Northern District of California
Press releases recorded for this federal judicial district.
Former Head of Tribal Telecom Company Sentenced to Two Years in Prison for Half-Million Embezzlement from Yurok TribeRead the Press Release
SAN FRANCISCO – Jessica Engle was sentenced today to two years in federal prison for embezzling more than $550,000 in funds of an Indian Tribal Organization. U.S. District Judge Maxine M. Chesney handed down the sentence.
Engle, 43, of Oregon, was indicted by a federal grand jury on September 25, 2024. Engle pleaded guilty on September 3, 2025, to Embezzlement from an Indian Tribal Organization in violation of 18 U.S.C. § 1163. In her plea, Engle admitted to stealing nearly all of the funds held in the account of Yurok Telecommunications Company (“YTC”), a company created at the direction and largely funded by the Yurok Tribe, based in Humboldt and Del Norte Counties. Specifically, Engle admitted to stealing over $550,000 from the YTC bank account between September 2021 and May 2022.
“The tribes deliver critical services—like schools, healthcare, and the basic necessities of life—that their communities need and on which they have come to depend. This theft of tribal funds and the betrayal of trust it represents makes it far more difficult for tribal governments to serve those communities,” said United States Attorney Craig H. Missakian. “The United States made a promise to the many sovereign tribal nations that call the Northern District of California home that we will do all we can to keep them safe and we are committed to working with the tribes to make good on that promise.”
“Embezzling funds meant to support the Yurok Tribe and its essential services is a serious breach of trust,” said FBI Special Agent in Charge Scott Schelble. “The FBI remains committed to working closely with our tribal partners to protect their resources and ensure those who exploit their positions of authority are held accountable. Today’s sentence reflects that commitment and reinforces our ongoing efforts to safeguard tribal communities.”
In handing down the sentence, Judge Chesney stated that the embezzlement was a “calculated risk on [Engle’s] part” and that “[t]his wasn’t a one-time thing.” In addition to the prison term, Judge Chesney also sentenced Engle to a 3-year period of supervised release and ordered restitution of over $590,000. Engle will begin serving the sentence on December 1, 2026.
United States Attorney Craig Missakian and Special Agent in Charge Scott Schelble made the announcement.
The prosecution was handled by the National Security, Cyber & Special Prosecutions and General Crimes Sections of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorney Colin Sampson and former Assistant U.S. Attorney Sophie Cooper prosecuted the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the FBI, with the assistance of the Yurok Tribal Police.
Australian Man Indicted for “TeamPCP” Cyberattacks on Software Supply ChainRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Ruben Ian Thomson on charges of conspiracy to commit Computer Fraud and Abuse Act violations and obtaining information from a protected computer related to cyberattacks conducted in the Spring of 2026 under the moniker “TeamPCP.” Thomson was arrested yesterday by the Australian Federal Police with the assistance of the Federal Bureau of Investigation (FBI), and he is currently in the custody of the Australian authorities.
According to the indictment filed on August 25 and unsealed yesterday, Thomson, 21, a national of Australia and South Africa, is alleged to have conspired with others to exploit trusted software supply chain security tools, and inject malicious software code into these companies’ tools. The exploitation of the computer systems of these companies then cascaded, affecting the companies’ downstream customers that utilized these tools. Specifically, the malicious code would scan downstream customers’ computer environments for sensitive data to steal. If sensitive data was identified, the malicious code attempted to exfiltrate that data to other infrastructure controlled by Thomson and/or his coconspirators. The malicious code also enabled them to maintain persistent access in the company’s computer environment. Following the exfiltration of data from the computer systems of the company, Thomson and/or his coconspirators extorted ransom payments in exchange for a promise to not publicly release the data exfiltrated from the company.
United States Attorney Craig H. Missakian and FBI San Francisco Special Agent-in-Charge Scott Schelble of the FBI’s San Francisco Division made the announcement.
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 5 years in prison and a fine of $250,000, or twice the gross gain or twice the gross loss from the conduct for each violation of 18 U.S.C. § 371 (Conspiracy) and 18 U.S.C. §§ 1030(a)(2)(C), (c)(2)(B), and 2 (Obtaining Information from a Protected Computer; Aiding and Abetting). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The prosecution is being handled by the National Security, Cyber & Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California. Assistant U.S. Attorney Daniel N. Kassabian is prosecuting the case with the assistance of Helen Yee and Kristie Yee. The prosecution is the result of an investigation by the Federal Bureau of Investigation San Francisco and Las Vegas Field Offices.
Surro Connections Owner, Business Manager, and Spouse Charged with Fraud in Collapse of Surrogacy AgencyRead the Press Release
OAKLAND — Megan Hall-Greenberg, 49, and Jeffrery Greenberg, 45, of Washougal, Washington, and Heather Morgan, 47, of Camas, Washington, have been charged by indictment with wire fraud and conspiracy to commit wire fraud, alleged to have conspired to misappropriate millions of dollars of funds from Surro Connections. Hall-Greenberg and Greenberg were also charged with money laundering and conspiracy to commit money laundering.
As part of the scheme, the defendants are alleged to have concealed the misappropriation from Surro Connections’ clients, the intended parents and the surrogates. Surro Connections collected and held funds, often totaling over $100,000 per client, that were pledged to be used to cover the costs of surrogacies, including legal fees, medical costs, compensation to surrogates, travel, and other costs.
Instead, as alleged in the indictment, Hall-Greenberg and Greenberg spent over $1.1 million in misappropriated funds on personal expenses, including gambling debts, cruises, a vacation at an adults-only resort in Mexico, and trips to Las Vegas. In addition, Hall-Greenberg and Greenberg spent over $60,000 on luxury items, including Louis Vuitton purses, Bucherer, Rolex and LVMH watches, diamonds and other jewelry.
“The victims in this case entrusted their hopes and dreams of starting a family—not to mention their hard-earned savings—to these defendants. But instead of the child they dreamed of, they got heartache and disappointment,” said United States Attorney Craig Missakian. “These defendants took advantage of vulnerable families, and they should pay a steep price for their callous and unbridled greed.”
“Families placed extraordinary trust into Surro Connections during one of the most meaningful moments of their lives. The defendants’ alleged actions not only broke that trust—they caused real harm to parents and surrogates who relied on them,” said FBI Special Agent in Charge Scott Schelble. “The FBI is committed to uncovering the truth, protecting victims, and ensuring that those who exploit vulnerable individuals for personal gain are held fully accountable.”
The indictment alleges that for over 19 months, Hall-Greenberg, Greenberg, and Morgan conspired to conceal the misappropriation by falsely representing to clients of Surro Connections that their funds were being held safely in an escrow account, when in fact those accounts had been drained. According to the indictment, defendants Hall-Greenberg and Morgan repeatedly sent “balance statements” to Surro Connections clients that falsely represented that their funds were being held in escrow.
Instead, as alleged in the indictment, the escrow account was essentially empty, and the defendants were attempting to forestall the company’s collapse by using over $4.7 million in high-interest loans, incoming client payments, and credit cards, in an attempt to pay outstanding costs and conceal the misappropriation.
The indictment alleges that on December 5, 2025, Hall-Greenberg sent an email to Surro Connections intended parents, surrogates, and employees that stated the company was ceasing operations immediately and “has no ability to provide any further performance pursuant to any contractual or other Company obligations.”
The defendants are scheduled to make an initial appearance in U.S. district court in Oakland, California, on September 3, 3026 at 10:30 a.m. before the Honorable U.S. Magistrate Judge Ajay S. Krishnan. The case is assigned to the Honorable U.S. District Judge Araceli Martinez-Olguin for further proceedings.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of twenty years in prison for wire fraud and conspiracy to commit wire fraud, and ten years in prison for money laundering and conspiracy to commit money laundering. The defendants also face a fine of up to $250,000, and potential forfeiture and restitution. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys David Ward and Ivana Djak are prosecuting the case with the assistance of Amala James and Jessie Chelsea. The prosecution is the result of an investigation by the FBI.
Tetra Tech EC, Inc. Agrees to Pay $57 Million to Settle False Claims Act Allegations for Falsifying Soil Test Results at the Hunters Point Naval Shipyard in San FranciscoRead the Press Release
SAN FRANCISCO – Tetra Tech EC, Inc. (Tetra Tech), a wholly-owned subsidiary of Tetra Tech, Inc., paid $57 million to resolve False Claims Act allegations that it fabricated work and falsified data the U.S. Department of the Navy relied on to determine whether the former Hunters Point Naval Shipyard (HPNS) in the San Francisco Bay was free from harmful radiation.
In a lawsuit filed in the U.S. District Court for the Northern District of California, the government alleged that, pursuant to contracts issued by the Navy between 2003 and 2014, Tetra Tech was required to investigate the soil and buildings at HPNS and to remediate any areas where radiation was excessive so that the property could be transferred to the City of San Francisco for redevelopment. The government alleged that Tetra Tech instructed field technicians to discard soil samples collected from potentially contaminated locations, replace the discarded samples with “clean” soil known to satisfy the release criteria, and to submit the replaced samples for laboratory analysis. The complaint further alleged that Tetra Tech intentionally manipulated scan results in its database that falsely represented that scans taken at different locations were conducted by the same technician at the same time. The government alleged that Tetra Tech benefited from this misconduct by receiving unearned contract award fees and avoiding obligations to perform additional remediation work, thereby decreasing its costs and increasing its profits.
“Over the past two decades, the federal government has dedicated significant resources to ensuring that the Hunters Point Naval Shipyard is free from harmful radiation and safe for public use. This has been a critical project for the Hunters Point community and the federal government, and it should have been just as important to the contractor that the government selected and paid to perform radiological testing and remediation at the site,” said United States Attorney Craig H. Missakian for the Northern District of California. “This litigation and settlement send a clear message that the government will hold contractors accountable for knowingly defrauding taxpayers by flouting their duties.”
“We expect companies contracting with the government to do business honestly and fairly,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s continuing commitment to hold accountable those who fail to fulfill their responsibilities in providing services to the U.S. military.”
“By falsifying work claims and manipulating critical data, Tetra Tech put its own financial interests ahead of its commitments to the Department of the Navy, potentially placing the health and safety of the American people at risk,” said Acting Special Agent in Charge Brian Merkal of the NCIS Economic Crimes Field Office. “NCIS and our federal partners remain committed to protecting the integrity of the procurement process within the Department of War.”
The settlement resolves allegations filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The consolidated qui tam cases are captioned United States ex rel. Jahr, et al., v. Tetra Tech EC, Inc., Case No. 13-3835 (N.D. Cal.) and were brought by Arthur R. Jahr III, Elbert G. Bowers, Susan V. Andrews, Archie R. Jackson, Anthony Smith, Donald K. Wadsworth, and Robert McLean, former employees and contractors of Tetra Tech. The relators’ share of the settlement is approximately $11,970,000.
The resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office for the Northern District of California and the Justice Department’s Civil Division, Commercial Litigation Branch, Civil Fraud Section, with assistance from the Naval Criminal Investigative Service, Defense Criminal Investigative Service, and the Defense Contract Audit Agency. The Justice Department also expresses its appreciation for the assistance provided by the Department of Navy, the Environmental Protection Agency, and the Nuclear Regulatory Commission.
The matter was handled by Assistant U.S. Attorney Savith Iyengar for the Northern District of California and Civil Division Trial Attorney Jonathan Hoerner.
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 United States also recovered $40 million in a separate settlement under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund, that was entered by the U.S. District Court for the Northern District of California on July 2, 2025.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Tetra Tech EC Inc. Agrees to Pay $57M to Settle False Claims Act Allegations for Falsifying Soil Test Results at the Hunters Point Naval Shipyard in San FranciscoRead the Press Release
Tetra Tech EC Inc. (Tetra Tech), a wholly-owned subsidiary of Tetra Tech, Inc., paid $57 million to resolve False Claims Act allegations that it fabricated work and falsified data the U.S. Department of the Navy relied on to determine whether the former Hunters Point Naval Shipyard (HPNS) in the San Francisco Bay was free from harmful radiation.
In a lawsuit filed in the U.S. District Court for the Northern District of California, the government alleged that, pursuant to contracts issued by the Navy between 2003 and 2014, Tetra Tech was required to investigate the soil and buildings at HPNS and to remediate any areas where radiation was excessive so that the property could be transferred to the City of San Francisco for redevelopment. The government alleged that Tetra Tech instructed field technicians to discard soil samples collected from potentially contaminated locations, replace the discarded samples with “clean” soil known to satisfy the release criteria, and to submit the replaced samples for laboratory analysis. The complaint further alleged that Tetra Tech intentionally manipulated scan results in its database that falsely represented that scans taken at different locations were conducted by the same technician at the same time. The government alleged that Tetra Tech benefited from this misconduct by receiving unearned contract award fees and avoiding obligations to perform additional remediation work, thereby decreasing its costs and increasing its profits.
“We expect companies contracting with the government to do business honestly and fairly,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This settlement demonstrates the Department’s continuing commitment to hold accountable those who fail to fulfill their responsibilities in providing services to the U.S. military.”
“Over the past two decades, the federal government has dedicated significant resources to ensuring that the Hunters Point Naval Shipyard is free from harmful radiation and safe for public use. This has been a critical project for the Hunters Point community and the federal government, and it should have been just as important to the contractor that the government selected and paid to perform radiological testing and remediation at the site,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “This litigation and settlement send a clear message that the government will hold contractors accountable for knowingly defrauding taxpayers by flouting their duties.”
“By falsifying work claims and manipulating critical data, Tetra Tech put its own financial interests ahead of its commitments to the Department of the Navy, potentially placing the health and safety of the American people at risk,” said Acting Special Agent in Charge Brian Merkal of the NCIS Economic Crimes Field Office. “NCIS and our federal partners remain committed to protecting the integrity of the procurement process within the Department of War.”
The settlement resolves allegations filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The Act permits the United States to intervene and take over responsibility for litigating these cases, as the United States did here. The consolidated qui tam cases are captioned United States ex rel. Jahr, et al., v. Tetra Tech EC, Inc., Case No. 13-3835 (N.D. Cal.) and were brought by Arthur R. Jahr III, Elbert G. Bowers, Susan V. Andrews, Archie R. Jackson, Anthony Smith, Donald K. Wadsworth, and Robert McLean, former employees and contractors of Tetra Tech. The relators’ share of the settlement is approximately $11,970,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Civil Fraud Section, and the U.S. Attorney’s Office for the Northern District of California, with assistance from the Naval Criminal Investigative Service, Defense Criminal Investigative Service, and the Defense Contract Audit Agency. The Justice Department also expresses its appreciation for the assistance provided by the Department of Navy, the Environmental Protection Agency, and the Nuclear Regulatory Commission.
The matter was handled by Civil Division Trial Attorney Jonathan Hoerner and Assistant U.S. Attorney Savith Iyengar for the Northern District of California.
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 United States also recovered $40 million in a separate settlement under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as Superfund, that was entered by the U.S. District Court for the Northern District of California on July 2, 2025.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Founder of Cryptocurrency Trading Fund Convicted of Defrauding InvestorsRead the Press Release
SAN FRANCISCO – A federal jury today convicted Japheth Dillman of wire fraud and conspiracy to commit wire fraud in connection with a scheme to defraud investors in a cryptocurrency trading fund. The jury’s verdict follows a 10-day trial before U.S. District Judge Richard Seeborg.
According to court documents and evidence presented at trial, Dillman, 48, of San Francisco, CA, defrauded more than 20 investors out of nearly $1 million through false statements about the trading fund he helped start. At trial, the evidence showed that Dillman and a coconspirator raised funds from investors by misleading them about the capabilities and profitability of Block Bits Capital. From June 2017 to August 2018 Dillman and his associates raised money from investors by claiming the fund would profit from automated cryptocurrency trading by using a software tool called the “Autotrader” that that the firm had developed and was complete and working. In fact, Dillman knew that this automated algorithm was not working and investor funds were not and could not be used as Dillman had promised.
The evidence at trial also showed that Dillman and his co-conspirator used investor money to pay themselves and make risky and speculative investments in other cryptocurrency ventures, while lying to investors about the risky nature of these investments. In fact, these investments resulted in huge losses, and Dillman falsely told investors that Block Bits cryptocurrency trading had led to significant profits when if fact the trading led to more losses of investor funds.
Dillman is currently released on bond. Dillman’s sentencing hearing is scheduled for December 8, 2026, at 9:30 a.m. before U.S. District Judge Seeborg. Defendant faces a maximum statutory penalty of 20 years and a $250,000 fine for each count of conviction in violation of wire fraud, 18 U.S.C. § 1343, and conspiracy to commit wire fraud, 18 U.S.C. § 1349. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Christiaan Highsmith and Charles Bisesto are prosecuting the case with the assistance of Kevin Costello, Lynette Dixon, Andy Ding, and Royce Epperson. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. The U.S. Attorney’s Office appreciates the assistance of the U.S. Securities and Exchange Commission, San Francisco Regional Office.
Alleged Mexico-Based Methamphetamine Trafficker Transported Back to the United States to Face Federal ChargesRead the Press Release
OAKLAND – The government of Mexico recently deported Julio Palafox, a United States citizen, to the United States where he was arrested by the United States Marshals on a warrant to appear on charges stemming from his alleged involvement in the distribution of methamphetamine in the Bay Area. U.S. Marshals Foreign Field Office (FFO) - Guadalajara coordinated the arrest with the Secretaría de Seguridad Pública (SSP) Jalisco and the Instituto Nacional de Migración (INM). Palafox appeared in court today in Oakland before U.S. Magistrate Judge Ajay S. Krishnan.
On July 11, 2024, a federal grand jury indicted Palafox, 34, of Bay Point, CA, in connection with a methamphetamine distribution conspiracy. The indictment charges Palafox with multiple counts of distribution of 500 grams or more of methamphetamine, conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine, and possession with intent to distribute 500 grams or more of methamphetamine in violation of 21 U.S.C. §§ 846, 841(a)(1), (b)(1)(A)(viii). According to court documents, Palafox is a Mexico-based methamphetamine trafficker that during the period of the conspiracy was responsible for hundreds of pounds of methamphetamine entering the Northern District of California.
