Central District of California

LOS ANGELES – A former sergeant with the San Diego State University Police Department was sentenced today to 46 months in federal prison for possessing more than 600 images that contained sexually explicit videos and images of child sexual abuse material (CSAM).

Paul Aurelio McClain, 47, of Menifee, was sentenced by United States District Judge Sherilyn Peace Garnett, who also ordered McClain to be placed on supervised release for 20 years following his release from federal prison, and ordered him to pay a total of $22,100 in special assessments, including a $17,000 special assessment pursuant to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.

McClain pleaded guilty on March 18 to one count of possession of child pornography. He has been in federal custody since March 2025.

According to his plea agreement, in July and August of 2024, law enforcement conducting an undercover operation on a peer-to-peer network determined that an Internet Protocol (IP) address linked to McClain’s home in Riverside County had been used to possess a sexually explicit video of a girl who appeared to be approximately 6 to 8 years of age.

In March 2025, federal agents executed search warrants at McClain’s home and seized multiple digital devices, including a hard drive that contained videos of girls who appeared to be approximately 8 to 10 years old.

Law enforcement found other CSAM files during this investigation, totaling more than 600 images.

McClain admitted in his plea agreement that he knowingly possessed CSAM that he downloaded from the internet onto his digital devices, that he knew the depictions involved the use of minors engaged in sexually explicit conduct, and that the CSAM depicted real children who were less than 18 years old.

He further admitted to knowingly possessing CSAM that he downloaded from the internet depicted prepubescent minors and minors who had not yet reached the age of 12 years old.

“Possession and trade of child pornography is abhorrent in and of itself, but it is especially disturbing and unacceptable considering [McClain’s] role in the community as a member of law enforcement and a university police department,” prosecutors argued in a sentencing memorandum.

Homeland Security Investigations investigated this matter with assistance from the West Covina Police Department, the San Bernardino Police Department, the Riverside County Child Exploitation Team, and the San Diego State University Police Department.

Assistant United States Attorneys Cory L. Burleson of the Public Corruption and Civil Rights Section and Sonah Lee of the Major Crimes Section prosecuted this case.

LOS ANGELES – As part of the national health care fraud takedown, federal law enforcement in the greater Los Angeles metropolitan area have arrested five defendants, including a Whittier woman who participated in a scheme that submitted nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs, and a San Fernando Valley man who is charged with running hospice care companies that fraudulently billed Medicare $27 million, the Justice Department announced today.

In total, federal prosecutors in the Central District of California have brought criminal charges against 10 defendants who’ve allegedly engaged in fraud against government-funded health programs or abused their positions as doctors to illegally prescribe controlled substances. 

The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving more than $6.5 billion in false claims and significant patient harm, including death. 

Today’s takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. 

In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. 

The takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of more than $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.   

Today’s coordinated enforcement action involves a whole-of-government approach, including: 

• Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
• 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
• 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.

“This year’s National Health Care Fraud Takedown represents the greatest whole-of-government effort to combat health care fraud in our Nation’s history,” said Acting Attorney General Todd Blanche. “Under the decisive leadership of President Donald Trump, Vice President JD Vance, the White House Task Force to Eliminate Fraud, and our law enforcement partners, this administration has ushered in a new era of enforcement that will safeguard taxpayer dollars.”

“Public health programs are intended to support the elderly, the ill, the needy, and other vulnerable members of our communities,” said First Assistant United States Attorney Bill Essayli. “It is not there to enrich fraudsters. Today’s announcement highlights our determination to hold anyone who defrauds our nation’s health system criminally accountable. We will find you. We will arrest you. And we will seek long prison sentences.”

“We are aggressively scaling our offensive against anyone using health care as a front to steal from the American people,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As today’s cases and arrests show, there is no case too big, no scheme too complex, and no hiding place too remote for our relentless fraud-fighting team. Our message is simple: if you put profit over patients, you should expect to be put in prison.”

“Health care fraud steals from taxpayers, exploits vulnerable patients, and puts lives at risk,” said U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. “Today’s historic enforcement action sends a clear message: if you use our health care system to enrich yourself at the expense of patients or the American people, we will find you, we will prosecute you, and we will hold you accountable. HHS will continue working with our law enforcement partners to protect patients, safeguard taxpayer dollars, and restore integrity to our health care system.”

“The coordination in the Health Care Fraud Takedown reinforces the Trump Administration’s efforts to end the crimes of bad actors who have ripped off U.S. taxpayers,” said Department of Homeland Security Secretary Markwayne Mullin. “This is a whole of government effort, to hold those who defraud our nation accountable. Our message is clear: If you steal from American taxpayers, you will face the consequences.”

“This results of this nationwide healthcare takedown are historic,” said FBI Director Kash Patel. “Under the leadership of President Trump, Vice President Vance, and the White House Task Force to Eliminate Fraud, this FBI worked alongside our DOJ partners to arrest and charge over 450 people, including almost 100 medical professionals, for over $6 billion in alleged healthcare fraud schemes - showing the enormous amount of work done by our interagency law enforcement team over the last month and beyond. While today’s announcement is one of the largest on record–every arrest is a continued message to criminal actors who rob American taxpayers that you will not get away with your crimes.” 

“Taking advantage of grieving families at the moment they are mourning a loss and siphoning hundreds of millions of dollars from programs meant to provide real medical care, are harms that go far beyond fraud,” said Patrick Grandy, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “These actions inflict deep emotional pain and drain resources that taxpayers and vulnerable patients rely on. The FBI, along with our partners, remain committed to protecting families during their hardest moments and defending the integrity of our health care system from those who seek to exploit it.” 

The following individuals have been charged in the Central District of California:

          United States v. Mareik

Christina Mareik, 61, a.k.a. “Christina Marie Sanchez Hernandez,” of Whittier, was arrested on June 17 on a federal criminal complaint charging her with health care fraud. She made her initial appearance on June 17 in U.S. District Court in Los Angeles. She is free on $100,000 bond and her arraignment is scheduled for July 23.

Mareik allegedly participated in a scheme in which nearly $270 million in fraudulent claims were submitted over an 11-month span to Medi-Cal for expensive prescription drugs containing generic ingredients that were not medically necessary and, in many instances, not provided to the purported recipients.

She worked for Paul Richard Randall, 67, of Orange, a patient marketer for Monte VP LLC, a Montclair-based company that did business as Monte Vista Pharmacy. 

Randall, along with Monte Vista Pharmacy’s owner, Kyrollos Mekail, 38, of Moreno Valley, and Patricia Anderson, 59, of West Hills, took advantage of Medi-Cal’s suspension of its requirement that health care providers obtain prior authorization before providing certain health care services or medications as a condition of reimbursement. The suspension of the prior authorization requirements was part of an ongoing transition of Medi-Cal’s prescription drug program to a new payment system. 

According to an affidavit filed with the complaint, Mareik “played a key role in this sprawling fraud scheme by creating fraudulent prescriptions for Medi-Cal beneficiaries,” directing Anderson to sign the fraudulent prescriptions understanding that Anderson had not seen the patients or otherwise determined that the medications were medically necessary, and arranging for the fraudulent prescriptions to be submitted to Monte Vista to submit claims to Medi-Cal.

From May 2022 to April 2023, Mareik facilitated the signing of the bogus prescriptions that were billed to Medi-Cal for nearly $270 million and in turn for which Medi-Cal paid more than $178 million for 19 expensive, non-contracted drugs containing low-cost, generic ingredients that were not medically necessary or were not provided.

Mareik sent thousands of fraudulent prescriptions to Anderson and caused the submission of fraudulent prescriptions under her own name.

Numerous patients complained about receiving medications from Monte Vista for which they had no use and no knowledge as to why they were receiving the medications. Mareik handled the patient complaints so patients would not involve law enforcement and so that the fraud scheme could continue.

After an audit of Monte Vista by the California Department of Health Care Services, Mareik sent Mekail hundreds of fraudulent progress notes for Medi-Cal beneficiaries to help cover up the scheme. Mareik received hundreds of thousands of dollars in fraudulent Medi-Cal proceeds for facilitating the scheme.

If convicted, Mareik would face a statutory maximum sentence of 10 years in federal prison.

Randall pleaded guilty on April 7 to one count of wire fraud committed while on release and faces a statutory maximum sentence of 30 years in federal prison at his August 3 sentencing hearing. 

Federal law enforcement has seized multiple luxury cards and rare baseball cards in connection with the scheme and are in forfeiture proceedings concerning homes Randall purchased with illicitly gained funds.

The FBI, HHS-OIG, and the California Department of Justice are investigating this matter. 

Assistant United States Attorney Roger Hsieh of the Major Frauds Section and Trial Attorney Siobhan M. Namazi of the U.S. Department of Justice, Criminal Division, Fraud Section are prosecuting this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this case.   

          United States v. Shachar, et al.

Oren David Shachar, 59, of Van Nuys, and Abraham Shin, 66, of Corona, were arrested on June 18, made their initial appearances that day, and were arraigned in U.S. District Court in Los Angeles.

Both defendants, along with Jeannie Choi, 57, of Torrance, are charged in a 16-count indictment alleging that they conspired to defraud Medicare out of approximately $27 million. Choi was arrested Monday and is expected to make her initial appearance today in U.S. District Court in Los Angeles.

The charges in the indictment are conspiracy to commit health care fraud, health care fraud, aggravated identity theft, monetary transaction in criminally derived property over $10,000, and violations of the Anti-Kickback Statute.

Shachar and Shin are scheduled to go to trial on August 11. A federal magistrate judge ordered both defendants released on bond.

According to the indictment, from February 2021 to March 2026, Shachar, who conspired with marketers Choi and Shin in 2025, submitted false claims for hospice services that were medically unnecessary because the beneficiaries were not terminally ill or were not provided because the beneficiaries were already deceased. Shachar’s Medicare claims were also non-payable because Shachar paid illegal kickbacks to marketers to procure hospice beneficiaries and paid beneficiaries to remain enrolled in his hospices. 

As part of this scheme, Shachar owned and operated at least four hospice care companies that he used to submit the fraudulent claims, including the Valley Glen-based Gentle Touch Hospice Care Inc., the Montclair-based Oxford Hospice Care Inc., the Encino-based Art of Hospice Inc., and the Glendale-based Holly Trinity Hospice.

In 2025, Shin and Choi sold living and deceased patients’ personal identifying information to Shachar to assist him in perpetuating this fraud. 

If convicted of all charges, the defendants would face decades in federal prison.

The FBI and HHS-OIG are investigating this matter. 

Trial Attorney Michael Bacharach of the U.S. Department of Justice, Criminal Division, Fraud Section is prosecuting this case.

          United States v. Lopez

Brenda Lee Lopez, 63, of Norwalk, was arrested this morning. She is charged in a federal grand jury indictment with seven counts of health care fraud and six counts of aggravated identity theft in connection with a $9 million laboratory testing scheme to defraud Medicare.

Lopez is expected to make her initial appearance and be arraigned today in U.S. District Court in Los Angeles.

According to the indictment, Lopez, a medical office manager, prepared false orders for urinary tract infection tests, respiratory pathogen panels, and oral toxicology screens for Medicare beneficiaries using the names and forged signatures of four medical providers. 

The beneficiaries did not provide specimens for the tests, and some were deceased at the time of testing. Lopez provided the orders to a laboratory, which billed Medicare for the fraudulent tests. At one point, Lopez attempted to pay one of the providers when the provider learned that his name was used without authorization to refer hundreds of tests to the laboratory.

In total, the laboratory billed Medicare approximately $9,087,013 and was paid approximately $2,117,994 for testing referred by Lopez based on the fraudulent orders.

In exchange for the referrals, the laboratory paid Lopez and her family members approximately $335,000, much of which Lopez spent at a casino and to pay others who assisted her in the scheme.

If convicted, Lopez would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count and a mandatory two-year consecutive federal prison sentence for each count of aggravated identity theft.

The FBI and HHS-OIG are investigating this matter.

Trial Attorney Matthew R. Belz of the U.S. Department of Justice, Criminal Division, Fraud Section is prosecuting this case.

          United States v. Galbraith

Lynn Galbraith, 59, of Anaheim, the owner of the Garden Grove-based Azure Hospice Care Inc., is charged in a single-count information with health care fraud.

From April 2021 to February 2024, Galbraith allegedly submitted approximately $2,266,694 in fraudulent claims to Medicare for hospice services. Medicare paid out approximately $2,140,606 on the fraudulent claims. 

Galbraith is expected to make her initial appearance in the coming weeks in United States District Court in Santa Ana.

If convicted, she would face a statutory maximum sentence of 10 years in federal prison.

HHS-OIG is investigating this matter.

Assistant United States Attorney Rosalind Wang of the Orange County Office is prosecuting this case.

          United States v. Khader, et al.

Three physicians – Wisam Khader, 36, of Irvine, Patrick Murphy, 40, of Irvine, and Justin Evans, 37, of Lakewood, Colorado – are charged in connection with a scheme in which they used their prescribing authority to prescribe controlled substances to one another outside the course of professional practice and without a legitimate medical purpose.

As alleged in the single-count indictment, the three defendants wrote almost 90 prescriptions to one another for drugs containing federally controlled substances, including amphetamine, oxycodone, buprenorphine, diazepam, morphine, and pregabalin.

They are charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances.

If convicted, the defendants would face a statutory maximum sentence of 40 years in federal prison.

The Drug Enforcement Administration is investigating this matter.

Assistant United States Attorney Rahul Hari of the Major Crimes Section is prosecuting this case.

          United States v. Dorsey

Dr. Eugene Richard Dorsey, 83, of Orange, a psychiatrist at Western Orthopaedic Surgical Associates, a.k.a. “South County Orthopaedic Associates,” is charged via information with health care fraud in connection with a scheme to defraud the United States Department of Labor, Office of Workers’ Compensation programs

According to court documents, from December 2020 to December 2025, Dorsey falsified psychiatric reports so that claimants would fraudulently qualify for federal worker’s compensation, and submitted false claims for reimbursement of medical services, resulting in overpayments of approximately $1,831,462.

Dorsey is expected to make his initial appearance in U.S. District Court in Santa Ana in the coming weeks.

If convicted, Dorsey would face a statutory maximum sentence of 10 years in federal prison.

United States Postal Service Office of the Inspector General and the Fraud Division of the California Department of Insurance, Enforcement Branch are investigating this matter.

Assistant United States Attorney Rosalind Wang of the Orange County Office is prosecuting this case.

Criminal complaints, indictments, and informations contain allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President JD Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Prior to the charges announced as part of today’s nationwide Takedown and since its inception in March 2007, the National Fraud Division’s Health Care Strike Force program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, CMS, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit. 

LOS ANGELES – A Texas woman was sentenced today to 21 months in federal prison for fraudulently obtaining more than $28,000 in federal disaster relief money by falsely claiming that she was a Pasadena resident living in a property damaged by the Eaton Fire and for fraudulently obtaining more than $54,000 in jobless benefits during the COVID-19 pandemic.

Joyce Turner, 56, of Rosharon, Texas, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered her to pay $82,555 in restitution.

Turner pleaded guilty in September 2025 to one count of fraud in connection with major disaster or emergency benefits and one count of mail fraud.

On January 7, 2025, the Eaton Fire ignited and burned through a residential area in Los Angeles County, killing 18 people and destroying more than 10,000 structures. A presidential disaster declaration was issued on January 8, making emergency federal financial assistance and benefits available to individuals and families affected by the Eaton Fire and to other wildfire victims in the Los Angeles area.

Victims who suffered losses because of the Eaton Fire, including renters who lost personal property and/or the use of their rental residences could qualify for benefits from the Federal Emergency Management Agency (FEMA). The benefits included money for home repair, personal property damage, transportation, medical expenses, and housing assistance.

On January 10, 2025, Turner submitted a fraudulent disaster benefits application to FEMA, falsely claiming she lived in Pasadena in a rental property that had been damaged by the Eaton Fire. In fact, Turner did not live in California and did not qualify for the benefits.

FEMA, relying on Turner’s false and fraudulent claim, sent her $28,195 in wildfire disaster relief money.

Turner further admitted in her plea agreement that in August 2020 she submitted a fraudulent claim for California unemployment insurance falsely claiming she had been working in California and lost work because of the COVID-19 pandemic and was entitled to unemployment insurance benefits. 

Following this false and fraudulent claim, California’s Employment Development Department (EDD) provided Turner with $54,360 in jobless benefits to which she was not entitled – providing these benefits through a debit card mailed to Turner at an address in Los Angeles.

The United States Department of Homeland Security Office of Inspector General investigated this matter.

Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.

RIVERSIDE, California – The Justice Department today announced federal criminal charges against five men – two of them from the Inland Empire – for an alleged plot to carry out an attack to kill government officials and others attending the Ultimate Fighting Championship (UFC) held at the White House last Sunday. 

Bryan Omar Roa, 24, of Calimesa, and Michael Alan Thomas, 32, of Pinon Hills, were arrested Saturday and made their initial appearances on Monday in United States District Court in Riverside.

Roa and Thomas are charged in a federal criminal complaint with conspiracy to commit murder, which carries a statutory maximum penalty of life in federal prison.

On Monday, United States Magistrate Judge David T. Bristow ordered Roa and Thomas jailed without bond. No pleas were taken. The arraignments for Roa and Thomas are scheduled for July 7 and July 21, respectively, in U.S. District Court in Riverside.

The FBI launched an investigation into the plot and identified a group of conspirators who procured weapons and made plans to carry out the attack. The FBI made arrests over the weekend in Ohio, Missouri, Nebraska, and California. The investigation remains ongoing. 

“The FBI, our law enforcement partners and our U.S. Attorneys did what they do every day to make America Safe through quick response and vigilance in investigating, disrupting, and dismantling this alleged plan before it could be carried out,” said Acting Attorney General Todd Blanche. “We will take immediate and aggressive action to identify and prosecute those who incite and plan acts of violence.” 

“Thanks to the swift work of federal agents and prosecutors, a potential mass casualty attack was prevented,” said First Assistant United States Attorney Bill Essayli. “There is no place in our country for political violence. Those who plot violence against the President and Congressional leaders face serious consequences, including possible life sentences.” 

“On June 10, FBI and our law enforcement partners became aware of a potential threat to the UFC America 250 event in Washington, D.C. involving individuals outside of the National Capital Region — and thanks to the rapid action of this FBI, our partners, and the Department of Justice in a multi-state operation, multiple individuals are now in custody and allegedly planned attacks were stopped cold,” said FBI Director Kash Patel. “While the result represented the best of investigative work, it was also nothing out of the ordinary for this law enforcement team — we are built to detect, respond to, and bring to justice those who threaten the lives of American citizens — particularly during large gatherings like the historic UFC 250 fight. That’s exactly what we did here. I want to thank our great agents and partners, this work remains ongoing and we will continue to update the public as permitted. We continue to encourage any American to report anything suspicious at 1-800-CALL-FBI or tips.fbi.gov.”

According to court documents, the defendants conspired to plan and execute a mass-casualty event targeting U.S. officials in attendance at the June 14 UFC Freedom 250 event hosted on the White House grounds. Proper amassed firearms, thousands of rounds of ammunition, and tactical gear at his home in Ohio, and he identified potential targets, including multiple members of the United States Congress. 

The conspirators allegedly planned to deploy drones armed with explosives in and around the UFC Freedom 250 event to force an evacuation of the event and then planned to deploy snipers to fire upon ‘high value targets’ within the fleeing crowd. Before executing the plan, Proper and other conspirators planned to rendezvous in Fredericksburg, Virginia. 

According to an affidavit filed with a criminal complaint, law enforcement executed a search warrant ofRoa’s residence and his vehicle during which they seized a rifle, handgun, tactical belt, ammunition and a rifle magazine, a two-way radio, and an infrared laser target pointer. 

A search of Roa’s phone found messages in a group with several other co-conspirators including Thomas, Proper, in which they planned an attack at the UFC event at the White House, with some users discussing using drones rigged with explosives in order to initiate the attack, with rooftop snipers killing individuals. Law enforcement also found Instagram videos Roa had posted of himself shooting guns.

Thomas participated in a group chat planning the attack at the UFC event at the White House. In a group chat, on June 7, he allegedly wrote “$1300 gets us the drones and the charges. Yes we should all pitch in and we need it asap…”

In another group chat, Thomas, under a pseudonym, allegedly described “tiers” of operators within their anti-government group, with tier 1 being operators on the ground, tier 2 being drivers and drone operators, tier 3 being logistical suppliers, and tier 4 being social media influencers. “Tier one status is not something to take lightly. … We will make sure they have…All the tier 2 support we can provide. We will try to break them out of jail if we need to.”

In the same group chats, Thomas discussed meeting with Roa in person in Southern California to conduct “marksmen training” and reflected that the group needed to train for “gorilla style warfare.”

