Maryland Man Sentenced for Role in Scheme to Steal More Than $1.5M from Victims Throughout the United States

Source: United States Department of Justice Criminal Division

A Maryland man was sentenced today to 30 years in prison in Baltimore federal court for conspiracy to commit bank fraud.

According to court documents, Theodore Sapperstein, age 67, formerly of Pikesville, and his coconspirators unlawfully debited money from the bank accounts of unknowing victims throughout the United States without their authorization by creating shell companies and falsely representing to banks that debits against consumer-victims’ bank accounts were authorized as payment for services allegedly provided by those shell companies. To both conceal and continue conducting unauthorized debits, the scheme’s shell companies generated “micro debits” against other bank accounts controlled and funded by the scheme. The micro debits artificially lowered shell companies’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the scheme’s banking relations. Sapperstein facilitated the scheme’s use of fraudulent micro debits and helped broker payment processing services for the scheme, securing a payment processor whose company processed the unauthorized debits. The scheme caused more than $1.5 million in loss to victims throughout the United States.

“Those who knowingly participate in schemes to use personal financial information about American consumers to steal money from their accounts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to investigating and prosecuting individuals who facilitate such schemes.”

“For those who think they can take the easy road to financial gains by stealing money people have worked hard for, the U.S. Postal Inspection Service wants you to know we will hold you accountable for the pain and losses you cause,” said Inspector in Charge Eric Shen of U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Today’s sentencing of Mr. Sapperstein along with others who knowingly participated in these schemes is the culmination of relentless teamwork by law enforcement to bring these criminals to justice and continue to vigilantly protect the American public.”

“My office is committed to ferreting out and punishing the predatory conduct of white collar fraudsters who utilize, and often hide behind, shell companies and phony accounting and bookkeeping practices to steal money from unsuspecting victims,” said U.S. Attorney Erek L. Barron for the District of Maryland.

In July, Shoaib Ahmad of Canada was charged in the Central District of California with conspiracy to commit bank and wire fraud for his role in the scheme. That matter remains ongoing.

According to court documents, the scheme is related to a longer-running scheme that has been the subject of multiple cases filed in Los Angeles, San Diego and Las Vegas. In May 2023, a grand jury in Los Angeles returned an indictment in United States v. Courdy, et al. charging 14 defendants with RICO conspiracy and other charges in the Central District of California. On July 30, a grand jury in Los Angeles returned an indictment in United States v. LoConti, et al. charging six additional scheme participants with RICO conspiracy and other charges. These indictments allege that the defendants and associates debited consumer-victims’ bank accounts without authorization and used shell entities and “micro debits” to conceal the activity from banks. The “Information for Victims in Large Cases” section on the Consumer Protection Branch’s website contains additional information on United States v. Courdy, et al. In December 2023, scheme participant Luis Ramirez pleaded guilty to conspiracy to commit access device fraud in federal court in San Diego. On May 22, Ramirez was sentenced to 51 months in prison for the access device conspiracy, with 24 months to run concurrently to his sentence in a separate case. A related scheme participant, Harold Sobel, pleaded guilty to bank fraud conspiracy in federal court in Las Vegas. In December 2022, Sobel was sentenced to 42 months in prison.

USPIS is investigating the case.

Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Darryl Tarver for the District of Maryland are prosecuting the case against Sapperstein, with assistance from the U.S. Attorney’s Office for the Central District of California.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer complaints can be filed with the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

Company Sentenced to Pay $6.5M Criminal Fine for Bid Rigging in Michigan Asphalt Industry

Source: United States Department of Justice Criminal Division

A Michigan company was sentenced today to pay a criminal fine of $6.5 million for its role in conspiracies to rig bids for asphalt paving services contracts in the State of Michigan.

Pontiac-based Asphalt Specialists LLC pleaded guilty for its conduct on Jan. 30. According to court documents and proceedings, the company participated in a conspiracy with Al’s Asphalt Paving Company Inc. (Al’s Asphalt) and its employees from March 2013 through November 2018. The company also participated in a separate conspiracy with F. Allied Construction Company Inc. (Allied) and its employees from July 2017 through May 2021.

Each conspiracy operated in much the same way: the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators had already decided among themselves who would win the contracts.

“When companies choose to cheat rather than compete, they can expect to pay substantial, punitive criminal fines,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and its law enforcement partners will not hesitate in our shared mission to ensure those who violate the antitrust laws do not benefit from their crimes, particularly when those crimes affect critical infrastructure for our country.”