Palafox has been living in the town of Yahualica in the state of Jalisco, Mexico. Palafox was transported back to the United States on July 24, 2026. He appeared before U.S. Magistrate Judge Anna Y. Park on July 28, 2026, in the Central District of California for an initial appearance and arraignment on the indictment and was ordered detained pending trial. Palafox appeared today before Judge Krishnan for further proceedings in this district and will next appear before the Honorable Araceli Martinez-Olguin on August 17, 2026.
“Julio Palafox’s return to the United States from Mexico sends a clear message to drug traffickers everywhere that they can run, but they cannot hide. This was a complex operation, and we are grateful to the agencies whose hard work led to his capture. We remain firmly committed to protecting our communities from the scourge of illegal drugs and will pursue drug traffickers wherever they may be found,” said U.S. Attorney Craig Missakian.
“The trafficking of methamphetamine in the United States is an ever-present threat to public safety," said HSI San Francisco Special Agent in Charge Jeff Brannigan. “Homeland Security Investigations, as part of the Homeland Security Task Force, will pursue smugglers and traffickers worldwide to protect our communities in the Bay Area and across the country.”
“This investigation is a testament to great teamwork. This coordinated action was a combination of increased focus on enforcement, intelligence, and domestic and international collaboration,” said Bob P. Beris, Special Agent in Charge of the DEA San Francisco Field Division. “DEA is relentless in dismantling criminal operations responsible for trafficking poison in our communities with deadly synthetic drugs like methamphetamine. This is another example of a successful operation resulting in arrests and removal of significant amounts of meth. Every arrest we make represents lives saved and communities defended."
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Defendant faces a maximum sentence of a lifetime of imprisonment, a fine of $10,000,000, a lifetime of supervised release, and a $100 special assessment. However, any sentence following a conviction would be imposed by a court only after considerations of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The 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. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Francisco comprises agents and officers from DEA and HSI, with the prosecution being led by the United States Attorney’s Office for the Northern District of California
Assistant U.S. Attorneys Maya Karwande and Kevin Yeh are prosecuting the case with the assistance of Sara Slattery and Andy Ding. The prosecution is the result of an investigation by DEA and HSI, with assistance from the Contra Costa County Sheriff’s Office and the Salinas Police Department.
Salinas Acosta Plaza Norteño Gang Member Sentenced to Thirty Years in PrisonRead the Press Release
SAN JOSE – Raul Coronel Suarez a/k/a “Ray” was sentenced today to 30 years in federal prison for racketeering conspiracy related to his involvement in the Salinas Acosta Plaza (SAP) Norteño criminal street gang based in Salinas, California. U.S. District Judge Beth Labson Freeman handed down the sentence.
Coronel, 22, of Salinas, California, was indicted by a federal grand jury on April 18, 2024. Coronel pleaded guilty on January 27, 2026, to one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), along with a special sentencing factor that he agreed to conduct the affairs of the enterprise through murder. According to the plea agreement, Coronel admitted to being associated with Norteño criminal street gangs (including SAP) from at least mid-2022 through at least April 2024. Between January 2023 and April 2024, as a member of SAP, Coronel participated in six separate shootings: four as a shooter (resulting in two victims wounded and three victims targeted but missed), and two in a supporting role (resulting in two victims killed and two victims wounded). He also admitted to possessing a firearm, methamphetamine, and cocaine in July 2023.
In addition to the prison term, Judge Freeman sentenced the defendant to a 3-year period of supervised release. The defendant was immediately remanded into custody.
According to the indictment, the SAP Norteños are a street gang that originated in a Salinas apartment complex by the same name. The group is now recognized as a clique within the larger collection of Norteño criminal street gangs. Members of the gang “meet and work together” to carry out crimes for the benefit of the gang, its members, the larger Norteño organization, and the Nuestra Familia prison gang. Crimes are perpetrated by gang members to protect and uphold its power, territory, and profits and gang members are expected to engage in shootings, robberies, drug sales, and other criminal conduct to gain entry into, and improve a member’s status in, the gang. The indictment lists more than four dozen criminal acts that the defendants are alleged to have committed, including murders and attempted murders between July 2014 and April 2024 of perceived rival gang members, transient individuals, and former gang members.
Sixteen other Salinas Acosta Plaza Norteño gang members have been charged in the indictment and subsequent superseding indictment with racketeering conspiracy. Five have pleaded guilty and been sentenced.
DefendantAgeChargeSentenceJose Saldana a/k/a “Chepe”21Racketeering Conspiracy, 18 U.S.C. §1962(d)264 months in prison, 5 years’ supervised releaseSalvador Mexicano a/k/a “Jumpshot”22Racketeering Conspiracy, 18 U.S.C. §1962(d)228 months in prison, 3 years’ supervised releaseRigoberto Ramirez a/k/a “Scooby”38Racketeering Conspiracy, 18 U.S.C. §1962(d)208 months in prison, 3 years’ supervised releaseGil Vasquez a/k/a “Rhino”38Racketeering Conspiracy, 18 U.S.C. §1962(d)72 months in prison, 3 years’ supervised releaseJose Mexicano a/k/a “Armani”27Racketeering Conspiracy, 18 U.S.C. §1962(d)60 months in prison, 3 years’ supervised releaseThe other cases remain pending. An indictment or superseding indictment merely alleges that crimes have been committed, and those remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt.
United States Attorney Craig H. Missakian and Homeland Security Investigations Special Agent in Charge Jeff Brannigan made the announcement.
The case is being prosecuted by the Office’s Organized Crime Section. Assistant U.S. Attorneys George Hageman and Jared Buszin are in charge of the prosecution. The prosecution is the result of an investigation by Homeland Security Investigations, with assistance from the Salinas Police Department and the Monterey County District Attorney’s Office.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime.
Former Williams-Sonoma Executive Pleads Guilty to Fraud and Money Laundering Conspiracies That Caused over $16 Million in LossesRead the Press Release
SAN FRANCISCO – Eric Marsiglia pleaded guilty today in federal court to one count of conspiracy to commit wire fraud, one count of conspiracy to commit wire fraud and honest services wire fraud, and one count of conspiracy to commit money laundering.
In his plea agreement, Marsiglia, 52, of Olive Branch, Mississippi, admitted that from approximately 2018 through 2022, he conspired to defraud Williams-Sonoma, Inc. (WSI). During that time, Marsiglia served as WSI’s Vice President of Engineering, Projects, Planning, Facilities, and Real Estate, with authority to enter vendor contracts and a fiduciary duty to WSI. Marsiglia oversaw the selection and leasing of warehouse space throughout the United States as well as the purchase of steel racking, forklifts, and related warehouse logistics services.
Starting in 2018, Marsiglia accepted kickbacks from co-conspirators in exchange for steering WSI business to three New Jersey companies that supplied forklifts, racking systems, and machinery for warehouses. Marsiglia set up a shell company, REM Group, to receive and conceal the kickbacks. In total, Marsiglia received over $12.2 million in warehouse kickbacks, which he concealed from WSI.
From 2020 through 2022, Marsiglia also conspired to divert real estate broker commissions associated with WSI warehouses. Marsiglia directed these payments to accounts held by REM Group. He then distributed portions of those proceeds to himself and co-conspirators. Marsiglia concealed from WSI that he was causing broker commission payments to be diverted to accounts he controlled, rather than to the firm that was entitled to receive them. This scheme resulted in the misappropriation of over $4.1 million in broker commissions.
Marsiglia further admitted that he conspired to launder proceeds of the wire fraud scheme by conducting financial transactions designed to conceal and disguise the nature, source, ownership, and control of those funds.
A federal grand jury indicted Marsiglia on April 11, 2023, along with Kourosh Mirmehdi, Augusto Alizo, and Michael Podhurst, on charges arising from the kickback scheme and broker commission diversion scheme. Co-conspirator Domenick Nardone was later charged in a superseding indictment on March 12, 2024. All defendants charged in the indictment have pleaded guilty to federal offenses.
United States Attorney Craig H. Missakian and IRS Criminal Investigation San Francisco Field Office Acting Special Agent in Charge David Lowe made the announcement.
Marsiglia is scheduled to be sentenced on November 3, 2026, by U.S. District Judge Richard G. Seeborg. The defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the wire fraud conspiracy counts, in violation of 18 U.S.C. § 1349, and a maximum statutory penalty of 20 years in prison and a $500,000 fine for conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h). However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. Assistant U.S. Attorneys Christiaan Highsmith and Ben Wolinsky are prosecuting the case, with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by IRS-CI.
Concord Man Sentenced to Eighteen Years of Imprisonment for Violent Extortion Scheme and Shooting at Federal OfficersRead the Press Release
OAKLAND – Joel Dowen was sentenced today to eighteen years in federal prison, for engaging in a violent extortion scheme, shooting at a federal officer, drug dealing, and bank fraud. Co-defendant Micah-Luc Almeida was sentenced to three years in federal prison for conspiring to deal drugs with Dowen. United States District Judge Jon S. Tigar handed down the sentence.
Dowen, 46, of Concord, California, and Almeida, 47, of San Francisco, California were indicted in a superseding indictment by a federal grand jury on March 26, 2024. Dowen was charged with mailing threatening communications with intent to extort, in violation of 18 U.S.C. § 376(b) and assault on a federal officer with a deadly weapon, in violation of 18 U.S.C. § 111(b); both Dowen and Almeida were charged with conspiracy to manufacture and distribute MDA; and Almeida was additionally charged with possession with intent to distribute MDA, in violation of 21 U.S.C. §§ 846, 841(a)(1). Dowen was separately charged in 2025 with bank fraud, in violation of 18 U.S.C. § 1344. The defendants pleaded guilty to all counts.
In their plea agreements, Dowen and Almeida admitted that from 2020 to 2024 they conspired to manufacture and distribute large quantities of federally controlled substances, including MDA and psilocin. Dowen and Almeida maintained a drug manufacturing laboratory in Richmond, California, from where law enforcement seized hundreds of kilograms of waste material from attempted drug manufacturing.
Dowen also admitted to engaging in a pattern of threats and violence against a victim and their family to extort the victim for millions of dollars and a drug-manufacturing recipe. Dowen arranged for three individuals to violently assault the victim’s elderly father (then 80 years old) in his home, causing life-threatening injuries. After the assault, Dowen continued to threaten the victim and other members of the victim’s family and set the victim’s home on fire. When law enforcement came to arrest Dowen in 2024, he shot at them with a handgun through the front door as they were breaching the entrance, hitting one DEA agent’s protective shield.
United States Attorney Craig H. Missakian and DEA Special Agent in Charge Bob P. Beris made the announcement.
In addition to the prison term, Judge Tigar sentenced both Dowen and Almeida to a 3-year period of supervised release.
The case is being prosecuted by the Office’s Organized Crime Section. Assistant U.S. Attorney Lina Peng and former Assistant U.S. Attorney Dan Karmel handled the case, with assistance from Legal Administrative Specialist Sara Slattery and Legal Assistant Freya Picciotto. The prosecution is the result of an investigation by the DEA, IRS-CI, ATF, FBI, HSI, and US Postal Inspectors, with the assistance of the Concord Police Department.
Arrests, Seizures, and Federal Firearms Charges Surge in Oakland Through Coordinated Federal-Local Law Enforcement EffortsRead the Press Release
OAKLAND – The U.S. Attorney’s Office and law enforcement partners announced today the results of a surge in federal firearm enforcement measures in Oakland. From March 2026 to July 2026, coordinated federal and local law enforcement efforts resulted in the seizure of 76 illegally possessed firearms. Over the same period, the U.S. Attorney’s Office brought federal criminal charges against 51 defendants.
“The people of Oakland deserve peace in their daily lives. Working with our federal, state, and local partners, we took dozens of dangerous, armed felons off the street and made Oakland a safer place to live,” said United States Attorney Craig H. Missakian. “Rest assured that our work is not done. To the residents of Oakland, San Francisco, San Jose, and the many great cities in Northern California, we will do everything we can to make our communities safer. And to the offenders out there, if you illegally carry a firearm, we will find you and bring you to justice.”
“The violent crime initiative was formed as a collaborative effort to address violent crime and illegal possessors of firearms in Alameda County with a focus on the city of Oakland,” said ATF Special Agent in Charge John Wester. “There were multiple arrests made in connection with this initiative. One case we can highlight is the Oakland nightclub shooting. That shooting resulted in two people being killed. Through this initiative, one of the individuals involved in that shootout, who is also a prohibited person, was charged.”
“Ensuring our community’s safety from gun violence requires collaboration,” said Oakland Police Assistant Chief Casey Johnson. “We appreciate our law enforcement partners for providing the resources and intelligence needed to hold 51 violent offenders accountable and remove illegal firearms from our streets. The Oakland Police Department is grateful for the teamwork that helps protect our residents, businesses, and visitors."
“Federal, state, and local teamwork is the reason this surge delivered results. By working side by side with the Oakland Police Department and our state and federal law enforcement partners, we were able to identify and target the individuals driving gun violence in Oakland” said FBI Special Agent in Charge Scott Schelble. “Together, we helped seize 76 illegally possessed firearms and supported federal charges against 51 defendants during this initiative. Our shared commitment to intelligence driven enforcement and community safety is making a measurable difference. The FBI San Francisco division will continue to stand with our partners to reduce violence and protect the people of Oakland.”
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Examples of recently charged federal firearms cases include:
- Jarvis Toussaint, 40, was charged with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1), for allegedly engaging in a shootout in a crowded downtown Oakland nightclub in the early morning of March 7, 2026, in which two people were killed, including a schoolteacher who was shot as she attempted to run from the gunfire. At least five others also suffered gunshot wounds during the incident. Toussaint was charged by complaint on May 8, 2026, and was indicted on May 14, 2026. Case No. 4:26-CR-235-JSW.
- Brice Burford, 25, was charged by complaint with being a prohibited person (having been convicted of a misdemeanor crime of domestic violence) in possession of a firearm, in violation of 18 U.S.C. § 922(g)(9). At the time of his arrest, Burford was being investigated by Oakland Police Department for his alleged involvement in a robbery on the Oakland Blade where he was suspected of engaging in human trafficking. Burford was charged by complaint on March 31, 2026, and pled guilty on July 9, 2026. Sentencing is set before Judge Gonzalez Rogers on October 1, 2026. Case No. 26-CR-00264-YGR.
- Miguel Martinez, 39, was charged with being a felon in possession of ammunition, in violation of 18 U.S.C. § 922(g)(1). He was charged by indictment on May 7, 2026, and a change of plea hearing is set before Judge Tigar on August 21, 2026. Case No. 26-CR-00223-JST.
- Kawan Hardy, 33, and Jamonn Blincoe, 32, were charged by complaint with being felons in possession of ammunition in violation of 18 U.S.C. § 922(g)(1) for their alleged involvement in a shooting that occurred on January 23, 2026, in a parking lot that is located across the street from two schools in Oakland. On June 12, 2026, Hardy pled guilty and on July 10, 2026, Blincoe pled guilty. Hardy’s sentencing is set before Judge Tigar on September 11, 2026. Blincoe’s sentencing is set before Judge Tigar on October 16, 2026. Case Nos. 26-CR-00271-JST and 26-CR-00270-JST.
The recent increased operations involved coordination among the U.S. Attorney’s Office, ATF, the Oakland Police Department, FBI, DEA, the United States Marshals Service Pacific Southwest Regional Fugitive Task Force, the Oakland Housing Authority, and the California Highway Patrol’s Golden Gate Division. Additional operations are planned in the coming months.
A criminal complaint, information, or indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
South Korean National Pleads Guilty to Million Dollar Bank Fraud Scheme, Illegal Re-Entry, and False Use of PassportRead the Press Release
OAKLAND – Sangsoo Kim pleaded guilty in federal court yesterday to Illegal Re-Entry, False Use of a Passport, Fraudulent Use of One or More Counterfeit Access Devices, and Bank Fraud.
Sangsoo Kim, 56, a national of South Korea was indicted by a federal grand jury on October 16, 2025. Under the plea agreement, Kim pleaded guilty to 4 felony counts.
In pleading guilty, Kim admitted that in 2020, he was convicted of a felony fraud offense and was deported as a result of that conviction. Sometime thereafter, he illegally re-entered the United States. After illegally re-entering the United States, he executed a scheme wherein he used a fraudulent passport to open 72 fraudulent bank accounts at various banks. Beginning no later than November of 2023, Kim executed a check-kiting scheme, where he deposited fraudulent checks into the bank accounts and then quickly withdrew money from the account before the bank became aware the check was fraudulent. Kim admitted he carried out this scheme from at least November of 2023 through at least July of 2025, resulting in a loss amount of $1,195.795.96. As a result of his guilty plea, Kim agreed to forfeit more than $144,000 in cash that was seized in relation to his criminal activity.
Kim is currently in federal custody. Kim’s sentencing hearing is scheduled on October 7, 2026 at 2:00 p.m. before U.S. District Judge Haywood S. Gilliam, Jr. Defendant faces a maximum statutory penalty of 30 years and a $1,000,000 fine for his Bank Fraud conviction; 10 years and a fine of $250,00 for each conviction of Illegal Re-Entry and False Use of a Passport; and 30 years and a fine of $250,000 for his Fraudulent Use of One or More Counterfeit Access Devices conviction. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Emily R. Dahlke is prosecuting the case with the assistance of Jessie Chelsea and Amala James. The prosecution is the result of an investigation by the U.S. Department of State's Diplomatic Security Service and the Federal Bureau of Investigation
Sacramento Resident Pleads Guilty to Bank and Tax Fraud Scheme Involving the Submission of Fraudulent PPP Loan ApplicationsRead the Press Release
OAKLAND – Anthony West pled guilty today to one count of bank fraud and one count of aiding the filing of a false tax return, U.S. Attorney Craig H. Missakian announced.
