PROVIDENCE – A Middletown, R.I., man currently serving a term of federal supervised release having been convicted and incarcerated for robbing four banks, admitted in federal court in Providence today to fraudulently seeking more than $4.7 million in Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The CARES Act was passed by Congress to assist businesses impacted by the pandemic.

Michael C. Moller, 41, admitted that he applied for and received nearly $600,000 in PPP loans he claimed were to be used to pay employees for a Fall River, MA, businesses he operated, “Top Notch Tile.”  FBI and IRS Criminal Investigation agents determined that “Top Notch Tile”  was not incorporated with the Massachusetts Secretary of State, nor could investigators locate any tax or bank records for the company.

Moller admitted that he filed a PPP loan application in his name, and that he caused other applications to be filed in the name of his father and his girlfriend’s brother. As a result of those fraudulent bank loan applications, financial institutions provided Moller a total of $599,251 dollars in stimulus PPP loans he was not entitled to receive.

Additionally, Moller admitted that acting alone, or with family members and associates, he caused eleven fraudulent PPP loan applications to be filed in the name of his girlfriend’s son. The money was to pay employees of “Alves Top Notch,” a Fall River-based business for which investigators could find no records. Among the eight applications were three nearly identical ones filed with different financial institutions, each seeking $734,300 in SBA guaranteed PPP loans. None of the eleven fraudulent applications filed in the name of Moller’s girlfriend’s son resulted in the disbursement of PPP loans.

Appearing today before U.S. District Court Judge Mary S. McElroy, Moller pleaded guilty to bank fraud, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Acting Special Agent in Charge of Internal Revenue Service Criminal Investigation Joleen Simpson.

Moller, who remains detained in federal custody, is scheduled to be sentenced on January 19, 2021.

According to court records, Moller was convicted in the District of Massachusetts in 2010 for fraud and received a sentence of twenty-four months of supervised release. During his term of supervised release, Moller was convicted of four counts of bank robbery and sentenced to 108 months imprisonment and three years of supervised release. His term of supervised release is scheduled to terminate in July 2022.

The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.

The matter was investigated by the FBI and IRS-Criminal Investigation, with the assistance of the SBA Office of Inspector General and the FDIC Office of Inspector General.

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PROVIDENCE – At the direction of the President, United States Attorney Peter F. Neronha today announced his resignation, effective at midnight. Mr. Neronha joins all of the other United States Attorneys appointed by President Obama in stepping down today.

 

Mr. Neronha, the 39th person to be appointed United States Attorney for the District of Rhode Island, began a career of public service in 1996 as a Special Assistant Attorney General in the Rhode Island Department of the Attorney General. In 2002, Mr. Neronha joined the United States Attorney’s Office as an Assistant United States Attorney. Since becoming United States Attorney, Mr. Neronha has twice been appointed to terms on the Attorney General’s Advisory Committee, by Attorney General Eric Holder in 2009, and by Attorney General Loretta Lynch in 2016. The AGAC regularly meets with and advises the Attorney General on policy, management and operational issues impacting all 94 U.S. Attorney’s offices nationwide.

 

A fourth generation native of Jamestown, Mr. Neronha attended North Kingstown High School, and in 1985 graduated summa cum laude from Boston College. He attended Boston College Law School, where he was a member of the Boston College Law Review. Upon graduation, he joined the Boston, Massachusetts law firm, Goodwin Procter, LLP.

 

United States Attorney Peter F. Neronha released the following statement:

 

“It has been the honor and privilege of my professional life to serve the people of Rhode Island as United States Attorney for nearly eight years. When I began my career in public service as a state prosecutor over twenty years ago, I never could have anticipated what the future would hold. I am incredibly grateful to President Obama, and to Senators Reed and Whitehouse, who recommended me to the President, for their confidence in me.

 

“I have met and worked with so many great and talented people along the way, both in law enforcement and in the community, and we have done so much together. We have faced so many challenges, from the steady stream of public corruption cases to the scourge of human trafficking, particularly child sex trafficking. International drug cartels and prescription pill misuse have caused our ongoing opioid and heroin public health crisis, threatening the lives of children and adults alike. Violent crime, and a criminal justice system not best equipped to deal with it, has challenged us to rethink our mission as prosecutors and law enforcement – to understand that prevention and effective re-entry for those who have paid their debt to society have their place alongside smart enforcement.

 

“Whatever we have accomplished, none of it would have been possible without the dedication and outstanding ability of the men and women of the Office I have been so fortunate to lead. Some have been my colleagues for nearly fifteen years, and I will miss them all, very, very much. Given the nature of this job there is never a perfect time to step away. With enormous gratitude toward those who have been so supportive during my tenure, my family and I look forward to the next chapter of our lives.”

 

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CHARLESTON, W.Va. – McCayla Myers, 27, of Cabin Creek, pleaded guilty today to aiding and abetting theft of government money. Myers admitted to a scheme to defraud the Paycheck Protection Program (PPP) of $83,332.00 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).According to court documents and statements made in court, from on or about April 22, 2021, through on or about May 22, 2021, Myers provided her personal information to another individual to apply for and obtain four PPP loans, each for $20,833.00, through fraud. Two of the loan applications falsely claimed those loans were for an automotive repair business, and the other two falsely claimed those were for a delivery service business.The CARES Act made forgivable PPP loans available to businesses adversely impacted by the COVID-19 pandemic, to replace their normal income and for certain other eligible essential expenses. As part of her guilty plea, Myers admitted that she knowingly defrauded the PPP program, that she did not own or operate the businesses listed on the loan applications, and that she did not have payroll or other qualifying business expenses at that time. Myers further admitted that she spent the PPP loan proceeds on clothing, firearms, vacations, and other personal expenses while knowing that none of these purchases were eligible expenses.Myers also admitted that she sought to have one of the $20,833.00 loans forgiven on or about December 16, 2022, by falsely claiming that she had spent $19,000.00 of the proceeds on payroll.Myers is scheduled to be sentenced on September 14, 2026, and faces a maximum penalty of 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. Myers also owes $83,332.00 in restitution.United States Attorney Moore Capito made the announcement and commended the investigative work of the West Virginia State Police, the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the National Aeronautics and Space Administration Office of Inspector General (NASA OIG).NASA OIG is an active member of the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney John J. Frail is prosecuting the case.On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.  Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.The Fraud Section leads the Department of Justice Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the enactment of the CARES Act, the Fraud Section has prosecuted over 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds.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 PACERLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. by searching for Case No. 2:26-cr-53.### 

PROVIDENCE, R.I. – United States Attorney Zachary A. Cunha today announced the appointment of Sara Miron Bloom, a veteran federal prosecutor who amassed a diverse and exceedingly distinguished record of accomplishment while serving in the United States Attorney’s Office for District of Massachusetts for over two decades, to lead his team of supervisors in the District of Rhode Island.