“The sentence imposed today should serve as a significant deterrent for anyone who chooses corporate greed over open and fair competition for transportation projects,” said Acting Special Agent in Charge Anthony Licari Department of Transportation Office of Inspector General (DOT-OIG), Midwestern Region. “Our commitment to working with our law enforcement partners and the Justice Department’s Antitrust Division is unwavering as we continue to pursue and uncover corrupt conduct and hold companies that intentionally engage in wrongdoing accountable.”

“Asphalt Specialist LLC’s sentence reflects the seriousness of conduct that undermines the competitive process,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service (USPS) Office of the Inspector General. “This sentencing represents a win for the USPS and for all law enforcement agencies who work together to protect the competitive process and to ensure that justice is served.”

Asphalt Specialists LLC is one of three companies that have been charged as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry. Al’s Asphalt pleaded guilty and was sentenced to pay a fine of $795,661.81 on July 31. Allied also pleaded guilty and is awaiting sentencing. Six individuals also have been charged as part of the investigation.

DOT-OIG and USPS OIG investigated the case.

The Antitrust Division’s Chicago Office is prosecuting the case.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258 or visit www.justice.gov/atr/report-violations.

National Constitutional Militia Member Sentenced for Illegal Gun Possession

Source: United States Department of Justice Criminal Division

A convicted felon and member of an anti-government extremist group who took part in online discussions to kidnap and attack federal officials on Thanksgiving Day 2022 was sentenced to prison for illegally possessing firearms during a trip to Georgia.

Joshua Colston, 50, of Corinth, Mississippi, was sentenced today to serve 48 months in prison followed by three years of supervised release. Colston previously pleaded guilty to one count of possession of a firearm by a convicted felon on Oct. 18, 2023.

According to court documents and other information presented in court, the FBI learned that Colston and others participated in discussions on a Zello chat channel titled “NCM Leadership.” Zello is an encrypted push-to-talk application used on cellular phones. “NCM” stands for National Constitutional Militia, an anti-government extremist organization. Colston and other NCM members discussed a plan to kidnap or attack elected federal officials on Thanksgiving Day 2022. Ultimately, the Thanksgiving Day plan was never developed due to the group’s lack of resources and the poor health of the members.

FBI agents took Colston into custody in Fitzgerald, Georgia, on Dec. 14, 2022, where Colston went to purchase horses. He told agents that he planned to travel horseback across the country for several years, and he was preparing to go “off the grid.” Colston, who has prior felony convictions, was found to be in illegal possession of five firearms: a 9mm semiautomatic pistol, .40 semiautomatic pistol, .22 semiautomatic rifle, semiautomatic shotgun and .44 lever-action rifle. The semiautomatic rifle was reported stolen in Alcorn County, Mississippi. In addition to the firearms, Colston had a bulletproof vest and more than 3,500 rounds of ammunition, including armor-piercing rounds, in his vehicle. FBI believed that Colston had training in explosives. Colston has prior state convictions in Texas for felony theft and felony criminal mischief. It is illegal for a convicted felon to possess firearms.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Peter D. Leary for the Middle District of Georgia and Executive Assistant Director Robert Wells of the FBI’s National Security Branch made the announcement.

The FBI and Ben Hill County Sheriff’s Office investigated the case.

Deputy Criminal Chief Will Keyes for the Middle District of Florida prosecuted the case with assistance from the National Security Division’s Counterterrorism Section.

Defense News: Top Naval Safety Experts Convene to Enhance Incident Reporting

Source: United States Navy

In response to overwhelming user feedback from the first RMI review held June 2023, NAVSAFECOM hosted a second, comprehensive two-day RMI review to address critical issues and enhance the platform. A total of 310 comments were meticulously analyzed, highlighting specific deficiencies and usability issues encountered by naval enterprise personnel while interacting with the RMI system. This in-depth analysis sought to pinpoint areas for improvement within the platform and implement changes to elevate the overall user experience.

Since August 2020, NAVSAFECOM has launched a series of modules to enhance the safety reporting and safety management systems within the RMI framework. This expanded system encompasses four key areas: streamlined incident reporting (SIR), analysis and dissemination, safety program management and a single point of entry.

