COLUMBIA, SC – The United States Attorney’s Office for the District of South Carolina announced today that Early Autism Project, Inc. (“EAP”) has paid the United States $8,833,615 to resolve a False Claims Act investigation that it submitted false claims to the TRICARE and the South Carolina Medicaid programs for therapy services for children with autism. EAP is South Carolina’s largest provider of intensive behavioral treatment to children with autism, known as Applied Behavioral Analysis (“ABA”) therapy. TRICARE is the federal health insurance program for active and retired military members and their families, while South Carolina Medicaid provides health benefits to qualifying low-income residents of South Carolina.
The settlement announced today resolves allegations that EAP billed TRICARE and South Carolina’s Medicaid program for ABA therapy services for children with autism that either misrepresented the services provided or where the services were not provided at all. As it relates to Medicaid’s PDD Waiver, EAP devised a program that required its therapists to reserve an allotment of billable time each week or month so that EAP could bill Medicaid for positions called Regional Lead and Regional Coordinator. The United States contends that these Regional Leads and Regional Coordinators were not actively working with the child from whom the hours were deducted, but rather, the EAP-devised program was designed to maximize profits by billing Medicaid for administrative and management functions of the company. Medicaid does not pay for therapy services by individuals who are not actively working with the child for whom the therapy is billed. The United States also contends that EAP allowed its therapists to regularly “pad” the hours it billed for therapy services to the TRICARE program and to South Carolina Medicaid, such that these programs regularly paid for therapy services that were not provided.
“Companies that commit to providing intensive behavioral treatment to children with autism, at a pivotal time of that child’s development, should be held accountable if they do not provide the services, but nevertheless request payment for those services,” said Barbara Bowens, Acting United States Attorney for this case and Civil Chief for the United States Attorney’s Office for the District of South Carolina. “The United States Attorney’s Office is committed to protecting the federally-funded programs that make it possible for children with special needs to receive these vital services.”
The civil investigation arose from a lawsuit filed by a former employee of EAP, Olivia Zeigler, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. Ms. Zeigler will receive $435,000.
As part of the settlement announced today, EAP, and its parent company, ChanceLight, Inc. have also entered into a Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General (HHS-OIG), which seeks to ensure future corporate compliance by requiring internal compliance reforms, including hiring an independent review organization to conduct annual claims reviews.
“That the State’s largest service provider for autistic children would defraud government health programs is compounded only by their billing at the expense of taxpayers for misrepresented or nonexistent services—as alleged here,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “We will continue to work with our law enforcement partners to protect vulnerable patients and preserve government health programs.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service (“DCIS”) and our law enforcement partners to ensuring that medical service providers are held accountable when they submit false bills and divert taxpayer funds. DCIS protects the integrity of Defense Department programs by rooting out fraud, waste, and abuse that negatively affects critical programs such as TRICARE,” said Special Agent in Charge Robert Craig, DCIS Mid-Atlantic Field Office.
This case was handled by Assistant United States Attorney Beth Warren, HHS-OIG, DCIS, and the Medicaid Fraud Control Unit of the South Carolina Attorney General’s Office.
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by this settlement are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Zeigler v. South Carolina Early Autism Project, Inc., No. 3:15-cv-2750-MBS (D.S.C., filed July 11, 2015).
Columbia, South Carolina --- Acting U.S. Attorney A. Lance Crick of South Carolina, 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
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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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
CHARLESTON, S.C. — Richard Alexander “Alex” Murdaugh, 55, of Hampton, was sentenced to 40 years in prison for 22 federal financial crimes, including conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering.
Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. He pleaded guilty to 22 federal crimes in September 2023, admitting to engaging in three different schemes to obtain money and property from his personal injury clients.
In one scheme, Murdaugh admitted that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. Murdaugh asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected hundreds of thousands of dollars in fees as personal representative or conservator for Murdaugh’s personal injury clients.
As part of the scheme, Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were drawn on Murdaugh’s law firm’s trust account and identified the personal injury clients on the memo lines. Murdaugh then had the checks delivered to Laffitte, who distributed the checks for Murdaugh’s benefit, including to pay off personal loans and for personal expenses and cash withdrawals. Murdaugh pleaded guilty to one count of conspiracy to commit wire and bank fraud, one count of bank fraud, and two counts of wire fraud associated with this scheme.
In November 2022, Laffitte was convicted on six federal charges for conspiracy to commit wire and bank fraud, bank fraud, wire fraud, and misapplication of bank funds for his role in this scheme. In August 2023, Laffitte was sentenced to seven years in federal prison.
In a second scheme, from at least September 2005 until at least September 2021, Murdaugh obtained money from his clients and his law firm by means of false pretenses. As part of the scheme, he routed and redirected clients’ settlement funds to personally enrich himself, including by:
Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s bank accounts without proper disclosure or client or law firm approval;
Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit;
Claiming and collecting attorney’s fees on fake or nonexistent annuities;
Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses;
Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and
Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account.
Murdaugh admitted that in September 2015, he created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. From in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh pleaded guilty to three counts of wire fraud and 14 counts of money laundering relating to the theft of client money using the “fake Forge” account.
Finally, Murdaugh admitted that, from in or around February 2018 until at least October 2020, Murdaugh conspired with Beaufort personal injury attorney Cory Fleming to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire Fleming to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies.
Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. Murdaugh admitted that he directed Fleming to retain hundreds of thousands of dollars in settlement funds for their own personal benefit, representing those funds as “prosecution expenses” to the state court. Murdaugh and Fleming knew the funds did not belong to them and that there were no legitimate prosecution expenses. Murdaugh and Fleming reduced Fleming’s attorney’s fees, and Murdaugh knew he would steal the additional funds.
Murdaugh directed Fleming to draft three checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds. Murdaugh pleaded guilty to conspiracy to commit wire fraud for his role in this scheme.
Fleming pleaded guilty to a conspiracy charge for his role in this scheme. In August 2023, he was sentenced to 46 months in federal prison.
“Murdaugh’s victims turned to him when they were particularly vulnerable, after suffering serious injuries and losing loved ones,” said Adair F. Boroughs, U.S. Attorney for the District of South Carolina. “They put their trust in him as their lawyer, and he betrayed them. His crimes were cold, calculated, and brazen, and he earned every day of his 40-year sentence. We hope that it provides at least some closure to his victims.”
"Justice was served today and a sentence of this magnitude should caution anyone who engages in financial crimes," said Steve Jensen, Special Agent in Charge of the FBI Columbia Field Office. "The defendant's actions undermine the integrity of our financial systems and cause distrust. Our message is clear: We will hold those who commit financial fraud accountable, and they will be met with severe consequences."
“Law enforcement working together at every level is vital to solving crimes and holding offenders accountable,” said Chief Mark Keel of the South Carolina Law Enforcement Division. “I’ve always said from day one of this case, and every case SLED investigates, is about following the facts no matter where they may lead. Today is another step forward for justice in South Carolina.”
United States District Judge Richard M. Gergel imposed the sentence:
360 months for conspiracy to commit wire fraud and bank fraud; bank fraud; and two counts of wire fraud affecting a financial institution, all to run concurrently.
240 months for conspiracy to commit wire fraud and three counts of wire fraud, to run concurrently to each other and to the 360-month sentences.
120 months for 14 counts of money laundering, to run concurrently to each other and consecutive to the 360- and 240-month sentences.
Murdaugh’s 480-month federal sentence will be served concurrently with his active state sentences for the murders of his wife and son and the state financial offenses to which Murdaugh previously pleaded guilty.
The court also ordered Murdaugh to pay $8,762,731.88 in restitution to his victims and imposed a $10,034,377.95 forfeiture order for Murdaugh’s ill-gotten gains.
The case was investigated by the FBI Columbia Field Office and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case.
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Caleb Elias Hartzog, Jr., age 59, of Orangeburg, pled guilty to Making a False Statement to a Government Agency, a violation of Title 18, United States Code, § 1001. Chief Judge Terry L. Wooten accepted the plea and will sentence Hartzog on September 11, 2018.
Evidence presented at the hearing established that Caleb Hartzog, a former drinking water operator for the town of Branchville, South Carolina, forged forms certifying that residents had collected drinking water samples from within their homes. Hartzog falsified forms for at least ten residential homes. Several residents claimed no one had been taking water samples from their homes for some time, and, in certain cases, ever. The samples were to be analyzed for potential lead and copper contamination. None of the ten residents had signed the forms in 2014, the year that is the basis for the criminal charges.
Testing performed after Hartzog was no longer the drinking water operator revealed no contamination of the Branchville water supply.
The maximum penalty faced by Hartzog is imprisonment for five years, with a potential fine up to $250,000.
The U.S. Environmental Protection Agency and South Carolina Department of Health and Environmental Control (DHEC) investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Preston Alexander Elmore, age 35, of Bishopville, pled guilty in federal court in Columbia to Theft of Government Money, a violation of Title 18, United States Code, § 641. Senior United States District Judge Margaret B. Seymour, of Columbia, accepted the guilty plea and will sentence him at a later date.
Elmore received farm loans from the USDA Farm Service Agency office in Bishopville in 2012. The loans were to be used to purchase a tractor, a combine, grain heads, an irrigation system, a generator, and to dig a well.
On April 2, 2012, Elmore requested $19,800 from the USDA for the purchase of farm equipment. Specifically, he planned to purchase two John Deere tractors, a John Deere grain head implement, and a John Deere corn head implement from his parents. He did not use the loan money to make these purchases.
On June 27, 2012, Elmore was loaned $59,900 for the remainder of money owed to Palmetto Irrigation for a generator and irrigation system. None of the money went to pay for these items. Instead, the money went to Elmore’s account, and he used it for his own purposes.
Elmore defaulted on both loans. Furthermore, Elmore damaged, destroyed, removed, or sold the collateral for the irrigation system and the generator.
Ms. Drake stated the maximum penalty faced by Elmore is imprisonment for ten years and a fine of $250,000.
The United States Department of Agriculture, Office of the Inspector General, investigated the case. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office is prosecuting the case.
Charleston, South Carolina --- Acting United States Attorney Rhett DeHart announced today that James Thomas Bramlette, 42, of Salt Lake City, Utah, pled guilty to Wire Fraud and Tax Fraud in violation of 18 U.S.C. § 1343 and 26 U.S. § 7202, before United States District Judge Richard M. Gergel. Bramlette will be sentenced at a later date.
