Month: November 2024

Source: United States Department of Justice Criminal Division

Two Florida men were sentenced today for their involvement in the “Note Program,” a tax fraud scheme. Jasen Harvey, of Tampa, was sentenced to 48 months in prison and Christopher Johnson, of Orlando, was sentenced to 37 months in prison for conspiring to defraud the United States.

According to court documents and statements made in court, from 2015 to 2018, Johnson and Harvey conspired to promote a scheme in which Harvey and others prepared tax returns for clients that claimed that large, nonexistent income tax withholdings had been paid to the IRS on behalf of clients and sought large refunds based on those purported withholdings. The conspirators charged clients fees and required the clients to pay a share of the fraudulently obtained refunds to them.

Overall, the defendants claimed over $3 million in fraudulent refunds on their clients’ returns, of which the IRS paid about $1.5 million.

In addition to the terms of imprisonment, U.S. District Judge Roy B. Dalton Jr. for the Middle District of Florida ordered Johnson to serve three years of supervised release and to pay $864,117.42 in restitution to the United States. Judge Dalton Jr. ordered Harvey to serve three years of supervised release and pay $785,858.42 in restitution.

Co-defendant Arthur Grimes is scheduled to be sentenced on Jan. 13, 2025.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida prosecuted the case.

Source: United States Department of Justice Criminal Division

The Justice Department’s Civil Rights Division in collaboration with the University of the District of Columbia Law School, hosted an event yesterday commemorating the 15th anniversary of the Shepard-Byrd Hate Crimes Prevention Act. Several hundred attended the event in-person and online.

The Shepard-Byrd Act is a landmark federal statute passed in 2009 that allows federal criminal prosecution of hate crimes motivated by actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity or disability. Yesterday’s event paid tribute to the lives of James Byrd Jr. and Matthew Shepard, uplifted the voices of hate crime survivors, recognized ongoing efforts to combat hate crimes and hate incidents and called for the continued expansion of victim services to address the needs of survivors and their communities.  

“Fifteen years ago, the Hate Crimes Prevention Act gave the Justice Department critical tools that have made us more effective as we work to counter hate,” said Principal Deputy Associate Attorney General Benjamin C. Mizer. “We know that there is more work to be done, and the Department will keep working tirelessly to ensure that every person feels safe in their communities.”

In her opening remarks, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division expressed immense gratitude to those whose years of advocacy and activism made the passage of the Shepard-Byrd Act possible 15 years ago. She underscored the work that still needs to be done in prosecuting and preventing hate crimes, as recent statistics from the FBI indicate that the incidence of hate crimes is rising. Racial bias remained the most significant motivator for hate crimes in 2023, and anti-Black hate crimes continued to represent the largest portion of race-motivated hate crimes.

“The Matthew Shepard and James Byrd Hate Crimes Prevention Act is one of our most powerful tools in efforts to combat violent bias-motivated hate crimes in America today,” said Assistant Attorney General Clarke. “We know that prosecutions alone will not eliminate hate, root and branch, and that public education, training and prevention efforts are just as necessary. Hate mongers fueled with racist, antisemitic, Islamophobic, anti-LGBTQI or xenophobic motivations have no place in America today. Rest assured, we will keep moving towards an inclusive and more peaceful America while holding accountable those responsible for senseless, vile, and hate-filled crimes.”

Dennis and Judy Shepard, the parents of Matthew Shepard, joined Assistant Attorney General Clarke for a fireside chat, and Louvon Byrd Harris, sister of James Byrd Jr., provided recorded remarks. The Shepards spoke about their son’s tragic death and his legacy—the work of the Matthew Shepard Foundation. Ms. Harris spoke of her brother’s brutal murder and the family’s continued work to promote healing through the Byrd Foundation.

Also on the program, U.S. Attorney Matthew M. Graves for the District of Columbia highlighted the district’s hate crimes enforcement work and his office’s longstanding commitment to working with local community organizations through the district’s Hate/Bias Crime Task Force.

“The murders of James Byrd and Matthew Sheppard rocked our collective conscience,” said U.S. Attorney Matthew M. Graves for the District of Columbia. “When victims are targeted because of their identities, it can put those with identities like the victims on edge, wondering if they will be next.  As we mark the anniversary of the Shepard-Byrd Act, our Office reaffirms its commitment to hold accountable those who commit hate- and bias-related crimes.”

The trial team that prosecuted U.S. v. Daqua Ritter explained how they secured the first guilty verdict in trial under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for violence against a transgender person — the brutal murder of Dime Doe, a Black transgender woman in South Carolina. Ritter was sentenced to life in prison.

