Office of Inspector General for the U.S. Department of Labor OIG Investigations Newsletter October 1, 2024–December 31, 2024 Volume 54
Summary
Volume 54 of the Department of Labor Office of Inspector General's Investigations Newsletter covers October 1, 2024–December 31, 2024. It opens with three Mexican nationals who pled guilty to charges over smuggling undocumented workers into the United States, harboring them at Connecticut residences and forcing them to work in circumvention of DOL's H-2B visa program; they agreed to pay restitution of more than $490,000. Stavros Papantoniadis, owner of a Boston pizzeria chain, was sentenced to 102 months in prison for forced labor. Pandemic unemployment insurance cases include two Miami men who pled guilty to conspiracy to obtain more than $4.4 million in benefits and Jonathan Henry of Maryland, sentenced on October 1, 2024 to 97 months in prison; the headline puts the unemployment insurance benefits at $1.9 million.
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Office of Inspector General for the U.S. Department of Labor
OIG Investigations Newsletter
October 1, 2024–December 31, 2024
Volume 54
Mexican Nationals Admit Roles in Smuggling and Labor
Trafficking Scheme
On October 4, October 24, and November 22, 2024, Porfiria Maribel
Ramos Sanchez, Maria Del Carmen Sanchez Potrero, and Apolinar
Francisco Paredes Espinoza pled guilty, respectively, to charges
stemming from their involvement in a scheme to smuggle
The Office of Inspector General undocumented workers into the United States, harbor them at
(OIG) for the U.S. Department of Connecticut residences, and threaten to harm them if they failed to pay
Labor (DOL) is pleased to present exorbitant fees, interest, and living expenses. Ramos, Sanchez, and
the OIG Investigations Newsletter, Paredes forced the undocumented individuals to work in circumvention
containing a quarterly summary of of DOL’s H-2B visa program. As part of their pleas, Ramos, Sanchez,
selected investigative and Paredes agreed to pay restitution of more than $490,000.
accomplishments.
The defendants arranged to cross the border into the United States with
The OIG conducts criminal, civil, various undocumented workers for fees of between $15,000 and
and administrative investigations $20,000 per victim. In most cases, the undocumented workers were
into alleged violations of federal required to turn over a property deed as collateral before leaving
laws relating to DOL programs, Mexico. After the undocumented workers arrived in Connecticut, they
operations, and personnel. In were told they owed $30,000 plus interest. They were also forced to
addition, the OIG conducts pay Ramos, Sanchez, and Paredes for their rent, food, gas, and
criminal investigations to combat utilities. The defendants created false identity documents for the
the influence of labor racketeering undocumented workers and helped the workers find employment. In
and organized crime in the addition to their jobs, some undocumented workers were required to
nation’s labor unions in three perform—without compensation or a debt reduction—housework and
areas: employee benefit plans, yardwork. To date, the investigation has identified 18 trafficked
labor-management relations, and undocumented workers.
internal union affairs.
This is a joint investigation with the FBI, the U.S. Customs and Border
Protection, the U.S. Citizenship and Immigration Services, the U.S.
Immigration and Customs Enforcement, and the Hartford Police
Department. United States v. Maria Del Carmen Sanchez-Potrero;
United States v. Apolinar Francisco Paredes-Espinoza; United States v.
Porfiria Maribal Ramos Sanchez (D. Connecticut)
OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
Iowa Farmer Sentenced to More Than 15 Years in Cattle Theft, Bankruptcy Fraud, and Foreign
Labor Scheme
On October 10, 2024, Michael Butikofer was sentenced to serve 188 months in prison, pay restitution of
more than $5.7 million, forfeit approximately $500,000, and repay approximately $5,000 in attorney fees.
Between 2018 and 2023, Butikofer was involved in various schemes to defraud several government
programs. The fraud schemes targeted DOL’s H-2A visa program; the U.S. Department of Agriculture’s
(USDA) Packers and Stockyard Act of 1921 (P&S Act) as well as the Coronavirus Food Assistance
Program; and the Small Business Administration’s (SBA) Economic Injury Disaster Loan (EIDL)
program.
Butikofer, who operated a large farm in northeast Iowa, employed and recruited H-2A agricultural
workers from South Africa. The H-2A workers raised and cared for cattle owned by investors and other
individuals at Butikofer’s cattle-feeding business. The cattle would subsequently be sold to a Wisconsin
slaughterhouse. At no time was Butikofer or his farm registered with the USDA as a dealer under the
P&S Act.
