MIL Security Engine-1

Source: US FBI

CAMDEN, N.J. – Two former executives of a Louisiana compounding pharmacy were found guilty of conspiring to use the pharmacy to defraud New Jersey and military health benefits programs of approximately $100 million, conspiring to commit identity theft in connection with the fraud, and conspiring to transact in the criminal proceeds, U.S. Attorney John Giordano announced.

Christopher Kyle Johnston, 46, of Baton Rouge, Louisiana and Trent Brockmeier, 62, of The Villages, Florida, were convicted on March 10, 2025 of one count of conspiracy to commit wire fraud and health care fraud, one count of conspiring to commit identity theft by fraudulently using a means of identification, and one count of conspiracy to commit money laundering by transacting in criminal proceeds following a six-week trial before U.S. District Judge Edward S. Kiel.

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

Central Rexall Drugs was a pharmacy in Louisiana that prepared compounded medications, which are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient.  In 2013, Johnston and Brockmeier entered into an agreement to take over the management of the pharmacy and expand the compounding business in exchange for 90 percent of the profits.  Brockmeier became chief operating officer of Central Rexall and Johnston became general counsel. 

Johnston and Brockmeier learned that certain insurance plans would reimburse thousands of dollars for a one-month supply of certain compounded medications – including pain, scar, and antifungal creams, as well as vitamin combinations.  The health plans for New Jersey state and local government and education employees, including teachers, firefighters, municipal police officers, and state troopers, covered these medications, as did TRICARE, which insures current and former members of the U.S. military and their families.

Johnston and Brockmeier designed compounded medications and manipulated the ingredients in the medications in order to obtain high insurance reimbursements rather than serve the medical needs of patients.  To determine which ingredients and combinations resulted in high insurance reimbursements, Johnston and Brockmeier directed Central Rexall employees to submit false prescription claims to test out different combinations of ingredients, but they did not have a valid prescription signed by a doctor for these formulas.   Central Rexall submitted these false claims using, without their consent, individuals’ names, dates of birth, and identifying information (including insurance information) from pre-existing Central Rexall prescriptions.

By use of these false claims, Johnston and Brockmeier designed compounded medications with combinations of ingredients that were chosen solely based on the amount of money that insurance would pay rather than on the medications’ ability to serve the medical needs of patients.

Johnston and Brockmeier retained and directed an outside sales force that used various methods to get doctors to prescribe these medications and patients to accept them, including having prescriptions signed without the patient seeing a doctor or knowing about the medications, having medications or refills ordered without the patients’ knowledge, paying patients to accept the medications, and paying doctors to prescribe them.

Johnston and Brockmeier caused approximately $100 million in fraudulent insurance claims for compounded medications that were not medically necessary.  Johnston received approximately $34 million and Brockmeier received approximately $5 million in illicit profits.

50 people have been convicted or pled guilty in the overarching conspiracy.

The health care fraud and wire fraud conspiracy count carries a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gain or loss from the offense.  The conspiracy to commit identity theft count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.  The conspiracy to commit money laundering charge carries a maximum term of imprisonment of 10 years and a fine of $250,000 or twice the gross gain or loss from the offense or not more than twice the amount of the criminally derived property involved in the transactions.  Sentencing is scheduled for July 21, 2025.

U.S. Attorney John Giordano credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jenifer Piovesan  in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s conviction.

The government is represented by Assistant U.S. Attorneys R. David Walk, Jr. and Daniel A. Friedman of the Criminal Division.

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Defense counsel:

Johnston: Lawrence S. Lustberg, Anne Collart, and Andrew Marino, Esqs. (Newark, NJ)

Brockmeier: Marc Agnifilo and David Gelfand, Esqs. (New York, NY)

Source: US FBI

NEWARK, N.J. – A Paterson man was indicted today by a federal grand jury for his role in committing firearms offenses after authorities discovered dozens of illicit firearms, including 3D-printed “ghost” gun frames, machine gun conversion devices, firearm silencers, short-barreled rifles, hundreds of rounds of ammunition, and a 3D printer in his residence, U.S. Attorney John Giordano announced.

Mikhail Gouldson, 36, of Paterson, New Jersey, is charged in a five-count indictment with one count of dealing in firearms without a license, one count of possession of a firearm and ammunition by a convicted felon, one count of possession of machineguns, one count of possession of unregistered firearms and one count of attempted trafficking in firearms. Gouldson, who was previously charged by complaint, will be arraigned on a date to be determined.

