Month: June 2023

Source: United States Department of Justice News

Associate Attorney General Vanita Gupta traveled to Minnesota today and met with Tribal leaders and members of the Mille Lacs Band of Ojibwe. The trip focused on areas – public safety, justice administration, reentry and victims’ services – where the Justice Department provides substantial grant funding to support Tribal self-governance. Associate Attorney General Gupta held government-to-government meetings with the Tribe’s leadership, heard about the Tribe’s work to respond to challenges and reinforced the  Justice Department’s commitment to supporting Indian Country. She was joined throughout the trip by Director Tracy Toulou of the Justice Department’s Office of Tribal Justice (OTJ).

The Associate Attorney General’s trip to the Mille Lacs Band is the first in a series of meetings with Tribal governments on Tribal land in the coming months and is part of the Justice Department’s continued efforts to strengthen ties to Indian Country and elevate the voices and concerns of American Indians and Alaska Natives. 

Associate Attorney General Gupta opened the visit by remarking on the Supreme Court’s decision to reject constitutional challenges to the Indian Child Welfare Act, a landmark statute that protects Indian children and families and safeguards Tribal self-governance. As Attorney General Merrick B. Garland said in a statement  following the decision, the Justice Department vigorously defended the Act before the Court and will continue to do everything in its power to protect Tribal communities and affirm Tribal sovereignty. 

Meetings with Mille Lacs Band of Ojibwe Chief Executive and Tribal Leadership

Chief Executive Melanie Benjamin of the Mille Lacs Band welcomed the Associate Attorney General and convened a meeting with a number of the Band’s executive, legislative and judicial leaders. During the meeting, the Associate Attorney General learned more about the operations of the Band’s government, day-to-day challenges and exercise of sovereignty over their Homelands. Chief Executive Benjamin is the Midwest representative on the Attorney General’s Tribal Nations Leadership Council.

Tour of Reservation and Government Programming

Later in the afternoon, Associate Attorney General Gupta joined a tour of the reservation, which included visits to Tribal Courts and the Band’s Police Department and Government Center. She also visited the Band’s aanjibimaadizing, a center dedicated to “changing lives” by providing social services to youth and adults.  She ended her visit at the Band’s Health and Human Services Department.

Justice Department Resources to Address the Unique Needs of Indian Country

Throughout the visit, the Associate Attorney General and Tribal leadership discussed the Justice Department’s grant programs and how they assist the Band’s self-government initiatives. Through the Office of Justice Programs (OJP), Office on Violence Against Women (OVW) and Office of Community Oriented Policing Services (COPS Office), the Justice Department has provided the Band resources to construct new courtrooms, recruit and retain police officers, revise the Band’s statutes and provide shelter and services for victims of domestic violence. The Justice Department has also designated a Band attorney as a Special Assistant U.S. Attorney to enable the Band to more effectively prosecute serious crimes.

OTJ, among other duties, serves as a primary point of contact for Tribal governments and organizations regarding policies and programs and issues relating to public safety and justice in Indian country. In line with a whole-of-department approach, the department recently announced the hiring of 44 additional Assistant U.S. Attorneys and support staff to serve Native communities nationwide. In Minnesota alone, five new department personnel will be added to address issues arising within Indian Country.

Source: United States Department of Justice News

SAN DIEGO – Felix Luciano, the former President of Local 2805 chapter of the American Federation of Government Employees and former Department of Homeland Security officer, pleaded guilty in federal court today, admitting he filed a false report to conceal his embezzlement of thousands of dollars in union dues.

Local 2805 is a labor union which represents Department of Homeland Security, Immigration and Customs Enforcement employees in San Diego and Imperial Counties. Additionally, Luciano agreed to pay a $10,000 fine and repay Local 2805 $36,000 as money that he embezzled.

According to court records, Luciano was president of Local 2805.  From January of 2016 to December of 2018, Luciano used some of Local 2805’s money for a variety of personal expenses, including shopping, travel reimbursements, groceries, dining, dry cleaning, and paying for non-union accounts. He did this by writing checks from Local 2805’s checking account and using Local 2805’s debit and credit cards to directly pay personal expenses. As a result of Luciano’s actions, he caused a total loss of $36,000 to Local 2805. 

As Local 2805’s president, Luciano was required to file an annual Form LM-3 financial report with the United States Department of Labor, Office of Labor-Management Standards. A Form LM-3 is a report containing information about the organization over the prior year, including assets, liabilities, and disbursements to officers. A Form LM-3 is sworn under penalty of perjury. In the LM-3 report he filed in 2018, Luciano underreported the amount of money that he received from Local 2805 and Local 2805’s cash balance. In doing so, Luciano attempted to hide his embezzlement from the Department of Labor, his fellow union officers, as well as the union membership whose dues were the source of the embezzled funds. 

“When workers, who are the backbone of our community, devote their hard-earned money to labor unions, they rightly expect the officers to be honest stewards of their dues,” said U.S. Attorney Randy Grossman. “Felix Luciano abused the trust of the ICE government employees represented by Local 2805 by using the union’s money for his own personal benefit and enrichment, and then filed a false financial report that concealed the misappropriation of those funds.”

