Month: March 2025

Source: United States Department of Justice Criminal Division

A federal jury convicted a Michigan businessman yesterday for not paying employment taxes and not filing his own individual income tax returns.

According to court documents and evidence presented at trial, Dale Thrush, of Farwell, owned and operated several automotive repair service locations and a gas station. Thrush was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those funds over to the IRS on behalf of his employees. From October 2014 through December 2016, Thrush withheld those funds from his employees’ wages but did not pay over the full amount of the withheld taxes to the IRS. Instead, Thrush used some of those funds to pay personal expenses, including the remodeling and construction costs for his wife’s business.

In addition, Thrush did not file his own individual income tax returns for 2013 through 2016 despite being legally obligated to do so.

Thrush was convicted of three counts of willful failure to pay payroll taxes and four counts of willful failure to file individual income tax returns. He was acquitted of seven counts of willful failure to pay payroll taxes.

Thrush is scheduled to be sentenced on July 17. He faces a maximum penalty of five years in prison for each count of not paying employment taxes and a maximum penalty of one year in prison for each count of not filing his individual income tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Mark McDonald and Evan Mulbry of the Tax Division are prosecuting the case.

Source: United States Department of Justice Criminal Division

A New York woman pleaded guilty today for her role in a deadly human smuggling conspiracy that left a family of four, including two children under the age of three, dead in the St. Lawrence River.

According to court documents, Janet Terrance, 45, of Hogansburg, conspired with five others to bring Indian and Romanian nationals into the United States for private financial gain. Co-conspirators Dakota Montour, 31, and Kawisiiostha Celecia Sharrow, 43, both of Akwesasne-Mohawk, New York, entered guilty pleas on Jan. 23, 2025, and Oct. 8, 2024, respectively.

“The defendant and her coconspirators — fueled by greed, indifference, and recklessness — smuggled aliens via vehicle and boat across the U.S.-Canada border in dangerous weather conditions,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “They endangered the lives of two small children and their parents for profit, resulting in the family’s tragic deaths. Dismantling transnational criminal organizations that smuggle people into and throughout the United States is a top priority for the Department of Justice.”

“A family of four died because a smuggling organization put them in harm’s way for profit,” said Acting U.S. Attorney Daniel Hanlon for the Northern District of New York. “Our top priority is the prosecution and dismantling of smuggling organizations. By securing our northern border, we aim to avoid more tragedies like this one.”

According to court documents, Terrance, Montour, and Sharrow worked with a human smuggling organization (HSO) on the Akwesasne Mohawk Indian Reservation (AMIR) and in Cornwall, Ontario, Canada, that smuggled aliens from mainland Cornwall to Cornwall Island, and then into northern New York. The HSO routinely smuggled aliens from various countries into the United States. The HSO arranged for aliens to stay in local motels in Cornwall before transporting the aliens to the AMIR to stage the aliens on the banks of the St. Lawrence River. Members of the HSO would then transport the aliens by boat across the St. Lawrence River to later be driven into New York.

Terrance, Montour, and Sharrow admitted in their plea agreements that in late March 2023, the co-conspirators were employed to illegally transport a Romanian family of four — mother, father, one-year-old boy, and two-year-old girl — from Cornwall into New York. The children were Canadian citizens. Both Montour and Terrance admitted that they were hired to transport the Romanian family to the AMIR from mainland Cornwall.

Montour admitted that he was aware of the dangerous weather conditions on March 29, 2023 — high winds, freezing temperatures, and limited visibility — yet the family of four was loaded into a small boat by another co-conspirator to cross the St. Lawrence River. The boat capsized, and the family died as a result.

“The tragic deaths of two innocent, unknowing toddlers and their parents underscores the devastating impacts of alien smuggling,” said Special Agent in Charge Erin Keegan of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Buffalo. “Janet Terrance and her co-conspirators moved forward with this smuggling attempt despite the dangerous conditions and sheer illegality of the act, placing these victims in the situation that ultimately killed them. ICE HSI Massena is committed to enforcing U.S. laws at our border to protect the safety and the security of our communities.”

“The Akwesasne Mohawk Police Service is dedicated to keeping our community safe,” said Acting AMPS Chief Ranatiiostha Swamp. “By working closely with Homeland Security on this investigation, we are enhancing efforts to combat human smuggling and cross-border illegal activity, ensuring the safety and security of our territory.”