West, 59, of Sacramento, California, was charged by Information on June 9, 2026, with one count of bank fraud, in violation of 18 U.S.C. § 1344, and one count of aiding the filing of a false tax return, in violation 26 U.S.C. § 7206(2). In pleading guilty to the charges in the Information, West admitted that from April 2020 through February 2021, he submitted multiple false Paycheck Protection Program (PPP) loan applications with various federally insured banks. During the same period, he also submitted multiple false Economic Injury Disaster Loan (EIDL) applications with the U.S. Small Business Administration (SBA). These applications claimed that West owned multiple businesses, including a freight logistics company, car dealership, and multimedia company. In reality, West’s businesses were shell companies with no legitimate employees and no payroll expenses. In total, West attempted to obtain $1,321,279 from his false PPP and EIDL applications and actually obtained $571,179. Upon receiving the loan proceeds, West used the funds for his own personal enrichment and living expenses.
As part of his scheme, West aided the filing of a false tax return that claimed nearly one million dollars in nonexistent revenues. The return was part of an effort by West to make one of his businesses appear to be legitimate to the SBA, even though it had no real business activity, no revenues, and no employees.
United States Attorney Craig H. Missakian and IRS Criminal Investigation (IRS-CI) San Francisco Field Office Acting Special Agent in Charge David Lowe made the announcement.
West’s sentencing hearing is scheduled for December 14, 2026, before United States District Judge Araceli Martínez-Olguín. West faces a maximum statutory penalty of 30 years in prison and a $1,000,000 fine on the bank fraud count and a maximum statutory penalty of three years in prison and a $100,000 fine on the tax fraud count. Any sentence will be imposed by the Court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Abraham Fine is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by IRS-CI.
Houston Pair Admit to Conspiring to Defraud DoorDash by Impersonating Delivery DriversRead the Press Release
OAKLAND – Evan Edwards pleaded guilty in federal court today to conspiracy to commit wire fraud. Her co-defendant, Oluwatobi Otukelu, previously pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit computer fraud and abuse, and was sentenced on June 22, 2026, to 24 months in federal prison for his role in the conspiracies. U.S. District Judge Araceli Martínez-Olguín handed down the sentence.
Edwards, 26 and Otukelu, 26, both of Houston, Texas, were indicted by a federal grand jury on September 17, 2024. Edwards pleaded guilty to one count of violating 18 U.S.C. § 1349 today, and Otukelu pleaded guilty to one count of violating 18 U.S.C. § 1349 and one count of violating 18 U.S.C. § 371 on April 20, 2026.
In pleading guilty, Edwards and Otukelu both admitted to conspiring with each other and other co-conspirators to steal wages from DoorDash contractors known as “Dashers.” Specifically, Edwards and Otukelu admitted that they used the personal identifying information of Dasher victims without authorization to falsely impersonate Dashers to DoorDash support, take over Dashers’ online accounts, create unauthorized accounts, and direct payments of Dasher wages to accounts they controlled. Edwards and Otukelu also admitted to using the stolen funds to pay for goods and services, including vehicles, airline tickets, cosmetic procedures, and personal training.
Otukelu admitted that he and his co-conspirators stole at least $743,235.55 from Dasher victims and attempted to obtain at least an additional $69,276.30. Edwards agreed that she and Otukelu obtained at least $160,115. Both admitted to stealing from at least 138 individual Dasher victims.
Edwards’ sentencing hearing is scheduled for November 9, 2026, at 11:00 a.m. before Judge Martínez-Olguín. She faces a maximum statutory penalty of 20 years of imprisonment and a fine for the violation of 18 U.S.C. § 1349. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Scott Schelble made the announcement.
Assistant U.S. Attorneys Michelle J. Kane and Anupam Dhillon are prosecuting the case with the assistance of Soana Katoa. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Santa Clara Company to Pay Penalty and Boost DEA Compliance Program to Resolve Alleged Controlled Substances Act ViolationsRead the Press Release
SAN FRANCISCO – Santa Clara-based Lin-Zhi International, Inc. (LZI) has agreed to pay a total of $180,835 to the United States and implement an enhanced Drug Enforcement Administration (DEA) compliance program to resolve allegations that LZI, a DEA-registered manufacturer of controlled substances, violated the Controlled Substances Act (CSA) in connection with its manufacturing and distribution of certain controlled substances.
LZI is registered with the DEA to manufacture controlled substances as bulk reagents for drug abuse testing. To the extent registrants like LZI seek to distribute these drug testing kits to facilities not registered with the DEA, the CSA requires them to apply to the DEA for an exemption letter, which DEA then evaluates to determine whether the registrant may receive an exemption.
The United States alleges that LZI failed to obtain exemption letters for the sale of certain chemical preparations or mixtures containing controlled substances listed in any schedule in violation of the Act, as well as certain other violations of the Act, between April 1, 2021, and December 5, 2023.
Under the settlement agreement, LZI will pay $180,835 to the United States. LZI will also maintain an enhanced DEA compliance plan for three years, under which it will (1) hire and retain a DEA Compliance Analyst or other employee of equivalent specialty to implement its enhanced compliance program and advise LZI regarding its DEA compliance obligations and related policies, procedures, and practices, and (2) engage an independent third party with experience in DEA compliance matters to conduct at least one audit annually of LZI’s DEA compliance program, policies, procedures, and practices.
“Entities that fail to comply with the requirements of their DEA registration can expect heightened investigative scrutiny and significant civil penalties,” said United States Attorney Craig H. Missakian. “This Office remains committed to working with the DEA to ensure that registrants who do not comply with the Controlled Substances Act are held accountable.”
“DEA is committed to upholding our regulatory line of defense,” said Bob P. Beris, Special Agent in Charge of the Drug Enforcement Administration, San Francisco Field Division. “When companies fail to secure required exempt chemical letters, they create dangerous vulnerabilities in the supply chain and compromise public health and safety.”
Assistant U.S. Attorney Savith Iyengar handled this matter for the government. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California and DEA Diversion Investigators in San Francisco.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Multinational Software Company Agrees to Pay over Three Million Dollars to Resolve False Claims Act Allegations Involving Paycheck Protection Program LoanRead the Press Release
SAN FRANCISCO – IGEL Technology Corporation, a multinational software company with a North American headquarters in San Francisco, has agreed to pay a total of $3,168,901.75 to settle allegations that it knowingly violated the False Claims Act when it received and retained a Paycheck Protection Program (PPP) loan in violation of PPP rules.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Applicants for a “first-draw” PPP loan were required to certify that they met certain size standards based on, for example, the number of employees that they employed, including in most cases employees of any U.S. and foreign affiliates.
The United States alleged that IGEL’s North American affiliate, claiming to have only 105 employees, applied for and obtained a first-draw PPP loan in June 2020, even though the company was not eligible because it exceeded the size standards when including affiliated entities, including its multinational parent company. According to the United States, despite knowing that it was not eligible for the first-draw loan, IGEL also sought and obtained forgiveness of the loan.
United States Attorney Craig H. Missakian and SBA General Counsel Wendell Davis made the announcement.
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Verity Investigations, LLC. Under those provisions, 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 of America ex rel. Verity Investigations, LLC v. IGEL Technology Corporation, No. 3:25-cv-03290-SK (N.D. Cal.). Verity Investigations, LLC will receive $316,890.17 in connection with the settlement.
Assistant U.S. Attorney Savith Iyengar handled this matter, with assistance from Jacqueline Hollar. The resolution resulted from a coordinated effort between the U.S. Attorney’s Office for the Northern District of California and SBA’s Office of General Counsel.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Multinational Investment Firm Subsidiary Pays $3.5M+ to Settle PPP False Claims Act CaseRead the Press Release
SAN FRANCISCO – SoftBank Robotics America, Inc. (SoftBank Robotics America), a San Francisco-headquartered robotics business within SoftBank Group Corp., a Japanese multinational investment holding company, has agreed to pay a total of $3,637,499.09 to settle allegations that it knowingly violated the False Claims Act when it received and retained a Paycheck Protection Program (PPP) loan in violation of PPP rules.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Applicants for a “first-draw” PPP loan were required to certify that they met certain size standards based on, for example, the number of employees that they employed, including in most cases employees of any U.S. and foreign affiliates.
The United States alleged that SoftBank Robotics America, claiming to have only 16 employees, applied for and obtained a first-draw PPP loan in March 2021, even though the company was not eligible because it exceeded the size standards when including affiliated entities, including its multinational parent company. According to the United States, despite knowing that it was not eligible for the first-draw loan, SoftBank Robotics America also sought and obtained forgiveness of the loan.
United States Attorney Craig H. Missakian and SBA General Counsel Wendell Davis made the announcement.
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Verity Investigations, LLC. Under those provisions, 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 of America ex rel. Verity Investigations, LLC v. SoftBank Robotics America, Inc., No. 3:25-cv-1442-SK (N.D. Cal.). Verity Investigations, LLC will receive $363,749.91 in connection with the settlement.
Assistant U.S. Attorney Savith Iyengar handled this matter. The resolution resulted from a coordinated effort between the U.S. Attorney’s Office for the Northern District of California and SBA’s Office of General Counsel.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Humboldt County Woman Sentenced to 20 Months in Federal Prison After Pleading Guilty to Embezzling over $500,000 from Her Construction Company EmployerRead the Press Release
SAN FRANCISCO – Christina Ann Mobley was sentenced yesterday to 20 months in federal prison after pleading guilty to charges that she defrauded her former employer, a construction company located in Fortuna, California. United States District Judge Charles R. Breyer handed down the sentence.
Mobley, 59, was charged in an indictment filed February 5, 2025, with multiple counts of mail fraud and wire fraud. The indictment alleges that Mobley was employed as the business manager for a Fortuna construction company. When the company’s bookkeeper retired, Mobley took on the accounting and bookkeeping duties. She became essential to the business and was trusted with management of the company’s bank accounts, checks, and payroll systems. The indictment alleges that Mobley used that access to steal over $500,000 from the company.
On December 10, 2025, Mobley pleaded guilty to two counts of mail fraud under 18 U.S.C. § 1341 and two counts of wire fraud under 18 U.S.C. § 1343, based on the various methods she used to defraud her employer. Mobley admitted that she directed checks mailed from the company’s bank account to be applied to the account for her personal credit cards to pay for personal expenses such as cash advances at casinos and personal travel; issued electronic payments of company funds to her personal credit cards; wrote checks from the company to herself, including for the repayment of her car loan; and inflated her vacation time, work hours, and bonuses in the company’s payroll system, resulting in unearned and excessive payments to herself. Between January 2022 and November 2024, Mobley admitted that she embezzled more than $500,000 from her employer.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Scott Schelble made the announcement.
In addition to the prison term, Judge Breyer sentenced Mobley to a three-year period of supervised release and ordered restitution in the amount of $586,000. Mobley was ordered to self-surrender to the Bureau of Prisons in 90 days.
Assistant United States Attorney Kevin Barry is prosecuting the case. The prosecution is the result of an investigation by the FBI.
CEO of Bay Area Home Health Agency Convicted of Health Care Fraud Conspiracy Targeting MedicareRead the Press Release
SAN FRANCISCO – A federal jury yesterday convicted Simon Katz of conspiracy to commit health care fraud in connection with a scheme to submit fraudulent claims to Medicare and falsify medical records. The jury’s verdict follows a six-day trial before U.S. District Judge James Donato.
According to evidence presented at the trial, Katz conspired with his wife, the former CEO of HealthNow Home Healthcare, a home health agency based in Hayward, California, and two former agency employees to commit health care fraud. According to court documents and evidence presented at trial, Katz, 43, currently of Boca Raton, Florida, and his wife, Veronica Katz, agreed to defraud Medicare by having unqualified medical professionals provide care for home health patients outside their authorized scope of practice, billing Medicare for services never provided, submitting false documents to California Department of Public Health (CDPH) inspectors to maintain the ability to bill Medicare, and instructing former employees to lie to the FBI and federal law enforcement to conceal their fraudulent activity.
As part of the conspiracy, from October 1, 2018, when HealthNow began submitting fraudulent documents to deceive CDPH inspectors, through November 2020, HealthNow received more than $3 million in payments based on HealthNow’s claims. Simon Katz in turn received $300,000 from HealthNow during that same time period.
In addition, trial evidence showed Simon Katz took steps to thwart the law enforcement investigation into HealthNow. In October 2019, Simon and Veronica Katz met with one of HealthNow’s former employees, who informed them that FBI agents had questioned her regarding HealthNow’s billing practices and patient medical assessments. Simon Katz instructed the employee to lie to the FBI and falsely state that the employee had been trained and supervised by a registered nurse in the course of conducting patient assessments.
Simon Katz is the fourth defendant convicted in connection with this investigation. Co-defendant Veronica Katz pleaded guilty to health care fraud on April 18, 2024, and was sentenced on December 9, 2024, to two years in prison and ordered to pay restitution of $543,634.34 to Medicare and pay a $50,000 fine. Vennesa Herrera pleaded guilty on Aug. 30, 2021, to conspiracy to commit health care fraud and health care fraud. She is scheduled for a status hearing on August 3, 2026. Pharadja Andrews pleaded guilty on August 30, 2021 to conspiracy to commit health care fraud. She is scheduled for a status hearing on August 3, 2026.
“Simon Katz and his wife defrauded Medicare by altering medical records and forging doctor signatures, and in the process stole millions from the hardworking American taxpayer,” said United States Attorney Craig H. Missakian. “As part of the Administration’s War on Fraud, we will continue our unrelenting efforts to investigate and prosecute anyone who steals from the public and we hope this verdict sends a strong message that this conduct will not be tolerated.”
“This verdict underscores the FBI’s commitment to protecting the integrity of federal health care programs and the patients who rely on them,” said Special Agent in Charge Scott Schelble of the FBI San Francisco Field Office. “Katz and his co conspirators orchestrated a deliberate scheme that put vulnerable patients at risk and stole from Medicare. We will continue working with our partners to ensure those who defraud our health care system are held accountable.”
“Successfully uncovering and prosecuting complex health care fraud schemes like this one requires years of determined investigative work and close coordination among federal and state partners,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG) San Francisco Regional Office. “This verdict reflects the steadfast efforts of HHS OIG and our law enforcement partners. HHS OIG will continue collaborating with our partners to protect Medicare and uphold the integrity of the programs and patients we are entrusted to serve.”
Katz is currently in federal custody. His sentencing hearing has not been scheduled. Katz faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Chris Highsmith and Kevin Yeh are prosecuting the case with the assistance of Kevin Costello and Lynette Dixon. The prosecution is the result of an investigation by the FBI, HHS-OIG, and the California Department of Public Health.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is 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.
Armed Honduran National Who Sold Drugs in East Oakland and the Tenderloin Sentenced to Sixteen Years in PrisonRead the Press Release
OAKLAND – Maxfer Palma was sentenced Friday to 192 months in federal prison for one count each of possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine on premises where children were present or resided, and possession of a firearm in furtherance of a drug trafficking crime. U.S. District Judge Jon S. Tigar handed down the sentence.
Palma, 30, a national of Honduras, was indicted by a federal grand jury on June 20, 2023. On March 2, 2026, a jury found Palma guilty of the drug trafficking and firearms offenses for which he was sentenced. According to court documents and evidence presented at trial, Palma possessed more than 2 kilograms of methamphetamine, more than 200 grams of a mixture containing fentanyl, other various controlled substances, a firearm, and ammunition. These items were found on April 11, 2023, when Oakland police searched Palma’s residence, where multiple children including two minors who appeared to be under the age of 10, were present.
Oakland Police Department officers searched Palma’s residence on April 11, 2023, after he was identified as a suspect in a violent home invasion in which multiple masked individuals forced their way into an Oakland residence and pistol-whipped two victims. A search of Palma’s cell phone and social media account uncovered evidence implicating Palma in the pistol-whipping. That evidence also showed Palma had been dealing drugs in Oakland and the Tenderloin of San Francisco for at least seven months prior to his arrest by federal law enforcement.
United States Attorney Craig H. Missakian and DEA Special Agent in Charge Bob P. Beris made the announcement.
In addition to the prison term, Judge Tigar also sentenced the defendant to a five-year period of supervised release. The defendant was immediately remanded into custody.
Assistant U.S. Attorneys Jared Buszin and Emily Dahlke prosecuted the case with the assistance of Kevin Costello. The prosecution is the result of an investigation by the DEA, the Oakland Police Department, and the San Francisco Police Department.
Oakland Man Pleads Guilty to Conspiracy to Commit Human Trafficking on the Oakland BladeRead the Press Release
OAKLAND — Michael Simon, 37, of Oakland, pleaded guilty in federal court today to Conspiracy to Commit Human Trafficking by Force, Fraud, or Coercion.
Simon was charged by Information on May 26, 2026, with one count of Conspiracy to Commit Human Trafficking by Force, Fraud, or Coercion.
In pleading guilty, Simon admitted to engaging in a conspiracy to commit human trafficking on the Oakland Blade and other locations between June 2023 and September 2025. Simon conspired with others to recruit, entice, harbor, maintain, obtain, transport, provide, and advertise Victim 1 and Victim 2, and other victims, knowing that force, threats, fraud, or coercion would be used to cause them to engage in commercial sex acts.
Simon agreed that Victim 1 and Victim 2, and other victims, would be advertised online and that they would solicit customers for commercial sex acts and that individuals would pay to have sex with them. Simon and his co-conspirators booked and used hotel rooms in Oakland to harbor and maintain the victims. The hotel rooms were to be used for commercial sex acts.
Simon and his co-conspirators used cellular telephones to field phone calls from prospective clients, identify prospective clients for commercial sex acts, and to communicate with the victims about their commercial sex work. Simon instructed Victim 1 and Victim 2 via text message to engage in prostitution. He instructed them to go to specific hotel rooms to engage in commercial sex acts and he instructed them to post online advertisements for commercial sex services.
The victims were not allowed to keep the money paid to them for commercial sex. The victims were expected to engage in commercial sex work when they were told, and did not have any say in their hours, their fees, or the location in which they were to perform commercial sex acts. When a victim refused to engage in commercial sex work as instructed or failed to hand over money received for sex work, Simon would physically punish them for non-compliance by physically assaulting them, including by hitting them in their head and face.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Scott Schelble made the announcement.