As an Assistant United States Attorney and supervisor in the U.S. Attorney’s Office in Boston, Ms. Bloom investigated and litigated complex financial crime cases in the Securities, Financial, & Cyber Fraud Unit, and served as Chief of the Civil Division’s Affirmative Litigation Unit and as Senior Litigation Counsel to the Criminal Division.  In those roles, she led and prosecuted groundbreaking civil and criminal pharmaceutical marketing fraud cases against Pfizer, GlaxoSmithKline, and other companies that resulted in approximately $6 billion in total criminal and civil recoveries; she also served with distinction an Assistant United States Attorney in the Civil Division, litigating defensive and affirmative matters on behalf of the United States.

Ms. Bloom succeeds Assistant United States Attorney Richard B. Myrus as First Assistant, following Mr. Myrus’ term as Acting United States Attorney for the District of Rhode Island from February 2021 to December 2021. AUSA Myrus continues in his role as a prosecutor in the office’s Criminal Division, as well as in a newly created position as Counsel to the United States Attorney.

 “I consider myself, and more importantly, this Office, to be extremely fortunate to have a prosecutor of Sara Bloom’s talent and hard-earned reputation join our team,” said U.S. Attorney Cunha.  “Her work leading and handling large and complex investigations and holding the powerful to account is second to none. That background, and her experience handling and supervising virtually every category of case prosecuted or litigated by the United States perfectly complements the talented and dedicated staff of public servants in this Office who serve the people of Rhode Island every day.  I would also like to thank Richard Myrus for his exceptional service as Acting United States Attorney, and distinguished work as a prosecutor in this Office for fifteen years.  I value his experience and judgment and am pleased that he will be taking on this new role on my leadership team.”

Mr. Cunha today also announced the appointment of Assistant United States Attorney Bethany N. Wong to serve as Chief of the Civil Division. Ms. Wong was appointed an Assistant United States Attorney in the office’s Civil Division in August 2014. In addition to representing the United States in a wide range of civil affirmative and defensive matters, Ms. Wong has also served as the office’s Affirmative Civil Enforcement coordinator since October 2018. Ms. Wong succeeds United States Attorney Cunha as Civil Chief.

 “Bethany Wong is a superlative civil litigator, whose talents as an attorney are equaled only by her sound judgment and dedication to the public interest,” U.S. Attorney Cunha remarked. “I am confident that she will continue and expand the critical and impactful work of the Civil Division, particularly in the vital area of affirmative litigation.”

Additionally, Mr. Cunha today announced that the remainder of current leadership team will continue in their respective capacities:

Sandra R. Hebert has led the Criminal Division since December 2020. In addition to prosecuting a wide variety of criminal matters, including several significant drug and white-collar crime cases, Ms. Hebert previously served as OCEDTF Chief and Criminal Division Deputy Chief. Prior to joining the U.S. Attorney’s Office in Rhode Island, Ms. Hebert served as an Assistant United States Attorney in the Western District of Texas - Midland Division beginning in 2004. Prior to her appointments as an Assistant U.S. Attorney, Ms. Hebert served as an officer in the U.S. Army Judge Advocate General Corps.

Lee H. Vilker, who has served as Deputy Criminal Chief since December 2020, joined the United States Attorney’s Office for the District of Rhode Island in June 2002, after serving as an Assistant U.S. Attorney in the District of New Jersey for nearly three years. In his more than two decades as a federal prosecutor, Mr. Vilker has specialized in investigating and prosecuting complex white-collar fraud cases. Mr. Vilker has prosecuted a wide variety of criminal conduct, including Ponzi schemes, investment fraud and corporate embezzlement, as well as narcotics offenses and crimes involving the sexual exploitation of children.

Lauren S. Zurier will continue to serve in her role as Chief of Appeals, a position she has held since December 2019. Ms. Zurier litigates the District’s criminal cases in the U.S. Court of Appeals for the First Circuit. Prior to being named an Assistant United States Attorney, Ms. Zurier served as an appellate prosecutor for over two decades in the office of the Rhode Island Attorney General.

 “We are fortunate to have such a deep bench of talented and dedicated attorneys in positions of leadership in this Office,” said Cunha.  “I have every confidence that this team has the experience, judgment, and skill that will enable us to continue and expand on our mission to protect the public safety, to serve all Rhode Islanders, and to maximize the impact and effectiveness of our enforcement efforts in every area.” 

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PROVIDENCE – U.S. Attorney Aaron L. Weisman today announced that more than $65 million in Department of Justice grants is available to help communities combat human trafficking and serve adults and children who are victimized in trafficking operations.

“Our nation is facing difficult challenges, none more pressing than the scourge of human trafficking. Human traffickers pose a dire threat to public safety and countering this threat remains one of the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight against this insidious crime. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”

The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs that support human trafficking task forces and services for human trafficking survivors. 

A number of funding opportunities are currently open, with several more opening in the near future. 