Montour pleaded guilty to one count of conspiracy to commit alien smuggling, four counts of alien smuggling for financial gain, and three counts of alien smuggling resulting in death. Montour faces a maximum penalty of 10 years in prison on each of the conspiracy and alien smuggling for financial gain counts and a mandatory penalty of life in prison on the alien smuggling resulting in death counts.

Sharrow and Terrance pleaded guilty to two counts and one count of conspiracy to commit alien smuggling, respectively, and each to four counts of alien smuggling for financial gain. They each face a maximum penalty of 10 years in prison on the conspiracy counts and two of the alien smuggling for financial gain counts and a mandatory minimum of five years and maximum penalty of 15 years in prison on two of the alien smuggling for financial gain counts.

A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol, U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center, New York State Police, Canada Border Services Agency, AMPS, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police, and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant support with foreign legal assistance requests.

Trial Attorney Jenna E. Reed of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.

The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program 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 coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

Source: United States Department of Justice 2

A New York woman pleaded guilty today for her role in a deadly human smuggling conspiracy that left a family of four, including two children under the age of three, dead in the St. Lawrence River.

According to court documents, Janet Terrance, 45, of Hogansburg, conspired with five others to bring Indian and Romanian nationals into the United States for private financial gain. Co-conspirators Dakota Montour, 31, and Kawisiiostha Celecia Sharrow, 43, both of Akwesasne-Mohawk, New York, entered guilty pleas on Jan. 23, 2025, and Oct. 8, 2024, respectively.

“The defendant and her coconspirators — fueled by greed, indifference, and recklessness — smuggled aliens via vehicle and boat across the U.S.-Canada border in dangerous weather conditions,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “They endangered the lives of two small children and their parents for profit, resulting in the family’s tragic deaths. Dismantling transnational criminal organizations that smuggle people into and throughout the United States is a top priority for the Department of Justice.”

“A family of four died because a smuggling organization put them in harm’s way for profit,” said Acting U.S. Attorney Daniel Hanlon for the Northern District of New York. “Our top priority is the prosecution and dismantling of smuggling organizations. By securing our northern border, we aim to avoid more tragedies like this one.”

According to court documents, Terrance, Montour, and Sharrow worked with a human smuggling organization (HSO) on the Akwesasne Mohawk Indian Reservation (AMIR) and in Cornwall, Ontario, Canada, that smuggled aliens from mainland Cornwall to Cornwall Island, and then into northern New York. The HSO routinely smuggled aliens from various countries into the United States. The HSO arranged for aliens to stay in local motels in Cornwall before transporting the aliens to the AMIR to stage the aliens on the banks of the St. Lawrence River. Members of the HSO would then transport the aliens by boat across the St. Lawrence River to later be driven into New York.

Terrance, Montour, and Sharrow admitted in their plea agreements that in late March 2023, the co-conspirators were employed to illegally transport a Romanian family of four — mother, father, one-year-old boy, and two-year-old girl — from Cornwall into New York. The children were Canadian citizens. Both Montour and Terrance admitted that they were hired to transport the Romanian family to the AMIR from mainland Cornwall.

Montour admitted that he was aware of the dangerous weather conditions on March 29, 2023 — high winds, freezing temperatures, and limited visibility — yet the family of four was loaded into a small boat by another co-conspirator to cross the St. Lawrence River. The boat capsized, and the family died as a result.

“The tragic deaths of two innocent, unknowing toddlers and their parents underscores the devastating impacts of alien smuggling,” said Special Agent in Charge Erin Keegan of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) Buffalo. “Janet Terrance and her co-conspirators moved forward with this smuggling attempt despite the dangerous conditions and sheer illegality of the act, placing these victims in the situation that ultimately killed them. ICE HSI Massena is committed to enforcing U.S. laws at our border to protect the safety and the security of our communities.”

“The Akwesasne Mohawk Police Service is dedicated to keeping our community safe,” said Acting AMPS Chief Ranatiiostha Swamp. “By working closely with Homeland Security on this investigation, we are enhancing efforts to combat human smuggling and cross-border illegal activity, ensuring the safety and security of our territory.”

Montour pleaded guilty to one count of conspiracy to commit alien smuggling, four counts of alien smuggling for financial gain, and three counts of alien smuggling resulting in death. Montour faces a maximum penalty of 10 years in prison on each of the conspiracy and alien smuggling for financial gain counts and a mandatory penalty of life in prison on the alien smuggling resulting in death counts.