In 2018, Butikofer used forced labor for his own financial gain. He assaulted workers, pushing one
worker towards a corn auger and tying the hands of another worker with cable ties. In 2020, three H-2A
workers obtained a civil judgment in federal court of approximately $247,000 against Butikofer for
violations of the Fair Labor Standards Act and the Trafficking Victims Protective Reauthorization Act.
Between July 2020 and February 2022, Butikofer converted the proceeds of investor-owned cattle sales,
totaling more than $2.5 million, for his own use. In July 2020 and August 2020, he defrauded the USDA
of more than $1.2 million in emergency assistance funds intended to assist livestock producers during
the COVID-19 pandemic. In February 2022, Butikofer also received more than $1.5 million from the SBA
as part of an EIDL application in which he made false representations about his financial condition and
intended use of the SBA loan funds.
As a part of his plea agreement, Butikofer agreed to voluntarily terminate and cease any current or
future participation in DOL Foreign Labor Certification programs.
This is a joint investigation with Homeland Security Investigations (HSI), the SBA-OIG, the USDA-OIG,
and the Federal Deposit Insurance Corporation-OIG. United States v. Michael Wayne Butikofer (N.D.
Iowa)
Owner of Boston Pizzeria Chain Sentenced to More Than 8 Years in Prison for Forced Labor
On October 25, 2024, Stavros Papantoniadis was sentenced to 102 months in prison and ordered to
pay a $35,000 fine after being convicted at trial of three counts of forced labor and three counts of
attempted forced labor.
Papantoniadis, the owner and operator of a pizza restaurant chain in Massachusetts, forced or
attempted to force at least five men and one woman to work for him through violent physical abuse,
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
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OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
threats of abuse, and repeated threats of deportation. He also understaffed his pizza shops and
purposely employed workers who lacked legal immigration status, allowing him to require employees to
work for 14 or more hours per day and up to seven days per week.
To maintain control of workers, Papantoniadis threatened to physically harm them or have them
deported. For example, when he became aware that a worker planned to quit, he violently choked the
victim. In another instance, Papantoniadis chased an employee out of the restaurant and made a false
report to the police to pressure the victim to return to work. He also monitored workers with surveillance
cameras, which he accessed from his cell phone, and constantly demeaned, insulted, and harassed the
victims.
This is a joint investigation with HSI. United States v. Stavros Papantoniadis (D. Massachusetts)
Massachusetts Men Pled Guilty to Migrant Smuggling Conspiracy
On November 14, 2024, Jesse James Moraes and Hugo Giovanni Moraes pled guilty to conspiracy to
encourage and induce an undocumented worker to come to, enter, and reside in the United States for
commercial advantage or private financial gain in circumvention of DOL’s H-2B visa program. Jesse
Moraes also pled guilty to conspiracy for his role in laundering the proceeds of the migrant smuggling
conspiracy.
The conspiracy involved the recruitment of undocumented migrants in Brazil to unlawfully enter the
United States through Mexico for fees of between $12,000 and $22,000 per person. The migrants were
encouraged to make fraudulent claims of asylum as well as familial relationships in the United States.
The migrants were also given fraudulent information about points of contact in the United States to
provide to immigration authorities if they were caught.
Once migrants were in the United States, Jesse Moraes and Hugo Moraes helped them secure long-
term housing, including apartments owned by Hugo Moraes’ relatives. The defendants also arranged for
some of the migrants to work at restaurants they owned. Jesse Moraes and Hugo Moraes paid the
migrants either entirely or partly in cash until the migrants obtained identification documents, at which
point they would be paid at least in part by check. The defendants encouraged the migrants working for
them to obtain false identification documents and referred them to a co-defendant to obtain such false
documents. The co-conspirators allowed some of the migrants to pay off part of their smuggling fee
once they reached the United States. The smuggling fees were collected by the withholding of wages or
by collection by relatives and other associates within and outside the United States.
The money laundering conspiracy, to which Jesse Moraes pled guilty, involved transferring funds into
and out of the United States with the intent to promote the migrant smuggling conspiracy and conduct
financial transactions with the proceeds of the smuggling conspiracy designed to conceal the ownership
and control of the proceeds.
