District of Hawaii
Press releases recorded for this federal judicial district.
Two Indicted for Fraudulent FEMA Claims for Lahaina Fire and California Fire Federal DisastersRead the Press Release
HONOLULU – Acting United States Attorney Ken Sorenson announced that Daylyn Harris, 34, and Chelsea Johnson, 32, of Honolulu, Hawaii, were arrested on July 15, 2025 and charged in a seven-count indictment returned by a federal grand jury on July 17, 2025.
The indictment alleges that Harris and Johnson conspired with each other and carried out a wire fraud scheme, wherein Harris and Johnson submitted false claims to the Federal Emergency Management Agency (“FEMA”), claiming to have suffered income, housing, and property losses as a result of two federal disasters, when, as Harris and Johnson both knew, they did not live in the disaster area or suffer any such losses. Specifically, Harris falsely claimed that he resided in Lahaina, Hawaii during the Lahaina fires federal disaster in August and September 2023, and that he lost housing and income, suffered medical bills, and lost property when, in fact, did not suffer such losses. Johnson assisted the fraudulent claim by posing as Harris’s Maui landlord. The indictment also alleges that in January 2025, Johnson falsely claimed to live in Pacific Palisades, California during the California fires federal disaster and claimed lost housing and other expenses. The indictment alleges that, together, Harris and Johnson received over $60,000 in disaster relief from FEMA.
If convicted of the charged offenses, the defendants face up to thirty years in prison and a fine of up to $1,000,000 for each count.
The charges in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
This case is being investigated by the Department of Homeland Security – Office of the Inspector General, with assistance from the Honolulu Police Department.
Assistant U.S. Attorney Michael F. Albanese is prosecuting the case.
Miske Enterprise Member Sentenced to 30 Years in Federal Prison for Racketeering Conspiracy, Robbery, and Drug TraffickingRead the Press Release
HONOLULU – Acting United States Attorney Ken Sorenson announced that Lance L. Bermudez, 34, of Honolulu, Hawaii was sentenced yesterday in federal court by U.S. District Chief Judge Derrick K. Watson to 360 months of imprisonment followed by five years of supervised release for conspiracy to distribute and possess with intent to distribute controlled substances, racketeering conspiracy, and Hobbs Act Robbery. Bermudez is the last defendant to be sentenced for his role in the Miske Enterprise.
As part of his 2022 plea agreement, Bermudez admitted that he and other members of the Enterprise participated in a murder-for-hire conspiracy with codefendant Michael J. Miske and other Enterprise members. Miske put a murder contract out on an individual he believed was cooperating with law enforcement. Bermudez agreed to commit the murder for $60,000 and laid in wait outside of the victim’s home on multiple occasions, waiting for the right opportunity to kill the victim. The murder did not ultimately occur because Miske eventually rescinded the contract. Bermudez also admitted to taking part in multiple attempted murders where he shot victims from his vehicle. Further, Bermudez admitted to burning a van at Miske’s direction that Bermudez later discovered was utilized in the abduction and murder of 21-year-old Johnathan Fraser. Bermudez also admitted to committing several armed robberies of Honolulu area drug dealers and then selling the stolen drugs to others in the community.
Bermudez was charged alongside twelve other defendants, all of whom pled guilty except for Michael J. Miske who proceeded to trial and was found guilty of racketeering conspiracy, murder, and 11 other felony charges on July 18, 2024.
Seven other members and associates of the Miske Enterprise pled guilty to various offenses in related cases.
“You terrorized this city and this county to a greater extent than anyone I can remember,” Judge Watson advised Bermudez during today’s sentencing before reciting the litany of racketeering acts for which the Court found Bermudez responsible. Judge Watson called out the “brazenness” and “unprecedented” nature of Bermudez’s acts of violence, noting that he had never seen the same level of violence even collectively among multiple coconspirators that here was attributed solely to Bermudez.