Missing and Exploited Children Training and Technical Assistance Program

https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17351

Total Available $1.8 million                                      Deadline 4/6/2020 (Extended)

Multidisciplinary Task Force Program to Combat Human Trafficking

Total Available $22 million                                       Opens week of 3/16/2020

Preventing Trafficking of Girls

Total Available $1.7 million                                      Opens week of 3/16/2020

Research and Evaluation on Trafficking in Persons           

https://nij.ojp.gov/funding/opportunities/nij-2020-17324

Total Available $2.5 million                                       Deadline 4/20/2020  

Services for Victims of Human Trafficking

Total Available $16.5 million                                    Opens week of 3/16/2020

Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking                                                                                                                      

Total Available $2 million                                         Opens week of 3/16/2020

Human Trafficking Training and Technical Assistance Program

Total Available $5 million                                         Opens week of 3/16/2020

Improving Outcomes for Child and Youth Victims of Human Trafficking           

Total Available $6 million                                         Opens week of 3/16/2020

Integrated Services for Minor Victims of Labor Trafficking

Total Available $8 million                                         Opens week of 3/16/2020

For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities

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CHICAGO — A federal jury has convicted a Chicago attorney of committing tax fraud, attempting to tamper with a witness, and violating a court order.MICHAEL ABRAMSON, 75, of Wilmette Ill., was convicted Tuesday on all 15 tax fraud, witness tampering, and violation of court order charges against him.  The jury returned the verdicts after a week-long trial in federal court in Chicago. U.S. District Judge Manish S. Shah set sentencing for May 1, 2024.Abramson was an attorney in Chicago when he filed and caused to be filed false individual tax returns for himself and false corporate returns for a company in which he held an ownership interest – Illinois-based Leasing Employment Services Co., Inc.  Evidence at trial revealed that Abramson provided more than $1 million for personal expenses to a woman with whom he was romantically involved.  He then took deductions on what were falsely characterized as commissions or loans and included the fraudulent loans as an asset on the company’s tax returns.  The expenses Abramson characterized as purported loans included funds expended on behalf of the woman related to a condo in Chicago’s Gold Coast neighborhood, several luxury automobiles, and payments for travel, shopping, and restaurants.Following the indictment in this case, the Court ordered Abramson not to have any contact with witnesses, including Abramson’s bookkeeper, whom Abramson knew would be an important witness at trial. Weeks before trial was initially set to begin on Feb. 5, 2024, Abramson gave the bookkeeper a copy of her previous court testimony, on which he had made handwritten notes changing, supplementing, or otherwise scripting her answers, and told her to review it before trial. Although Abramson told the bookkeeper not to bring the notes to a meeting with law enforcement, the bookkeeper nonetheless turned the scripted transcript over to law enforcement.The jury convictions were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Ramsey E. Covington, Acting Special Agent-in-Charge of the IRS Criminal Investigation Chicago Field Office, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI.  The government is represented by Assistant U.S. Attorneys Richard M. Rothblatt and Edward A. Liva, Jr.

PROVIDENCE – A Providence chiropractor who admitted to creating and executing a scheme to defraud a health care benefits program and who failed to pay taxes on some of the income he received from his business was sentenced on Wednesday to three years probation, to include the first six months in home confinement; to perform 900 hours of community service while on probation; and to pay a $25,000 fine.

Eugene Kramer, 51, sole owner of New England Spine and Disk Center, previously admitted to the court that he fraudulently billed for days a patient did not attend treatment, for treatment not provided, and that he falsified medical notes and documentation to support a nonexistent personal injury claim.

Kramer admitted that as part of the scheme, from January 1, 2018, to December 31, 2018, he provided invoices for chiropractic treatment to an attorney, who then, in order to support a patient’s bodily injury claim, provided those invoices to an automobile insurance company. To bolster the claim, Kramer created falsified medical notes and documentation.

According to court documents, an individual electronically monitored by the FBI visited Kramer’s office on 15 occasions for chiropractic treatment, under the pretext of having been involved in an automobile accident. In most instances little or no treatment was provided and few if any medical notes were taken. At no time did Kramer provide the person with a diagnosis or discuss a treatment plan. The individual was emailed a package requesting a monetary settlement in connection with a supposed injury claim to Progressive Insurance requesting, among other things, reimbursement for chiropractic services.

At the time of his guilty plea on June 29, 2020, Kramer admitted that for tax years 2015, 2016, and 2017, he failed to report a portion of his personal income, resulting in him owing the IRS $66,914.

Kramer pleaded guilty to one count each of health care fraud and filing a false tax return.

Kramer’s sentence, imposed by U.S. District Court Judge William E. Smith, is announced by United States Attorney Aaron L. Weisman, Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta, and Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Ramsey E. Covington.

The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.

The matter was investigated by the FBI and IRS Criminal Investigation.

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PROVIDENCE –U.S. Attorney Aaron L. Weisman today announced that the state of Rhode Island received $499,998 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

United States Attorney Aaron L. Weisman added, “Protecting and empowering human trafficking victims is among the most important societal responsibilities.  With this substantial award-grant to Sojourner House, a true leader in the fight to end domestic and sexual violence, Rhode Island’s battle to end the scourge of human trafficking will be aided immeasurably.”

The grant, awarded to the Sojourner House, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The Sojourner House is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

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The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.                                                                   

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PROVIDENCE, RI – A national sales executive for Dr. Pepper/Seven Up, Inc., a subsidiary of Dr. Pepper Snapple Group (Dr. Pepper), today pleaded guilty to charges that he submitted more than $1.7 million dollars worth of fraudulent invoices to Dr. Pepper through a promotions and marketing company he formed in his wife’s name.

Appearing in U.S. District Court in Providence, R.I., Michael Lynch, 52, of Newport, R.I., admitted to the Court that in April 2003, he incorporated Seacoast Unlimited Marketing and Promotions, LLC (Seacoast) in his wife’s name, and through Seacoast, from January 2007 until November 29, 2017, submitted to Dr. Pepper more than 200 fraudulent invoices totaling $1,716,949 for services such as promotional signs and banners, delivery of sample products to retail stores and the offering of discount prices to retail stores. None of the services billed to Dr. Pepper through Seacoast and paid for by Dr. Pepper were provided.

Lynch also admitted to the Court that he failed to declare any of the income he derived through Seacoast on the joint federal tax filings he filed with his wife. The tax loss applicable to the defendant’s conduct totals $386,320.

Michael Lynch’s guilty plea to wire fraud and filing a false tax return is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw and Joel P. Garland, Special Agent in Charge, Internal Revenue Service Criminal Investigation.