The following evidence was presented at the guilty plea: this investigation involved Melrose Report on Daufuskie Island, S.C. Bramlette was a real estate developer in Salt Lake City, Utah. In 2011, he borrowed $17.5 million from a Dutch investor to purchase the resort out of bankruptcy. This loan was a short-term bridge loan with high interest rates. Bramlette did not put any of his own money into the purchase. Bramlette thought he could resale the resort soon after the sale, but his attempts to refinance or sell the resort failed repeatedly throughout the case.
In addition to the Dutch loan, Bramlette and a co-defendant raised more than $10 million from individual investors by issuing promissory notes with high interest rates. The promissory notes were not secured by the resort. Most of the investors resided in the West.
The investment in the resort was difficult from the start. Bramlette could not make the mortgage payments to the Dutch lender, which led to a $27 million foreclosure judgment in 2014. Bramlette lost further control of the resort in October 2014 when he pledged ownership of the property to secure a separate $700,000 loan, which he later defaulted on.
Bramlette and his co-defendant struggled every month to raise money from new investors to pay the Dutch lender not to foreclose, to pay previous investors, and to pay employees, utilities, and taxes at the resort. From 2013 through 2017, Bramlette repeatedly told investors that the resort was on the cusp of being refinanced by a private equity firm. While several firms considered investing in the resort, none of these deals came to fruition.
After he lost control of Melrose Resort in late 2014, Bramlette was allowed to remain as manager of the resort due to his operational knowledge of the property. Part of his duties as manager included paying the property taxes for Melrose Resort.
Concerning the wire fraud charge, in September 2016, Melrose Resort owed $502,759 in past due property taxes to the Beaufort County Treasurer’s Office. As a result of this tax delinquency, the Beaufort County Treasurer’s Office notified Bramlette that Melrose Resort would be auctioned at a tax sale if the property taxes were not paid.
On September 20, 2016, an employee of Bramlette emailed this notice and stated that “we have a week from this Friday, September 30th, 2016 to pay these taxes, which total $502,759.40 or the properties go up for sale on Monday, October 3, 2016.”
It was part of the scheme to defraud that, in order to prevent the resort from being sold at this tax sale, Bramlette created a fake wire receipt that falsely represented that Melrose Resort had wired $502,759 to the Beaufort County Treasurer’s Office to pay the property taxes. In reality, Melrose Resort had only $121.07 in its bank account at this time, and these funds were not wired as Bramlette represented.
It was further part of the scheme that Bramlette emailed the fraudulent wire receipt to one of his employees, and he caused this employee to send the fraudulent wire receipt to the Beaufort County Treasurer’s Office, in order to have Melrose Resort removed from the tax sale. After receiving the fraudulent wire receipt, the Beaufort County Treasurer’s Office removed Melrose Resort from the tax sale.
As to tax fraud charge, Bramlette was required to collect and pay over federal payroll taxes from the wages of all employees at Melrose Resort. Bramlette collected payroll taxes from the Melrose employees, but he failed to turn over these taxes to the IRS. In total, Bramlette collected but failed to turn over to the IRS approximately $1 million in payroll taxes.
In addition to the fraud above, Bramlette used at least $1.8 million from investors for personal use, which was not disclosed to investors. Bramlette lived a lavish lifestyle, and he spent money on himself even when he failed to pay employees, vendors, and subcontractors. The accountant at his company urged Bramlette to draw a salary and not use investor money for personal use. Bramlette ignored this advice and failed to report this income to the IRS or even file income tax returns.
This case was prosecuted by Acting United States Attorney Rhett DeHart. It was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the Securities and Exchange Commission in Los Angeles.
Columbia, South Carolina --- United States Attorney Sherri A. Lydon announced today that Kaycee White, 22, of Camden, South Carolina, was sentenced to 20 years in federal prison for kidnapping, carjacking, robbery, and firearm offenses.
Evidence presented to the court showed that White was responsible for a home invasion and armed robbery in Kershaw County in April and May 2016. During the home invasion, White entered a home with a sawed-off shotgun, held residents at gunpoint, and forced them into their vehicle. Once in the vehicle, White forced the victims to drive him to an ATM, where he demanded that a victim withdraw money and provide it to him. Fortunately, White left the scene after receiving the money and none of the victims were physically harmed.
Approximately two weeks later, White robbed a gas station located in Camden. During the robbery, White entered the station and held the clerk at gun point with a sawed-off shotgun, threatening to kill the clerk if he did not receive money. Ultimately, the clerk provided money to White and White ran from the store.
On January 10, 2018, White pled guilty to Kidnapping, Carjacking, Hobbs Act Robbery, and Use of a Firearm in Furtherance of a Crime of Violence. Senior United States District Judge Joseph F. Anderson sentenced White to 240 months in federal prison, to be followed by a 3-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Camden Police Department, the Kershaw County Sherriff’s Office, and the South Carolina Law Enforcement Division. Assistant United States Attorney Will Lewis of the Columbia office prosecuted the case.
Columbia, South Carolina –------- United States Attorney Beth Drake announced today that Jeffery Michael Patterson entered a plea of guilty on charges of making a false statement to federal agents. Patterson faces a maximum sentence of up to five years in federal prison and a fine of up to $250,000. Patterson will be sentenced by United States District Judge Timothy M. Cain after the completion of a presentence investigation.
