Justice Department Secures Agreement with Georgia School District to Protect Civil Rights of Students with Disabilities

Source: United States Department of Justice Criminal Division

The Justice Department announced today a settlement agreement with Fulton County Schools in Georgia to resolve the department’s investigation of the district’s response to an escalating series of student-on-student sexual assaults on a school bus serving students with special needs. The department conducted its investigation under Title IX of the Education Amendments of 1972, Title II of the Americans with Disabilities Act (ADA) and the Equal Educational Opportunities Act of 1974.

“A school district’s responsibility is to protect its students from sexual assault and harassment, particularly students whose disabilities make them vulnerable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Schools have a responsibility to address obstacles in reporting sexual assault and to take into account the special needs or vulnerabilities of any affected students and their families. The Justice Department will continue working to ensure that our schools are safe learning environments free from sexual harassment and equitable for students with disabilities.”

“Children with disabilities can be especially vulnerable and deserve to thrive in a learning environment free of violence of any kind, including when traveling to and from school aboard buses,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “We applaud the school district’s willingness to cooperate with our investigation and to amicably resolve this matter to ensure the protection and safety of these children.” 

The department’s investigation found that the district lacked adequate procedures and failed to train employees in the proper reporting of and response to student-on-student sexual harassment and assault; failed to appropriately accommodate the special needs of students with disabilities in preventing and responding to sexual assault; and failed to make educational and school communications, particularly those related to the complaint reporting and investigation process, accessible for parents and guardians with limited English proficiency. The agreement will strengthen the district’s policies and procedures for responding to student-on-student sexual assault and ensure that the district’s response accounts for the unique needs of students with disabilities and Limited English Proficient (LEP) parents.

The district cooperated with the department throughout the investigation. Among other actions, under the settlement agreement, the district will:

  • Revise its policies for responding to complaints of sexual misconduct;

  • Provide district staff with trainings on student-on-student sexual misconduct;

  • Ensure it provides students with disabilities the accommodations they need to participate in the district’s educational programs, particularly accommodations that support the communication needs of students with disabilities; and

  • Provide appropriate language assistance services to LEP parents and guardians.

The enforcement of Title IX, Title II and the Equal Educational Opportunities Act are top priorities for the Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the Educational Opportunities Section’s work is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.

The U.S. Attorney’s Office for the Northern District of Georgia worked in collaboration with the Civil Rights Division’s Educational Opportunities Section to investigate this case. Information about the U.S. Attorney’s Office for the Northern District of Georgia can be found at www.justice.gov/usao-ndga/about.

Pharmacy Owners Sentenced for $18M COVID-19 Health Care Fraud and Money Laundering Scheme

Source: United States Department of Justice Criminal Division

Two pharmacy owners were sentenced for using New York-area pharmacies to submit millions of dollars in false and fraudulent claims to Medicare and then laundering the proceeds, including during the COVID-19 pandemic.

Peter Khaim, 44, of Forest Hills, New York, was sentenced today to eight years and one month in prison, and his brother and co-defendant, Arkadiy Khaimov, 41, also of Forest Hills, was sentenced on April 3 to six years in prison.

According to court documents, Khaim and Khaimov engaged in a complex money laundering conspiracy to launder the proceeds of a fraudulent health care scheme involving 16 New York-area pharmacies that they and their co-conspirators owned and controlled. Khaim, Khaimov, and their co-conspirators exploited the COVID-19 emergency for their own financial gain by using COVID-19-related “emergency override” billing codes to submit fraudulent claims for expensive cancer medications Targretin Gel 1% and Panretin Gel 0.1% that were not prescribed by physicians or dispensed to patients, and that were purportedly dispensed during periods when certain pharmacies were closed.

To conceal over $18 million of their criminal proceeds, Khaim, Khaimov, and their co-conspirators funneled money through several shell companies, including sham pharmacy wholesale companies designed to look like legitimate wholesalers. Khaim and Khaimov typically sent the funds from the pharmacy bank accounts they controlled to the sham wholesale companies. The funds were then typically sent to companies in China for distribution to individuals in Uzbekistan. The defendants then received a corresponding amount of cash from a co-conspirator, minus a commission. At other times, the fraudulent proceeds were sent from the sham wholesale companies to Khaim, Khaimov, their relatives, or their designees, in the form of certified cashier’s checks and cash. Khaim and Khaimov used the proceeds of the scheme to purchase real estate and other luxury items. 

