Month: October 2024

Source: United States Department of Justice Criminal Division

The Justice Department’s Office on Violence Against Women (OVW) is today awarding over $228.5 million in grants to enhance a wide range of supportive services for survivors of domestic violence, sexual assault, dating violence, and stalking. The awards will go toward court-based programs, legal assistance, and initiatives tailored for older adults, rural communities, and other underserved groups. This set of awards also includes funding with a special emphasis on reducing barriers and enhancing access to services, safety, and healing for survivors in culturally specific communities.

These awards are part of the $690 million in grants administered by OVW that the Department announced earlier this month as part of the commemoration of the 30th anniversary of the Violence Against Women Act. Over the past month, many of these grants have been distributed to communities across the country. Those awards will enhance coordinated community responses to domestic violence, dating violence, sexual assault, and stalking across all states, territories, and numerous Tribal nations. They also build on an additional $86 million in awards announced earlier this week by OVW’s Office of Tribal Affairs.

This funding comes as the Justice Department is preparing to kick off National Domestic Violence Awareness Month (DVAM) in collaboration with survivors, victim service providers, law enforcement agencies, advocates, and other community partners nationwide. DVAM encourages expanding access to justice and supportive services, particularly for underserved and historically marginalized communities, and promoting best practices in addressing domestic violence. It calls for strengthening prevention efforts and enhancing responses to meet the diverse needs of survivors. The impact of domestic violence extends beyond individuals, affecting entire communities, including workplaces and schools. The Justice Department acknowledges the critical work of first responders and victim service providers who support those affected by domestic violence.

“The Justice Department is committed to ensuring the safety of all Americans, and that includes addressing and preventing the harm caused by domestic violence,” said Attorney General Merrick B. Garland. “This year, we are investing over $690 million, through the Office on Violence Against Women, in funding awards to prevent domestic and dating violence, as well as sexual assault and stalking; to hold offenders accountable; and to reach survivors in every community, territory, and Tribal nation. These awards reflect our steadfast dedication to ending these forms of violence and helping survivors find safety and healing.”

Beyond direct service funding, OVW invests in training and technical assistance through the Training and Technical Assistance Initiative. With grant awards exceeding $39 million to implement more than 59 training and technical assistance projects, this initiative will enhance the capacity of professionals within the civil and criminal justice systems and provide increased training and support for victim service providers nationwide. This funding supports effective responses to domestic violence, dating violence, sexual assault, and stalking while also strengthening a coordinated community response and fostering partnerships among organizations that have not traditionally collaborated in addressing these issues.

“As we celebrate three decades of progress since the passage of the Violence Against Women Act, the landscape of gender-based violence continues to evolve,” said Deputy Attorney General Lisa Monaco. “Prosecutors, law enforcement, and victim service providers must be equipped to meet emerging challenges and support victims, as well as hold violent actors to account. The grants announced today will bolster services for survivors and provide the tools necessary to address violence against women and advance public safety.”

• The release of grants also coincides with Historically Black Colleges and Universities (HBCU) and Hispanic-Serving Institutions (HSI) weeks, highlighting the importance of preventing and addressing violence among younger generations to break the cycle of violence and support healthy relationships. The Department has announced targeted grants focusing on two crucial areas: violence in higher education settings and programs designed specifically for children and youth. To enhance initiatives to prevent and address domestic violence, dating violence, sexual assault, and stalking including online harassment and technology-facilitated abuse, college campuses nationwide will receive support from $12.19 million in grants from the Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus Program. Additionally, OVW will distribute $9.48 million through the Strengthening Culturally Specific Campuses’ Approaches to Address Domestic Violence, Dating Violence, Sexual Assault, and Stalking Initiative. This funding aims to bolster programs at historically Black colleges and universities, Hispanic-serving institutions, and Tribal colleges and universities. Grants totaling more than $8.8 million from the Grants to Prevent and Respond to Domestic Violence, Dating Violence, Sexual Assault, Stalking, and Sex Trafficking Against Children and Youth Program will support comprehensive, community-based efforts to develop or expand prevention, intervention, treatment, and response strategies for children and youth impacted by gender-based violence.