The facts presented at the guilty plea hearing established that Patterson was employed at a local FAA approved airplane repair and service facility. During the course of a routine evaluation of employees, Patterson represented that he had FAA certifications to do certain work on airplanes. The repair facility tried to verify this information through the FAA and was advised that Patterson held none of the certifications that he claimed to have. The matter was then referred to the Inspector General (IG) of the Federal Department of Transportation for investigation. IG Special Agents interviewed Patterson, and he made false statements to them to include the false statement that he had the FAA certifications but that they were under other names because his name had been changed numerous times by the Treasury department to protect his family from drug dealers who had been investigated by his father while working as a drug enforcement officer. At the guilty plea hearing, Patterson admitted that this story was bogus.
The case was prosecuted by Assistant United States Attorney David C. Stephens of the Greenville Office.
FLORENCE, SOUTH CAROLINA — A federal grand jury in Florence returned a five-count indictment against Troy Benjamin Bittner, 53, of Myrtle Beach, for defrauding a local resort out of nearly $1 million during the pandemic.
The indictment alleges that Bittner, in his role as manager for Carolina Pines RV Resort, used his access to the company’s credit card reservation system to commit wire fraud. Specifically, although certain guests stayed at Carolina Pines, Bittner would nonetheless use the electronic payment system to initiate a refund as if those guests had cancelled their reservations. According to the indictment, during the Coronavirus pandemic it was not uncommon for guests to cancel reservations. However, rather than direct the refunds to the credit cards on file, Bittner instead issued the refunds to his own various personal credit cards. Over the 26-month window of Bittner’s alleged scheme, he received more than $800,000 in fraudulent refunds at the expense of Carolina Pines.
Bittner faces a maximum penalty of 20 years in federal prison, in addition to forfeiture and restitution.
The case is being investigated by the U.S. Secret Service, Federal Bureau of Investigation, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Derek A. Shoemake is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
SPARTANBURG, SOUTH CAROLINA — Brian Thomas Rogers, 53, of Anderson, owner of Rogers Environmental, LLC, was sentenced to three years of probation, to include the first six months on an overnight curfew, ordered to pay a $25,500 fine, and will perform 100 hours of community service after pleading guilty to Making a False Statement in a Clean Air Act Document.
Evidence presented to the Court showed that on May 1, 2018, Rogers Environmental was contracted to perform an asbestos building inspection at Pratt Hall on the campus of Anderson University, Anderson County, South Carolina. Rogers' limited survey report stated that no asbestos containing material (ACM) was found in the materials sampled. Based on the negative ACM survey, contractors commenced with demolition and renovation.
On June 20, 2018, while removing flooring from a bathroom, the sub-contractor encountered 9x9 floor tile and black mastic under the top layer of flooring, which it suspected to contain asbestos.
On June 21, 2018, Rogers was called back to the site and collected two additional samples. Rogers later provided the contractor, by email, with a lab report that showed the two additional samples did not contain asbestos.
On June 22, 2018, after learning of Rogers’ negative asbestos report and doubting the result, the sub-contractor collected its own samples from the same room inspected by Rogers and sent the samples to the same lab for analysis. The lab report indicated that asbestos was present in the two samples.
Due to the discrepancies between Rogers Environmental and the subcontractor’s sampling reports, the sub-contractor notified the general contractor, who in turn brought in a new building inspection company to resample the entire building.
On June 25, 2018, the new company surveyed and collected samples from the entire site, which documented approximately 29 samples had positive asbestos results. The total amount of asbestos found was approximately 3,620 square feet.
Investigators for DHEC later interviewed Rogers, who admitted changing the original lab results on one sample from 20% chrysotile (asbestos) to none detected. Rogers also admitted that he emailed the manipulated false documents to the general contractor.
United States District Judge Donald C. Coggins, Jr., ordered the sentence, recommending that Rogers perform his community service at Anderson University. Rogers will satisfy the fine in payments of $750 per month for roughly three years.
This case was investigated by the Environmental Protection Agency, Criminal Investigative Division, and the South Carolina Department of Health and Environmental Control. Assistant U.S. Attorney Winston D. Holliday, Jr., is prosecuting the case.
FLORENCE, SOUTH CAROLINA — Twelve Defendants across seven construction-related companies have been sentenced for employment tax fraud felonies and crimes related to hiring unauthorized aliens in the largest criminal Internal Revenue Service (IRS) operation in the history of the Pee Dee region.
The convictions are the first to come from an expansive multi-year undercover investigation in the Myrtle Beach area and throughout the South Carolina coast led by the IRS and Homeland Security Investigations (HSI).
The operation targeted those in the construction industry who used unlicensed check cashers to facilitate under-the-table cash payments to employees, many of whom were unauthorized aliens. The check cashers would also provide certificates of insurance falsely stating that the employees were covered under workers’ compensation insurance. These off-the-book payments defrauded the United States out of applicable employment taxes on the employees. At least $15 million in checks were cashed by these Defendants, resulting in millions of dollars of total losses to the Government. Based on the investigation, at least tens of millions of dollars of tax losses have occurred throughout the South Carolina coast because of similar schemes.