“For his grisly work in pummeling victims with his fists, Lance Bermudez was coined with the nickname, ‘The Hammah.’ Yesterday, Bermudez was at the business end of the federal justice hammer as U.S. District Chief Judge Derrick Watson sentenced him to a lengthy 30-year sentence for his violent role in promoting the nefarious and illicit activities of the Miske organization. Bermudez’s sentence is the final one to be handed down against the members of the Miske Enterprise and is the capstone of our investigation into the violent and corrupt activities of Michael Miske and his henchmen,” said Acting U.S. Attorney Ken Sorenson. “Our decade-long effort with our outstanding law enforcement partners has now resulted in the federal convictions of 20 Miske confederates who now can no longer victimize Hawaii’s citizens and communities. While the work against the Miske Enterprise is done, the people of Hawaii can rest assured that the United States Attorney’s Office for the District of Hawaii and our dedicated and resolute law enforcement partners at the Honolulu Division of the FBI, Internal Revenue Service, and Homeland Security Investigations, among others, will continue to tirelessly hunt down and prosecute those who operate violent criminal enterprises in our state and endanger our citizens.”
“Mr. Bermudez was a key member of the Miske Enterprise, actively participating in a longstanding pattern of violence and racketeering activity involving murder-for-hire, armed robbery, and drug trafficking,” said FBI Honolulu Special Agent in Charge David Porter. “This sentencing reflects years of collaboration between FBI Honolulu and our law enforcement partners. The FBI remains steadfast in its commitment to dismantle violent criminal enterprises, hold their members accountable, and pursue justice for victims.”
“Mr. Bermudez’s account of attempted murder-for-hire reminds us that even the worst crimes have a price,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “IRS-CI follows the money to uproot organizations that profit from violence.”
“Today's sentencing marks a significant step towards justice for the victims and the community terrorized by the Miske Enterprise. The severity of the crimes committed by Lance L. Bermudez underscores the necessity of our relentless collaborative efforts to dismantle such criminal organizations and ensure the safety and security of our citizens,” said Homeland Security Investigations Special Agent in Charge Lucy Cabral-DeArmas. “We remain steadfast in our commitment to holding accountable those who engage in such egregious acts of violence and criminal conduct.”
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Criminal Investigation Division of the Environmental Protection Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Honolulu Police Department, the Drug Enforcement Administration, the Coast Guard Investigative Service, the United States Marshals Service Fugitive Task Force, the Cybercrime Lab of the Department of Justice Criminal Division Computer Crime and Intellectual Property Section, the Hawaii Criminal Justice Data Center, the Honolulu Fire Department, the Hawaii National Guard, 93rd Civil Support Team, the Office of Investigations–Office of the Inspector General for the Social Security Administration, and the Department of Justice Office of the Inspector General.
Assistant U.S. Attorneys Mark Inciong, Michael Nammar, KeAupuni Akina, and Aislinn Affinito prosecuted the case.
Former Prison Guard Sentenced to 8 Years in Federal Prison for Sexually Abusing InmatesRead the Press Release
HONOLULU – Acting United States Attorney Ken Sorenson announced that Mikael Salvador Rivera, 48, of Kapolei, Hawaii, was sentenced today in federal court by Senior U.S. District Judge J. Michael Seabright to 96 months’ imprisonment followed by 3 years of supervised release for sexual abuse of wards.
Rivera was a correctional officer at the Federal Detention Center in Honolulu from approximately 2014 to 2018. As part of his prior guilty plea in March 2025, Rivera admitted that while on duty as a correctional officer, he ordered an inmate to participate in multiple sexual acts to which she did not consent and engaged in sexually abusive conduct with two additional inmates under his supervision. According to information provided to the Court, Rivera would leave cell doors unlocked so that he could enter or escort his victims out undetected. Rivera’s guilty plea came after he initially fled on the eve of trial, leading law enforcement on a days-long manhunt across Oahu.
At sentencing, Judge Seabright imposed an upward variance from the advisory Sentencing Guidelines range, stating that with respect to the offense conduct, “there is nothing in mitigation, nothing I see but a gross abuse of Mr. Rivera’s position of authority within FDC, and a gross abuse of that power in sexually abusing these three inmates over one calendar year.” Judge Seabright went on to state, “His conduct was the exact opposite of what was intended. You were supposed to help, to rehabilitate those in your care. Instead, you preyed on them. You became a predator to them.”
“Correctional officers serve an invaluable role in our justice system, working in dangerous environments where they are entrusted to ensure order in our detention facilities and the safety of our inmates. While nearly all federal correctional officers are hardworking, ethical, and honest, there are those very few who abuse their power over inmates. Their conduct erodes public faith in our institutions and justice system, and we must accordingly seek to investigate, prosecute, and punish those who abuse vulnerable inmates in federal custody. Those who violate the public trust will experience the full force of law and justice in the District of Hawaii,” said Acting U.S. Attorney Ken Sorenson. “Today’s lengthy sentence serves as a warning that sexual misconduct by federal correctional officers will be investigated, prosecuted, and severely punished.”