Taylor Dumpson-Lippincott, an attorney and former student government body president at American University, shared her experience as the target of racially- and gender-motivated hate and cyber-harassment. She explained how her experience as a survivor fueled her passion to combat hate-based violence and threats, especially on school campuses.

The program also featured voices of survivors and their families. In 2017, 1st Lt. Richard W. Collins III was murdered in an unprovoked attack on the campus of the University of Maryland, College Park, by a follower of a white nationalist hate-group. Parents Dawn and Richard Collins described how in the years since their son’s murder, they have led efforts at HBCUs and beyond to educate the public about the proliferation of hate groups targeting majority-white colleges and universities for recruitment.

On the panel with the Collins family, Daphne Felten-Green shared examples of her work with the Justice Department’s Community Relations Service educating colleges and universities in conjunction with the Divided Communities Project at the Ohio State Moritz College of Law. Benny Del Castillo of Network for Victim Recovery DC spoke of local efforts at survivor-centered responses to hate crimes.

For more information on the Justice Department’s efforts to combat hate and hate crimes, see the updated Hate Crimes Fact Sheet.

Source: United States Department of Justice Criminal Division

The owner and operator of a Texas laboratory was charged yesterday in connection with his role in a $79 million respiratory pathogen panel (RPP) testing fraud scheme.

According to court documents, Osman Syed, 34, also known as Syed Osman, an Indian national, caused BioDX Labs LLC (BioDX) to submit more than $79 million in fraudulent claims to Medicare and Texas Medicaid for RPP tests that were not provided and were medically unnecessary. Osman used the personal identifying information of a physician, without the physician’s knowledge or consent, to cause the submission of millions of dollars in claims to Medicare and Medicaid for RPP tests for beneficiaries and recipients, even though the physician had no prior relationship with the beneficiaries and recipients, was not treating the beneficiaries and recipients for respiratory symptoms, and did not use the tests to treat the beneficiaries and recipients. To conceal that BioDX did not perform the tests as billed, Osman falsely represented that BioDX used reference laboratories to perform its testing. Osman and his co-conspirators laundered the proceeds of the fraudulent scheme by transferring substantial sums to bank accounts abroad, including accounts in China, Hong Kong, Turkey, Greece, and Switzerland. In connection with the charges, the government seized over $15 million in cash.

Osman is charged with three counts of health care fraud, conspiracy to engage in money laundering, and three counts of money laundering. If convicted, he faces a maximum penalty of 10 years in prison on each count.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Special Agent in Charge Jason E. Meadows of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Dallas Regional Office; Special Agent in Charge Travis Pickard of the Homeland Security Investigations (HSI) Dallas Field Office; Special Agent in Charge Craig Wolf of the U.S. Secret Service (USSS) Dallas Field Office; Chief William Marlowe of the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU); and Acting Special Agent in Charge P. J. O’Brien of the FBI Dallas Field Office made the announcement.

HHS-OIG, HSI, USSS, MFCU, and FBI are investigating the case.

Assistant Chief Brynn Schiess 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, 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.

An indictment 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

A former Georgia poll worker was indicted yesterday for allegedly mailing a letter that threatened to bomb a polling place and harm poll workers and for lying to the FBI during the investigation.

Nicholas Wimbish, 25, of Milledgeville, was previously arrested pursuant to a criminal complaint on Nov. 4 and made his initial appearance in the Middle District of Georgia on Nov. 5.

According to the indictment, Wimbish was serving as a poll worker at the Jones County Elections Office on Oct. 16, when he had a verbal altercation with a voter. Later that evening, Wimbish allegedly conducted online research to determine what information about himself would be publicly available. The following day, Wimbish allegedly mailed a letter addressed to the Jones County Elections Superintendent, purportedly from a “Jones County Voter.”

The letter was allegedly drafted to make it appear as if it came from the voter, such as by stating that Wimbish had “give[n] me hell” and that Wimbish was “conspiring votes” and “distracting voters from concentrating.” The letter threatened that Wimbish and others “should look over their shoulder,” that “I know where they go,” that “I know where they all live because I found home voting addresses for all them,” and that the “young men will get beatdown if they fight me” and “will get the treason punishment by firing squad if they fight back.” Further, the letter allegedly threatened to “rage rape” the “ladies” and warned them to “watch every move they make and look over their shoulder.” The letter concluded with a handwritten note, “PS boom toy in early vote place, cigar burning, be safe.”

The indictment alleges that Wimbish falsely told the FBI that he believed the Jones County voter he interacted with sent the letter and that he had not conducted online research on himself. The letter was found on Wimbish’s computer.