“These Defendants stole money from South Carolina taxpayers, they stole opportunities from those in the construction industry who did the right thing, and they stole safety from the workers who labored on jobsites without insurance,” said U.S. Attorney Corey F. Ellis. “This successful prosecution was only possible because of the tireless and dedicated investigative efforts of IRS and HSI, as well as the work of our local partners. The Defendants in this case, none of whom had criminal records before this investigation, are all now convicted felons. Several face potential deportation, several have lost their homes and face financial ruin, and many will never be able to return to the work they spent their lives pursuing. This case should be a message to businesses and individuals who try to get ahead by breaking the law: it is not worth it because we are watching you and we will prosecute you.”
“Unscrupulous businesses who willfully skirt their tax and legal workforce obligations must be held to account,” said IRS CI Special Agent in Charge Donald “Trey” Eakins. “Employers who deliberately deflect these obligations undermine what is owed to the U.S. Government in payroll taxes and other fees, in addition to creating an unfair economic advantage over law-abiding business owners who play by the rules.”
“Criminals that exploit U.S. labor and tax laws for profit take advantage of not only the workers, but they also steal revenue from the Government, while also creating an unfair business advantage over their competitors,” said Special Agent in Charge Ronnie Martinez, who oversees HSI operations in North Carolina and South Carolina. “Thanks to the great work done by our agents along with our state, local and federal partners we were able to stop this criminal organization from defrauding the Government and hurting the local economy.”
Evidence presented to the court showed that beginning around late 2018, IRS and HSI began jointly investigating the practice of illegal check cashing within the construction industry in the Myrtle Beach area and in other regions along the South Carolina coast. In approximately 2019, various IRS undercover agents embedded themselves in the Myrtle Beach area and recorded multiple interactions with the various defendants’ companies.
Specifically, certain construction companies would use check cashers so that they could hire unauthorized aliens and avoid paying employment taxes on their workers. To facilitate the scheme, a member of the construction company would meet with an unlicensed check casher in places like parking lots for retail stores or coffee shops. The construction company would give the check casher a business check in a certain amount made out to a company the check casher had created, and the check casher would give the construction company representative a bag of cash that would be used to pay the employees. In exchange for their services, the check casher held back a fee of approximately three percent.
To make it appear like the employees had valid insurance on job sites, the check casher would also provide a certificate of workers’ compensation insurance that was not actually valid for any of the construction company’s employees. The parties agreed that the check casher would, on paper, claim to be a subcontractor who provided the employees and provided insurance. However, the parties knew that the check casher provided no other services or employees to the construction company. The check casher only provided a way to hide the true nature of the scheme, to allow the construction company to hire unauthorized aliens, and to pay workers with untaxed cash.
Chief United States District Judge R. Bryan Harwell sentenced each of the Defendants to five years’ probation, with all but one sentenced to home confinement. Further, the Court ordered each Defendant to pay restitution as a result of the tax losses they caused the Government. The Court imposed the probation sentences largely because the Defendants admitted guilt early, agreed to assist authorities, paid collectively nearly a million dollars toward the approximately $3 million dollars owed to the IRS in restitution, and agreed as a condition of probation to make monthly payments – in most cases substantial payments – until the IRS is made whole. The following Defendants from the respective companies were sentenced in the case:
Daniel Lavoie Construction Services (4:21-cr-00585)
Daniel A. Lavoie, 49, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
Enrique R. Reyes, 48, of Conway: Five years’ probation, 18 months home confinement with location monitoring, and $293,402.50 in restitution
Duran Masonry (4:21-cr-00584)
Walter A. Duran, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $976,076.08 in restitution
Lisa Caulley Sellers, 57, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $488,038.04 in restitution
Extreme Siding (4:21-cr-00595)
Ming Xue Nan, 52, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $173,712.43 in restitution
Katherine L. Welker, 39, of Myrtle Beach: Five years’ probation, eight months home confinement with location monitoring, and $173,712.43 in restitution
Master Homes Calabash (4:21-cr-00581)
Josafa P. Neto, 43, of Myrtle Beach: Five years’ probation, 18 months home confinement with location monitoring, and $209,847.07 in restitution
Marylany Hardman Levino, 36, of Myrtle Beach: Five years’ probation and $209,847.07 in restitution
Metro Concrete Finishers (4:21-cr-00594)
Saul Prieto, 56, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
Martha E. Zarate, a/k/a Martha E. Prieto, 54, of Myrtle Beach: Five years’ probation, nine months home confinement with location monitoring, and $74,868.50 in restitution
Master Homes Design Center (4:21-cr-00582)
Marcos Caetano De Almeida, 45, of Myrtle Beach: Five years’ probation, 21 months home confinement with location monitoring, and $298,816.52 in restitution
Paint By Numbers (4:21-cr-00583)
Johanna A. Carpio, 38, of Myrtle Beach: Five years’ probation, 14 months home confinement with location monitoring, and $131,449.69 in restitution
Each of the twelve Defendants previously pleaded guilty to an Information charging them with one felony count of conspiracy to defraud the United States and one misdemeanor count of unlawful employment of aliens.
This case was investigated by IRS and HSI, with assistance from the Myrtle Beach Police Department. Assistant U.S. Attorneys Derek A. Shoemake and Carrie Fisher prosecuted the case.
