A Las Vegas area resident charged with perpetrating a prize-notification scheme that bilked victims out of more than $10 million pleaded guilty today, the Department of Justice announced.
Andrea Burrow, 50, pleaded guilty to conspiracy to commit mail fraud based on her participation in a scheme that preyed upon hundreds of thousands of victims, many of whom were elderly and vulnerable, with fraudulent prize notices. The notices led victims to believe that they could claim a large cash prize if they paid a small fee. This was false; victims who paid the fees did not receive anything of value.
Burrow is the fourth defendant to plead guilty in connection with the scheme. Three other individuals – Patti Kern, Edgar Del Rio, and Sean O’Connor – pleaded guilty to conspiracy to commit mail fraud in 2019. Following these guilty pleas, Burrow was indicted in November 2019 along with five others: Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, and Jose Luis Mendez. The trial of the remaining five defendants is currently scheduled for Sept. 28, 2020.
“The defendant and her co-conspirators exploited the elderly and vulnerable by bombarding them repeatedly with false promises of wealth,” said Acting Assistant Attorney General Ethan P. Davis of the Department of Justice’s Civil Division. “Today’s guilty plea demonstrates the Department’s continuing commitment to bring to justice those who prey upon the elderly.”
The scheme operated from 2010 to February 2018, when postal inspectors executed multiple search warrants and the Department of Justice obtained a court order shutting down the fraudulent mail operation. The indictment and other court filings alleged that Mario Castro, Jose Salud Castro, Salvador Castro, Miguel Castro, Jose Luis Mendez, and Edgar Del Rio worked at the printing and mailing businesses that sent the fraudulent mail, and each shared the profits from the fraudulent prize notices with Patti Kern, who helped manage the scheme. Sean O’ Connor provided laser printing and data processing services to the scheme. Burrow opened victim return mail, sorted cash and other payments, and entered data from the victims’ responses into a database that the scheme used to target past victims with more fraudulent mail, according to the indictment.
“Postal Inspectors are dedicated to the pursuit of protecting those who can’t protect themselves. This guilty plea should be a warning to all individuals who use promises of large cash prizes to build their own wealth the U.S. Postal Inspection Service will find you and you will be held accountable,” said Inspector in Charge Delany De Leon-Colon, Criminal Investigations Group
Today’s plea took place before U.S. District Judge Gloria Navarro. When sentenced, Burrow faces a statutory maximum sentence of up to 20 years in prison.
The U.S. Postal Inspection Service investigated the case. The case is being prosecuted by Trial Attorneys Timothy Finley and Daniel Zytnick of the Department of Justice Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Nicholas Dickinson of the District of Nevada.
An indictment is an accusation by a federal grand jury and is not evidence of guilt. Defendants should be presumed innocent unless and until proven guilty.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities. Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorneys’ District of Nevada Office, visit their website at www.justice.gov/usao-nv.
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- French West Indies Travel AdvisoryBy Sam NewsSeptember 26, 2020Reconsider travel [Read More…]
- Former CEO and Founder of Technology Company Pleads Guilty to Investment Fraud SchemeBy Sam NewsDecember 3, 2020The former chief executive officer (CEO) and co-founder of Trustify, Inc. (Trustify), a privately-held technology company founded in 2015 and based in Arlington, Virginia, pleaded guilty today to his involvement in a fraud scheme resulting in millions of dollars of losses to investors.[Read More…]
- Health Care Funding: Federal Obligations to and Funds Received by Certain Organizations Involved in Health-Related Services, 2016 through 2018By Sam NewsJanuary 21, 2021GAO reviewed federal funding provided to various organizations that offer health-related services, such as voluntary family planning and activities related to the treatment and prevention of HIV/AIDs. In total, the organizations in our review received almost $16 billion through grants or cooperative agreements from the Department of Health and Human Services or U.S. Agency for International Development from 2016 through 2018; nearly all of this funding was received by federally qualified health centers. (See table.) Reported Amounts of Funds Received through Federal Grants or Cooperative Agreements by Organizations in GAO’s Review, 2016-2018 Dollars in millions Federal agency 2016 2017 2018 Total Department of Health and Human Services (HHS) Federally qualified health centers (FQHC) 4,891.03 5,251.93 5,291.81 15,434.77 Planned Parenthood Federation