Simon’s sentencing hearing is scheduled for October 1, 2026, before U.S. District Judge Yvonne Gonzalez Rogers. He faces a maximum statutory penalty of life imprisonment and a $250,000 fine in violation of 18 U.S.C. § 1594(c). Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Ivana Djak is prosecuting the case with the assistance of Amala James and Jessie Chelsea. The prosecution is the result of an investigation by the FBI and the Oakland Police Department.
Graduate Student Arrested for Hateful and Threatening Message at San Jose State UniversityRead the Press Release
The Justice Department announced today that Ziheng “Tony” Fang was arrested on a federal charge of false information and hoaxes. Fang made an initial appearance on July 10, in federal court in San Jose, California.
According to the allegations in a criminal complaint and court documents filed on July 9, Fang, 30, of San Jose, California, wrote a hateful and threatening message placed in a plastic cover sheet taped to the bathroom wall of a men’s restroom on the campus of San Jose State University (SJSU). Fang is a graduate student at SJSU, pursuing his Master’s Degree in Data Science.
The message was discovered on Nov. 5, 2025, and began with “!WARNING! MASS BOMB NEXT WEEK,” among other statements, accompanied by multiple swastika symbols. A photograph of this message is below:
Photograph of the message discovered on Nov. 5, 2025Fang’s fingerprint was found on this paper. A second message was also discovered on the wall of the same bathroom at the same time. It read “Kill all Jews, Muslims, Chinks, and Mexicans,” “Mass bombing 11/11 and 11/12 guess.”
As alleged in the complaint, since October 2024, SJSU Police Department personnel have recorded more than 20 instances of hateful and threatening messages written in men’s and gender-neutral restrooms around the SJSU campus. In many instances, these messages included threats specifying a particular date that an attack was allegedly intended to take place and/or weapons and methods that would be used such as bombs, knives, and shooting. The most recent hateful and threatening message was discovered on May 14.
Fang accessed buildings in the days leading up to the discovery of hateful and threatening messages in 16 of the 18 instances where key card access is required, according to the complaint. The next closest number of entries was from a SJSU staff member who worked with facilities and had a reason to be in each building. Surveillance footage also shows Fang entering and exiting the restrooms or restroom areas where some of the messages were written up to a day before their discovery.
According to the complaint, the SJSU President’s Office provided several email/text message alerts to notify students and staff before dates that attacks were allegedly set to take place. When alerts were issued, SJSU professors independently decided whether to cancel class or hold it virtually. University police and the college administration received multiple calls from people worried about coming onto campus because of the threats. Campus buildings on the dates specified in the messages were described as “ghost town,” as described in the complaint.
U.S. Attorney Craig H. Missakian for the Northern District of California, Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division, and Special Agent in Charge Scott Schelble of the FBI San Francisco Field Office made the announcement.
Fang is currently in federal custody. Fang is next scheduled to appear in federal court on July 13 for identification of counsel before Chief Magistrate Judge Nathanael Cousins.
Assistant U.S. Attorney Sarah E. Griswold for the Northern District of California is prosecuting the case with the assistance of Trial Attorney Connor Cheadle of the Justice Department’s Civil Rights Division. The prosecution is the result of an investigation by the FBI, with the assistance of the San Jose State University Police Department.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Graduate Student Arrested for Hateful and Threatening Message at San Jose State UniversityRead the Press Release
SAN JOSE – The Justice Department announced today that Ziheng “Tony” Fang was arrested on a federal charge of false information and hoaxes. Fang made an initial appearance on July 10, 2026 in federal court in San Jose.
According to the allegations in a criminal complaint and court documents filed on July 9, 2026, Fang, 30, of San Jose, wrote a hateful and threatening message placed in a plastic cover sheet taped to the bathroom wall of a men’s restroom on the campus of San Jose State University (SJSU). Fang is a graduate student at SJSU, pursuing his Master’s Degree in Data Science.
The message was discovered on November 5, 2025, and began with “!WARNING! MASS BOMB NEXT WEEK,” among other statements, accompanied by multiple swastika symbols. A photograph of this message is below:
Fang’s fingerprint was found on this paper. A second message was also discovered on the wall of the same bathroom at the same time. It read “Kill all Jews, Muslims, Chinks, and Mexicans,” “Mass bombing 11/11 and 11/12 guess.”
As alleged in the complaint, since October 2024, SJSU Police Department personnel have recorded more than 20 instances of hateful and threatening messages written in men’s and gender-neutral restrooms around the SJSU campus. In many instances, these messages included threats specifying a particular date that an attack was allegedly intended to take place and/or weapons and methods that would be used such as bombs, knives, and shooting. The most recent hateful and threatening message was discovered on May 14, 2026.
Fang accessed buildings in the days leading up to the discovery of hateful and threatening messages in 16 of the 18 instances where key card access is required, according to the complaint. The next closest number of entries was from a SJSU staff member who worked with facilities and had a reason to be in each building. Surveillance footage also shows FANG entering and exiting the restrooms or restroom areas where some of the messages were written up to a day before their discovery.
According to the complaint, the SJSU President’s Office provided several email/text message alerts to notify students and staff before dates that attacks were allegedly set to take place. When alerts were issued, SJSU professors independently decided whether to cancel class or hold it virtually. University police and the college administration received multiple calls from people worried about coming onto campus because of the threats. Campus buildings on the dates specified in the messages were described as “ghost town,” as described in the complaint.
United States Attorney Craig H. Missakian, Assistant Attorney General Harmeet K. Dhillon, and FBI Special Agent in Charge Scott Schelble made the announcement.
Fang is currently in federal custody. Fang is next scheduled to appear in federal court on July 13, 2026 for identification of counsel before Chief Magistrate Judge Nathanael Cousins.
A criminal complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Sarah E. Griswold of the U.S. Attorney’s Office for the Northern District of California is prosecuting the case with the assistance of Trial Attorney Connor Cheadle of the Civil Rights Division. The prosecution is the result of an investigation by the FBI, with the assistance of the San Jose State University Police Department.
Founder/CEO and Clinical President of Digital Health Company Sentenced to 72 Months and 24 Months, Respectively, for $90 Million Scheme to Distribute over 37 Million Pills of AdderallRead the Press Release
The founder and former Chief Executive Officer (CEO) Ruthia He of Done Global Inc., a California-based digital mental health company, was sentenced today to six years in prison and a fine of $1 million for orchestrating a scheme that used her company’s technology platform, compensation structure, and clinical protocols to unlawfully distribute over 37 million pills of Adderall, defraud insurers of over $12 million, and obstruct the federal investigation that followed. The defendant spent over $40 million on social media advertisements to deceive Americans into believing they had attention deficit hyperactivity disorder (ADHD), falsely diagnosing patients with ADHD, and distributing Adderall, including to patients who the company was warned were suffering from Adderall psychosis, bipolar, depression, anxiety, and other mental health conditions that were worsened by stimulant prescriptions. The goal of the conspiracy was to obtain an over $1 billion valuation by fueling user growth through a subscription for prescription business model whereby patients paid a monthly fee for prescriptions that were automatically refilled and obtained through a frictionless technology platform. Co-defendant David Brody, Done’s former clinical president, was separately sentenced to two years in prison a fine of $1 million.
“Ruthia He hid behind the cloak of medicine to deceive the public, defraud health care programs, and unlawfully deal highly addictive drugs to vulnerable patients,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Ruthia He’s business model cast aside medical necessity and patient care in favor of profit and greed. Today’s sentence is a clear warning to every digital health boardroom: if you build fraud or illegal drug distribution into your growth model, the Department of Justice will find you and bring you to justice.”
“Drug traffickers are driven by profits, not people,” said U.S. Attorney Craig Missakian for the Northern District of California. “Whether they operate from a street corner or from a computer, the motive and the resulting harm are the same. These defendants made a choice to operate a telehealth platform that ignored medical necessity and as a result put patients at risk. Today’s sentences send an important message: Telehealth companies prescribing controlled substances must follow medical standards, prioritize patient safety, and comply with the law, and those who do not will be held responsible.”
“Today’s sentencing reflects the serious consequences of abusing the public’s trust and corrupting the nation’s controlled substance system for personal profit,” said DEA Administrator Terrance Cole. “The defendants used the convenience of telemedicine to facilitate the unlawful distribution of highly addictive stimulants, placing communities at risk and undermining legitimate patient care. Whether the scheme operates on a street corner or behind a computer screen, DEA and our partners will continue to pursue and bring to justice those who traffic in prescription drugs for criminal gain.”
“Today’s sentencing makes clear that people who use technology as a cover to push dangerous drugs and exploit federal health care programs will pay a heavy price,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of HHS‑OIG. “These defendants harmed patients, undermined clinicians, and stole taxpayer dollars. High‑tech fraud schemes are still just fraud, and HHS‑OIG will continue to work with our partners to pursue justice for victims and hold fraudsters accountable.”
According to court documents, defendants used a technology platform, management incentives, and clinical protocols that were designed together to corrupt medical decision-making at a national scale. Defendants sought to build a billion-dollar technology company and raise money from investors by advertising easy access to Adderall and other stimulants in exchange for payment of a monthly subscription fee:
Done Health adertisement.Other ads deceived Americans who suffered from other mental health conditions — or simply from inattentiveness due to aging or a lack of structure due to work-from-home policies — into thinking that they were suffering from ADHD, and that Adderall was the solution to their problems.
“When fraudsters steal from Medicare and Medicaid, they’re also stealing from the elderly, disabled, and low-income Americans who depend on these programs and from the taxpayers who fund them,” said Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz. “But it’s never just about the money. The evidence prosecutors assembled in this case confirms what we’ve seen countless times before: that scammers who are willing to steal your money don’t mind stealing your health or even your life. CMS is proud to work alongside the Justice Department and the White House Task Force to Eliminate Fraud to put criminals like He and Brody behind bars, where they can’t steal from hardworking taxpayers or harm vulnerable Americans anymore.”
Evidence at trial showed that the defendants used a combination of carrots and sticks to cause unnecessary prescriptions. The defendants refused to hire or fired Done clinicians who did not participate in the conspiracy, while paying up to $60,000 per month to clinicians who signed Adderall prescriptions every 30 seconds. The defendants pressured clinicians to diagnose ADHD in initial visits capped at half the length of a typical examination and pressured them to prescribe stimulants to patients who the clinicians did not believe had ADHD or who were at risk for serious side effects. The defendants also used an “auto-refill” platform technology feature after an initial diagnosis to minimize follow-up appointments, where prescribers signed prescriptions for Adderall based on an automatically generated message that a patient desired a refill. Because of these policies, some patients went years without seeing clinicians, who continually authorized refills even through involuntary psychiatric holds or after the patients had died. Brody himself personally wrote prescriptions for 394,324 Schedule II stimulant pills prescribed to 6,559 Done members who were complete strangers to him: he never evaluated them or even reviewed a single patient record. Brody even admitted that “it only [took him] 30 seconds per refill” prescription because he never checked patients’ medical records. As he told defendant He, his dream job at Done would allow him to make money “WITHOUT EVER HAVING TO SEE OR TALK TO THE PATIENT[s].”
“Homeland Security Investigations is committed to protecting American communities from the devastating impact of prescription drug abuse and corporate fraud,” said Acting Executive Associate Director John A. Condon of Homeland Security Investigations (HSI). “These defendants deliberately corrupted medical decision-making and flooded communities with over 40 million pills of Adderall, fueling addiction and worsening the prescription epidemic across the United States. “Their actions put vulnerable patients — including children — at risk. They ignored repeated warnings from clinicians and families, and prioritized profit over safety and health. This case demonstrates the critical role HSI plays in investigating and dismantling complex criminal enterprises that exploit technology and the health care system for profit. HSI remains steadfast in our mission to protect the public and ensure that those who endanger lives for personal gain face the full consequences of their actions.”
The evidence at trial showed that defendants were repeatedly warned by clinical leaders that they would face “legal consequences” for furthering illegal prescriptions, but they nevertheless persisted. He told providers and employees who raised concerns that she would buy an expensive luxury car for the “first person to get arrested.” Defendants also prohibited independent clinical practitioners from discharging patients, and patients continued to receive Adderall even after concerned family members repeatedly notified Done that their children were suffering from bipolar, Adderall-induced psychosis, or other mental health conditions that could be worsened by continued prescriptions. Three mothers testified at trial about their desperate efforts to warn Done that it should not be prescribing to their children, which Done ignored.
“When people put profit above the safety and well-being of others, they undermine trust in the systems we all rely on,” said Special Agent in Charge Harry T. Chavis, Jr. of IRS-CI New York. “IRS-CI special agents are specially equipped to trace the complex financial trails left behind by those seeking to enrich themselves at the expense of patient care and public safety. We stand up for victims and remain vigilant, holding individuals accountable for brazen schemes that put lives at risk.”
Brody encouraged Done’s practitioners to disregard the widely accepted DSM-V criteria. Indeed, Brody described these addictive substances to Done employees as candy that Done providers handed out like Santa Claus. Brody acknowledged that Done’s practices were “on the edge” of the law, remarking that people who were “really into the law” were not his cup of tea. When one prescriber expressed concerns about the legality of Done’s prescribing practices, defendant Brody said that she should prescribe stimulants to patients “no matter what and not worry about going to jail.”
In order to ensure that members continued paying monthly subscription fees, He, Brody, and others conspired to defraud insurers so that Done members would be able to use insurance to pay for Adderall dispensed at pharmacies. He, Brody, and others submitted false and fraudulent prior authorization requests to insurers, which claimed that Done followed the DSM-5 in diagnosing ADHD, utilized urine drug screens, and falsely claimed that non-stimulants had previously been tried without success. As a result, Medicare, Medicaid, and the commercial insurers paid in excess of approximately $12.3 million.
In 2022, faced with scrutiny from the media, He and Brody lied about Done’s policies. When national pharmacy chains began blocking Done prescriptions due to safety concerns, the defendants falsely claimed to have robust compliance measures to ensure the pills kept flowing. Internal documents showed that defendant He ultimately created a secondary entity, Mindful Mental Wellness, specifically to bypass pharmacy blocks and continue dispensing stimulants.
The Health Care Fraud Unit’s investigation reached beyond the individual clinicians writing the prescriptions to examine how corporate decisionmakers controlled its operations. To obstruct the government’s investigation, the evidence at trial showed that He moved operations to China to make personnel and evidence unavailable. After receipt of the grand jury subpoena issued to Done, He instructed Done employees to move to encrypted messaging applications, such as Signal and WhatsApp, to discuss sensitive company business, instead of using official company platforms that were being collected by Done’s attorneys for production to the government. He also turned on “disappearing messages” in her communications with Done colleagues, rendering it impossible to obtain such messages. He also personally deleted and directed employees to delete incriminatory documents and messages from the company servers. As the investigation closed in, He continued to move assets and company operations abroad. She researched non-extradition countries on her MacBook and saved a screenshot of the results:
Image of He's search for non-extradition countries. Chart of Done Global Advertising-Related Payments to China. Notification of He turning on disappearing messages.In Feb. 2023, agents intercepted He on her way to the airport, bound for a flight to Hong Kong. She surrendered her passport and was warned that leaving the country would result in arrest. Four months later, however, she secretly obtained a Chinese travel document that would allow her to travel to China — a fact she concealed from the court and law enforcement following her arrest and that ultimately led to her pretrial detention due to her risk of flight. He also set up a shell company — MakeBelieve Asia — and transferred millions of dollars to China.
In Nov. 2025, He and Brody were both convicted of one count of conspiracy to distribute controlled substances, four counts of distribution of controlled substances, and one count of conspiracy to commit health care fraud. He was also convicted of one count of conspiracy to obstruct justice.
The DEA, HHS-OIG, HSI, and IRS Criminal Investigation investigated the case.
Acting Health Care Fraud Unit Chief Jacob Foster, Assistant Chief Emily Gurskis, and Trial Attorneys Arun Bodapati and Raymond Beckering III of the Justice Department’s Health Care Fraud Unit and Assistant U.S. Attorney Kristina Green for the Northern District of California prosecuted the case. The sentence is the first sentence announced since the creation of the West Coast Strike Force in the Northern District of California, District of Arizona, and District of Nevada.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Since its inception in March 2007, the 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.
Concord Resident Sentenced to 21 Months in Federal Prison After Pleading Guilty in Million-Dollar Fraud Scheme Involving the Sale of Counterfeit Sports MemorabiliaRead the Press Release
OAKLAND – Daniel Damato was sentenced today to 21 months in federal prison for his role in a wire fraud scheme in which he knowingly sold counterfeit sports memorabilia and attempted to obstruct the FBI’s investigation into his criminal conduct. United States District Judge Araceli Martínez-Olguín handed down the sentence.
Damato, 40, of Concord, California, was charged by Information on October 20, 2025, with one count of wire fraud. The Information alleged that between 2022 and 2024, Damato, a sports memorabilia dealer, doctored and gave false provenance to valuable items to make them appear as authentic and legitimate sports collectables. Damato then attempted to sell these items to unsuspecting buyers at heavily inflated prices.
The Information specifically described two sports memorabilia items Damato fraudulently marketed and sold—a baseball bat he represented was a 1954 game-used World Series bat and a jersey he asserted was a 1972 game-worn jersey. Damato claimed that the bat was used and the jersey was worn by Willie Mays, described as one of the greatest baseball players who ever lived, according to the Information
On December 8, 2025, Damato pled guilty to the wire fraud count charged in the Information. In connection with his plea, Damato admitted that despite his assertions to the contrary, the bat he sold for $100,000 to one victim had not been used in the 1954 World Series by Mays. Rather, Damato admitted that the bat was a “factory error” bat that was an inch shorter than what Mays used during his career. Damato further admitted that he sold other fraudulent items, including a jersey he falsely claimed was worn by Mays that he sold for $50,000 to a second victim. In addition, the Court found that Damato defrauded a third victim in connection with his sports memorabilia scheme, determining that Damato stole over $900,000 from that victim while falsely promising to deliver sports memorabilia.
In addition to his fraudulent conduct, Damato admitted in his plea agreement that after the FBI executed a search warrant on his residence, he contacted at least one potential witness in an attempt to obstruct the government’s investigation.