Columbia, South Carolina –------- United States Attorney Sherri A. Lydon announced today that Jeffery Michael Patterson, age 41, of Townville, South Carolina, was sentenced in Federal Court to three years’ probation for violation of Title 18, United States Code, Section 1001. The sentence was handed down by District Judge Timothy M. Cain.
The facts of the case are as follows. Patterson was employed at a local FAA approved airplane repair and service facility. During the course of a routine evaluation of employees Patterson represented that he had FAA certifications to do certain work on airplanes. The repair facility tried to verify this information through the FAA and were advised that Patterson held none of the certifications that he claimed to have. The matter was then referred to the Inspector General (I/G) of the Federal Department of Transportation (DOT) for investigation. I/G Special Agents interviewed Patterson and he made false statements to them to include the false statement that he had the FAA certifications but that they were under other names because his name had been changed numerous times by the Treasury department to protect his family from drug dealers who had been investigated by his father while working as a drug enforcement officer. At the guilty plea hearing, as well as at the sentencing hearing, Patterson admitted that this story was completely made up and bogus.
The case was prosecuted by Assistant United States Attorney David C. Stephens of the Greenville Office. United States Attorney Lydon commended Stephens, the FAA and the DOT I/G for their vigorous investigation and prosecution of the case. She stated that, “Insuring the safety of our aircraft of all types, including commercial and military, is of great importance and one way this is accomplished is to be sure that persons working on or certifying same as airworthy, are qualified to do so.”
CHARLESTON, SOUTH CAROLINA — A federal grand jury has returned a 22-count indictment against Richard Alexander “Alex” Murdaugh, 54, of Hampton, for conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering.
“Trust in our legal system begins with trust in its lawyers,” said U.S. Attorney Adair F. Boroughs. “South Carolinians turn to lawyers when they are at their most vulnerable, and in our state, those who abuse the public’s trust and enrich themselves by fraud, theft, and self-dealing will be prosecuted to the fullest extent of the law. We are grateful to the FBI for their tireless work on this case and to the South Carolina Attorney General’s Office and the South Carolina Law Enforcement Division for their work to hold Alex Murdaugh, and those who enabled him, accountable in our state system. We remain committed to doing our part to further that effort in the federal system.”
Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. The indictment alleges that Murdaugh engaged in three different schemes to obtain money and property from his personal injury clients.
In one scheme, the indictment alleges that from at least September 2005 until at least September 2021, Murdaugh devised a scheme to defraud and to obtain money by means of false pretenses. The indictment alleges that, as part of the scheme, Murdaugh routed and redirected clients’ settlement funds to personally enrich himself, including by:
Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s accounts without proper disclosure or client or law firm approval;
Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit;
Claiming and collecting attorney’s fees on fake or nonexistent annuities;
Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses;
Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and
Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account.
In a second scheme, the indictment alleges that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. The indictment alleges that Murdaugh and his law firm asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected over $350,000 in fees as personal representative or conservator for Murdaugh’s personal injury clients.
As part of the scheme, the indictment alleges Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were then delivered to Laffitte, whom Murdaugh directed to use the settlement funds for Murdaugh’s benefit. The funds were used to pay off Murdaugh’s personal loans and for personal expenses and cash withdrawals.
In November 2022, Laffitte was convicted on six federal charges, including conspiracy to commit wire and bank fraud, bank fraud, and wire fraud for his role in this scheme. He is currently awaiting sentencing.
In a third scheme, the indictment alleges that in September 2015, Murdaugh created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. The indictment alleges that from in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh is charged with 14 counts of money laundering for using the transactions in the “fake Forge” account to conceal the proceeds of his fraud.
The indictment further alleges that, from in or around February 2018 until at least October 2020, Murdaugh conspired with a personal injury attorney in Beaufort to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire the Beaufort attorney to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies.
Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. The indictment alleges that Murdaugh and the personal injury attorney conspired to siphon settlement funds, disguised as “prosecution expenses,” for their own personal enrichment. The indictment further alleges that Murdaugh directed the Beaufort attorney to draft checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds.
Murdaugh faces the following charges:
One count of conspiracy to commit wire fraud and bank fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000;
One count of bank fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000;
Two counts of wire fraud, punishable by up to 30 years in prison and a fine of up to $1,000,000;
Three counts of wire fraud, punishable by up to 20 years in prison and a fine of up to $250,000;
One count of conspiracy to commit wire fraud, punishable by up to 20 years in prison and a fine of up to $1,000,000; and
Fourteen counts of money laundering, punishable by up to 20 years in prison and a fine of up to $500,000.
All charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case.
The case against Murdaugh is No. 9:23-cr-396 (D.S.C.). The case against Laffitte is No. 9:22-cr-658 (D.S.C.).
CHARLESTON, SOUTH CAROLINA — Richard Alexander “Alex” Murdaugh, 55, of Hampton, has pleaded guilty in federal court to all 22 charges pending against him, including conspiracy to commit wire fraud and bank fraud; bank fraud; wire fraud; and money laundering.