“We must prevent and address dating violence, sexual assault, and stalking on our campuses and in the lives of our young people,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “By empowering campuses and providing resources to support children and youth, we can create environments where all are free to pursue their educational and personal aspirations without fear of violence.”

“As we commemorate Domestic Violence Awareness Month and the 30th anniversary of the Violence Against Women Act, we reaffirm our commitment to a future where everyone can live free from the threat of violence,” said OVW Director Rosie Hidalgo. “Every survivor of domestic violence, dating violence, sexual assault, and stalking deserves access to trauma-informed, comprehensive services to seek safety, justice, and healing. Through these grants, we support our grantees to provide crucial support, advancing our shared mission to eradicate gender-based violence. We are dedicated to bringing together key partners to advance this vital work through a coordinated community response.”

Additional grant program awards and their respective amounts include:

• Grants totaling more than $22.97 million through the Grants to Enhance Culturally Specific Services for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program will support community-based programs that provide culturally specific services for survivors of gender-based crimes, as well as the developing innovative culturally specific strategies and projects that enhance access to services and resources for survivors who face obstacles to using more traditional services and resources.
• Grants totaling more than $8 million through OVW’s Sexual Assault Services Culturally Specific Program will support nonprofit organizations that focus primarily on culturally specific communities and have experience working with survivors of sexual assault.
• Grants totaling more than $10.82 million through its Grants for Outreach and Services to Underserved Populations Program will support efforts to develop or enhance population-specific outreach and victim services to adult and youth victims of domestic violence, dating violence, sexual assault, and stalking in underserved populations.
• Grants totaling more than $36.09 million from OVW’s Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program will enhance efforts to support victims of domestic violence, dating violence, sexual assault, and stalking in rural areas and fund projects uniquely designed to address and prevent these crimes in rural areas.
• Grants totaling more than $39.29 million through the Legal Assistance for Victims (LAV) Grant Program will provide funds for comprehensive direct civil and criminal legal assistance to survivors of domestic violence, dating violence, sexual assault, and stalking by providing assistance with legal matters arising out of that abuse. Additionally, grants totaling more than $3.14 million through the LAV Grant Program’s Expanding Legal Services Initiative will support community-based organizations establishing legal representation programs for survivors.
• Grants totaling more than $14.66 million from the Justice for Families Program will support court-based and court-related programs such as supervised visitation and safe exchange by and between parents; training for people who work with families in the court system; and civil legal assistance.
• Grants totaling more than $1.42 million from the Training and Services to End Violence and Abuse Against Individuals with Disabilities and Deaf People Program will support efforts to improve the response to survivors of domestic violence, dating violence, sexual assault, stalking, and caregiver abuse who have disabilities or are Deaf, and to hold perpetrators of such crimes accountable.
• Grants totaling $3 million from the National Deaf Services Program Initiative will be used to support the continued efforts of Activating Change to reduce barriers and strengthen services for Deaf victims and survivors and to implement recommendations in the report, Expanding Deaf-Specific Victim Services Nationwide: A 5-Year Strategy.
• Grants totaling more than $6.87 million from the Training and Services to End Abuse in Later Life Program will support a comprehensive approach to addressing abuse in later life, including domestic violence, dating violence, sexual assault, stalking, neglect, abandonment, economic abuse, or willful harm committed against victims who are 50 years of age or older.
• Grants totaling more than $3.35 million from the Grants to Engage Men and Boys as Allies in the Prevention of Violence Against Women and Girls Program will support efforts to create educational and community-based programming designed to encourage men and boys to work as allies with women and girls to prevent domestic violence, dating violence, sexual assault, stalking, and sex trafficking.
• Grants totaling $3.6 million from OVW’s Research and Evaluation Initiative will support efforts to research and evaluate approaches to preventing and addressing domestic violence, dating violence, sexual assault, and stalking so that communities that benefit from VAWA funding will be better equipped to align their work with practices that are known to be effective.
• Grants totaling more than $1.48 million for a new program, the Expanding Sexual Assault Victim Services on Campus Pilot Program, will support institutions of higher education in improving victim services on campus by expanding access to holistic sexual assault services and creating a promising practices guide for higher education institutions that wish to expand their sexual assault services and advocacy.
• Grants totaling $1.5 million for the STOP Formula Training and Technical Assistance program, which will support the efforts of all states and territories to successfully implement projects through the use of STOP Formula funds to strengthen and build the capacity of civil and criminal justice system professionals and victim service providers across the nation to respond effectively to domestic violence, dating violence, sexual assault, and stalking and to foster partnerships among organizations that have not traditionally worked together to address these crimes.
• Grants totaling $600,000 from the Specialized Training and Technical Assistance for Sexual Assault Victim Response will continue to support the Pennsylvania Coalition to Advance Respect and the North Carolina Coalition Against Sexual Assault to provide frequent and sufficient training, resources, and technical assistance to those working with sexual assault survivors and to provide scholarships for advocates to attend the National Sexual Assault Conference.
• Grants totaling $1.5 million for the Electronic Service Protection Order Court Pilot will be used to support courts that have multidisciplinary partnerships to develop and implement a program for serving protection orders through electronic communication methods and develop best practices relating to such electronic services.