FBI agents seized from Thomas’ residence a rifle, 30-round extended magazines for the rifle, 180 rounds of ammunition, and a pistol.

Charged in separate federal criminal complaints are Tycen C. Proper, 19, of Danville, Ohio, Daniel K. Eskridge, 32, of Kidder, Missouri, and Abraham Hermosillo Alvarez, 31, of Omaha, Nebraska. 

Eskridge is charged with conspiracy to commit murder as well as conspiracy to commit violent or disruptive conduct on White House grounds. According to the complaint, the FBI identified Eskridge while reviewing electronic communications on Proper’s cellular phone. 

The co-conspirators had electronic chats on a social media platform SimpleX. In those chats, members of the group allegedly discussed assassinating several United States Senators, Representatives and prominent business executives. Members of the group targeted some legislators based on the group’s perceived belief that the legislators accepted money from pro-Israel lobbies. 

When discussing potential targets, Eskridge indicated that the target was “big and someone a majority of the country knows.” In the discussions, power grids were also identified as potential targets. 

On May 22, 2026, Eskridge distributed a picture of tactical equipment, including a rifle, helmet, and ballistic vest.

In a separate chat group, a conversation allegedly took place in early June when Eskridge and some of the other chat group members discussed their plan to attack the UFC Freedom 250 event. 

Specifically, Thomas stated, “Pensilvania [sic] avenue.” Eskridge said the group should obtain $1,300 in United States currency and they needed “5 teams of 3 each team consisting of 1 sniper, 1 tier one operator as support/ look out, [and] one drone operator.” Eskridge said the money would provide them the funding to purchase “drones and charges,” and encouraged the group to all “pitch in.” 

On June 13, law enforcement officials executed a federal search warrant at Eskridge’s residence. Agents recovered rifles, a shot gun, pistol, and other tactical gear.

According to the charges filed in Nebraska, the FBI identified Abraham Hermosillo Alvarez as the individual using the name “Shepherd” in a Signal Group that was used to plan an attack on the UFC Freedom 250 event scheduled to be held at the Whtie House on June 14, 2026.   

The FBI assessed that Alvarez, a/k/a “Shepherd” was responsible for planning, organizing and directing the planned attack, based on conversation excerpts in June when Shepherd posted, “This is the best action I see. Position your teams in the purple dots (counter sniper and drones) Long range (circled area) (great shot) Easy out into the river.” 

The complaint further alleges Shepherd then provided direction for a safe zone and instructed the other members to take back roads or the river down to the “pick up location.” Later that same evening, Shepherd also provided locations in the area for drone launch points and sniper positions.

A criminal complaint contains merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted of conspiracy to commit murder, each defendant faces a maximum penalty of life in prison.  Conspiracy to commit violence on White House grounds carries a maximum penalty of five years in prison.

The FBI and the United States Secret Service are  investigating this matter.

Assistant United States Attorney Colin S. Scott of the National Security Division is prosecuting this case.

The Justice Department announced today charges against five men for an alleged plot to carry out an attack to kill government officials and others attending the Ultimate Fighting Championship (UFC) Freedom 250 event held at the White House last Sunday. 

The FBI launched an investigation into the plot and identified a group of conspirators who procured weapons and made plans to carry out the attack. The FBI made arrests over the weekend in Ohio, Missouri, Nebraska, and California. The investigation remains ongoing.

“The FBI, our law enforcement partners and our U.S. Attorneys did what they do every day to make America Safe through quick response and vigilance in investigating, disrupting, and dismantling this alleged plan before it could be carried out,” said Acting Attorney General Todd Blanche. “We will take immediate and aggressive action to identify and prosecute those who incite and plan acts of violence.”

“On June 10, FBI and our law enforcement partners became aware of a potential threat to the UFC America 250 event in Washington, D.C. involving individuals outside of the National Capital Region — and thanks to the rapid action of this FBI, our partners, and the Department of Justice in a multi-state operation, multiple individuals are now in custody and allegedly planned attacks were stopped cold,” said FBI Director Kash Patel. “While the result represented the best of investigative work, it was also nothing out of the ordinary for this law enforcement team — we are built to detect, respond to, and bring to justice those who threaten the lives of American citizens — particularly during large gatherings like the historic UFC 250 fight. That’s exactly what we did here. I want to thank our great agents and partners, this work remains ongoing and we will continue to update the public as permitted.”

“Protecting the President of the United States and the White House grounds is priority number one for the U.S. Secret Service,” said Director Sean M Curran of the U.S. Secret Service. “The landscape has changed, and as a result we have seen a dramatic rise in threats against our protectees. I am proud of the men and women of the Secret Service that vigorously monitor, investigate, and arrest those that plot to interfere with our protective mission. We are grateful for our extraordinary partnerships we share with DHS, DOJ, Acting Attorney General Blanche, FBI-JTTF, Park Police, and DC Police.”

According to the charges, Tycen C. Proper, 19, of Danville, Ohio; Bryan Omar Roa, 24, of Calimesa, California; Michael Alan Thomas, 32, of Pinon Hills, California; Daniel K. Eskridge, 32, of Kidder, Missouri; and Abraham Hermosillo Alvarez, 31, of Omaha, Nebraska, conspired to plan and execute a mass casualty event targeting U.S. officials in attendance at UFC Freedom 250 hosted on the White House grounds. The conspirators allegedly planned to deploy drones armed with explosives in and around the UFC Freedom 250 event in order to force an evacuation of the event and then planned to deploy snipers to fire upon “high value targets” within the fleeing crowd.

Tycen Proper

According to filed complaints in the Southern District of Ohio, the Western District of Missouri, the District of Nebraska, and the Central District of California, investigators interviewed Proper at a medical facility on June 11. During the interview, he allegedly said he had planned with others a coordinated attack against the U.S. government during the UFC event at the White House. He said members of the group who wanted to participate in the attack began communicating with each other around March. More serious members of the group, including Proper, moved their communications to an encrypted chat app. They planned to fly small drones with explosives to detonate over the north side of the UFC arena, forcing high value targets to evacuate the premises; the group would then act as snipers and shoot these individuals. Before executing the plan, Proper and other conspirators allegedly planned to rendezvous in Fredericksburg, Virginia.

Proper allegedly amassed firearms, thousands of rounds of ammunition, and tactical gear at his home in Ohio, and he identified potential targets, including multiple members of Congress. 

Bryan Roa

According to the complaint filed in the Central District of California, law enforcement executed a search warrant of Roa’s residence and vehicle where they allegedly seized a rifle, handgun, tactical belt, ammunition and a rifle magazine, a two-way radio, and an infrared laser target pointer. A search of Roa’s phone allegedly found messages in a group with Thomas, Proper, and others discussing an attack at the UFC event at the White House, with some users discussing using drones rigged with explosives to initiate the attack, with rooftop snipers killing individuals. Law enforcement also allegedly found Instagram videos Roa had posted of himself shooting guns.

Michael Thomas

According to the complaint filed in the Central District of California, Thomas allegedly participated in a group chat planning an attack at the UFC event at the White House. In a group chat, on June 7, he allegedly wrote “$1300 gets us the drones and the charges. Yes we should all pitch in and we need it asap…” 

In another group chat, Thomas, under a pseudonym, allegedly described “tiers” of operators within their anti-government group, with tier 1 being operators on the ground, tier 2 being drivers and drone operators, tier 3 being logistical suppliers, and tier 4 being social media influencers. “Tier one status is not something to take lightly. … We will make sure they have…All the tier 2 support we can provide. We will try to break them out of jail if we need to.” In the same group chats, Thomas discussed meeting with Roa in person in Southern California in order to conduct “marksmen training” and reflected that the group needed to train for “gorilla style warfare.”

In a June 13 search warrant, FBI agents allegedly seized from Thomas’ residence a rifle, 30-round extended magazines for the rifle, 180 of rounds of ammunition, and a pistol. 

Daniel Eskridge

Eskridge was charged with conspiracy to commit murder on White House grounds. According to an affidavit filed in the Western District of Missouri, the FBI identified Eskridge while reviewing electronic communications on Proper’s cell phone. The co-conspirators had electronic chats on encrypted social media platforms. In those chats, members of the group allegedly discussed assassinating several U.S. Senators, Representatives, and prominent business executives. Members of the group targeted some legislators based on the group’s perceived belief that the legislators accepted money from pro-Israel lobbies. When discussing potential targets, Eskridge indicated that the target was “big and someone a majority of the country knows.” In the discussions, power grids were also identified as potential targets. On May 22, Eskridge distributed a picture of tactical equipment, including a rifle, helmet, and ballistic vest. The photograph is below.

Also according to the affidavit, in a separate chat group, a conversation took place in early June when Eskridge and some of the other chat group members discussed their plan to attack the UFC Freedom 250 event. Specifically, Thomas stated, “Pensilvania [sic] avenue.” Eskridge said the group should obtain $1,300 in U.S. currency and they needed “5 teams of 3 each team consisting of 1 sniper, 1 tier one operator as support/ look out, [and] one drone operator.” Eskridge said the money would provide them the funding to purchase “drones and charges,” and encouraged the group to all “pitch in.” On June 13, law enforcement officials executed a federal search warrant of Eskridge’s residence. Agents recovered rifles, a shot gun, pistol, and other tactical gear. 

A photograph of the equipment from the June 13 search is below:

Abraham Alvarez

According to the charges filed in Nebraska, the FBI identified Alvarez as the individual using the name “Shepherd” in an encrypted chat app that was used to plan an attack on the UFC Freedom 250 event scheduled to be held at the White House on June 14. The FBI assessed that Alvarez, also known as “Shepherd,” was responsible for planning, organizing, and directing the planned attack, based on conversation excerpts in June when Shepherd posted, “This is the best action I see. Position your teams in the purple dots (counter sniper and drones) Long range (circled area) (great shot) Easy out into the river.” Shepherd also allegedly posted other messages including replying to another member on making drones with explosives, “As many and as deadly as we can get.”; that he was working on drones; and had one drone and was working on more.

The complaint further alleges that Shepherd provided a picture and directions for a safe zone at an old church in Nebraska. He instructed the other members to take back roads or the river down to the “pick up location.” Later that same evening, Shepherd also provided locations in the area for drone launch points and sniper positions.

If convicted of conspiracy to commit murder, each defendant faces a maximum penalty of life in prison and a $250,000 fine. Conspiracy to commit violence on White House grounds carries a maximum penalty of five years in prison.

A criminal complaint merely contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SANTA ANA, California – An Orange County man was arrested today on a federal criminal complaint charging him with defrauding a bank out of nearly $100 million by manipulating title policies to make collateral that had been pledged to the bank look more valuable than it truly was.

Mahender Makhijani, 44, of Corona del Mar, is charged with bank fraud.

He is expected to make his initial appearance this afternoon in the United States District Court in Santa Ana.

“When criminals are allowed to deceive lenders, the spillover effects can harm consumers and businesses,” said First Assistant United States Attorney Bill Essayli. “Today’s arrest highlights our office’s continued determination to combat threats to our nation’s banking system.” 

“Today’s arrest highlights the strength of IRS Criminal Investigation’s financial expertise. As alleged, Mr. Makhijani falsified title insurance records, concealed true lien positions, and used a network of shell companies to mislead a federally insured bank out of nearly $100 million,” said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office. “Our special agents followed the money through layered transfers and disguised accounts, uncovering a scheme designed to deceive at every turn. When individuals manipulate documents and abuse financial systems for personal gain, IRS CI will expose the truth and ensure they are held accountable.”

“Schemes like the one outlined in today’s complaint pose a significant risk to banks and the nation’s financial system,” said Special Agent in Charge Ryan Korner with the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “FDIC-OIG will work tirelessly alongside our law enforcement partners to identify threats and protect the system, keeping it safe for both financial institutions and consumers.”

“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) vigorously investigates, and pursues the prosecution of, those who defraud the Federal Home Loan Bank System and its members,” said James Shields, Acting Special Agent in Charge of the Western Region. “We are committed to working with the U.S. Attorney’s Office and our law enforcement partners to hold accountable criminals who seek to enrich themselves by defrauding the banking system.” 

“Today’s arrest demonstrates that those who allegedly engage in fraudulent activity that impacts the safety and soundness of financial institutions will be held accountable for their actions,” said Brian Tucker, Special Agent in Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.

According to an affidavit filed with the complaint, Makhijani controls Cantor Group V LLC, a Newport Beach-based company with a lending relationship with Bank #1. Under the terms of their agreement, Bank #1 advanced nearly $100 million to Cantor for Cantor to originate or buy loans secured by real estate. Cantor was supposed to then pledge the loans it secured, and their underlying collateral, to Bank #1, paying back the bank from the loans’ proceeds.

Their agreement’s terms required Cantor to only pledge to Bank #1 loans in which Cantor had secured the first lien in the underlying collateral, which would make Bank #1 first in line to foreclose on the underlying property should the loan’s borrower be in default. By contrast, a second or later lien is worth much less as collateral because Bank #1’s ability to foreclose on the property would be subordinated to other creditors.

As part of its due diligence to ensure Cantor had only pledged first lien-backed loans, Bank #1 required Cantor to submit title insurance policies that showed Cantor’s first lien position.

From September 2024 to April 2025, Makhijani falsified title insurance policies to make them falsely state that Cantor was in the first lien position with respect to certain real estate serving as collateral. In fact, other creditors were ahead of Cantor. To falsify the title policies, Makhijani or a subordinate edited them in Adobe and then edited or removed the metadata, such as by printing out the altered title policies before scanning them.

After falsifying the title policies, Makhijani caused his then-employee to submit the false title insurance policies to Bank #1. Makhijani also engaged in several teleconferences with Bank #1’s representatives and lied about the title issues that Bank #1 had identified. In December 2024, he caused a spreadsheet with false explanations for the title issues to be submitted to Bank #1.

In making its lending decisions to Cantor, Bank #1 relied on the false information Makhijani provided. Had it known the true value of the collateral that Cantor had pledged, Bank #1 would have considered Cantor to be in default and then demanded full and immediate repayment, which would have required Cantor to repay Bank #1 nearly $100 million.

In August 2025, Bank #1 filed a lawsuit in Los Angeles Superior Court in connection with the alleged fraud.

A complaint is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Makhijani would face a statutory maximum sentence of 30 years in federal prison.

FDIC-OIG; IRS Criminal Investigation; the FBI; FHFA-OIG; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau are continuing to investigate this matter.

Assistant United States Attorneys Kevin Y. Fu and Gregory W. Staples of the Orange County Office are prosecuting this case. Assistant United States Attorney Tara B. Vavere of the Asset Forfeiture and Recovery Section is handling the asset forfeiture portion of this case.

SANTA ANA, California – A Laguna Niguel man was sentenced today to 108 months in federal prison for using a semi-automatic rifle to repeatedly shoot at an Orange County Sheriff’s Department (OCSD) helicopter from a second-story window at his home.

Justin Derek Jennings, 41, was sentenced by United States District Judge John W. Holcomb.

Jennings pleaded guilty in August 2025 to one count of attempting to damage, destroy, disable, or wreck an aircraft in the special aircraft jurisdiction of the United States.

On March 9, 2024, Jennings – from a second-story window of his residence – used a semi-automatic rifle to shoot at a helicopter operated by OCSD. 

Court documents previously filed in this case stated that Jennings and his family were celebrating his birthday party on that day. Jennings had been drinking and later removed a rifle from his gun safe and fired an entire magazine worth of ammunition inside the home. Jennings’ family fled and reported the incident to law enforcement.

The O.C. Sheriff’s Department responded with several deputies and a police helicopter that flew in circles around the area. Jennings then went to the home’s second story and began shooting a rifle upwards in the sky, firing only when the helicopter was visible to him. The shooting continued intermittently for at least 20 minutes. After speaking with an Orange County sheriff’s deputy, Jennings exited the residence and surrendered.

During a search of Jennings’ residence, law enforcement seized numerous firearms and rifles along with multiple rounds of ammunition. Bullet casings were scattered throughout the floor and law enforcement also seized two magazines and a box of ammunition that was on a couch immediately beneath the window from where Jennings fired the weapon.

“This is a serious offense involving violent and disturbing conduct that endangered many lives,” prosecutors argued in a sentencing memorandum. “[Jennings] repeatedly shot at an OCSD helicopter from a second-story window with the goal of shooting it down.”

The Orange County District Attorney’s Office charged Jennings in connection with this incident but dismissed the case so the federal case against him could proceed.

The FBI and the Orange County Sheriff’s Department investigated this matter.

Assistant United States Attorney Caitlin J. Campbell of the Orange County Office prosecuted this case.

LOS ANGELES – A Santa Monica man pleaded guilty to a federal criminal charge for doxxing – publishing private or identifying information about an individual on the internet with malicious intent – a lawyer at United States Immigration and Customs Enforcement (ICE).

Gregory John Curcio, 68, pleaded guilty to one count of violating the protection of individuals performing certain official duties. 

Federal law prohibits making certain personal information about covered persons – including federal employees – public. The restricted personal information includes a victim’s Social Security number, home address, home phone number, mobile phone number, and personal email address.

In February 2025, Curcio created a Facebook post in which he identified the victim – an ICE attorney – as an ICE agent, posted her home address, and directed others to “swat” her at that address. Curcio also posted the victim’s home address on another social media account with instructions to swat her.

“Swatting” is a term used to describe a form of harassment that often involves placing a false emergency call to law enforcement or emergency responders, often reporting a false ongoing crisis or crime at a specific location to prompt a significant law enforcement response.

According to court documents previously filed in this case, the victim told authorities that Curcio is a former resident at her mother’s apartment building in Santa Monica.  The victim said she never met Curcio, but that he had harassed and threatened her mother for years and engaged in a campaign to harass the victim and her family beginning from at least January 2024.

United States District Judge Michelle Williams Court scheduled an August 21 sentencing hearing, at which time Curcio will face a statutory maximum sentence of five years in federal prison.

U.S. Immigration and Customs Enforcement Office of Professional Responsibility is investigating this matter.

Assistant United States Attorney Lauren Restrepo of the National Security Division is prosecuting this case.

LOS ANGELES – Two South Gate men pleaded guilty today to committing more than a dozen armed robberies, stealing gambling winnings from individuals leaving local casinos, stealing at least $274,600 in cash, casino chips, and other property.

Dereck Nathan Lopez, 22, and Juan Gabriel Gonzalez, 23, pleaded guilty to one count of interference with commerce by robbery (Hobbs Act).

Both defendants have been in federal custody since May 2025.

According to their plea agreements, Lopez and Gonzalez entered local casinos under false names to hunt gamblers appearing to win or cash-in many chips. Lopez and Gonzalez then followed the victims’ vehicles from the casino, ambushed them on the highway, brandished firearms, smashed the vehicle’s windows, demanded money or chips, and fled. 

Lopez and Gonzalez admitted to 15 robberies and attempted robberies committed in Los Angeles County from May 2023 to December 2023, including three victims leaving a casino on a single night in December 2023.

For example, on October 26, 2023, the defendants, both using fake licenses, followed a victim around a casino in Gardena. Lopez and Gonzalez monitored the victim as he cashed out $11,000 in casino chips and left the Hustler Casino. As the victim drove home on the 110 freeway on ramp from Redondo Beach Boulevard, co-participants in the scheme stopped the victim’s vehicle. The co-participants approached both doors of the victim’s vehicle, pointed guns at him, and demanded money and for the victim to open the trunk. Co-participants stole $1,050 in cash and golf clubs worth $6,000 from the victim.

Lopez further admitted to illegally possessing firearms and ammunition at his home in December 2023. Lopez is not legally permitted to possess a firearm or ammunition because his criminal history includes a conviction in San Bernardino County Superior Court for grand theft in November 2023.

United States District Judge George H. Wu scheduled August 13 sentencing hearings for the defendants, who each will face a statutory maximum sentence of 20 years in federal prison.

Lopez and Gonzalez have agreed to serve 14 years in federal prison.

The FBI, the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the California Highway Patrol, the California Department of Justice Bureau of Gambling Control, and the Montebello Police Department are investigating this matter.

Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Major Crimes Section are prosecuting this case.

LOS ANGELES – Four members of Mara Salvatrucha, a violent street gang and terrorist organization known as MS-13, were found guilty by a jury today of brutally murdering three victims in the Angeles National Forest, including one victim who had his heart carved out of his chest and his body dismembered then tossed down a canyon.

The following defendants, all of whom remain in federal custody, were found guilty of racketeering conspiracy and violent crimes in aid of racketeering – murder:

• Angel Amadeo Guzman, 31, of Panorama City;
• Fernando Garcia Parada, 28, of Panorama City;
• Edgard Velasquez, 43, of Reseda; and
• Jose Jonathan Castillo, 34, of Koreatown.

