Shore News Network
  • New Jersey
    • Jersey Shore News
    • South Jersey News
    • Philadelphia News
    • North Jersey News
    • Ocean County News
    • Monmouth County News
    • Cape May County News
    • Atlantic County News
    • Burlington County News
    • Mercer County News
    • Toms River News
    • Jackson Township News
    • Regional
  • New York
    • New York City News
  • MD
  • FL
  • PA
Shore News Network
  • DE
  • OH
  • D.C.
  • VA
  • Topics
    • Crime
      • Most Wanted
      • Fire
    • Weird
    • Politics
    • Weather
    • OMG!
    • Traffic
    • Lottery Results
    • Pets
    • US News
    • Politics
    • Weather Reports
    • Weird and Strange News
    • Good News
    • Viral Videos
    • Pets
    • Business News
    • Tech and Gaming
    • Entertainment
    • Food
    • Health and Wellness
    • Travel
    • Schools
    • Sports
    • Top 10 Lists
    • Viral News
    • The Buzz
    • Satire
Top HeadlinesUS and World News

Ukraine girds for Russian offensive in the east

by Reuters April 11, 2022
By Reuters

(Adds unconfirmed reports of chemical weapons use in Mariupol)

By Maria Starkova

LVIV, Ukraine – Ukraine said on Monday it expects Russia to begin an offensive soon in the eastern Donbas region as Moscow shifts its focus to seizing territory there after its invasion force was driven from the gates of Kyiv this month.

Russia’s main target in Donbas is the port of Mariupol, where thousands are believed to have died under a near-seven week siege. Russia is amassing thousands of troops in the area for a new assault, Ukrainian President Volodymyr Zelenskiy said.

The first European Union leader to meet Russian President Vladimir Putin in person since the war began, Austrian Chancellor Karl Nehammer, said following talks in Moscow that the offensive was “evidently being prepared on a massive scale”.

Western sanctions on Moscow will intensify so long as the invasion persists, Nehammer said. “(Telling Putin) once will not be enough. Ten times will not be enough. It might have to be done 100 times,” he told reporters.

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

After withdrawing forces from northern Ukraine, including suburbs of the capital Kyiv lain to waste under its occupation, Russia has turned its sights toward Donbas. It is demanding Ukraine cede control of territory there to separatist fighters, apparently one of Russia’s major goals in what it calls a “special military operation” against its neighbour.

Capturing Mariupol, the main eastern port, would allow Moscow to link troops advancing from the east with those from Russian-annexed Crimea in the south and shift their focus to a new attempt to encircle the main Ukrainian force in the east.

The United States, which warns Moscow is trying to reinforce and resupply troops in Donbas, has sought to pressure Putin to withdraw his forces by banning Russian oil and gas and encouraging allies to follow suit.

But world powers including China and India have refrained from sanctioning Russia. Lured by steep oil discounts, India has purchased more Russian crude since the start of the Feb. 24 invasion than it did for the whole of last year, data compiled by Reuters shows.

In a video call, U.S. President Joe Biden told India’s Prime Minister Narendra Modi “very clearly that it is not in their interest” to increase reliance on Russian energy, White House spokesperson Jen Psaki said.

During a brief portion of the call open to reporters, Modi said he had suggested in recent talks with Russia that Putin and Zelenskiy hold direct negotiations.

MARIUPOL FIGHTING, RAPE AS WEAPON

Thousands have fled from the Donbas region.

In his latest plea for international support, Zelenskiy told South Korea’s parliament that tens of thousands had already been killed in Mariupol, a figure that has not been confirmed independently.

Russia has repeatedly denied attacking civilians.

There were unconfirmed media reports on Monday suggesting chemical weapons were used in Mariupol. Zelenskiy warned in his nightly video address on Monday of potential Russian use of chemical weapons, but did not say that they had been used.

The number of people leaving Mariupol has fallen because Russian forces slowed pre-departure checks, said Petro Andryushchenko, an aide to the mayor of the city.

Around 10,000 people were awaiting screening by Russian forces, he said. Russia does not allow military personnel to leave with civilian evacuees. There was no comment from Moscow, which has previously blamed Ukraine for blocking evacuations.

Ukrainian fears intensified last week after 57 people were killed in a Russian missile strike on a train station in Donbas, where thousands were trying to flee the expected advance, Ukrainian officials said.

Moscow denied blame for the missile strike as well as Ukrainian and Western accusations that Russian forces committed war crimes north of Kyiv.

The United Nations is hearing accounts of rape and violence by both Russian and Ukrainian forces, U.N. officials said.

Kateryna Cherepakha, president of La Strada-Ukraine, said the rights group’s emergency hotlines had received calls accusing Russian soldiers of nine cases of rape, involving 12 women and girls.

“This is just the tip of the iceberg,” she told the U.N. Security Council via video. “We know and see – and we want you to hear our voices – that violence and rape is used now as a weapon of war by Russian invaders in Ukraine.”

Russia’s deputy U.N. ambassador denied the allegations and accused Ukraine and allies of “a clear intention to present Russian soldiers as sadists and rapists.”

Ukraine’s U.N. mission did not respond to a request for comment on allegations of sexual violence by Ukrainian forces and civil defence militias.

‘NO PAUSE’

Russia’s foreign minister, Sergei Lavrov, said Moscow would not pause the fighting for any new round of peace talks, which last convened on April 1.

“A decision was made that during the next rounds of talks, there would be no pause (in military action) so long as a final agreement is not reached,” Lavrov said.

Britain’s defence ministry said Russian shelling continued in Donbas. But Ukrainian forces had beaten back several assaults and destroyed Russian tanks, vehicles and artillery equipment, it added.

The governor of another eastern region, Luhansk, told Ukrainian television that shelling was increasing day by day and urged all civilians to evacuate.

“Those that wanted to leave have already left, while now many are left in bomb shelters who are perhaps frightened to come out of the shelters, or scared to lose their possessions,” Governor Serhiy Gaidai said.