Khaim pleaded guilty on Nov. 3, 2022 to one count of conspiracy to commit money laundering.  Khaimov pleaded guilty on Nov. 16, 2022 to one count of conspiracy to commit money laundering. At sentencing, Khaim was ordered to pay more than $18 million in restitution and to forfeit more than $2.7 million. Khaimov was ordered to pay more than $18 million in restitution and to forfeit more than $9.6 million. 

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director in Charge James Smith of the FBI New York Field Office; Special Agent in Charge Thomas M. Fattorusso of the IRS Criminal Investigation; Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

HHS-OIG, the FBI, IRS Criminal Investigation, and FDIC-OIG investigated the case. 

Trial Attorney Arun Bodapati of the Criminal Division’s Fraud Section’s Northeast Strike Force prosecuted the case, with assistance from Principal Assistant Chief Jacob Foster and Assistant Chief Patrick Mott of the Criminal Division’s Fraud Section.

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, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Security News: Pharmacy Owners Sentenced for $18M COVID-19 Health Care Fraud and Money Laundering Scheme

Source: United States Department of Justice 2

Two pharmacy owners were sentenced for using New York-area pharmacies to submit millions of dollars in false and fraudulent claims to Medicare and then laundering the proceeds, including during the COVID-19 pandemic.

Peter Khaim, 44, of Forest Hills, New York, was sentenced today to eight years and one month in prison, and his brother and co-defendant, Arkadiy Khaimov, 41, also of Forest Hills, was sentenced on April 3 to six years in prison.

According to court documents, Khaim and Khaimov engaged in a complex money laundering conspiracy to launder the proceeds of a fraudulent health care scheme involving 16 New York-area pharmacies that they and their co-conspirators owned and controlled. Khaim, Khaimov, and their co-conspirators exploited the COVID-19 emergency for their own financial gain by using COVID-19-related “emergency override” billing codes to submit fraudulent claims for expensive cancer medications Targretin Gel 1% and Panretin Gel 0.1% that were not prescribed by physicians or dispensed to patients, and that were purportedly dispensed during periods when certain pharmacies were closed.

To conceal over $18 million of their criminal proceeds, Khaim, Khaimov, and their co-conspirators funneled money through several shell companies, including sham pharmacy wholesale companies designed to look like legitimate wholesalers. Khaim and Khaimov typically sent the funds from the pharmacy bank accounts they controlled to the sham wholesale companies. The funds were then typically sent to companies in China for distribution to individuals in Uzbekistan. The defendants then received a corresponding amount of cash from a co-conspirator, minus a commission. At other times, the fraudulent proceeds were sent from the sham wholesale companies to Khaim, Khaimov, their relatives, or their designees, in the form of certified cashier’s checks and cash. Khaim and Khaimov used the proceeds of the scheme to purchase real estate and other luxury items. 

Khaim pleaded guilty on Nov. 3, 2022 to one count of conspiracy to commit money laundering.  Khaimov pleaded guilty on Nov. 16, 2022 to one count of conspiracy to commit money laundering. At sentencing, Khaim was ordered to pay more than $18 million in restitution and to forfeit more than $2.7 million. Khaimov was ordered to pay more than $18 million in restitution and to forfeit more than $9.6 million. 

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Breon Peace for the Eastern District of New York; Assistant Director in Charge James Smith of the FBI New York Field Office; Special Agent in Charge Thomas M. Fattorusso of the IRS Criminal Investigation; Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

HHS-OIG, the FBI, IRS Criminal Investigation, and FDIC-OIG investigated the case. 

Trial Attorney Arun Bodapati of the Criminal Division’s Fraud Section’s Northeast Strike Force prosecuted the case, with assistance from Principal Assistant Chief Jacob Foster and Assistant Chief Patrick Mott of the Criminal Division’s Fraud Section.

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, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Defense News: Keel Authenticated for Future USNS Sojourner Truth

Source: United States Navy

A keel laying ceremony represents the joining together of the ship’s modular components at the land level. During the ceremony, the keel is authenticated when a welder etches the initials of the ship sponsor into the ceremonial keel plate, which will sail with the ship throughout its service life. The ship sponsor is Marian Wright Edelman, civil rights trailblazer and Founder and President Emerita of the Children’s Defense Fund. 

