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Source: US FBI

A federal jury convicted a medical doctor yesterday for his participation in conspiracies to commit health care fraud and wire fraud and to unlawfully distribute controlled substances.

According to court documents and evidence presented at trial, Neil K. Anand M.D., 48, of Bensalem, Pennsylvania, conspired to submit false and fraudulent claims to Medicare, health plans provided by the U.S. Office of Personnel Management (OPM), Independence Blue Cross (IBC), and Anthem, for “Goody Bags” of medically unnecessary prescription medications, which were dispensed to patients by in-house pharmacies owned by Anand. As the evidence at trial showed, the conspirators required patients to take the Goody Bags, which they did not need or want, to receive prescriptions for controlled substances. In total, Medicare, OPM, IBC, and Anthem paid over $2.3 million for the Goody Bags. Anand also conspired to distribute oxycodone outside the usual course of professional practice and without a legitimate medical purpose. In furtherance of the conspiracy, unlicensed medical interns wrote prescriptions for controlled substances using blank prescriptions that were pre-signed by Anand. Anand prescribed 20,850 oxycodone tablets for nine different patients, as part of the scheme. After learning that he was under investigation, Anand concealed the proceeds of the fraud by transferring approximately $1.2 million into an account in the name of his father and for the benefit of his minor daughter.

Anand was convicted of conspiracy to commit health care fraud and wire fraud; three counts of health care fraud; one count of money laundering; four counts of unlawful monetary transactions; and conspiracy to distribute controlled substances. He is scheduled to be sentenced on Aug. 19 and faces a statutory maximum penalty of 130 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG); Special Agent in Charge Kathleen Woodson of the U.S. Postal Service Office of Inspector General (U.S. Postal Service OIG); and Special Agent in Charge of Investigative Operations Derek Holt of the OPM-Office of the Inspector General (OPM-OIG) made the announcement.

The HHS-OIG, U.S. Postal Service OIG, and OPM OIG investigated the case.  FBI’s Philadelphia Field Office provided valuable assistance.

Trial Attorneys Paul J. Koob, Patrick J. Campbell, and Arun Bodapati of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

Source: US FBI

PORTLAND, Ore.—A Damascus, Oregon woman was arraigned in federal court Monday after she was indicted for filing twenty fraudulent small claims in circuit courts throughout Oregon and receiving at least $190,000 in garnished funds from victims.

Sharon Neal has been charged with five counts of mail fraud.

According to the indictment, between August 2018 and November 2022, Neal is alleged to have devised and carried out a scheme wherein she filed multiple fraudulent small claims, in circuit courts throughout Oregon, on behalf of fictitious companies in order to obtain monetary judgments against victims. Neal made false allegations against victim companies saying they provided low quality products and services or failed to provide products and services, when in fact, the victim companies did not conduct business with Neal’s sham companies, and many did not offer the products or services alleged in the small claims.

As part of the scheme, Neal then filed certificates of service, including copies of signed certified mail return receipts, falsely certifying that she served the claim and summons on the victims by certified mail. Instead, Neal sent empty envelopes to the victim companies so they were unaware of any small claims filed against them. Since victims were unaware of the pending cases, they did not respond to the claims and Neal was able to obtain default judgments and writs of garnishments. Neal would then provide the writ of garnishment to a victim’s bank and receive a check for the judgment amount. Victims would only learn of these small claims after being notified of the garnished funds by their bank.

Neal made her initial appearance in federal court today before a U.S. Magistrate Judge. She was arraigned, pleaded not guilty, and ordered released pending a four-day jury trial scheduled to begin on February 18, 2025.

If convicted, Neal faces a maximum sentence of 20 years in federal prison, three years’ supervised release, and a fine of $250,000.

This case was investigated by the FBI. It is being prosecuted by Andrew T. Ho, Assistant U.S. Attorney for the District of Oregon.

An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

Source: US FBI

EUGENE, Ore.—A Washington State man pleaded guilty and was sentenced to federal prison today for traveling to Oregon to sexually abuse a minor he met online.

Seth Lee Fabry, 34, pleaded guilty to coercion and enticement of a minor and was sentenced to 188 months in federal prison and 20 years’ supervised release.

According to court documents, in April 2022, Fabry messaged a minor through Discord, a social media platform, after meeting on MeetMe, another social media platform. Undeterred by the minor’s age, Fabry engaged in explicit discussions with the minor and persuaded them to send sexually explicit images. In May 2022, Fabry traveled from Washington to Oregon two times and sexually abused the minor.

On May 29, 2022, Fabry again traveled to the victim’s residence in Oregon but was met by the minor’s mother. She contacted law enforcement and Fabry was arrested.

