Man Pleads Guilty to $1.9M Baby Formula Fraud Scheme

Source: United States Department of Justice News

A New York man pleaded guilty today to defrauding insurance plans and medical suppliers by fraudulently procuring specialty baby formula. 

According to court documents, Vladislav Kotlyar, 43, of Staten Island, submitted and caused the submission of forged prescriptions and medical records for specialty baby formula that was paid for by health insurers. Kotlyar obtained prescriptions and medical records for infants who were prescribed specialty baby formula and forged those records to obtain additional specialty baby formula. After receiving the specialty baby formula, Kotlyar fabricated issues with the shipments, including by falsely claiming they were damaged or the incorrect formula to acquire additional formula at no additional cost. Kotlyar then sold the fraudulently obtained formula. As part of the scheme, Kotlyar and his co-conspirators submitted more than $1.9 million in fraudulent claims to health insurers, including during a national shortage of baby formula. Kotlyar agreed to forfeit approximately $1 million and repay more than $738,000 in restitution. 

Kotlyar pleaded guilty to mail fraud and faces a maximum penalty of 20 years in prison. A sentencing date has not been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.

The FBI is investigating the case.

Trial Attorney Patrick J. Campbell of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.

Washington D.C. Student Found Guilty of Felony and Misdemeanor Charges Related to Capitol Breach

Source: United States Department of Justice News

Defendant Assaulted Officers With an Electro-Shock Device

            WASHINGTON – A Florida man, who in January 2021 attended school in Washington, D.C., was found guilty in the District of Columbia today of felony and misdemeanor charges for his actions during the Jan. 6, 2021, Capitol breach. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Vitali GossJankowski, 34, a former student at Washington D.C.’s Gallaudet University was found guilty today of multiple felonies for his role in disrupting a joint session of the United States Congress in the process of ascertaining and counting the electoral votes following the 2020 Presidential election.

            GossJankowski was convicted by a jury of obstructing, impeding, or interfering with law enforcement during a civil disorder, corruptly obstructing, influencing, or impeding an official proceeding before Congress, forcibly assaulting, resisting, opposing, impeding, or interfering with a law enforcement officer on account of his official duties. GossJankowski was also convicted of misdemeanor offenses related to knowingly entering or remaining in a restricted building or grounds, knowingly disrupting the orderly conduct of Government business in a restricted building or grounds, and knowingly engaging in disruptive or disorder conduct inside a Capitol Building or on Capitol Grounds.

            According to evidence and testimony presented at trial, GossJankowski travelled from the Ellipse to the United States Capitol, making his way into the tunnel leading to the Lower West Terrace.

            While moving from the West Front of the Capitol to the Upper West Terrace, GossJankowski was able to observe the rioters pushing their way pass a line of officers before becoming one of the first individuals to enter through the Lower West Terrace outer door. GossJankowski stood near other rioters as they used poles to strike a line of officers attempting to stop rioters from entering the building and observed other rioters breaking a glass door with a “Members Entrance Only” sign embedded within it. GossJankowski was captured on surveillance cameras, officer body-worn cameras, and other rioter’s cell phone videos interfering with officers by pushing them, spitting at them, and pulling at their protective shields. GossJankowski also joining other rioters by passing the officer’s protective shields away from the officers, joining a concerted effort to push against the officers’ line, and beckoning for more rioters to enter into the tunnel against the officers.

            Later, when two law enforcement officers were pulled into the crowd, GossJankowski pushed his way through the crowd just outside the tunnel and grabbed an officer with the United States Capitol Police by his helmet. GossJankowski pulled the officer close and reached toward the officer with an unrecovered device GossJankowski would later call a taser. The officer suffered no additional harm and would later be escorted out of the crowd where he then returned to the Capitol to continue battling rioters attempting to enter the building.

            The case is being prosecuted by the United States Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section.

            The case was investigated by the Federal Bureau of Investigation’s Washington Field Office, with valuable assistance provided by the Metropolitan Police Department of the United States Capitol Police.