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

Over the course of the investigation, law enforcement intercepted multiple shipments of weaponry that were mailed to Gouldson’s residence. After searching Gouldson’s residence, law enforcement recovered large quantities of firearms and ammunition, as well as 3D printing equipment.

The dealing in firearms without a license count carries a maximum penalty of 5 years’ imprisonment. The possession of firearms and ammunition by a convicted felon and attempted trafficking in firearms counts each carries a maximum penalty of 15 years’ imprisonment. The possession of machineguns and unregistered firearms counts each carries a maximum penalty of 10 years’ imprisonment. Each of the counts carries a maximum fine of $250,000.

U.S. Attorney John Giordano credited special agents of the United States Department of Homeland Security, Homeland Security Investigations Newark, under the direction of Ricky J. Patel; the Federal Bureau of Investigation, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark; the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge L.C. Cheeks, Jr.; and the postal inspectors of the United States Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Christopher A. Nielsen, with the investigation leading to today’s charges.

This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act of June 2022.  The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case is also part of the Paterson Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Bergen County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.

The government is represented by Assistant U.S. Attorney Daniel H. Rosenblum of the Narcotics/OCDETF Unit in Newark.

The charges and allegations contained in the indictment 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 admitted to having entered a laboratory business on false pretenses and destroying and stealing that business’ equipment, U.S. Attorney John Giordano announced.

Eric Leykin, 33, of Brooklyn, New York, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to a one-count indictment charging him with wire fraud.

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

Leykin was the CEO of a clinical reference laboratory based in New Jersey. Leykin’s laboratory competed against the victim business, another clinical reference laboratory also based in New Jersey.  On June 30, 2022, Leykin bought and activated a prepaid mobile phone and called an employee of the victim business, claiming to be a technician with a vendor that the victim business used to service its laboratory equipment. On that false pretense, Leykin arranged with the victim business’ employee to come to the victim business on the following day, supposedly to service the victim business’ laboratory equipment. On July 1, 2022, the date of the supposed service appointment, Leykin went to the victim business, entered the premises fraudulently posing as a vendor technician, and proceeded to destroy a significant amount of the victim business’ laboratory and computer equipment. Leykin also stole multiple hard drives housed within the victim business’ equipment.

The wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest. Sentencing is scheduled for July 22, 2025.

U.S. Attorney Giordano credited special agents of the FBI, under the direction of Acting Special Agent in Charge Terence G. Reilly in Newark, with the investigation leading to the guilty plea.  U.S. Attorney Giordano also thanked the Essex County Prosecutor’s Office, under the direction of Prosecutor Theodore N. Stephens II, and the Millburn Police Department, under the direction of Chief Brian Gilfedder, for substantial assistance provided to the investigation.

The government is represented by Assistant U.S. Attorneys Andrew M. Trombly, Deputy Chief of the Cybercrime Unit, and Chana Y. Zuckier of the Bank Integrity, Recovery, and Money Laundering Unit.

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Defense counsel: Albert Dayan, Esq.; Robert DeGroot, Esq.; Oleg Nekritin, Esq.

Source: US FBI

After a two-week trial, a federal jury in Las Vegas yesterday convicted a Cuban citizen and U.S. permanent resident for helping operate an illegal streaming service with one of the largest quantities of infringing works. The defendant, who was convicted of one count of conspiracy to commit criminal copyright infringement, is the eighth and final defendant to be convicted in the case.

According to court documents and evidence presented at trial, Yoany Vaillant, 43, worked as a computer programmer for Jetflicks, an online, subscription-based service headquartered in Las Vegas that permitted users to stream and, at times, download copyrighted television episodes without the permission of relevant copyright owners. At one point, Jetflicks claimed to have 183,285 different television episodes, far more than Netflix, Hulu, Vudu, Amazon Prime, Disney+, or any other licensed streaming service. At Jetflicks, Vaillant worked directly with Kristopher Dallmann and Jared Jaurequi, who were convicted of criminal copyright offenses by a different jury earlier this year.

According to his resume, Vaillant had 15 years of computer programming experience when he started at Jetflicks and knew 27 computer languages. During the four-and-a-half months that Vaillant worked at Jetflicks he made significant contributions to the operation of the service, including fixing issues affecting the automated downloading, processing, syncing, uploading, and streaming of Jetflicks’ inventory of infringing television episodes.