United States Attorney Craig H. Missakian and FBI Special Agent in Charge Scott Schelble made the announcement.
In addition to the prison term, Judge Martínez-Olguín sentenced Damato to a three-year period of supervised release and ordered restitution in the amount of $1,068,940. Damato had previously been remanded into custody and will begin serving his sentence immediately.
Assistant United States Attorney Abraham Fine is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by the FBI.
Felon Unlawfully in the Country Sentenced to 48 Months in Prison for Dealing Methamphetamine While in Possession of Loaded Handgun and ShotgunRead the Press Release
SAN FRANCISCO – Javier Velasquez Antunes was sentenced yesterday to 48 months in federal prison for dealing methamphetamine while illegally possessing a loaded handgun and shotgun. U.S. District Judge Vince Chhabria handed down the sentence.
Antunes, 50, a national of Mexico, was indicted by a federal grand jury on November 12, 2025. He pleaded guilty on March 10, 2026, to Distribution and Possession with Intent to Distribute a Mixture and Substance Containing Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(C) and Felon in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g)(1).
According to the plea agreement, Antunes admitted that on July 10, 2025, he and two others dealt methamphetamine in the Mission District of San Francisco. Officers from the San Francisco Police Department (“SFPD”) observed Antunes sell approximately one gram of methamphetamine from a car parked on Mission Street, before apprehending Antunes, two accomplices, and the buyer. All told, the four men had at least twelve grams net weight of methamphetamine between them. SFPD then searched the car in which Antunes was sitting and found a loaded nine-millimeter handgun directly at the base of his seat as well as a loaded twelve-gauge shotgun bearing his DNA in a violin case in the back seat.
Police also recovered various rifle and shotgun ammunition from the car. Antunes had previously been convicted of Possession of a Controlled Substance While Armed and Felon in Possession of a Firearm in state court.
United States Attorney Craig H. Missakian, Drug Enforcement Administration (“DEA”) Special Agent in Charge Bob P. Beris, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Special Agent in Charge John Wester made the announcement.
In addition to the prison term, Judge Chhabria also sentenced the defendant to a three-year period of supervised release and ordered that he forfeit money, a cellular phone, and the firearms and ammunition. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Eli J. Cohen prosecuted the case with the assistance of Soana Katoa. The prosecution is the result of an investigation by the DEA, with the assistance of the ATF and the San Francisco Police Department.
Justice Department Seizes Backend Infrastructure Used by the Huione Group for Money Laundering ServicesRead the Press Release
Today, the Justice Department announced the seizure of a cloud computing account used by subsidiaries of the Huione Group, a Cambodia-based corporate conglomerate. These subsidiaries are alleged to have assisted individuals and organizations in transferring proceeds of cryptocurrency investment frauds, cyber scams, and other criminal activities on cryptocurrency blockchains and allowing for the conversion of the proceeds of these schemes to the legitimate banking sector undetected.The seized account hosted backend infrastructure for the subsidiaries.
“Today’s seizure strikes a blow against one of the world’s most prolific criminal marketplaces,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed — much of it stolen through Southeast Asian scam centers. Seizures of these marketplaces is critical in the fight against fraud that affects so many Americans, and to stop avenues for criminal proceeds to be laundered.”
“Today’s seizure demonstrates that law enforcement will use all tools at its disposal to protect Americans from criminals seeking to exploit them,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “We will not allow individuals or companies to exploit our country’s technology to defraud hardworking Americans.”
“The FBI continually leverages its global reach to combat criminals targeting the American people,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “This seizure demonstrates our commitment to disrupting every component of the illegal ecosystem and working with our partners to prevent further victimization from scams.”
“The FBI is committed to disrupting the infrastructure and services that cybercriminals rely on to profit from their illegal activity,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Today’s action targets a key enabler of cyber-enabled fraud and money laundering schemes, demonstrating that the FBI will pursue not only the perpetrators, but also the services that support their criminal operations.”
According to court documents, the seized account was used to help operate Huione Guarantee, also known as Haowang Guarantee. Huione Guarantee is alleged to have operated Telegram channels that contained discussions regarding illicit products and/or services, ranging from the sale of stolen credit card and identity information, the fruits of malware-enabled thefts, the procurement of individuals for human trafficking schemes, as well as assistance with laundering the proceeds of romance and investment scams. Huione Guarantee also provided escrow services for criminals transacting on its platforms to facilitate transactions, including money launderers laundering cryptocurrency. In doing so, Huione Guarantee facilitated the movement of considerable funds stolen by Southeast Asian scam centers.
Law enforcement has continuously traced cyber-enabled fraud proceeds to cryptocurrency addresses attributed to the Huione Group, including Huione Guarantee, where the funds were then further laundered. Reports of cyber-enabled fraud involving cryptocurrency continue to increase, with complainants reporting over $7.2 billion in losses to the FBI’s Internet Crime Complaint Center (IC3) in 2025 due to cryptocurrency investment fraud alone.
Last October, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule severing Huione Group from the U.S. financial system. In this rule, FinCEN found the Huione Group to be a primary money laundering concern pursuant to section 311 of the USA Patriot Act, citing its significant role in laundering proceeds of cryptocurrency investment fraud, cyber heists conducted by the Democratic People’s Republic of Korea, and proceeds of other cyber scams. Today, FinCEN issued a notice of proposed rulemaking (NPRM) to amend this rule’s definition of the Huione Group to include H-Pay Service PLC, among other changes. In its NPRM, FinCEN has assessed H-Pay Service PLC is a component of the Huione Group and of primary money laundering concern.
The FBI’s San Francisco Field Office and IRS Criminal Investigation are investigating the case.
Trial Attorney Ethan Cantor of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Sailaja Paidipaty for the Northern District of California are prosecuting the case. Former CCIPS Trial Attorney Stefanie Schwartz and Assistant U.S. Attorney Daniel Pastor, formerly in the Northern District of California, provided valuable assistance.
The Department of Justice also thanks the intelligence teams at Chainalysis and Elliptic, and Google’s CyberCrime Investigation Team for voluntarily providing valuable information for this investigation.
CCIPS investigates and prosecutes cybercrime and intellectual property (IP) crime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cyber and IP criminals, and court orders for the return of over $350 million in victim funds.
If you have been victimized by a cyber-enabled fraud scheme, please report the crime to the IC3 at www.ic3.gov. Law enforcement uses these complaints to investigate crimes, trace stolen funds for investigations and law enforcement action, and build cases against those responsible for the offenses.
This action is part of Operation Riptide, an ongoing FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime, cyber-enabled crime, and fraud against the American people. Last year, Americans reported over $20 billion in losses to cybercrime, a 26 percent single-year increase. Operation Riptide is the FBI’s sustained enforcement response to that threat.
Man Sentenced to Five Years in Prison for Intentionally Setting Fire to San Jose Post OfficeRead the Press Release
SAN JOSE - Richard Tillman was sentenced today to five years in federal prison for arson. U.S. District Judge Edward J. Davila handed down the sentence.
Tillman, 45, was indicted by a federal grand jury on August 7, 2025. Tillman pleaded guilty to one count of Malicious Destruction of Government Property by Fire in violation of 18 U.S.C. § 844(f)(1) on February 9, 2026. According to the plea agreement, Tillman admitted to intentionally setting fire to the Almaden Valley United States Post Office located at 6525 Crown Boulevard in San Jose, California, on July 20, 2025.
Tillman admitted that he intentionally set the fire in order to “make a point to the United States government.” In preparation for the fire, Tillman purchased firelogs and lighter fluid. He then drove to the Post Office with firelogs in his vehicle, backed the vehicle through the building’s front door, exited the vehicle, spread lighter fluid throughout the vehicle, threw a lit match into the vehicle, and exited the Post Office. The fire quickly spread from the vehicle to the Post Office, completely destroying its lobby, as depicted in the photographs below. Prior to July 20, 2025, the lobby of the Post Office was open to the public during business hours for retail transactions and access to post office boxes. The fire rendered the lobby unusable, and it has not been available to the public since.
United States Attorney Craig H. Missakian, U.S. Postal Inspection Service (USPIS), San Francisco Division Inspector in Charge Stephen M. Sherwood, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge John Wester, and Federal Bureau of Investigation (FBI) Special Agent in Charge Scott Schelble made the announcement.
In addition to the prison term, Judge Davila also sentenced Tillman to a three-year period of supervised release, and ordered Tillman to pay restitution of $2,371,682 to the United States Postal Service. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Michael G. Pitman is prosecuting the case with the assistance of Sahib Kaur. The prosecution is the result of an investigation by the USPIS, ATF, FBI, and the San Jose Police Department. The U.S. Attorney’s Office appreciates the assistance of the Santa Clara County District Attorney’s Office.
San Francisco Company Agrees to Pay over Three Million Dollars to Resolve Allegations That They Submitted False Claims for Healthcare PaymentsRead the Press Release
SAN FRANCISCO – San Francisco-based Circle Medical Care of California, Circle Medical Technologies, Inc., and their Chief Medical Officer and medical director Dr. Nicole Tsang, D.O., have agreed to pay a total of $3,325,000 to the United States and the State of California to settle allegations that they knowingly submitted claims for payments to federal healthcare programs and California commercial insurers for services by providers who did not actually provide or supervise those services, in violation of the federal False Claims Act and corresponding state statute.
Circle operates an online telehealth platform through which it offers mental health treatment and primary care medical services through contract providers, including nurse practitioners and physician assistants located throughout the country. Circle submits claims for payment to federally funded health programs, including Medicare, Medicaid, and TRICARE, and to California commercial insurers. The United States and California allege that Circle submitted claims for payment to these programs and insurers for services, and received reimbursement, between January 1, 2018, and May 31, 2025, despite knowingly identifying the name and NPI (National Provider Identifier) number of rendering providers who did not actually provide or supervise the services rendered, and failed properly to supervise the nurse practitioners and physician assistants who rendered medical services to its patients during this period.
Under the settlement agreement, Circle will pay $475,000 to the United States and $2,850,000 to California.
United States Attorney Craig H. Missakian, Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), and Assistant Inspector General and Health Care Fraud Division Director Jennifer K. Dietz of the Defense Health Agency Office of Inspector General (DHA-OIG) made the announcement.
“The integrity of our federal health care system depends on the accuracy of the information submitted by providers,” said United States Attorney Craig H. Missakian. “This resolution sends a clear message that we will seek to hold accountable anyone who compromises that integrity. Our priority is to protect both the patients who rely on these vital services and the tax dollars that fund them.”
“Submitting claims under another provider’s identity undermines the integrity of our federal health care programs and puts patients at risk,” said HHS-OIG Special Agent in Charge Breeden. “This resolution reflects our commitment to holding entities accountable when they knowingly sidestep required Medicare safeguards and misrepresent who is actually delivering care.”
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jason Vellen. Under those provisions, 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. Jason Vellen v. Circle Medical Care of California, Circle Medical Technologies, Inc., Dr. Nicole Tsang, D.O, and George Favvas, No. 3:24-cv-02024-TSH (N.D. Cal.). In connection with the settlement, Mr. Vellen will receive $80,750 from the United States and $997,500 from California.
Assistant U.S. Attorney Savith Iyengar handled this matter. The resolution resulted from a coordinated effort among the U.S. Attorney’s Office for the Northern District of California, the California Department of Insurance, and the San Francisco District Attorney’s Office.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
San Francisco Man Sentenced to Seven Years in Federal Prison for Bank Robbery and CarjackingRead the Press Release
SAN FRANCISCO – James Michael Garrison was sentenced yesterday to 84 months (7 years) in federal prison for a series of bank robberies and a carjacking that occurred in late 2024 and early 2025 in the Northern District of California. U.S. District Judge Rita F. Lin handed down the sentence.
Garrison was indicted by a federal grand jury on June 17, 2025. Garrison pleaded guilty on February 12, 2026, to three counts of bank robbery in violation of 18 U.S.C. § 2113(a), and one count of carjacking in violation of 18 U.S.C. § 2119(1).
According to the plea agreement and other documents filed in the case, beginning in December 2024, Garrison embarked on a spree of bank robberies in Rohnert Park, California, and San Francisco, California. Garrison robbed banks in Rohnert Park on December 5, 2024, and January 2, 2025. During those robberies, he demanded cash and threatened to shoot the tellers. Garrison robbed another bank in San Francisco on December 27, 2024, during which he held a knife in his hand and threatened to shoot “everybody.” In total, he stole approximately $20,000 from the three banks.
Following Garrison’s third bank robbery, he was spotted by San Francisco Police Officers in the Tenderloin neighborhood of San Francisco. Garrison fled from officers and carjacked a rideshare driver in an attempt to escape. While in the car’s backseat, Garrison pulled out a black knife shaped like a handgun and held the weapon to the driver’s head and threatened to shoot him.
Garrison initially refused to leave the car and resisted arrest.
Garrison has been in custody since his arrest in 2025. He will begin serving his prison term immediately. In addition to the prison term, Judge Lin also ordered Garrison to serve 3 years of supervised release that will begin after his term of imprisonment.
United States Attorney Craig H. Missakian and Federal Bureau of Investigation Special Agent in Charge Scott Schelble made the announcement.
The case is being prosecuted by Assistant United States Attorney Sophia Cooper with the assistance of Soana Katoa. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the San Francisco Police Department.
Arrests, Drug Seizures, and Federal Drug Trafficking Charges Surge in San Francisco Through Coordinated Federal-Local Law Enforcement EffortsRead the Press Release
SAN FRANCISCO – The U.S. Attorney’s Office and law enforcement partners announced today the results of a surge in federal drug enforcement measures in San Francisco. Between early October 2025 to the end of May 2026, coordinated federal and local law enforcement efforts resulted in the seizure of over 2.2 kilograms of fentanyl, over 840 grams of methamphetamine, over $38,000 in drug proceeds, and approximately 89 arrests in San Francisco. Over the same period, the U.S. Attorney’s Office brought federal criminal charges against more than 40 defendants for drug trafficking in San Francisco.
“There are some problems that cannot be solved alone and this was one of them. San Francisco’s open-air drug markets were rending the fabric of the city, but working together with our federal, state, and local partners we have made significant progress cleaning up the streets of our great city and we will continue this important work. We owe the people who live and work here nothing less,” said United States Attorney Craig H. Missakian. “As we come off a successful Super Bowl and look forward to welcoming the world for FIFA, we hope that visitors will see what our citizens already know that our city and region are stronger and safer than ever.”
“The DEA is proud of our relationships with our federal, state, and local task force officers. These partnerships provide a force multiplier in the fight against Drug Trafficking Organizations to save American lives, “ said DEA Special Agent in Charge Bob P. Beris.
“The FBI remains fully committed to working side by side with our federal, state, and local partners to disrupt the criminal networks responsible for bringing dangerous drugs into our community. These results demonstrate what we can accomplish when we combine our authorities, intelligence, and resources toward a shared mission. Every arrest and every seizure represents a meaningful step toward improving the safety and well being of the people of San Francisco, and we will continue this coordinated effort with urgency and resolve,” said FBI Special Agent in Charge Scott Schelble.
“Selling and using deadly narcotics in San Francisco will never be tolerated, and the San Francisco Police Department will continue to work closely with our federal partners to crack down on illegal drug markets across our city,” said SFPD Chief Derrick Lew. “I want to thank our partners at the United States Attorney’s Office, the FBI, and the DEA for their close partnership in this vital work. While we have more work to do, today’s announcement shows the progress San Francisco is making in taking major quantities of drugs off our streets and holding traffickers accountable.”
Many of the federal cases recently charged or resolved involve large quantities of drugs and carry mandatory minimum sentences for the offenders under federal drug statutes. Examples include:
- Kiet Ly, 46, of San Francisco, who was indicted by a federal grand jury on September 9, 2025. Ly pleaded guilty on December 10, 2025, to one count of possession with intent to distribute 50 grams and more of a mixture or substance containing methamphetamine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B) and one count of possession of a firearm and ammunition as a felon in violation of 18 U.S.C. § 922(g), as well as to related supervised release violations. According to the plea agreement, on or about July 19, 2025, law enforcement searched the car that Ly was driving in San Francisco and found 117 grams of methamphetamine and a Glock pistol loaded with seven bullets. Ly was sentenced to ten years in federal prison on May 14, 2026.
- Martha Alvarado Rodriguez, 50, and Solis Soto Alvardo, 35, both from Oakland, who were each charged by information with one count of possession with intent to distribute fentanyl and one count of possession with intent to distribute methamphetamine in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). According to court documents and proceedings, Rodriguez and Alvardo sold fentanyl to undercover police officers on more than one occasion in the Tenderloin District of San Francisco. A search of their car found 73.9 gross grams of fentanyl, 33.5 gross grams of methamphetamine, and 16.2 grams gross of cocaine base. Rodriguez and Alvardo pleaded guilty on November 5, 2025, and were each sentenced to three years in federal prison on April 22, 2026.
- Andy Cruz, 40, of Oakland, who was charged on January 29, 2026, by a superseding information with possession with intent to distribute 40 grams or more of fentanyl in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B) and failure to appear in court as required. According to court documents and proceedings, Cruz had been selling drugs in the Tenderloin District of San Francisco and elsewhere since 2008. An earlier search of his home discovered nearly one kilogram of fentanyl, 76 grams of heroin, and 25 grams of methamphetamine. He was sentenced to 96 months in federal prison on March 25, 2026.
These efforts expand upon the U.S. Attorney’s Office-led “All Hands on Deck” law enforcement initiative to address endemic drug dealing – in particular of fentanyl and methamphetamine – in the Tenderloin District of San Francisco. Since its inception, the initiative has resulted in over 200 federal drug prosecutions and over 160 convictions, with cases still pending.
The recent increased operations involved coordination among the U.S. Attorney’s Office, DEA, FBI, ATF, IRS Criminal Investigations, the San Francisco Police Department, the San Francisco District Attorney’s Office, and California Highway Patrol. Additional operations are planned in the coming months.
A criminal complaint, information, or indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.