            In the 26 months since January 6, 2021, more than 999 individuals have been arrested in nearly all 50 states, and the District of Columbia, for crimes related to the breach of the United State Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains open.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Maryland Man Sentenced on Felony and Misdemeanor Charges Related to Capitol Breach

Source: United States Department of Justice News

Defendant Spent 27 Minutes Inside Capitol Building; had to be forcibly removed by police

            WASHINGTON – A Maryland man was sentenced today in the District of Columbia on felony and misdemeanor charges for his actions during the Jan. 6, 2021, Capitol breach.  His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Daniel Egtvedt, 59, of Oakland, Md., was sentenced to 42 months in prison for four felony charges and three misdemeanors including: assaulting, resisting, or impeding officers; obstruction of an official proceeding; interfering with law enforcement officers during a civil disorder; entering and remaining in a restricted building; disorderly and disruptive conduct in a restricted building; and disorderly conduct in a Capitol building. Egtvedt was found guilty on December 16, 2022, following a bench trial before U.S. District Judge Christopher R. Cooper. In addition to the prison term, Egtvedt was ordered to pay $2,000 restitution and serve three years on supervised release.

            According to the government’s evidence, Egtvedt forcibly entered the Capitol at approximately 2:48 p.m. through the Senate Wing Doors.  As shown on U.S. Capitol Police security video, Egtvedt and numerous other individuals entered at that moment by pushing their way through a line of USCP officers.  Once inside Egtvedt walked through the building, loudly accusing various police officers of being “traitors.”  He also told another rioter, who was recording and live-streaming him, that other people should come down to the Capitol to disrupt the congressional proceedings.

            Several minutes later, at approximately 3:11 p.m., Egtvedt was walking through the Hall of Columns.  As shown on USCP security video and police body-worn camera video, multiple officers verbally directed the defendant to leave the building through a nearby doorway, which was in the direction he was already walking.  The defendant, however, refused to comply and instead reversed course and headed back toward the building interior.  When USCP Officer M.M. put her hand on Egtvedt’s chest, to direct him back toward the doorway, Egtvedt swatted her hand away and then grabbed onto her jacket.  MPD Officer M.D., along with other officers, then assisted Officer M.M., and tried to pull Egtvedt away from her and re-direct him back toward the doorway.  Egtvedt, who is over six feet tall and who weighed, at the time, well over 300 pounds, continued to try to move away from the doorway.  As a result, he, along with Officer M.D., fell to the floor, which resulted in Officer M.D. injuring his right shoulder.  Moments later USCP officers physically removed Egtvedt from the building.

            Even after he was outside the building, Egtvedt remained on the Capitol grounds and approached two other doorways, trying to get back inside. During this period he again spoke to another rioter who was livestreaming, and again urged people to come down to the Capitol.

            Egtvedt was arrested on Feb. 13, 2021, in Oakland, Md.

            The case was prosecuted by the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by U.S. Attorney’s Office for the District of Maryland, and the Department of Justice’s National Security Division.

            The case was investigated by the FBI’s Washington Field Office.  Valuable assistance was provided by the FBI’s Baltimore Division, the U.S. Capitol Police, the Metropolitan Police Department, the Maryland State Police, and the Garrett County (MD) Sheriff’s Department.

            In the 26 months since Jan. 6, 2021, more than 999 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement.  The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

U.S. Attorney Office Seizes $24,000 in Suspected Cryptocurrency Scam

Source: United States Department of Justice News

FAIRVIEW HEIGHTS, Ill. – The U.S. Attorney’s Office in the Southern District of Illinois announced Thursday the seizure of cryptocurrency valued at approximately $24,000 from an account believed to be involved in a fraud scheme against an O’Fallon resident.

“Many of us are still learning the facts about buying and trading cryptocurrency, and as in many cases, scammers are targeting the vulnerable,” said U.S. Attorney Rachelle Aud Crowe. “I appreciate the collaboration between the O’Fallon Police Department and the U.S. Secret Service for their efforts to recover the victim’s funds.”

“The U.S. Secret Service is dedicated to safeguarding the integrity of U.S. financial systems and preventing the public from losing their hard-earned money to these types of scams,” said Stephen S. Webster, Resident Agent in Charge of the U.S. Secret Service Springfield Office. “Unfortunately, new technology has made it easier for individuals abroad to take advantage of innocent victims throughout the United States. The U.S. Secret Service worked quickly with our partners at the U.S. Attorney’s Office in the Southern District of Illinois and O’Fallon Police Department to seize this cryptocurrency and prevent it from lining the pockets of criminals overseas.” 

The U.S. District Court issued a default judgment on Feb. 15 on a civil forfeiture complaint. The civil forfeiture complaint, which was filed on Sept. 21, 2022, sought the seizure of 14.77997889 Ethereum (ETH) Cryptocurrency from a Binance Account holder based in Nigeria.