Lynch is scheduled to be sentenced by United States District Court Chief Judge William E. Smith on June 1, 2018. Wire fraud is punishable by statutory penalties of up to 20 years imprisonment and a fine of $250,000. Filing a false tax return is punishable by statutory penalties of up to 3 years imprisonment and a $100,000 fine.

The matter, investigated by the FBI and IRS Criminal Investigation, is being prosecuted by Assistant U.S. Attorney Lee H. Vilker. .

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CHICAGO — Two foreign nationals participated in a $10 million scheme to fraudulently bill Medicare and private insurers for nonexistent health care services, according to an indictment returned in federal court in Chicago.In 2023 and 2024, BURHAN MIRZA and KASHIF IQBAL, along with several co-schemers, used nominee-owned laboratories and durable medical equipment providers to submit fraudulent claims to Medicare and private healthcare benefit programs for items and services that were not provided, the indictment states.  Mirza, a Pakistani native who resided in Pakistan, obtained the identifying information of individuals, providers, and insurers without their knowledge and used the information to support the bogus claims submitted on behalf of the nominee-owned companies, the indictment states. Iqbal, a Pakistani native who resided in Lavon, Texas, was allegedly associated with a number of durable medical equipment providers that submitted fraudulent claims to insurers.  Iqbal also laundered fraud proceeds obtained by the co-schemers and coordinated the transfer of money obtained through the scheme to Pakistan, the indictment states.The indictment charges Mirza, 31, with 12 counts of healthcare fraud and five counts of money laundering.  Iqbal, 48, is charged with 12 counts of healthcare fraud, six counts of money laundering, and one count of making a false statement to U.S. law enforcement. Arraignments in federal court in Chicago have not yet been scheduled.The indictment was announced by Todd Blanche, Deputy Attorney General, Andrew S. Boutros, United States Attorney for the Northern District of Illinois, Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Chicago Regional Office. The government is represented by Assistant U.S. Attorney Brian Hayes of the Northern District of Illinois.“Rooting out fraud is a priority for this Justice Department, and these defendants allegedly billed millions of dollars from Medicare and laundered the proceeds to Pakistan,” said Deputy Attorney General Blanche.  “These alleged criminals stole from a program designed to provide health care benefits to American seniors and the disabled, not line the pockets of foreign fraudsters.  We will not tolerate these schemes that divert taxpayer dollars to criminals.” “Every fraudulent submission in this case diverts much needed monies from senior citizens and disabled persons who rely on Medicare to fund critically important health needs,” said U.S. Attorney Boutros.  “The defendants didn’t just steal from a government program; they did damage to the promise of healthcare in this country and the peace of mind that comes with it.  I was proud to form a new Healthcare Fraud Section in the Chicago U.S. Attorney’s Office last summer with the aim of guarding hardworking taxpayer funds.  We will work tirelessly with our law enforcement partners to stop bad actors from draining public and private programs—especially those in the healthcare space that make it harder for legitimate patients to receive care.”“Each fraudulent claim submitted by the defendants deprived other deserving patients from necessary medical resources and cost taxpayers their hard-earned money,” said FBI SAC DePodesta.  “The FBI, along with our network of investigative and prosecutorial partners, will bring to justice those who engage in egregious fraudulent schemes at the expense of the American public.”“This scheme was built on a foundation of lies—fraudulent claims for services that were never provided and a deliberate effort to funnel millions of dollars overseas,” said HHS-OIG SAC Pinto.  “These actions not only siphon funds from federal health care programs and private insurers, but also undermine the integrity of programs meant to serve vulnerable patients.  Our agency will continue to work with our law enforcement partners to dismantle these schemes and ensure those responsible are held accountable.”The public is reminded that an indictment is not evidence of guilt.  The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.Three alleged co-schemers were previously indicted as part of this investigation and have pleaded guilty to federal healthcare fraud charges.  MIR AKBAR KHAN, 57, of West Chicago, Ill., recruited and managed individuals, including FASIUR RAHMAN SYED, 47, a citizen of India who resided in Chicago, to pose as the nominee owners of the purported medical businesses that Mirza and Iqbal allegedly used in their false submissions to Medicare. NAVAID RASHEED, 43, a citizen of Pakistan who resided in Plano, Texas, admitted that he tracked payments of false claims in the United States to the nominee-owned companies, as well as disbursement of the fraud proceeds to the co-schemers.  Khan, Syed, and Rasheed are awaiting sentencing.



mirza_et_al_indictment.pdf

PROVIDENCE –U.S. Attorney Aaron L. Weisman today announced that the state of Rhode Island received $499,998 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to provide safe, stable housing and appropriate services to victims of human trafficking.

“Human trafficking is a barbaric criminal enterprise that subjects its victims to unspeakable cruelty and deprives them of the most basic of human needs, none more essential than a safe place to live,” said Attorney General William P. Barr. “Throughout this Administration, the Department of Justice has fought aggressively to bring human traffickers to justice and to deliver critical aid to trafficking survivors. These new resources, announced today, expand on our efforts to offer those who have suffered the shelter and support they need to begin a new and better life.”

United States Attorney Aaron L. Weisman added, “Protecting and empowering human trafficking victims is among the most important societal responsibilities.  With this substantial award-grant to Sojourner House, a true leader in the fight to end domestic and sexual violence, Rhode Island’s battle to end the scourge of human trafficking will be aided immeasurably.”

The grant, awarded to the Sojourner House, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs. The grant will also provide funding for support needed to help victims locate permanent housing, secure employment, as well as occupational training and counseling. The Sojourner House is among 73 organizations receiving more than $35 million in OVC grants to support housing services for human trafficking survivors.

“Human traffickers dangle the threat of homelessness over those they have entrapped, playing a ruthless game of psychological manipulation that victims are never in a position to win,” said OJP Principal Deputy Assistant Attorney General Kathrine T. Sullivan. “These grants will empower survivors on their path to independence and a life of self-sufficiency and hope.”

Human trafficking offenses are among the most difficult crimes to identify, and the scope of human trafficking victimization may be much greater than the limited data reflect. A new report issued by the National Institute of Justice, another component of the Office of Justice Programs, found that the number of human trafficking cases captured in police reports may represent only a fraction of all such cases. Expanding housing and other services to trafficking victims remains a top Justice Department priority.