Grossman thanked the prosecution team and investigation agencies for their work on this case.

“While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur.  When they do, it is the union and its members that are the victims.  Felix Luciano embezzled over $36,000 from AFGE Local 2805 that should have been used for its members’ benefit,” said Ed Oquendo, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”

Carroll Harris, Postal Inspector in Charge of the Los Angeles Division stated, “This investigation was an excellent example of a partnership between federal law enforcement agencies, working together in the pursuit of justice.  I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved.” 

Luciano is scheduled to be sentenced on September 15, 2023 at 9:00 a.m. before U.S. District Judge Jinsook Ohta. 

DEFENDANT                       Case No. 22CR2201-JO

                                               

Felix Luciano                          Age: 61                       San Diego, California

SUMMARY OF CHARGE

False Statement, a felony, in violation of Title 18, United States Code, Section 1001.

Maximum Penalty:  Five years in custody; a fine of $250,000 

INVESTIGATING AGENCIES

Department of Labor, Office of Labor Management Standards

Department of Labor, Office of Inspector General

Department of Homeland Security, Office of Inspector General

United States Postal Inspection Service

Source: United States Department of Justice News

A Mexican national was sentenced today in the District of Columbia to 13 years in prison for conspiring to distribute cocaine for importation into the United States.

According to court documents, between 1998 and approximately 2012, Jaime Antonio Mandujano-Eudave, 61, worked with the Sinaloa Cartel to coordinate the transportation of cocaine by boat from Colombia to Culiacan, Los Cabos, and elsewhere in Mexico. Mandujano-Eudave communicated GPS coordinates to the boats’ crew members to facilitate meetings in the Pacific Ocean. There, the cocaine-laden boats from Colombia would meet other boats under the control of the Sinaloa Cartel and offload the cocaine. These boats transported multi-kilogram amounts of cocaine. Once the cocaine arrived in Mexico, other members of Sinaloa Cartel would transport the cocaine to the United States for sale. Mandujano-Eudave knew that the cocaine would be subsequently imported into the United States for further distribution.

In 2009, Mandujano-Eudave sent a vessel, the Fiona, to pick up approximately 1,000 kilograms of cocaine in the Pacific Ocean. In October 2009, the U.S. Coast Guard intercepted the Fiona just north of Clarion Island, Mexico. The Fiona was set on fire by its crew, but the U.S. Coast Guard was able to recover 500 kilograms of cocaine from the water.

In August 2014, Spanish authorities arrested Mandujano-Eudave at the request of the United States. He was extradited from Spain to the United States in February 2015. On March 8, Mandujano-Eudave pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Special Agent in Charge Ivan J. Arvelo of the Homeland Security Investigations (HSI) New York Field Office made the announcement.

The HSI New York Field Office investigated the case with assistance from the FBI Washington Field Office.

Trial Attorneys Kirk Handrich and Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. The Criminal Division’s Office of Enforcement Operations provided significant assistance.  

The Justice Department’s Office of International Affairs worked with law enforcement partners in Spain to secure the arrest and extradition of Mandujano-Eudave.  

This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).

Source: United States Department of Justice News

The Justice Department announced today that Smart Pharmacy, Inc., SP2, LLC, and owner Gregory Balotin have agreed to pay at least $7.4 million to resolve lawsuits filed in Jacksonville, Florida, alleging they violated the False Claims Act by adding the antipsychotic drug aripiprazole to topical compounded pain creams to boost reimbursement and by routinely waiving patient copayment obligations. The settlement amount is based on the defendants’ ability to pay.

“When pharmacies inflate their revenue with medically unsupported prescription ingredients, they compromise the quality of patient care and waste taxpayer dollars,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable those who undermine the integrity of federal healthcare programs for personal profit.”  

“A primary mission of the U.S. Attorney’s Office is protecting the Medicare and TRICARE programs from fraud,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “This case exemplifies our commitment to pursue pharmacies and pharmacists who abuse federal healthcare programs at the expense of the taxpayers.”

Aripiprazole, which is sold under the brand names Abilify, Abilify Maintena, and Aristada, is approved by the U.S. Food and Drug Administration to treat a number of psychological conditions such as schizophrenia and Tourette’s disorder. The United States alleged that the defendants crushed aripiprazole pills approved for oral use and included them in compounded creams used topically for pain treatment, while knowing that there was not an adequate clinical basis to do so. The defendants allegedly included the drug in the pain creams to increase their profits on prescriptions paid for by Medicare Part D and TRICARE, the federal health care program for active duty military personnel, retirees, and their families. Both Medicare Part D and TRICARE reimburse pharmacies for the individual ingredients included in compounded drugs, thus defendants increased their reimbursement by adding aripiprazole to the combination of drugs used in their pain creams.

The government also alleged that the defendants improperly waived patient copayments to induce patients to accept the pain cream prescriptions. Although copayments may be waived in certain unique circumstances, such as on the basis of an individualized assessment of a patient’s financial hardship, the defendants allegedly routinely waived copayments without regard to patient need.

In connection with the settlement, Gregory Balotin has agreed to enter into a three-year integrity agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG), which includes an annual claims review by an independent review organization.