According to evidence presented at a 17-day trial, MS-13 Los Angeles is a violent criminal street gang that operates through subsets known as “cliques,” including the Fulton clique in the San Fernando Valley and the Francis clique around MacArthur Park. The gang derives income from drug trafficking, extorting legal and illegal businesses, committing robberies, and via other illicit means.

The gang implemented rules that require its members to use murder and extreme violence to rise within its ranks. 

From March 2017 to June 2017, the defendants committed three murders on behalf of MS-13. In March 2017, one victim was accused of painting the graffiti of a rival gang. Velasquez authorized the victim’s murder. Guzman, Garcia, and others later abducted the victim, strangled him, and drove him to the Angeles National Forest, where they and several co-conspirators attacked the victim with machetes. Later, they dismembered the victim, carving out his heart and throwing his body parts into a canyon.

In April 2017, Guzman and co-conspirators killed another victim, who had fled El Salvador without MS-13’s permission when it had been investigating the victim for cooperating with law enforcement. One conspirator used the Facebook account of a teenage girl to catfish the victim, who was lured to the Angeles National Forest and then killed. 

Finally, in June 2017, Castillo, Garcia, and co-conspirators murdered another victim, an MS-13 associate who was accused of overstating his position in the gang. The victim was taken to the Angeles National Forest, where he was stabbed and hacked to death.

United States District Judge Stanley Blumenfeld, Jr., scheduled October 20 sentencing hearings for these defendants, all of whom will face one or more mandatory sentences of life in federal prison.

Federal prosecutors have secured more than 30 convictions in this case. 

In November 2025, five MS-13 members were convicted of committing six murders to advance their standing in the gang. Their sentencing hearings are scheduled to occur in the coming months. 

The FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, and Los Angeles County District Attorney’s Office investigated this matter. 

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. The HSTF utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

Special Assistant United States Attorney Eric W. Siddall of the Los Angeles County District Attorney’s Office, and Assistant United States Attorneys Jason C. Pang of the Transnational Organized Crime Section, and William Larsen and Suria M. Bahadue of the Criminal Appeals Section are prosecuting this case.

A dual U.S.-Iranian national and CEO of an Iran-based technology company was arrested today on a federal criminal complaint charging him with violating U.S. sanctions against Iran by acquiring sophisticated U.S.-origin networking, security, and encryption equipment for Iranian customers — including the Iranian regime’s nuclear and military establishments.

“As alleged, Ghomi enriched himself by supplying U.S. technology to the Atomic Energy Organization of Iran and other sanctioned entities responsible for the Iran’s nuclear program,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division will hold accountable those who violate our laws to further Iran’s nuclear ambitions.”

“Ghomi is accused of aiding our declared enemies by selling U.S.-origin computer networking parts to Iran and earning millions of dollars in violation of U.S. sanction laws,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Our nation’s laws prohibiting doing business with one of the world’s largest state sponsors of terrorism must be enforced and obeyed. We will hold him accountable by seeking an appropriate prison sentence and by seizing his assets, including his $35 million Newport Beach mansion.”

“Today’s arrest reflects our commitment to disrupt the illegal flow of American technology to foreign nations, especially our adversaries,” said Acting Special Agent in Charge Darren Lian of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office. “As alleged, Mr. Ghomi spent years exploiting United States financial systems and procurement channels to move controlled equipment to Iran while hiding his activities behind front companies and falsified documentation. We will continue to work with our partners to safeguard national security by utilizing our financial investigative expertise.”

Jamshid Ghomi, 63, of Newport Coast, California, is charged with conspiracy to violate the International Emergency Economic Powers Act (IEEPA).

Ghomi is expected to make his initial appearance this afternoon in U.S. District Court in Santa Ana, California.

The IEEPA and the Iranian Transactions and Sanctions Regulations (ITSR) impose controls and restrictions on transactions involving Iran based on the threats posed by Iran to the national security of the United States, including its pursuit of nuclear weapons and sponsorship of terrorism. The IEEPA and ITSR prohibit the export, re-export, sale, or supply, directly or indirectly, from the United States or by a United States person, wherever located, of any goods, technology, or services to Iran or the Government of Iran without first obtaining authorization from OFAC. 

According to the affidavit filed with the complaint, Ghomi is the founder, owner, and CEO of Faraz Pardaz Rayaneh Co. Ltd. (FPR), a Tehran-based computer networking company. For more than a decade, Ghomi has used FPR to procure U.S.-origin networking equipment for customers in Iran in violation of U.S. sanctions. Ghomi or FPR never obtained a license from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) authorizing those transactions.

Ghomi identified, negotiated, purchased, and arranged the shipment of large quantities of controlled U.S. technology for his own company. From 2011 to 2015, he used his own eBay and PayPal accounts to make more than 400 purchases of computer-networking equipment, directing the goods to intermediaries in the United Arab Emirates (UAE). In 2023, Ghomi personally negotiated the purchase of U.S.-origin networking equipment directly from suppliers in Minnesota and Nebraska, routing it through a UAE front company and on to FPR in Iran. 

None of these items could be lawfully exported to Iran without a license from OFAC.

From 2014 to 2018, Ghomi arranged the smuggling of more than 250 metric tons (275.6 U.S. tons) of networking equipment into Iran, using freight forwarders and intermediaries in Dubai to disguise that Iran was the true destination.

Ghomi knew this conduct was illegal and took deliberate steps to conceal it. He directed his UAE co-conspirators to keep his name off shipping paperwork, to omit invoices from shipments bound for Iran, and on at least two occasions to hide U.S.-origin computer equipment inside larger shipments. He used front companies in the UAE to obscure his role, and he personally received warnings on invoices and software licenses that exporting these goods to Iran was prohibited. Ghomi and his co-conspirators referred to Iran as “Motherland” in their internal correspondence concerning the equipment’s procurement.

FPR’s annual sales exceeded $10 million and ran to hundreds of Iranian companies and government entities, many of which were subject to U.S. sanctions. A relatively small but significant portion of that business went to the most sensitive end-users in Iran: the Iranian regime’s nuclear and military establishment.

From 2017 to 2023, FPR supplied U.S.-origin computer networking equipment to the Atomic Energy Organization of Iran (AEOI) — the Iranian government agency responsible for Iran’s nuclear program, including its centrifuge and uranium-enrichment programs. The U.S. State Department sanctioned AEOI in 2020 for playing a leading role in Iran's nonperformance of its nuclear commitments, including exceeding the limits on its uranium stockpile and enrichment levels. 

According to the affidavit, AEOI required FPR to register as an approved vendor, which it did in 2021 and 2022. From 2014 to 2022, FPR supplied U.S.-origin networking, security, and encryption equipment to Iran’s Ministry of Defense and Armed Forces Logistics — the Iranian ministry responsible for research, development, and manufacturing across Iran’s defense enterprise — and to affiliated military and defense-electronics entities. FPR’s 2017 contract with Iran Computer Industries, signed by Ghomi, expressly identified the buyer as the “Ministry of Defense and Armed Forces Logistics — Iran Computer Industries.”

Ghomi laundered the proceeds of his illegal business into the United States, depositing FPR’s Iranian sales revenue into its operating account at a sanctioned Iranian bank and then sweeping those funds to himself. Within days, he received corresponding wires into his U.S. accounts from a rotating set of unrelated trading companies and exchange houses in the British Virgin Islands, Hong Kong, Turkey, and the UAE. Those wires bore false descriptions such as “Buying Goods” and “For Consulting Fees.”

From 2011 to 2024, Ghomi moved more than $15 million from Iran into his U.S. bank accounts and into a construction escrow account held on his behalf. He falsely reported those funds to the IRS as a foreign inheritance. Ghomi’s federal tax returns reported almost no income, his highest reported income in any year being $20,684. Ghomi claimed the Earned Income Tax Credit, a federal tax break for low- to moderate-income working individuals and families, in seven different tax years. Over the same period, Ghomi reported more than $1.7 million in home-mortgage interest and $1.25 million in state and local real-estate taxes on his federal income tax returns.

Ghomi funded the construction of his Orange County, California, mansion with the proceeds of his sanctions-evasion scheme. Ghomi purchased a vacant lot in Newport Coast in March 2010 for $4,490,000 and paid approximately $10,490,371 to construct the residence from 2010 to 2013. From May 2011 to August 2015, foreign-source wires totaling more than $7 million flowed into the escrow account funding the home’s construction. These wires came from many of the same trading companies as the transfers from FPR’s operating account, were handled by the same FPR employees, and bore the same false descriptions. 

A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Ghomi would face a maximum penalty of 20 years in prison.

IRS-CI, in coordination with the Department of Commerce’s Bureau of Industry and Security, is investigating the case.

Assistant U.S. Attorney David C. Lachman for the Central District of California is prosecuting the case, with valuable assistance from the National Security Division’s Counterintelligence and Export Control Section.

A complaint merely contains allegations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

SANTA ANA, California – A dual U.S.-Iranian national and CEO of an Iran-based technology company was arrested today on a federal criminal complaint charging him with violating U.S. sanctions against Iran by acquiring sophisticated U.S.-origin networking, security, and encryption equipment for Iranian customers — including the Iranian regime’s nuclear and military establishment.

Jamshid Ghomi, 63, of Newport Coast, is charged with conspiracy to violate the International Emergency Economic Powers Act.

Ghomi is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.

“Ghomi is accused of aiding our declared enemies by selling U.S.-origin computer networking parts to Iran and earning millions of dollars in violation of U.S. sanction laws,” said First Assistant United States Attorney Bill Essayli. “Our nation’s laws prohibiting doing business with one of the world’s largest state sponsors of terrorism must be enforced and obeyed. We will hold him accountable by seeking an appropriate prison sentence and by seizing his assets, including his $35 million Newport Beach mansion.”

“Today’s arrest reflects our commitment to disrupt the illegal flow of American technology to foreign nations, especially our adversaries. As alleged, Mr. Ghomi spent years exploiting United States financial systems and procurement channels to move controlled equipment to Iran while hiding his activities behind front companies and falsified documentation,” said Darren Lian, Acting Special Agent in Charge, IRS Criminal Investigation’s Los Angeles Field Office. “We will continue to work with our partners to safeguard national security by utilizing our financial investigative expertise.”

The IEEPA and the Iranian Transactions and Sanctions Regulations (ITSR) impose controls and restrictions on transactions involving Iran based on the threats posed by Iran to the national security of the United States, including its pursuit of nuclear weapons and sponsorship of terrorism. The IEEPA and ITSR prohibit the export, re-export, sale, or supply, directly or indirectly, from the United States or by a United States person, wherever located, of any goods, technology, or services to Iran or the Government of Iran without first obtaining authorization from OFAC. 

According to the affidavit filed with the complaint, Ghomi is the founder, owner, and CEO of Faraz Pardaz Rayaneh Co. Ltd. (FPR), a Tehran-based computer networking company. For more than a decade, Ghomi has used FPR to procure U.S.-origin networking equipment for customers in Iran in violation of U.S. sanctions. At no time did Ghomi or FPR obtain a license from the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) authorizing those transactions.

Ghomi identified, negotiated, purchased, and arranged the shipment of large quantities of controlled U.S. technology for his own company. From 2011 to 2023, he used his own eBay and PayPal accounts to make hundreds of purchases of computer-networking equipment, directing the goods to intermediaries in the United Arab Emirates (UAE). In 2023, Ghomi personally negotiated the purchase of U.S.-origin networking equipment directly from suppliers in Minnesota and Nebraska, routing it through a UAE front company and on to FPR in Iran. 

None of these items could be lawfully exported to Iran without a license from OFAC.

From 2014 to 2018, Ghomi arranged the smuggling of more than 250 metric tons (275.6 U.S. tons) of networking equipment into Iran, using freight forwarders and intermediaries in Dubai to disguise that Iran was the true destination.

Ghomi knew this conduct was illegal and took deliberate steps to conceal it. He directed his UAE co-conspirators to keep his name off shipping paperwork, to omit invoices from shipments bound for Iran, and on at least two occasions to hide U.S.-origin computer equipment inside larger shipments. He used front companies in the UAE to obscure his role, and he personally received warnings on invoices and software licenses that exporting these goods to Iran was prohibited. Ghomi and his co-conspirators referred to Iran as “Motherland” in their internal correspondence concerning the equipment’s procurement.

FPR’s annual sales exceeded $10 million, and its clientele included hundreds of Iranian companies and government entities, many of which were subject to U.S. sanctions. A relatively small but significant portion of that business went to the most sensitive end-users in Iran: the Iranian regime’s nuclear and military establishment.

From 2017 to 2023, FPR supplied U.S.-origin computer networking equipment to the Atomic Energy Organization of Iran (AEOI) – the Iranian government agency responsible for Iran’s nuclear program, including its centrifuge and uranium-enrichment programs. The U.S. State Department sanctioned AEOI in 2020 for playing a leading role in Iran's nonperformance of its nuclear commitments, including exceeding the limits on its uranium stockpile and enrichment levels. According to the affidavit, AEOI required FPR to register as an approved vendor, which it did in 2021 and 2022. 

From 2014 to 2022, FPR supplied U.S.-origin networking, security, and encryption equipment to Iran’s Ministry of Defense and Armed Forces Logistics — the Iranian ministry responsible for research, development, and manufacturing across Iran’s defense enterprise -- and to affiliated military and defense-electronics entities. FPR’s 2017 contract with Iran Computer Industries, signed by Ghomi, expressly identified the buyer as the “Ministry of Defense and Armed Forces Logistics — Iran Computer Industries.”

Ghomi laundered the proceeds of his illegal business into the United States, depositing FPR’s Iranian sales revenue into its operating account at a sanctioned Iranian bank and then sweeping those funds to himself. Within days, he received matching wires into his U.S. accounts from a rotating set of unrelated trading companies and exchange houses in the British Virgin Islands, Hong Kong, Turkey, and the UAE. Those wires bore false descriptions such as “Buying Goods” and “For Consulting Fees.”

From 2011 to 2024, Ghomi moved more than $15 million from Iran into his U.S. bank accounts and into a construction escrow account held on his behalf. He falsely reported those funds to the IRS as a foreign inheritance. Ghomi’s federal tax returns reported almost no income, his highest reported income in any year being $20,684. Ghomi claimed the Earned Income Tax Credit, a federal tax break for low- to moderate-income working individuals and families, in seven different tax years. Over the same period, Ghomi reported more than $1.7 million in home-mortgage interest and $1.25 million in state and local real-estate taxes on his federal income tax returns.

Ghomi funded the construction of his Orange County mansion with the proceeds of his sanctions-evasion scheme. Ghomi purchased a vacant lot in Newport Coast in March 2010 for $4,490,000 and paid approximately $10,490,371 to construct the residence from 2010 to 2013. From May 2011 to August 2015, foreign-source wires totaling more than $7 million flowed into the escrow account funding the home’s construction. These wires came from many of the same trading companies as the transfers from FPR’s operating account, were handled by the same FPR employees, and bore the same false descriptions.  

A complaint is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Ghomi would face a statutory maximum sentence of 20 years in federal prison.

IRS Criminal Investigation, in coordination with the Department of Commerce’s Bureau of Industry and Security, is investigating this matter.

Assistant United States Attorney David C. Lachman of the Major Frauds Section is prosecuting this case, with valuable assistance from the National Security Division’s Counterintelligence and Export Control Section.

LOS ANGELES – An Ohio-based smoke bomb designer and importer, and two other companies have agreed to pay more than $4 million to the United States for costs and damages from the El Dorado Fire of 2020, which was ignited as part of a gender reveal photo shoot, burned nearly 23,000 acres, and caused a firefighter’s death.

Wholesale Fireworks Corp., a Hubbard, Ohio-based company, and its subsidiary, American Fireworks Warehouse LLC, agreed to pay $4 million to settle claims brought on behalf of the United States Forest Service. 

A third defendant, Pink or Blue Gender Team Inc., a Florida-based company, has agreed to pay $50,000 to settle claims related to the fire.

The fire was ignited on September 5, 2020, by a pyrotechnic device at a couple’s gender reveal party in El Dorado Ranch Park in Yucaipa. The fire spread to the San Gorgonio Wilderness Area of the San Bernardino National Forest, burning a total of 22,744 acres, damaging or destroying nine structures and 15 outbuildings, and killing one firefighter.

The couple responsible for the gender reveal party later pleaded guilty to criminal charges in San Bernardino County Superior Court.

In September 2023, the United States sued the three corporate defendants to recover Forest Service costs for fighting the fire and the damage it caused to federal land.

The United States alleged that the defendants were liable because the fire was caused by a gender reveal smoke bomb that Wholesale and AFW designed, imported, distributed, marketed, and advertised and Pink or Blue distributed, marketed, and advertised that ignited the dry vegetation. 

The defendants further allegedly failed to safely design and label the smoke bombs and failed to properly warn customers about the fire risk of the smoke bombs, despite being aware of their dangers. These smoke bombs should never have been sold into California, where they are illegal.   

Assistant United States Attorneys Yujin Chun and Katherine Hikida of the Civil Division handled this matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

A California man who was a co-founder and former board member of Aspiration Partners, Inc., a financial technology and sustainability services company, was sentenced yesterday to 14 years in prison for a five-year scheme to defraud multiple lenders and investors of at least $248 million. 

“Joseph Sanberg preyed on investors and lenders who believed in his vision of environmentally conscious fintech,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Instead of delivering on Aspiration’s promises, he orchestrated a multi-year scheme involving fake clients, sham payments, and deceptive loan collateral that caused at least $248 million in losses to numerous victims. This sentence holds him accountable and serves as a clear warning to others who abuse trust for personal gain and obtain loans from the financial industry based on lies and misrepresentations.” 

“This serial fraudster used his Cinderella-like background, impressive educational credentials, and virtue signaling skills to swindle investors and lenders out of hundreds of millions of dollars,” said First Assistant U.S. Attorney Bill Essayli of the Central District of California. “This criminal case serves as a warning: Anyone can get duped by a con man.”

“As evidenced by this case, Mr. Sanberg selfishly put businesses and clients at risk who expected him to provide a valuable service to protect their interests” said Assistant Director in Charge Patrick Grandy of the FBI Los Angeles Field Office. “Along with our law enforcement partners, the FBI will continue to allocate expert resources to investigate and prosecute all those who take advantage of a position of trust to defraud American businesses.” 

“Yesterday’s sentencing reflects our commitment to the public,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The reward for lying, stealing, and falsifying records, is jail time.” 

According to court documents, Joseph Neal Sanberg, 46, of Orange, California, devised a scheme that began in 2020 and continued into 2025 to use his significant share of Aspiration stock to defraud various lenders and investors. Between 2020 and 2021, Sanberg and Ibrahim AlHusseini, who were both members of Aspiration’s board of directors, fraudulently obtained $145 million in loans from two lenders by pledging shares of Sanberg’s Aspiration stock. In order to secure the loans, Sanberg and AlHusseini falsified AlHusseini’s bank and brokerage statements to fraudulently inflate AlHusseini’s assets by tens of millions of dollars. 

Beginning in 2021, Sanberg concealed from investors that he was the source of millions of dollars of purported revenue paid to Aspiration through, or purportedly on behalf of, sham customers.  Court documents indicate that Sanberg personally recruited companies and individuals to enter agreements with Aspiration in which they committed to pay tens of thousands of dollars per month for tree planting services. The money for these customers’ payments was supplied by Sanberg himself. Sanberg concealed that these payments came from him rather than from the customers.

Aspiration booked revenue from these sham customers between March 2021 and November 2022, at the same time Sanberg concealed that he was the source of the payments. As a result, Aspiration’s financial statements falsely and fraudulently reflected much higher revenue than the company in fact received. Nonetheless, Sanberg continued to solicit investors to invest in Aspiration securities into 2025.

According to the documents, Sanberg also defrauded other lenders and investors using fraudulent materials describing Aspiration’s financial condition, including a fabricated letter from Aspiration’s audit committee that falsely stated Aspiration had $250 million in available cash and equivalents at a time that Aspiration only had less than $1 million in available cash. Sanberg used these fraudulent financial materials to obtain millions of dollars in additional loans and investments in Aspiration securities. Sanberg’s victims sustained at least $248 million in losses.

Sanberg pleaded guilty in October 2025 to two counts of wire fraud. 

The FBI and USPIS investigated the case.

Trial Attorneys Theodore Kneller and Adam L.D. Stempel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Nisha Chandran and Alexander Su for the Central District of California prosecuted the case.

Yesterday a federal jury in Los Angeles convicted an activist short seller of securities fraud for a long-running market manipulation scheme reaping profits of more than $21 million. 