“The future USNS Sojourner Truth will aid in expanding refueling capability at sea,” said John Lighthammer, program manager, Auxiliary and Special Mission Ships, Program Executive Office (PEO) Ships. “This ship honors the legacy of a woman of great character and determination and the ship will bring the critical capacity needed to the fleet in often rapidly changing environments.”

The John Lewis-class of ships is operated by the Military Sealift Command and the oilers feature substantial volume for oil, a significant dry cargo capacity and aviation capability. T-AOs provide additional capacity to the Navy’s Combat Logistical Force and become the cornerstone of the fuel delivery system.

PEO Ships, one of the Department of Defense’s largest acquisition organization, is responsible for executing the development and procurement of all destroyers, amphibious ships and craft, auxiliary ships, special mission ships, sealift ships and support ships.

Defense News: BALTOPS 24 Concludes In Kiel, Germany

Source: United States Navy

During their time in port, Allies gathered to reflect on the accomplishments and success achieved throughout the 21-day Baltic Region exercise involving more than 50 ships, 85 aircraft, and approximately 9,000 personnel.

Vice Adm. Thomas Ishee, Commander of Naval Striking and Support Forces NATO (STRIKFORNATO) and U.S. 6th Fleet, reflected on the critical nature of the NATO Alliance in the region, and how integral BALTOPS-24 is in advancing Allies’ shared objectives in the Baltic.

“BALTOPS-24 is not only the largest iteration in its 53-year history, but the first in nearly 30 years that all participants are NATO Allies,” Vice Adm. Ishee said. “NATO Nations account for nearly all 8,000 km of Baltic coastline. That’s eight of nine Baltic Sea Nations who share values for Freedom of Navigation and the legitimate use of the Baltic Sea.

The exercise began with a pre-sail conference June 4 in Klaipeda, Lithuania, where exercise staff and senior leaders met to finalize the scenario and operations, and discuss the unique maritime challenges and opportunities of the Baltic Region.

“Beginning in 1972, BALTOPS continues to build trust, foster understanding and enhanced interoperability across the maritime, air, land, and space domains,” said Vice Adm. Ishee. “But more importantly, the gathering of so many nations demonstrates our collective strength, resolve and commitment to Baltic Sea regional security.”

June 8 marked the beginning of the underway portion of exercise, with 30 NATO warships sailing alongside each other in one of the largest maritime formations in the region’s history.

This year saw the largest assembled coalition of amphibious forces in the Baltic Sea, with four Amphibious Task Groups (ATG) and Multinational Task Units exercising amphibious capabilities in Skrunda, Latvia; Gotland, Sweden; Utska, Poland; and Putlos, Germany. Each area presented unique challenges to integrated amphibious operations, which were leveraged by the multinational amphibious assault teams to practice competencies together.

At-sea, the U.S. Navy amphibious assault ship USS Wasp (LHD 1), and San Antonio-class amphibious transport dock ship USS New York (LPD 21), the Spanish Navy aircraft carrier Juan Carlos I (L 61), and the French Navy amphibious assault ship FS Mistral (L 9013) were central to the integration of BALTOPS-24 amphibious capabilities. On land, armed forces from more than eight NATO nations conducted urban warfare training; tactical recovery of personnel; aerial insertions; beach landings; forest navigation; deployment of M142 High Mobility Artillery Rocket System; free-jumping into simulated contested territory and full-scale amphibious assaults on an opposing force.

“[BALTOPS-24] is a multidisciplinary exercise, comprising several warfare domains. specifically, amphibious operations, which is a very important part of LHD Mistral,” said French Navy Capt. Olivier Roussille, commanding officer of the FS Mistral. “The objective [of the exercise] is to contribute to NATO reassurance in the area, and build a sustainable legacy to the benefit of collective defense, while strengthening our ties and interoperability with the Allied navy sailors.”

