Category: Security

Source: US FBI

CLEVELAND – Terrence L. Pounds, 47, of Holland, Ohio was sentenced to 94 months in prison by U.S. District Judge Pamela Barker after earlier pleading guilty to conspiracy to commit wire fraud, wire fraud and money laundering. He was also ordered to pay $4,239,940.43 to the U.S. Small Business Administration (SBA) and serve 3 years of supervised release.

According to court documents, from March 2020 through December 2020, Pounds and his co-defendants devised a scheme to obtain SBA-financed loans from the Economic Injury Disaster Loans (EIDL) program and the Paycheck Protection Program (PPP) under false pretenses.

Pounds, who was the leader of the conspiracy, arranged for others to provide him with their personal identifying information, which he then used to apply for EIDL loans in their names.

While Pounds listed those individuals as the business owner or applicant in most applications, he repeatedly made the same false statements in numerous applications submitted both for himself and for others. He claimed, for example, that each applicant operated a non-profit organization that was a “Faith-Based Organization” or a “Church” with, among other traits, $1,000,000 in revenue and 15 employees. Based on this false information, the SBA approved many of these loan applications. Pounds often received a share of the loan proceeds as payment for obtaining the loan.

Pounds used some of the money he made from this scheme—from both loans he received directly and payments received from others—to purchase a 2021 Chevrolet Tahoe, a 2021 Kia Telluride, a 2020 Hyundai Elantra and a 2020 BMW X4. Investigators seized those vehicles, and Pounds agreed to forfeit them.

Pounds submitted dozens of fraudulent EIDL loan applications collectively seeking more than $9.5 million in EIDL funds, with each application generally seeking approximately $150,000. The SBA approved and paid approximately $3.7 million in EIDL loans based on those applications. Pounds and his co-conspirators also submitted numerous fraudulent PPP loan applications, many of which were approved, raising the total of funds obtained by fraud to more than $4.2 million.

This investigation was conducted by the Cleveland FBI – Canton Resident Agency and the IRS – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorneys Elliot Morrison and Edward Brydle.

The public is encouraged to submit any allegations of COVID-19 fraud to the National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form.

Source: US FBI

TOLEDO – Gregory J. Gerber, age 58, of Port Clinton, Ohio, was sentenced to prison by U.S. District Judge James R. Knepp, II after earlier pleading guilty to illegally dispensing narcotics to patients. Gerber was sentenced to 42 months imprisonment to be followed by one year of home confinement for the first of 3 years of supervised release. Gerber was also ordered to pay a $100 special assessment and restitution in the amount of $861,892.13.

According to testimony and court records, from January 2010 to August 2018, Gerber repeatedly prescribed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, including powerful painkillers such as fentanyl, oxycodone, oxymorphone and other drugs. Gerber distributed narcotics that were not medically necessary by writing controlled substance prescriptions without first performing adequate patient physical examinations. He also used faulty diagnoses to prescribe excessive doses of controlled substances for long periods of time without evidence that the controlled substances were helping the patients, all while ignoring signs of addiction and drug abuse among those patients.

Gerber, who operated Gregory J. Gerber, M.D. LLC on Hayes Avenue in Sandusky, also profited significantly from prescribing Subsys, a particular branded formulation of fentanyl manufactured by Insys Therapeutics, Inc. Between 2013 and 2016, Gerber received $175,000 from Insys for promoting the drug through Insys’s speaker’s bureau program. During that same time, Gerber wrote 835 prescriptions for Subsys.

“When he became a physician, Dr. Gerber vowed to care for his patients—to heal, not harm,” said U.S. Attorney Becky Lutzko. “But Dr. Gerber violated both federal law and his oath when he illegally distributed addictive painkillers to his patients. The Northern District of Ohio, like many districts throughout the country, continues to combat a staggering opioid crisis. My Office and our law enforcement partners are dedicated to investigating and prosecuting physicians who abuse their positions of trust by unlawfully prescribing medically unnecessary opioid prescriptions and endanger their patients’ lives.”

“Abusing one’s position as a trusted healthcare provider by deliberately harming others for personal gain is disgraceful,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “Gregory Gerber exhibited a blatant disregard for his patients’ wellbeing and instead, purposefully sought ways to capitalize on—and at times, contribute to—a worsening condition.

The FBI will continue to work with our federal, state and local partners to find and investigate practitioners in the medical community who target and victimize vulnerable populations.”