(Reporting by Reuters bureaus; Writing by Angus MacSwan, Peter Graff and Rami Ayyub; Editing by Nick Macfie, Tomasz Janowski, Grant McCool and Lincoln Feast.)

tagreuters.com2022binary_LYNXNPEI3A01T-BASEIMAGE

tagreuters.com2022binary_LYNXNPEI3A01U-BASEIMAGE

tagreuters.com2022binary_LYNXNPEI3A01S-BASEIMAGE

tagreuters.com2022binary_LYNXNPEI3A01X-BASEIMAGE

tagreuters.com2022binary_LYNXNPEI3A01W-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Financial News

Pendal says Perpetual’s offer significantly undervalues investment manager

by Reuters April 11, 2022
By Reuters

(Reuters) -Pendal Group Ltd said on Tuesday the A$2.40 billion ($1.78 billion) non-binding takeover offer from asset manager Perpetual Ltd “significantly undervalued” the Australian investment manager.

The A$6.23 per share offer for Pendal, a former unit of Westpac Banking Corp, was first disclosed on April 4 and was at a 39.2% premium to the stock’s close on April 1.

Pendal said that after assessing Perpetual’s cash-and-stock proposal, it has determined that the offer was not in the best interests of its shareholders.

Perpetual did not immediately respond to a Reuters request for comment.

($1 = A$1.35)

(Reporting by Harish Sridharan and Savyata Mishra in Bengaluru; Editing by Maju Samuel)

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Top HeadlinesUS and World News

Two men accused of impersonating U.S. federal agents seek release from jail

by Reuters April 11, 2022
By Reuters

By Sarah N. Lynch

WASHINGTON -Defense attorneys for two men accused of impersonating federal law enforcement agents and supplying Secret Service personnel with gifts asked a U.S. judge on Monday to release their clients from jail pending trial, saying the government’s case was flimsy and lacked evidence they pose a threat.

Prosecutors “have jumped to the wildest conspiracy theories imaginable,” said Michelle Peterson, an attorney representing Arian Taherzadeh, 40, who is accused along with Haider Ali, 35.

The two men were arrested last week for impersonating Department of Homeland Security agents and four U.S. Secret Service members were suspended from duty, on suspicion the defendants supplied or offered the Secret Service agents rent-free apartments and other gifts.

Those who were offered gifts included an agent assigned to protect President Joe Biden’s wife Jill Biden.

At a detention hearing on Friday, prosecutor Joshua Rothstein asked U.S. Magistrate Judge Michael Harvey to detain both defendants, but Harvey resumed the hearing again on Monday amid lingering questions.

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

Then at Monday’s hearing, Harvey said he needed still more time before issuing a ruling and expressed skepticism that the government’s request for detention was the only way to address concerns the defendants could go on impersonating police.

“If I were to put both of these gentlemen under house arrest, what’s the realistic likelihood …that they could go and impersonate another police officer during the pendency of this case?” he asked.

Harvey will further question all the parties on Tuesday and aimed to rule on the matter later the same day.

The government has pointed to a cache of weapons and other equipment seized by the FBI as evidence the men pose a threat. The items include firearms, surveillance equipment, tools used to manufacture identities and tactical gear.

Prosecutors have said Ali traveled to the Middle East in recent years and bragged of having ties to Pakistani intelligence, concerns they say justify detaining him as a flight risk.

Ali’s attorney Gregory Smith on Monday said the government’s claims about Ali’s possible ties to Pakistani intelligence were “utterly false and preposterous,” and that his client traveled to the Middle East to visit religious shrines.

(Reporting by Sarah N. Lynch; Editing by Howard Goller)

tagreuters.com2022binary_LYNXNPEI3A0PC-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Financial News

Buffett needed two weeks for $11.6 billion Alleghany purchase, balked at Goldman fee

by Reuters April 11, 2022
By Reuters

By Jonathan Stempel

NEW YORK – Warren Buffett needed just two weeks to put together Berkshire Hathaway Inc’s $11.6 billion takeover of Alleghany Corp, its largest acquisition in six years, even as he balked at paying the insurer’s banking fee, a regulatory filing on Monday shows.

Alleghany said its Chief Executive Officer Joseph Brandon met with Buffett for dinner in New York City on March 7, where after some “casual conversation” Buffett offered $850 per share in cash for the company, less the fee for bankers at Goldman Sachs.

Five days later, Brandon and Alleghany Chairman Jefferson Kirby met Buffett in Omaha, Nebraska, where Kirby asked Buffett to make a higher offer, pay Goldman’s $27 million fee, or use Berkshire stock to fund part of the purchase.

“Mr. Buffett reiterated the terms of his original offer, indicating firmly he did not intend to change his position on those points,” the filing said.

Berkshire, which is based in Omaha, ultimately agreed to pay $848.02 per share, with the $1.98 difference from $850 accounting for Goldman’s fee.

Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.

The merger was announced on March 21. Alleghany got 25 days to potentially find a better offer. Goldman has since asked 31 potential bidders about their interest, the filing said. The “go-shop” period ends on April 14.

Brandon led Berkshire’s General Re unit from 2001 to 2008.

Buffett, 91, has long objected to the costs of doing business on Wall Street.

He rarely uses investment banks at Berkshire, relying on 98-year-old Vice Chairman Charlie Munger for help in major capital decisions.

Buffett has praised former Goldman banker Byron Trott, working with him on purchases of food distributor McLane Co from Walmart Inc and a large stake in truck stop operator Pilot Flying J from the family of billionaire Jimmy Haslam.

The Alleghany purchase is expected to close in the fourth quarter, pending regulatory and Alleghany shareholder approvals.

Berkshire’s last major acquisition was the $32.1 billion purchase of aircraft and industrial parts maker Precision Castparts in 2016.