According to an exhibit filed in support of the government’s civil forfeiture complaint, a woman contacted the O’Fallon Police Department in June 2022 to report she was a victim of fraud in a suspected cryptocurrency scam worth more than $32,000.

In May 2022, the victim began communicating with a Twitter account unbeknownst to her at the time was impersonating a cryptocurrency influencer. The fraudster instructed her to deposit $32,662 worth of Bitcoin into a “3Twarriorstrading.com” account. By the time the victim realized the website was a scam, she could not retrieve the cryptocurrency.

The value of the forfeited property will be returned to the victim through a process known as remission. The victim lost about $32,000, but the investigation could only trace and forfeit property worth approximately $24,000.

No criminal charges have been filed related to the civil forfeiture.

The O’Fallon Police Department and the U.S. Secret Service contributed to the investigation. Assistant U.S. Attorney Adam E. Hanna is prosecuting the case.

Attorney General Merrick B. Garland Delivers Remarks at The National Legal Aid & Defender Association’s Gideon@60 Commemoration

Source: United States Department of Justice News

Remarks as Delivered

Good afternoon.

We are here today because this weekend marks 60 years since Gideon v. Wainwright held that “any person haled into court, who is too poor to hire a lawyer, cannot be assured a fair trial unless counsel is provided for him.”

Just to describe the experience of Clarence Earl Gideon before his case reached the Supreme Court is to recall how different the American justice system was before that decision.

Gideon was charged with breaking and entering a pool hall. Without funds, and with only an eighth-grade education, he asked the trial judge to appoint counsel for him. When his request was denied, Gideon endeavored to defend himself.

As Justice Black’s opinion for the Court recounted, Gideon “conducted his defense about as well as could be expected from a layperson. He made an opening statement to the jury, cross-examined the State’s witnesses, . . . and made a short [closing] argument.” The jury soon returned a guilty verdict, and Gideon was sentenced to five years in state prison.

After the Supreme Court reversed the judgment, however, the case was retried. This time, represented by a local counsel, Gideon was acquitted.

At every stage of my career – as a criminal defense attorney, prosecutor, judge, and now our [nation’s] chief law enforcement officer – I have seen the truth of what Justice Black wrote in Gideon: “Lawyers in criminal courts are necessities, not luxuries.”

Without capable criminal defense attorneys, defendants cannot understand the scope of their rights at each stage of the criminal process. 

Prosecutors cannot learn of errors in their factual assumptions or legal analyses that could point them in the direction of different resolutions. 

Jurors cannot hear the full stories needed to fairly adjudicate cases. 

And judges cannot hear the full legal arguments needed to guide their decisions.

Criminal defense attorneys put the government’s case to the test. In so doing, they make sure that every part of our system fairer, more equal, and more just. 

But the Gideon case did more than just help ensure justice in individual cases. 

With its decision in Gideon, the Supreme Court transformed the American legal system by renewing the foundational promise of equal justice under law. 

It reaffirmed that the law protects all of us – the poor as well as the rich, the powerless as well as the powerful. 

In so doing, it reaffirmed the nation’s commitment to the Rule of Law. 

And trust in the Rule of Law is what keeps American democracy together. 

That trust requires not only that justice be done, but that it be seen to be done. And only the presence of counsel zealously defending their clients’ rights can ensure public confidence in the legitimacy of judicial proceedings, regardless of their outcome.

There is still so much more work to be done to make the promise of Gideon real. 

That work demands enormous effort from the legal community. Most of all, it makes enormous demands on those lawyers – like many in this room – who serve as public defenders, Criminal Justice Act attorneys, pro bono lawyers, and appointed counsels of every kind. 

Our justice system today would be no different than it was before Gideon if tens of thousands of lawyers had not stood up – and continued to stand up – to take on the calling of public defense. Your work is essential not only to your clients, but to the functioning of our judicial system.

I know that our justice system does not treat you accordingly.

However much we at the Justice Department complain – and rightly so – about our limited resources, I know full well that yours are far more limited.

I know that public defense remains drastically underfunded. I know that public defender offices are experiencing serious recruitment and retention problems that only worsened during the COVID-19 pandemic.

I know that you often carry staggering caseloads and that your staff and investigative resources are insufficient – to say nothing of your financial compensation. I also know that the pressure on criminal defense attorneys is enormous – there are no small cases when someone’s liberty is on the line.