Sharrow and Terrance pleaded guilty to two counts and one count of conspiracy to commit alien smuggling, respectively, and each to four counts of alien smuggling for financial gain. They each face a maximum penalty of 10 years in prison on the conspiracy counts and two of the alien smuggling for financial gain counts and a mandatory minimum of five years and maximum penalty of 15 years in prison on two of the alien smuggling for financial gain counts.

A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI Massena engaged in an extensive years-long investigation of the case, with assistance from the U.S. Border Patrol, U.S. Customs and Border Protection (CBP), HSI’s Human Smuggling Unit in Washington, D.C., CBP’s National Targeting Center, New York State Police, Canada Border Services Agency, AMPS, St. Regis Mohawk Tribal Police Department, Ontario Provincial Police, Sûreté du Québec, St. Lawrence County Sheriff’s Department, Royal Canadian Mounted Police, and the Cornwall Police Service. The Justice Department’s Office of International Affairs provided significant support with foreign legal assistance requests.

Trial Attorney Jenna E. Reed of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Jeffrey Stitt for the Northern District of New York are prosecuting the case.

The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program 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 coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

Source: United States Department of Justice Criminal Division

Gerald Congdon, M.D., of Pawleys Island, South Carolina; Gbenga Aluko, M.D., of Charlotte, North Carolina; and Anup Banerjee, M.D., of Gastonia, North Carolina, and their medical practices; as well as Curis Healthcare Inc., of Chicago, Illinois, Omar Hussain, of South Miami, Florida, and Saeed Medical Group Ltd. doing business as Alliance Immediate and Primary Care of Chicago, Illinois, agreed to pay a total of $1,913,808 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Department of Justice’s investigations of other participants in the alleged schemes.

“We will continue to hold accountable individuals and entities that accept money to steer federal health care beneficiaries to a particular laboratory for testing,” said Principal Deputy Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Kickbacks can undermine the integrity of taxpayer-funded health care programs, distort medical decisions, and result in unnecessary services.”

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The settlements announced today resolve allegations that health care providers received kickbacks in return for their referrals to a laboratory in Anderson, South Carolina, and that a marketer and his marketing company received kickbacks from that South Carolina laboratory to arrange for laboratory testing referrals, in violation of the Anti-Kickback Statute. The kickbacks allegedly resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.

• Dr. Gerald Congdon, Coastal Urgent Care LLC, and Coastal Wellness Center LLC. Dr. Congdon and his medical practices in Pawleys Island and Myrtle Beach, South Carolina, agreed to pay $400,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
• Dr. Gbenga Aluko and Eagle Medical Center PC. Dr. Aluko and his medical practice in Charlotte, North Carolina, agreed to pay $250,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental, phlebotomy, and toxicology payments from the South Carolina laboratory in return for ordering testing.
• Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A. Dr. Banerjee and his medical practice in Gastonia, North Carolina, agreed to pay $206,000 to resolve allegations that from April 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
• Omar Hussain and Curis Healthcare Inc. Hussain and his marketing company agreed to pay $817,808 to resolve allegations that from April 2020 to August 2021, Hussain and his company received commissions from the South Carolina laboratory as independent contractors based on the volume and value of the Medicare and TRICARE referrals for laboratory testing that they arranged for and recommended.
• Saeed Medical Group Ltd., Omar Hussain, and Curis Healthcare Inc. Saeed Medical Group and Hussain and his marketing company agreed to pay $240,000 to resolve allegations that from April 2020 to August 2021, Saeed Medical Group received thousands of dollars in remuneration in the form of cash payments from Hussain and his company in return for ordering testing from the South Carolina laboratory.

“Integrity must be the standard in our health care system,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Kickback schemes divert funds and focus away from patients and their medical needs.”

“The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “These settlements should serve as a reminder that the FBI and its partners are committed to holding medical practitioners accountable for kickbacks.”

“Kickback schemes undermine medical decision-making and jeopardize the integrity of federally funded health care programs,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our commitment is to safeguard taxpayer-funded health care and the patients who rely on it, and we will rigorously pursue any allegations of False Claims Act violations.”

“The trust of the American taxpayer and the wellbeing of our service members are undermined when laboratories and physicians engage in collusive financial relationships,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners to bring to justice medical providers who illegally enrich themselves by prioritizing kickbacks over patient care.”

The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, and the FBI. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina. The United States previously resolved allegations that physicians in South Carolina, North Carolina, and Texas received kickbacks from the same South Carolina laboratory.

The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

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