(Reporting by Jonathan Stempel in New York; Editing by Bernard Orr)

tagreuters.com2022binary_LYNXNPEI3A0VH-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Top HeadlinesUS and World News

Ex-police officer found guilty in second Capitol riot jury trial

by Reuters April 11, 2022
By Reuters

By Jan Wolfe

WASHINGTON -An off-duty police officer who breached the U.S. Capitol during the Jan. 6, 2021, attack was found guilty of multiple felonies on Tuesday, a notable victory for prosecutors in one of the first trials relating to the attack.

According to court documents, a federal jury in the District of Columbia found Thomas Robertson of Rocky Mount, Virginia, guilty on all six charges he faces, including obstructing an official proceeding of the U.S. Congress.

A judge will impose a sentence on Robertson at a later court hearing.

Robertson was a sergeant in Rocky Mount’s police department at the time of the Capitol riot.

Robertson entered the Capitol along with another former police officer, Jacob Fracker, who pleaded guilty to similar charges last month.

Fracker testified on behalf of the prosecution in its case against Robertson after reaching a plea deal with the government last month.

About 800 people have been charged with crimes relating to the Jan. 6 attack. Robertson was only the second defendant to gamble on a jury trial.

Last year, a judge ordered Robertson to be detained in jail pending trial, after prosecutors alleged Robertson was still buying firearms and ammunition online after his arrest.

The first Jan. 6 jury trial also ended up a victory for prosecutors. Last month, a different jury in the District of Columbia found Guy Reffitt of Texas guilty of all five of the felony charges he faced, including bringing a gun onto the Capitol grounds and obstructing an official proceeding.

Last week, a federal judge issued the first acquittal in a criminal trial stemming from the Jan. 6 attack.

Following a non-jury trial, U.S. District Judge Trevor McFadden said prosecutors failed to prove their case against a New Mexico man facing misdemeanor trespassing charges.

McFadden accepted arguments by the defendant, Matthew Martin, that he did not know he was breaking the law when he entered the Capitol complex.

Thousands of Trump’s supporters stormed the Capitol, battling police and sending lawmakers running for their lives after Trump in a fiery speech near the White House repeated his false claims that his election defeat was the result of widespread fraud.

Multiple courts, state election officials and members of Trump’s own administration have rejected that claim as untrue.

(Reporting by Jan Wolfe; Additional reporting by Sarah N. Lynch; Editing by David Gregorio)

tagreuters.com2022binary_LYNXNPEI3A0V8-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Financial News

Australia’s Lynas posts record revenue on strong demand for rare earths

by Reuters April 11, 2022
By Reuters

(Reuters) -Australia’s Lynas Rare Earths on Tuesday posted a record quarterly revenue as demand for the specialized metals it mines surged amid a global push to electrify vehicles and curb carbon emissions.

Demand for neodymium and praseodymium (NdPr), among the most important minerals that Lynas mines, has soared in recent years as countries and companies pivot towards cleaner energy to tackle climate change.

The minerals are used by automakers to make magnets for electric vehicles. Rare earths are also used in a wide range of goods including iPhones and laptops.

“The market price for NdPr continued to strengthen during the March quarter and our customers continue to advise that demand for rare earths remains strong, particularly in automotive industry,” Chief Executive Officer Amanda Lacaze said in a statement.

The world’s largest producer of rare earths outside China said revenue rose to A$327.7 million ($243.15 million) in the three months to March 31, from A$110 million a year earlier.

The miner also posted a record NdPr production of 1,687 tonnes during the quarter, up from 1,359 tonnes from a year earlier.

Lynas’ full product range garnered an average selling price of A$67.4 per kilogram (kg), up from A$35.5 per kg from the previous year.

($1 = 1.3477 Australian dollars)

(Reporting by Tejaswi Marthi in Bengaluru;Editing by Vinay Dwivedi)

tagreuters.com2022binary_LYNXNPEI3A0UZ-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Financial News

Wall Street stumbles as surging Treasury yields slam growth stocks

by Reuters April 11, 2022
By Reuters

By Stephen Culp

NEW YORK – Wall Street closed sharply lower on Monday as investors started the holiday-shortened week in a risk-off mood, as rising bond yields weighed on market-leading growth stocks ahead of crucial inflation data.

All three major U.S. stock indexes ended deep in negative territory, with tech and tech-adjacent stocks pulling the Nasdaq down 2.2%.

“There’s been two kinds of sell-offs in the past month or two,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. “There’s the rising yields which primarily affects tech and other growth stocks, and then there’s the recession/economic slowdown sell-off that affects energy and various materials’ names.

“Today you’re seeing both.”

GRAPHIC – Growth stocks vs the 10-year Treasury yield https://graphics.reuters.com/USA-STOCKS/jnpwekdrbpw/growthand10y.png

The benchmark 10-year U.S. Treasury yield hovered near a three-year high ahead of key inflation data expected on Tuesday. [US/]

The U.S. Federal Reserve has vowed to aggressively tackle scorching inflation, and market participants largely expect a series of 50-basis-point interest rate hikes from the central bank in the coming months.

“All eyes on an inflation number that’s probably going to be the highest in 40 years, which could prompt higher and more frequent (interest) rate hikes from the Fed,” Tuz added.

The Labor Department’s CPI report expected on Tuesday for any sign the inflation wave has crested. Analysts expect the report will show an 8.5% year-on-year growth in consumer prices, the hottest reading since 1981.

Ongoing geopolitical strife also helped prompt the flight to safety.

Ukraine said it expected Russia to launch a huge new offensive soon as the most serious conflict in Europe since the Balkan wars of the 1990s wore on, despite ongoing peace negotiations.

The Dow Jones Industrial Average fell 413.04 points, or 1.19%, to 34,308.08, the S&P 500 lost 75.75 points, or 1.69%, to 4,412.53 and the Nasdaq Composite dropped 299.04 points, or 2.18%, to 13,411.96.

All 11 major sectors in the S&P 500 ended the session in the red, with energy shares suffering the biggest percentage losses.

First-quarter earnings season bursts through the starting gate later this week, with big banks leading the way.