This iteration of BALTOPS-24 also hosted the largest assembled coalition of mine countermeasure (MCM) forces in NATO, leading to a robust docket of MCM activity throughout the 21-day exercise. Deploying more than 700 personnel, 20 surface ships, 20 unmanned systems, and two MH-60S Seahawk helicopters, Swedish, French, Norwegian, Dutch, and U.S. forces scanned the seabed to develop an operating picture, practiced locating mines with surface assets, deployed the Airborne Mine Neutralization System for aerial mine recovery, and finalized their multinational MCM collaboration with an MCM combat rehearsal.

“BALTOPS allows us to sharpen the sword of our MCM capabilities, but also brings together all of the NATO partners that may go in and remove that mine threat,” Capt. Scott Hattaway, director of Naval Surface and Mine Warfighting Development Center (SMWDC), and lead for all MCM activity during BALTOPS 24. “No one country goes into an MCM operation by themselves. We practice now as an international cohort in order to prepare for when we do it for real.”

At sea, NATO warships conducted tactical maneuvering drills, anti-submarine warfare training, gunnery and small caliber live fire events, and air defense exercises. Of significant note, the alliance practiced the integration of medical capabilities, with the USS Wasp, USS New York, the Royal Netherlands Navy Rotterdam class landing platform dock ship HNLMS Johan de Witt (L 801), and the Spanish Navy aircraft carrier Juan Carlos I (L 61) simulating a mass casualty drill and patient transfers between vessels.

In addition to medical readiness, the NATO team also practiced the integration of its spiritual readiness staff. Seventeen chaplains, Religious Program Specialists, and assistants from 10 NATO nations participated in a conference aboard the USS Mount Whitney to learn about NATO Spiritual Support Interoperability (SSI) initiatives. Later, Dutch, Finnish and U.S. chaplains would meet aboard the HNLMS Johan de Witt to discuss how multinational chaplains could support a multinational force.

Also at-sea, Royal Navy, Lithuanian Navy, and U.S. Navy service members conducted joint personnel recovery operations. During the operation, a Royal Navy small craft placed both a mannequin and a Survival, Evasion, Resistance, and Escape (SERE) specialist into the Baltic Sea. After receiving a simulated recovery request, Lithuanian Navy Ship LNS Skalvis (P14) recovered the dummy, a MH-60S Sea Hawk helicopter attached to HSC-28 deployed a rescue swimmer into the water and recovered the live survivor, who then was dropped off onto one of the Royal Navy vessels, HMS Example.

All of these events – whether at-sea, ashore, or in the air – were planned and coordinated by a substantial multinational coalition of liaison officers and augmentees operating out of the STRIKFORNATO headquarters in Oeiras, Portugal. These liaison officers were the conduit through which directives, intelligence, and requests flowed, bridging the gap between command levels, operational units, and supporting elements, and acting as the beating heart of exercise BALTOPS-24.

Of special significance, for the first time in BALTOPS history, nearly all of the 8,000 kilometers of the Baltic Coastline is safeguarded by NATO Allies. This is only possible due to the accession of Finland in 2023, and the more recent accession of Sweden on March 7, 2024.

“Since we joined three months ago, it’s important for Sweden to show that we, as a nation, contribute to the security and stability in the Baltic Sea region as it is our home turf as well,” says Lt. Tobias Irebro, liaison officer with the Swedish Navy. “It also lets us show that we are a willing contributor as a newly joined ally. It’s also very important for the Baltic countries to exercise security and stability in the region as they depend on the sea as a main logistics asset for importing and exporting.”

Looking towards the future, preparations have already begun for next year’s exercise, which will take into account the valuable lessons gleaned from BALTOPS-24 and aim to expand upon its achievements in BALTOPS-25.

STRIKFORNATO, headquartered at Oeiras, Portugal, is a rapidly deployable and scalable headquarters, under the operational command of SACEUR, capable of planning and executing full spectrum joint maritime operations including maritime Ballistic Missile Defence, primarily through integration of U.S. and other nations’ carrier and amphibious forces into NATO operations to provide assurance, deterrence, and collective defence for the Alliance.

Headquartered in Naples, Italy, NAVEUR-NAVAF operates U.S. naval forces in the U.S. European Command (USEUCOM) and U.S. Africa Command (USAFRICOM) areas of responsibility. U.S. Sixth Fleet is permanently assigned to NAVEUR-NAVAF, and employs maritime forces through the full spectrum of joint and combined naval operations.