“Andrew Left used his expertise to profit at the expense of retail investors, ordinary people who owned the stocks he targeted. He callously boasted that it was like ‘taking candy from a baby,’” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Egregious schemes like this strike at the heart of free, fair and open markets, and warrant prosecution when they involve criminal manipulation. Investors should have confidence that U.S. markets are safe and free from the type of deliberate manipulation that Left engaged in to enrich himself at the expense of American investors.”

“Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “A fair and transparent securities market is a foundation of our nation’s financial system. We will continue to bring to justice individuals who abuse the public trust placed in financial advisors.”

“Andrew Left abused his position and influence when he devised a scheme known as ‘Short-and-Distort,’ to manipulate the market for personal gain,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS). “Now he’s facing the consequences. Postal inspectors and our federal counterparts continue to partner to ensure spreading misleading or false material to the investing public has only one result: jail time.” 

“Frauds such as the one perpetrated by Left can erode investor confidence which impacts our capital markets,” said Assistant Director in Charge Patrick Grandy of the FBI Los Angeles Field Office. “While this conviction cannot make up for the significant and emotional harm he inflicted upon his unwitting investors, it does send a message to those who may be looking to profit from similar schemes – think twice because the FBI has a proven track record of rooting out fraudsters who illegally tilt the playing field against honest investors and undermine confidence in our markets.” 

According to court documents and evidence presented at trial, Andrew Left, 55, of Boca Raton, Florida, was a securities analyst, trader, and frequent guest commentator on cable news channels who manipulated the price of publicly traded securities so that he could profit off of investors who trusted him. As part of his scheme, Left made false and misleading statements — in the form of online posts and public reports — concerning publicly traded companies, asserting that the market incorrectly valued a company’s stock and advocating that the current price was too high or too low. Left knowingly exploited his ability to move stock prices by targeting stocks popular with retail investors and posting recommendations on social media to manipulate the market and make fast, easy money. 

In anticipation of his public commentary, Left established long or short positions in the public company on which he was commenting and prepared to quickly close those positions post-publication and take profits on the short-term price movement caused by his commentary. In advance of his tweets and reports, Left would enter limit orders to trade in the opposite direction of his public recommendations. Furthermore, Left used his advance knowledge and control over the timing of a market-moving event to build his positions using inexpensive, short-dated options contracts that expired from the same day that he published his commentary to within five days. To further the scheme, Left advanced the false pretense that his investment recommendations were credible because he was independent and free from any financial conflicts of interest. 

Left was convicted of one count of participating in a securities fraud scheme and 12 counts of securities fraud. He is scheduled to be sentenced on Aug. 31. He faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

USPIS and the FBI investigated the case. The Justice Department appreciates the substantial assistance of the Financial Industry Regulatory Authority (FINRA)’s Criminal Prosecution Assistance Group.

Acting Assistant Chief Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Benedetto L. Balding and Andrew Roach for the Central District of California are prosecuting the case.  Paralegals Mika Gothard, Ellen Kiernan, and Lanie Kirby provided substantial assistance.

LOS ANGELES – An Orange County man who co-founded and served as board member of the financial technology and sustainability services company formerly known as Aspiration Partners Inc., was sentenced today to 168 months in federal prison for a years-long scheme in which he defrauded investors and lenders, causing more than $248 million in losses.

Joseph Neal Sanberg, 46, of Orange, was sentenced by United States District Judge Stephen V. Wilson, who scheduled a restitution hearing for July 20.

Sanberg pleaded guilty in October 2025 to two counts of wire fraud.

“This serial fraudster used his Cinderella-like background, impressive educational credentials, and virtue signaling skills to swindle investors and lenders out of hundreds of millions of dollars,” said First Assistant United States Attorney Bill Essayli. “This criminal case serves as a warning: Anyone can get duped by a con man.” 

“Joseph Sanberg preyed on investors and lenders who believed in his vision of environmentally conscious fintech,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Instead of delivering on Aspiration’s promises, he orchestrated a multi-year scheme involving fake clients, sham payments, and deceptive loan collateral that caused at least $248 million in losses to numerous victims. This sentence holds him accountable and serves as a clear warning to others who abuse trust for personal gain and obtain loans from the financial industry based on lies and misrepresentations.”

“As evidenced by this case, Mr. Sanberg selfishly put businesses and clients at risk who expected him to provide a valuable service to protect their interests” said Patrick Grandy, Assistant Director in Charge of the FBI Los Angeles Field Office. “Along with our law enforcement partners, the FBI will continue to allocate expert resources to investigate and prosecute all those who take advantage of a position of trust to defraud American businesses.”

“Today’s sentencing reflects our commitment to the public,” said Inspector in Charge Eric Shen of the United States Postal Inspection Service (USPIS) Criminal Investigations Group. “The reward for lying, stealing, and falsifying records, is jail time.”

Sanberg devised a scheme that began in 2020 and continued into 2025 to use his significant share of Aspiration stock to defraud various lenders and investors. Between 2020 and 2021, Sanberg and Ibrahim AlHusseini, who were both members of Aspiration’s board of directors, fraudulently obtained $145 million in loans from two lenders by pledging shares of Sanberg’s Aspiration stock. To secure the loans, Sanberg and AlHusseini falsified AlHusseini’s bank and brokerage statements to fraudulently inflate AlHusseini’s assets by tens of millions of dollars.

Beginning in 2021, Sanberg concealed from investors that he was the source of millions of dollars of purported revenue paid to Aspiration through, or purportedly on behalf of, sham customers.  Court documents indicate that Sanberg personally recruited companies and individuals to enter agreements with Aspiration in which they committed to pay tens of thousands of dollars per month for tree planting services. The money for these customers’ payments was supplied by Sanberg himself. Sanberg concealed that these payments came from him rather than from the customers.

Aspiration booked revenue from these sham customers between March 2021 and November 2022, at the same time Sanberg concealed that he was the source of the payments. As a result, Aspiration’s financial statements falsely and fraudulently reflected much higher revenue than the company in fact received. Nonetheless, Sanberg continued to solicit investors to invest in Aspiration securities into 2025.

According to the documents, Sanberg also defrauded other lenders and investors using fraudulent materials describing Aspiration’s financial condition, including a fabricated letter from Aspiration’s audit committee that falsely stated Aspiration had $250 million in available cash and equivalents at a time that Aspiration only had less than $1 million in available cash. Sanberg used these fraudulent financial materials to obtain millions of dollars in additional loans and investments in Aspiration securities. 

Sanberg’s victims sustained at least $248 million in losses.

The United States Postal Inspection Service and the FBI investigated this matter.

Assistant United States Attorneys Nisha Chandran of the Major Frauds Section and Alexander Su of the Asset Forfeiture and Recovery Section and Justice Department Trial Attorneys Theodore Kneller and Adam L.D. Stempel of the Criminal Division’s Fraud Section prosecuted this case. 

LOS ANGELES – A stock analyst and frequent guest on business television news channels was found guilty by a jury today for using his public platform to illicitly profit by manipulating stock market activity and trading opposite to the position he presented to the public.

Andrew Left, 55, formerly of Beverly Hills but who now resides in Boca Raton, Florida, was found guilty of one count of securities fraud scheme and 12 counts of securities fraud.

“Left used his TV appearances to disguise his intentions, manipulate the stock market, and pad his pockets,” said First Assistant United States Attorney Bill Essayli. “A fair and transparent securities market is a foundation of our nation’s financial system. We will continue to bring to justice individuals who abuse the public trust placed in financial advisors.”

“Frauds such as the one perpetrated by Left can erode investor confidence which impacts our capital markets” said Patrick Grandy, Assistant Director in Charge of the FBI Los Angeles Field Office. “While this conviction cannot make up for the significant and emotional harm he inflicted upon his unwitting investors, it does send a message to those who may be looking to profit from similar schemes – think twice because the FBI has a proven track record of rooting out fraudsters who illegally tilt the playing field against honest investors and undermine confidence in our markets.” 

According to evidence presented at a 15-day trial, Left was a securities analyst, trader, and frequent guest commentator on business cable news channels such as CNBC, Fox Business, and Bloomberg Television. He also published under the name “Citron Research,” an online moniker he created as for his platform to publish investment recommendations. Citron’s online presence included a website and a social media account on X, formerly known as Twitter.

Using Citron’s online platform, Left commented on publicly traded companies and asserted that the market incorrectly valued the companies’ stock, advocating that the current price was too high or too low. 

Left’s recommendations often included an explicit or implicit representation about Citron’s trading position and a “target price,” which he represented as his own view of the security’s true future value. 

Left used his social media following and public platform to earn at least $21 million in quick profits by fraudulently manipulating the stock market from at least March 2018 to October 2023.

Knowing that Citron’s reputation with investors had the power to move markets, Left selected a publicly traded company about which he intended to publish commentary with the intention of manipulating its share price. Left prepared commentary about the company for dissemination through Citron. 

Sometimes, the commentary represented Left’s own work. Other times, Left disseminated as his own the commentary of third parties. The commentary routinely included sensationalized headlines and inflammatory language to maximize the immediate impact their publication would have on the stock market.

In the lead up to publication of Citron’s commentary, Left established long or short positions in a company in his trading accounts, so he profited by taking advantage of the intended short-term movement in the company’s share price caused by his commentary. To exploit his advanced knowledge of the timing and subject of the forthcoming commentary on the company, Left often built his positions using inexpensive, short-dated options contracts that expired the same day that he published his commentary.

Left also submitted limit orders to close his positions as soon as the company’s shares reached a certain price – often at prices vastly different from the target prices Citron’s commentary touted. Though Left represented to the public that his recommendations were to be trusted, behind the scenes, Left took opposite trading positions to reap quick profits off the stocks he either promoted or pilloried through Citron.

To maintain the illusion of Citron’s independence and the credibility of its commentary, Left concealed Citron’s financial relationships with hedge funds. According to the indictment, for example, Left lied to law enforcement that Citron “never” exchanged compensation with a hedge fund or coordinated trading with a hedge fund in advance of the issuance of its commentary.

For example, in November 2018, Left wrote a portfolio manager about Nvidia Corp., a publicly traded technology company based in Santa Clara, California. In the message, Left wrote, “Do you want to make some fast money[.] Put together a thesis why nvda is oversold . . . We can destroy it . . . Just read the analyst notes from this past quarter and assemble the best of the ideas.”

Later that morning, Left took financial positions in Nvidia, including short-dated call options that expired three days later. Short-dated options can offer quick profits if a stock suddenly moves in the narrow timeframe before expiration.

Left then promoted Nvidia as a favorable investment on Citron’s Twitter account, stating, “Citron buys $NVDA. This is the first time in 2 years stock offers an appealing risk-reward to investors . . . We see $165 before we see $120.” At the time, Nvidia’s stock was trading at approximately $143.64. The tweet was reported on by major media outlets.

Despite his representation that he expected Nvidia’s share price to rise to $165, less than two hours after announcing “Citron buys $NVDA,” Left sold all his pre-tweet positions Nvidia was trading within a range of approximately $150 – $151, for a profit of at least than $960,000. Nvidia closed at a high of $154 on the day of Left’s tweet and fell to $144 the next day.

Left also furthered his scheme by misrepresenting his trading positions during public appearances on news programs. After denouncing one company as a “fraud” on CNBC’s “Fast Money,” for example, Left falsely claimed to have covered only a “small size” of his position in the company’s stock when, earlier that same day, he had already closed out most of his position following the publication of commentary through Citron.

The jury acquitted Left of four counts of securities fraud for trades for four specific companies.

United States District Judge Virginia A. Phillips scheduled an August 31 sentencing hearing, at which time Left would face a statutory maximum sentence of 25 years in federal prison for the securities fraud scheme count, up to 20 years in federal prison for each count of securities fraud.

The FBI and the United States Postal Inspection Service investigated this matter, with substantial assistance from FINRA’s Criminal Prosecution Assistance Group.

Assistant United States Attorneys Andrew M. Roach of the Major Frauds Section and Benedetto L. Balding of the Transnational Organized Crime Section and Acting Assistant Chief Matthew Reilly of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case. 

The Justice Department's Criminal Division's Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at (888) 549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. 

LOS ANGELES – A South Los Angeles man was sentenced today to 308 months in federal prison for committing the armed robbery of an armored truck in Hawthorne on St. Valentine’s Day in 2022, a heist in which more than $166,000 in cash and customer checks were stolen and a firearm was discharged after the truck’s driver was held on the ground at gunpoint.

Deneyvous Jayan Hobson, 39, of West Adams, was sentenced by United States District Judge Fernando L. Aenlle-Rocha, who also ordered him to pay $166,640 in restitution.

At the conclusion of a six-day trial in November 2024, a jury found Hobson guilty of one count of conspiracy to interfere with commerce by robbery (Hobbs Act), one count of Hobbs Act robbery, one count of using a firearm in furtherance of a crime of violence, and one count of being a felon in possession of a firearm and ammunition.

On February 14, 2022, Hobson and co-defendant James Russell Davis, 37, also of West Adams, robbed a Sectran Security Services armored truck by ambushing the truck’s driver after the driver had finished servicing an ATM.

Three weeks prior to the robbery, Hobson and Davis cased the Wescom Credit Union in Hawthorne and observed a Sectran driver serving an ATM. During and before the robbery, Davis acted as a lookout and performed countersurveillance nearby.

On St. Valentine’s Day, at approximately the same time in the morning as their casing three weeks earlier, Hobson, traveling in a separate car from Davis, arrived at the credit union while the victim – identified in court documents as “J.G.” – was servicing the credit union’s ATMs.

Hobson and two other co-conspirators got out of their white Honda Accord, approached the victim, ordered him to the ground at gunpoint, and took J.G.’s service weapon, a .40-caliber handgun. Hobson and two co-conspirators stole approximately $166,640 in cash and checks from the Wescom Credit Union’s ATM. As Hobson and two accomplices returned to their car, one of the co-conspirators fired the 9mm semi-automatic handgun he was carrying. They then fled the scene.

The next day, Hobson attempted to sell for $800 via text the 9mm semi-automatic handgun he carried at the robbery, stating that the weapon was “not all the way bad it was just shot doing a get down,” according to court documents.

In October 2022, Hobson illegally possessed a 9mm pistol and 12 rounds of 9mm ammunition. Hobson was not permitted to possess the firearm or ammunition because his criminal history includes felony convictions in 2003 in Los Angeles Superior Court for robbery and assault with a deadly weapon.

Davis pleaded guilty in February 2024 to one count of Hobbs Act robbery and one count of discharging a firearm in furtherance of a crime of violence. In June 2024, Judge Aenlle-Rocha sentenced Davis to 166 months in federal prison and ordered him to pay $166,640 in restitution to Sectran Security Services. 

“The nature, circumstances, and seriousness of the offenses cannot be understated as [Hobson] violently robbed an innocent worker, forever changing that man’s life, and nearly killing him, all for money,” prosecutors argued in a sentencing memorandum. 

The FBI, the Los Angeles Police Department, the Los Angeles County Sheriff’s Department, the Inglewood Police Department, and the Hawthorne Police Department investigated this matter.

Assistant United States Attorneys Kevin J. Butler and Jena A. MacCabe of the Major Crimes Section, and Jason C. Pang of the Transnational and Organized Crime Section prosecuted this case.

A California man was sentenced yesterday to 65 months in prison for smuggling at least 1,700 reptiles into the United States from Mexico, Hong Kong, and elsewhere over a six-year period. 

Jose Manuel Perez, of Oxnard, pleaded guilty in August 2022 to one count of smuggling goods into the United States and one count of wildlife trafficking. From January 2016 to February 2022, Perez and other co-conspirators smuggled wildlife into the United States without obtaining the permits required by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and without declaring any wildlife imported into the United States.

Perez and his co-conspirators used social media to buy and to negotiate the terms of the sale and delivery of wildlife in the United States. The defendants advertised for sale on social media the animals smuggled from Mexico into the United States, posting photos and video that depicted the animals being collected from the wild.

For the animals smuggled from Mexico, Perez’s co-conspirators retrieved the wildlife — which included Yucatán box turtles, Mexican box turtles, baby crocodiles, and Mexican beaded lizards — from Cuidad Juárez International Airport in Mexico and eventually shipped the animals by car to El Paso, Texas. Perez paid his co-conspirators a “crossing fee” for each border crossing, the amount of which depended on the number of animals transported, the size of the package, and the risk of being detected by the authorities.

On other occasions, Perez and a co-conspirator traveled to Mexico to purchase live animals that had been taken from the wild so that the animals could be smuggled into the United States. Once the animals had been shipped to the United States, they were transported to Perez’s residence (which was originally in Missouri and then in California after he moved).

In total, Perez caused the illegal smuggling and importation of at least 1,700 animals with a fair market value of more than $739,000.

Prior to today’s sentencing, Jose Perez had been serving a nine-year prison sentence after pleading guilty in May 2023 to three counts of being a felon in possession of firearms. He is not legally permitted to possess firearms because his criminal record includes felony convictions in Ventura County Superior Court for street terrorism and assault with a deadly weapon.

Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), First Assistant U.S. Attorney Bilal A. Essayli for the Central District of California, and Assistant Director Doug Ault of the U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement made the announcement.

USFWS investigated the case. The U.S. Attorney’s Office for the Southern District of California, the ENRD’s Environmental Crimes Section, U.S. Customs and Border Protection, and Homeland Security Investigations provided substantial assistance.

Senior Trial Attorney Gary Donner of ENRD’s Environmental Crimes Section and Assistant U.S. Attorneys Matthew W. O’Brien and Juan M. Rodriguez for the Central District of California prosecuted the case.

LOS ANGELES – A convicted murderer, whom law enforcement believes is an active member of the 18th Street gang while being paid with City of Los Angeles funds to work as a “Peace Ambassador,” was arrested today on a federal criminal complaint charging him with illegally possessing two body armor plates near the city’s drug-and-crime-infested MacArthur Park.

Michael Angel Alvarez, 41, a.k.a. “Diablo,” of Westlake, is charged with possession of body armor by a violent felon.

According to an affidavit filed with the complaint, Alvarez is a convicted gang murderer who represents himself as working for Healing Urban Barrios, a Lincoln Heights-based organization that contracted with the city for its Peace Ambassador program that is run in the city’s Council District 1, which includes MacArthur Park. He has represented himself as a member of that organization through clothing he wears. 

The Peace Ambassador program is described on a city website as “a new initiative to prevent violence before it starts and to support Angelenos in moments of crisis.”

Each Peace Ambassador team “consists of two unarmed workers who have lived experience in the justice or gang systems and are trained in violence prevention and trauma-informed care,” according to a city website. 

The city has agreed to appropriate $450,000 from its general fund between June 2024 and May 2027 “[t]o defray operation costs of expenditures incurred with the unique services provided by Healing Urban Barrios for their services provided as Peace Ambassadors,” court documents state.

Also, according to the agreement, the city may immediately terminate the contract if a Peace Ambassador is convicted of an “Act of Moral Turpitude,” including “crimes involving weapons.”

Healing Urban Barrios paid Alvarez a total of $58,156 in 2025.

Alvarez’s criminal history includes a 2002 conviction for first-degree murder for which he was sentenced to 50 years to life in state prison, but was released after serving 24 years’ imprisonment, and an April 2025 felony conviction for being a prisoner in possession of a weapon.

Law enforcement believes Alvarez is still involved in gang activity because of jailhouse telephone calls in which he discussed assaulting individuals for breaking gang rules. 

On May 18, two uniformed police officers responded to a call for backup related to a stolen vehicle investigation near MacArthur Park. As the officers were leaving, they noticed Alvarez standing on a corner looking at them and they believed he might be a wanted person.

Officers detained Alvarez, who later told them he was a “CRT,” which the officers believed was a reference to the Los Angeles Mayor’s Crisis Response Team. A search of Alvarez’s car resulted in the seizure of two body armor plates in the trunk. The plates are from Las Vegas and are marketed as “the highest protection level available on the civilian market,” the affidavit states.

A complaint is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Alvarez would face a statutory maximum sentence of five years in federal prison.

The FBI is investigating this matter with the Los Angeles Police Department and Homeland Security Investigations providing assistance.

This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. The HSTF utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.

Assistant United States Attorney Jena A. MacCabe of the Major Crimes Section is prosecuting this case.

LOS ANGELES – A Ventura County man who smuggled at least 1,700 reptiles from Mexico to the United States over a six-year period was sentenced today to 65 months in federal prison.

Jose Manuel Perez, 34, of Oxnard, was sentenced by United States District Judge Fernando M. Olguin.

Perez pleaded guilty in August 2022 to two counts of smuggling goods into the United States and one count of wildlife trafficking. 

From January 2016 and to February 2022, Perez and other co-conspirators smuggled wildlife into the United States from Mexico and elsewhere, including Hong Kong, without obtaining the permits required by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) and without declaring any wildlife imported into the United States.