The Office for Victims of Crime, for example, hosted listening sessions and roundtable discussions with stakeholders in the field in 2018 and launched the Human Trafficking Capacity Building Center. From July 2018 through June 2019, 118 OVC human trafficking grantees reported serving 8,375 total clients including confirmed trafficking victims and individuals showing strong indicators of trafficking victimization.

For a complete list of individual award amounts and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/htvictimsfactheet.pdf

*******

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.                                                                   

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PROVIDENCE, RI – A national sales executive for Dr. Pepper/Seven Up, Inc., a subsidiary of Dr. Pepper Snapple Group (Dr. Pepper), was sentenced Friday to 33 months in federal prison for submitting more than $1.7 million dollars worth of fraudulent invoices to Dr. Pepper through a promotions and marketing company he formed in his wife’s name.

In February, Michael Lynch, 53, of Newport, R.I., admitted to the Court that in April 2003, he incorporated Seacoast Unlimited Marketing and Promotions, LLC (Seacoast) in his wife’s name, and through Seacoast, from January 2007 until November 29, 2017, submitted to Dr. Pepper more than 200 fraudulent invoices totaling $1,716,949 for services such as promotional signs and banners, delivery of sample products to retail stores and the offering of discount prices to retail stores. None of the services billed to and paid for by Dr. Pepper were provided.

Additionally, Lynch admitted that he failed to declare any of the income he derived through Seacoast on the joint federal tax filings he filed with his wife. The tax loss applicable to the defendant’s conduct totals $386,320.

Lynch pleaded guilty on February 27, 2018, to wire fraud and filing a false tax return.

At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Lynch to serve 2 years supervised release upon completion of his term of incarceration, to pay full restitution to Dr. Pepper, and to pay taxes owed to the Internal Revenue Service.

The U.S. Sentencing Guidelines range of imprisonment in this matter is 33 – 41 months. The government recommended the court impose a sentence of 33 months incarceration. Lynch’s sentence is announced by United States Attorney Stephen G. Dambruch, Special Agent in Charge of the FBI Boston Division Harold H. Shaw, and Special Agent in Charge of Internal Revenue Service Criminal Investigation Kristina O'Connell.

The matter, investigated by the FBI and by IRS Criminal Investigation, was prosecuted by Assistant U.S. Attorney Lee H. Vilker. 

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PROVIDENCE – A Rhode Island woman who never served in the U.S. Military but perpetrated a massive fraud scheme by falsely masquerading as a Purple Heart and Bronze Star-decorated United States Marine who claimed to have been wounded by an IED in Iraq and to have developed service-related cancer was sentenced today to nearly six years in federal prison, announced United States Attorney Zachary A. Cunha.

Sarah Jane Cavanaugh, 32, whose near-daily criminal conduct over a period of five years is described in court documents as being “among the more reprehensible seen in this District from a fraud defendant,” defrauded veterans, veterans’ organizations, veterans’ charities, friends, and co-workers in a “methodical and calculated manner.”

Cavanaugh previously admitted to a federal judge that, while employed as a civilian by the Department of Veterans Affairs at the Rhode Island Veterans Affairs Medical Center, a role in which she was supposed to help and support military veterans, she used her position to misappropriate veterans’ identities, their combat experiences, their diagnoses of illnesses, and their valor to devise schemes to enrich herself by using the stolen information to obtain more than $250,000 in cash, charitable donations, and services reserved for injured veterans.

“Sarah Cavanaugh’s conduct in the course of her scheme is nothing short of appalling,” remarked U.S. Attorney Cunha.  “By brazenly laying claim to the honor, service, and sacrifice of real veterans, this defendant preyed on the charity and decency of others for her own shameless financial gain.  I am grateful that, with today’s sentence, she has been brought to justice and will face the consequences of her actions.”

“Today’s sentencing sends a strong message to those who would represent themselves as something they’re not in order to profit from the kindness and respect shown to our nation’s deserving veterans,” said Special Agent in Charge Christopher Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners for their efforts in bringing this defendant to justice.”

"Individuals who falsely represent themselves as decorated veterans of the U.S. Armed Forces degrades the service of the men and women who selflessly serve our country," said Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service Northeast Field Office, the law enforcement component of the Department of Defense Office of Inspector General. "Profiting from such an egregious scheme is an affront to the U.S. military's long-standing tradition of honoring and awarding its brave service members. Today's sentencing demonstrates our commitment to work with our law enforcement partners and the U.S. Attorney's Office to investigate allegations of stolen valor." 

“Ms. Cavanaugh deserves to be held fully accountable for falsely claiming to be wounded Marine veteran as part of a reprehensible scheme to collect more than $250,000 in veterans benefits and charitable contributions that should have been directed to real veterans in need,” said Special Agent in Charge Michael T. Wiest of the NCIS Northeast Field Office. “NCIS and our partners remain committed to investigating all allegations of fraud that harms Department of the Navy service members and their families.”

“Sarah Cavanagh feigned having cancer, and falsely claimed valor where there was none, to gain hundreds of thousands of dollars in benefits and charitable donations. Her actions are an insult to every veteran who has served our country, and today she learned her fate for her criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Make no mistake, the FBI and our law enforcement partners are committed to seeking justice for anyone who lies about serving our country and illegally takes money from federal programs that help veterans who rightfully deserve it.”

Court documents detail Ms. Cavanaugh’s “repugnant” criminal activity: falsely purporting to be a combat-injured veteran allowed her to gain introduction to, and acceptance by, friends, charities, businesses, and organizations whom she then exploited and/or defrauded. Nine veterans’ charities combined to fund Cavanaugh’s travel to retreats, in-home care, gym memberships, physical therapy, paying electric bills, and provided donated gift cards for use in obtaining groceries and other essentials. Cavanaugh also used false documentation to fraudulently obtain months of paid leave from two federal employee benefit programs  based on her cancer claims.

Even more brazenly, Cavanaugh exploited her purported experiences to assume leadership roles in the veteran community, including as commander of a VFW Post in North Kingstown, RI; gave public speeches while dressed in full U.S. Marine uniform, complete with a Purple Heart and Bronze Star that she purchased on the internet; and secured a spot in an arts program at the University of Southern California, a program she described to a U.S. Army veteran she met through the Wounded Warrior Program who was later accepted into the program. In a letter to the court, the Army veteran faulted Cavanaugh for taking “a spot [in the program] from another veteran who could have participated in the program and, ultimately, may not have committed suicide.”