“Sexual abuse of individuals in custody by federal correctional officers is a profound breach of public trust. The Office of the Inspector General is committed to ensuring that those who violate that trust are held accountable for abusing their authority,” said Anne Walsh, Acting Special Agent in Charge of the Department of Justice Office of the Inspector General (DOJ OIG) Western Region.
“Not only did Mikael Rivera abuse the power of his position to commit horrific acts of sexual violence and silence his victims, but his actions undermined the efforts of all correctional officers,” said FBI Honolulu Special Agent in Charge David Porter. “Today’s sentence sends the clear message that the FBI will investigate and hold accountable anyone who violates federal law, regardless of their position.”
The investigation was conducted by the United States Department of Justice Office of the Inspector General (DOJ-OIG), with assistance from the Federal Bureau of Investigation (FBI).
Assistant U.S. Attorney Sara Ayabe for the District of Hawaii and Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section (PIN) prosecuted the case, with substantial assistance from former PIN Deputy Chiefs Jennifer Clarke and Marco Palmieri.
Big Island Resident Arrested and Charged with Possessing Methamphetamine, Cocaine, Firearms, and ExplosivesRead the Press Release
HONOLULU – Acting United States Attorney Ken Sorenson announced today that Shannan Hostetler, 54, of Pahoa, Hawaii, was arrested and charged by criminal complaint with possessing with intent to distribute and manufacture methamphetamine, possessing with intent to distribute cocaine, unlawful possessions of firearms, and unlawful possession of explosives. An initial appearance in federal court is scheduled for June 30, 2025.
Earlier this year, the Hawaii Police Department received a community tip indicating that a known narcotics trafficker was frequently visiting Hostetler’s property under a suspected arrangement to stash firearms, money, and narcotics. On June 24, 2025, Homeland Security Investigations executed a search warrant on Hostetler’s Pahoa properties. The search resulted in the seizure of, among other things, a Glock 43 handgun, shotguns, a bolt-action rifle, cocaine, and both oil and crystalized methamphetamine, as well as materials suggesting a methamphetamine-conversion lab was being operated on the premises. During the search, bomb-squad personnel from the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Maui Police Department, and the Kauai Police Department assisted case investigators by clearing and seizing suspected explosive devices from the premises.
If convicted of the charged offenses, Hostetler faces a maximum sentence of life in prison and fines of up to $10 million. The charges in the criminal complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
Less than 24 hours after the law enforcement concluded its search of Hostetler’s properties, an interested third party—having learned of the search— contacted investigators and turned over twenty more firearms, including at least five AR-15 style assault rifles, a 45 ACP carbine, a 12-gauge shotgun, and a 6.5 Grendel tactical rifle outfitted with a scope and bipod. Some of the firearms were loaded with extended magazines.
The case is being investigated by Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Hawaii Police Department, with assistance from the Maui and Kauai Police Departments. The case is being prosecuted by Assistant U.S. Attorney Jonathan D. Slack.
Big Island Attorneys and Businessman Found Guilty of BriberyRead the Press Release
HONOLULU – After a three-week trial before United States District Judge Jill A. Otake, a federal jury today found Paul Joseph Sulla, Jr., 78, Gary Charles Zamber, 55, and Rajesh P. Budhabhatti, 65, guilty of conspiracy to commit honest services wire fraud and nine counts of honest services wire fraud. Sulla was additionally convicted of money laundering. Sentencing is set for October 7, 2025 for Zamber, October 8, 2025 for Budhabhatti, and October 21, 2025 for Sulla. The defendants were permitted to remain released on bail pending sentencing.
At trial, the evidence showed that Sulla and Zamber, both attorneys living on the island of Hawaii (“Big Island”), and Budhabhatti, a private businessman on the Big Island, paid bribes and kickbacks to Alan Rudo, a Housing Specialist for the Hawaii County Office of Housing and Community Development, in exchange for Rudo using his official position to ensure the County approved three affordable housing agreements (AHAs) benefitting the defendants’ development companies Luna Loa Developments, LLC, West View Developments, LLC and Plumeria at Waikoloa, LLC. Although the defendants promised in the AHAs to build affordable housing for the citizens of Hawaii County, their development companies never built a single unit. Through the AHAs, the defendants fraudulently obtained at least $10,980,000 worth of land and excess affordable housing credits (AHCs). From that amount, the defendants paid or attempted to pay Rudo approximately $1,931,778 in bribes and kickbacks.