Evidence at trial showed that Vaillant and his co-conspirators scoured the internet to find infringing television programs from pirate sites around the world — including some of the biggest sites specializing in infringing content such as The Pirate Bay, RARBG, altHUB, and Nzbplanet — using automated software and computer scripts that ran nonstop. Vaillant and his co-conspirators reproduced hundreds of thousands of copyrighted television episodes without authorization and streamed the infringing programs to tens of thousands of paid subscribers located throughout the United States, often providing episodes to subscribers the day after the shows originally aired on television. The vast scale of Jetflicks’ piracy affected every significant copyright owner of a television program in the United States and resulted in millions of dollars of losses to the U.S. television show and streaming industries.

Vaillant was one of eight defendants indicted in the Eastern District of Virginia in 2019 for running Jetflicks. In that case, Vaillant’s co-defendant Darryl Polo, a computer programmer, pleaded guilty to four criminal copyright counts and one money laundering count, which related to Jetflicks as well as another illegal streaming site he operated. Co-defendant Luis Villarino, also a computer programmer, pleaded guilty to conspiracy to commit criminal copyright infringement at Jetflicks. The court sentenced Polo to four years and nine months in prison and Villarino to one year and one day in prison.

In February 2022, the court transferred the case to the District of Nevada for trial. The court in the District of Nevada subsequently severed Vaillant’s case from the other remaining five defendants — Dallmann, Jaurequi, Douglas Courson, Felipe Garcia, and Peter Huber — and those defendants were tried in Las Vegas last June. Dallmann ran the Jetflicks operation with assistance from Jaurequi and Courson; Garcia was in charge of customer support and helped obtain television show content; and Huber provided computer programming services. A jury found all five defendants guilty of conspiracy to commit criminal copyright infringement, and Dallmann was also found guilty of three additional counts of criminal copyright infringement and two counts of money laundering by concealment. This was the largest internet piracy case by volume of infringed works — and first illegal streaming case — ever to go to trial.

The court will sentence Dallmann, Courson, Garcia, Jaurequi, Huber, and Vaillant on Feb. 3 and 4, 2025. The court will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Jason M. Frierson for the District of Nevada; and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.

The FBI Washington Field Office investigated the case, with assistance from the FBI Las Vegas Field Office.

Senior Counsel Matthew A. Lamberti, Trial Attorney Michael Christin, and Acting Deputy Chief Christopher S. Merriam of the Criminal Division’s Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Jessica Oliva for the District of Nevada are prosecuting the case.

Source: US FBI

RENO – A Reno resident was sentenced by United States District Judge Miranda M. Du to 10 years in prison to be followed by 20 years of supervised release for coercion and enticement of a teenage boy.

According to court documents, in March 2023, Gregory Weeks (37) engaged in sexually explicit conversations with and sent nude videos of himself masturbating to a 15-year-old boy. The conversations included making plans to have sex in a hotel in Reno. Weeks drove from Utah to Reno and picked the victim up outside the gate leading to the victim’s home. Weeks then drove the victim to a hotel where Weeks made reservations and engaged in sexual activities with the victim.

In July 2024, Weeks pleaded guilty to one-count of coercion and enticement. In addition to imprisonment, Weeks was also ordered to pay $6,150 in restitution to the victim. Under the Sex Offender Registration and Notification Act (SORNA), after his release from prison, Weeks will be required to register as a sex offender.

United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

The FBI-led Northern Nevada Child Exploitation and Human Trafficking Task Force, which is comprised of detectives and investigators from the Sparks Police Department, Washoe County Sheriff’s Office, Nevada Attorney General’s Office, and Homeland Security Investigations (HSI) investigated the case. Assistant United States Attorney Megan Rachow prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children by calling 1-800-THE-LOST (1-800-843-5678) or online at https://report.cybertip.org.

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Source: US FBI

RENO – A federal jury convicted a Reno man on Wednesday for assaulting a federal officer with a deadly or dangerous weapon during the execution of an arrest warrant.

According to evidence presented at trial, on February 16, 2022, Matthew John Nason, 38, fired a handgun in the direction of a Deputy United States Marshal while the Deputy was attempting to serve a valid arrest warrant for Nason and his girlfriend at Nason’s residence.

Following a three-day trial, the jury found Nason guilty of one-count of assault of a federal officer with a dangerous weapon.

United States District Judge Miranda M. Du presided over the jury trial. A sentencing hearing is scheduled for February 4, 2025. Nason faces the maximum statutory penalty of 20 years imprisonment and a fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.

The case was investigated by the FBI. Assistant United States Attorneys Megan Rachow and Randy St. Clair are prosecuting the case.

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