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Security News: Justice Department Sues Pennsylvania Landlord for Sexual Harassment in Housing

Source: United States Department of Justice

The Justice Department announced today that it filed a lawsuit against Venkatachalam Mani, a landlord in State College, Pennsylvania, for sexually harassing a female tenant and retaliating against her when she refused his advances, in violation of the Fair Housing Act. 

“The landlord failed to fix a tenant’s furnace despite freezing temperatures because the female tenant refused his sexual advances, forcing her family to move out with no other place to live,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This conduct is illegal. The Justice Department will uphold the rights of female tenants to housing without the threat of sexual harassment by a landlord.”

“Attempts to exploit tenants for sexual favors, sexual assault, and retaliation by landlords will never be tolerated in the Middle District of Pennsylvania,” said U.S. Attorney Brian D. Miller for the Middle District of Pennsylvania.

The lawsuit, filed today in the U.S. District Court for the Middle District of Pennsylvania, alleges that Mr. Mani made sexual advances toward a female tenant, including unwelcome sexual touching. After the tenant rejected his advances, Mr. Mani failed to respond to the tenant’s repeated requests for maintenance, including repairing a broken furnace in the middle of winter that eventually caught fire. The lawsuit seeks monetary damages for the tenant and her children and a court order barring future discrimination. 

The case was referred to the Department after the U.S. Department of Housing and Urban Development received a complaint, completed an investigation, and issued a charge of discrimination. 

If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743 or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. This complaint is part of the Justice Department’s Sexual Harassment in Housing Initiative. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, and other people who have control over housing. Since launching the initiative, the Department has filed 53 lawsuits alleging sexual harassment in housing and recovered approximately $19 million for victims of such harassment.

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Individual Arrested for Arson of Historic Brooklyn Church

Source: United States Department of Justice Criminal Division

Today, a criminal complaint was unsealed in federal court in Brooklyn charging John Jones with intentionally setting fire to the South Bushwick Reformed Church (the Church) located at 855 Bushwick Avenue, Brooklyn, New York, on June 19, 2026.  Jones was arrested earlier today in Manhattan and will make his initial appearance at a later date in the Eastern District of New York. 

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Security News: Nevada Doctor Charged with $95M Wound Care Fraud on Medicare

Source: United States Department of Justice

National Fraud Enforcement Division’s first announced charges in Nevada since the formation of the West Coast Health Care Fraud Strike Force

A federal grand jury in the District of Nevada returned an indictment yesterday charging Stephen Dubin, M.D., 74, of Henderson, Nevada, with a $95 million scheme to defraud Medicare by billing for medically unnecessary amniotic wound allografts that he and others applied to elderly Medicare patients.

“This indictment exposes a scheme driven by greed, not medicine. As alleged, this provider exploited elderly patients by pushing costly and unnecessary medical procedures, then lied to Medicare to pocket millions of taxpayer dollars,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Schemes like this drain Medicare of resources and impose substantial burdens on the taxpayers who fund it. Let this serve as a warning: any healthcare professional who tries to get rich at the expense of patient care can expect to face the same scrutiny — and the same consequences.”

“Healthcare fraud is not a victimless crime; it steals vital resources from elderly and vulnerable citizens who truly need life-saving treatments,” said First Assistant U.S. Attorney Sigal Chattah for the District of Nevada. “These defendants prioritized personal greed over patient care by weaponizing complex billing codes for advanced wound care products. As part of the West Coast Health Care Strike Force, our office, alongside our federal law enforcement partners, will continue to aggressively dismantle predatory schemes that target public healthcare programs.”

“Dr. Duben, as a physician, had a duty to prioritize the well-being of his patients; however, he engaged in unethical practices by prescribing costly, unnecessary allografts at taxpayer expense,” said Special Agent in Charge Christopher S. Delzotto of the FBI Las Vegas Field Office. “This betrayal of trust and exploitation of his healthcare position for personal financial gain is both cruel and premeditated. The FBI remains dedicated to collaborating with federal, state, and local agencies to investigate individuals like Dr. Duben and to safeguard federally funded healthcare programs from provider abuse.”

“These charges reflect a clear and calculated betrayal of elderly Medicare patients who depend on trusted providers for legitimate care,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “Schemes like this siphon taxpayer dollars, undermine patient safety, and erode confidence in our health care system. HHS‑OIG, working closely with our law enforcement partners, will continue to identify and hold accountable those who exploit federally funded health care programs for personal gain.”