San Jose Man Sentenced to over Ten Years in Federal Prison for Robbing and Assaulting A U.S. Postal Service Letter CarrierRead the Press Release
SAN JOSE – Robert Cordova, also known as Robert Cordona, was sentenced today to 129 months in federal prison for robbing and assaulting a U.S. Postal Service letter carrier. U.S. District Judge Beth Labson Freeman handed down the sentence.
Cordova, 51, of San Jose, was indicted by a federal grand jury on January 23, 2025, on charges of federal robbery and assault. He pleaded guilty to both counts of the indictment on March 31, 2026. According to the plea agreement, Cordova admitted that he went inside a United States Postal Service (USPS) mail truck with the intent to steal mail. A USPS letter carrier approached him as Cordova was taking mail. Cordova punched the letter carrier in the face, knocking him to the ground. Cordova then got on top of the letter carrier and continued to punch him several times in the face and head.
According to court documents, the letter carrier sustained a broken nose, a fractured orbital socket, and had a permanent metal plate placed inside of his face due to his injuries. Judge Freeman found that Cordova qualified as career offender under the U.S. Sentencing Guidelines.
“Today’s sentence underscores our unwavering commitment to protecting federal employees who serve the public every day. Anyone who attacks postal workers—or any public servant—will be held fully accountable,” said United States Attorney Craig H. Missakian.
“Today’s sentence reflects the seriousness of the crime committed in this case. Hardworking people come into your neighborhoods to deliver mail, they deserve respect and protection,” said U.S. Postal Inspection Service (USPIS) San Francisco Division Inspector in Charge Stephen M. Sherwood. “Postal inspectors will not relent from bringing anyone who harms a postal worker to justice. I want to thank the San Jose Police Department for their excellent response and teamwork and the Northern District of California U.S. Attorney's Office for their determination in prosecuting this case.”
The defendant was remanded to the custody of the U.S. Marshals Service for transport to the Bureau of Prisons. In addition to the prison term, Judge Freeman sentenced Cordova to a 3-year period of supervised release.
Assistant U.S. Attorney Neal C. Hong is prosecuting the case with the assistance of Sahib Kaur. This prosecution is the result of an investigation by USPIS and the San Jose Police Department.
Monterey County Man Sentenced to 10 Years in Prison for Attempted Enticement of Two MinorsRead the Press Release
SAN JOSE - Edy Antonio, Jr. was sentenced today to 10 years in federal prison for attempting to coerce and entice two minors to engage in sexual activity. U.S. District Judge Noël Wise handed down the sentence.
Antonio, 31, of Salinas, was indicted by a federal grand jury on June 6, 2025, and pleaded guilty on February 9, 2026, to one count of attempted coercion and enticement of a minor. According to his guilty plea, on April 21, 2025, Antonio responded to an advertisement on a website dedicated to promoting commercial sex services. The advertisement depicted persons Antonio believed to be two minor girls, ages 12 and 14 years old. Antonio responded via text message and agreed to pay $500 to engage in sexual conduct with the minors. Antonio then traveled to the agreed location at a hotel in Salinas, where he was arrested by Salinas Police Department officers. The complaint describes that Antonio worked as a respiratory therapist at two hospitals in Salinas and Monterey.
United States Attorney Craig H. Missakian and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Jeff Brannigan made the announcement.
Antonio has been in custody since March 3, 2026. He will begin serving his prison term immediately. In addition to the prison term, Judge Wise also sentenced the defendant to a 15-year period of supervised release which will begin after his term of imprisonment.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by HSI and the Salinas Police Department.
Former Bank Employee Sentenced to 18 Months in Prison for Embezzling More Than $800,000Read the Press Release
OAKLAND – Tamim Haidar was sentenced today to one and a half years in federal prison for embezzlement and money laundering. U.S. District Judge Araceli Martinez-Olguin handed down the sentence.
Haidar, 34, of Union City, California pleaded guilty on November 7, 2025, to one count of violating 18 U.S.C. § 656 – Embezzlement by a Bank Officer or Employee and two counts of violating 18 U.S.C. § 1957 – Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity.
According to the plea agreement, Haidar admitted to abusing his position as an assistant branch manager of a Wells Fargo branch bank to embezzle more than $800,000 from the bank. Haidar admitted that he would steal money that was supposed to be deposited into ATM machines, and that he made false database entries to hide his theft. Haidar admitted that he transferred the money he stole to his personal bank accounts, and used the stolen funds to make up losses he incurred engaging in foreign currency trading.
United States Attorney Craig H. Missakian and IRS Criminal Investigation Acting Special Agent in Charge David Lowe made the announcement.
In addition to the prison term, Judge Martinez Olguin also sentenced Haidar to a three-year period of supervised release and ordered Haidar to pay more than $800,000 in restitution. The defendant will begin serving the sentence on August 31, 2026.
Assistant U.S. Attorney Evan M. Mateer is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by the IRS Criminal Investigation Oakland Field Office.
Florida Resident Sentenced to 5 Years for Obtaining Fraudulent COVID Loans, Scams Targeting Investors, and Stealing Government PropertyRead the Press Release
SAN FRANCISCO - Thomas Aaron Signorelli was sentenced today to more than 5 years in federal prison for crimes including bank fraud, wire fraud, obstructing justice, and conspiring to launder the proceeds of fraud. U.S. District Judge James Donato handed down the sentence.
Signorelli, 48, of West Palm Beach, Florida, was charged by Information on September 19, 2024, and on November 25, 2024, he pleaded guilty to bank fraud, wire fraud, conspiracy to commit wire fraud, theft of government property, obstruction of justice, and money laundering conspiracy. According to the plea agreement, Signorelli admitted that he caused the submission of applications for a Paycheck Protection Program (PPP) loan and a loan under the Economic Injury Disaster Loan (EIDL) that contained false statements regarding the number of employees and annual revenue for a company that Signorelli controlled. These loans totaled $61,725 and were not repaid.
In addition, Signorelli admitted that he engaged in two other fraud schemes, both schemes involving false statements made to prospective investors to obtain hundreds of thousands of dollars from defrauded investors. When law enforcement agents sought to execute a search warrant authorizing a search of Signorelli’s mobile phone, Signorelli deleted WhatsApp messages with a co-conspirator that he knew were evidence of a crime, as admitted by Signorelli.
Signorelli also admitted that he offered to launder money that he believed was the proceeds of drug trafficking, and that an individual he now understands was an undercover law enforcement agent provided funds to Signorelli for laundering. Signorelli admitted that he received $150,000 of what he believed was drug proceeds, and that instead of laundering these funds, he stole this money.
The losses caused by Signorelli’s criminal conduct totaled more than $1.9 million.
United States Attorney Craig H. Missakian, FBI Acting Special Agent in Charge Matt Cobo, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Acting Special Agent in Charge David Lowe made the announcement.
In addition to the 63-month prison term, Judge Donato also sentenced the defendant to a 3-year period of supervised release. The defendant is currently in custody and will begin serving the sentence immediately. Judge Donato will set a further hearing regarding restitution.
Assistant U.S. Attorney Patrick O’Brien is prosecuting the case with the assistance of Lynette Dixon and Mimi Lam. The prosecution is the result of an investigation by the FBI and IRS-CI.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is 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.
Former East Bay Financial Advisor Pleads Guilty to Operating A Long-Running $9.5 Million Ponzi SchemeRead the Press Release
OAKLAND – Edwin Emmett Lickiss, Jr., pleaded guilty in federal court today to one count of wire fraud and one count of money laundering in connection with a decades-long Ponzi scheme.
Lickiss, 78, of Danville, Calif., admitted that from 1998 through September 2024, he defrauded more than 93 investors of at least $9.5 million. To induce investments, Lickiss falsely claimed that he would place victim funds into exclusive, safe, tax-free bonds, with some generating returns in excess of 20 percent. Lickiss also issued fraudulent promissory notes on the letterhead of his former firm, Foundation Financial Group.
In fact, Lickiss used subsequent victim funds to make payments to those who had invested earlier, consistent with a Ponzi scheme. Lickiss also diverted victim funds for his own use, including cash withdrawals, home renovations, travel, and payments on vehicles, mortgages, and personal credit cards.
United States Attorney Craig H. Missakian, FBI Special Agent in Charge Matthew Cobo, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
Lickiss was released pending a sentencing hearing, which is scheduled for August 28, 2026, at 9:30 a.m. before U.S. District Judge Jon S. Tigar. Lickiss faces a maximum statutory sentence of 20 years in prison and a $250,000 fine on the wire fraud count, and 10 years in prison and a $250,000 fine on the money laundering count. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The U.S. Securities and Exchange Commission has also filed a civil enforcement action against Lickiss in the Northern District of California.
Assistant U.S. Attorney Ben Wolinsky is prosecuting the case with the assistance of Lynette Dixon. The prosecution is the result of an investigation by the FBI and IRS-CI. The U.S. Attorney’s Office thanks the Atlanta Regional Office of the SEC for its assistance in the investigation.
Four of the World’s Largest Container Manufacturing Companies and Seven of Their Executives Indicted for a Global Conspiracy Affecting Billions of Dollars of CommerceRead the Press Release
Seven Chinese executives and four of the world’s largest shipping container manufacturing companies were indicted for conspiring to restrict the output of — and fix the prices of — nearly all of the world’s standard unrefrigerated shipping containers for over four years, spanning as early as November 2019 to at least January 2024, in violation of Section 1 of the Sherman Antitrust Act. The multi-year conspiracy roughly doubled the prices of standard shipping containers between 2019 and 2021, increasing the container manufacturers’ profits approximately one hundredfold during the COVID-19 pandemic and global supply chain crisis. One executive, Vick Nam Hing Ma, was arrested and his extradition to the United States is pending. Six executive co-defendants remain at large.
Defendant Vick Nam Hing Ma, also known as “Vick Ma”, “馬南慶” and “马南庆” in Chinese, 54, of the People’s Republic of China, was employed by Singamas Container Holdings Ltd. as Marketing Director. He was arrested on April 14, 2026, in France and his extradition to the United States is pending. Following Ma’s arrest, the U.S. District Court for the Northern District of California unsealed today a superseding indictment charging Ma and 10 of his co-conspirators for conspiring to restrict the output of—and fix the price of — nearly all the world’s standard unrefrigerated shipping containers (also known as standard dry containers), the intermodal containers which carry billions of dollars of goods across the oceans to American households each year. In total, the superseding indictment charges 11 defendants, including 10 of Ma’s co-conspirators:
- Singamas Container Holdings Ltd. (Singamas) also known as “胜狮货柜企业有限公司” in Chinese, was a publicly traded company, organized and existing under the laws of Hong Kong in the People’s Republic of China. Singamas was engaged in the business of manufacturing dry shipping containers and selling them to customers in the United States and elsewhere.
- China International Marine Containers (Group) Co., Ltd. (CIMC), also known as “中国国际海运集装箱（集团）股份有限公司” in Chinese, was a publicly traded company, organized and existing under the laws of the People’s Republic of China. CIMC was engaged in the business of manufacturing dry shipping containers and selling them to customers in the United States and elsewhere.
- Shanghai Universal Logistics Equipment Co., Ltd., also known as “上海寰宇物流装备有限公司” in Chinese, was a company organized and existing under the laws of the People’s Republic of China. Shanghai Universal Logistics Equipment Co., Ltd. (hereinafter “Dong Fang”) owned, managed, and did business as a brand of shipping containers called Dong Fang International Containers, also known as “DF”, “DFIC”, or Dong Fang. Dong Fang was engaged in the business of manufacturing dry shipping containers and selling them to customers in the United States and elsewhere.
- CXIC Group Containers Co. Ltd. (CXIC) also known as “新华昌集团有限公司” in Chinese, was a company organized and existing under the laws of the People’s Republic of China. CXIC was engaged in the business of manufacturing dry shipping containers and selling them to customers in the United States and elsewhere.
- Siong Seng Teo, 71, also known as “張松聲” and “张松声” in Chinese, and “S. Teo,” was employed by Singamas as Chief Executive Officer and Chairman. Teo is believed to be a resident of the Republic of Singapore.
- Boliang Mai, 67, also known as “麦伯良” in Chinese, was employed by CIMC in various senior roles. From August 2015 through July 2020, Mai served as President and Chief Executive Officer of CIMC. From August 2020 through the rest of the period covered by the Superseding Indictment, he served as Chairman and CEO of CIMC. Mai is believed to be a resident of the People’s Republic of China.
- Tianhua Huang, 62, also known as “黄田化” in Chinese and “T.H. Huang,” was employed by CIMC as Vice President. Huang is believed to be a resident of the People’s Republic of China.
- Yongbo Wan, 47, also known as “万永波” in Chinese, was employed by CIMC as General Manager of CIMC’s Operation Management Center. Wan is believed to be a resident of the People’s Republic of China.
- Qianmin Li, 62, also known as “李前敏” in Chinese, was employed by Dong Fang as General Manager. Li is believed to be a resident of the People’s Republic of China.
- Yuqiang Zhang, 49, also known as “张钰强” in Chinese and “James Zhang,” was employed by CXIC as CEO. Zhang is believed to be a resident of the People’s Republic of China.
“Cheaters never prosper,” said Associate Attorney General Stanley Woodward. “This Department of Justice is ensuring that when American pocketbooks are pilfered, accountability will follow. And yet the last administration saw fit to prioritize the weaponization of the Department through novel criminal prosecution theories rather than focus on criminal actors most responsible for manipulating markets to profit from a global pandemic. Thankfully, this Department has righted that wrong, eliminating the weaponization of Government and prioritizing ensuring affordability for all Americans.”
“Global price-fixing cartels strike at the heart of our economic liberty. The defendants held hostage the world’s supply of ocean shipping containers during the Covid pandemic when our supply chains needed it the most. They stole from everyday Americans who paid more and waited longer for vital goods as a result,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “The Justice Department’s Antitrust Division is committed to protecting consumers and holding accountable anyone — anywhere in the world — who exploits Americans for ill-gotten gains.”
“The charges we announced today are possible only because of the dedicated men and women of the Antitrust Division’s San Francisco Office and our partners in the Federal Bureau of Investigation, the General Services Administration Office of Inspector General, the U.S. Attorney’s Office for the Northern District of California, and the U.S. Postal Service Office of Inspector General,” said Acting Deputy Assistant Attorney General Daniel W. Glad for Criminal Enforcement of the Justice Department’s Antitrust Division. “Working together, these law enforcement professionals conducted a thorough, speedy investigation and stand ready to prove the allegations in the indictment.”
“These defendants, as alleged, sought to exploit a global pandemic to increase their own profits. Their illegal agreement to fix prices and limit supply of these shipping containers resulted in the American consumer paying more and waiting longer for critical goods,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “We will not tolerate any attempt to manipulate the free markets and will continue to work with our partners at the Antitrust Division to protect the public from these defendants and others like them.”
“The FBI remains committed to protecting the American people from global entities illegally conspiring to engage in price fixing,” said Operations Director Joe Perez of the FBI’s Criminal and Cyber Branch. “We are proud to work with our partners to ensure that criminals seeking to enrich themselves at the expense of consumers are brought to justice.”
“These charges represent the U.S. Postal Service Office of Inspector General’s commitment to work with the U.S. Department of Justice Antitrust Division and our law enforcement partners to prosecute individuals and companies who restrict trade for personal benefit,” said Executive Special Agent in Charge Kevin Cloninger of the U.S. Postal Service Office of Inspector General. “We will continue to pursue and bring to justice those that conspire to engage in anticompetitive practices and harm U.S. citizens.”
“We will continue working with law enforcement partners to protect our supply chain and aggressively investigate all allegations of price fixing,” said Assistant Inspector General for Investigations Jason Suffredini of the U.S. General Services Administration Office of Inspector General.
As alleged in the superseding indictment, as early as March 2019, several of the conspirators began discussing a scheme to restrict the output and fix the prices of standard dry shipping containers. On or about Nov. 14, 2019, Yongbo Wan and Tianhua Huang of CIMC, Qianmin Li of Dong Fang, Yuqiang Zhang of CXIC, and a co-conspiring executive of Co-Conspirator Company A met at CIMC’s headquarters in the city of Shenzhen. The goal of the agreement was to raise the price of standard dry shipping containers. To do so, they agreed to restrict CIMC’s, Dong Fang’s, CXIC’s, and Co-Conspirator Company A’s output of standard dry shipping containers by various means, including:
- Limiting the number of shifts and hours that each production line for standard dry containers could run per day;
- Installing 87 video surveillance cameras on all 49 dry container production lines to ensure that the companies did not exceed the agreed-upon limitations;
- Not building any new container manufacturing factories; and
- Establishing a fund that included a mechanism to penalize financially any cheating on the output-restriction agreement.
The participants contemplated that Singamas and Co-Conspirator Company B would join the output-restriction agreement later. Those companies did so by at least as early as March 2020.
Throughout their conspiracy, the conspirators refined the operation of the output-restriction agreement. By September 2020, the conspirators agreed to restrict how many standard dry shipping containers the company conspirators would manufacture for particular customers. These customers included major U.S.-based container lessors, shipping lines, and logistics companies, in addition to container lessors, shipping lines, and logistics companies based in Europe, the People’s Republic of China, and elsewhere. And from at least as early as September 2022 until at least as late as November 2023, the conspirators agreed to cap the total cargo volume of containers that the company conspirators produced. On or about November 20, 2023, for example, Vick Ma of Singamas co-presented to his CEO, co-defendant Siong Seng Teo, the conspiracy’s “Total Allowable capacity” and “allowable quota” for production — organized by each company conspirator and its factory lines.
As further alleged in the indictment, the profits of CIMC’s container manufacturing business segment increased nearly one hundredfold from about $19.8 million USD in 2019, to about $288 million USD in 2020, to about $1.75 billion USD in 2021. Singamas’s net income increased from a loss of about $110 million USD in 2019, to profits of about $4.6 million in 2020 and about $186.8 million in 2021.