Sarah Cavanaugh pleaded guilty on August 9, 2022, to wire fraud, aggravated identity theft, forged military discharge certificate, and fraudulent use of military medals. She was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 70 months in federal prison to be followed by 3 years of federal supervised release. Additionally, the court ordered Cavanaugh to pay restitution to all victims perpetrated by her fraud totaling $284,796.82. The court also issued an order that the federal government reinstate a total of 261 hours of federal employee paid leave time they donated to Cavanaugh.

The case was prosecuted by Assistant United States Ronald R. Gendron.

The matter was investigated by the U.S. Department of Veterans Affairs Office of Inspector General; U.S. Department of Veterans Affairs Police Service; U.S. Defense Criminal Investigative Service; U.S. Naval Criminal Investigative Service; FBI; U.S. Postal Inspection Service; and Internal Revenue Service Criminal Investigations.

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United States Attorney Zachary A. Cunha announced today the resolution of federal criminal and civil investigations into Barletta Heavy Division, Inc., the Massachusetts construction firm responsible for construction of the Route 6/10 Interchange Project, and Dennis Ferreira, former Superintendent for the project.

These resolutions involve a criminal plea, a civil resolution that will recover more than twice the amount paid by the government as a result of the conduct, and a non-prosecution agreement with the construction firm.

Federal investigations into contracting and procurement on portions of the federally-funded 6/10 project centered on false statements made by a project superintendent and the company in connection with the project, as well as billing submissions made to the federal government for stone and dirt that was transported from sites in Boston and Pawtucket and used in portions of the 6/10 Project as fill. This fill, which was required to either be used at its original location, or subjected to additional testing and handling, did not meet the requirements of the contract.

Ferreira, the former project superintendent, will plead guilty in federal court to charges of making false statements; under a separate agreement, Barletta will pay a criminal fine of $500,000, return $1,000,000 to the government, make factual admissions, and undertake a series of monitoring, reporting, and compliance measures.

“When federal tax dollars fund work in our communities, we expect that the government will get what it bargains for,” said U.S. Attorney Cunha.  “In this case, that didn’t happen.  Today’s resolution should serve as a reminder to any company or corporate official that, when the government is footing the bill, false statements have consequences.” 

As part of the resolution, as detailed in documents filed in federal court, Ferreira will plead guilty to an Information that charges him with three counts of making a false statement in connection with a federally funded highway project. These charges stem from Ferreira’s decision to import railroad ballast (loose stone) from a Barletta project site in Massachusetts, and soil from the Pawtucket/Central Falls Rail Station and Bus Hub Project, a separate Barletta job site in Rhode Island, to the 6/10 Project to be used as fill.  It is alleged in the Information that



In July of 2020, Ferreira caused an environmental report to be sent to the Rhode Island Department of Transportation (RIDOT) that falsely represented the origin and environmental quality of the stone imported from Massachusetts.





In September of 2020, during meetings with the Federal Highway Administration (FHWA) and RIDOT officials, Ferreira falsely represented the origin and environmental quality of the imported stone and falsely stated that none of the material imported from Pawtucket was used on the Project. and





Ferreira allegedly caused a letter to be sent to RIDOT officials which falsely stated that the stone imported from Massachusetts had been tested prior to being brought to Rhode Island.



The United States has separately entered into a Non-Prosecution Agreement with Barletta Heavy Division, Inc., in connection with the series of false statements that were made in the summer of 2020 to FHWA and RIDOT Officials.  These statements were meant to conceal the fact that Barletta had imported regulated material in violation of a Soil and Materials Management Plan, which was part of the contract governing the 6/10 Project.  Under the Agreement, Barletta accepts responsibility for the actions of its employees and admits to the facts that constitute making false statements in connection with a federally funded highway project.  In addition to paying a $500,000 criminal fine, the agreement requires Barletta to implement ongoing monitoring, reporting, and compliance measures for a period of three years; failure to comply with these conditions will make the company subject to prosecution for the conduct set forth in an agreed-upon Statement of Facts. 

Additionally, Barletta has entered into a False Claims Act settlement that resolves allegations that the company knowingly submitted claims for payment for work on the project in connection with the movement of dirt that did not comply with contract requirements, in violation of the federal and Rhode Island state False Claims Acts.  Barletta will pay $1,000,000 to the government, representing more than twice the government funds paid as a result of the relevant claims.

Assistant U.S. Attorneys Dulce Donovan and Bethany Wong are handling the prosecution and litigation of these matters. 

The cases were investigated by the U.S. Department of Transportation, Office of Inspector General, and the U.S. Department of Labor, Office of Inspector General, with the assistance from the Rhode Island Department of Environmental Management, Division of Law Enforcement.

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PROVIDENCE – A supervisor at a group home contracted by DCYF who repeatedly sex trafficked a missing 17-year-old girl was sentenced today to 10 years in federal prison, announced United States Attorney Aaron L. Weisman, Special Agent in Charge of Homeland Security Investigations Peter C. Fitzhugh, and Cranston Police Chief Colonel Michael J. Winquist.

According to court documents and information presented to the Court, in March and April 2017, Reysean Williams, 28, with the assistance of another individual, Leonardo Gomes, 20, of Pawtucket, sex trafficked the 17-year-old in Rhode Island, Massachusetts and on Long Island, New York, by posting advertisements and pictures of the teenager on Backpage.com. The ads were discovered by agents from Homeland Security Investigations and Cranston Police Department detectives.

Williams first encountered Gomes when Williams was Gomes’ supervisor in a Pawtucket residential group home contracted to provide services in DCYF care. After Gomes was released from DCYF custody, Williams recruited Gomes to participate in the sex trafficking operation. Williams often used a group home van to meet with Gomes and collect the proceeds from the sex trafficking of the 17-year-old.