Perez and his co-conspirators used social media to buy and to negotiate the terms of the sale and delivery of wildlife in the United States. Perez advertised for sale on social media the animals smuggled from Mexico into the United States, posting photos and videos that depicted the animals being collected from the wild.

The animals – which included Yucatán box turtles, Mexican box turtles, baby crocodiles and Mexican beaded lizards – were imported into the United States from Mexico and Hong Kong without the permits required by CITES.

For the animals smuggled from Mexico, co-conspirators retrieved the wildlife from Cuidad Juárez International Airport in Mexico and eventually shipped the animals by car to El Paso, Texas. Perez paid his co-conspirators a “crossing fee” for each border crossing – the amount of which depended on the number of animals transported, the size of the package, and the risk of being detected by the authorities.

On other occasions, Perez and a co-conspirator traveled to Mexico to purchase additional live animals that had been taken from the wild so that the animals could be smuggled into the United States. Once the animals had been smuggled into the United States, they were transported to Perez’s then-residence in Missouri. But after he moved to California, the wildlife was transported to his residence in Ventura County.

In total, Perez caused the illegal smuggling and importation of at least 1,700 animals with a fair market value of more than $739,000.

Perez is serving a nine-year prison sentence after pleading guilty in May 2023 to three counts of being a felon in possession of firearms. He is not legally permitted to possess firearms because his criminal record includes felony convictions in Ventura County Superior Court for street terrorism and assault with a deadly weapon.

United States Fish and Wildlife Service investigated this matter. The United States Attorney’s Office for the Southern District of California, the Justice Department’s Environmental Crimes Section, U.S. Customs and Border Protection, and Homeland Security Investigations provided substantial assistance.

Assistant United States Attorneys Matthew W. O’Brien of the Environmental Crimes and Consumer Protection Section and Juan M. Rodriguez of the Public Corruption and Civil Rights Section, and Senior Trial Attorney Gary Donner of the Justice Department’s Environmental Crimes Section, prosecuted this case.

SANTA ANA, California – A Culver City restauranteur who owns a hospitality company that has developed restaurants and hotels in California, Tennessee, and Kentucky was sentenced today to 41 months in federal prison for fraudulently obtaining more than $4 million COVID-19 economic-relief loans.

Philip Frederick Camino, 46, was sentenced by United States District Judge Fred W. Slaughter, who also ordered him to pay $4,365,667 in restitution. At the conclusion of today’s hearing, Camino was remanded into federal custody.

Camino pleaded guilty in August 2024 to one count of conspiracy to commit wire fraud.

During the spring of 2020, Congress created two federal programs to provide financial assistance to Americans and businesses suffering economic harm because of the COVID-19 pandemic: Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL).

From April 2020 to April 2021, Camino, who owned several companies based in Hollywood, Westwood, Studio City, and Beverly Hills as well as in Arizona, submitted and caused to be submitted false and fraudulent applications to the United States Small Business Administration (SBA) and banks for PPP and EIDL loans.

In these applications, Camino made false statements, including inflating the number of employees, providing fictitious federal tax forms that were never filed with the IRS, and falsely certifying that the loan proceeds would be used for permissible business purposes.  In total, Camino submitted more than 20 fraudulent loan applications from which he obtained more than $4 million.

Homeland Security Investigations, the FBI, and IRS Criminal Investigation investigated this matter.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

Chief Assistant United States Attorney and Chief of the Criminal Division Jennifer L. Waier prosecuted this case.

LOS ANGELES – A Burbank man was sentenced today to 51 months in federal prison for evading the payment of more than $11.2 million in federal taxes by using a shill to illegally collect Medicare reimbursement payments made to his blood-testing company, and to fraudulently obtaining nearly $100,000 in taxpayer-funded COVID-19 business relief.

Armen Muradyan, 60, was sentenced by United States District Judge John A. Kronstadt, who also ordered him to pay $15,158,033 in restitution.

Muradyan pleaded guilty in August 2025 to one count of conspiracy to commit health care fraud, one count of wire fraud, and one count of tax evasion.

Muradyan owned and operated a Burbank-based blood testing laboratory called Genex Laboratories Inc. Medicare and bank records showed that Medicare paid millions of dollars in reimbursements to Genex for blood testing. The reimbursements were wired to bank accounts in the name of an individual identified in court documents as “L.S.” – Muradyan’s long-time friend to whom Muradyan had offered to pay $2,000 per month to pretend to be Genex’s owner.

Muradyan told L.S. that he needed him to submit Medicare enrollment papers to Medicare on Genex’s behalf because Medicare had banned Muradyan from submitting claims.

L.S. and Muradyan opened bank accounts for Genex in L.S.’s name, but which Muradyan controlled. L.S. neither owned nor operated Genex and visited the company’s Burbank office to collect his $2,000 monthly payment and to sometimes sign documents at Muradyan’s direction. Muradyan used the proceeds from the health care fraud conspiracy to pay the mortgage on a property he owned as well as to support his gambling habit and to pay personal expenses.

For the tax years of 2015 through 2023, Muradyan instructed L.S. to report Genex’s financial activity on L.S.’s personal income tax returns using documents that L.S. provided to his own tax preparer. The documents purportedly showed that Genex had minimal net profit or was operating at a loss, meaning the company had little or no income tax liability.

For the same period, Muradyan submitted income tax returns that reported none of Genex’s financial activity as his own and that he averaged an income of $40,000 per year. In fact, Muradyan personally received and used millions of dollars in Medicare reimbursements to support his own expensive lifestyle.

Muradyan also did not file tax returns for the years 2021 through 2023.

In total, Muradyan’s unreported federal taxable income was approximately $23,915,762, resulting in a total federal income tax due and owing by him of approximately $11,236,356 plus prejudgment interest of $3,921,677.

In July 2020, Muradyan wired a false and fraudulent application for an Economic Injury Disaster Loan (EIDL) that was funded by federal taxpayers. On the application, Muradyan falsely stated that an entity, GenMed, employed multiple people and generated $800,000 in income for the year 2019. In fact, Muradyan knew GenMed employed no one and generated zero income for that year. The U.S. Small Business Administration (SBA) wired $99,900 to a bank account Muradyan controlled. He then used the money for personal expenses not permitted under the terms of the EIDL. Muradyan admitted he acted with the intent to deceive and cheat the SBA.

IRS Criminal Investigation, the FBI, and the United States Department of Health and Human Services Office of Inspector General investigated this matter.

Assistant United States Attorney Mark Aveis of the Major Frauds Section and Trial Attorney Mahana K. Weidler of the Department of Justice’s Criminal Division prosecuted this case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

LOS ANGELES – A San Fernando Valley man who was actor and author Matthew Perry’s live-in personal assistant was sentenced today to 41 months in federal prison for obtaining and repeatedly injecting Perry with ketamine, including the fatal dose that ended Perry’s life in October 2023.

Kenneth Iwamasa, 61, of Toluca Lake, was sentenced by United States District Judge Sherilyn Peace Garnett, who also fined him $10,000.

Iwamasa pleaded guilty in August 2024 to one count of conspiracy to distribute ketamine resulting in death and serious bodily injury. He is the fifth and final defendant to be sentenced in connection with Perry’s death.

According to court documents, Iwamasa knew Perry since 1992 and became his live-in personal assistant in 2022. In this role, he was paid $150,000 per year and had various responsibilities, including coordinating Perry’s medical care and ensuring that Perry took the medication that he was lawfully prescribed by treating physicians. 

Iwamasa is not a medical professional and has no expertise or training in that field. He also was aware of Perry’s long history of drug addiction. Prosecutors wrote in their sentencing position that “rather than help Mr. Perry maintain sobriety, [Iwamasa] became his enabler and drug supplier,” ultimately causing Mr. Perry’s death.

In September 2023 and continuing until Perry’s death on October 28, 2023, Iwamasa conspired with multiple people, including a physician, Salvador Plasencia, 44, a.k.a. “Dr. P,” of Santa Monica, and a drug counselor, Erik Fleming, 56, of Hawthorne, to knowingly and intentionally distribute ketamine to Perry.

Plasencia distributed 20 vials and multiple tablets of ketamine and syringes to Iwamasa and Perry and taught Iwamasa how to inject the ketamine into Perry, knowing that his conduct fell below the proper standard of medical care and that the ketamine transfers were not for a legitimate medical purpose. Plasencia charged a total of $57,000 for these efforts, even though the going price of ketamine was only approximately $15 per vial. Plasencia did not provide the ketamine that caused Perry’s death.

Iwamasa witnessed Plasencia inject Perry with a large dose of ketamine that caused the actor to “freeze up” and be unable to move or speak. Despite Plasencia stating, “Let’s not do that again,” Iwamasa already had begun arranging for a steady – and cheaper – supply of ketamine from Fleming, court documents state.

In October 2023, Iwamasa purchased 51 vials of ketamine from Fleming over the course of 11 days. Fleming obtained the ketamine from his drug source, Jasveen Sangha, 42, a.k.a. “Ketamine Queen,” of North Hollywood. 

Leading up to Perry’s death, Iwamasa repeatedly injected Perry with the ketamine that Sangha supplied to Fleming. During this period, Iwamasa witnessed Perry’s increasing addiction to ketamine. He found Perry unconscious at his residence on at least two occasions and witnessed an immediate adverse reaction following a ketamine injection where Perry froze up and was unable to talk or move. On October 28, 2023, Iwamasa injected Perry with at least three shots of Sangha’s ketamine, which caused Perry’s death.

On the day of Perry’s death, after Iwamasa called 911 to Perry’s residence, Los Angeles Police officers questioned him. When asked about what medications Perry was currently taking, Iwamasa provided a robust list of treating doctors and medications

Perry had been prescribed. Iwamasa, however, intentionally omitted ketamine from the list. When Iwamasa recounted the events leading up to Perry’s death, he provided a chronology that concealed the ketamine injections he had administered to Perry, including the third shot that Iwamasa administered just hours earlier, prior to Perry’s death.

Iwamasa also took steps to remove and destroy evidence related to Perry’s use of ketamine in the days leading up to the actor’s death. After doing so, Iwamasa contacted Fleming on the phone and told him that he had cleaned up the scene, including the ketamine bottles and syringes, and that he had “deleted everything,” according to court documents.

Sangha, Plasencia, and Fleming are serving federal prison sentences, respectively, of 15 years, 2½ years, and two years, after pleading guilty to federal narcotics charges. 

Mark Chavez, 55, a former San Diego physician, was ordered to serve a sentence of eight months of home detention, 300 hours of community service, and three years of probation. He pleaded guilty in October 2024 to one count of conspiracy to distribute ketamine. Chavez operated a ketamine clinic and sold the drug to Plasencia, who then distributed it to Perry. 

Chavez surrendered his medical license in November 2024. Plasencia surrendered his medical license in September 2025.

The Los Angeles Police Department, the Drug Enforcement Administration, and the United States Postal Inspection Service investigated this matter.

Assistant United States Attorneys Ian V. Yanniello of the National Security Division and Haoxiaohan H. Cai of the Major Frauds Section prosecuted this case.

The Justice Department announced today that it has obtained an order forfeiting a luxury New York apartment purchased with funds misappropriated from 1MDB, a Malaysian Sovereign Wealth Fund, along with certain rental income. This action resolves a civil forfeiture case filed in the United States District Court for the Central District of California seeking the recovery of over $6 million in assets associated with an international conspiracy to launder funds misappropriated from 1MDB. 

As alleged in civil forfeiture complaints filed in this case, billions of dollars in funds belonging to 1MDB were misappropriated from 2009 through 2015 by high-level officials of 1MDB and their associates, and Low Taek Jho, also known as Jho Low, through a criminal scheme involving international money laundering and embezzlement. Millions of dollars in such misappropriated funds were then used to purchase a luxury condominium unit in New York City for the benefit of May Ling Catherine Tan (Tan), a personal assistant for Low, who also profited from this asset by retaining rental proceeds. Under the forfeiture order entered in this case, the condominium and rental proceeds held by Tan will be forfeited to the U.S. government.    

1MDB was created by the government of Malaysia to promote economic development in Malaysia through global partnerships and foreign direct investment. Its funds were intended to be used for improving the well-being of the Malaysian people. Instead, funds held by 1MDB and proceeds of bonds issued for and on behalf of 1MDB were misappropriated and spent by Low and his co-conspirators on a wide variety of extravagant items, including luxury homes and properties in Beverly Hills, California, New York, and London; a 300-foot superyacht; and fine art by Monet and Van Gogh. The funds also were sent into numerous business investments, including a boutique hotel in Beverly Hills, the movie production company that made “The Wolf of Wall Street,” the redevelopment of the Park Lane Hotel in Manhattan, and shares in EMI, the largest private music-rights holder. As alleged, other funds were provided to various public officials and co-conspirators.

Trial Attorney Barbara Levy of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) is prosecuting the civil forfeiture case, with assistance from the U.S. Attorney’s Office for the Central District of California, and the Justice Department’s Office of International Affairs, and the US Marshals. The FBI’s International Corruption Squad in New York is leading the investigation. 

MNF’s International Unit investigates and prosecutes cross-border money laundering schemes involving transnational criminal organizations, cartels, foreign official corruption and related money laundering affecting the U.S. financial system, and prosecutes criminal cases and civil forfeiture matters to recover the proceeds of those crimes.

Significant assistance has also been provided to the Justice Department over the course of its work in the investigations and civil and criminal litigation by the Attorney General’s Chambers of Malaysia, Royal Malaysian Police, Malaysian Anti-Corruption Commission, U.K. Financial Conduct Authority, U.K. Prudential Regulation Authority, U.K. National Crime Agency, Attorney General’s Chambers of the Territory of the British Virgin Islands, Attorney General’s Office of the Bailiwick of Guernsey and Guernsey Economic Crime Division, International Anti-Corruption Coordination Centre, Attorney General’s Chambers of Singapore, Singapore Police Force — Commercial Affairs Division, Office of the Attorney General and Federal Office of Justice of Switzerland, judicial investigating authority of the Grand Duchy of Luxembourg, Criminal Investigation Department of the Grand-Ducal Police of Luxembourg, Republic of Indonesia, Latvian authorities, and French authorities, including the Parquet National Financier and Agency for Management and Recovery of Seized and Confiscated Assets (AGRASC).

Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to tips.fbi.gov/.

LOS ANGELES – Today, the Department of Justice’s Civil Rights Division filed a lawsuit against the University of California for its deliberate indifference to race and national origin discrimination against Jewish and Israeli students at its University of California Los Angeles (UCLA) campus, in violation of Title VI of the Civil Rights Act of 1964.

“Earlier this year, we sued UCLA for subjecting its Jewish and Israeli employees to an antisemitic hostile work environment,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Now, the Department of Justice calls UCLA to account for its toleration of the equally appalling hostile educational environment against its Jewish and Israeli students.”

“Universities have an obligation to maintain safe and inclusive campuses for all students,” said First Assistant U.S. Attorney Bill Essayli. “Universities that violate our nation’s civil rights laws by repeatedly failing to shield Jewish students from antisemitism will be held accountable.”

After the Hamas attacks on October 7, 2023, antisemitic hatred against UCLA’s Jewish and Israeli students reached a point where students were physically assaulted, injured, excluded from campus, and deprived of educational opportunities because of their perceived Jewish or Israeli heritage. As alleged in the United States’ complaint, UCLA violated Title VI through its deliberate indifference to this pervasive on-campus antisemitism. 

UCLA also breached its funding contracts and grants with the United States by certifying the school’s compliance with its Title VI duties to protect all students from unlawful discrimination while allowing discrimination against Jewish and Israeli students to infect its campus.

UCLA’s tolerance of antisemitism reached a flash point in April 2024 when masked demonstrators erected an encampment outside of Royce Hall and slapped, kicked, beat with sticks, doused with pepper spray, and knocked unconscious Jewish and Israeli students. During this time, occupiers formed “human phalanxes” to block Jewish and Israeli students from entering academic buildings.

This lawsuit — filed in the Central District of California — stems from the Department’s investigation into reports of antisemitic incidents against students on UCLA’s campus and written findings concluding, in part, that UCLA failed to fulfill its legal obligations under Title VI of the Civil Rights Act of 1964 in responding to those incidents.

Today, the Department of Justice’s Civil Rights Division filed a lawsuit against the University of California for its deliberate indifference to race and national origin discrimination against Jewish and Israeli students at its University of California Los Angeles (UCLA) campus, in violation of Title VI of the Civil Rights Act of 1964.

“Earlier this year, we sued UCLA for subjecting its Jewish and Israeli employees to an antisemitic hostile work environment,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Now, the Department of Justice calls UCLA to account for its toleration of the equally appalling hostile educational environment against its Jewish and Israeli students.”

“Universities have an obligation to maintain safe and inclusive campuses for all students,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Universities that violate our nation’s civil rights laws by repeatedly failing to shield Jewish students from antisemitism will be held accountable.”

After the Hamas attacks on October 7, 2023, antisemitic hatred against UCLA’s Jewish and Israeli students reached a point where students were physically assaulted, injured, excluded from campus, and deprived of educational opportunities because of their perceived Jewish or Israeli heritage. As alleged in the United States’ complaint, UCLA violated Title VI through its deliberate indifference to this pervasive on-campus antisemitism. UCLA also breached its funding contracts and grants with the United States by certifying the school’s compliance with its Title VI duties to protect all students from unlawful discrimination while allowing discrimination against Jewish and Israeli students to infect its campus.

UCLA’s tolerance of antisemitism reached a flash point in April 2024 when masked demonstrators erected an encampment outside of Royce Hall and slapped, kicked, beat with sticks, doused with pepper spray, and knocked unconscious Jewish and Israeli students. During this time, occupiers formed “human phalanxes” to block Jewish and Israeli students from entering academic buildings.

This lawsuit — filed in the Central District of California — stems from the Department’s investigation into reports of antisemitic incidents against students on UCLA’s campus and written findings concluding, in part, that UCLA failed to fulfill its legal obligations under Title VI of the Civil Rights Act of 1964 in responding to those incidents.

LOS ANGELES – A Philippines man has been arrested on a federal criminal complaint charging him with smuggling 227 kilograms (500 pounds) of cocaine on an oil tanker inbound from Ecuador to El Segundo, narcotics that were intended to be delivered to a Mexican drug cartel, the Justice Department announced today.

Ceasar Tubay Gelacio, Jr., 43, of The Philippines, is charged with importation of a controlled substance. 

He was arrested Thursday, and he is scheduled to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.

According to an affidavit filed with the complaint, earlier this month, law enforcement was notified that the Greek-owned and Liberian-flagged oil tanker Aquatravesia, whose last port of call was Ecuador, was inbound to the United States carrying kilogram quantities of drugs intended to be delivered to a Mexican cartel.

Crew members discovered numerous packages hidden inside the ship’s garbage room that contained suspected narcotics. The ship’s captain interviewed the crew and discovered that Gelacio possessed the drugs. The captain then secured the narcotics in a different room inside the ship.

The captain was informed that while the Aquatravesia was in Mexican waters, small naval crafts with armed Mexican cartel members would be waiting 80 nautical miles from the shore on the evening of May 14 and the early morning of May 15. If the drugs were not delivered at this time, additional crafts would be waiting in Mexican waters to board the oil tanker and recover the contraband. 

The captain also reported receiving what he believed were radio calls from the cartel attempting to hail the Aquatravesia prior to a boarding or takeover.

U.S. law enforcement directed the Aquatravesia to navigate the ship to the combined port of Los Angeles and Long Beach, where it would board the oil tanker. The ship anchored in the directed area on Thursday.

Once on board, law enforcement recovered approximately 227 kilograms of cocaine. Law enforcement learned that Gelacio possessed the cocaine inside the ship, had received the drugs in Ecuador, and intended to distribute them to another party while the boat was traveling past Mexico. 

A complaint is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Gelacio would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life in federal prison.

Homeland Security Investigations and the United States Coast Guard are investigating this matter.

Assistant United States Attorney Monika L. Hara of the General Crimes Section is prosecuting this case.

LOS ANGELES – A Culver City man who worked for a nonprofit organization that distributes syringes to homeless drug users in Los Angeles and elsewhere was arrested today on a federal criminal complaint charging him with possessing fentanyl when police pulled him over while he drove a BMW near MacArthur Park earlier this month.

Christopher Barret Johnson, 42, is charged with possession with intent to distribute fentanyl. 

Johnson once worked for People Assisting the Homeless (PATH), a nonprofit that offers services to homeless people including street outreach, interim and permanent housing. PATH also serves as a vendor distributing syringes, including in MacArthur Park, a sector of the city characterized by high rates of poverty with many of its residents and visitors being drug users.

Johnson is expected to make his initial appearance tomorrow afternoon in United States District Court in downtown Los Angeles.