Analysts have curbed their first-quarter optimism. On aggregate, annual S&P 500 earnings growth is estimated to be 6.1%, down from 7.5% at the beginning of the year.

Twitter Inc advanced 1.7% after its biggest shareholder, Tesla Inc Chairman Elon Musk rejected the social media company’s offer to join its board of directors.

As for Tesla, data showed sales of its electric vehicles plunged in China last month due to that country’s efforts to curb COVID-19 outbreaks, sending its shares down 4.8%.

Media and streaming firm Warner Bros Discovery Inc, formed from the $43 billion merger of Discovery Inc and assets of AT&T Inc, whipsawed in its first day of trading, ending up 1.4%.

Nvidia Corp slid 5.2% after Baird downgraded the chipmaker’s stock to “neutral” from “outperform,” citing order cancellations and potential demand slowdown.

Falling crude prices helped keep commercial air carriers aloft. The S&P 1500 Airline index rose 2.7%. [O/R]

Chinese regulators approved its first gaming license since July of last year, boosting U.S.-listed shares of DouYu International Holdings, Huya, NetEase Inc and Bilibili by between 2.1% and 7.2%.

Declining issues outnumbered advancing ones on the NYSE by a 2.64-to-1 ratio; on Nasdaq, a 2.08-to-1 ratio favored decliners.

The S&P 500 posted 34 new 52-week highs and 10 new lows; the Nasdaq Composite recorded 37 new highs and 306 new lows.

Volume on U.S. exchanges was 11.03 billion shares, compared with the 12.71 billion average over the last 20 trading days.

(Reporting by Stephen Culp; additional Reporting by Bansari Mayur Kamdar and Praveen Paramasivam in Bengaluru; Editing by Lisa Shumaker)

tagreuters.com2022binary_LYNXNPEI3A0DK-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Financial News

New Zealand business confidence worsens as COVID continues to impact

by Reuters April 11, 2022
By Reuters

By Lucy Craymer

WELLINGTON -New Zealand business confidence and demand worsened in the first quarter of this year due to the ongoing damage the COVID-19 outbreak is having on the economy, a private think tank said on Tuesday.

A net 40% of firms surveyed expected general business conditions to deteriorate compared with 28% pessimism in the previous quarter, the New Zealand Institute of Economic Research’s (NZIER) quarterly survey of business opinion (QSBO) showed.

On a seasonally adjusted basis, 33% expected business conditions to worsen, versus 35% pessimism recorded in the previous period. The survey’s measure of capacity utilisation rose to 97.1%, from the previous quarter’s 92.7%.

The manufacturing sector is the least pessimistic of the sectors survey but still face many challenges as Omicron’s spread impacts deliveries, NZIER said in its report.

A net 56% reported increased costs in the March quarter, it said. Overall, businesses are feeling more cautious in an environment of acute labour shortages and intense cost pressures, the report said.

(Reporting by Lucy CraymerEditing by Chris Reese and Sandra Maler)

tagreuters.com2022binary_LYNXNPEI3A0UU-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Top HeadlinesUS and World News

Walgreens flooded Florida with addictive opioids, lawyer tells jury

by Reuters April 11, 2022
By Reuters

By Dietrich Knauth

(Reuters) -Walgreens Boots Alliance Inc supplied billions of opioid pills to drug addicts and criminals, contributing to an addiction epidemic in Florida, a lawyer for the state said on Monday in a civil trial against the pharmacy chain.

Walgreens filled one in four opioid prescriptions in Florida between 1999 and 2020, and failed to investigate red flags that could have prevented drugs from being diverted for illegal use, the state’s lawyer Jim Webster said as jurors heard opening statements in the trial held in New Port Richey.

“Walgreens was the last line of defense in preventing improper distribution of opioids,” Webster said. “It was the entity that actually put the opioids in the hands of people addicted to opioids and the hands of criminals.”

Walgreens, which has denied the allegations, is the final remaining defendant in the trial taking place before Judge Kimberly Sharpe Byrd in Pasco County Circuit Court.

Florida previously reached $878 million in settlements with CVS Health Corp, Teva Pharmaceutical Industries Ltd, Abbvie Inc’s Allergan unit and Endo International Plc.

Steven Derringer, Walgreen’s attorney, said in his opening statement that the pharmacy chain filled prescriptions from doctors and did not ignore red flags that allowed opioids to flood Florida.

“There are so many pills because doctors have written so many prescriptions for pain medicine,” Derringer said.

Florida has spent more than $14 billion to address the opioid crisis in the state, and opioid overdoses have caused nearly 40,000 deaths from 1999 to 2020, Webster told jurors.

Walgreens deserves a “huge chunk of the blame” for overdose deaths and the state’s increased spending, Webster said.

Derringer countered that others should be blamed for the state’s opioid epidemic including drug manufacturers who lied to pharmacies about addiction risk, U.S. Food and Drug Administration officials who approved the sale of opioids for chronic pain and doctors who wrote unnecessary prescriptions.

Florida has collected more than $3 billion in opioid litigation against drugmakers, distributors and pharmacies, according to Attorney General Ashley Moody. Most will be spent on efforts to mitigate the opioid crisis in the state.

In March, Walgreens rival CVS Health Corp agreed to pay Florida $484 million. Drugmakers Teva will pay $194.8 million, Allergan will pay $134.2 million and Endo will pay $65 million.

Walgreens previously argued it was immune from being sued based on a mere $3,000 settlement it reached with Florida in 2012, following an investigation into its record-keeping policies and efforts to prevent the diversion of opioid drugs.

Byrd ruled in March that the 2012 settlement addressed only a single record-keeping violation and did not protect Walgreens from other claims. The company has appealed her ruling.

While a large portion of the more than 500,000 U.S. deaths from overdoses in the past two decades were caused by the powerful opioid fentanyl and other illicit drugs, overuse of prescription pain medicines put countless Americans on the path to addiction.