To determine where the victim was being trafficked, agents responded to a telephone number listed in the ads on Backpage.com to arrange a commercial sexual encounter with the 17-year-old at an apartment established by Cranston Police. The victim and a female companion were taken into custody when they arrived at the apartment. Gomes was found sitting in a vehicle across from the apartment and was arrested. Williams was located and arrested about a week later.

The investigation determined that in early March 2017, the victim met Williams and agreed to do “plays” for him as a way of earning cash. The victim told investigators that from mid-March to mid-April she usually did around 6 plays per day, but sometimes as many as 10 per day. The victim told investigators that often times Gomes would drive her to various locations to perform sex acts in exchange for money in the Providence metropolitan area and in Massachusetts in a vehicle supplied by Williams. The victim was also driven by Gomes and Williams to locations as far away as the North Shore of Boston and on Long Island to perform sex acts in exchange for payment. Hotel rooms were paid for in cash by Williams. All of the money paid to the 17-year-old was turned over to Gomes and Williams, none of which was shared with the victim.

Reysean Williams pleaded guilty on November 30, 2018, to sex trafficking a child. He was sentenced today to 10 years in federal prison to be followed by 5 years supervised release.

Leandro Gomes pleaded guilty on November 30, 2018, to travelling in interstate commerce with intent to engage in criminal sexual activity. He was sentenced on March 15, 2019, to 36 months imprisonment to be followed by 10 years supervised release.

The cases were prosecuted by Assistant U.S. Attorneys Terrence P. Donnelly and John P. McAdams.

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PROVIDENCE – A Middletown, RI, man currently on federal supervised release having been previously sentenced for robbing four banks, is facing charges in federal court in Providence for allegedly filing fraudulent loan applications seeking more than $4.7 million in Paycheck Protection Program (PPP) forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was passed by Congress to assist businesses impacted by the pandemic.

It is alleged that Michael C. Moller, 41, applied for and received nearly $600,000 in PPP loans to pay employees for Fall River, MA, businesses, none of which are incorporated with the Massachusetts Secretary of State, or for which investigators could locate any tax or bank records.

According to court documents, it is alleged that Moller filed a PPP loan application in his name, and caused applications to be filed in the name of his father and his girlfriend’s brother. As a result of those bank loan applications, financial institutions provided Moller a total of $599,251 dollars in stimulus PPP loans he was not entitled to receive.

Additionally, it is alleged that Moller, alone or with family members and associates, filed eight fraudulent PPP loan applications, all in the name of his girlfriend’s son, to pay employees for a Fall River-based business for which investigators could find no records. Among the eight applications were three nearly identical ones filed with different financial institutions, each seeking $734,300 in SBA guaranteed PPP loans. None of the eleven applications allegedly filed in the name of Moller’s girlfriend’s son resulted in the disbursement of PPP loans.

Moller, arrested today by FBI and IRS- Criminal Investigation agents on a criminal complaint charging him with making false statements to influence the Small Business Administration and with bank fraud, appeared before U.S. District Court Magistrate Judge Lincoln D. Almond and was ordered detained.

According to court records, Moller was convicted in the District of Massachusetts in 2010 for fraud and received a sentence of twenty-four months of supervised release. During his term of supervised release, Moller was convicted of four counts of bank robbery and sentenced to 108 months imprisonment and three years of supervised release. His term of supervised release is scheduled to terminate in July 2022.

A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.

The matter is being investigated by the FBI and IRS-Criminal Investigation, with the assistance of the SBA Office of Inspector General and the FDIC Office of Inspector General.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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RICHMOND, Va. – A Hampton man was sentenced yesterday to nine years and three months in prison for healthcare and unemployment fraud schemes that resulted in nearly $1 million in loss. Jamahl Rennelle Burch, aka Jarod or Jerrod Burch, 43, pled guilty on Aug. 29 to conspiracy to commit healthcare fraud, healthcare fraud, and aggravated identity theft.According to court documents, from May 2015 through November 2023, Burch targeted and defrauded two different government benefits programs: Virginia Medicaid’s consumer directed care program and Virginia’s unemployment program.The Virginia Medicaid Program provides medical assistance to indigent individuals who meet certain eligibility requirements. Under its consumer directed care program, Medicaid authorizes the provision of personal and respite care services to eligible Medicaid recipients by a personal care attendant (PCA). Personal care services include a range of support services to enable Medicaid recipients to remain at or return home rather than enter a nursing facility and include assistance with activities of daily living, access to the community, self-administration of medication, or other medical needs, supervision, and the monitoring of health status and physical condition.Burch targeted Medicaid recipients to sign up for Medicaid reimbursed personal care or respite care services. Burch and his co-conspirators executed agreements that designated numerous different individuals as PCAs for those recipients. Burch used the personal identifying information (PII) of the Medicaid recipients and purported PCAs to create accounts for the submission of timesheets for purported personal care and respite care services.For over eight years, Burch submitted fraudulent timesheets to Medicaid showing thousands of hours of personal care and respite care services. Burch approved these timesheets, attesting that services were provided, when he and his co-conspirators knew that none of the PCAs provided any personal or respite care services to the Medicaid recipients.In total, Burch and his co-conspirators knowingly caused Medicaid to pay at least $936,950.70 in fraudulent reimbursements for personal care and respite care services that never occurred.Burch also submitted fraudulent unemployment applications to the Virginia Employment Commission, causing $15,720 in unemployment benefits to be paid to him from Virginia’s unemployment insurance (UI) program and the Federal Pandemic Unemployment Compensation (FPUC) program. UI is a joint state-federal program intended to provide temporary financial assistance to unemployed workers under certain circumstances.In 2020 and 2021, Burch submitted four fraudulent unemployment applications using the PII of two of the purported PCAs from his Medicaid fraud scheme, falsely claiming that they had been terminated from their fake positions as PCAs. Two of these fraudulent applications were approved, one in the name of each of the two purported PCAs. Burch then submitted weekly certification requests for additional unemployment benefits for these applications, falsely representing that the purported applicants were still unemployed and in need of supplementary funds.After his initial arrest in November 2023, Burch repeatedly violated Court orders prohibiting him from having contact with potential witnesses in the pending criminal case, including by contacting several individuals who have since been charged as co-conspirators.In addition to his term of imprisonment, the Court order Burch to pay $936,950.70 in restitution to Medicaid and $15,720 in restitution to the Virginia Unemployment Commission, and to forfeit $806,008.38.Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); and Troy W. Springer, Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney Jr.The Medicaid Fraud Control Unit also provided significant assistance in this case.Assistant U.S. Attorneys Carla Jordan-Detamore and Brian R. Hood prosecuted the case.A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-8.