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent reauthorizing legislation. Created in 1995, OVW has awarded more than $11 billion in funding to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW supports policy development and undertakes special initiatives in response to community-identified needs. Learn more at www.justice.gov/ovw.

Source: United States Department of Justice Criminal Division

Two men were sentenced to prison today for selling targeted lists of U.S. consumers for the benefit of mass-mailing fraud schemes that defrauded hundreds of thousands of Americans out of tens of millions of dollars. Following a two-week trial, a federal jury convicted Robert Reger, 57, of Boulder, Colorado, and David Lytle, 64, of Leawood, Kansas, of conspiracy to commit mail and wire fraud and numerous counts of substantive mail fraud and wire fraud. For these crimes, the U.S. District Court for the District of Colorado sentenced Reger, 57, to 120 months in prison, and Lytle, 64 to 48 months in prison.

According to evidence presented at trial, over the course of 10 years, the defendants were key participants in a scheme that knowingly sold targeted lists of consumers and their addresses to perpetrators of fraud schemes involving the sending of false and deceptive mail to consumers, particularly elderly and vulnerable people. The defendants committed the crimes while working at data broker Epsilon Data Management LLC (Epsilon), which used transactional data collected from marketing clients to predict new “responsive buyers” using computer algorithms and a database of 100 million U.S. households. Evidence at trial showed that the defendants used Epsilon’s algorithms to predict and sell lists of consumers most likely to respond to the fraud schemes’ mailings. The defendants’ business unit worked with dozens of clients that sent scam letters promising large prizes or falsely personalized astrological mailings promising wealth.

Evidence at trial showed that the defendants’ crimes helped facilitate harmful fraud on the victims whose data they sold. For example, the defendants sold nearly 100 lists of names and addresses to a particular fraudster client who used the data to defraud more than 218,000 victims of more than $23.7 million. Epsilon’s data showed that many victims were repeatedly defrauded by this single scheme, including more than 12,000 victims who were defrauded more than 20times each. At trial, elderly victims and their adult children testified about the scam letters victims received falsely promising cash prizes.

“Today’s sentences should make clear that those who illegally use Americans’ personal information to facilitate fraud will face serious consequences.” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will investigate and prosecute individuals who use their access to our personal data to target vulnerable Americans for their own gain.”

“Far too often, we prosecute cases where criminals prey on the elderly and vulnerable,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “This sentence demonstrates that those who exploit the most vulnerable in our society for financial gain will be prosecuted and held accountable for their despicable actions.”