RMI is revolutionizing naval safety by centralizing incident reporting, safety program management and analysis. Built upon the robust AFSAS foundation, shared by four out of five military services, RMI streamlines the reporting process enabling data-driven insights to foster mishap prevention strategies. By replacing the outdated WESS and expanding capabilities across the Navy and Marine Corps, RMI fosters a safer environment for the entire Department of Defense.

Chris Tarsa, NAVSAFECOM executive director, opened the meeting with an RMI overview, noting the approximately 137 minimum data elements required in RMI that are mandated by the Department of Defense (DoD) and the continuous improvement cycle with the phased release of RMI’s safety program management modules or capabilities.

“We’re committed to continuous improvement based on direct customer feedback,” said Tarsa. “We listen, learn and evolve.”

The conference featured a comprehensive discussion on RMI issues previously submitted by stakeholders to NAVSAFECOM. Feedback encompassed various RMI areas, including hazard abatement, analytics, inspections, and training. The group explored potential solutions for each comment, either agreeing to implement or assigning follow-up actions to NAVSAFECOM or an integrated project team.

Common concerns included RMI’s complexity, the need for additional data input options, redundant fields, and unclear sections. While some suggestions conflicted with DoD mandates, others were resolved on the spot through explanation or commitment to implement system improvements.

For the attendees, the meeting was an opportunity to hear issues other users had encountered, how they addressed problems, and that NAVSAFECOM was listening and receptive to their concerns.

“By providing a space for open dialogue, NAVSAFECOM demonstrated that they are not only aware of user challenges but genuinely interested in finding solutions,” according to Krystyna Eaker, RMI Requirements manager. “This review was a valuable platform for users to share experiences and feel heard by NAVSAFECOM.”

WESS was the first of four safety reporting systems that RMI was designed to replace to provide improved enterprise transparency. The other systems are the Enterprise Safety Applications Management System (ESAMS), Medical Mishap and Compensation (MMAC), and Portsmouth Naval Shipyard Occupational Accident and Illness Reporting System (POAIRS).

To date, the following RMI Safety Program modules are complete: Inspections, Hazard Abatement, Training and Confined Space. The remaining modules are scheduled for delivery through fiscal 2027: Job Hazard Analysis, Medical Surveillance, Self-assessment, Respiratory Protection, Fall Protection, Operational Risk Management and Safety Committee.

Once fully implemented, the modules will help ensure that all safety information is captured to help support hazard mitigation and overall mishap prevention efforts.

The goal of the RMI system and the meeting is to prevent mishaps by improving data collection, transparency, analysis, and the overall safety culture within the Navy.

“The real goal of this program is mishap prevention,” said Tarsa. “Learning is lost when we don’t really understand the factors that lead up to an event.”

Defense News: Walter Reed Offers Partial Hospitalization Program for Mental Health Care

Source: United States Navy

Walter Reed offers the Partial Hospitalization Program (PHP), providing support and skills to assist people in managing their behavioral health challenges while living at home.
The program offers a structured treatment setting with a scheduled list of activities during the day, and participants returning to their homes at night, explained Navy Lt. (Dr.) Meghan Quinn, a psychiatrist, PHP chief and assistant chief of Navy Graduate Medical Education at Walter Reed.
PHP patients have no acute safety risk for themselves or others, Quinn explained. They can function at a higher level when they stay in contact with their loved ones (not housed separately or isolated) and patients like it. They can see their partners, kids, pets and others on a daily basis, which is beneficial to their recovery and treatment, she added.