The defendants were convicted of one count of conspiracy to commit honest services wire fraud, which carries a maximum sentence of 20 years imprisonment, and nine counts of honest services wire fraud, each of which also carries a maximum sentence of 20 years. Sulla alone was charged with and convicted of money laundering, which carries a maximum sentence of ten years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Alan Rudo, who testified at trial, previously pled guilty in July 2022 to conspiring to commit honest services wire fraud in connection with the bribery and kickback scheme. Rudo is scheduled to be sentenced on August 13, 2025.
“Today’s verdict reiterates our unwavering message to those who bribe and attempt to buy the discretion of Hawaii’s public officials at the expense of the public’s trust and the integrity of our public institutions—you will be federally prosecuted and brought to justice,” said Acting United States Attorney Ken Sorenson. “Our office will continue to root out and vigorously pursue those who engage in public corruption or who violate their positions of public trust.”
“The defendants in this investigation defrauded their own community for personal financial gain,” said FBI Honolulu Special Agent in Charge David Porter. “The corruption of government officials corrodes public trust and weakens our communities. The FBI will continue to aggressively pursue these cases to protect and maintain public trust and hold criminals accountable.”
“This verdict marks an important step toward accountability and reinforces the importance of integrity in public service,” said County of Hawaii Mayor Kimo Alameda. “We understand the impact this case has had on our community and remain committed to restoring trust. Since the initial findings, the Office of Housing and Community Development has taken concrete actions to strengthen internal controls, improve oversight, and ensure that public resources are managed responsibly and transparently. These changes reflect our commitment to kuleana— our shared responsibility—to serve with integrity and protect community resources.”
The Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Mohammad Khatib and Margaret Nammar and Trial Attorney William Gullota, of the Department of Justice, Criminal Division, Public Integrity Section, prosecuted the case.
Hawaii Woman Pleads Guilty to Mail Fraud and Tax FraudRead the Press Release
A Hawaii woman pleaded guilty yesterday to defrauding her mortgage lender and conspiring to defraud the IRS by fraudulently obtaining a tax refund and then thwarting the IRS’ efforts to recoup it.
The following is according to court documents and statements made in court: Hannah Heart, of Honolulu, conspired with others to file a false 2014 individual income tax return in her name. As part of the conspiracy, Heart’s co-conspirators created a fake tax form purportedly issued by a mortgage lender to Heart, which she attached to her return. The form falsely reported that Heart had received income from a financial institution of more than $2.4 million, from which over $1.2 million in taxes had been withheld. As a result, Heart filed a tax return that falsely claimed she was entitled to a $464,904 refund, which the IRS paid.
When the IRS began trying to collect the fraudulent refund from Heart, she took several steps to thwart the IRS. For example, Heart deposited the refund check into a trust bank account and immediately transferred most of the balance to a separate bank account, both of which she controlled. She also sent numerous false, fraudulent, and frivolous letters to the IRS in response to IRS communications.
In addition, Heart helped another co-conspirator defraud the IRS using the same scheme. Heart and her co-conspirator deposited a second fraudulently obtained $1 million refund check from the IRS, payable to the co-conspirator.
In total, Heart caused a tax loss to the IRS of $1,618,985.54.
Heart also defrauded her mortgage lender, conspiring with others to do so. Heart took out a mortgage for her home in 2006 and stopped making payments in 2010 toward her mortgage. The mortgage lender initiated foreclosure proceedings in 2022 against Heart. In response, a co-conspirator sent the lender a fictitious document purporting to be a check for the full amount due for Heart’s mortgage. The lender initially accepted the check but later rejected it as fraudulent. Afterwards, Heart sent mail to the lender demanding that it accept the fraudulent check as full payment of her remaining balance.
In total, Heart intended to defraud the mortgage lender of $2,066,522.22.
Heart will be sentenced at a later date. She faces a maximum penalty of 20 years in prison on the charge of mail fraud and a maximum penalty of five years in prison for the charge of conspiracy to defraud the IRS. She also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Kenneth M. Sorenson for the District of Hawaii made the announcement.