“Fraud involving TRICARE, the healthcare program that provides medical coverage for active duty service members, retirees, and their families, strikes at a benefit earned through service to our nation,” said Special Agent in Charge John Helsing of the Defense Criminal Investigative Service’s Western Field Office. “As the criminal investigative arm of the Department of Defense’s Office of Inspector General, DCIS is steadfast in protecting TRICARE from individuals who manipulate medical billing for personal gain. The West Coast Health Care Fraud Task Force, working with our federal partners, greatly enhances our ability to detect and dismantle these schemes, ensuring we preserve the integrity of our nation’s military health system.”

According to court documents, Dubin, a medical doctor and sole owner of Dubin Medical Consultants, Inc. (also known as Wound MD) caused Medicare to be billed over $95 million for expensive amniotic allografts that he procured through illegal kickbacks and bribes. Dubin allegedly applied these allografts to elderly patients — including vulnerable patients in hospice care — without medical necessity. Medicare paid over $54 million based on Dubin’s false and fraudulent claims.

As alleged in the indictment, Dubin received illegal kickbacks, bribes, and rebates from two different allograft distributors. Some of these illegal payments were falsely structured to appear as legitimate “Rebate Agreements” while concealing their true nature and illegal payments. These purported rebates substantially reduced Dubin’s true net cost of acquiring the allografts. Dubin allegedly submitted claims to Medicare seeking reimbursement for the price listed on sham full-price invoices, instead of the actual price he paid for the allografts. Dubin and others allegedly kept as profit the difference between Medicare’s reimbursement and the price paid for the allografts.

The indictment also alleges that Dubin received illegal kickbacks from one allograft distributor through payments from a pass-through bank account held in the name of a shell company in exchange for purchasing allografts from the distributor.

Induced by these illegal kickbacks, bribes, and rebates, Dubin and his co-conspirators applied allografts without regard to medical necessity, including by applying allografts to infected wounds; to wounds that were not responding to allograft treatment; without first attempting, completing, or confirming conservative wound care treatment as required by Medicare; and in quantities that far exceeded the size of wounds. Dubin allegedly selected allografts that would maximize his profit, not based on the patient’s need. To conceal the lack of medical necessity, Dubin falsified patient medical records to make it appear as though the application of allografts was medically reasonable and met Medicare requirements.

Dubin used the proceeds of his alleged offenses to fund a lavish lifestyle, including having multi-million-dollar yachts built for him.

Dubin is charged with conspiracy to commit health care fraud and five counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison for each count.

FBI, HHS-OIG, and DCIS are investigating the case.

Trial Attorneys Chris Wenger and Shane Butland of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jessica Oliva for the District of Nevada are prosecuting the case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

On April 30, the Fraud Division announced the formation of the West Coast Health Care Fraud Strike Force, a multi-district enforcement initiative uniting the Division’s Health Care Fraud Section with the U.S. Attorney’s Offices for the District of Arizona, District of Nevada, and Northern District of California.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, 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.

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Canadian Man Pleads Guilty to Hacking U.S. Cloud Storage Provider and Extorting Its Customers for Millions

Source: United States Department of Justice Criminal Division

Connor Riley Moucka, 26, of Kitchener, Ontario, pleaded guilty today to a widespread computer hacking conspiracy that resulted in the compromise of over 165 victim organizations, the theft of billions of sensitive customer records and the extortion of numerous victims.

“Connor Moucka hacked over 150 companies and organizations, obtained extremely sensitive information, and extorted the victims for millions of dollars,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Moucka was arrested just six months after these breaches began, demonstrating this Department’s firm commitment to investigating and prosecuting sophisticated cybercriminals who cause extensive harm to American businesses and consumers. Today’s guilty plea serves as a reminder to all cybercriminals, regardless of where they live, that they cannot hide behind a wall of anonymity. You will be found and brought to justice.”

“As this case demonstrates, the cybercrimes unit in the Western District of Washington acts quickly and with precision when these hacks and intrusions impact victims in our district and around the world,” said First Assistant U.S. Attorney Charles Neil Floyd for the Western District of Washington. “I commend the work of the FBI and our counterparts in the Computer Crime and Intellectual Property Section in DC for the teamwork that resulted in Mr. Moucka taking responsibility today for his actions.”