“Pharmacies participating in Medicare are obligated to obey laws designed to protect both the integrity of this program and the quality of care provided to patients,” said Special Agent in Charge Omar Pérez Aybar of HHS-OIG. “With our law enforcement partners, our agency is committed to investigating alleged health care fraud to protect both federal health care programs as well as the individuals served by those programs.”

“We are grateful to the U.S. Department of Justice, the U.S. Attorney’s Office, and other state and federal officials for their unwavering commitment to protect taxpayer dollars and safeguard the TRICARE pharmacy benefit,” said Chief Edward C. Norton Jr. of the Defense Health Agency’s Pharmacy Operations Division. “Their efforts ensure our service members, veterans, and their families continue to receive the highest-quality pharmacy benefit commensurate with the service and sacrifice they make for our nation.”

“Health care providers and suppliers that serve our nation’s active duty service members, military retirees, and their families are expected to meet the highest standards of ethical and professional behavior,” said Special Agent in Charge Darrin K. Jones of the Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and its law enforcement partners will continue to investigate unprincipled health care providers that undermine the integrity of the DoD’s TRICARE program.”

The lawsuits, United States ex rel. Sanchez v. Smart Pharmacy, Inc., et al., No. 14-cv-1453 (M.D. Fla.), and United States ex rel. Kohli v. Smart Pharmacy, Inc., et al., No. 16-cv-387 (M.D. Fla.), were originally filed in the U.S. District Court for the Middle District of Florida by Amy Sanchez and Ashok Kohli, two former employees of Smart Pharmacy. The lawsuits were filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined. 

This matter was handled by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from HHS-OIG, DCIS, the Department of Veterans Affairs Office of Inspector General, the Department of Labor Office of Inspector General, and the Office of Personnel Management Office of Inspector General.

Assistant U.S. Attorneys Collette Cunningham and Holly Snow for the Middle District of Florida and Trial Attorneys Nicholas Perros, Jessica Sievert, and Andrew Jaco of the Civil Division are prosecuting the case.

The claims asserted against the defendants are allegations only and there has been no determination of liability.

Source: United States Department of Justice News

A member of the U.S. Air National Guard (USANG) stationed in Massachusetts was indicted today by a federal grand jury in Boston for allegedly retaining and transmitting classified national defense information on a social media platform beginning in or around 2022 and continuing until his arrest in April.

Jack Douglas Teixeira, 21, of North Dighton, Massachusetts, was indicted on six counts of willful retention and transmission of classified information relating to the national defense (National Defense Information). Teixeira was arrested on April 13, 2023, and charged by criminal complaint with retention and transmission of national defense information and unauthorized removal and retention of classified documents or materials. On May 19, 2023, U.S. District Court Magistrate Judge David H. Hennessy granted the government’s motion for detention. Teixeira remains in federal custody.

“As laid out in the indictment, Jack Teixeira was entrusted by the United States government with access to classified national defense information — including information that reasonably could be expected to cause exceptionally grave damage to national security if shared,” said Attorney General Merrick B. Garland. “Teixeira is charged with sharing information with users on a social media platform he knew were not entitled to receive it. In doing so, he is alleged to have violated U.S. law and endangered our national security.”

“Individuals granted security clearances are entrusted to protect classified information and safeguard our nation’s secrets. The allegations in today’s indictment reveal a serious violation of that trust,” said FBI Director Christopher Wray. “The FBI and our partners remain firm in our commitment to hold accountable those who endanger our national security and the security of our allies around the world.”

“The unauthorized removal, retention, and transmission of classified information jeopardizes our nation’s security. Individuals granted access to classified materials have a fundamental duty to safeguard the information for the safety of the United States, our active service members, its citizens, and its allies,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “We are committed to ensuring that those entrusted with sensitive national security information adhere to the law.”

According to the charging documents, Teixeira enlisted in the USANG in September 2019 and has held a Top Secret security clearance since 2021. It is alleged that, beginning in or around January 2022, Teixeira willfully, improperly, and unlawfully retained and transmitted National Defense Information classified as “TOP SECRET” or “SECRET” and/or Sensitive Compartmented Information, which he had reason to believe could be used to the injury of the United States or to the advantage of a foreign nation, on a social media platform to persons not authorized to receive such information.

According to the charging documents, Teixeira transmitted the classified National Defense Information on the social media platform in two ways. First, Teixeira allegedly accessed classified documents containing National Defense Information from a classified workstation at the Otis USANG Base and transcribed and transmitted the information in written paragraphs to other users on the social media platform. Teixeira also posted images of classified documents to the social media platform, which bore standard classification markings – including “SECRET,” “TOP SECRET,” and SCI designations – indicating that they contained highly classified United States government information. At least one of the documents containing national defense information was allegedly found in digital form in a particular account associated with Teixeira.

Each charge of unauthorized retention and transmission of national defense information provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. A federal judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI is investigating the case.

Assistant U.S. Attorneys Nadine Pellegrini, Jared C. Dolan, and Jason A. Casey for the District of Massachusetts and Trial Attorney Christina A. Clark of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

A criminal complaint is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.