This is a joint investigation with HSI, the Internal Revenue Service-Criminal Investigation (IRS-CI), and
the Woburn Police Department. United States v. Jesse James Moraes et al. (D. Massachusetts)
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
3
OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
Knoxville Nurse Pled Guilty to Home Health Care Fraud Scheme
On November 8, 2024, Lois Hamby pled guilty to one count of health care fraud for her role in submitting
false claims to the DOL-Division of Energy Employees Occupational Illness Compensation (DEEOIC),
which resulted in a loss of more than $480,000 in DEEOIC benefits.
Hamby, who was a licensed practical nurse in Tennessee, had a DOL provider number that allowed her
to submit payment claims directly to DOL. While caring for an approved DEEOIC beneficiary, Hamby
prepared false nursing assessments documenting that she provided nursing services to the beneficiary
in his home when, in fact, she had not provided such care. She then used the false assessments to
support fraudulent payment claims. For these claims, DOL paid Hamby more than $480,000.
Hamby also provided nursing care to DEEOIC beneficiaries while employed by Camm Care, LLC. She
submitted false nursing assessments claiming she provided in-home nursing services while she was on
vacation, traveling out of state, or otherwise not at the patient’s home. Camm Care used these false
assessments to request and receive payment from DOL.
This is a joint investigation with the FBI. United States v. Lois Hamby (E.D. Tennessee)
Florida Man Pled Guilty to Conspiracy in Connection with Occupational Safety and Health
Administration Outreach Training Program
On November 1, 2024, Rogelio Vargas pled guilty to conspiracy for making false statements to the
DOL’s Occupational Safety and Health Administration (OSHA).
Vargas was certified by OSHA to provide a 30-Hour Outreach Training Program (OTP) course that was
developed with the intent to assist employers in training and introducing employees to the basic
practices of identifying, reducing, eliminating, and reporting work hazards. Generally, after completing
the OSHA 30-Hour OTP, workers receive OSHA 30-Hour cards, which allow them to work on job sites
that require OSHA certification. As an OSHA training instructor, Vargas was required by OSHA to sign a
Statement of Compliance form, which required him to certify that he would ensure the requirements of
the OSHA OTP regulations and procedures were acknowledged and followed.
From March 2019 through January 2024, Vargas submitted and caused the submission of hundreds of
Statement of Compliance forms, which contained false information regarding the attendance of
individuals at his OSHA 30-Hour OTP, in exchange for fees. As a result, OSHA issued certification cards
to more than 400 individuals who had not completed the required training.
United States v. Rogelio Vargas (S.D. Florida)
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
4
OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
Georgia Woman Sentenced to 144 Months in Prison for $30 Million Pandemic-Related
Unemployment Insurance Fraud Scheme and Firearms Charge
On October 24, 2024, Tyshion Hicks was sentenced to 144 months in prison for her role in a scheme to
defraud the Georgia Department of Labor (GA DOL) of tens of millions of dollars in pandemic-related
unemployment insurance (UI) benefits and for illegal possession of a machine gun.
From March 2020 through November 2022, Hicks and her co-conspirators caused more than 5,000
fraudulent UI claims to be filed with GA DOL, resulting in the disbursement of at least $30 million in
stolen benefits. To execute the scheme, she and her co-conspirators created fictitious employers and
lists of purported employees by using the personal identifiable information (PII) of thousands of identity
theft victims. They then used the stolen PII and fictitious companies to file fraudulent UI claims on the
GA DOL website. The co-conspirators obtained the PII from a variety of sources, including by paying an
employee of a Georgia-based health care and hospital network to steal patients’ PII from hospital
databases and by purchasing PII from online sources. In addition, Hicks paid a U.S. Postal Service
(USPS) carrier to unlawfully divert mail containing debit cards loaded with more than $512,000 in UI
fraud proceeds to her.
This is a joint investigation with the United States Secret Service (USSS), HSI, the U.S. Department of
Homeland Security (DHS)-OIG, the IRS-CI, the United States Postal Inspection Service (USPIS), and
the USPS-OIG. United States v. Tyshion Hicks (M.D. Georgia)
Detroit Residents Pled Guilty in CARES Act Fraud Scheme
On November 25, 2024, Deangelo Jackson-Portwood, Anton Greenwood, Adartha Tillman, Taurean
Davis, and Christopher Lindsay pled guilty to conspiracy to commit wire fraud for their roles in a
Coronavirus Aid, Relief, and Economic Security (CARES) Act fraud scheme. Jackson-Portwood also
pled guilty to aggravated identity theft.