of America (PPFA) 94.86 106.12 103.51 304.49 International Planned Parenthood Federation (IPPF) 2.30 2.05 1.20 5.55 Marie Stopes International (MSI) 0.00 0.00 0.00 0.00 Total HHS 4,988.19 5,360.10 5,396.52 15,744.81 U.S. Agency for International Development (USAID) FQHC 0.00 0.00 0.00 0.00 PPFA 0.00 0.00 0.00 0.00 IPPF 2.13 5.48 7.80 15.41 MSI 36.64 34.20 15.62 86.46 Total USAID 38.77 39.68 23.42 101.87 Total (HHS and USAID) 5,026.96 5,399.78 5,419.94 15,846.68 Source: GAO analysis of HHS, PPFA and USAID, data. | GAO-21-188R We provided a draft of this report to the Secretary of Health and Human Services and the USAID Administrator for comment. HHS did not have any comments. USAID provided technical comments, which we incorporated as appropriate. GAO is not making any recommendations. In order to achieve their programmatic goals, federal agencies provide funding to various organizations that, in turn, use those funds to implement programs and activities aligned with those goals. For example, federal agencies may award funding through grants or cooperative agreements for programs. The organizations that are awarded the funding receive and spend the funds over a period of time. GAO was asked to report on federal funding for certain organizations that provide health-related services. This report describes the extent of federal funding through grants and cooperative agreements for federally qualified health centers, Planned Parenthood Federation of America, International Planned Parenthood Federation, and Marie Stopes International from 2016 through 2018. GAO obtained and reviewed information on federal funding from the Department of Health and Human Services and the U.S. Agency for International Development—the primary sources of federal funds to the organizations in our review. GAO also obtained available information from each of the organizations. For more information, contact James Cosgrove at 202-512-7114 or email@example.com.[Read More…]
- Libya Independence DayBy Sam NewsDecember 24, 2020
- Assistant Attorney General Makan Delrahim Announces Re-Organization of the Antitrust Division’s Civil Enforcement ProgramBy Sam NewsAugust 20, 2020The Department of Justice’s Antitrust Division announced today that it is creating the Office of Decree Enforcement and Compliance and a Civil Conduct Task Force. Additionally, it will redistribute matters among its six civil sections in order to build expertise based on current trends in the economy.[Read More…]
- Turks and Caicos Islands Travel AdvisoryBy Sam NewsSeptember 26, 2020Reconsider travel to the [Read More…]
- Virginia Tax Preparer Sentenced to More Than Two Years in Prison for Preparing False ReturnsBy Sam NewsJanuary 4, 2021A Newport News, Virginia, tax return preparer was sentenced to 27 months in prison for preparing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.[Read More…]
- Today Is the Last Day to Vote for NASA’s 12 Webby Award NominationsBy Sam NewsSeptember 26, 2020You can cast your [Read More…]
- Man from the Congo found guilty in smuggling attemptBy Sam NewsIn Justice NewsMay 18, 2021A federal jury has [Read More…]
- On the Occasion of the Official Birthday of Her Majesty Queen Elizabeth IIBy Sam NewsJune 12, 2021Antony J. Blinken, [Read More…]
- U.S.-ASEAN Smart Cities Partnership (USASCP): Sharing Expertise Between Cities to Benefit the People of ASEANBy Sam NewsNovember 14, 2020
- Former President of Nuclear Transportation Company Sentenced to Prison for Foreign Bribery and Other OffensesBy Sam NewsOctober 28, 2020The former president of Transport Logistics International Inc. (TLI), a Maryland-based transportation company that provides services for the transportation of nuclear materials to customers in the United States and abroad, was sentenced today to 48 months in prison and three years of supervised release for his role in a scheme to bribe a Russian official in exchange for obtaining contracts for the company.[Read More…]
- Investment Professional and Author is Sentenced for Defrauding National Women’s SororityBy Sam NewsNovember 5, 2020A Florida woman was sentenced to 24 months in prison today for her role in an investment management scheme.[Read More…]
- Statement from Attorney General Merrick B. Garland on the COVID-19 Hate Crimes ActBy Sam NewsMay 20, 2021Attorney General Merrick B. Garland made the following statement after President Biden's signing of the COVID-19 Hate Crimes Act into law:[Read More…]
- NASA’s InSight Flexes Its Arm While Its ‘Mole’ Hits PauseBy Sam NewsSeptember 26, 2020Now that the [Read More…]