(Reporting by Dietrich Knauth in New York; Editing by Bill Berkrot, Will Dunham and Noeleen Walder)

tagreuters.com2022binary_LYNXNPEI3A0BC-BASEIMAGE

tagreuters.com2022binary_LYNXNPEI3A0BE-BASEIMAGE

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Middletown Man Sentenced to Over 8 Years of Federal Prison for Selling Methamphetamine and Fentanyl and Illegally Possessing Ammunition

by DOJ Press April 11, 2022
By DOJ Press

WILMINGTON, Del. – A Middletown man was sentenced on April 6, 2022 to 97 months in prison for possessing methamphetamine and fentanyl with intent to distribute, as well as possession of ammunition by a person prohibited. 

Leon Ransom, 31, was arrested by the Drug Enforcement Administration (“DEA”) after multiple sales of methamphetamine and a separate sale of fentanyl to a DEA confidential source.    Following a search of the home in which Ransom was living, the DEA found almost four additional ounces of crystal methamphetamine, over two ounces of fentanyl, three ounces of cocaine, two scales, cutting agents, and a box of ammunition.  The methamphetamine sold and possessed by Ransom was chemically tested by the DEA and found to be 100% pure. 

David C. Weiss, U.S. Attorney for the District of Delaware made the announcement after sentencing by U.S. District Judge Maryellen Noreika.  U.S. Attorney Weiss commented, “Methamphetamine and fentanyl are two of the deadliest drugs plaguing our streets today.  Peddling these poisons endangers the safety of our community.  My office will continue to seek significant prison sentences for those who profit from illegal drug sales.”

“As U.S. Attorney Weiss said, illicit fentanyl and methamphetamine are two street drugs that have had a disproportionately destructive effect on our communities,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “That Ransom was selling distribution quantities of both and had gun ammunition shows how dangerous his criminal conduct was.”

Assistant U.S. Attorney Alexander Ibrahim prosecuted the case, which was investigated by the DEA. 

A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-69-MN.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Detroit Man Sentenced to Prison for Distributing Fentanyl

by DOJ Press April 11, 2022
By DOJ Press

HUNTINGTON, W.Va. – A Detroit man was sentenced today to one year and three months in federal prison, to be followed by three years of supervised release, for the distribution of fentanyl.

According to court documents, Martez D. Foy, 29, admitted he sold approximately 5.2 grams of fentanyl to a confidential informant on March 10, 2021. He also admitted to selling approximately 5.1 grams of fentanyl to a confidential informant on April 13, 2021. Both sales occurred in Huntington.

United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) and the Cabell County Sheriff’s Office for conducting the investigation.

United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00222.

 

 

###

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Jefferson County woman sentenced for drug charge

by DOJ Press April 11, 2022
By DOJ Press

MARTINSBURG, WEST VIRGINIA – Kia Johnson, of Ranson, West Virginia, was sentenced today to six months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.

Johnson, 25, pleaded guilty in October 2020 to one count of “Aiding and Abetting Unlawful Use of Communication Facility.” Johnson admitted to using a phone to help distribute Phencyclidine (PCP) in September 2019 in Berkeley and Jefferson Counties.

Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.

U.S. District Judge Gina M. Groh presided.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Laredo man sentenced for attempting to smuggle assault rifles into Mexico

by DOJ Press April 11, 2022
By DOJ Press

LAREDO, Texas – A 29-year-old local man has been sent to prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.

Manual Dominquez, Laredo, pleaded guilty Aug. 12, 2021.

Today, U.S. District Judge Diana Saldana ordered he serve 87 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the Judge noted Dominguez’s violent criminal history, the cache of weapons and ammunition in his home and the fact he was attempting to smuggle high-powered rifles into Mexico.

Dominquez was taken into custody following an undercover operation in May 2021. Someone in Mexico had sent him to pick up two Barrett .50 caliber rifles at a Home Depot parking lot. Upon arrival, Dominguez inspected the firearms and provided three stacks of $9,900, wrapped in rubber bands.

Dominguez loaded the first firearm into the back seat of his car, at which time he was taken into custody. Authorities conducted a search at his residence where they found more firearms and over 6,000 rounds of ammunition. 

The rifles were intended to go to members of the Cartel De Norte, a violent drug cartel in Mexico.

Dominguez was previously convicted in Webb County of aggravated assault with a deadly weapon. As such, he is prohibited from possessing firearms or ammunition per federal law.

He was permitted to remain on bond and voluntarily report to a U.S. Bureau of Prisons facility to be determined in the near future.

The Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorneys Anthony J. Evans and Brandon Bowling prosecuted the case.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Lowery appointed U.S. Attorney

by DOJ Press April 11, 2022
By DOJ Press

HOUSTON – Jennifer B. Lowery has taken the oath of office to remain as chief federal law enforcement officer for the Southern District of Texas (SDTX).

“I am extremely grateful to the district judges for allowing me to continue to serve the SDTX and our community,” said Lowery. “It is an honor and a privilege to be the U.S. Attorney (USA). I take pride in our office and the work it does in support of our law enforcement partners, our mutual mission to protect our citizens and hold accountable those who commit federal crimes. Likewise, I am blessed to work alongside the dedicated employees in this district who are devoted to public service and to our office’s core values of professionalism, ethics and civility.”

Lowery was first appointed Acting USA Feb. 22, 2021, upon the resignation of former USA Ryan K. Patrick. Attorney General Merrick Garland then appointed Lowery to be the interim USA Dec. 26 and was to serve in that role for 120 days. The district judges in the U.S. District court for the SDTX then voted to appoint Lowery as U.S. Attorney until the appointment and qualification of a successor to the SDTX as provided by law.

Chief U.S. District Judge Lee H. Rosenthal administered the oath of office April 7.

Lowery joined the SDTX in 2008, but has been with the Department of Justice since 2000. She first served as a Special Assistant U.S. Attorney and then an Assistant U.S. Attorney (AUSA) in the Eastern District of Texas. During this time, she was detailed to Washington D.C. and New York, New York, as a hearing officer for the 9/11 Victims’ Compensation Fund. She later worked in Washington D.C. in the Office of the Deputy Attorney General and Executive Office for US Attorneys, in both their Counsel to Director’s Office and General Counsel’s Office.