PROVIDENCE – A Rhode Island woman today admitted to a federal judge that she falsely claimed to be a cancer-stricken U.S. Marine decorated with the Purple Heart and Bronze Star, and that she used those claims, the stolen identities of actual veterans, and fraudulent documents that she created to obtain hundreds of thousands of dollars in charitable benefits and services intended for injured veterans, announced United States Attorney Zachary A. Cunha.

Sarah Jane Cavanaugh, 31, admitted that she falsely portrayed herself as a wounded veteran who had served overseas and been awarded both the Purple Heart and the Bronze Star, replicas of which she purchased and publicly displayed on a U.S. Marine uniform she wore at public events.

A search of Defense Department records indicates Cavanaugh never served in any branch of the U.S. military.

Additionally, Cavanaugh admitted that, while employed by the Department of Veteran Affairs at the Rhode Island Veterans Affairs Medical Center, she used her position as a licensed social worker, to gain access to documents, personal information, and medical records belonging to a Marine and a Navy veteran who was battling cancer. Cavanaugh admitted that she used this information to create fraudulent documents and medical records in her own name, indicating that she was an honorably discharged Marine stricken with cancer. In addition, Cavanaugh admitted that she created and used fraudulent documents in various schemes to obtain more than $250,000 in cash, charitable donations, and services reserved for injured veterans. 

“Every day, thousands of American men and women honorably serve this country in uniform,” said U.S. Attorney Cunha. “They sacrifice for our safety, putting themselves in harm’s way, often without praise or public recognition, and they deserve our thanks and our respect.  This Defendant sought to trade on that respect -- respect she did not earn, evoked by a uniform to which she had no claim -- by pretending that she was a United States Marine battling stage IV cancer, in order to trick generous members of the public into lining her pockets.  Her conduct is disgraceful, and it richly warrants her conviction today as a federal felon.”

“What Sarah Cavanaugh did is despicable and an insult to the brave men and women who have selflessly risked their lives, and made real sacrifices in service to this country,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Now this fraudster is a convicted felon for claiming valor where there is none, and for swindling more than a quarter of a million dollars in benefits and charitable donations from unsuspecting citizens who wanted nothing more than to help deserving veterans.”

Under the terms of a plea agreement reached on July 1, 2022, Cavanaugh has agreed that the final amount of restitution owed to her victims will be determined by the Court at the time of sentencing; she has also agreed, however, that $82,489.73, which represents her proceeds from her recent sale of real estate, will be applied towards her restitution obligations.  At the time of sentencing, Cavanaugh faces a mandatory minimum sentence of two years imprisonment, which will be served consecutively to any other sentence of imprisonment that the Court may impose. Cavanaugh’s final sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. Cavanaugh is scheduled to be sentenced on November10, 2022.

The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron. The matter was investigated by the U.S. Department of Veterans Affairs Office of Inspector General; U.S. Department of Veterans Affairs Police Service; and the FBI, with the assistance of the U.S. Defense Criminal Investigative Service; U.S. Naval Criminal Investigative Service; U.S. Postal Inspection Service; and Internal Revenue Service Criminal Investigations.

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PROVIDENCE, R.I. – A Warwick man charged with executing a scheme to defraud the Paycheck Protection Program (PPP), an element of the CARES Act passed by Congress on March 29, 2020, in response to the national crisis brought about by the COVID-19 pandemic, was sentenced in federal court in Providence today to three years of supervised release, the first six months of which are to be served in home confinement with electronic monitoring, announced United States Attorney Zachary A. Cunha.

David Andrew Butziger, 53, previously admitted to the court that he, along with co-conspirator David Adler Staveley, 54, of Andover, MA, sought to defraud the PPP by seeking $543,959 in forgivable loans guaranteed by the SBA, claiming to have dozens of employees earning wages at four business, when, in fact, there were no employees working at any of them.

Staveley pleaded guilty on May 17, 2021, to conspiracy to commit bank fraud and failure to appear in court as required. He was sentenced by U.S. District Court Judge Mary S. McElroy on October 7, 2021, to fifty-six months in federal prison to be followed by three years of federal supervised release.

Three weeks after appearing in U.S. District Court in May 2020, and released to home detention with electronic monitoring, Staveley removed his electronic monitoring device, staged his own suicide, and fled. Staveley left suicide notes with associates and left his wallet in his unlocked car that he parked along the ocean in Massachusetts. Further investigation determined that between May 26 and July 23, 2020, Staveley, who was to have appeared in federal court on June 2, 2020, traveled to various states using false identities and stolen license plates. He was apprehended by the United States Marshals Service in Alpharetta, GA., on July 23, 2020.

Staveley’s co-conspirator, Butziger, pleaded guilty on October 18, 2020, to conspiracy to commit bank fraud, admitting to the court that he himself sought a bank loan for $105,381.50 to pay seven employees at an unincorporated entity he called Dock Wireless. According to the government’s evidence, Dock Wireless had no employees, and no wages were ever paid by the company.

Butziger also admitted that he conspired with Staveley to submit three fraudulent bank loan applications for SBA loans under the PPP totaling $438,577. The loans were to be used to pay employees at three restaurants Staveley claimed to own, Top of the Bay and Remington House in Warwick and On The Trax in Berlin, MA. According to government’s evidence, Staveley had no ownership interest in any of the business; none of them were open at the time; and there we no employees at time the loan applications were filed.

Today, Butziger was sentenced by U.S. District Court Judge McElroy to three years of supervised release, the first six months to be served in home confinement with electronic monitoring, and ordered to pay a fine of $5,000.

The cases were prosecuted by Assistant U.S. Attorney Lee H. Vilker.

The matter was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.

The Justice Department acknowledges and thanks the SBA Office of Inspector General and the FDIC, Office of Inspector General for their assistance in the investigation.

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