“The results of this collaborative investigation with the US Postal Inspection Service and its partners, has resulted in the arrests and convictions of two individuals who knowingly helped criminals target and scam vulnerable members of our community out of millions,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service (USPIS)’s Criminal Investigations Group. “This investigation demonstrates the continued commitment of the US Postal Inspections Service, to protect our most vulnerable communities. Our dedicated fraud teams allow us to expose and target criminals who try to hide behind these complex schemes. We will continue to collaborate with our law enforcement partners to ensure these individuals face justice.”

USPIS’ Transnational Elder Fraud Strike Force investigated this matter.

Senior Trial Attorney Alistair Reader and Assistant Director Rachael Doud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Rebecca Weber for the District of Colorado prosecuted the case. Senior Trial Attorney Ehren Reynolds and former Assistant U.S. Attorney Hetal Doshi for the District of Colorado also assisted in the case.

The defendants’ former employer, Epsilon resolved its criminal liability via a deferred prosecution agreement in 2021, paying $150 million in penalties and victim compensation. That victim compensation effort has returned $122 million to more than 200,000 victims of fraud schemes to which Epsilon provided data.

If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the Federal Trade Commission at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Source: United States Department of Justice Criminal Division

The Justice Department today announced charges in five cases addressing violence at New York City’s federal pretrial detention facility, the Metropolitan Detention Center, (MDC), located in Sunset Park, Brooklyn. These include charges against inmates for the murder of Uriel Whyte on June 7, the murder of Edwin Cordero on July 17, an attempted murder on April 27, and two violent assaults on Aug. 24 and 27. The defendants, all of whom were previously ordered detained at the MDC on other charges, will be arraigned in the coming days.

“Today’s charges demonstrate the Justice Department’s commitment to rooting out violence and criminal behavior at federal detention facilities — a critical component of our work to improve conditions across the Federal Bureau of Prisons,” said Deputy Attorney General Lisa Monaco. “Violence and contraband in our prisons are unacceptable, and the Department will hold accountable those who threaten the safety of anyone in our custody.”

“Violence will not be tolerated in our federal jails,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, in June and July of this year, two men detained at the MDC — Uriel Whyte and Edwin Cordero — were murdered by fellow inmates using makeshift weapons. Others at the MDC have been viciously assaulted by inmates, as alleged in the three other cases announced today. As the only federal jail in New York City, the MDC houses pretrial inmates accused of some of the most serious crimes in our region. No matter the reason for their detention, my office will work tirelessly to vindicate the rights of victims who suffer violence within the MDC and prosecute all those who choose to commit such heinous acts to the full extent of the law. Let these charges serve as a warning to those who would continue their criminal conduct behind bars, and anyone else who facilitates those crimes: your conduct will be exposed, and you will be held accountable.”

“Several inmates of Brooklyn’s Metropolitan Detention Center allegedly orchestrated a series of distinct violent assaults, including the murders of fellow inmates, Uriel Whyte and Edwin Cordero,” said Assistant Director in Charge James E. Dennehy of the FBI New York Field Office. “While this federal jail houses dangerous pretrial inmates, order and safety must remain paramount. Awaiting potential criminal charges is not a warranted justification to subject a detained individual to unnecessary attacks. May today’s indictments reflect the FBI’s determination to apprehend violent criminals, regardless of where the incidents may occur.”

The U.S. Attorney’s Office for the Southern District of New York and the Federal Bureau of Prisons provided assistance in the investigations.

United States v. Simpson and Thomas, 24-CR-360

Andrew Simpson and Devone Thomas, who were previously detained at the MDC on racketeering and robbery charges, respectively, were indicted by a grand jury for their roles in the June 7, murder of inmate Uriel Whyte.