Between February 2020 and May 2021, Jackson-Portwood and his co-conspirators obtained the PII of
identity theft victims, without their knowledge or consent. They then used the PII to file fraudulent claims
in various states for Pandemic Unemployment Assistance (PUA) benefits, Paycheck Protection Program
(PPP) loans, and EIDL funds. In other instances, the co-conspirators used their own identities to submit
fraudulent PPP and EIDL applications in the names of businesses that were fictitious or dormant. The
PUA benefits were often deposited onto debit cards that were sent to addresses controlled by the co-
conspirators.
As a result, Jackson-Portwood and his co-conspirators obtained more than $6 million in fraudulently
obtained PUA benefits, PPP loans, and EIDL funds.
This is a joint investigation with the FBI and the SBA-OIG. United States v. Deangelo Jackson-Portwood
et al. (E.D. Michigan)
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
5
OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
Michigan Fraudsters Sentenced for Conspiracy to Steal Pandemic Unemployment Insurance
Benefits
On December 3, 2024, Daniel Holt was sentenced to 24 months in prison for his involvement in a
pandemic-related UI fraud scheme. In October 2024, co-conspirators Jaylin Qualls, Daveontae White,
and Cheikh Sene were sentenced to 12 months, 24 months, and 36 months in prison, respectively. All
four defendants were ordered to pay restitution, jointly and severally, of more than $4.8 million.
Between approximately April 2020 and August 2021, Holt, Qualls, White, Sene, and their co-
conspirators filed nearly 700 fraudulent UI claims in more than nine states—primarily Michigan,
California, and Arizona. They used the stolen PII of identity theft victims to file the UI claims. As a result,
the co-conspirators fraudulently obtained more than $4.8 million in UI benefits that were loaded onto
pre-paid debit cards and mailed to addresses controlled by the defendants. To access the stolen funds,
the co-conspirators made cash withdrawals at ATMs in Michigan and California.
This is a joint investigation with the FBI. United States v. Marcellus Dunham et al. (E.D. Michigan)
Two Miami Men Pled Guilty to Conspiracy to Fraudulently Obtain More Than $4.4 Million in
Pandemic-Related Unemployment Insurance Benefits
On November 19, 2024, and December 9, 2024, Kenneth Dikari Stevens Jr. and Giovanni Kymani Paul
Matthews pled guilty, respectively, to conspiracy to commit bank fraud, wire fraud, and mail fraud for
their roles in a scheme to defraud the California Employment Development Department (California EDD)
of pandemic-related UI benefits.
Between approximately August 2020 and January 2022, Stevens, Matthews, and their co-conspirators
used the PII of identity theft victims to submit fraudulent UI applications to the California EDD. To
successfully file a claim with California EDD, applicants had to pass an identity verification process,
which required them to upload a driver’s license, among other steps. The photo of Stevens’ face was on
262 falsified driver’s licenses used to obtain the stolen benefits. Of the 262 claims, the California EDD
approved 220 and disbursed more than $4.4 million in UI benefits.
This is a joint investigation with the DHS-OIG, the USPIS, and the FBI as part of the Southern District of
Florida Miami COVID-19 Strike Force. United States v. Kenneth Dikari Stevens, Jr., United States v.
Giovanni Kymani Paul Matthews (S.D. Florida)
Florida Woman Pled Guilty to Role in $3.2 Million Pandemic-Related Unemployment Insurance
Fraud Conspiracy
On November 13, 2024, Tiia Woods pled guilty to conspiracy to commit wire fraud and aggravated
identity theft for her role in a scheme to defraud the Maryland Department of Labor (MD DOL) that
resulted in more than $3.2 million in actual losses to the UI program.
From June 2020 through approximately May 2021, Woods and her co-conspirators submitted to MD
DOL fraudulent UI applications that contained the addresses, employment status, work history,
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
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OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
occupation, and benefit eligibility of unsuspecting identity theft victims. Using email and other electronic
communications, Woods fraudulently applied for UI benefits, modified UI claims within the MD DOL
online system, and checked the status of the claims. Once MD DOL disbursed the UI benefits via pre-
paid debit cards, she used various financial transactions, including ATM withdrawals and point-of-sale
transactions, to obtain the stolen funds.
In total, Woods and her co-conspirators submitted at least 150 fraudulent UI claim applications, which
resulted in a loss of more than $3.2 million.