- GAO Comments on AICPA Proposed SAS – Inquiries of the Predecessor Auditor Regarding Fraud and Noncompliance With Laws and RegulationsBy Sam NewsJune 21, 2021This letter provides GAO's response to the American Institute of Certified Public Accountants' (AICPA) Auditing Standards Board's (ASB) exposure draft, Proposed Statement on Auditing Standards – Inquiries of the Predecessor Auditor Regarding Fraud and Noncompliance With Laws and Regulations. GAO provides standards for performing high-quality audits of governmental organizations, programs, activities, and functions and of government assistance received by contractors, nonprofit organizations, and other nongovernmental organizations with competence, integrity, objectivity, and independence. These standards, often referred to as generally accepted government auditing standards (GAGAS), are to be followed when required by law, regulation, agreement, contract, or policy. For financial audits, GAGAS incorporates by reference the AICPA's Statements on Auditing Standards (SAS).[Read More…]
- Medicaid: CMS Needs to Implement Risk-Based Oversight of Puerto Rico’s Procurement ProcessBy Sam NewsFebruary 5, 2021Like other U.S. territories and states, Puerto Rico implements major functions of its Medicaid program by procuring services from contractors, such as the delivery of managed care services to Medicaid beneficiaries. In 2018, procurement costs represented $2.4 billion of Puerto Rico's $2.5 billion in total Medicaid expenditures. A 2019 federal indictment alleging Puerto Rico officials unlawfully steered Medicaid contracts to certain individuals has raised concerns about Puerto Rico's Medicaid procurement process, including whether this process helps ensure appropriate competition. The Centers for Medicare & Medicaid Services (CMS), within the Department of Health and Human Services, is responsible for overseeing the Medicaid program. CMS requires states and territories to use the same process for Medicaid procurements as they do for their non-federal procurements. However, CMS has not taken steps to ensure Puerto Rico has met this requirement. Instead, CMS has relied on Puerto Rico to oversee the territory's procurement process and to attest to its compliance. CMS approved Puerto Rico's attestation of compliance in 2004 and has not required subsequent updates. CMS officials told GAO that states and territories are in the best position to ensure compliance with their respective procurement laws. GAO and others have found that competition is a cornerstone of procurement. Using competition can reduce costs, improve contractor performance, curb fraud, and promote accountability. GAO reviewed selected Puerto Rico Medicaid procurements against federal procurement standards designed to promote competition and reduce risks of fraud. States and territories are generally not required to meet such standards. However, GAO and others have found that such standards can indicate whether a state's or territory's procurement process includes necessary steps to achieve fair competition. GAO found that seven of the eight selected Puerto Rico procurements did not include important steps to promote competition and mitigate the risk for fraud, waste, and abuse, underscoring the need for federal oversight. Competitive procurements. The requests for proposals for two of the three competitive procurements GAO reviewed did not include certain information on factors used to evaluate proposals and make awards. In contrast, Puerto Rico's managed care procurement—the largest procurement reviewed—included this information. Noncompetitive procurements. None of the five noncompetitive procurements GAO reviewed documented circumstances to justify not using competitive procurements, such as a lack of competition or an emergency. Puerto Rico officials explained that territorial law allows noncompetitive procurement for professional services regardless of circumstances. Because CMS does not oversee Puerto Rico's procurement process, the agency lacks assurance that Puerto Rico's Medicaid program is appropriately managing the risk of fraud, waste, and abuse. Procurements that did not include important steps to promote competition could have unnecessarily increased Medicaid costs, reducing funding for Medicaid services to beneficiaries. States' and U.S. territories' Medicaid procurement processes can directly affect their ability to prevent fraud, waste, and abuse in the program. A 2019 federal indictment alleging fraudulent Medicaid procurements in Puerto Rico has raised questions about the program's oversight. The Consolidated Appropriations Act, 2020 includes a provision for GAO to review oversight of Puerto Rico's Medicaid procurement process and its use of competition. This report examines CMS oversight of Puerto Rico's procurement process from its initial steps through the award, and how it helps ensure competition. GAO reviewed federal regulations, guidance, and Puerto Rico's December 2020 procurement reform plan; interviewed Puerto Rico and federal officials; and reviewed eight awards that represented about 97 percent of the costs of Puerto Rico's procurements in effect as of April 2020. These procurements were selected based on variation in cost, use of competition, and other factors. GAO assessed whether CMS addressed risks in Puerto Rico's procurement process by reviewing selected procurements against certain federal standards that apply to other non-federal entities and aim to mitigate the risk of fraud, waste, and abuse. GAO also assessed CMS's policies and procedures against federal internal control standards. GAO recommends that CMS implement risk-based oversight of the Medicaid procurement process in Puerto Rico. The Department of Health and Human Services concurred with this recommendation. For more information, contact Carolyn L. Yocom at (202) 512-7114 or YocomC@gao.gov.[Read More…]