On October 4, 2022, a federal grand jury in Eugene returned a two-count indictment charging Fabry with sexually exploiting a child and traveling with the intent to engage in illicit sexual conduct.

This case was investigated by the FBI with assistance from the Eugene Police Department. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.

Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at 1-800-CALL-FBI (1-800-225-5324) or submit a tip online at tips.fbi.gov.

The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.

Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Source: US FBI

           WASHINGTON – An Oregon man was sentenced to prison today after he previously pleaded guilty to assaulting law enforcement and other offenses during the Jan. 6, 2021, breach of the U.S. Capitol. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

           Jonathanpeter Allen Klein, 24, of Pendleton, Oregon, was sentenced by U.S. District Judge Randolph D. Moss to nine months in prison, 36 months of supervised releases, and ordered to pay $3,000 in restitution. Klein previously pleaded guilty to one count of civil disorder and one count of assaulting, resisting, or impeding certain officers.

           According to court documents, on Dec. 27, 2020, Klein informed his employer via text that he and his brother, Matthew Leland Klein, were attending the “Stop the Steal” rally in Washington, D.C., on Jan. 6, 2021, and requested time off from January 4th to January 8th. The brothers traveled from Portland, Oregon, to Philadelphia, Pennsylvania, on January 4th and returned on January 8th.

           On January 5th, Klein attended a rally wearing attire associated with the Proud Boys, including a black shirt with the Portland chapter’s initials, an American flag neck gaiter, and a black baseball cap. He wore the same clothing on January 6th.

           On January 6th, Klein attended the “Stop the Steal” on the National Mall and afterward marched toward the U.S. Capitol building and entered the restricted grounds. At about 2:00 p.m., Klein threw an audio-visual equipment container lid at Metropolitan Police Department (MPD) officers. The lid struck an officer’s helmet, causing the officer to stumble and require assistance. Court documents say that the officer momentarily lost consciousness and later reported emotional and mental distress, believing their helmet saved their life.

           Klein later entered the Capitol building at approximately 2:16 p.m., shortly after rioters breached windows near the Senate Wing Door. Inside, he embraced other rioters, displayed a Proud Boys hand signal, and recorded events with his cell phone. Klein traversed various parts of the Capitol, including the Rotunda, Crypt, and House Wing.

           After exiting the building, Klein reunited with his brother and joined others at the Capitol’s North Door. Together, they forcibly opened the door, causing over $10,000 in damage and exposing Capitol Police to further violence.

           The FBI arrested the two men in Oregon on March 23, 2021.

           Matthew Klein was sentenced on Nov. 14, 2024.

           This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Oregon.

           This case was investigated by the FBI’s Portland and Washington Field Offices. Matthew Klein was identified as BOLO (BE on the Lookout) #127R and Jonathanpeter was identified as BOLO #127L and. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

           In the 46 months since Jan. 6, 2021, more than 1,561 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 590 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

           Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Source: US FBI

INDICTMENT

COMPLAINT

LOS ANGELES – Law enforcement today unsealed criminal charges against five defendants who allegedly targeted employees of companies nationwide with phishing text messages and then used the harvested employee credentials to log in and steal non-public company data and information and to hack into virtual currency accounts to steal millions of dollars in cryptocurrency. 

The following defendants are charged by a federal grand jury indictment with one count of conspiracy to commit wire fraud, one count of conspiracy, and one count of aggravated identity theft:

• Ahmed Hossam Eldin Elbadawy, 23, a.k.a. “AD,” of College Station, Texas;
• Noah Michael Urban, 20, a.k.a. “Sosa” and “Elijah,” of Palm Coast, Florida;
• Evans Onyeaka Osiebo, 20, of Dallas, Texas; and
• Joel Martin Evans, 25, a.k.a. “joeleoli,” of Jacksonville, North Carolina. 

Evans was arrested Tuesday by the FBI in North Carolina and is expected to make his initial court appearance today. Urban also faces and has pleaded not guilty to several fraud charges in a separate criminal case in federal court in Jacksonville, Florida.

Also unsealed today was a criminal complaint charging Tyler Robert Buchanan, 22, of the United Kingdom, with conspiracy to commit wire fraud, conspiracy, wire fraud, and aggravated identity theft.

“We allege that this group of cybercriminals perpetrated a sophisticated scheme to steal intellectual property and proprietary information worth tens of millions of dollars and steal personal information belonging to hundreds of thousands of individuals,” said United States Attorney Martin Estrada. “As this case shows, phishing and hacking has become increasingly sophisticated and can result in enormous losses. If something about the text or email you received or website you’re viewing seems off, it probably is.”

“The defendants allegedly preyed on unsuspecting victims in this phishing scheme and used their personal information as a gateway to steal millions in their cryptocurrency accounts,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “These types of fraudulent solicitations are ubiquitous and rob American victims of their hard-earned money with the click of a mouse. I’m proud of our stellar cyber agents whose work led to the identification of the alleged schemers who are facing significant prison time if convicted.”