“Physicians are expected to be trusted individuals within the communities they serve. The defendant’s actions placed patients at risk of harm and further burdened the federal health care system through his illegal conduct,” said Mario M. Pinto of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Chicago Region. “HHS-OIG will continue to work with our law enforcement partners to ensure that those who endanger beneficiaries of our federal health care programs are brought to justice.”

“This disgraced doctor violated the most important oath—to do no harm,” said Ohio Attorney General Dave Yost. “No punishment can reverse the damage of the opioid crisis, but we are fortunate to have investigators and partner agencies that root out these criminal schemes.”

This case was investigated by the FBI, Drug Enforcement Administration, Health and Human Services – Office of Inspector General, Ohio Attorney General’s Healthcare Fraud Section and Ohio Board of Pharmacy. This case is being prosecuted by Assistant United States Attorney Megan R. Miller.

Source: US FBI

CAMDEN, N.J. – An Atlantic County, New Jersey, doctor was sentenced to 15 months in prison for his role in defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.

Brian Sokalsky, 46, of Margate, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to a superseding information charging him with one count of conspiring to commit health care fraud. U.S. District Judge Edward S. Kiel imposed the sentence on Oct. 29, 2024, in Camden federal court. 

 Sokalsky, pharmaceutical sales representative Vincent Tornari, 50, of Linwood, New Jersey, and former advanced nurse practitioner Ashley Lyons-Valenti, 67, of Swedesboro, New Jersey, were charged in a 33-count indictment in June 2020. Tornari pleaded guilty on March 14, 2023, and Lyons-Valenti pleaded guilty on Feb. 28, 2023, to their respective roles in the conspiracy. Tornari and Lyons-Valenti are both awaiting sentencing.

According to court documents filed in this case and statements made in court:

Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.

The conspirators learned that certain medications made by compounding pharmacies reimbursed for up to thousands of dollars for an individual’s one-month supply. They learned that certain insurance plans – including insurance plans for state and local government employees and certain other insurance plans – covered these medications.

Sokalsky agreed to authorize prescriptions for former pharmaceutical sales representative Matthew Tedesco, 49, of Linwood, New Jersey, who pleaded guilty to health care fraud conspiracy in June 2017, and others working with Tedesco. In exchange for authorizing those prescriptions, Tedesco referred approximately 30 patients to Sokalsky’s new medical practice.  Sokalsky, in turn, billed insurance for patient visits for those people steered to his practice by Tedesco. Sokalsky also authorized prescriptions for the medications for existing patients of his practice, which he did to financially benefit Tedesco and encourage him to refer more patients to his new practice. Sokalsky authorized medically unnecessary medications, including libido creams for young females and excessive quantities of the medications with the maximum number of refills selected. When insurance stopped covering certain formulations of the medications, Tedesco informed Sokalsky that he needed to authorize new prescriptions.  Sokalsky did so, often without seeing the individual for a follow-up visit or informing the person of the change in medication. In total, insurance paid more than $5 million for fraudulent prescriptions authorized by Sokalsky.

In addition to the prison term, Judge Kiel sentenced Sokalsky to three years of supervised release and ordered restitution of $5.13 million.

Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the sentencing.

The government is represented by R. David Walk Jr., Deputy Chief of the Criminal Division; and Assistant U.S. Attorney Daniel A. Friedman of the Camden office.

Source: US FBI

NEWARK, N.J. – A Morris County, New Jersey, man has been charged with posting online a death threat aimed at a political commentator, U.S. Attorney Philip R. Sellinger announced today.

Haim Braverman, 45, of Morris Plains, New Jersey, is charged by complaint with one count of transmitting a threat in interstate and foreign commerce. He made his initial appearance on Oct. 29, 2024, before U.S. Magistrate Judge James B. Clark III in Newark federal court and was remanded.

According to documents filed in this case and statements made in court:

On Sept. 10, 2024, Braverman posted a video of himself on a social media platform in which he made various threats to a political commentator who had publicly commented on a prominent, now-deceased rabbi. In the video, Braverman threatened to use a bat against the commentator, stating: “You’ll get what’s coming to you . . . , I’ve never met someone . . . if I could f**king kill you right now, I would not even . . . , f**k it I’ll give you the steel bat. I wouldn’t even stop. I’d kill you. Dead. . . . I’m threatening a death sentence against [the commentator].” Braverman’s post also included a written comment from him, stating: “[the commentator] needs to be killed.” Braverman also transmitted an audio message to a group chat on a messaging application, referencing the commentator and stating, “After I heard what . . . [the commentator] said, I will go to prison, gladly find her and kill her . . . I will find a f**king weapon and f**king kill her. I am outraged.”