While with the SDTX, Lowery has served as AUSA in the Major Offenders, Fraud and Organized Crime Drug Enforcement Task Force Sections. She has also held the titles of First Assistant USA, Executive AUSA, criminal chief, deputy criminal chief of the Program Fraud Section, acting deputy criminal chief of the Major Fraud Section, senior litigation counsel and ethics advisor.

Prior to her federal service, Lowery was an Assistant Criminal District Attorney in the Jefferson County District Attorney’s Office for eight years where she prosecuted hundreds of cases, including four capital murders. She served as a grand jury attorney, drug intake lawyer, drug diversion lawyer, misdemeanor chief and attorney and felony attorney.

Lowery holds a B.A. from Texas State University (formerly Southwest Texas State University) and a J.D. from South Texas College of Law in Houston.

Lowery was honored to have her mother, niece, mentor, members of the judiciary and bar and various employees of the SDTX in attendance as she took the oath of office.

Pursuant to Vacancy Reform Act, the second in the chain of command, generally the First USA, automatically begins serving as Acting USA upon exit of a presidentially-appointed USA and serves for up to 300 days. If a new USA is not in place by that time, the Attorney General has the authority to name an interim USA to serve for up to 120 days. At that time, if no one has been presidentially-appointed to that position, the district judges vote to name someone as USA until the appointment and qualification of a successor as provided by law.

The SDTX is among the busiest in the nation. With more than 200 attorneys, the office serves more than nine million people in 43 counties from Houston to the Mexican border and prosecutes more federal criminal cases than most other districts. The SDTX currently comprises seven divisions with federal district courts in Houston, Galveston, Victoria, Corpus Christi, Brownsville, McAllen and Laredo.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Huntington Man Pleads Guilty to Federal Gun Crime

by DOJ Press April 11, 2022
By DOJ Press

HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to being a felon in possession of a firearm.

According to court documents and statements made in court, on December 30, 2021, officers with the Huntington Police Department observed a vehicle at the 3rd Avenue Speedway. The officers observed the driver and a passenger of the vehicle smoking marijuana.

The passenger, Jonathan Lee Sturkey, 37, was asked to step out of the vehicle. Sturkey admitted to the officers that he had a firearm. Officers retrieved a Smith & Wesson .38-caliber revolver from Sturkey’s left coat pocket. Sturkey was aware that he was prohibited from possessing a firearm because of his 2011 felony drug conviction in U.S. District Court for the Southern District of West Virginia.

Sturkey is scheduled to be sentenced on July 18, 2022, and faces up to 10 years in prison.

United States Attorney Will Thompson made the announcement and commended the Huntington Police Department for conducting the investigation.

United States District Judge Robert C. Chambers presided over the hearing.  Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-21.

 

 

###

 

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Morgantown woman sentenced for tax fraud

by DOJ Press April 11, 2022
By DOJ Press

CLARKSBURG, WEST VIRGINIA – Diann Carol Clark, of Morgantown, West Virginia, was sentenced today to five years of probation, with the first six months on home confinement, for a payroll tax fraud charge, United States Attorney William Ihlenfeld announced.

Clark, 59, pleaded guilty in November 2021 to one count of “Willful Failure to Collect or Pay Over Employment Tax.” Clark was employed by Alpha Associates, Inc. in Morgantown. Clark was an office manager and bookkeeper at Alpha Associates, where she managed payroll between 2014 and 2018. Clark was responsible for collecting and paying over to the IRS Social Security, Medicare, and income taxes withheld from the wages of Alpha Associates employees. Despite knowing the firm withheld these payroll taxes from its employees’ paychecks, Clark did not pay over approximately $1,900,000, in such taxes to the IRS.

Assistant U.S. Attorney Danae DeMasi-Lemon and Trial Attorney Kevin Schneider of the Justice Department’s Tax Division prosecuted the case on behalf of the government. The IRS investigated.

Chief U.S. District Judge Thomas S. Kleeh presided.

 

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Berkeley County man sentenced for role in drug conspiracy

by DOJ Press April 11, 2022
By DOJ Press

MARTINSBURG, WEST VIRGINIA – Brandon Eugene Corbin, of Inwood, West Virginia, was sentenced today to 70 months of incarceration for his role in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.

Corbin, 36, pleaded guilty in November 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, and Cocaine Base.” Corbin admitted to working with others to distribute controlled substances from January to September 2019 in Berkeley and Jefferson Counties and elsewhere.

Corbin was a frequent re-distributor of drugs supplied to him by another in the conspiracy.  During the investigation, he sold heroin, fentanyl, cocaine base, and PCP to his own customers in the Eastern Panhandle of West Virginia.  During a traffic stop that occurred in September 2019, he was found with more than 18 grams of fentanyl.

This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep.  This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 

OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated. 

U.S. District Judge Gina M. Groh presided.

Find the related case here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

New Jersey man sentenced for role in drug trafficking ring

by DOJ Press April 11, 2022
By DOJ Press

MARTINSBURG, WEST VIRGINIA – Braheem Sallie, of Camden, New Jersey, was sentenced today to 60 months of incarceration for his role in a drug conspiracy that spanned several states, United States Attorney William Ihlenfeld announced.

After a three-day trial in October 2021, Sallie was found guilty of one count of “Conspiracy to Possess with Intent to Distribute and to Distribute 100 Grams or More of Heroin and 40 Grams or More of Fentanyl,” one count of “Unlawful Use of Communication Facility,” and one count of “Aiding and Abetting Travel Act – Distribution of Proceeds.” Sallie worked with others to distribute 100 grams or more of heroin and 40 grams or more of fentanyl from June 2019 to November 2019 in Berkeley and Jefferson Counties and elsewhere.