- Operation Legend Expanded to Cleveland, Detroit, and MilwaukeeBy Sam NewsJuly 29, 2020Today, the expansion of Operation Legend was announced in Cleveland, Detroit, and Milwaukee. Operation Legend is a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime. The Operation was first launched on July 8 in Kansas City, Missouri, and expanded on July 22, 2020, to Chicago and Albuquerque. Operation Legend is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The first federal arrest under Operation Legend was announced on July 20.[Read More…]
- Disaster Recovery: COVID-19 Pandemic Intensifies Disaster Recovery Challenges for K-12 SchoolsBy Sam NewsOctober 14, 2020Local education officials in natural disaster-affected areas told us the Coronavirus Disease 2019 (COVID-19) pandemic has exacerbated mental health issues and contributed to lost instructional time, staff burnout, delays in recovery projects, and financial strain in their communities. These officials explained that after the natural disaster, restoring students' mental health was a top priority. Many local education officials said that the services needed to treat trauma and other disaster-related mental health issues were not readily available in their areas, and some noted that providing mental health services has been especially difficult during the pandemic. For example, one official said that because half of her students live in poverty, they usually access mental health services through the school, and were cut off from those services during the pandemic. Some local education officials said they were also particularly worried about the effects of the pandemic on their low-income and other at-risk students, noting that these students are especially vulnerable to learning loss. The COVID-19 pandemic has also affected districts by slowing progress on some disaster recovery projects. For example, an official in a district affected by wildfire said that an effort to restore running water to damaged school buildings was delayed due the pandemic. The U.S. Department of Education (Education) supported school recovery efforts by awarding nearly $1.4 billion to assist schools in over 30 states and U.S. territories with recovery from presidentially-declared major disasters occurring between 2017 and 2019, although some local education officials reported difficulty in using these grant funds during the pandemic. Education provided this funding through the Immediate Aid to Restart School Operations (Restart) and the Project School Emergency Response to Violence grant programs, among others. Local education officials from several districts and counties said that they are using or planning to use Education disaster grants to provide mental health services to students and cover other costs associated with re-opening, such as additional transportation services, but that during the pandemic this was sometimes challenging. For example, officials in two counties said that timeframes for using Restart funds, which expire after 2 years, were too short for long-term recovery needs such as mental health services, particularly with the compounding effects of the pandemic. Education officials said that grantees may request waivers to extend the end dates of these grants and that as of October 2020, no Restart grantees who experienced a 2018 disaster had done so. With regard to oversight, Education officials said they paused on-site monitoring efforts for recent disaster grants as a result of the pandemic, but have continued to hold quarterly phone calls with Restart grantees. These grantees have noted some challenges related to the grant program but have not discussed specific technical assistance needs, according to Education officials. More than 260 presidentially-declared major disasters have occurred since 2017, affecting every state and several U.S. territories, according to the Federal Emergency Management Agency (FEMA). Many of these natural disasters have had devastating effects, including rendering K-12 school facilities unusable for lengthy periods of time. These schools are now experiencing the compounding challenge of recovering from natural disasters while managing effects of the COVID-19 pandemic. Social distancing practices and building closures are meant to keep staff and students safe, but may also complicate recovery efforts for disaster-affected districts. The Additional Supplemental Appropriations for Disaster Relief Act of 2019 provided funds for GAO to audit issues related to presidentially-declared major disasters that occurred in 