The charge of transmitting a threat in interstate or foreign commerce carries a statutory maximum term of imprisonment of five years and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, and the Morris County Sheriff’s Office, under the direction of Sheriff James Gannon, with the investigation leading to the charge.

The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Source: US FBI

NEWARK, N.J. – A Jersey City man was sentenced today to 225 months in prison for possession with intent to distribute cocaine, U.S. Attorney Philip R. Sellinger announced.

Jamil King, 32, of Jersey City, was previously convicted after a two-day trial before U.S. District Court Judge Esther Salas. Judge Salas imposed the sentence today in Newark federal court.

According to documents filed in this case and the evidence at trial:

King is a high-ranking member of the Jersey City neighborhood street gang known as Parkside. Law enforcement officials obtained a search warrant for King’s residence, and during the evening of July 8, 2022, officers executed that warrant. When the police arrived, King fled, but law enforcement recovered approximately 50 grams of cocaine from a pair of sweatpants inside the apartment. Those sweatpants contained the defendant’s DNA and matched the sweatshirt that the defendant was wearing that night.

In addition to the prison term, Judge Salas sentenced King to three years of supervised release.

U.S. Attorney Sellinger credited the Jersey City Police Department, under the direction of Director James Shea, for the investigation leading to the sentencing. He also thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks Jr.

This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City.  As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration’s New Jersey Division, the U.S. Marshals, the Department of Homeland Security – Homeland Security Investigations, the Jersey City Police Department, the Hudson County Prosecutor’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.

The government is represented by Assistant U.S. Attorney Desiree Grace, Chief of the Criminal Division, and Assistant U.S. Attorney Joseph Stern of the Office’s General Crimes Unit in Newark.

Source: US FBI

CLEVELAND – A new twist on an old scam is targeting consumers and businesses throughout Northeast Ohio. The United States Attorney’s Office, Northern District of Ohio, and FBI Cleveland are warning the public about a scam that combines aspects of tech-support fraud with government impersonation.

In this scam, the victim receives a document or documents resembling an official court document both in its format and language, sent through an email, the U.S. Mail, a text, or website pop-up. The document and/or accompanying notice state that the victim is being investigated for Paycheck Protection Program (“PPP”) fraud and that an arrest warrant has been issued. The notice asserts that the Department of Justice (“DOJ”) Civil Division’s Commercial Litigation Branch has issued it, and it states that, to “lift the warrant,” the victim must go to a cryptocurrency kiosk and make a designated payment. Such notices and documents are fake, and persons who receive them should report receiving them to the FBI at https://www.ic3.gov.

“Fraudsters are often quite sophisticated. Time and again, we see these criminals refine their schemes to make their false claims seem more believable, and then succeed in cheating our community members of their hard-earned money,” said U.S. Attorney Rebecca C. Lutzko. “Recently, we are seeing more and more scammers impersonate law enforcement officers, government agencies, banks, and companies, and use these false personas to convince their victims to hand over money, gold, or other things of value. The United States Attorney’s Office, the FBI, and our other law enforcement partners will continue to pursue such scammers aggressively, but we would much rather prevent a scam than prosecute one. Please remain vigilant, treat unsolicited emails, texts, and pop-up ads with suspicion, and check in on friends or loved ones who you think might be particularly susceptible to these types of scams. And if you believe that either you or someone you know has been the victim of a scam, promptly report it to the FBI or, if appropriate, call the National Elder Fraud Hotline at 1-833-FRAUD-11 [1-833-372-8311].”

“Scammers are becoming increasingly clever in the way they are portraying government agencies and banking and financial institutions,” said FBI Cleveland Special Agent in Charge Greg Nelsen. “This scam– creating bogus documents designed to look like a court summons and compelling the victim to oblige or face arrest, jail time, or further action, highlights the efforts the criminals will take to dupe unsuspecting victims. We can’t stress enough to the public that the government will not contact you via email or text with a summons for action, payment, or arrest and instead, urge residents to place a phone call with the publicly listed phone number of the government agency, not the number or email listed in the [bogus] document, to confirm if a communication was sent by that agency. Typically, it’s a scam. And in that case, we ask that you report it to the FBIs Internet Crime Complaint Center at ic3.gov.”