This is a joint investigation with the FBI. United States v. Tiia Woods et al. (D. Maryland)
Former Arizona Department of Economic Security Program Services Evaluator Pled Guilty to
Bribery Charges
On November 6, 2024, Brandilyn Lorenzen, a former program services evaluator for the Arizona
Department of Economic Security (DES), pled guilty to bribery for her role in a pandemic-related UI
fraud scheme.
Between May 2020 and April 2022, Lorenzen accepted bribe payments in exchange for approving
pandemic-related UI claims that were not properly adjudicated and were sent to recipients not entitled to
such benefits. In addition to accepting bribes to process claims, she also embezzled and misapplied
DES funds for her financial benefit and the benefit of others.
In total, Lorenzen embezzled or misapplied more than $2.4 million in DES UI claims that were not
properly or legally processed.
This is a joint investigation with the Arizona DES-OIG and the DHS-OIG. United States v. Brandilyn
Lorenzen (D. Arizona)
Maryland Defendant Sentenced to More Than 8 Years in Prison for Scheme to Fraudulently
Obtain $1.9 Million in Unemployment Insurance Benefits
On October 1, 2024, Jonathan Henry was sentenced to 97 months in prison and ordered to pay
restitution of almost $1.9 million for his role in a scheme to fraudulently obtain pandemic-related UI
benefits.
From March 2020 through approximately June 2021, Henry and two other convicted co-conspirators
were inmates at the Federal Correctional Institution, Fort Dix in New Jersey. He and his co-conspirators
submitted fraudulent online applications for UI benefits to Maryland and other states. They also used the
PII of identity theft victims in many applications. Based on the information provided in the fraudulent
applications, the MD DOL issued pre-paid debit cards in the names of the applicants and mailed them to
addresses that the conspirators controlled. Henry’s co-conspirators then used the pre-paid debit cards
to make cash withdrawals at ATMs as well as retail purchases.
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
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OIG Investigations Newsletter
Volume 54, October 1, 2024–December 31, 2024
Henry used the PII of identity theft victims to submit approximately 191 fraudulent claims, primarily in
Maryland, but also in Washington, D.C., Virginia, and North Carolina. Of the fraudulent claims
submitted, 152 claims were paid, resulting in an actual loss of approximately $1.9 million to the UI
program.
This is a joint investigation with the USPIS. United States v. Jonathan Henry et al. (D. Maryland)
Former California Employment Development Department Employee Pled Guilty in
Unemployment Insurance Fraud Scheme
On November 5, 2024, Regina Brice, a former program representative for the California EDD, pled guilty
to mail fraud charges for her role in an UI fraud scheme.
From July 2020 to May 2021, Brice used her insider access at the California EDD to manipulate and file
fraudulent UI claims on behalf of her co-conspirators. As a result, she caused a financial institution to
mail California EDD debit cards loaded with UI benefits to her co-conspirators, who then withdrew the
stolen proceeds. In furtherance of the scheme, Brice instructed her co-conspirators as to how they could
slowly withdraw the proceeds, so it would not trigger a flag in the UI system or otherwise lock the
account. She then charged her co-conspirators thousands of dollars to assist in filing the false UI
applications.
Through their scheme, Brice and her co-conspirators caused a loss of more than $800,000.
This is a joint investigation with the California EDD, the DHS-OIG, the USPIS, and the California
Department of Corrections and Rehabilitation. United States v. Regina Brice (S.D. California)
Wisconsin Fraudster Sentenced in Unemployment Insurance Fraud Scheme
On November 12, 2024, Marcus Malbro was sentenced to 33 months in prison and ordered to pay more
than $594,000 in restitution for his involvement in a conspiracy to defraud pandemic-related UI
programs in multiple states.
Malbro was a member of the “Wild 100s,” a street gang based in Milwaukee, Wisconsin. The gang
members regularly engaged in various criminal activities, including: violent crime; illegal firearms
possession; drug distribution; conspiracy; and fraud.
Between approximately August 2020 and February 2022, Malbro and other co-conspirators paid a fee to
use the PII of third parties, as well as the PII of identity theft victims, to file fraudulent UI claims in
various states. As a result, several states provided debit cards loaded with fraudulently obtained UI
funds to the defendants. They then made cash withdrawals from ATMs to purchase, among other
things, firearms, controlled substances, jewelry, clothing, vacations, and to solicit murder for hire.
This is a joint investigation with the FBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
United States v. Ronnell Bowman et al. (E.D. Wisconsin)
Report allegations of fraud, waste, and abuse concerning DOL programs and operations to the
OIG hotline via 800-347-3756 or www.oig.dol.gov.
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