The program began at Walter Reed Army Medical Center (WRAMC) and transferred to Bethesda, now Walter Reed National Military Medical Center, following (Base Realignment and Closure) BRAC and WRAMC’s closure in 2011.
During the COVID-19 pandemic, the program experienced a reduction in hours, but last year, it resumed its hours prior to the pandemic. PHP is now celebrating its one-year anniversary of comprehensive trauma and general mental health treatment provided to active-duty service members, said Quinn. She added that nearly 300 patients have received this care during the last year.
The PHP at Walter Reed is a full-day program, with patients coming here as their place of duty with command approval. There is great benefit in staying in military spaces, Quinn explained. Regular communication with the patient’s command and outpatient treatment team on their progress can include fitness for duty recommendations with an eye on military standards and goals of both patients and their command.
Quinn explained the structured program is four or five weeks “The content builds so you can start at any point and not wait,” she said. There is generally a technician-led group first thing in the morning, and one closed group each day where patients and staff can address heavier topics, such as coping with suicidal thoughts.
There is a final optional group most days that patients can “wind down depending on what [kind of] day it’s been,” Quinn said.
“[The PHP] has the capacity to treat up to 40 patients at one time,” said Quinn. “We try to keep the ratio manageable so groups don’t get too big, and everyone can participate.” She went on to describe how patients are divided into two separate treatment programs upon intake. The Comprehensive Recovery Program (CRP) focuses more on general mental health topics, and the Trauma Recovery Program (TRP) helps patients process traumas that have occurred at any point in their lives that are impacting their current functioning now. These treatment programs may be split into smaller cohorts at times based on type of trauma, or other factors.
In addition to Quinn, core staff for the PHP includes 10 primary therapists (four psychologists, six social workers, an art therapist, two psychiatrists, a nurse practitioner. “The staff here are fantastic. They have a lot of experience working with military patients and their specific concerns.” She added most are former military or spouses of service members.
Rotating trainees include one psychiatry resident, and at times, medical students, 66C (psychiatric nursing) students, and Interservice Physician Assistant Program (IPAP) students.
All patients receive formal art therapy once a week and participate in trips outside of Bldg. 85T at Walter Reed, the current home of the PHP.
“We have had a few recreational activities. We’ve been to the zoo, have gone rock climbing in Rockville, Maryland, to Great Falls, Virginia and to Brookside Gardens, Maryland,” Quinn said.
There is also horticulture therapy, and Quinn added that a therapist also arranges for patients to receive regular visits from Walter Reed’s facility dogs.
“All of our patients see their prescriber weekly for medication management, in addition to having two individual therapy sessions most weeks,” Quinn added. “We meet as a clinic team once a week to discuss the progress and clinical condition of every patient in the PHP, so we are able to truly give a comprehensive overview of their status and treatment.
Quinn explained that there has been a stigma about people seeking help for mental health care, particularly service members, fearing the impact it may have on their careers. “People in the military are often hesitant to try [therapy] but here [to provide the] best mental health [care].”
According to a 2006 study in Military Medicine, 97 percent of service members who seek mental health treatment do not experience any negative career impact. In addition, seeking mental or behavioral services will not affect a service member’s security clearance (https://tricare.mil/PatientResources/MediaCenter/TRICARE-Videos/Will-Mental-Health-Services-Affect-My-Security-Clearance#:~:text=The%20short%20answer%20is%3A%20No.)
Quinn added that the PHP includes a number of adjunctive therapies, including Transcranial Magnetic Stimulation (TMS), which she collaborates with Dr. Vanessa Torres-Llenza to tailor these therapies for patients. TMS uses magnetic pulses directed toward the brain to treat severe depression or anxiety, Quinn shared.
Another adjunctive therapy used in the PHP is battlefield acupuncture, in which five tiny, sterile needles are placed on a patient’s ear, which simply fall off after a short time. “It was originally [used] for pain and insomnia and is a great adjunctive therapy where depression decreases,” Quinn explained.
The program has also experienced positive outcomes with Alpha Stimulation, which helps with chronic pain and insomnia, and assists patients with relaxation, Quinn explained.
Quinn added that the PHP has a memorandum of understanding (MOU) with Building 62 at Walter Reed to house patients who come from long distances, since this is the only PHP of its kind in the National Capital Region (NCR). “We meet that need, and [patients can] stay when commands [elsewhere] don’t have access [to a PHP program].”
“We are always looking at ways to adapt the program to meet the needs of our current patients and monitor trends in referrals,” said Quinn. She explained that this has led to incorporating trauma treatment into the general mental health program, including adding eye movement desensitization and reprocessing for post-traumatic stress.
“[We would like to] have information on the program spread,” Quinn said. “We have resources to work and connect with them. [We love how] patients talk to each other and get referrals. Somebody in your company was here and now word [about this PHP] is making its way around.”

She said that nearly every rank, including enlisted personnel up to E-9 and officers up to O-6, have taken advantage of the PHP. “This is the only adult PHP in the NCR without going out of the network,” she stated.
For general questions about the program, contact the PHP front desk at 301-400-2110.
If you are having a mental health emergency, please call 911, 988 (988 Suicide and Crisis Lifeline), or go to your closest emergency room.

Story originally posted on DVIDS: Walter Reed Offers Partial Hospitalization Program for Mental Health Care