In addition to COVID Fraud Enforcement and PPP Resolution scams, internet-based crimes continue to target all Americans. According to information from the FBI’s Internet Crime Complaint Center, last year, consumers in Toledo, Akron, Cleveland, Youngstown, and beyond reported that they received notifications that their computer or Amazon account was compromised. These alerts came in the form of websites or pop-ups. Victims believed they were talking to tech support staff from Microsoft or Amazon and then were transferred to other individuals who represented themselves as an “officer of the law” or staff from the Federal Trade Commission (FTC) or Federal Bureau of Investigation (FBI) who then requested tens of thousands of dollars to remedy the situation. The victims were asked to put the cash in a package and then meet with a “federal marshal” for the pickup. The locations where the victims met the couriers were areas like gas stations, fast food restaurant parking lots, and even their own homes. Sometimes the victims were shown educational videos about fraud by the scammers and thanked for “doing the right thing” and supporting law enforcement efforts. Victims were often older consumers who lost tens of thousands of dollars. While tech support scams are not new, this newest trend is quite frightening because scammers are requesting face-to-face meetings for cash pickups while impersonating law enforcement. Both seniors and their families should be aware of this and other, similar scams.

Consumers who are asked to wire, pay, or transport large amounts of cash or crypto currency to avoid arrest, jail time, or fix a tech support or some type of business-related account issue should cease communications, and instead contact the FBI directly by filing a report online at the Internet Crime Complaint Center (https://www.ic3.gov).

Additionally, consumers should always try to verify questionable correspondence with a government agency or member of law enforcement by a separate means—such as contacting them directly using information found on an official website.

Source: US FBI

NEWARK, N.J. – A Belgian national was arrested today for attempting to breach the cockpit and assaulting flight attendants aboard flight from Newark Liberty International Airport to Zurich, Switzerland, in March 2024, U.S. Attorney Philip Sellinger announced.

Jan Daeninck, 43, of Belgium, is charged by complaint with one count of interference with flight crew members and attendants by assault and intimidation, one count of assault, and one count of abusive sexual contact on an airplane. He appeared before U.S. Magistrate Judge U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court and was released on $100,000 unsecured bond.

According to documents filed in this case and statements made in court:

On March 31, 2024, Daeninck was a passenger aboard a Swiss International Airlines flight from Newark to Zurich. Shortly after takeoff, Daeninck walked up to a female flight attendant, grabbed both of her breasts with his hands, shook her, and began yelling at her. After the flight attendant was able to wrest herself away from Daeninck, he then approached and attempted to enter the cockpit, repeatedly striking, kicking and beating the cockpit door. While Daeninck was attempting to gain entrance to the cockpit, a male flight attendant approached Daeninck. After repeatedly striking, punching, and kicking the cockpit door and failing to gain entry to the cockpit, Daeninck assaulted the male flight attendant by repeatedly punching and kicking the flight attendant, striking him in head and upper body with a closed fist. Flight crew members were able to intervene and assist with restraining Daeninck on the floor in the vicinity of the cockpit door for the remainder of the flight. As a result of Daeninck’s actions, the flight turned around and landed back at Newark Liberty International Airport.

The charge of interfering with flight crew members and attendants carries a maximum sentence of 20 years in prison and a maximum fine of $250,000. The charge of assault by beating or striking carries a maximum punishment of one year in prison and a maximum fine of $100,000. The charge of abusive sexual contact carries a maximum sentence of two years in prison and a maximum fine of $250,000.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation leading to the charge. He also thanked the Port Authority Police Department, under the direction of Edward T. Cetnar, for its assistance.

The government is represented by Assistant U.S. Attorney Michelle L. Goldman of the Office’s General Crimes Unit in Newark.

The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Source: US FBI

NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a conspiracy to commit child sex trafficking, U.S. Attorney Philip R. Sellinger announced.

Soauib Butcher, 30, of Brooklyn, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to one count of conspiracy to commit sex trafficking of a minor.

According to documents filed in this case and statements made in court:

In August 2019, Butcher brought the victim by train to New York City, where he instructed the victim to perform oral sex for money on a rooftop in Brooklyn. Several days later, Butcher brought the victim to Elizabeth, New Jersey, where, from August 2019 to January 2020, the victim stayed with Butcher and a conspirator in a series of motel rooms. The conspirator posted advertisements depicting the victim on escort websites and, together with Butcher, arranged for customers to come to the motels to have sex with the victim in exchange for money.