IRS Criminal Investigation, the Treasury Inspector General for Tax Administration, and FBI are investigating the case.
Trial Attorneys Sarah Kiewlicz and Megan Jones of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii are prosecuting the case.
Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-led Nationwide Crackdown, Including 2 in the District of HawaiiRead the Press Release
HONOLULU – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
“The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”
“Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”
“Our pledge to protect Hawaii’s keiki is among the most solemn and critical commitments we make to our local community,” said Acting U.S. Attorney Ken Sorenson. “Working with our outstanding law enforcement partners we have consistently and aggressively pursued child predators and those who seek to exploit children either for profit or their own twisted gratification. Our efforts in Operation Restore Justice, including last week’s arrests, demonstrate the U.S. Attorney’s Office’s commitment to investigate, charge, and convict those who violate federal child protection laws.”
“The FBI is unwavering and united with its partners in the fight to protect children,” said FBI Honolulu Special Agent in Charge David Porter. “Our collaboration with state and local law enforcement allows us to extend our reach into communities, respond faster to threats, and ensure survivors get the support they need. FBI Honolulu will continue to conduct proactive arrest operations targeting those seeking to harm our children—we’ll work to get these predators off the streets and keep our kids safe.”
In the District of Hawaii, two individuals were arrested and charged with federal crimes, including Dominick Kalikokaeoeo Howard, who was charged by criminal complaint with distributing child pornography, and David Martin Garcia Perez, who was charged by criminal complaint with receiving and possessing or accessing child pornography.
Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms. In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.
In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested about eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, N.Y.
This effort follows the Department’s observance of National Child Abuse Prevention Month in April, and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.
The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.
The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.
Other online resources:
Electronic Press Kit
Violent Crimes Against Children
How we can help you: Parents and caregivers protecting your kids
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Charged in Scheme to Defraud Department of Veterans Affairs of over $9.1MRead the Press Release
HONOLULU – Three men were charged with participating in a scheme to defraud the U.S. Department of Veterans Affairs (VA) of over $9.1 million in education benefits, including funds from the Post 9/11 GI Bill education benefit program. One of the men has pleaded guilty for his role in the scheme.
According to court documents, Brian Matsudo, 58, of Honolulu, Hawaii, Marshall Scott, 39, of Kapolei, Hawaii, and Raheem Wells, 37, of Indianapolis, Indiana, conspired to defraud the VA. Matsudo was the owner of a massage therapy training school in Honolulu, Hawaii. From approximately November 2016 to November 2022, Matsudo conspired with Scott and others to obtain tuition assistance payments from the VA by intentionally failing to disclose that Matsudo’s massage training school was not in compliance with applicable VA rules and regulations.
As alleged in the indictment, Scott began working for the massage training school owned by Matsudo in or about November 2016. As part of the conspiracy, Scott submitted enrollment certification forms to the VA on behalf of at least 40 military veterans supposedly enrolled at the massage training school. Scott knew that these forms contained false enrollment information and falsely certified that the school had complied with applicable rules and regulations. Wells was a student at the massage training school in 2020 and 2021. From about May 2020 to November 2022, Wells and Scott recruited “students” who allowed the school to lie to the VA by falsely representing that they were actually enrolled in courses.
Both Scott and Wells allegedly profited from the scheme. Matsudo paid Scott for each person that he and Wells had recruited with the proceeds of the tuition payments made by the VA. Wells received monthly payments from the individuals
he recruited to participate in the scheme.
In April 2025, Matsudo pleaded guilty an Information charging to one count of conspiracy to commit wire fraud and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
In April 2025, Scott and Wells were both charged in an Indictment with one count of conspiracy to commit wire fraud and three counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count. Wells was also charged with obstruction of justice for instructing a witness to lie to federal law enforcement agents. If convicted, he faces a maximum penalty of 20 years in prison.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Acting U.S. Attorney Kenneth M. Sorenson for the District of Hawaii; Special Agent in Charge Dimitriana Nikolov of the VA Office of Inspector General (VA OIG); and Special Agent in Charge David Porter of the FBI Honolulu Field Office made the announcement.
