Month: March 2023

Source: United States Department of Justice News

ANCHORAGE – Cristina Lynn Rifredi was sentenced on March 9, 2023, was sentenced to 10 years in prison for federal drug trafficking and firearms charges.

According to court documents, Cristina Lynn Rifredi, 42, of Kenai, Alaska, sold over 60 grams of methamphetamine, 1 gram of heroin, and a 12-gauge shotgun to another person between November 21, 2019, and December 8, 2020. When law enforcement executed a search warrant on Rifredi’s vehicle and residence, they found she possessed 27 firearms, a silencer, and additional quantities of methamphetamine and heroin. Rifredi was charged with drug trafficking and firearms crimes by a federal grand jury in November 2021 and pleaded guilty in December 2022.

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Alaska State Troopers (AST), and the Kenai Police Department (KPD) investigated the case.

Assistant U.S. Attorney Seth Brickey prosecuted the case.

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usao/ak/23-018

Source: United States Department of Justice News

A federal grand jury in Philadelphia returned an indictment charging a Pennsylvania man and woman with conspiring to defraud the IRS and other tax crimes, including failing to pay employment taxes to the IRS.

According to the indictment, which was unsealed today, from approximately October 2013 through December 2021, Theodore Shearba and Jennifer Cemini, both of Perkiomenville, owned and operated a landscaping and excavation business and attempted to defraud the IRS by (1) not reporting the income they received from the business, (2) using business funds to pay for personal expenditures, (3) not paying employment taxes, including the income tax withheld from employees’ paychecks and Social Security and Medicare taxes and (4) changing business names and concealing business income to thwart IRS efforts to collect the unpaid employment taxes. It is also alleged that Shearba did not file individual income tax returns for years 2019 through 2021.

If convicted, Shearba and Cemini each face a maximum penalty of five years in prison for the conspiracy count and each employment tax count. Shearba also faces a maximum penalty of one year in prison for each count of failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS-Criminal Investigation is investigating the case.

Assistant Chief Thomas F. Koelbl and Trial Attorney George Meggali of the Justice Department’s Tax Division are prosecuting the case.

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

Source: United States Department of Justice News

Baltimore, Maryland – United States Attorney for the District of Maryland Erek L. Barron and Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, along with the Consumer Financial Protection Bureau (CFPB) announced today that they filed a statement of interest to explain the application of the Fair Housing Act (FHA) and the Equal Credit Opportunity Act (ECOA) to lenders relying on discriminatory home appraisals.  The statement of interest was filed in Connolly, et al. v. Lanham, et al., a lawsuit currently pending in the U.S. District Court for the District of Maryland alleging that an appraiser and a lender violated the FHA and ECOA by lowering the valuation of a home because the owners were Black and by denying a mortgage refinancing application based on that appraisal. 

“The requirement that applicants and homeowners be treated equally is not new,” said U.S. Attorney for the District of Maryland Erek L. Barron.  “Appraisal bias is a serious and ongoing issue in this country, and it is critical that the United States ensures the proper construction and application of the Fair Housing Act and the Equal Credit Opportunity Act to hold appraisers and lenders accountable.”

“Discriminatory home appraisals are unlawful, perpetuate the racial wealth gap, and deny communities of color the benefits of homeownership,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.  “When appraisers or lenders treat homebuyers or homeowners differently because of race, they violate federal law.  The Justice Department is working to ensure an open and fair housing market by taking on appraisal bias, modern-day redlining, discriminatory loan pricing practices, and other forms of discrimination that may rear their ugly head at any stage of the home-buying process.”

“Lenders that discriminate against people seeking homeownership perpetuate inequities that prevent communities from thriving,” said CFPB Deputy Director Zixta Martinez.  “CFPB’s Statement of Interest filing with the Justice Department is one piece of our broader efforts to ensure fair and accurate appraisals in our residential mortgage markets.”

The Connolly lawsuit was filed by plaintiffs Nathan Connolly and Shani Mott, who sought a refinance loan for their home in Baltimore, Maryland.  The plaintiffs allege that the appraiser, Shane Lanham, significantly undervalued their home at $472,000 because they are Black.  They also allege that they told the lender, loanDepot.com, LLC (loanDepot), that the appraisal was discriminatory, but that loanDepot still denied the loan and retaliated against them.  When their home was later evaluated by a different appraiser, the plaintiffs replaced their family photos with photos borrowed from white friends and colleagues and enlisted a white colleague to pose as the homeowner.  This appraisal resulted in a valuation of $750,000 – an increase of almost 60%.

The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the statement of interest, the department and the CFPBaddress three legal principles incorrectly represented in loanDepot’s motion to dismiss.  First, the statement sets out the appropriate pleading standard for disparate treatment claims under the FHA and ECOA.  Second, the statement clarifies that it is illegal for a lender to rely on an appraisal that it knows or should know to be discriminatory.  Third, the statement explains that a violation of § 3617 of the FHA does not require an underlying violation of another provision of the FHA.  The motions to dismiss are currently pending before the court.

The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), nation origin and disability.  ECOA prohibits creditors from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act.

U.S. Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke thanked Assistant U.S. Attorney Kimberly S. Phillips of the District of Maryland and Trial Attorney Nathan Shulock of the Justice Department’s Civil Rights Division, who handled the Government’s Statement of Interest.

More information about the Civil Rights Division and the laws it enforces is available at justice.gov/crt.  More information about the Interagency Task Force on Property Appraisal and Valuation Equity (PAVE) is available at pave.hud.gov/.

Individuals may report housing discrimination to the Justice Department by calling 1-833-591-0291, emailing fairhousing@usdoj.gov, or submitting a report online. Individuals also may report housing discrimination to Department of Housing and Urban Development by calling 1-800-669-9777 or filing a complaint online. In addition, individuals may report credit discrimination to the Consumer Financial Protection Bureau at 1-855-411-2372 or online.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and information on civil rights laws and resources, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/civil-rights.

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Source: United States Department of Justice News

WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Dr. Kathy Cornelius, a Delaware physician who now resides in Huntsville, Alabama, has agreed to pay $500,000 to resolve allegations that she violated the False Claims Act by ordering medically unnecessary genetic testing for Medicare beneficiaries residing in Delaware. 

Between October 2020 and February 2022, Dr. Cornelius referred more than 250 Delaware residents for medically unnecessary genetic tests that were paid for by Medicare.  The United States alleges that Dr. Cornelius had no medical relationship with these patients and that the referrals were based on brief telemedicine consultations – often two minutes or less in duration – during which Dr. Cornelius failed to establish any legitimate medical justification for the tests.  The genetic tests Dr. Cornelius ordered often cost thousands of dollars per patient. 

“Doctors who refer patients for medically unnecessary services such as genetic testing drain vital funds from Medicare and other government healthcare programs,” said U.S. Attorney Weiss.  “This office will continue to use all available means to identify healthcare providers who increase costs through unnecessary procedures and to hold them accountable.”  

“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, Region III. “HHS-OIG and the U.S. Attorney’s Office will continue to evaluate and pursue allegations of medically unnecessary services”.

This matter was handled by Assistant U.S. Attorney Dylan J. Steinberg and Affirmative Civil Enforcement Auditor David Cheung.

The government’s pursuit of this matter illustrates its emphasis on combating health care fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).

The claims resolved by the settlement are allegations only and there has been no determination of liability.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.