“Alex Murdaugh’s financial crimes were extensive, brazen, and callous,” said U.S. Attorney Adair F. Boroughs. “He stole indiscriminately from his clients, from his law firm, and from others who trusted him. The U.S. Attorney’s Office, the FBI, and SLED committed to investigating and prosecuting Murdaugh’s financial crimes when they first came to light. Today marks our fulfillment of that promise.”
Murdaugh was a personal injury attorney at a law firm in Hampton, South Carolina. He admitted to engaging in three different schemes to obtain money and property from his personal injury clients.
In one scheme, Murdaugh admitted that from in or around July 2011 until at least October 2021, Murdaugh conspired with his banker, Russell Laffitte, to commit wire fraud and bank fraud. Murdaugh asked Laffitte to serve as personal representative or conservator for numerous personal injury clients. Laffitte collected hundreds of thousands of dollars in fees as personal representative or conservator for Murdaugh’s personal injury clients.
As part of the scheme, Murdaugh directed law firm employees to make settlement checks payable to “Palmetto State Bank.” The checks were drawn on Murdaugh’s law firm’s trust account and identified the personal injury clients on the memo lines. Murdaugh then had the checks delivered to Laffitte, who distributed the checks for Murdaugh’s benefit, including to pay off personal loans and for personal expenses and cash withdrawals. Murdaugh pleaded guilty to one count of conspiracy to commit wire and bank fraud, one count of bank fraud, and two counts of wire fraud associated with this scheme.
In November 2022, Laffitte was convicted on six federal charges for conspiracy to commit wire and bank fraud, bank fraud, wire fraud, and misapplication of bank funds for his role in this scheme. In August 2023, Laffitte was sentenced to 7 years in federal prison.
In a second scheme, from at least September 2005 until at least September 2021, Murdaugh obtained money from his clients and his law firm by means of false pretenses. As part of the scheme, he routed and redirected clients’ settlement funds to personally enrich himself, including by:
Drafting, or directing law firm employees to draft, disbursement sheets to send settlement funds to Murdaugh’s bank accounts without proper disclosure or client or law firm approval;
Claiming funds held in the law firm’s trust account as attorney’s fees and directing the disbursement of those funds for his benefit;
Claiming and collecting attorney’s fees on fake or nonexistent annuities;
Creating fraudulent “expenses” that were never incurred on client matters and directing the disbursement of settlement funds to pay the cited costs, including claimed medical expenses, construction expenses, and airline expenses;
Directing other attorneys with whom he was associated on client matters to disburse attorney’s fees directly to him, rather than appropriately routing the fees through the law firm; and
Intercepting insurance proceeds intended for beneficiaries and depositing them directly into his personal account.
Murdaugh admitted that in September 2015, he created a bank account in the name of “Forge,” presenting as a legitimate corporation for structuring insurance settlements. Murdaugh was the owner of and the only authorized signer on this “fake Forge” account. From in or around May 2017 through at least July 2021, Murdaugh funneled stolen personal injury settlements through the “fake Forge” account. Murdaugh pleaded guilty to three counts of wire fraud and 14 counts of money laundering relating to the theft of client money using the “fake Forge” account.
Finally, Murdaugh admitted that, from in or around February 2018 until at least October 2020, Murdaugh conspired with Beaufort personal injury attorney Cory Fleming to defraud the estate of Murdaugh’s former housekeeper and Murdaugh’s homeowner’s insurance carriers. In February 2018, Murdaugh’s housekeeper passed away after a fall at Murdaugh’s home. Murdaugh recommended that the housekeeper’s estate hire Fleming to represent them and file a claim against Murdaugh to collect from his homeowner’s insurance policies.
Murdaugh’s insurance companies settled the estate’s claim for $505,000 and $3,800,000. Murdaugh admitted that he directed Fleming to retain hundreds of thousands of dollars in settlement funds for their own personal benefit, representing those funds as “prosecution expenses” to the state court. Murdaugh and Fleming knew the funds did not belong to them and that there were no legitimate prosecution expenses. Murdaugh and Fleming reduced Fleming’s attorney’s fees, and Murdaugh knew he would steal the additional funds.
Murdaugh directed Fleming to draft three checks totaling $3,483,431.95 made payable to “Forge.” Murdaugh then deposited the checks into his “fake Forge” account and used the funds for his own personal enrichment. The estate did not receive any of the settlement funds. Murdaugh pleaded guilty to conspiracy to commit wire fraud for his role in this scheme.
Fleming pleaded guilty to a conspiracy charge for his role in this scheme. In August 2023, he was sentenced to 46 months in federal prison.
As part of his guilty plea, Murdaugh agreed to waive his appeal and post-conviction rights, with narrow exceptions. He has also agreed to be fully truthful with federal, state, and local law enforcement agencies. Provided Murdaugh fully complies with the plea agreement, the Government has agreed—consistent with the recommendation of the United States Sentencing Guidelines—to recommend that Murdaugh’s federal prison sentence run concurrent to any state sentence imposed for the same conduct.
Murdaugh faces the following penalties:
Conspiracy to commit wire fraud and bank fraud is punishable by up to 30 years in prison and a fine of up to $1,000,000;
Bank fraud is punishable by up to 30 years in prison and a fine of up to $1,000,000;
Two counts of wire fraud are punishable by up to 30 years in prison and a fine of up to $1,000,000;
Three counts of wire fraud are punishable by up to 20 years in prison and a fine of up to $250,000;
Conspiracy to commit wire fraud is punishable by up to 20 years in prison and a fine of up to $1,000,000; and
Money laundering is punishable by up to 20 years in prison and a fine of up to $500,000.