On the morning of June 7, following a verbal dispute between Simpson and Whyte, cellmates Simpson and Thomas armed themselves with makeshift weapons and proceeded to engage in a series of two-on-one attacks against Whyte. The escalating violent attacks, which took place over a span of approximately 15 minutes, were committed against Whyte inside Simpson and Thomas’ shared cell, which served to hide their conduct from guards and surveillance cameras. The attacks culminated with Whyte suffering a severe stab wound to his neck, which severed his carotid artery. While Whyte was able to exit the cell and seek medical aid, he succumbed to his wounds shortly thereafter despite the efforts of onsite medical personnel and responding paramedics.

Simpson and Thomas are charged with murder in a federal detention facility, assault in a federal detention facility, obstruction of justice, and possession of contraband in prison for their roles in fatally stabbing Whyte at the MDC.

Assistant U.S. Attorneys Michael Maffei, Sophia Suarez, and Elizabeth D’Antonio for the Eastern District of New York are prosecuting the case.

United States v. Aziz, Bazemore and Santiago, 24-CR-380

On Sept. 24, a grand jury in the Eastern District of New York returned an indictment charging Jamaul Aziz, also known as bugz; James Bazemore, also known as TJ and RS; and Alberto Santiago, also known as Kom and dotcom, with four crimes related to their roles in the July 17 murder of Edwin Cordero, a fellow inmate at the MDC. Aziz and Santiago were both previously detained in the MDC for various serious gun and drug-trafficking crimes; Bazemore was detained for racketeering conspiracy, murder in-aid-of racketeering, use of a firearm resulting in death, and being a felon in possession of a firearm. All three have admitted their guilt in their underlying cases.   

In the afternoon of July 17 — following an earlier altercation between the victim and Santiago — Santiago, Aziz, and Bazemore met with each other intermittently over approximately half an hour. Santiago then reengaged with the victim — both of them armed with makeshift weapons — when shortly after Aziz and Bazemore, also armed, joined in. Aziz, Bazemore, and Santiago cornered the victim while swinging and stabbing at him. After the victim was able to escape, Bazemore continued to attack the victim, which allowed Santiago to approach the victim from behind and stab the victim in the center of his chest, perforating various parts of his heart. The victim then staggered forward, and Bazemore grabbed the victim and stabbed him in the back. Aziz and Bazemore next cornered the victim again next to a table and repeatedly stabbed, struck, and kicked the victim, including after he fell to the ground and tried to shield himself with the table. Staff members quickly responded to the commotion and delivered emergency medical care but were unable to save the victim.

Aziz, Bazemore, and Santiago are charged with premeditated murder within a federal detention facility, conspiracy to commit murder within a federal detention facility, assault resulting in serious bodily injury within a federal detention facility, and possession of one or more objects designed to be used as weapons within a prison.

Assistant U.S. Attorneys Irisa Chen and Elizabeth D’Antonio for the Eastern District of New York are prosecuting the case.

United States v. Luis Rivas, 24-CR-390

A grand jury indicted Luis Rivas today on attempted murder in a federal detention facility, assault in a federal detention facility, and possession of contraband in prison for his role in the April 27, assault of another inmate at the MDC. At the time of the attack, Rivas was detained at the MDC after being convicted of racketeering and assault in-aid-of-racketeering charges related to his membership in the gang La Mara Salvatrucha (MS-13). On the morning of April 27, Rivas and two other MS-13 members brutally attacked another inmate in their housing unit. Prior to the attack, the victim was sitting peacefully, relaxing with his feet up. Rivas then approached the victim, took a makeshift weapon from his waistband, and stabbed the victim with it. Two other MS-13 members then came to Rivas’ aid and assisted him in punching and stabbing the victim repeatedly. After the assault, the victim was taken to MDC’s medical unit and then to a hospital to treat the approximately 44 stab wounds to his back, chest, abdomen, right arm and legs.

Assistant U.S. Attorney Sean M. Sherman for the Eastern District of New York is prosecuting the case.