The VA OIG and FBI are investigating the cases.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section is prosecuting the case against Matsudo, with substantial assistance from Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section. Trial Attorney Glasner and Assistant U.S. Attorney Craig Nolan for the District of Hawaii are prosecuting the case against Scott and Wells.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Individuals Charged in Scheme to Defraud Department of Veterans Affairs of over $9.1MRead the Press Release
Three men were charged with participating in a scheme to defraud the U.S. Department of Veterans Affairs (VA) of over $9.1 million in education benefits, including funds from the Post 9/11 GI Bill education benefit program. One of the men has pleaded guilty for his role in the scheme.
According to court documents, Brian Matsudo, 58, of Honolulu, Hawaii, Marshall Scott, 39, of Kapolei, Hawaii, and Raheem Wells, 37, of Indianapolis, Indiana, conspired to defraud the VA. Matsudo was the owner of a massage therapy training school in Honolulu, Hawaii. From approximately November 2016 to November 2022, Matsudo conspired with Scott and others to obtain tuition assistance payments from the VA by intentionally failing to disclose that Matsudo’s massage training school was not in compliance with applicable VA rules and regulations.
As alleged in the indictment, Scott began working for the massage training school owned by Matsudo in or about November 2016. As part of the conspiracy, Scott submitted enrollment certification forms to the VA on behalf of at least 40 military veterans supposedly enrolled at the massage training school. Scott knew that these forms contained false enrollment information and falsely certified that the school had complied with applicable rules and regulations. Wells was a student at the massage training school in 2020 and 2021. From about May 2020 to November 2022, Wells and Scott recruited “students” who allowed the school to lie to the VA by falsely representing that they were actually enrolled in courses.
Both Scott and Wells allegedly profited from the scheme. Matsudo paid Scott for each person that he and Wells had recruited with the proceeds of the tuition payments made by the VA. Wells received monthly payments from the individuals he recruited to participate in the scheme.
In April 2025, Matsudo pleaded guilty to one count of conspiracy to commit wire fraud and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Scott and Wells were both charged with one count of conspiracy to commit wire fraud and three counts of wire fraud. If convicted, they face a maximum penalty of 20 years in prison on each count. Wells was also charged with obstruction of justice for instructing a witness to lie to federal law enforcement agents. If convicted, he faces a maximum penalty of 20 years in prison.
Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Acting U.S. Attorney Kenneth M. Sorenson for the District of Hawaii; Special Agent in Charge Dimitriana Nikolov of the VA Office of Inspector General (VA OIG); and Special Agent in Charge David Porter of the FBI Honolulu Field Office made the announcement.
The VA OIG and FBI are investigating the cases.
Trial Attorney Ariel Glasner of the Criminal Division’s Fraud Section is prosecuting the case against Matsudo, with substantial assistance from Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section. Trial Attorney Glasner and Assistant U.S. Attorney Craig Nolan for the District of Hawaii are prosecuting the case against Scott and Wells.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Miske Enterprise Member Sentenced to 7 Years in Federal Prison for Racketeering Conspiracy and Role in Kidnapping and Murder of Johnathan FraserRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Delia Fabro-Miske, 30, of Honolulu, was sentenced yesterday in federal court by U.S. District Judge Derrick K. Watson to 84 months of imprisonment, followed by 3 years of supervised release for racketeering conspiracy. Fabro-Miske pled guilty on January 12, 2024, in the middle of jury selection, to conspiring to conduct and participate in the conduct of the affairs of a racketeering enterprise, the “Miske Enterprise,” through racketeering activity that included bank fraud, obstruction of justice, and wire fraud.
Fabro-Miske admitted that she and codefendant Michael J. Miske committed bank fraud by submitting fraudulent paperwork in order to obtain leases for two vehicles that were used for one of Miske’s businesses. Fabro-Miske also obstructed a joint investigation into another of Miske’s businesses, Kamaaina Termite and Pest Control (“KTPC”), which was conducted by the Environmental Protection Agency and the Hawaii Department of Agriculture (“HDA”). At Miske’s direction, Fabro-Miske submitted to HDA falsified fumigation logs, which claimed that she was the certified applicator of chemicals on hundreds of jobs. In reality, most of the listed jobs were completed by unlicensed applicators. Fabro-Miske also fraudulently obtained Social Security Administration (“SSA”) survivor benefits at Miske’s direction by having her wages at KTPC decreased below the SSA benefits income threshold. At the same time, Miske paid Fabro-Miske in benefits that were not reported to the SSA or Internal Revenue Service.