2018. We reviewed (1) how the COVID-19 pandemic has affected schools recovering from recent natural disasters; and (2) support Education has provided to help school recover from recent natural disasters and how the COVID-19 pandemic has affected schools' use of these resources. We interviewed 29 local education officials representing over 50 school districts in California, Commonwealth of the Northern Mariana Islands, Florida, and Hawaii, which were selected because they were affected by a diverse set of major natural disasters in 2018 that occurred in a mix of populated and less-populated areas. In addition, through a national school superintendents association, we convened a discussion group of superintendents who have experienced natural disasters and mentor other affected districts. Finally, we reviewed federal guidance and interviewed Education officials. For more information, contact Jacqueline M. Nowicki at (617) 788-0580 or firstname.lastname@example.org.[Read More…]
- Professional Standards Update No. 80By Sam NewsApril 27, 2021To alert the audit community to changes in professional standards, we periodically issue Professional Standards Updates (PSU). The purpose of these updates is to highlight the effective dates and issuance of recent standards and guidance related to engagements conducted in accordance with Government Auditing Standards. PSUs contain summary information only, and those affected by a change should refer to the respective standard or guidance for details. This PSU has three sections.[Read More…]
- Kenya Travel AdvisoryBy Sam NewsSeptember 26, 2020Reconsider travel [Read More…]
- Secretary Pompeo’s Meeting with Islamic Republic of Afghanistan’s Negotiating TeamBy Sam NewsNovember 21, 2020
- Florida Tire Importer Pleads Guilty in Tax ConspiracyBy Sam NewsDecember 10, 2020A Miami, Florida, tire importer pleaded guilty today to conspiracy to defraud the government, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida.[Read More…]
- Higher Education: Department of Education Should Further Assess College Access Grant ProgramsBy Sam NewsJanuary 19, 2021Why This Matters The Department of Education gives grants to schools and organizations that provide disadvantaged students with services to help them attend college. These eight grant programs are collectively known as “TRIO”, named for the original three programs. Congress provides over $1 billion each year to these programs, but Education could do more to understand how well these grants work to help students. Key Takeaways Education could improve the information it has about TRIO programs in two areas: (1) grantee performance data, and (2) program assessments. Schools and organizations report data to Education to show how the TRIO grants they receive have been working. For example, organizations that receive grants to encourage students to complete college report on the numbers and percentages of students who received services and earned degrees. Education evaluates grantees’ performance using the self-reported data, but has done little to verify the data. Accurate performance data are important because returning grantees can earn points for past performance in the next grant competition—increasing the likelihood that they will receive new grants. Almost 80 percent of recent TRIO grants went to returning grantees. Therefore, grantees may have an incentive to report a more positive picture than warranted. Officials from an organization representing TRIO grantees told us there is a risk that some grantees may report inaccurate information. As for assessing the individual TRIO programs, studies of some programs are outdated. In addition, Education has never assessed the effectiveness of three of the seven TRIO programs that serve students, and did not have any new assessments planned as of August 2020. How GAO Did This Study We analyzed data from Education about TRIO grantees and applicants. We also reviewed relevant federal laws and regulations and agency documents, and interviewed Education officials and other TRIO stakeholders. Education should take additional steps to ensure the reliability of grantees' performance data and develop a plan for assessing the effectiveness of the TRIO programs that serve students. Education generally agreed with our recommendations. For more information, contact Melissa Emrey-Arras at (617) 788-0534 or email@example.com.[Read More…]
- Secretary Blinken’s Call with Colombian Foreign Minister BlumBy Sam NewsJanuary 29, 2021
- Pain Clinic Medical Providers Sentenced for Their Roles in Operating Pill Mills in TennesseeBy Sam NewsDecember 10, 2020Three defendants, all of whom are nurse practitioners, were sentenced to prison for their roles in prescribing massive quantities of opioids from pill mills in Knoxville, Tennessee.[Read More…]
- The United States Supports the Voices of the Venezuelan PeopleBy Sam NewsDecember 16, 2020
- On the Occasion of Koningsdag in the NetherlandsBy Sam NewsApril 27, 2021Antony J. Blinken, [Read More…]