olds,” Ujiie said to the room, getting laughs. Instead, he offered, recruiters are busy in the social media landscape, finding potential recruits where they already are.

Hal “Dave” Honegger with Navy Recruit Training Command increased caseworker knowledge on the latest changes to Boot Camp in Great Lakes. After showing a NRTC video, he discussed updates to the 10-week training curriculum that turns civilians into Sailors to include additional training on warrior toughness and mental health, to gender-integrated berthing and training.

The caseworker workshop has occurred for years, and each year caseworkers bring new questions on the topics of the day. Justin McEwen, a field representative for Rep. Linda Sanchez (D-CA), has been handling casework for six months, and said he was interested in coming to the workshop to learn about the Navy’s new initiatives on how to tackle administration delays and backlogs.

“I primarily work with retirees and veterans,” McEwen said. “Ninety-nine percent of the people I speak with need access to their records so they can receive their entitlements.” As an Air Force veteran himself, he takes the cases very personally, finding great satisfaction when a case is resolved.

Representatives from Navy Personnel Command and the Board for Correction of Naval Records were able to provide many details on the timeline and procedures for requests, and inform caseworkers what they can do to streamline the process for their cases.

“I think [the briefs] had really good information; they were very concise and provided general awareness” said Spencer Vehegan, constitution services representative for Sen. Debbie Stabenow (D-MI). Beyond the briefs, Vehegan was very impressed with Navy OLA’s options to solicit feedback, and the ability to make connections at the workshop.

Aboard the aircraft carrier where part of Top Gun Maverick was filmed, USS Abraham Lincoln, caseworkers said they were thrilled to expand their knowledge on the mission of aircraft carriers, while also interacting with Sailors during a tour of the ship’s medical facilities, hangar bay, berthing, and flight deck.

The workshop wrapped up on a high note for the caseworkers, with a trip to NSWCEN, and a chance to hear from the commander of Naval Special Warfare Command, Rear Adm. Keith Davids, who thanked the caseworkers for what they do for our country, and told them of new initiatives taking shape.

“We are transforming our tactics, techniques and procedures to make our Navy more lethal and survivable,” Davids said. “We are focused on real long-term threats, and how we support the broader joint force. We play a very important role for integrated deterrence in today’s strategic competition.”

In addition to receiving briefs on the NSW community’s organization, training, deployment cycle, and improvements to their capabilities, caseworkers were able to learn how NSW takes care of their number one asset – their people.

“We offer a plethora of resources and embedded care throughout their deployment and training cycle, to include pre and post-deployment retreats for families, and third location decompression for 42 – 78 hours when returning from deployment,” said Steve Gilmore, NSW Command’s program manager for the Preservation of the Force and Family.

When asked if the resources offered were mandatory, Gilmore said, “Our goal is to make it so good, that it’s voluntary.”

Caseworkers who were unable to attend the workshop can contact Navy OLA at navy_constituent@navy.mil to receive briefs and additional information.

Navy OLA plans, develops, and coordinates relationships between representatives of the Department of the Navy and Members of the United States Congress and their Committee staffs, which are necessary in the transaction of official government business (except appropriation matters) affecting the Navy. For more information about Navy OLA, visit Navy Office of Legislative Affairs.