According to court documents, from at least September 2021 to April 2023, the defendants conducted phishing attacks by sending mass short message service (SMS) text messages to mobile phones of numerous victim companies’ employees – messages that purported to be from the victim company or a contracted information technology or business services supplier of the victim company.

The phishing text messages often stated that the employees’ accounts were about to be deactivated and provided links to phishing websites which were designed to look like legitimate websites of the victim companies or their contracted suppliers and lure the recipient into providing confidential information, including account login credentials. Some employees went to the phishing websites, entered their credentials, and sometimes authenticated their identities using a two-factor authentication request sent to their mobile phones.

The defendants then used the stolen credentials to gain unauthorized access the accounts of victim companies’ employees and the companies’ computer systems to steal confidential information, including confidential work product, intellectual property, and personal identifying information, such as account access credentials, names, email addresses, and telephone numbers.

The group also used stolen information obtained from victim company intrusions, leaked data sets, and other sources, to gain unauthorized access to numerous individuals’ cryptocurrency accounts and wallets and steal millions of dollars’ worth of virtual currency.

An indictment and a complaint contain allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

If convicted, each defendant would face a statutory maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud, up to five years in federal prison for the conspiracy count, and a mandatory two-year consecutive prison sentence for aggravated identity theft. Buchanan would face up to 20 years in prison for the wire fraud count as well.

The FBI is investigating these matters. The United States Attorney’s Office for the Eastern District of North Carolina, Police Scotland and the FBI field offices in Charlotte, Denver, Houston and Portland provided assistance during this investigation. 

Assistant United States Attorneys Lauren Restrepo of the Cyber and Intellectual Property Crimes Section and Sue J. Bai of the Terrorism and Export Crimes Section are prosecuting these cases.

Source: US FBI

           WASHINGTON – An Oregon man was sentenced to prison on Nov. 14, 2024, after he previously pleaded guilty to felony and misdemeanor charges related to his conduct during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

           Matthew Leland Klein, 27, of Pendleton, Oregon, was sentenced by U.S. District Judge Randolph D. Moss to 90 days in prison and 36 months of supervised release. Klein previously pleaded guilty to a felony charge of civil disorder and a misdemeanor charge of entering and remaining in a restricted building or grounds on July 17, 2024.

           According to court documents, Matthew Klein and his brother, Jonathanpeter Allen Klein, traveled from Portland, Oregon, to Washington, D.C., to attend the “Stop the Steal” rally on Jan. 6, 2021. After attending the rally, the brothers made their way toward the Capitol building and entered into the restricted perimeter before separating.

           As a crowd of rioters amassed on the West Front of the Capitol building, Klein climbed up the Northwest Staircase and into the scaffolding that had been erected for the Inaugural stage. Here, Klein was in a position to see officers actively working to stop rioters from advancing on the Capitol building and rioters in the crowd assaulting those officers. While inside the scaffolding, Klein became separated from his brother.

           The first breach of the Capitol occurred at approximately 2:12 p.m. when rioters broke open windows adjacent to the Senate Wing Door. At approximately 2:18 p.m., Klein entered the

           Capitol building through the Senate Wing Door carrying a Gadsden flag. He then exited the building approximately ten minutes later, at 2:28 p.m., through a broken window next to the Senate Wing Door. Although Klein exited the building at 2:29 p.m., he did not retreat or leave Capitol Grounds at the time.

           Later, Klein reunited with his brother and approached the North door. There, police officers were assembled to prevent a further breach of the building. Klein then joined his brother and other rioters in forcefully yanking the door open, causing damage to the door—estimated by the Architect of the Capitol to be in excess of $10,000—and exposing officers to the violent mob.

           Immediately after breaching the North Door, Klein stepped back and pulled his safety goggles over his eyes. Court documents say that Klein took this action because he understood that law enforcement would attempt to resecure the door, including through the use of chemical irritant sprays.

           After pulling his safety goggles over his eyes, Klein then positioned himself in front of this door to obstruct the officers who were emerging from the building to disperse the rioters. Klein also used his flag to interfere with the officers who were attempting to resecure the door.

           The FBI arrested the two men on March 23, 2021, in Oregon.

           Jonathanpeter Allen Klein is scheduled to be sentenced on Dec. 2, 2024.

           This case was prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for District of Oregon.

           This case was investigated by the FBI’s Portland and Washington Field Offices. Matthew Klein was identified as BOLO (BE on the Lookout) #127R and Jonathanpeter was identified as BOLO #127L and. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

           In the 46 months since Jan. 6, 2021, more than 1,561 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 590 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

           Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.