“Hiding behind a screen is no shield from justice,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Connor Moucka learned that when he was arrested just months after he began targeting U.S. companies, stealing sensitive information, and extorting victims for millions of dollars. His guilty plea highlights the FBI’s commitment to protecting American businesses and consumers from cybercrime and reflects our strong partnership with the Royal Canadian Mounted Police and other international law enforcement agencies. The FBI will continue to identify, locate, and hold cybercriminals accountable, wherever they operate.”

“Today’s guilty plea sends a clear message to cybercriminals: you cannot hide from justice, no matter how hard you may try to cover your tracks,” said Special Agent in Charge W. Mike Herrington of the FBI Seattle field office. “Connor Moucka’s threats and re-extortion tactics were calculated and predatory, and his actions did real harm to his victims, be they companies targeted for theft and extortion or the millions of everyday people who are their customers. Ultimately, though, Mr. Moucka’s schemes were no match for the tenacity of FBI Seattle and this international investigative team. I am incredibly proud of their work. Let this outcome serve as a reminder: actions have consequences, and the FBI will continue to relentlessly pursue those who target American businesses and individuals in cyberspace, wherever they may be.”

According to court documents, between February and October 2024, Moucka and his co-conspirators used stolen login credentials to compromise cloud-hosted data belonging to at least 165 customers of a U.S.-based software-as-a-service company. Moucka and others used their unauthorized access to these customers’ computer systems to steal billions of sensitive customer records and download terabytes of information, including individuals’ non-content call and text history records, banking and other financial information, payroll records, Drug Enforcement Administration (DEA) registration numbers, driver’s license numbers, passport numbers, social security numbers and other personally identifiable information. They then extorted victims by threatening to publish data online.

The conspirators profited from the scheme, receiving over $2.5 million in ransom payments. In at least one instance, Moucka re-extorted a victim with threats of further disclosure of the victim’s stolen data. Moucka used the stolen data of a government officer and members of a then-former government officer’s immediate family in this re-extortion attempt.

In addition to extorting victims, Moucka and his co-conspirators advertised the victims’ data for sale online, including on the cybercrime forums BreachForums, Exploit.in and XSS.is, as well as on Telegram. Through these actions, Moucka personally obtained at least $495,000. The harm to the conspirators’ victims was much greater, with victim companies suffering over $9.5 million in actual losses — a number that does not include losses suffered by the companies’ customers, totaling at least 100 million individuals.

Moucka pleaded guilty to four counts of the indictment, including computer fraud, wire fraud, aggravated identity theft, and a related conspiracy. He is scheduled to be sentenced on Oct. 27 and faces a mandatory minimum penalty of two years in prison on the aggravated identity theft count and a maximum penalty of 30 years in prison on the remaining counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI investigated the case.

Trial Attorneys Louisa K. Becker and George S. Brown of the Justice Department’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Sok Tea Jiang for the Western District of Washington prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance in obtaining the arrest and July 2025 extradition of Moucka from Canada.

A number of foreign law enforcement agencies provided substantial assistance in the investigation and arrest of Moucka, including the Royal Canadian Mounted Police, the Australian Federal Police, Spain’s Guardia Civil, the Security Service of Ukraine and the Turkish National Police.

CCIPS investigates and prosecutes cybercrime and intellectual property (IP) crime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cyber and IP criminals, and court orders for the return of over $350 million in victim funds.

This action is part of Operation Riptide, an FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime, cyber-enabled crime, and fraud against the American people. Last year, Americans reported over $20 billion in losses to cybercrime, a 26 percent single-year increase. Operation Riptide is the FBI’s sustained enforcement response to that threat.

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Operation Clean Sweep Produces Major Arrests and Seizures in Onondaga County

Source: United States Department of Justice Criminal Division

Law Enforcement officials announced the results of Operation Clean Sweep – Onondaga County, a major enforcement initiative resulting in several arrests and significant seizures of firearms and narcotics.Onondaga County District Attorney William Fitzpatrick, First Assistant U.S. Attorney John A. Sarcone III, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in charge New York division Bryan DiGirolamo, Federal Bureau of Investigation Albany Field Office Special Agent in Charge Craig L. Tremaroli, Drug Enforcement Administration, New York Enforcement Division Special Agent in Charge Farhana Islam, Syracuse Police Chief Mark Rusin, Onondaga County Sheriff Tobias Shelley, and New York State Police Superintendent Steven G. James, made the announcement.