The superseding indictment charges the defendants with a conspiracy in restraint of trade in violation of Section 1 of the Sherman Antitrust Act (15 U.S.C. § 1). A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals, and a maximum penalty of a $100 million fine for corporations. The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Matthew Chou, Daniel Twomey, Albert Sambat, and Christopher J. Carlberg of the Antitrust Division’s San Francisco Office are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Northern District of California and the Antitrust Division’s International Section. The Federal Bureau of Investigation, the U.S. Postal Service Office of Inspector General, and U.S. General Services Administration Office of Inspector General investigated the case. The Justice Department’s Office of International Affairs and French authorities provided significant assistance in securing the arrest of Vick Ma.
Anyone with information in connection with this investigation, or other antitrust and competition crimes, should contact the Antitrust Division’s Complaint Center by visiting www.justice.gov/atr/report-violations. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Jose Resident Sentenced to Five and A Half Years in Federal Prison for Possession of Child PornographyRead the Press Release
SAN FRANCISCO – David Alvarez was sentenced last week to 66 months in federal prison for possession of child pornography. Senior U.S. District Judge William Orrick handed down the sentence.
Alvarez, 38, of San Jose, was indicted by a federal grand jury on July 31, 2024. Alvarez pleaded guilty on June 26, 2025, to one count of possession of child pornography. According to the plea agreement, Alvarez admitted to possessing five electronic devices that he knew contained approximately 960 files of child pornography. Alvarez further admitted that he distributed child pornography to others via social media and messaging applications, and that he also generated screen recordings of video chat sessions where he played his child pornography collection for 70 different people.
During those recorded video chats, Alvarez asked one user to masturbate next to the user’s sleeping child. Alvarez also showed another user a video depicting the sexual abuse of a child and, while the video played, remarked that he “[d]id this to my nephew a few times” when the nephew was seven years old. Alvarez also exchanged messages that were sexual in nature with a person who told Alvarez he was 15 years old. In those messages, Alvarez solicited pictures from the minor, who sent Alvarez a nude picture. In return, Alvarez sent the minor images of his own genitalia.
United States Attorney Craig H. Missakian and Homeland Security Investigations Special Agent in Charge Jeff Brannigan made the announcement.
In addition to the prison term, Judge Orrick sentenced the defendant to a 10-year period of supervised release and ordered that he pay restitution to one of his victims. The defendant will begin serving the sentence on July 10, 2026.
Assistant U.S. Attorney Jared S. Buszin is prosecuting the case. The prosecution is the result of an investigation by Homeland Security Investigations.
California Man Arrested for Violating Lacey Act for Plot to Illegally Export Trafficked TurtlesRead the Press Release
WASHINGTON — The Justice Department today announced that Donald Do, of Daly City, California, was arrested on federal wildlife trafficking charges. Do is charged with conspiracy and Lacey Act crimes related to submitting false paperwork to obtain a federal export permit and trying to ship protected turtles to Asia. The judge scheduled a status conference for July 31, 2026.
The indictment alleges that between December 2022 and May 2024, Do and a California accomplice attempted to export 292 loggerhead musk turtles to Taiwan. Do’s co-conspirator obtained an export permit from the U.S. Fish and Wildlife Service (USFWS) based on a false claim by Do that he hatched and raised the turtles when he had not.
After obtaining the export permit, Do allegedly bought musk turtles poached from the wild in Florida and elsewhere, and tried to obtain more. Do told sellers he was willing to take “wild caught” and sent instructions to ship turtles to San Francisco. Do and the co-conspirator also allegedly tried to obtain over 200 turtles from Albert Bazaar, of Louisiana, who was detained last week in Phoenix on turtle trafficking charges. After unsuccessfully exporting the turtles, Do allegedly tried to conceal his role by lying to his co-conspirator in California that he had sold the turtles to other domestic buyers.
It is illegal under the Lacey Act to provide false information about wildlife involved in international or interstate commerce or to sell or transport wildlife taken in violation of state law. The USFWS issues permits to import or export fish, wildlife, and plants protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), of which the United States and 184 other governments are signatories. Loggerhead musk turtles were added to the list of protected species in November 2022.
If convicted, Do faces a maximum penalty of five years in prison and a $250,000 fine on each of the conspiracy and Lacey Act charges. Any sentence following conviction would be imposed by the court after considering the U.S. Sentencing Guidelines and other factors.
Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Attorney Craig Missakian for the Northern District of California, and Assistant Director Doug Ault, USFWS Office of Law Enforcement announced the arrest and charges.
The USFWS investigated the case as part of Operation Southern Hot Herps, which was a joint federal and state law enforcement operation to detect and deter turtle poachers in the southeastern United States. Homeland Security Investigations, California Department of Fish and Wildlife, and the Florida Fish and Wildlife Conservation Commission assisted with the investigation.
Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Kenneth Chambers for the Northern District of California are prosecuting the case.
An indictment merely contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former California Department of Corrections and Rehabilitation Employee Pleads Guilty to Possession with Intent to Distribute over 300 Grams of Methamphetamine to Inmates at San Quentin Rehabilitation CenterRead the Press Release
SAN FRANCISCO – Former California Department of Corrections and Rehabilitation employee, Keith Reindeer Randle, pleaded guilty in federal court today to possession with intent to distribute over 300 grams of methamphetamine to inmates at San Quentin Rehabilitation Center, formerly known as San Quentin State Prison.
Randle, 56, of Vallejo, California, was charged by Information on March 20, 2025, with one count of possession with intent to distribute 50 grams or more of methamphetamine.
In pleading guilty, Randle admitted to soliciting and accepting bribery payments in exchange for smuggling and distributing prison contraband, including methamphetamine, marijuana, and tobacco, to inmates at San Quentin. The scheme went on for years, dating back to at least January 2019 and continuing through August 15, 2024. Randle charged inmates and their associates approximately $1,000 per item he smuggled into the prison and initially received payments directly from inmates. However, fearing law enforcement might uncover his contraband and drug distribution scheme, Randle began to solicit and accept bribery payments from the associates of inmates rather than inmates themselves. On August 15, 2024, Randle was caught inside San Quentin with a hollowed out peanut butter jar containing 301 grams of methamphetamine, as well as marijuana. The peanut butter jar was painted brown and glued shut to appear full and unopened.
Randle profited significantly from his years-long bribery and drug distribution scheme. For example, from January 2019 through April 2020, Randle was paid $31,000 from associates of inmates to his PayPal account in exchange for smuggling contraband into the prison. As another example, from July 2021 through August 2022, Randle received approximately $40,926 via Cash App from an inmate’s wife in exchange for smuggling contraband to her husband at San Quentin. In 2023 and 2024, Randle primarily only accepted bribery payments in cash. On October 1, 2024, federal law enforcement seized $55,210 in cash from Randle’s two residences, all of which Randle admitted were proceeds from his bribery and drug distribution scheme. In total, Randle admitted to soliciting and accepting over $100,000 in bribery payments from inmates and their associates. With the illicit proceeds, Randle admitted to making numerous purchases, such as buying cars, motorcycles, and other assets.
United States Attorney Craig H. Missakian and FBI Acting Special Agent in Charge Matthew Cobo made the announcement.
Randle’s sentencing hearing is scheduled for August 21, 2026, before U.S. District Judge Susan Illston. He faces a maximum statutory penalty of 40 years’ imprisonment and a $5,000,000 fine in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(B)(viii), possession with intent to distribute 50 grams or more of methamphetamine. Any sentence will be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Benjamin K. Kleinman is prosecuting the case with the assistance of Amala James, Analisse Iniguez, and Veronica Hernandez. The prosecution is the result of an investigation by the FBI.
California Man Arrested for Violating Lacey Act for Plot to Illegally Export Trafficked TurtlesRead the Press Release
This week, Donald Do, of Daly City, California, was arrested on federal wildlife trafficking charges. Do is charged with conspiracy and Lacey Act crimes related to submitting false paperwork to obtain a federal export permit and trying to ship protected turtles to Asia.
The indictment alleges that between December 2022 and May 2024, Do and a California accomplice attempted to export 292 loggerhead musk turtles to Taiwan. Do’s co-conspirator obtained an export permit from the U.S. Fish and Wildlife Service (USFWS) based on a false claim by Do that he hatched and raised the turtles when he had not.
After obtaining the export permit, Do allegedly bought musk turtles poached from the wild in Florida and elsewhere, and tried to obtain more. Do told sellers he was willing to take “wild caught” and sent instructions to ship turtles to San Francisco. Do and the co-conspirator also allegedly tried to obtain over 200 turtles from Albert Bazaar, of Louisiana, who was detained last week in Phoenix on turtle trafficking charges. After unsuccessfully exporting the turtles, Do allegedly tried to conceal his role by lying to his co-conspirator in California that he had sold the turtles to other domestic buyers.
It is illegal under the Lacey Act to provide false information about wildlife involved in international or interstate commerce or to sell or transport wildlife taken in violation of state law. The USFWS issues permits to import or export fish, wildlife, and plants protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), of which the United States and 184 other governments are signatories. Loggerhead musk turtles were added to the list of protected species in November 2022.
The judge scheduled a bond hearing for May 21 and a status conference for July 31. If convicted, Do faces a maximum penalty of five years in prison and a $250,000 fine on each of the conspiracy and Lacey Act charges. Any sentence following conviction would be imposed by the court after considering the U.S. Sentencing Guidelines and other factors.
Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Attorney Craig Missakian for the Northern District of California, and Assistant Director Doug Ault, USFWS Office of Law Enforcement announced the arrest and charges.
The USFWS investigated the case as part of Operation Southern Hot Herps, which was a joint federal and state law enforcement operation to detect and deter turtle poachers in the southeastern United States. Homeland Security Investigations, California Department of Fish and Wildlife, and the Florida Fish and Wildlife Conservation Commission assisted with the investigation.
Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Kenneth Chambers for the Northern District of California are prosecuting the case.
An indictment merely contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
San Joaquin County Man Charged for Unlawful Possession of Ammunition in Connection with Fatal Shooting at Oakland NightclubRead the Press Release
OAKLAND – Jarvis Toussaint has been charged with being a felon in possession of ammunition. Toussaint, who was already in federal custody for an unrelated offense, made his initial appearance in federal court in Oakland on May 13, 2026.
According to the criminal complaint and court documents filed May 8, 2026, and now unsealed, Toussaint, 40, of Mountain House, CA, is alleged to have engaged in a shootout in a crowded downtown Oakland nightclub in the early morning of March 7, 2026, in which two people were killed, including an Oakland woman who was shot as she attempted to run from the gunfire. At least five others also suffered gunshot wounds during the incident. Although Toussaint fled the scene following the shooting, investigators identified him through a combination of surveillance video, automated license plate reader technology, car dealership records, Instagram evidence, cell phone location data, and DNA analysis. The semiautomatic pistol Toussaint used in the shooting has not been found, but investigators recovered at the scene the spent shell casings from the rounds he had fired. At the time of the shooting, Toussaint had previously been convicted of multiple felonies and was prohibited from possessing a firearm or ammunition.
United States Attorney Craig H. Missakian and ATF Special Agent in Charge John Wester made the announcement.
Toussaint is currently in federal custody. Toussaint is next scheduled to appear in magistrate court on May 19, 2026 for a status conference before U.S. Magistrate Judge Ajay S. Krishnan.
A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 15 years in prison and a fine of $250,000 for the violation of possessing ammunition as a felon, in violation of 18 U.S.C. § 922(g)(1). Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Jonah P. Ross is prosecuting the case with the assistance of Amala James and Analisse Iniguez. The prosecution is the result of an investigation by the ATF and the Oakland Police Department.
Drug Dealer Sentenced to Ten Years in Federal Prison for Possession with Intent to Distribute Methamphetamine and Firearms PossessionRead the Press Release
SAN FRANCISCO – Kiet Ly was sentenced today to ten years in federal prison for possession with intent to distribute 50 grams and more of a mixture or substance containing methamphetamine and possession of a firearm and ammunition as a felon. Senior U.S. District Judge Charles R. Breyer handed down the sentence.
Ly, 46, of San Francisco, was indicted by a federal grand jury on September 9, 2025. Ly pleaded guilty on December 10, 2025, to one count of possession with intent to distribute 50 grams and more of a mixture or substance containing methamphetamine and one count of possession of a firearm and ammunition as a felon, as well as to the related supervised release violations. According to the plea agreement, Ly admitted to having been convicted on or about September 21, 2016, of a felony offense, namely, possession with intent to distribute 500 grams or more of a mixture and substance containing methamphetamine in United States v. Ly, Case No. 3:16-CR-00297-CRB. While Ly was on supervised release for that case, law enforcement searched the car that Ly was driving on or about July 19, 2025. They found 117 grams of methamphetamine and a Glock pistol loaded with seven bullets.
United States Attorney Craig H. Missakian and Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Special Agent in Charge John Wester made the announcement.
In addition to the prison term, Judge Breyer also sentenced the defendant to a four-year period of supervised release and ordered that he be sentenced to one year for the supervised release violations to be served concurrently.
Assistant U.S. Attorney Christine Chen is prosecuting the case with the assistance of Gabriel Flesher. The prosecution is the result of an investigation by ATF and the San Francisco Police Department.
Three Tennessee Men Indicted on Robbery, Kidnapping, and Conspiracy Charges Related to $6 Million Cryptocurrency Robbery Spree Throughout Bay Area and Los AngelesRead the Press Release
SAN FRANCISCO – A federal grand jury has indicted Elijah Armstrong, Nino Chindavanh, and Jayden Rucker on Conspiracy to Commit Hobbs Act Robbery, Conspiracy to Commit Kidnapping, Attempted Hobbs Act Robbery, and Attempted Kidnapping relating to a violent robbery spree targeting cryptocurrency owners. Armstrong and Rucker were arrested in Los Angeles on December 31, 2025, and Chindavanh was arrested on December 22, 2025 in Sunnyvale. Chindavanh made his initial appearance in federal court in San Francisco on April 14, 2026, and Armstrong and Rucker made their initial appearances in federal court in San Francisco earlier today.
According to the indictment filed March 31, 2026, Armstrong, 21, of Tennessee; Chindavanh, 21, of Tennessee; and Rucker, 25, of Tennessee, are alleged to have conspired to kidnap and rob individuals in San Francisco, San Jose, Sunnyvale, and Los Angeles in efforts to steal cryptocurrency from the victims. The defendants traveled from Tennessee to commit the alleged crimes and posed as delivery persons to gain access or attempt to gain access to the victims’ residences. They then used firearms, duct tape, and zip ties to assault their victims, including by binding and restraining a victim in order to force him to divulge his account information. In one of the incidents perpetrated by the conspiracy, the victim was forced at gunpoint to sign into his cryptocurrency accounts so that a co-conspirator could transfer approximately $6.5 million from his cryptocurrency accounts to a wallet controlled by the co-conspirators.
“These individuals, as alleged, terrorized their victims in the hopes of stealing vast sums of cryptocurrency. The scheme was not only sophisticated, it was brazen, violent, and dangerous,” said United States Attorney Craig H. Missakian. “I want to commend our law enforcement partners for the quick work done in identifying and apprehending these individuals and assure the public that we will not let our guard down and continue to do all we can to ensure this does not happen again.”
“The indictment of these individuals underscores the FBI’s unwavering commitment to protecting our communities from violent and organized criminal activity. As alleged, this was a calculated scheme involving robbery, kidnapping, and the theft of millions in cryptocurrency - crimes that put innocent people at risk and threaten the sense of safety we all rely on,” said FBI Acting Special Agent in Charge Matt Cobo. “The FBI will not tolerate criminals who travel into our communities with the intent to terrorize our citizens. We will continue to work alongside our law enforcement partners across the Bay Area and beyond to identify, investigate, and bring to justice anyone who believes they can exploit or endanger the public for personal gain.”
Armstrong, Chindavanh, and Rucker are currently in federal custody. Armstrong and Rucker are next scheduled to appear on May 12, 2026, for appointment of counsel before U.S. Magistrate Judge Thomas S. Hixson. Chindavanh is next scheduled to appear on June 26, 2026, for a status hearing before U.S. District Judge Trina L. Thompson.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison and a fine of $250,000 for each count of Conspiracy to Commit Hobbs Act Robbery in violation of 18 U.S.C. § 1951(a), Attempted Hobbs Act Robbery in violation of 18 U.S.C. § 1951(a), and Attempted Kidnapping in violation of 18 U.S.C. § 1201, as well as a maximum sentence of life in prison and a fine of $250,000 for each count of Conspiracy to Commit Kidnapping. Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Kelsey C. Davidson and Jared S. Buszin of the Organized Crime Section are prosecuting the case with the assistance of Yenni Weinberg. The prosecution is the result of an investigation by the FBI, San Francisco Police Department, San Jose Police Department, Sunnyvale Police Department, and Los Angeles Police Department.
Colin Jackson Convicted of Participating in Scheme to Defraud Automobile Insurance CompanyRead the Press Release
SAN FRANCISCO – A federal jury convicted Colin Jackson of conspiracy to commit wire fraud, wire fraud, and money laundering on Wednesday, May 6, 2026. The jury’s verdict followed a seven-day trial before U.S. District Judge Trina L. Thompson.
The jury found that Jackson conspired with others, including a previously convicted defendant, Kirill Afanasyev, to defraud an automobile insurance company concerning the submission of a fraudulent insurance claim on an already-wrecked car in 2018.
According to court documents and the evidence presented at trial, Jackson, 39, of San Francisco, obtained an insurance policy on an undrivable car in June 2018. He made a number of misstatements in his application for that policy, including regarding his estimated annual mileage on the car. Five months later, in November 2018, Jackson and Afanasyev worked together to submit a fraudulent claim concerning a fake accident to the insurer. Unaware it had insured a wrecked car, the defrauded automobile-insurance company approved the claim and paid Jackson about $27,000—the insurer’s estimate of the replacement value of the car, which had been titled in Jackson’s name.
The 2018 fraud followed a similar scheme in 2017, when Jackson and Afanasyev obtained a payout from the insurer of approximately $30,000 on another already-wrecked car titled in Jackson’s name.
United States Attorney Craig Missakian, FBI Acting Special Agent in Charge Matthew Cobo, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
Jackson is next scheduled to appear before Judge Thompson for sentencing on September 25, 2026.