Conspiracy to commit sex trafficking of a minor carries a maximum term of life in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 19, 2025.

U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado in Newark, with the investigation.

The government is represented by Assistant U.S. Attorneys Katherine M. Romano of the Health Care Fraud Unit and Aaron L. Webman of the Economic Crimes Unit in Newark.

Source: US FBI

COLUMBUS, Ohio – A California man was sentenced in U.S. District Court here today to 51 months in prison for embezzling more than $10.2 million from his employer and violating orders of the Court in a related civil lawsuit against him.

Brinson Caleb Silver, 43, of Culver City, California, used his position as a high-level executive to create a scheme involving shell companies, inflated contracts and a stolen identity.

Silver pleaded guilty in November 2023 to one count each of wire fraud and contempt of court. As part of his sentence, Silver is ordered to pay more than $10.2 million in restitution.

According to court documents, Silver was the Chief Marketing Officer of Root, Inc., an online car insurance company based in Columbus. From November 2021 through November 2022, Silver entered into contracts with four vendors for marketing services. Silver directed the vendors to send a portion of their contract proceeds to bank accounts in the names of businesses that Silver owned and controlled. Those diverted payments totaled more than $10.2 million.

Silver used the millions he embezzled to buy a $1.4 million dollar yacht, a Mercedes-Benz G550 for nearly $165,000, an amphibious plane, luxury watches and other items.

As a result of his fraud scheme, in February 2023, Root sued Silver. As the civil case progressed, Silver violated multiple court orders. For example, he flouted an order entered by the Court in his civil suit that limited him to financial transactions no greater than $5,000. In addition, Silver failed to appear in court for a hearing related to his civil suit and instead spent lavishly while traveling the globe.

His expenditures in February and March 2023 violated the Court’s orders and include $20,000 on plastic surgery, nearly $25,000 at Indonesian businesses (including $8,000 at a luxury resort in Bali) and in withdrawals made in Indonesia, and more than $88,000 through PayPal to individuals. Silver also withheld from the Court information about a $1.8 million house he owned in California. Before the civil or criminal cases were filed, Silver also made two phone calls to an “international relocation” company and asked for citizenship within a country that would not extradite him to the United States, and a foreign bank account that the United States could not freeze.

Silver was charged criminally and arrested in June 2023. A grand jury indicted him in October 2023, and, in November 2023, a superseding information was filed to which he pleaded guilty.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Cheryl Mimura, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.

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Source: US FBI

Director Christopher Wray has named Elena Iatarola as the special agent in charge of the Cincinnati Field Office. Ms. Iatarola most recently served as a section chief in the Security Division.

Ms. Iatarola joined the FBI as a special agent in 1997 and reported to the El Paso Field Office in Texas, where she investigated volent and transnational organized crimes. In 2008, she was promoted to serve as supervisory special agent in the Merrillville Resident Agency of the Indianapolis Field Office and led two Safe Street Task Forces in Northern Indiana.

Ms. Iatarola transferred to the Las Vegas Field Office, and from 2012 she served as a field supervisor overseeing criminal and international terrorism investigations. In 2017, she reported to the Inspection Division at FBI Headquarters in Washington, D.C., as a team leader. In 2018, she returned to Las Vegas as the program coordinator for the Crimes Against Children and Human Trafficking programs.

Ms. Iatarola was promoted to assistant special agent in charge of the Intelligence and Administrative branches of the Denver Field Office in 2019. In her role there, she was responsible for oversight of the resident agencies in Wyoming, the intelligence and security programs,  SWAT and Evidence Response Team, and all administrative programs. Ms. Iatarola was also the on-scene commander after a mass shooting at a Boulder grocery store in 2021 which left 10 people dead, including an on-duty police officer.

In 2022, Ms. Iatarola was promoted to section chief of the Suitability and Security Clearance Section in the Security Division, overseeing all aspects of background investigations and clearances. The Security Division is one of several FBI Headquarters divisions located on the FBI’s campus on Redstone Arsenal near Huntsville, Alabama.

Prior to joining the FBI, Ms. Iatarola served as a police officer with the Henderson Police Department in Nevada. She earned a Bachelor of Arts degree in criminal justice from Indiana University, a master’s degree in public safety administration from the Calumet College of St. Joseph University in Indiana, and a master’s degree in criminal justice from the University of Nevada, Las Vegas.