According to an affidavit filed with the complaint, during the late evening of May 5, 2026, Los Angeles Police officers patrolled the MacArthur Park area, which is notorious for the use and sale illegal drugs, including methamphetamine and fentanyl, in open-air markets.

At approximately 10:20 p.m., the officers observed a white BMW lacking a front license plate abruptly conduct a U-turn in front of them. The officers then conducted a traffic stop on the BMW.

The vehicle’s sole occupant was Johnson, who “appeared very nervous,” the affidavit states. While speaking with Johnson, one of the officers observed in plain view on the BMW’s center console a plastic baggie containing methamphetamine. The officer also saw Johnson carrying two knives in his waistband. The officer then ordered Johnson out of the car. Johnson complied.

The officers conducted a pat-down search of Johnson and found a plastic baggie containing methamphetamine in Johnson’s left front trouser pocket. Officers also searched the BMW and located a partially opened backpack that contained more plastic baggies containing methamphetamine and fentanyl, a digital scale that had fentanyl residue on it, empty plastic baggies, and cash.

Also found inside the BMW was a dish soap container that contained additional plastic baggies containing fentanyl. The BMW’s center console also contained cash and a large amount of plastic baggies.

Subsequent laboratory analysis confirmed that the drugs seized from Johnson’s BMW and person included at least 142 grams of a substance that contained fentanyl and nearly 46 grams of methamphetamine.

A complaint is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Johnson would face a mandatory minimum sentence of five years in federal prison and a statutory maximum sentence of 40 years in federal prison.

This matter is being investigated by the Drug Enforcement Administration Los Angeles Field Division’s Southern California Drug Task Force (SCDTF), a DEA-led multi-agency task force within the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Program, and the Los Angeles Police Department.

Assistant United States Attorney Christopher Jones of the General Crimes Section is prosecuting this case.

A jury in the Central District of California convicted a California doctor yesterday in a $45 million scheme to defraud Medicare by submitting claims for Botox injections that were never provided and medically unnecessary, and for obstructing the investigation by manipulating and altering medical records in an attempt to mislead criminal investigators. The investigation was initiated as a result of a referral from the Health Care Fraud Section’s Data Analytics Team, after its analysis showed that the defendant was paid more by Medicare for Botox injections than any other doctor in the United States.

“Violetta Mailyan falsely diagnosed patients, fraudulently billed for Botox injections while she was actually on lavish vacations, and tried to trick federal agents with fake records,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Fraud Division’s data-driven approach will shine a light on fraud schemes across the country, ensuring that no doctor can engage in these types of brazen schemes to rob Medicare.”

“Let this conviction serve as a warning: anyone who leverages their medical authority to defraud Medicare will be caught and held accountable,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the Health and Human Servics Office of Inspector General (HHS‑OIG). “This defendant’s actions were a blatant betrayal of patients and the public trust. HHS‑OIG will stay relentless in protecting federal health care programs from those who seek to exploit them.”

“Physicians who defraud and manipulate federally funded health care programs to line their own pockets do so at the expense of American taxpayers and those who are in legitimate need of medical procedures,” said Assistant Director in Charge Patrick Grandy of the FBI’s Los Angeles Field Office. “The FBI is gratified that the jury convicted Dr. Mailyan based on the evidence, which uncovered the largest Botox fraud scheme in the United States, to include brazenly billing for someone who was incarcerated. Furthermore, the FBI is committed to pursuing physicians and others in the healthcare system who fleece Medicare and, in doing so, drive up premiums and co-payments for law-abiding citizens.”

According to court documents and evidence presented at trial, Violetta Mailyan, 45, of Glendale, owned and operated Healthy Way Medical Center, a clinic that purported to provide beauty and cosmetic services. Although Medicare reimburses medical providers for Botox injections when necessary to treat documented cases of chronic migraines, Mailyan billed and received payments for thousands of injections that were never provided or were provided only for cosmetic purposes or for patients whose primary care physicians had not referred them for treatment of chronic migraines. For example, the evidence at trial showed that Mailyan billed for providing Botox injections when she was actually on vacation in Cabo, Mexico; Maui, Hawaii; Las Vegas; Pennsylvania; and New York; billed for purportedly injecting a Medicare beneficiary who was actually incarcerated in federal prison at the time; and billed for thousands of injections, representing over $19 million, purportedly provided on days when her clinic was closed. The evidence also showed that Mailyan backdated some claims to bill for injections purportedly provided before the patients even contacted Mailyan’s clinic to request an appointment, and fabricated patient medical records, including patient consent forms, to make it appear as if patients suffered from chronic migraines and had received treatment for those migraines in her office.

In addition to the fraudulent billing, the evidence at trial showed that Mailyan actively sought to cover up her crimes when investigators were closing in. After receiving a grand jury subpoena seeking medical records, Mailyan altered patient records to make it appear as if she had provided Botox injections for chronic migraines when in fact those services had not been provided, and provided the altered documents to federal agents.

The evidence at trial showed that Mailyan used Medicare funds she obtained through the scheme to pay for her lavish vacations in Mexico, Hawaii, and elsewhere, and to purchase luxury collectible goods such as a $12,000 17th century crossbow and a $3,000 painting, depicted below:

This prosecution illustrates the success of the Department’s efforts to use advanced data analytics to detect health care fraud schemes and bring the perpetrators to justice. The Health Care Fraud Section’s Data Analytics Team identified Mailyan as an extreme outlier among doctors receiving Medicare payments for Botox, having at the time been paid more than $24 million over the previous four years — six times the next highest group of providers, all of whom were neurologists. As the investigation and evidence presented at trial showed, Mailyan’s outlier status owed entirely to her pervasive and long-running fraud scheme. 

Following the conviction, the jury also found that a Tesla Model X, a Tesla Cybertruck, $251,124  in funds contained in multiple bank accounts, brokerage accounts valued at $7,312,037 at the time of seizure, and four properties in Surfside and Glendale, California with combined estimated equity of $7,343,636, were proceeds of the fraud subject to forfeiture. The Cybertruck seized from Mailyan is shown below:

Mailyan was convicted of nine counts of wire fraud and three counts of obstruction of a criminal investigation of a health care offense. She is scheduled to be sentenced on September 10, 2026. She faces a maximum penalty of 20 years in prison for each count of wire fraud and 5 years in prison for each count of obstruction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Trial Attorneys Sandor Callahan and Jeffrey A. Crapko of the Criminal Division’s Fraud Section prosecuted the case. FBI and HHS-OIG investigated the case. Assistant U.S. Attorney Tara Vavere of the Central District of California’s Asset Forfeiture and Recovery Section is handling asset forfeiture matters.

On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

LOS ANGELES – A Marina del Rey woman who worked as a longtime signature collector for ballot initiatives has been charged with paying individuals – including homeless people living in the Skid Row area of downtown Los Angeles – to register to vote, the Justice Department announced today.

Brenda Lee Brown Armstrong, 64, a.k.a. “Anika,” is charged with one felony count of paying another person to register to vote, a federal charge that carries a statutory maximum sentence of five years in federal prison.

Armstrong has agreed to plead guilty to the charge and is scheduled to make her initial appearance this morning in United States District Court in Santa Ana. She is expected to plead guilty in the coming weeks.

“False registrations undermine Americans’ faith in elections – even more so when payoffs are involved,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “This Justice Department is committed to ensuring that all U.S. elections are fair and free from illegal meddling – so that all Americans can accept the results with confidence.”

According to her plea agreement, for approximately 20 years, Armstrong periodically worked as a “petition circulator.” In that role, she was paid by individuals and entities – known as “coordinators” – to collect voter signatures on official petitions that qualify initiatives, referendums, and recalls for California state ballots. Armstrong drove around the Los Angeles area to find registered voters to sign the petitions.

After gathering enough signatures, Armstrong returned the petitions to her coordinators, who then paid her a set amount for each registered voter’s signature. The amount she was paid varied depending on the specific ballot initiative. Because her coordinators only paid for signatures attributable to registered voters, Armstrong endeavored to ensure the people who signed her petitions were registered voters.

Armstrong occasionally solicited petitioned signatures in Skid Row, an area of downtown Los Angeles notorious for its homelessness problem. Skid Row was a convenient place for Armstrong to collect signatures because of its high concentration of people in a relatively small area who were willing to sign petitions in exchange for payment. Armstrong regularly paid and offered to pay individuals cash, usually in amounts between $2 and $3, to induce them to sign her petitions. 

Many of Skid Row’s homeless population were not registered to vote. To ensure she maximized her pay from her coordinators, starting no later than 2025, Armstrong began offering payment to individuals not only to sign her petitions, but also to complete a voter registration form. Before going to Skid Row, Armstrong gathered a stack of voter registration forms from the Los Angeles County Registrar of Voters.

Some homeless people did not have an address to put on the forms. On several occasions, Armstrong provided a homeless individual with her own former address in Los Angeles so they had something to write on the registration form. These registration forms simultaneously registered an individual to vote in California elections and in federal elections.

Because California automatically sends a vote-by-mail ballot to every registered voter, this also meant ballots in some homeless individuals’ names could have the potential to be sent to Armstrong’s former residence where the homeless individual did not live or collect mail.

On January 30, 2026, as part of her ongoing scheme, Armstrong knowingly and willfully paid another person to register to vote. She paid the person for the purpose of causing that person to register to vote in federal elections.

The FBI and investigators with the U.S. Attorney’s Office for the Central District of California investigated this matter.

Assistant United States Attorneys Michael Wheat and Nandor Kiss of the Orange County Office are prosecuting this case. 

LOS ANGELES – A San Diego County man was arrested today on a federal grand jury indictment charging him with assaulting a Jewish man near a synagogue in the Pico-Robertson area of Los Angeles, which was hosting an event to promote the purchase of real estate in Israel – an event protested by several pro-Palestinian groups.

Zaid Gitesatani, 28, of Carlsbad, is charged with one count of hate crime. He is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.

“The defendant’s conduct, if proven, is a serious violation of the law – every American deserves to live without fear of violence based on who he is or how he worships,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “The Justice Department is committed to vigorously prosecuting such crimes of hate and violence.”

According to the indictment that a federal grand jury returned on May 5, a real estate agency known as “My Home in Israel” advertised an event scheduled for June 23, 2024, at the Adas Torah Synagogue in L.A.’s Pico-Robertson neighborhood. The event was to promote land for sale in Israel.

Several pro-Palestinian groups then planned for and advertised a protest to take place at this event. One of those groups advertised a protest to “stand against settler expansion.” Gitesatani traveled to Los Angeles to attend this protest. 

On the afternoon of the real estate event and protest, a Jewish man identified in the indictment as “Victim A” was walking his dog near the Adas Torah Synagogue when Gitesatani approached him from behind and punched him in the jaw, resulting in pain, redness, and swelling. After assaulting the victim, Gitesatani walked away and retreated into the crowd.

On the same day he assaulted Victim A, Gitesatani posted to his personal Instagram account a screenshot of his assault, a message that read, “Whooped the Zios today and we took their flag,” and two images of himself displaying his bruised knuckles following the assault.

In the two days following his assault on Victim A, Gitesatani had an exchange via Instagram with another user regarding the June 23, 2024, assault. Gitesatani wrote, “I whopped 2 zios,” “whooped,” “I swung good on them,” “It was satisfying,” and “I [sic] hand it [sic] numb from punching him so hard.”

Gitesatani also posted on Instagram a still image of his assault on Victim A with the caption, “The Chosen People sometimes need a good smack to wake up.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

If convicted, Gitesatani would face a statutory maximum sentence of 10 years in federal prison.

The FBI is investigating this matter.

Assistant United States Attorney Laura A. Alexander of the Public Corruption and Civil Rights Section and Trial Attorney Erica O’Connell with the Justice Department’s Civil Rights Division are prosecuting this case.

A California woman who worked as a longtime signature collector for ballot initiatives has been charged with paying individuals – including homeless people living in the Skid Row area of downtown Los Angeles – to register to vote.

“False registrations undermine Americans’ faith in elections – even more so when payoffs are involved,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Justice Department is committed to ensuring that all U.S. elections are fair and free from illegal meddling – so that all Americans can accept the results with confidence.”

Brenda Lee Brown Armstrong, of Marina del Rey, California, 64, also known as “Anika,” is charged with one felony count of paying another person to register to vote, a federal charge that carries a maximum penalty of five years in federal prison.

Armstrong has agreed to plead guilty to the charge and is scheduled to make her initial appearance this morning in U.S. District Court in Santa Ana. She is expected to plead guilty in the coming weeks.

According to her plea agreement, for approximately 20 years, Armstrong periodically worked as a “petition circulator.” In that role, she was paid by individuals and entities – known as “coordinators” – to collect voter signatures on official petitions that qualify initiatives, referendums, and recalls for California state ballots. Armstrong drove around the Los Angeles area to find registered voters to sign the petitions.

After gathering enough signatures, Armstrong returned the petitions to her coordinators, who then paid her a set amount for each registered voter’s signature. The amount she was paid varied depending on the specific ballot initiative. Because her coordinators only paid for signatures attributable to registered voters, Armstrong endeavored to ensure the people who signed her petitions were registered voters.

Armstrong occasionally solicited petitioned signatures in Skid Row, an area of downtown Los Angeles notorious for its homelessness problem. Skid Row was a convenient place for Armstrong to collect signatures because of its high concentration of people in a relatively small area who were willing to sign petitions in exchange for payment. Armstrong regularly paid and offered to pay individuals cash, usually in amounts between $2 and $3, to induce them to sign her petitions.

Many of Skid Row’s homeless population were not registered to vote. To ensure she maximized her pay from her coordinators, starting no later than 2025, Armstrong began offering payment to individuals not only to sign her petitions, but also to complete a voter registration form. Before going to Skid Row, Armstrong gathered a stack of voter registration forms from the Los Angeles County Registrar of Voters.

Some homeless people did not have an address to put on the forms. On several occasions, Armstrong provided a homeless individual with her own former address in Los Angeles so they had something to write on the registration form. These registration forms simultaneously registered an individual to vote in California elections and in federal elections.

Because California automatically sends a vote-by-mail ballot to every registered voter, this also meant ballots in some homeless individuals’ names could have the potential to be sent to Armstrong’s former residence where the homeless individual did not live or collect mail.

On Jan. 30, as part of her ongoing scheme, Armstrong knowingly and willfully paid another person to register to vote. She paid the person for the purpose of causing that person to register to vote in federal elections.

The FBI and investigators with the U.S. Attorney’s Office for the Central District of California investigated this matter.

Assistant U.S. Attorneys Michael Wheat and Nandor Kiss for the Central District of California are prosecuting this case.

A San Diego County man was arrested today on a federal grand jury indictment charging him with assaulting a Jewish man near a synagogue in the Pico-Robertson area of Los Angeles, which was hosting an event to promote the purchase of real estate in Israel – an event protested by several pro-Palestinian groups.

“The defendant’s conduct, if proven, is a serious violation of the law – every American deserves to live without fear of violence based on who he is or how he worships,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Justice Department is committed to vigorously prosecuting such crimes of hate and violence.”

Zaid Gitesatani, 28, of Carlsbad, California, is charged with one count of hate crime. He is expected to make his initial appearance this afternoon in U.S. District Court in Los Angeles.

According to the indictment that a federal grand jury returned on May 5, a real estate agency known as “My Home in Israel” advertised an event scheduled for June 23, 2024, at the Adas Torah Synagogue in Los Angeles’ Pico-Robertson neighborhood. The event was to promote land for sale in Israel.

Several pro-Palestinian groups then planned for and advertised a protest to take place at this event. One of those groups advertised a protest to “stand against settler expansion.” Gitesatani traveled to Los Angeles to attend this protest.

On the afternoon of the real estate event and protest, a Jewish man identified in the indictment as “Victim A” was walking his dog near the Adas Torah Synagogue when Gitesatani approached him from behind and punched him in the jaw, resulting in pain, redness, and swelling. After assaulting the victim, Gitesatani walked away and retreated into the crowd.

On the same day he assaulted Victim A, Gitesatani posted to his personal Instagram account a screenshot of his assault, a message that read, “Whooped the Zios today and we took their flag,” and two images of himself displaying his bruised knuckles following the assault.

In the two days following his assault on Victim A, Gitesatani had an exchange via Instagram with another user regarding the June 23, 2024, assault. Gitesatani wrote, “I whopped 2 zios,” “whooped,” “I swung good on them,” “It was satisfying,” and “I [sic] hand it [sic] numb from punching him so hard.”

Gitesatani also posted on Instagram a still image of his assault on Victim A with the caption, “The Chosen People sometimes need a good smack to wake up.”

If convicted, Gitesatani faces a maximum penalty of 10 years in prison. A U.S. District Court Judge would determine any sentence after considering the Sentencing Guidelines and other information.

The FBI is investigating this matter.

Assistant U.S. Attorney Laura A. Alexander for the Central District of California and Trial Attorney Erica O’Connell of the Justice Department’s Civil Rights Division are prosecuting this case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

LOS ANGELES – A Ventura County man pleaded guilty today to sex trafficking two minors two months after his release from California state prison, where he served time after being convicted of child sex crimes.

Kai Whitney Sommers, 38, of Ventura, and registered sex offender, pleaded guilty to one count of sex trafficking of minors. He has been in federal custody since June 2024.

According to his plea agreement and other court documents, Sommers was convicted and sentenced in September 2021 in Los Angeles Superior Court for statutory rape and lewd or lascivious acts with a child 14/15 years and offender 10+ years older. In that case, Sommers enticed a minor on an online chat room to make money as an escort. He then lured the victim to meet with him, took her to his house, and sexually assaulted the victim.

In June 2023, Sommers was released on post-release community supervision in Los Angeles County and later accepted for supervision in Ventura County. The supervision terms for Sommers include no access or possession of any digital devices that access the internet.

In August 2023, approximately two and half months after his release, Ventura County Probation conducted a search at Sommers’ residence and determined that he was in possession of digital devices that contained child sexual abuse material (CSAM) and during this same month had been in communication with a minor on a messaging platform geared toward teens.

During the review of Sommers devices, law enforcement identified a 16-year-old girl and a 14-year-old girl who met Sommers on the online platform. Sommers had requested he and the victims move the conversation to a secure application where he could entice and coerce the minors how to make extra money as escorts.

Sommers enticed one victim to produce CSAM and enticed the other victim to provide fully clothed images for him that, unknown to both victims, he then posted multiple commercial sex advertisements of each victim. The ads on an adult website depicted the victims as “18-year-old” escorts. Sommers also pretended to be the victims while he communicated with the potential adult clients. Sommers told the minors that if the clients asked how old they were, they had to say, “18.”

Sommers ultimately coerced one of the victims to meet with two adult men he found on the adult website and on both occasions a commercial sex act occurred in exchanged for money.

Sommers further admitted in his plea agreement to possessing in August 2023 a phone that contained nearly 150 visual depictions of CSAM. He also admitted to distributing CSAM.

United States District Judge Josephine L. Staton scheduled a September 24 sentencing hearing, at which time Sommers will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of life imprisonment.

The FBI and the Ventura Police Department are investigating this matter.

Assistant United States Attorney Chelsea Norell of the Major Crimes Section is prosecuting this case. 

LOS ANGELES – A San Bernardino County man was sentenced today to 540 months in federal prison for sexually exploiting two teenage girls he met on Instagram, including by posing as a teenage boy to entice them into having a sexual relationship, and for bringing one victim from San Luis Obispo County to Mexico to engage in illicit sexual activity.

Daniel Navarro, 42, of Victorville, was sentenced by United States District Judge André Birotte, Jr., who also ordered him to pay $15,000 in restitution. Navarro has been in federal custody since July 2022.

At the conclusion of a four-day trial in July 2025, a jury found Navarro guilty of six felonies: two counts of sexual exploitation of a child to produce a sexually explicit visual depiction, one count of attempted enticement of a minor to engage in criminal sexual activity, one count of transporting a minor with intent to engage in criminal sexual activity, one count of distribution of child pornography, and one count of transportation of child pornography.

According to evidence presented at trial, from at least August 2021 until July 2022, Navarro used Instagram to entice two 14-year-old girls into believing he was “Danny,” a 15-year-old football player from California, using the handles “dn.2021.01” and “dn84831.” Navarro later groomed and enticed the victims into producing sexually explicit images of themselves.

From June 30, 2022, to July 1, 2022, Navarro traveled with one of the victims, an Arizona girl who was spending the summer in the San Luis Obispo County town of Nipomo, to Tijuana, Mexico, with the purpose of engaging in criminal sexual activity. 

According to court documents, Navarro had an online relationship with this victim for approximately five months. A review of one of Navarro’s Instagram accounts revealed conversations between Navarro and the victim on the victim’s Instagram account in which Navarro professed his love for the victim and discussed getting her pregnant.