With the jury’s verdict against Jackson, more than a dozen defendants have either pleaded guilty or been convicted at trial as part of an ongoing federal investigation into automobile insurance frauds and an unrelated arson conspiracy involving an overlapping defendant, Jose Badillo, who previously pleaded guilty to participating in both parts of the scheme.
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Operation Hammer Down
Operation Hammer Down was a federal investigation into automobile-insurance frauds orchestrated by Afanasyev and Badillo, the former owner of Jose’s Towing, Auto Towing, and Specialty Towing. In total, Afanasyev, Badillo, and others submitted and conspired to submit more than 50 fraudulent insurance claims that caused in excess of $1.5 million dollars in losses to automobile insurance companies.
Operation Hammer Down also concerned arsons orchestrated by Badillo, who sought to impede his competitors’ business prospects to exact revenge against them for perceived wrongs. For his role in the arson campaign, Badillo was sentenced in February 2026 to 60 months in custody by U.S. District Judge Rita F. Lin.
The cases that resulted from the investigation include the following, among others:
DefendantCase Number(s)Statute(s)StatusKirill Afanasyev3:23-cr-00042-TLT18 U.S.C. § 1349 (Conspiracy to Commit Mail Fraud),18 U.S.C. § 1341 (Mail Fraud), 18 U.S.C. § 1956(a)(1)(B)(i) (Money Laundering), 18 U.S.C. § 1349 (Conspiracy to Commit Wire Fraud), 18 U.S.C. § 1343 (Wire Fraud), and 18 U.S.C. § 1957 (Money Laundering)Sentenced on November 7, 2025.3:24-cr-00471-TLT18 U.S.C. § 1349 (Conspiracy to Commit Mail Fraud and Wire Fraud),18 U.S.C. § 1349 (Conspiracy to Commit Wire Fraud), 18 U.S.C. § 1341 (Mail Fraud), 18 U.S.C. § 1343 (Wire Fraud), and 18 U.S.C. § 1957 (Money Laundering)Jose Badillo3:24-cr-00471-TLT18 U.S.C. § 1349 (Conspiracy to Commit Mail Fraud and Wire Fraud), and 18 U.S.C. § 1349 (Conspiracy to Commit Wire Fraud)Sentenced on February 13, 2026.3:25-cr-00062-RFL18 U.S.C. § 844(i) and (n) (Conspiracy to Commit Arson)Sentenced on February 12, 2026.Colin Jackson3:23-cr-00236-TLT18 U.S.C. § 1349 (Conspiracy to Commit Wire Fraud),18 U.S.C. § 1343 (Wire Fraud), and 18 U.S.C. § 1957 (Money Laundering)Convicted following a trial on May 6, 2026.Jason Naraja3:24-cr-00471-TLT18 U.S.C. § 1349 (Conspiracy to Commit Wire Fraud)Sentenced on September 12, 2025.Deshaun Loggins3:23-cr-00042-TLT18 U.S.C. § 1349 (Conspiracy to Commit Mail Fraud) and 18 U.S.C. § 1341 (Mail Fraud)Sentenced on April 19, 2024.Vladimir Sarser3:23-cr-00042-TLT18 U.S.C. § 1343 (Wire Fraud) and 18 U.S.C. § 1957 (Money Laundering)Sentenced on March 29, 2024.Jay Yoon Song3:23-cr-00270-TLT18 U.S.C. § 1957 (Money Laundering).Sentenced on April 25, 2024.Sergey Kravchenko3:24-cr-00049-TLT18 U.S.C. § 1349 (Conspiracy to Commit Mail Fraud) (2), 18 U.S.C. § 1341 (Mail Fraud) (2), and 18 U.S.C. § 1957 (Money Laundering) (2).Pleaded guilty on November 5, 2024.Jessica Najarro3:24-cr-00382-TLT18 U.S.C. § 1957 (Money Laundering)Pleaded guilty on February 21, 2025.Jamie Respicio3:24-cr-00471-TLT18 U.S.C. § 1957 (Money Laundering)Sentenced on June 27, 2025.Boris Meleshinsky3:24-cr-00483-TLT18 U.S.C. § 1349 (Conspiracy to Commit Wire Fraud)Pleaded guilty on September 27, 2024.These prosecutions are part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The 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. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF San Francisco comprises agents and officers from FBI and IRS, with the prosecution being led by the United States Attorney’s Office for the Northern District of California.
Assistant U.S. Attorneys Galen A. Phillips and Nicholas M. Parker are prosecuting these cases with the assistance of Lance Libatique, Andy Ding, Carolyn Jusay, and Yaqiong Fan. The prosecution is the result of an investigation by the FBI and IRS-CI. The U.S. Attorney’s Office and the FBI thank the San Francisco Police Department for its assistance with the investigation.
Louisiana Man Detained on Turtle Trafficking ChargesRead the Press Release
A federal magistrate judge in Phoenix yesterday ordered Albert Bazaar held in custody following his arrest on charges relating to trafficking turtles. The court unsealed an indictment from San Francisco charging Bazaar, formerly of Angie, Louisiana, on conspiracy and Lacey Act violations. A status conference will be held on May 14 in Phoenix.
The indictment alleges that between January 2022 and December 2023, Bazaar poached and sold over 1,700 loggerhead musk turtles, 100 stripe-neck musk turtles, and 15 striped mud turtles from their native habitats in Florida. Florida law protects fresh and marine turtle species from unregulated harvest. The indictment charges Bazaar with aiding and abetting a co-conspirator who exported the turtles from San Francisco to Taiwan, falsely claiming they were captive-bred to obtain export permits. The turtles are estimated to be worth more than $550,000 in the Asian pet trade.
The indictment describes eight transactions where Bazaar sold illegally collected turtles to the San Francisco exporter. The exporter financed Bazaar’s poaching trips from Louisiana to Florida, including sending money so Bazaar could buy a boat and van. Bazaar is charged with creating a declaration of captive bred wildlife that falsely stated to the U.S. Fish and Wildlife Service (USFWS) that the turtles were lawfully bred in Alabama and Georgia.
The federal Lacey Act criminalizes selling or transporting wildlife in interstate commerce that was taken in violation of state law. It is also a Lacey Act violation to provide false information relating to wildlife involved in international or interstate commerce. Loggerhead musk turtles, stripe-neck musk turtles, and striped mud turtles are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). The United States and 184 other governments are signatories to the CITES treaty, which restricts international wildlife sales without a permit to support sustainable trade.
If convicted, Bazaar faces a maximum penalty of five years in prison and $250,000 fine on each of the conspiracy and Lacey Act charges. Any sentence following conviction would be imposed by the court after considering the U.S. Sentencing Guidelines and other factors.
Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Attorney Craig H. Missakian for the Northern District of California, and Assistant Director Doug Ault, USFWS Office of Law Enforcement, announced the arrest and charges.
Bazaar was investigated and charged as part of the USFWS Operation Southern Hot Herps, which was a joint federal and state law enforcement operation to detect and deter turtle poachers in the southeastern United States. Homeland Security Investigations, the Florida Fish and Wildlife Conservation Commission, the California Department of Fish and Wildlife, and the Alabama Department of Conservation and Natural Resources worked closely with USFWS in the investigation.
Senior Trial Attorney Ryan Connors of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Kenneth Chambers for the Northern District of California are prosecuting the case.
An indictment merely contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nonprofit Health Care Provider Agrees to Pay $750,000 to Resolve False Claims Act Allegations Involving Misbranded ContraceptivesRead the Press Release
SAN FRANCISCO – Salud Para La Gente, a nonprofit network of primary care clinics serving low-income individuals and families in Santa Cruz County and Monterey County, has agreed to pay a total of $750,000 to resolve allegations that it submitted false claims for payment to the Medicaid program in connection with its purchase and administration of misbranded contraceptives.
Among the services it provides, Salud offers contraceptive care, including etonogestrel marketed under the brand name Nexplanon, to Medicaid beneficiaries. Nexplanon is a thin rod that is inserted under the skin of a patient’s upper arm that, once implanted, works to prevent pregnancy. The United States alleged that between May 17, 2017, and Sept. 11, 2020, Salud purchased misbranded Nexplanon from an unlicensed wholesaler and administered the misbranded Nexplanon to Medicaid patients. According to the United States, Salud knowingly submitted false claims for payment to Medicaid by using incorrect National Drug Code numbers, unique drug identifiers used by the FDA for reporting and patient safety purposes, for the misbranded Nexplanon and for its administration.“Patient safety must be at the forefront of medical decision-making,” said United States Attorney Craig H. Missakian. “Using misbranded drugs jeopardizes public health and constitutes a serious False Claims Act violation. We will continue to hold violators accountable.”
“It’s clearly dangerous and unethical for health care providers to administer misbranded drugs obtained from unlicensed sources to their patients,” said Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG). “Working with our law enforcement partners, HHS-OIG will continue to aggressively protect the health and well-being of patients and the integrity of federal health care programs.”
Assistant U.S. Attorney Michelle Lo handled this matter. The resolution resulted from a coordinated effort between the U.S. Attorney’s Office for the Northern District of California, HHS-OIG, and FDA’s Office of Criminal Investigations.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former Rohnert Park Police Officers Sentenced to 30 Months and 20 Months in Federal Prison After Convictions for Conspiracy to Commit Extortion, Impersonating Federal Officers, Obstruction of Justice, and Other Charges Related to Marijuana Seizure SchemeRead the Press Release
SAN FRANCISCO – Former Rohnert Park police officer Joseph Huffaker, 41, of Rohnert Park, California, was sentenced to 20 months in federal prison, and Brendon Jacy Tatum, 43, of Santa Rosa, California, was sentenced to 30 months in federal prison, for their roles in a marijuana extortion scheme, impersonation of federal agents, and obstruction of justice. Senior U.S. District Judge Maxine M. Chesney handed down the sentences on May 6, 2026.
At the conclusion of a week-long trial in July 2025, a federal jury convicted Huffaker on six counts of extortion under color of official right, falsifying records in a federal investigation, impersonating a federal officer, and conspiracy to commit those offenses. Tatum pled guilty in December 2021 to conspiracy to commit extortion under color of official right, falsifying records in a federal investigation, and tax evasion, and testified as a witness at Huffaker’s trial. According to court documents and the evidence presented at trial, Huffaker and Tatum were both employed between 2012 and 2019 with the City of Rohnert Park Department of Public Safety (RPDPS) as police officers. The jury found that Huffaker and Tatum conspired to pull over drivers they suspected of possessing significant amounts of marijuana and extorted their marijuana by falsely claiming to be ATF agents and threatening to arrest drivers if they contested seizures of their property. The jury also found that Huffaker and Tatum conspired to obstruct justice by creating a false police report two months after their extortions and sending that report to the FBI.
According to court documents and the evidence presented at trial, RPDPS previously operated an interdiction team between 2014 and early 2017 that conducted traffic stops on vehicles along Highway 101 between Cloverdale and Rohnert Park in an effort to seize illegal drugs. In December of 2017, 11 months after the interdiction team had been disbanded, Huffaker and Tatum extorted significant quantities of marijuana from individuals, declaring to the individuals that they were ATF agents, that their property would be seized, and at times threatening to arrest and charge them. After extorting the marijuana, Huffaker and Tatum sold it for personal profit. These seizures occurred while the officers were not on duty and not wearing their uniforms or body-worn cameras.
In February 2018, the FBI received a complaint from a citizen who claimed to have been shaken down by police officers on the highway and an FBI agent asked Tatum for the police report related to the incident. Thereafter, the jury found that Huffaker and Tatum falsified a police Incident/Investigation Report regarding an unlawful December 18 traffic stop and marijuana seizure. Tatum then forwarded both the falsified press release and report to an FBI agent who was investigating the stop.
In addition to engaging in the extortion and obstruction of justice conspiracies with Huffaker in 2017 and 2018, Tatum admitted in his plea agreement that he engaged in additional criminal conduct. Specifically, Tatum admitted that in 2015 and 2016, he stole marijuana from the Rohnert Park police station, extorted marijuana from drivers on Highway 101, sold marijuana for personal profit, and committed tax evasion, netting himself over $400,000 in illicit proceeds.
United States Attorney Craig H. Missakian, FBI Acting Special Agent in Charge Matt Cobo, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.
In addition to the prison terms, Judge Chesney also sentenced Huffaker and Tatum to a three-year period of supervised release and ordered restitution in the amount of $301,145.70 for Tatum and $20,000 for Huffaker. Huffaker will begin serving his sentence on September 15, 2026, and Tatum will begin serving his sentence on January 11, 2027.
Assistant U.S. Attorneys Abraham Fine, Benjamin Kleinman, and Cynthia Frey are prosecuting the case with the assistance of Veronica Hernandez, Amala James, and Janice Pagsanjan. The prosecution is the result of an investigation by the FBI and the IRS-CI.Fremont Company Agrees to Pay Nearly One Million Dollars to Resolve False Claims Act Allegations Involving Paycheck Protection Program LoanRead the Press Release
SAN FRANCISCO – Fremont-based Innodisk USA has agreed to pay a total of $950,000 to settle allegations that it knowingly violated the False Claims Act when it received and retained a Paycheck Protection Program (PPP) loan, in violation of PPP rules.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. Applicants for a “second-draw” PPP loan were required to certify, among other things, that they, together with their affiliates, employed no more than 300 employees and that they had a decrease in gross receipts in excess of 25 percent compared to an earlier time period.
Innodisk USA is a subsidiary of Innodisk Corporation, a multinational Taiwanese company that is a service-driven provider of industrial embedded flash and DRAM memory products and technologies. The United States alleged that Innodisk USA applied for and obtained a second-draw PPP loan on March 17, 2021, even though the company was not eligible because it exceeded the requisite size standards when including affiliated entities, including its parent company, and because it had not experienced the requisite revenue reduction. According to the United States, despite knowing that it was not eligible for the second-draw loan, Innodisk USA sought and obtained forgiveness of the loan.
United States Attorney Craig H. Missakian and SBA General Counsel Wendell Davis made the announcement.
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act by Blockquote, Inc. Under those provisions, 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 ex rel. Blockquote, Inc. v. Innodisk Corp., USA, 3:24-cv-02949-WHO (N.D. Cal.). Blockquote, Inc. will receive $95,000 in connection with the settlement.
Assistant U.S. Attorney Savith Iyengar handled this matter. The resolution resulted from a coordinated effort between the U.S. Attorney’s Office for the Northern District of California and SBA’s Office of General Counsel.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
FCI Dublin Correctional Officer Sentenced to over 4 Years in Federal Prison for Sexually Abusing Female Inmate, Lying to Federal AgentsRead the Press Release
OAKLAND – Former Bureau of Prisons correctional officer Jeffrey Wilson was sentenced today to 52 months in prison for sexually abusing a female inmate at the Federal Correction Institution in Dublin, California, a low-security federal prison for females, and for making false statements to federal agents. U.S. District Judge Yvonne Gonzalez Rogers handed down the sentence.
Wilson, 34, of Eureka, Calif., pleaded guilty on Aug. 7, 2025, to five counts of sexual abuse of a ward and one count of making a false statement to federal agents.
Wilson was employed from July 2021 to September 2022 as a correctional officer at FCI Dublin, where he served as a health technician/paramedic. In that role, he was responsible for providing emergency assessment and medical care to the female inmates.
According to his plea agreement, around August 2021, he began interacting with a victim inmate after she began taking medication prescribed to her for seizures. He encouraged the victim to transfer from the prison to the FCI Dublin Camp where there were fewer medical staff who would see their interactions.
Wilson admitted to engaging in sexual acts on multiple occasions with the victim. He also provided the victim with a $60 pre-paid credit card and a cellphone while she was at the FCI Dublin Camp. The victim used that cellphone to take naked pictures of herself and send them to Wilson.
When he was interviewed by special agents from the Department of Justice Office of the Inspector General (DOJ OIG), Wilson falsely stated that he never had sexual contact with the victim inmate and that he had never given her contraband.
United States Attorney Craig Missakian, DOJ OIG Special Agent in Charge Jeremy Hunt, and FBI Acting Special Agent in Charge Matthew Cobo made the announcement.
Wilson is the ninth correctional officer to have either pleaded guilty or been convicted at trial as part of an ongoing federal investigation into sexual abuse of inmates at FCI Dublin. FCI Dublin was closed in 2024.
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FCI Dublin Investigation
As part of the Department of Justice’s ongoing investigation into FCI Dublin, 10 FCI Dublin correctional officers have been charged with crimes related to the sexual abuse of the female prisoners at the facility. The status of these cases is below:
DefendantCase NumberStatusWarden Ray J. Garcia4:21-cr-00429-YGRConvicted on all counts by jury on Dec. 8, 2022; sentenced to 70 months in prisonCO John Bellhouse4:22-cr-00066-YGRConvicted on all counts by jury on Jun. 5, 2023; sentenced to 63 months in prisonCO Darrell Smith (a/k/a “Dirty Dick Smith”)4:23-cr-00110-YGRCase dismissed on December 22, 2025, following two hung juriesChaplain James Highhouse4:22-cr-00016-HSGPleaded guilty on Feb. 24, 2022; sentenced to 84 months in prisonCO Ross Klinger4:22-cr-00031-YGRPleaded guilty on Feb. 10, 2022; sentenced to one year of home confinementCO Enrique Chavez4:22-cr-00104-YGRPleaded guilty on Oct. 27, 2022; sentenced to 20 months in prisonCO Andrew Jones4:23-cr-00212-YGRPleaded guilty on Aug.17, 2023; sentenced to 96 months in prisonCO Nakie Nunley4:23-cr-00213-YGRPleaded guilty on Sept. 5, 2023; sentenced to 72 months in prisonCO Lawrence Gacad4:25-cr-00181-YGRPleaded guilty on Aug. 7, 2025; sentenced to one year of home confinementCO Jeffrey Wilson4:25-cr-00180-YGRPleaded guilty on Aug. 7, 2025; sentenced to 52 months in prisonAssistant U.S. Attorneys Andrew Paulson, Alethea Sargent, Sailaja Paidipaty, and Molly Priedeman are prosecuting these cases with the assistance of Veronica Hernandez, Soana Katoa, and Amala James. The prosecutions are the result of an investigation by DOJ OIG and the FBI.