Co-conspirators in West Virginia would wire money for drug payments to Sallie and another in Camden, New Jersey.  This trafficking ring involved multiple trips by West Virginia co-conspirators to Camden, New Jersey to obtain large amounts of heroin and fentanyl that were distributed and intended to be redistributed in West Virginia. This case involved nearly 100 grams of fentanyl and more than 137 grams of heroin.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the cases on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated. The Berkeley County Prosecuting Attorney’s Office assisted.

U.S. District Judge Gina M. Groh presided.

Find the related press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine

 

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Illegal alien sentenced for drug charge

by DOJ Press April 11, 2022
By DOJ Press

CLARKSBURG, WEST VIRGINIA – Lucio Javier Escobedo Fernandez, a Mexican national, was sentenced today to 63 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.

Fernandez, 28, pleaded guilty in November 2021 to one count of “Conspiracy to Distribute Methamphetamine.” Fernandez admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.

Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.

Senior U.S. District Judge Irene M. Keeley presided.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Berkeley County man sentenced for drug charge

by DOJ Press April 11, 2022
By DOJ Press

MARTINSBURG, WEST VIRGINIA – James T. Cogle, of Martinsburg, West Virginia, was sentenced today to 15 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.

Cogle, 53, pleaded guilty in November 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Base and Cocaine Hydrochloride.” Cogle admitted to working with others to distribute drugs from July 2018 to June 2021 in Jefferson County and elsewhere.

Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police; Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office; Ranson Police Department, the Charles Town Police Department; and the Martinsburg Police Department.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

U.S. District Judge Gina M. Groh presided.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

East St. Louis Man Sentenced to 17 Years in Prison for Distribution of Methamphetamine and Money Laundering

by DOJ Press April 11, 2022
By DOJ Press

BENTON, Ill. – Martin Cooper, 31, of East St. Louis, Illinois, was sentenced to 210 months in 
prison on Thursday, April 7, 2022, for his role in a Conspiracy to Distribute Methamphetamine and 
Money Laundering. The offenses occurred in St. Clair County and throughout the Southern District of 
 Illinois. Cooper pleaded guilty to both charges in October 2021. The United States Postal  
Inspection  Service  initiated  an  investigation  in  January  2019,  after  noticing  numerous 
suspicious packages being sent to and from addresses in East St. Louis, Illinois, and Phoenix, 
Arizona. During the investigation, agents learned that Jose Angulo shipped packages containing 
methamphetamine to the East St. Louis area to Martin Cooper.

According  to  court  documents,  Cooper  admitted  to  receiving  narcotics  from  Jose  and  
Steven Angulo in 2019 and acknowledged a package containing over two kilograms of methamphetamine 
destined for an address in East St. Louis was for him. Cooper also admitted to transferring money 
to the Angulos via Walmart, and by mailing currency and money orders to them.

Jose Angulo was sentenced on March 24, 2022, to 30 years in prison for Conspiracy to Distribute 
Methamphetamine, Money Laundering and Distribution of Methamphetamine.

The  investigation  was  conducted  by  the  United  States  Postal  Inspection  Service,  the  
Drug Enforcement Administration, and the Internal Revenue Service-Criminal Investigation.
The case was prosecuted by Assistant United States Attorney Laura Reppert.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

New Haven Man Sentenced to Federal Prison for Narcotics Distribution Offense

by DOJ Press April 11, 2022
By DOJ Press

Leonard C Boyle, United States Attorney for the District of Connecticut, announced that DARRYL RUSSELL, 33, of New Haven, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 27 months of imprisonment, followed by three years of supervised release, for distributing heroin, cocaine and crack.

According to court documents and statements made in court, on March 13, 2021, New Haven Police encountered James Lee as he was sitting in a car at a gas station.  The car had fled from police on March 8.  A search of Lee’s person revealed $3,815 and a search of the car revealed $3,443.  Officers then found a hidden compartment in the vehicle’s center counsel that contained heroin, crack and cocaine packaged for distribution, and a loaded 9mm handgun.

On the morning of April 5, 2021, a New Haven Police detective traveling in an unmarked police cruiser in the area of Orange Street and Wall Street identified another car that had fled from West Haven Police during an attempted traffic stop on April 1.  The detective followed the car to a location of Brown Street, where he observed occupants of the vehicle engage in what appeared to be street-level drug transactions, and then to a location on Elm Street.  On Elm Street, Lee, who had been released on bond, and Russell exited the car and entered a building.  Lee was arrested after he exited the building.  Russell ignored commands not to leave the scene but was apprehended a short distance away after he was found hiding in a trash can.  A search of their car revealed heroin, crack and cocaine packaged for distribution, and more than $2,000 in cash.

Russell has been detained since May 21, 2021.  On that date, he possessed additional narcotics packaged for distribution and more than $1,000 in cash.  On September 14, 2021, he pleaded guilty to possession with intent to distribute, heroin, cocaine and cocaine base (“crack”).

Lee pleaded guilty to the same charge and, on February 14, 2022, he was sentenced to 46 months of imprisonment.

This matter was investigated by the New Haven Police Department and the Federal Bureau of Investigation.  The was prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

United States Files Suit Against Methodist Le Bonheur Healthcare And Methodist Healthcare-Memphis Hospitals

by DOJ Press April 11, 2022
By DOJ Press

NASHVILLE – The United States today filed a complaint in intervention alleging violations of the False Claims Act (FCA) and the Anti-Kickback Statute (AKS) by Methodist Le Bonheur Healthcare (MLH) and Methodist Healthcare Memphis Hospitals (collectively, Methodist), for paying unlawful kickbacks to West Clinic, P.C.  (West) in exchange for West’s patient referrals, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. 

The government began investigating the wrongdoing alleged in today’s complaint in response to a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.  The qui tam action was initially filed on May 30, 2017, by Jeffrey H. Liebman, the former President of Methodist University Hospital.  In December 2019, David M. Stern, M.D., the former Executive Dean and Vice Chancellor at the University of Tennessee Health Sciences Center, who served on the Board of Directors of MLH from 2011 to 2017, joined the lawsuit.  Stern was also a member of the Executive Cancer Council and the Steering Committee for the West Cancer Center. 