Mexican law enforcement rescued this victim at a Tijuana residence in mid-July 2022.

“[Navarro] was a nearly-40-year-old man making empty promises to dozens of girls in pursuit of his own sexual gratification,” prosecutors argued in a sentencing memorandum. “[Navarro] lied to, groomed, and manipulated children to get what he wanted most from them: sexually explicit images and sex acts with these children.”

The FBI and the San Luis Obispo County Sheriff’s Office investigated this matter. The San Luis Obispo County District Attorney’s Office provided substantial assistance. The FBI’s Legal Attaché in Mexico City and Mexican law enforcement authorities provided assistance during this investigation.

Assistant United States Attorneys Kathy Yu, Chief of Ethics, Trials, and Compliance, and Kevin B. Reidy of the Major Frauds Section prosecuted this case.

LOS ANGELES – California-based companies Perfectus Aluminum Inc., Perfectus Aluminum Acquisitions LLC and four affiliated warehousing companies have agreed to pay a total of $549.5 million to resolve allegations that they violated the False Claims Act by knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties owed to the United States on aluminum extrusions imported from the People’s Republic of China (China).

“The President’s America First Trade Policy defends this country’s national and economic security and ensures compliance with trade laws, including the payment of tariffs intended to level the playing field for U.S. manufacturers,” said Acting Attorney General Todd Blanche. “Those who try to game the system harm American businesses and workers and will be brought to justice.”

“Unscrupulous, corrupt, and anti-competitive practices against American manufacturers will not be tolerated,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Law enforcement will use all legal means to protect American taxpayers, workers, and businesses.”

“Consistent with the goals of the Task Force to Eliminate Fraud, this settlement reflects our commitment to hold accountable those who commit fraud on the government by withholding duties that are owed on imported goods,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.  “The Civil Division will continue to zealously pursue those who attempt to evade such duties and harm U.S. manufacturing jobs.”

U.S. Customs and Border Protection (CBP) played a pivotal role in this action, providing critical support through the Office of Trade, Office of Field Operations, Office of Finance, and Office of Chief Counsel. “Duty evasion is not a victimless crime; it hurts businesses that play by the rules and undermines U.S. economic security,” said CBP Office of Trade Executive Assistant Commissioner Susan S. Thomas.  “I am proud of CBP’s close collaboration with the Justice Department and Homeland Security Investigations, as we work together to protect the American economy.”

To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. During the relevant time period, aluminum extrusions from China were subject to both antidumping and countervailing duties.

The settlement resolves civil allegations that, from July 2011 through June 2014, Defendants Perfectus, Perfectus Aluminum Acquisitions, and its affiliated warehousing companies 1001 Doubleday, LLC; Von-Karman Main Street, LLC; 10681 Production Avenue, LLC; and Scuderia Development, LLC (together, “Perfectus Defendants”) knowingly made, and caused others to make, false statements on Customs Form 7501 Entry Summaries that were material to obligations to pay duties owed to CBP on extruded aluminum.

The Perfectus Defendants knowingly and improperly avoided antidumping and countervailing duties owed on more than 2.2 million aluminum extrusions in the form of “pallets,” which they misrepresented to CBP as finished merchandise not subject to antidumping and countervailing duties.  The pallets were simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets.  In fact, there were no customers for these pallets imported by the Defendants between 2011 and 2014, and no pallets were ever sold. On August 23, 2021, a jury in the Central District of California convicted the Perfectus Defendants of Conspiracy to Commit an Offense Against the United States or Defraud the United States, among other things. United States v. Perfectus Aluminum Inc., et al., No. 2:19-cr-00282-GK (C.D. Cal.).

The settlement with the Perfectus Defendants resolves civil lawsuits filed by relators Mike Rapport, Eric Shen, and the Aluminum Extruders Council under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery. The lawsuits were separately filed in the Central District of California and later consolidated under the caption United States ex rel. Rapport v. PengCheng Aluminum Enterprise Inc., et al., No. 5:15-cv-00712 (C.D. Cal.). As part of today’s resolution, the relator share will be 17.5 percent of the settlement proceeds that are returned to CBP.

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from CBP’s Office of Associate Chief Counsel, Los Angeles West Region.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules.  The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The Civil Division coordinated this action through the Department of Justice’s Trade Fraud Task Force, a cross-agency law enforcement effort. The Task Force was created to leverage all of the Department’s tools and authorities to prevent trade fraud that deprives the government of vital revenue, threatens critical domestic industries, undermines consumer confidence, and weakens national security.  The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Department’s Corporate Whistleblower Program at [email protected] using the form available here.

Assistant United States Attorney Hunter B. Thomson for the Central District of California and Attorneys Jennifer Chorpening and Martha Glover of the Justice Department’s Civil Division, Commercial Litigation Branch, Civil Fraud Section, handled the case. 

California-based companies Perfectus Aluminum Inc., Perfectus Aluminum Acquisitions LLC and four affiliated warehousing companies have agreed to pay a total of $549.5 million to resolve allegations that they violated the False Claims Act by knowingly and improperly evading, or conspiring to evade, antidumping and countervailing duties owed to the United States on aluminum extrusions imported from the People’s Republic of China (China).

“The President’s America First Trade Policy defends this country’s national and economic security and ensures compliance with trade laws, including the payment of tariffs intended to level the playing field for U.S. manufacturers,” said Acting Attorney General Todd Blanche. “Those who try to game the system harm American businesses and workers and will be brought to justice.”

“Consistent with the goals of the Task Force to Eliminate Fraud, this settlement reflects our commitment to hold accountable those who commit fraud on the government by withholding duties that are owed on imported goods,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Civil Division will continue to zealously pursue those who attempt to evade such duties and harm U.S. manufacturing jobs.”

“Unscrupulous, corrupt, and anti-competitive practices against American manufacturers will not be tolerated,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “Law enforcement will use all legal means to protect American taxpayers, workers, and businesses.”

U.S. Customs and Border Protection (CBP) played a pivotal role in this action, providing critical support through the Office of Trade, Office of Field Operations, Office of Finance, and Office of Chief Counsel. “Duty evasion is not a victimless crime; it hurts businesses that play by the rules and undermines U.S. economic security,” said CBP Office of Trade Executive Assistant Commissioner Susan S. Thomas. “I am proud of CBP’s close collaboration with the Justice Department and Homeland Security Investigations, as we work together to protect the American economy.”

To enter goods into the United States, an importer must declare, among other things, the country of origin of the goods, the value of the goods, whether the goods are subject to duties, and the amount of duties owed. U.S. Customs and Border Protection (CBP) collects applicable duties, including antidumping and countervailing duties assessed by the Department of Commerce. Antidumping duties protect against foreign companies “dumping” products on U.S. markets at prices below cost, while countervailing duties offset foreign government subsidies. During the relevant time period, aluminum extrusions from China were subject to both antidumping and countervailing duties.

The settlement resolves civil allegations that, from July 2011 through June 2014, Defendants Perfectus, Perfectus Aluminum Acquisitions, and its affiliated warehousing companies 1001 Doubleday LLC, Von-Karman Main Street LLC, 10681 Production Avenue LLC, and Scuderia Development LLC (together, “Perfectus Defendants”) knowingly made, and caused others to make, false statements on Customs Form 7501 Entry Summaries that were material to obligations to pay duties owed to CBP on extruded aluminum.

The Perfectus Defendants knowingly and improperly avoided antidumping and countervailing duties owed on more than 2.2 million aluminum extrusions in the form of “pallets,” which they misrepresented to CBP as finished merchandise not subject to antidumping and countervailing duties. The pallets were simply aluminum extrusions that were spot-welded together to make them appear to be functional pallets. In fact, there were no customers for these pallets imported by the Defendants between 2011 and 2014, and no pallets were ever sold. On Aug. 23, 2021, a jury in the Central District of California convicted the Perfectus Defendants of Conspiracy to Commit an Offense Against the United States or Defraud the United States, among other things. United States v. Perfectus Aluminum Inc., et al., No. 2:19-cr-00282-GK (C.D. Cal.).

The settlement with the Perfectus Defendants resolves civil lawsuits filed by relators Mike Rapport, Eric Shen, and the Aluminum Extruders Council under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery. The lawsuits were separately filed in the Central District of California and later consolidated under the caption United States ex rel. Rapport v. PengCheng Aluminum Enterprise Inc., et al., No. 5:15-cv-00712 (C.D. Cal.). As part of today’s resolution, the relator share will be 17.5 percent of the settlement proceeds that are returned to CBP.

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from CBP’s Office of Associate Chief Counsel, Los Angeles West Region.

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

The Civil Division coordinated this action through the Department of Justice’s Trade Fraud Task Force, a cross-agency law enforcement effort. The Task Force was created to leverage all of the Department’s tools and authorities to prevent trade fraud that deprives the government of vital revenue, threatens critical domestic industries, undermines consumer confidence, and weakens national security. The Task Force is designed to pursue enforcement actions against parties who seek to evade tariffs and other duties, as well as smugglers who seek to import prohibited goods into the American economy. The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Department’s Corporate Whistleblower Program at [email protected] using the form available here.

Attorneys Jennifer Chorpening and Martha Glover of the Justice Department’s Civil Division, Commercial Litigation Branch, Civil Fraud Section, and Assistant U.S. Attorney Hunter B. Thomson for the Central District of California handled the case.

The mayor of Arcadia, California, has been charged in federal court with acting as an illegal agent of the People’s Republic of China (PRC), the Justice Department announced today.

Eileen Wang, 58, of Arcadia, is charged via information with one count of acting in the United States as an illegal agent of a foreign government.

In a related filing, Wang has agreed to plead guilty to the felony count, which comes with a maximum penalty of 10 years in prison.

She is expected to make her initial appearance this afternoon in U.S. District Court in downtown Los Angeles. Wang is expected to plead guilty in the coming weeks.

Wang was elected in November 2022 to the Arcadia City Council, a five-person governing body from which the mayor is selected on a rotating basis.

“Individuals elected to public office in the United States should act only for the people of the United States that they represent,” said Assistant Attorney General for National Security John A. Eisenberg. “It is deeply concerning that someone who previously received and executed directives from PRC government officials is now in a position of public trust at all, but particularly so because that relationship with that foreign government had never been disclosed.”

“Individuals in our country who covertly do the bidding of foreign governments undermine our democracy,” said First Assistant U.S. Attorney Bill Essayli for the Central District of California. “This plea agreement is the latest success in our determination to defend the homeland against China’s efforts to corrupt our institutions.”

“By her own admission, Eileen Wang secretly served the interests of the Chinese government,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division. “Let this serve as a clear warning: individuals who act on behalf of foreign governments to influence our democracy will be identified, investigated, and brought to justice. Protecting the rule of law and the transparency of our democratic process remains at the core of the FBI’s mission, and we will continue working alongside our partners to safeguard the integrity of our elections and keep hostile actors from undermining the voices of the American people.”

According to her plea agreement, from late 2020 through 2022, Wang and Yaoning “Mike” Sun, 65, of Chino Hills, California, worked at the direction and control of PRC government officials and coordinated with U.S.-based individuals to promote the PRC’s interests by, among other things, promoting pro-PRC propaganda in the United States. Sun is serving a four-year federal prison sentence after he pleaded guilty in October 2025 to acting as an illegal agent of a foreign government.

Wang and Sun worked together to operate U.S. News Center, a website that purported to be a news source for the local Chinese American community. Wang and Sun received and executed directives from PRC government officials to post pro-PRC content on the website.

For example, in June 2021, a PRC official contacted Wang and other individuals via the WeChat encrypted messaging application with pre-written news articles, including a PRC official-written essay in the Los Angeles Times that stated: “China’s Stance on the Xinjiang Issue – There is no genocide in Xinjiang; there is no such thing as ‘forced labor’ in any production activity, including cotton production. Spreading such rumor to do defame China, destroy Xinjiang’s safety and stability, weaken local economy, suppress China’s development[.]”

Minutes later, Wang posted the article on her own website and responded to the PRC official with a link to the article on her website. The others in the group chat did the same. The PRC official responded: “So fast, thank you everyone.”

In August 2021, Wang and three other members of the same group chat shared links to the same article on their respective “news” websites, after which the PRC official thanked them for their “reporting.” At the PRC official’s request, Wang made edits to the article, sent the official a link to the article reflecting the requested change, then sent the official a screenshot showing the article had been viewed 15,128 times. In response, the official messaged, “Great!,” Wang replied, “Thank you leader.”

In November 2021, Wang communicated with John Chen, a high-level member of the PRC intelligence apparatus, who regularly attended elite Chinese Communist Party functions, including military parades, and met personally with PRC President Xi Jinping, according to court documents. Wang asked Chen to post a “news” article from her website, and wrote, “This is what the Ministry of Foreign Affairs wants to send.”

Chen was sentenced in November 2024 to 20 months in federal prison after pleading guilty in the Southern District of New York to acting as an illegal agent of the PRC and conspiracy to bribe a public official.   

Wang admitted in her plea agreement that she did not notify the Attorney General that she was acting in the United States as an agent of the PRC, that she was located in the United States when she engaged in these acts, and that did she not disclose on her website that some of its content had been posted at the direction of members of the PRC government.

The FBI is investigating this matter.

Assistant U.S. Attorney Amanda B. Elbogen for the Central District of California is prosecuting this case, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section in the Department of Justice’s National Security Division. 

LOS ANGELES – The mayor of Arcadia has been charged in federal court with acting as an illegal agent of the People’s Republic of China (PRC), the Justice Department announced today.

Eileen Wang, 56, of Arcadia, is charged via information with one count of acting in the United States as an illegal agent of a foreign government.

In a related filing, Wang has agreed to plead guilty to the felony count, which comes with a statutory maximum sentence of 10 years in federal prison.

She is expected to make her initial appearance this afternoon in United States District Court in downtown Los Angeles. Wang is expected to plead guilty in the coming weeks.

Wang was elected in November 2022 to the Arcadia City Council, a five-person governing body from which the mayor is selected on a rotating basis. 

“Individuals in our country who covertly do the bidding of foreign governments undermine our democracy,” said First Assistant United States Attorney Bill Essayli. “This plea agreement is the latest success in our determination to defend the homeland against China’s efforts to corrupt our institutions.”

“Individuals elected to public office in the United States should act only for the people of the United States that they represent,” said Assistant Attorney General for National Security John A. Eisenberg.  “It is deeply concerning that someone who previously received and executed directives from PRC government officials is now in a position of public trust at all, but particularly so because that relationship with that foreign government had never been disclosed.”

“By her own admission, Eileen Wang secretly served the interests of the Chinese government,” said Assistant Director Roman Rozhavsky of the FBI’s Counterintelligence and Espionage Division. “Let this serve as a clear warning: Individuals who act on behalf of foreign governments to influence our democracy will be identified, investigated, and brought to justice. Protecting the rule of law and the transparency of our democratic process remains at the core of the FBI’s mission, and we will continue working alongside our partners to safeguard the integrity of our elections and keep hostile actors from undermining the voices of the American people.”

"All Americans should be alarmed to learn an elected official was brazenly spreading propaganda on behalf of the Chinese government," said Patrick Grandy, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The FBI is dedicated to rooting out those illegally acting as agents of a foreign government as they do the bidding of America’s adversaries." 

According to her plea agreement, from late 2020 through 2022, Wang and Yaoning “Mike” Sun, 65, of Chino Hills, worked at the direction and control of PRC government officials and coordinated with U.S.-based individuals to promote the PRC’s interests by, among other things, promoting pro-PRC propaganda in the United States.  Sun is serving a four-year federal prison sentence after he pleaded guilty in October 2025 to acting as an illegal agent of a foreign government.

Wang and Sun worked together to operate U.S. News Center, a website that purported to be a news source for the local Chinese American community. Wang and Sun received and executed directives from PRC government officials to post pro-PRC content on the website.

For example, in June 2021, a PRC official contacted Wang and other individuals via the WeChat encrypted messaging application with pre-written news articles, including a PRC official-written essay in the Los Angeles Times that stated: “China’s Stance on the Xinjiang Issue – There is no genocide in Xinjiang; there is no such thing as ‘forced labor’ in any production activity, including cotton production. Spreading such rumor to do defame China, destroy Xinjiang’s safety and stability, weaken local economy, suppress China’s development[.]”

Minutes later, Wang posted the article on her own website and responded to the PRC official with a link to the article on her website. The others in the group chat did the same. The PRC official responded: “So fast, thank you everyone.”

In August 2021, Wang and three other members of the same group chat shared links to the same article on their respective “news” websites, after which the PRC official thanked them for their “reporting.” At the PRC official’s request, Wang made edits to the article, sent the official a link to the article reflecting the requested change, then sent the official a screenshot showing the article had been viewed 15,128 times. In response, the official messaged, “Great!,” Wang replied, “Thank you leader.”

In November 2021, Wang communicated with John Chen, a high-level member of the PRC intelligence apparatus, who regularly attended elite Chinese Communist Party functions, including military parades, and met personally with PRC President Xi Jinping, according to court documents. Wang asked Chen to post a “news” article from her website, and wrote, “This is what the Ministry of Foreign Affairs wants to send.”

Chen was sentenced in November 2024 to 20 months in federal prison after pleading guilty in the Southern District of New York to acting as an illegal agent of the PRC and conspiracy to bribe a public official.  

Wang admitted in her plea agreement that she did not notify the Attorney General that she was acting in the United States as an agent of the PRC, that she was located in the United States when she engaged in these acts, and that did she not disclose on her website that some of its content had been posted at the direction of members of the PRC government.

The FBI is investigating this matter. 

Assistant United States Attorney Amanda B. Elbogen of the National Security Division is prosecuting this case, with assistance from Trial Attorney Garrett Coyle of the Counterintelligence and Export Control Section in the Department of Justice’s National Security Division.

Serrano Kidney & Vascular Access Center, a physician practice based in Huntington Park, California, and physician Dr. Feliciano Serrano have agreed to pay more than $6.73 million to resolve allegations that they violated the False Claims Act by submitting false claims for medically unnecessary vascular interventional procedures on 20 Medicare beneficiaries.

“Physicians should not be performing and billing for unnecessary and excessive medical interventions. False documentation of symptoms compromises the integrity of our federal health care programs and the well-being of beneficiaries,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Physicians who place their own profit over patient needs will be held accountable.”

“False claims to Medicare and Medicaid cause millions of dollars in losses to the government,” said First Assistant U.S. Attorney Bill A. Essayli for the Central District of California. “This settlement sends a clear message to physicians that the United States will zealously pursue appropriate action against those who submit false claims for taxpayer funds.”

The United States alleged that from 2016 to 2024, Dr. Serrano performed medically unnecessary dialysis access interventions, including angioplasty and stent procedures, on 18 patients, purportedly to treat stenosis in patients’ dialysis segments. Dr. Serrano scheduled interventions on a routine basis, without waiting for complications to present, and he frequently repeated procedures on patients every few days or weeks despite that the procedures were not effective and did not result in any clinical benefit.  One Medicare patient received approximately 42 stents in the dialysis segment between 2016 and 2023, including during a period when Dr. Serrano informed the patient he did not need dialysis.

The United States also alleged that from 2019 to 2024, Dr. Serrano performed medically unnecessary peripheral artery disease interventions, including stent and atherectomy procedures, on 17 patients, purportedly to treat stenosis in patients’ legs. Dr. Serrano performed interventions on patients who had only mild or no stenosis and who had only minor symptoms. Although patients complained of pain only in one leg, he performed procedures on both legs and then repeated procedures on both legs every few months. Dr. Serrano told patients that if they did not receive the procedure, their legs would need to be amputated, when, in fact, there was little risk of amputation for mildly symptomatic peripheral artery disease. One Medicare patient received approximately 16 atherectomies in his legs between 2019 and 2023.

The United States alleged that across both categories of procedures, Dr. Serrano performed interventional procedures on vessels that did not qualify for treatment under accepted standards of medical practice; overstated the degree of stenosis to make the procedures appear to meet generally recognized medical standards when, in fact, they did not; falsely documented patient symptoms and conservative therapy measures in medical records to justify the procedures; and performed procedures in excess of accepted standards of medical practice.

As a result of the settlements, Dr. Serrano will pay nearly $6.51 million to the United States and nearly $229,000 to the State of California.

The civil settlement includes the resolution of claims brought by Lincoln Analytics Inc. under the qui tam or whistleblower provisions of the False Claims Act. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Lincoln Analytics Inc. v. Dr. Feliciano Serrano, et al., Civil Action No. 23-cv-04178 (C.D. Cal.). Lincoln Analytics Inc. will receive approximately $976,000 as its share of the federal recovery.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from the Department of Health and Human Services, Office of Inspector General.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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).