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Justice Department Withdraws Business Review Letter Issued to Proxy Advisory Firm

Source: United States Department of Justice Criminal Division

Today, the Justice Department’s Antitrust Division (“Antitrust Division”) is withdrawing a 1987 Business Review Letter (the “1987 BRL” or the “Letter”) issued to Institutional Shareholder Services (“ISS”). ISS is a foreign-owned proxy advisory firm that advises its clients on how to vote shares their clients hold for thousands of corporate governance questions each year. ISS and Glass, Lewis & Co. LLC (“Glass Lewis”), control more than 90 percent of the proxy advisory market and their clients’ holdings represent a significant ownership stake in the United States’ largest publicly traded companies. As a result of this concentration of market power, ISS and Glass Lewis have tremendous influence in corporate governance matters and, based on their market dominance, shape the policies of America’s largest companies.

At the time that the Antitrust Division issued its 1987 BRL to ISS, proxy advising as an industry was in its infancy. The Letter noted that, based on the understanding that ISS “will offer advice only on matters relating to the exercise of voting rights on issues of corporate governance, and that ISS will not provide advice or engage in discussions with respect to the corporate operations or business activities,” the Department of Justice “ha[d] no current intention to bring action under the antitrust laws to enjoin the establishment and operation of ISS.”[1] The 1987 BRL did not address corporate consulting services, which ISS now offers in connection with proxy voting services. ISS’s business model is now in direct conflict with the language in the Letter. ISS is, in fact, now providing advice with respect to corporate operations. In so doing, ISS wields enormous influence over corporate governance issues and policies through its proxy voting services.

A Business Review Letter “states only the enforcement intention of the Antitrust Division as of the date of the letter, and the Division remains completely free to bring whatever action or proceeding it subsequently comes to believe is required by the public interest.”[2] While the 1987 BRL stated the Division’s enforcement intention at that time, the Letter is not applicable to ISS’s current business practice of corporate consulting services. These issues were not a part of ISS’s original business model and are outside the scope of the 1987 BRL. Indeed, the representation at the time that ISS would not “provide or engage in discussions with respect to the corporate operations or business activities” may run contrary to ISS’s business model today.[3] The 1987 BRL expressly qualified the Antitrust Division’s enforcement position to exclude services directed at corporate operations or activities. The Department of Justice has since clarified that while antitrust safe harbors for passive investment protect most beneficial corporate governance advocacy, they do not protect the use of commonly held stock in competitors to encourage market-wide reductions in output or other anticompetitive conduct.[4]

To be clear, proxy advising is not inherently problematic and the lawful exercise of voting rights pursuant to a proxy advisor recommendation does not raise competition concerns. The Antitrust Division is withdrawing its 1987 BRL because the Letter does not reflect ISS’s current business practices or the Antitrust Division’s view of those practices. Moreover, the concentration of market power in the proxy advisory market raises significant competition concerns.

The Antitrust Division has previously recognized potential competitive concerns in the proxy advisory industry. In 2020, the Division filed comments before the Securities and Exchange Commission in a rulemaking process about proxy voting advice.[5] 

The Antitrust Division is committed to protecting the rights of all Americans, including by promoting competition, reducing barriers to entry, and ensuring full compliance with the antitrust laws in the proxy advisory market.

[2] 28 CFR § 50.6.9.

[4] DOJ Press Release, Justice Department and Federal Trade Commission File Statement of Interest on Anticompetitive Uses of Common Shareholdings to Discourage Coal Production (May 22, 2025; see also Statement of Interest of the Federal Trade Commission and the United States of America, Texas v. BlackRock, No. 6:24-cv-00437-JDK (E.D. Tex.), ECF No. 99 (May 22, 2025), https://www.justice.gov/atr/media/1401251/dl?inline.

[5]Comments of the United States Department of Justice, In the Matter of Release No. 34-87457, File No. S7-22-19 Amendments to Exemptions from the Proxy Rules for Proxy Voting Advice, U.S. Securities & Exchange Commission (Feb. 5, 2020), https://www.justice.gov/atr/page/file/1243656/dl?inline.