The complaint sets forth in detail the unlawful kickbacks, disguised through a sophisticated business integration wherein Methodist purchased substantially all of the outpatient locations of the largest oncology practice in the Memphis area, owned by West.  At the time of the arrangement, Methodist lacked a comprehensive cancer treatment center. 

The multi-agreement transaction purported to be a lawful way to allow West’s patients to be treated at Methodist locations by West-employed physicians for outpatient and inpatient services, with West providing management services to Methodist’s adult oncology service line. As a result of the deal, Methodist would receive increased Medicare reimbursements relating to the cancer care.  The parties described it as a “partnership” to achieve a cancer “center without walls,” where patients would go to Methodist-owned facilities for all their cancer-related care in what was called the West Cancer Center.  However, there was never any formal partnership created, as to do so likely would have violated regulatory requirements.

As part of Methodist’s business combination with West, Methodist made a separate for-profit $7 million investment in ACORN Research, LLC (ACORN), an entity in which West and its Medical Director and shareholder, Dr. Lee Schwartzberg, had a personal financial interest.  Through the deal, Methodist provided an immediate influx of millions of dollars in cash to West through its purchase of certain assets, as well as the ACORN investment, which resulted in a repayment of $3.5 million in debt owed to West and its shareholder, Dr. Schwartzberg.  Kickbacks for the revenues Methodist generated from the West referrals, however, were disguised as payments Methodist made to West during the seven years of the deal, and expressly for certain services that were supposed to be – but were not – provided under the management services agreement. 

As a result of the transaction, Methodist, which prior to the deal had no outpatient cancer treatment, was able to establish a new stream of income in the reimbursements for outpatient treatment that previously went to West. Methodist also realized a huge increase in referrals for inpatient services from West, which previously referred the bulk of its patients to Methodist’s competitors, including Baptist Memorial Hospital. 

By purchasing West’s outpatient locations, Methodist was able to bill Medicare not only for the facility and professional components of outpatient treatment but also for the chemotherapy and other drugs provided, for which Methodist could recoup a staggering discount in costs through the 340B Discount Drug Program, resulting in $50 million in profits to Methodist in one year alone.

Methodist knew that it would be a violation of the AKS to compensate West in exchange for the volume or value of referrals to Methodist, yet, as the referrals to Methodist increased over the seven years of the deal, so did Methodist’s payments to West under the management agreement.

Methodist also knew that West had not been providing all the management services at all the locations required by the MSA.  For the management services West was performing, Methodist often was double-paying West, as it was paying West separately for these services pursuant to other agreements. 

In sum, Methodist knowingly agreed to pay West millions of dollars in kickbacks for the revenues Methodist expected to, and ultimately did, realize from West’s referrals.  The arrangement lasted from January 1, 2012, through December 31, 2018, and continued even after Methodist knew that the United States was investigating these allegations following the filing of the whistleblowers’ lawsuit.

The matter is being investigated by the Department of Health and Human Services, Office of Inspector General.  Assistant U.S. Attorney Kara F. Sweet represents the United States.

The claims in which the United States has intervened are allegations only, and there has been no determination of liability.  The lawsuit is captioned United States of America ex rel. Jeffrey H. Liebman and David M. Stern, M.D. v. Methodist Le Bonheur Healthcare, et al., Case No. 3:17-cv-00902 (M.D. Tenn.).

# # # # #

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Charleston Man on Federal Supervised Release Sentenced for Drug Crime Involving Fentanyl

by DOJ Press April 11, 2022
By DOJ Press

CHARLESTON, W.Va. – A Charleston man was sentenced today to a total of three years and 11 months in federal prison for possession with intent to distribute fentanyl and cocaine base, also known as “crack,” and supervised release violations.

According to court documents and statements made in court, law enforcement officers executed a search warrant at the Charleston residence of Donavan Hardison, 31, on January 4, 2021. During the search, officers found approximately 2.826 grams of fentanyl on Hardison and  approximately 3.672 grams of crack cocaine in his vehicle. Hardison admitted that he intended to distribute both controlled substances. Hardison was on supervised release at the time as the result of two prior federal convictions.

Hardison was sentenced to two years and nine months for possession with intent to distribute fentanyl and crack cocaine. He received a consecutive sentence of one year and two months for violating the terms of his supervised release.

United States Attorney Will Thompson made the announcement and commended the investigative work of the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the Putnam County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA).

Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Nick Miller prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00130; 2:18-cr-00040; and 2:15-cr-00135.

 

 

###

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Department of Justice Press Releases

Former Caltrans Contract Manager Pleads Guilty to Bid Rigging and Bribery

by DOJ Press April 11, 2022
By DOJ Press

A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.

According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.

“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.” 

 

Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home. 

Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.

Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). 

In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.

April 11, 2022 0 comments
FacebookTwitterRedditWhatsappBluesky
Newer Posts
Older Posts
Prime Deals
Shore News Network
  • New Jersey
    • Jersey Shore News
    • South Jersey News
    • Philadelphia News
    • North Jersey News
    • Ocean County News
    • Monmouth County News
    • Cape May County News
    • Atlantic County News
    • Burlington County News
    • Mercer County News
    • Toms River News
    • Jackson Township News
    • Regional
  • New York
    • New York City News
  • MD
  • FL
  • PA
Shore News Network
  • DE
  • OH
  • D.C.
  • VA
  • Topics
    • Crime
      • Most Wanted
      • Fire
    • Weird
    • Politics
    • Weather
    • OMG!
    • Traffic
    • Lottery Results
    • Pets
    • US News
    • Politics
    • Weather Reports
    • Weird and Strange News
    • Good News
    • Viral Videos
    • Pets
    • Business News
    • Tech and Gaming
    • Entertainment
    • Food
    • Health and Wellness
    • Travel
    • Schools
    • Sports
    • Top 10 Lists
    • Viral News
    • The Buzz
    • Satire