United States v. Bruce Silva and Hassan Elliott, 24-MJ-556

Bruce Silva and Hassan Elliott were charged by complaint with assault in a federal detention facility for their role in the Aug. 27, assault of another inmate at the MDC. At the time of the attack, Silva was detained at the MDC in connection with pending charges in the Southern District of New York, including racketeering conspiracy, narcotics conspiracy, firearms charges, attempted murder and assault in-aid-of racketeering in connection with his participation in multiple shootings in the Bronx, and other crimes related to his membership in “Dub City,” a street gang based in the Bronx, New York. Elliott was detained at the MDC at the time of the attack in connection with 29 pending charges in the Eastern District of Pennsylvania, including the murder in-aid-of racketeering of a Philadelphia Police Sergeant (who was seeking to execute search and arrest warrants for Elliott at the time of his murder), racketeering conspiracy, three other murders in-aid-of racketeering, multiple charges related to multiple other shootings, and related firearms and narcotics offenses related to his membership in “1700 Scattergood,” a violent drug trafficking organization operating in Northeast Philadelphia.

On the morning of Aug. 27, Silva and Elliott tried to attack another inmate in their housing unit. They took makeshift weapons from their waistbands and tried to stab and slash their intended victim. When a fourth inmate interceded, Silva stabbed the fourth inmate in the spine with a makeshift icepick, leaving the icepick protruding from the inmate’s back. Silva and Elliott then continued to try to attack both the stabbing victim and their original intended victim. After the assault, the stabbing victim was taken to the MDC’s medical unit and then to a hospital to remove the weapon from his spine and treat him.

Assistant U.S. Attorney Amanda Shami for the Eastern District of New York is prosecuting the case.

United States v. Leury Mojica, 24-MJ-559

Leury Mojica was charged by complaint with assaulting a federal officer. As alleged in the complaint, on Aug. 24, Mojica punched a corrections officer in the face after the victim offered Mojica breakfast. Mojica was originally detained at the MDC in connection with a Hobbs Act robbery charge, and also previously participated in a violent stabbing of another inmate, which conduct was taken into account in his May sentencing in the Southern District of New York.

Assistant U.S. Attorney David Berman for the Eastern District of New York is prosecuting the case.

An indictment or criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

The founder and chief executive officer of a California-based company that marketed stem cell-based products allegedly linked to 19 hospitalizations was sentenced today to 36 months in prison following his conviction under the Federal Food, Drug and Cosmetic Act.

John W. Kosolcharoen, 53, most recently of Orange County, California, pleaded guilty last month in the U.S. District Court for the Central District of California to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in federal custody on a separate, unconnected conviction. The court set a restitution hearing for Dec. 3.

According to court documents, beginning in 2016, Kosolcharoen created two companies, Liveyon LLC and Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.” In pleading guilty, Kosolcharoen admitted that he and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness. At sentencing, the government alleged that sales of Liveyon products generated approximately $21.6 million in revenue between 2017 and 2018.

“Misleading the public about the safety and effectiveness of purported cures and treatments is illegal,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will work with its law enforcement partners to prosecute individuals who market potentially dangerous products for personal gain.”

“Exploiting the hopes of patients suffering from serious illnesses is not merely greedy, it’s cruel,” said U.S. Attorney Martin Estrada for the Central District of California. “My office will continue to aggressively prosecute those who take advantage of victims’ fears and anxieties to line their pockets.”

In recent years, the Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce.

In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. The government alleged in court filings that an investigation by CDC, with the assistance of state and local health departments, found that the stem cell products were linked to the hospitalization of 19 patients in eight different states.

The FDA’s Office of Criminal Investigations, FBI, Amtrak Office of Inspector General, Defense Criminal Investigative Service, Department of Health and Human Services Office of Inspector General, Department of Labor Employment Benefits Security Administration and the California Department of Health Care Services investigated the case.

Assistant U.S. Attorneys Mark Aveis and David Chao for the Central District of California and Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Civil Division’s Consumer Protection Branch handled the case.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.