The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division. Assistant U.S. Attorneys Emily Limehouse, Kathleen Stoughton, and Winston Holliday are prosecuting the case.
The case against Murdaugh is No. 9:23-cr-396 (D.S.C.). The case against Laffitte is No. 9:22-cr-658 (D.S.C.). The case against Fleming is No. 9:23-cr-394 (D.S.C.).
Charleston, South Carolina --- United States Attorney Peter M. McCoy, Jr. announced today that Todd Van Natta, 43, of Summerville, was sentenced to five years in federal prison after pleading guilty to defrauding dozens of victims of over a million dollars via a business fraud scheme from 2016 through 2018.
Evidence presented to the court showed Van Natta sought out individuals to invest in various businesses that he controlled. The businesses were generally represented by Van Natta to purchase shipments of goods that he then would break down for resale at a profit. Through these investments, Van Natta deprived approximately 28 investors of a total of over one million dollars, with none of the investors receiving any return on their investment. The victims lived both in and outside of South Carolina, with several victims living in Ohio.
At the time of the offense, Van Natta was on federal supervised release for a similar conviction out of the District of Indiana. Information at sentencing established that Van Natta began his most recent criminal activity soon after his release from federal prison.
United States District Judge David C. Norton sentenced Van Natta to 51 months on his fraud conviction, and ten months consecutive for violating his supervised release, all to be followed by a three-year term of court-ordered supervision. The court also ordered Van Natta to pay over one million dollars in restitution to his victims. There is no parole in the federal system.
The sentencing hearing was conducted virtually, under the federal CARES Act, so that the parties did not appear in the courtroom.
The case was investigated by the Federal Bureau of Investigation and the Ohio Department of Commerce. Assistant United States Attorneys Nathan Williams and Rhett DeHart of the Charleston office prosecuted the case.
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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.
Columbia, South Carolina –------- United States Attorney Beth Drake announced today on May 2, 2018, April Cormelius Miller, age 44, of Seattle, Washington, was sentenced by District Court Judge Timothy M. Cain sitting in Anderson, South Carolina. Miller was sentenced to serve 135 months in the Federal Bureau of Prisons to be followed by 3 years of Supervised Release.
Miller was charged with two counts of wire fraud in violation of Title 18, United States Code, Section 1343. The fraud consisted of offering a totally bogus investment which purported to be a legitimate program run out of Switzerland with the approval of banking and government entities in that country. Miller would represent to potential investors that the investment was totally risk free and that the returns were up to 100% each month. In order to boost her credibility Miller would claim that she had been in banking for 20 years, that she had large personal investments, that she had a number of attorneys on her payroll, and that for 17 years she had been successfully taking investors to Switzerland to engage in the investment she was offering. These credentials turned out to be as bogus as the investment that was being offered.
In 2011 Miller came to the attention of the FBI in South Carolina which along with AUSA Stephens launched an undercover investigation into Miller’s activities. During this operation Miller was recorded pitching the “opportunity” to persons she believed to be representatives of a charitable organization which had a $30 Million endowment which they wished to invest. These persons were in fact FBI agents and operatives.
Miller was indicted in January 2012 and tried and convicted by a jury in June 2012. During the trial it was shown that the investment program was in fact totally non-existent and that Miller had none of the credentials that she had claimed. At the conclusion of the trial Miller was allowed to remain on bond, however, she became a fugitive and was not located by the United States Marshals Service until May 2017.
United States Attorney Drake commended the FBI, AUSA Stephens and the US Marshals Service for their role in a long and complicated investigation, prosecution and fugitive hunt.
COLUMBIA, South Carolina --- U.S. Attorney Peter M. McCoy, Jr. announced today that the State of South Carolina received $500,000 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime (OVC), 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.”
“This office is committed to aggressively prosecuting human trafficking, which is among the most despicable and vile forms of criminal activity,” said U.S. Attorney McCoy. “Its victims suffer immeasurably, and I am thankful that there are safe places in South Carolina for survivors of this horrendous crime to experience a transformed life.”
The grant, awarded to Doors to Freedom, will provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rent, 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 and secure employment, as well as occupational training and counseling. Doors to Freedom 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 Katharine 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.
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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.
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Joseph F. Grossmann, age 68, of Lugoff, South Carolina, pled guilty to Bank Larceny, a violation of Title 18, United States Code, § 2113(b), and was sentenced to probation for three years, including one year of home confinement. Grossmann was also ordered to pay $130,624 in restitution to the New York State Employees’ Retirement System. Magistrate Judge Paige J. Gossett presided at the hearing.
Evidence presented during the change of plea established that between 2010 and 2015, Grossmann collected retirement benefits for his sister, a former New York state employee, even though she had died. In total, he received approximately $130,624 over five years, none of which he was entitled to.
The case was originally prosecuted by the United States Attorney’s Office in the Southern District of New York. The case was transferred to South Carolina to accommodate the defendant’s health and living circumstances. Assistant United States Attorney Winston David Holliday, Jr., of the Columbia office handled today’s guilty plea and sentencing.