The Justice Department recognizes the urgency and seriousness of these challenges. We are committed to doing all we can to support our colleagues who have devoted their careers to public defense.

One year after Gideon, Attorney General Robert F. Kennedy announced the creation of an Office of Criminal Justice within the Justice Department, focused on the provision of counsel to the poor. In doing so, he said: “It must be our purpose in government … to insure that the department over which I preside is more than a Department of Prosecution and is in fact the Department of Justice.”

It is with that same conviction that I announced the restoration of a standalone Office for Access to Justice within the Department in 2021. And it is why I asked Rachel Rossi, a former public defender, to lead it.

Our Office for Access to Justice is working closely with those of you on the front lines to identify and address the most urgent criminal and civil legal needs of communities across America.

Over the past few weeks, Department officials have crisscrossed the country to hear from public defense leaders on the ground.

Deputy Attorney General Lisa Monaco launched the Department’s nationwide tour in Miami, where she met with leaders of the federal and state public defender offices and defense advocates. She also announced a 100-day comprehensive review to ensure consistent, timely access to counsel in Bureau of Prisons pretrial facilities.

Staff of the Office for Access to Justice went to Tulsa to meet with representatives of an organization dedicated to serving mothers in the justice system with a holistic defense model, which not only represents their clients’ interests in court, but also addresses the underlying challenges in their lives outside of the criminal justice system.

Department attorneys and staff traveled to the Muscogee (Creek) Nation to meet with Tribal leaders and defenders to discuss public defense challenges specific to Tribal communities.

Director Rossi and Amy Solomon, the Department’s Principal Deputy Assistant Attorney General for the Office of Justice Programs, traveled to Nashville. There, they highlighted a public defense program that is receiving Byrne JAG funding from its State Administrating Agency. They made clear that states can use Byrne JAG funding from the Justice Department to support public defense services. 

Assistant Attorney General for the Criminal Division Kenneth Polite joined Director Rossi in Las [Vegas] to discuss the Department’s efforts to encourage law students to consider public defense as a profession.

And this week, Associate Attorney General Vanita Gupta traveled to Des Moines, where she announced that the Department will be establishing a new position within the Office for Access to Justice dedicated to supporting state and local public defense. 

We know this is only a start. We know that much more is required.

Like the Attorneys General who came before me, I begin every day by walking through a rotunda just outside my office, where these words are inscribed: “The United States wins its point whenever justice is done its citizens in the courts.” The message of course, is that this is true regardless of whether the outcome favors the government.

This is what distinguishes our justice system from those of many other countries. And this is what distinguishes our Justice Department from the law enforcement agencies of many other countries.

We are responsible not only for enforcing the law, but for upholding the Rule of Law. We are responsible for protecting civil rights and pursuing justice for all Americans. 

And justice demands more than good prosecutors and good judges. It demands meaningful access to counsel for the accused, including those who cannot afford to hire attorneys.

To provide that access, and to reaffirm the kind of faith in law upon which our democracy depends, public defender offices need more resources.  

Our nation needs more lawyers to answer the call of public service by providing criminal defense for those who cannot afford it.

And as a legal community, we need to recognize and reaffirm the necessity and the nobility of the public defense profession.

When I was a law student, one of my mentors was John Hart Ely. Although he was recognized as one of the foremost legal scholars in the country, Ely emphasized that the thing he was most proud of was the work he did on the Gideon brief when he was a summer associate at Arnold, Fortas & Porter in 1962.

No doubt that influenced my own subsequent decision to join the same law firm.

The firm’s then-senior partner when I joined was Abe Krash, who had supervised Ely and worked with Abe Fortas on the Gideon argument. Krash never failed to emphasize to every new lawyer that Clarence Earl Gideon was the most important client the firm had ever represented.

Ely and Krash knew that the integrity of the American justice system depends on effective representation for indigent defendants.

They knew that there are few things more meaningful and more honorable than applying one’s talent, experience, and education to representing another person before the state – no matter what that person is accused of having done.

They knew that the impact of Gideon would be felt for generations.

And they knew that fulfilling the promise of Gideon would require each generation of our country’s lawyers to take up its important cause.

The Justice Department is proud to stand with the public defenders and criminal defense attorneys in this room and across the country who are doing just that. 

Thank you for everything you do.