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Texas Physician Sentenced to 12 Years in Prison for Operating a Houston-Area Pill Mill

Source: United States Department of Justice Criminal Division

A Texas physician was sentenced yesterday to 12.5 years in prison for operating her Kingwood medical clinic as an illegal pill mill that issued prescriptions for over 3 million opioid pills.

According to court documents, Maryam Qayum, M.D., 68, of Montgomery County, Texas, owned, operated, and was the sole prescriber at Recare Health Clinic (Recare). Qayum operated Recare as a cash-only pill-mill, selling controlled substance prescriptions to street-level drug dealers who were referred to at Recare as “providers.” “Providers” purchased prescriptions for high strength, highly addictive opioids oxycodone and hydrocodone. Qayum issued these prescriptions without a legitimate medical purpose, and often without ever interacting with the patient. According to court documents, Qayum issued prescriptions for more than 3 million opioid pills between 2022 and 2025, when her clinic was shut down by law enforcement.

Court documents detail how Recare, like many pill-mill clinics, operated well outside the course of a normal medical practice, including charging more for prescriptions for drugs with higher street value. A prescription for oxycodone 30mg cost as much as $500, while hydrocodone prescriptions were often $300, and Recare’s staff frequently took “tips” from drug dealers to fast track their patients and prescriptions. The following note listing the cash price for each prescription was seized when law enforcement executed a search warrant at Recare.

Note seized from Qayum’s clinic showing cash prices for control substance prescriptions

In March 2026, Qayum pleaded guilty to conspiracy to unlawfully distribute controlled substances.  

In addition to Qayum, four other defendants were previously sentenced in this case: 

  • Melvin Sampson, 56, of Houston, Texas, was sentenced to 210 months in prison in June 2026. In March 2026, Sampson pleaded guilty to conspiracy to unlawfully distribute controlled substances. Sampson was a street-level drug dealer who brought patients to Recare, filled prescriptions at Surge Rx and elsewhere, and resold the drugs he obtained on the black market.
  • Tomi-Ko Bowers, APRN, 71, of Cleveland, Texas, was sentenced to 96 months in prison in June 2026. In March 2026, Bowers pleaded guilty to conspiracy to unlawfully distribute controlled substances and was a nurse practitioner at Recare.
  • Lester Stokes, 38, of Houston, Texas, was sentenced to 63 months in prison in June 2026. In March 2026, Stokes pleaded guilty to conspiracy to unlawfully distribute controlled substances and was Recare’s security guard.
  • Jared Williams, RPh, 49, of Pearland, Texas, was sentenced to 42 months in prison in July 2026. In March 2026, Williams pleaded guilty to unlawfully distributing a controlled substance and was the owner and pharmacist in charge at Surge Rx, which filled illegitimate prescriptions issued by Qayum.

DEA and the Conroe Police Department investigated the case.

Acting Assistant Chief Devon Helfmeyer and Trial Attorney Emily Reeder-Ricchetti of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alex Alum for the Southern District of Texas prosecuted the case.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, 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.

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Orlando Men Sentenced for Attempting to Coerce and Entice a Minor to Engage in Sexually Explicit Conduct

Source: United States Department of Justice Criminal Division

Orlando, Florida – Richard Kowalczyk (46, Windermere) and Eric Patrick (31, Windermere) have been sentenced by U.S. District Judge Carlos Mendoza for attempted coercion and enticement of a minor to engage in sexual activity. Kowalczyk was sentenced to 14 years in federal prison and Patrick was sentenced to 10 years in federal prison. Patrick pleaded guilty in February 2026 and Kowalczyk pleaded guilty in April 2026. Both are also required to register as sex offenders. U.S. Attorney Gregory W. Kehoe made the announcement. 

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Nevada Doctor Charged with $95 Million Wound Care Fraud on Medicare

Source: United States Department of Justice Criminal Division

LAS VEGAS – A federal grand jury in the District of Nevada returned an indictment yesterday charging Stephen Dubin, M.D., 74, of Henderson, Nevada, with a $95 million scheme to defraud Medicare by billing for medically unnecessary amniotic wound allografts that he and others applied to elderly Medicare patients.