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

Trial Attorney Tiffany L. Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Karen Paik for the Central District of California handled this case.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

LOS ANGELES – Eighteen defendants, including two people law enforcement believes are the main sources of fentanyl and methamphetamine in Los Angeles’s gang- and drug-infested MacArthur Park, have been arrested on a federal criminal complaint charging them with a federal drug trafficking offense, the Justice Department announced today.

The complaint charges 25 defendants with possession with the intent to distribute, and distribution of, a controlled substance. 

At one defendant’s Calabasas residence, law enforcement seized approximately 18 kilograms (40 pounds) of fentanyl.

The defendants arrested today are expected to make their initial appearances tomorrow afternoon in United States District Court in downtown Los Angeles. Seven defendants are considered fugitives.

“Today, we begin reclaiming MacArthur Park from criminals and drug addicts to return this public space to the citizens of Los Angeles,” said First Assistant United States Attorney Bill Essayli. “Together with our federal and local law enforcement partners, we are executing multiple arrest and search warrants targeting those who are distributing drugs in and around the park.”

“For far too long, MacArthur Park has been plagued by drug addiction, crime, and despair,” said Anthony Chrysanthis, Special Agent in Charge for the Drug Enforcement Administration’s Los Angeles Field Division. “Today’s operation is only one step, taken by a handful of agencies working hard to alleviate the anguish and sense of hopelessness burdening MacArthur Park, local businesses, and the surrounding neighborhood. While this is a drug enforcement operation, it is also an effort to restore safety and wellness, and to return MacArthur Park back to the community.”

“Today’s operation shows the strength of our partnership with the U.S. Attorney’s Office and the Drug Enforcement Administration,” said Los Angeles Police Chief Jim McDonnell. “We witnessed drug activity return to MacArthur Park, and our teams acted quickly to disrupt both the dealers and the suppliers behind them. Fentanyl remains one of the most dangerous threats to our community, and we are committed to keeping it off our streets. We will remain relentless, alongside our federal partners, in protecting the people of Los Angeles from dangerous drug activity.”     

MacArthur Park, located west of downtown Los Angeles, is an area of the city characterized by high rates of poverty and homelessness. Many of the homeless in that area are drug users, and the park itself is a known location for drug users to purchase narcotics, including fentanyl and methamphetamine. It is surrounded by a densely populated, tightly packed area of apartments, offices, shops and other businesses.

The park and the immediate surrounding area are part of heavily contested gang territory. MacArthur Park’s northern area is considered territory of the 18th Street Gang, while the area of the park south of Wilshire Boulevard is considered territory of the Crazy Riders Gang, and territory considered belonging to Mara Salvatrucha, a.k.a. “MS-13,” is immediately west of the park.

The complaint’s affidavit alleges that Mallaly Moreno-Lopez, 31, and her boyfriend, Jackson Tarfur, 28, both of the Westmont area of South Los Angeles, “serve as the, if not one of the main sources of supply of fentanyl powder and methamphetamine distributed in the Alvarado Corridor and MacArthur Park, generally on behalf of the 18th Street Gang.”

Moreno-Lopez and Tarfur hand-delivered narcotics to the Alvarado Corridor near MacArthur Park for stashing in storefronts and subsequent distribution to street-level drug dealers. Moreno-Lopez and Tarfur use their Westmont residence as a stash location for illegal drugs prior to delivering them to MacArthur Park. 

Law enforcement also identified Yolanda Iriarte-Avila, 40, of Calabasas, as a source of supply of methamphetamine for Moreno-Lopez, via Iriarte-Avila’s boyfriend, Jesus Morales-Landel, 33, of the Exposition Park area of South Los Angeles, who is a street-level drug dealer in the MacArthur Park area. Iriarte-Avila uses her residence as a stash location for subsequent drug distribution.

The complaint affidavit further alleges 27 separate drug deals of fentanyl and methamphetamine from March 9 to April 15 in and around the MacArthur Park area.

A complaint is merely an allegation of criminal conduct, not evidence.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Moreno-Lopez, Tarfur, Iriarte-Avila, and Morales-Landel would face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment. The remaining defendants each would face a statutory maximum sentence of 20 years in federal prison.

This matter is being investigated by the Drug Enforcement Administration Los Angeles Field Division’s Southern California Drug Task Force (SCDTF), a DEA-led multi-agency task force within the Los Angeles High Intensity Drug Trafficking Area (HIDTA) Program, and the Los Angeles Police Department.

Assistant United States Attorneys Lauren E. Border and Joshua J. Lee of the Transnational Organized Crime Section are prosecuting this case.

LOS ANGELES – A Long Beach man who possessed a Molotov cocktail during an anti-immigration enforcement protest in downtown Los Angeles last year was sentenced today to 30 months in federal prison.

Wrackkie Quiogue, 28, was sentenced by United States District Judge Anne Hwang. 

Quiogue pleaded guilty in November 2025 to one count of possession of an unregistered destructive device. He has been in federal custody since June 2025.

In June 2025, federal law enforcement officials began conducting immigration enforcement operations throughout the greater Los Angeles area. During and following those operations, protests occurred in and around Los Angeles County. While many of the protestors peacefully exercised their First Amendment rights, some individuals directly engaged in violent actions to obstruct, impede, or injure law enforcement officers.

One such protest that turned violent occurred on June 8, 2025, in the Civic Center area of downtown Los Angeles. Members of the crowd threw rocks and bottles at law enforcement officials. The Los Angeles Police Department (LAPD) declared an unlawful assembly. 

One police officer witnessed Quiogue possessing a Molotov cocktail. The glass bottle he held contained a flammable liquid (ethanol) and a source of ignition, namely a yellow piece of cloth soaked in ethanol, which acted as a wick. 

Fearing that Quiogue would light the Molotov cocktail and throw it at the officers, police approached Quiogue, causing him to attempt to flee. As the LAPD officers pursued him, Quiogue threw the unlit Molotov cocktail into the air. LAPD officers subdued and arrested Quiogue, who was holding a lighter in his right hand.

Quiogue admitted to knowingly possessing the destructive device and that he had not registered it with the National Firearms Registration and Transfer Record as required by federal law.

“Unlike many of the individuals in the crowd, who were gathered to peacefully exercise their First Amendment rights and protest immigration enforcement operations, [Quiogue] came prepared to instigate violence and inflict harm on the law enforcement officers assigned to protect the Roybal Federal Building,” prosecutors argued in a sentencing memorandum. “[Quiogue]’s premeditated actions endangered the law enforcement officers protecting Roybal Federal Building and the civilians who gathered to peacefully protest.”

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter with the assistance of the Los Angeles Police Department.

Assistant United States Attorney David C. Lachman of the Major Frauds Section prosecuted this case.

LOS ANGELES – The Justice Department’s Civil Rights Division has completed a year-long investigation into the admissions policies and practices at the David Geffen School of Medicine at the University of California at Los Angeles (UCLA).

The Department uncovered evidence that UCLA’s leadership intentionally selected applicants based on their race. Documents reviewed by the Division reveal that UCLA adheres to the dubious contention that patients receive the best care when treated by a doctor of the same race, rather than by the most qualified.

“UCLA’s admissions process has been focused on racial demographics at the expense of merit and excellence — allowing racial politics to distract the school from the vital work of training great doctors.” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Racism in admissions is both illegal and anti-American, and this Department will not allow it to continue.”

“Federal law and the Supreme Court precedent are clear: Race discrimination has no place in our nation’s institutions of higher learning,” said First Assistant United States Attorney Bill Essayli. “The pattern of illegal and odious conduct by UCLA’s medical school is abhorrent to our Constitution and our nation’s founding principles.”

The investigation showed that, on average, admitted black and Hispanic applicants had consistently lower academic qualifications than their white and Asian counterparts. These facts support the Department’s finding that UCLA violated the law by intentionally discriminating based on race in its admissions selections.

Medical schools use substantial federal financial assistance to train the next generation of doctors. The Department is continuing its focus on eradicating illegal race politics from admissions at medical schools, where quality and excellence are vitally important.

The Justice Department’s Civil Rights Division has completed a year-long investigation into the admissions policies and practices at the David Geffen School of Medicine at the University of California at Los Angeles (UCLA).

The Department uncovered evidence that UCLA’s leadership intentionally selected applicants based on their race. Documents reviewed by the Division reveal that UCLA adheres to the dubious contention that patients receive the best care when treated by a doctor of the same race, rather than by the most qualified.

“UCLA’s admissions process has been focused on racial demographics at the expense of merit and excellence — allowing racial politics to distract the school from the vital work of training great doctors.” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Racism in admissions is both illegal and anti-American, and this Department will not allow it to continue.”

“Federal law and the Supreme Court precedent are clear: Race discrimination has no place in our nation’s institutions of higher learning,” said First Assistant United States Attorney Bill Essayli for the Central District of California. “The pattern of illegal and odious conduct by UCLA’s medical school is abhorrent to our Constitution and our nation’s founding principles.”

The investigation showed that, on average, admitted black and Hispanic applicants had consistently lower academic qualifications than their white and Asian counterparts. These facts support the Department’s finding that UCLA violated the law by intentionally discriminating based on race in its admissions selections.

Medical schools use substantial federal financial assistance to train the next generation of doctors. The Department is continuing its focus on eradicating illegal race politics from admissions at medical schools, where quality and excellence are vitally important.

LOS ANGELES – A Huntington Park-based medical practice and its physician have agreed to pay more than $6.73 million to resolve allegations that they violated the False Claims Act by submitting false claims for medically unnecessary vascular interventional procedures on 20 Medicare beneficiaries.

The United States alleged that, from 2016 to 2024, Dr. Feliciano Serrano of Serrano Kidney & Vascular Access Center performed medically unnecessary dialysis access interventions, including angioplasty and stent procedures, on 18 patients, purportedly to treat stenosis in patients’ dialysis segments.

Dr. Serrano scheduled interventions on a routine basis, without waiting for complications to present, and he frequently repeated procedures on patients every few days or weeks despite that the procedures were not effective and did not result in any clinical benefit.  One Medicare patient received approximately 42 stents in the dialysis segment between 2016 and 2023, including during a period when Dr. Serrano informed the patient he did not need dialysis.

The United States also alleged that from 2019 to 2024, Dr. Serrano performed medically unnecessary peripheral artery disease interventions, including stent and atherectomy procedures, on 17 patients, purportedly to treat stenosis in patients’ legs.  Dr. Serrano performed interventions on patients who had only mild or no stenosis and who had only minor symptoms.

Although patients complained of pain only in one leg, he performed procedures on both legs and then repeated procedures on both legs every few months. Dr. Serrano told patients that if they did not receive the procedure, their legs would need to be amputated, when, in fact, there was little risk of amputation for mildly symptomatic peripheral artery disease. One Medicare patient received approximately 16 atherectomies in his legs between 2019 and 2023.

The United States alleged that across both categories of procedures, Dr. Serrano performed interventional procedures on vessels that did not qualify for treatment under accepted standards of medical practice; overstated the degree of stenosis to make the procedures appear to meet generally recognized medical standards when, in fact, they did not; falsely documented patient symptoms and conservative therapy measures in medical records to justify the procedures; and performed procedures in excess of accepted standards of medical practice.

As a result of the settlements, Dr. Serrano will pay nearly $6.51 million to the United States and nearly $229,000 to the State of California.

“False claims to Medicare and Medicaid cause millions of dollars in losses to the government,” said First Assistant United States Attorney Bilal A. Essayli of the Central District of California. “This settlement sends a clear message to physicians that the United States will zealously pursue appropriate action against those who submit false claims for taxpayer funds.”

“Physicians should not be performing and billing for unnecessary and excessive medical interventions.  False documentation of symptoms compromises the integrity of our federal health care programs and the well-being of beneficiaries,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.  “Physicians who place their own profit over patient needs will be held accountable.”

The civil settlement includes the resolution of claims brought by Lincoln Analytics, Inc. under the qui tam or whistleblower provisions of the False Claims Act. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Lincoln Analytics, Inc. v. Dr. Feliciano Serrano, et al., Civil Action No. 23-cv-04178 (C.D. Cal.).  Lincoln Analytics, Inc. will receive approximately $976,000 as its share of the federal recovery.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the United States Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from the Department of Health and Human Services, Office of Inspector General.

The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare 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).

This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules.

The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.

Assistant United States Attorney Karen Y. Paik of the Civil Frauds Section and Justice Department Trial Attorney Tiffany L. Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this case.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

LOS ANGELES – A former account manager at a high-end Beverly Hills business management and tax firm was charged today in an eight-count federal indictment with embezzling more than $2 million from one of the firm’s celebrity clients.

Frank Musoke, 38, formerly of Woodland Hills, is charged with five counts of wire fraud and three counts of tax evasion. 

He is believed to have fled to Uganda, where he has dual citizenship with the United States.   

According to the indictment, Musoke was employed as an account manager at a full-service business management and tax firm identified in court documents as “Company A.” This Beverly Hills-based firm primarily served high-net-worth celebrities in the entertainment industry.

In this role, Musoke was entrusted with managing the complete financial and business affairs of Company A’s elite clientele. His job was to help clients with asset protection, investment strategies, and financial planning to help them preserve and grow their wealth.

The victim, identified in the indictment as “Individual A,” is a well-known television host and producer and had been a Company A client for nearly 20 years. Musoke was Individual A’s account manager and had full access to Individual A’s financial accounts, including control of his debit cards.

From December 2019 to June 2023, Musoke gained unauthorized access to debit cards and the associated personal identification numbers (PINs) connected to Individual A’s business bank account. Without Individual A’s knowledge or consent, Musoke – in breach of his fiduciary duty – fraudulently used Individual A’s debit cards to withdraw approximately $1,733,688 at a bank’s ATMs, spend $165,270 on Amazon purchases, incur $191,543 in personal travel expenses, and spend more than $160,000 on other personal expenses.

In total, Musoke embezzled more than $2 million from Individual A. 

Company A terminated Musoke in July 2023, after the fraud was discovered.

From May 2021 to May 2023, Musoke filed false federal income tax returns in which he failed to report a total of approximately $1,766,367 in income he embezzled through the unauthorized use of debit cards. 

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

If convicted, Musoke would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count and a statutory maximum sentence of five years in federal prison for each tax evasion count.

The FBI and IRS Criminal Investigation are investigating this matter.

Chief Assistant United States Attorney Jennifer L. Waier is prosecuting this case.

A California tax preparer pleaded guilty yesterday to fraudulently including false information on federal income tax returns to get substantial refunds for his clients – and cause large tax losses to the U.S. Treasury – and COVID-19 business-relief loan applications to obtain money he used for unauthorized purposes.

Kerwin Aldric Jordan, 71, of Castaic, California and formerly of Pebble Beach, California, pleaded guilty to four counts of aiding in the preparation of false federal income tax returns and one count of wire fraud.

According to his plea agreement, Jordan was the president of The Jordan Corporation, a tax preparation business, and also owned and operated a business called Jordan and Jordan A Financial Conquest. Jordan held himself out as a tax attorney and certified public accountant, neither of which he was. Jordan prepared federal tax returns for his clients which fraudulently reduced his taxpayer-clients’ taxable income.

Jordan falsely reported that the taxpayer-clients had one or more businesses, even though he knew the businesses did not exist. He also reported losses for these non-existent businesses and used those losses to reduce the taxpayer-clients’ taxable income.

For example, Jordan reduced a married couple’s $2 million income with fraudulent expenses of more than $1 million for non-existent businesses, eliminating additional taxes the couple would have owed and generating a tax refund of almost $25,000. The couple paid Jordan nearly $28,000 for the preparation of their return.

From 2018 to 2023, Jordan filed more than 1,370 federal tax returns for clients, which reported total business losses over $73 million. Prosecutors contend that the tax returns Jordan prepared resulted in more than $25 million in losses to the United States Treasury.

Jordan also lied on loan applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), two programs Congress created in March 2020 to help businesses weather the economic impact of the COVID-19 pandemic.

Jordan applied for PPP loans for his companies and received a total of $188,667. He also applied for EIDL loans for Jordan and Jordan; Euphrates Wealth Asset Management, of which he was the owner; and Lifestyles of the Rich in Faith Church, a non-profit organization of which he was the principal, receiving a total of $276,600. To obtain these loans, Jordan falsely reported that the companies had employees when, in fact, they had none.

U.S. District Judge Stephen V. Wilson for the Central District of California scheduled an Oct. 5 sentencing hearing, at which time Jordan will face a maximum sentence of 32 years in prison.

IRS Criminal Investigation investigated this case.

Assistant U.S. Attorney Ranee A. Katzenstein for the Central District of California and Matthew R. Hoffman of the Justice Department’s Criminal Division, Tax Section, are prosecuting this case.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

LOS ANGELES – A Santa Clarita Valley tax preparer pleaded guilty today to fraudulently including false information on federal income tax returns to get substantial refunds for his clients – and cause large tax losses to the U.S. Treasury – and COVID-19 business-relief loan applications to obtain money he used for unauthorized purposes. 

Kerwin Aldric Jordan, 71, of Castaic and formerly of Pebble Beach, pleaded guilty to four counts of aiding in the preparation of false federal income tax returns and one count of wire fraud.

According to his plea agreement, Jordan was the president of The Jordan Corporation, a tax preparation business, and also owned and operated a business called Jordan and Jordan A Financial Conquest. Jordan held himself out as a tax attorney and certified public accountant, neither of which he was. Jordan prepared federal tax returns for his clients which fraudulently reduced his taxpayer-clients’ taxable income. 

Jordan falsely reported that the taxpayer-clients had one or more businesses, even though he knew the businesses did not exist. He also reported losses for these non-existent businesses and used those losses to reduce the taxpayer-clients’ taxable income.

For example, Jordan reduced a married couple’s $2 million income with fraudulent expenses of more than $1 million for non-existent businesses, eliminating additional taxes the couple would have owed and generating a tax refund of almost $25,000. The couple paid Jordan nearly $28,000 for the preparation of their return.

From 2018 to 2023, Jordan filed more than 1,370 federal tax returns for clients, which reported total business losses over $73 million. Prosecutors contend that the tax returns Jordan prepared resulted in more than $25 million in losses to the United States Treasury.

Jordan also lied on loan applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), two programs Congress created in March 2020 to help businesses weather the economic impact of the COVID-19 pandemic.

Jordan applied for PPP loans for his companies and received a total of $188,667. He also applied for EIDL loans for Jordan and Jordan; Euphrates Wealth Asset Management, of which he was the owner; and Lifestyles of the Rich in Faith Church, a non-profit organization of which he was the principal, receiving a total of $276,600. To obtain these loans, Jordan falsely reported that the companies had employees when, in fact, they had none.

United States District Judge Stephen V. Wilson scheduled an October 5 sentencing hearing, at which time Jordan will face a statutory maximum sentence of 32 years in federal prison.

The IRS Criminal Investigation investigated this case. 

Assistant United States Attorney Ranee A. Katzenstein, Deputy Chief of the Criminal Division, and Matthew R. Hoffman of the Justice Department’s Criminal Division, Tax Section, are prosecuting this case. 

SANTA ANA, California – A San Fernando Valley man was sentenced today to 120 months in federal prison for embezzling approximately $1.8 million from an estate left to an elderly victim by the victim’s late brother.

Jamal Nathan Dawood, 55, a.k.a. “Jimmy Dawood,” of Burbank, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $1,862,352 in restitution and fined him $30,000.

At the conclusion of a seven-day trial in July 2025, a jury found Dawood guilty of six counts of wire fraud and nine counts of money laundering.

During the second half of 2019, Dawood offered to assist the victim with the management of real estate properties and retirement savings that the victim had inherited from the victim’s deceased brother. Specifically, Dawood helped the victim open a trust account at a bank for the purpose of managing the retirement savings.

Without the victim’s knowledge or authorization, Dawood then initiated wire and online banking transfers from the victim’s trust account to Dawood-controlled accounts. Without the victim’s knowledge or permission, Dawood also wired money from the victim’s trust account to people with whom Dawood had personal and business relationships.

Dawood convinced the victim to transfer ownership of his home and his late brother’s real estate holdings to various companies. Dawood falsely represented that the victim would retain an ownership interest in his residence and the inherited real estate through these companies. In fact, Dawood and other individuals close to him controlled these companies.

In total, Dawood fraudulently obtained at least $1,862,352 in the victim’s money and property. The illicitly obtained funds were used to purchase real estate in La Crescenta and Fontana.

The FBI investigated this matter.

Assistant United States Attorneys Kristin N. Spencer and Melissa S. Rabbani of the Orange County Office prosecuted this case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This 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 seven days a week from 3 a.m. to 8 p.m. Pacific Time. English, Spanish, and other languages are available.

Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.