Wimbish is charged with mailing a bomb threat, conveying false information about a bomb threat, mailing a threatening letter, and making false statements to the FBI. If convicted, he faces a maximum penalty of 10 years in prison on the mailing a bomb threat count and five years in prison on each of the mailing a threatening letter, conveying false information, and making false statements counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Peter D. Leary for the Middle District of Georgia; and Acting Special Agent in Charge Sean Burke of the FBI Atlanta Field Office made the announcement.

The FBI Atlanta Field Office is investigating the case.

Trial Attorney Jacob R. Steiner of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Will R. Keyes for the Middle District of Georgia are prosecuting the case.

This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Three years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.

Under the leadership of Deputy Attorney General Monaco, the task force is led by PIN and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.

To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.

An indictment 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

Two Honduran men were convicted on Monday by a federal jury for their roles in a scheme to illegally smuggle Honduran nationals into the United States.

According to court documents and evidence presented at trial, Hennessy Devon Cooper Zelaya, 30, and Rudy Jackson Hernandez, 37, conspired with at least six others to bring Honduran nationals from Honduras to the United States. In February 2022, the defendants attempted to illegally bring 23 Honduran migrants from Utila, Honduras, to Cocodrie, Louisiana, aboard the M/V Pop, a 65-foot Sportfishing vessel. Most of the migrants each paid several thousand dollars to the co-conspirators to be smuggled into the United States. At some point during the voyage, the M/V Pop developed engine trouble and lost power in the Gulf of Mexico. The co-conspirators chartered a boat to bring fuel to the disabled vessel so that it could complete its journey into the United States. Before the chartered boat reached the disabled vessel, the U.S. Coast Guard interdicted the vessel approximately 75 miles off the coast of Louisiana and towed it to shore.

For almost a year, Cooper Zelaya and Jackson Hernandez participated in the scheme to bring Honduran migrants from Honduras to the United States via two vessels: the Masita III and the M/V Pop. Once the migrants reached the United States, the co-conspirators placed some of them in factories and other businesses, knowing that the migrants lacked authorization to enter, remain, or work in the United States.

Cooper Zelaya and Jackson Hernandez were convicted of one count of conspiracy to unlawfully bring aliens to the United States for commercial advantage and private financial gain and two counts of attempting to bring aliens to the United States for commercial advantage and private financial gain. They face a maximum penalty of 10 years in prison on each count. 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.

The lead defendant in the case, Carl Allison, 47, previously pleaded guilty in December 2023 to conspiracy to unlawfully bring aliens to the United States for financial gain and conspiracy to distribute five kilograms or more of cocaine hydrochloride. Three additional co-conspirators, all Honduran nationals, pleaded guilty earlier last year for their roles in the scheme. Darrel Martinez, 41, and Josue Flores-Villeda, 36, pleaded guilty to the same charges as Allison. Lenord Cooper, 40, pleaded guilty to conspiracy to aid and assist aliens to enter the United States unlawfully and attempting to bring aliens to the U.S. for commercial advantage and private financial gain.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; and Special Agent in Charge Eric DeLaune of the Homeland Security Investigations (HSI) New Orleans Field Office made the announcement.

The HSI Houma, Louisiana Field Office investigated the case, with assistance from the HSI Pittsburgh Field Office, HSI Atlanta Field Office, and Louisiana Bureau of Investigation. The U.S. Coast Guard Investigative Service, U.S. Customs and Border Protection Air and Marine Operations, Louisiana State Police, Pennsylvania State Police, North Huntington Township Police, and Terrebonne Parish Sheriff’s Office also provided valuable assistance. The Justice Department’s Office of Overseas Prosecutorial Development, Assistance, and Training in Honduras provided substantial assistance.

Deputy Chief Rami Badawy and Trial Attorney Kate Wagner of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Carter Guice of the General Crimes Unit for the Eastern District of Louisiana are prosecuting the case.

This case is the result of the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador and Honduras. The initiative was expanded to Colombia and Panama to combat human smuggling in the Darién in June 2024. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border including the Southern District of California, Districts of Arizona and New Mexico and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by HRSP and supported by the Office of Prosecutorial Development, Assistance and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, Drug Enforcement Administration and other partners. To date, JTFA’s work has resulted in over 325 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 272 U.S. convictions; more than 210 significant jail sentences imposed; and substantial seizures and forfeiture of assets and contraband including more than a million dollars in cash, real property, vehicles, firearms and ammunition, and drugs; along with multiple indictments and precedent setting extraditions of foreign leadership targets.

This case is also supported by the Organized Crime and Drug Enforcement Task Forces (OCDETF) and the Extraterritorial Criminal Travel Strike Force (ECT) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. The ECT program is a partnership between the Justice Department’s Criminal Division and HSI, and focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT also coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.