Additionally, according to information provided to the Court, in or about 2017, Miske placed Fabro-Miske in charge of his businesses in an attempt to preserve and conceal his assets in anticipation of federal prosecution. In practice, Fabro-Miske carried out Miske’s wishes and acted at his direction. Fabro-Miske assisted in a fraudulent scheme committed through Miske’s businesses, which involved submitting false filings to the Department of Commerce and Consumer Affairs that permitted the businesses to operate under fraudulently obtained and maintained licenses. Miske Enterprise members then falsely represented to customers that Miske’s businesses were properly licensed. Between 2017 and 2020, the businesses generated millions of dollars in income annually. As the head of Miske’s businesses, Fabro-Miske was also responsible for the proper and safe application of pesticides and other chemicals at customers’ homes. Information provided to the Court, however, showed that fumigations were regularly conducted without proper supervision or chemicals. Chief Judge Watson stated that Fabro-Miske’s work at Miske’s businesses “funded any number of crimes that we heard months and months of testimony” about in Miske’s trial, and her assistance “allowed Mr. Miske to run rampant in this community.”
Finally, the Court determined that Fabro-Miske was also responsible for participating in a conspiracy with other Miske Enterprise members to kidnap and murder 21-year-old Johnathan Fraser. According to information provided to the Court, Caleb Miske – Miske’s son and Fabro-Miske’s husband – and Fraser were driving together when the two were involved in a car crash in November 2015. Caleb Miske ultimately passed away from his injuries, and Miske blamed Fraser for his son’s death and enlisted several Miske Enterprise members to assist in his plan to murder Fraser. As part of that plan, Miske directed Fabro-Miske to rekindle her friendship with Fraser and his girlfriend and to lure them into living with her at an apartment paid for by Miske. On July 30, 2016, Fabro-Miske took Fraser’s girlfriend on a “spa day” paid for by Miske, ensuring that Fraser would be isolated when he was kidnapped. Fraser was never seen again after that day. Due to Miske’s death in December 2024, Chief Judge Watson explained that “the person most involved in Mr. Fraser’s demise will not ever be sentenced by this Court.” While Chief Judge Watson found that Fabro-Miske did not “directly and personally kill” Fraser and determined her to be a minimal participant in the kidnapping and murder conspiracy, he noted that there was “no doubt” that her actions led to Fraser’s murder and that the circumstances painted a “strong and clear picture” of a conspiracy to commit kidnapping murder in aid of racketeering.
Fabro-Miske was charged alongside twelve other defendants, all of whom pled guilty except for Miske, who proceeded to trial and was found guilty of racketeering conspiracy, murder, and 11 other felony charges on July 18, 2024. Seven other members and associates of the Miske Enterprise pled guilty to various offenses in related cases.
“Delia Fabro-Miske was an integral member of the Miske Enterprise, which terrorized, exploited, and defrauded our community for decades. She participated in Miske’s bank frauds, social security fraud, falsification of fumigation records, and the concealment of Miske’s illegally obtained assets, and was a vital cog in the plot to murder of Johnathan Fraser. Fabro-Miske’s sentence yesterday demonstrates that those who occupy even the lower rungs of Hawaii’s criminal enterprises will pay a steep price when they face justice in federal court,” said Acting U.S. Attorney Ken Sorenson. “The dismantling of the Miske Enterprise represents one of the most significant law enforcement efforts in the history of Hawaii law enforcement, and it would not have been possible without the tremendous and dedicated work of our partners at the Honolulu Division of the Federal Bureau of Investigation, Internal Revenue Service, Homeland Security Investigations, and Environmental Protection Agency, among many others.”
“Ms. Fabro-Miske was a key member in the Miske Enterprise fraud schemes, actively participating in defrauding the government and taxpayers,” said FBI Honolulu Special Agent in Charge David Porter. “This sentencing reflects years of collaboration between FBI Honolulu and our law enforcement partners. The FBI remains steadfast in its commitment to dismantle violent criminal enterprises, hold their members accountable, and pursue justice for victims.”
“Our investigators follow the money because criminal organizations profit at the expense of public safety,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Ms. Fabro-Miske’s racketeering conviction is a reminder that, in the end, crime really doesn’t pay.”
“The sentencing of Ms. Fabro-Miske underscores HSI’s commitment to disrupting and dismantling criminal organizations in Hawaii,” said HSI Special Agent in Charge Lucy Cabral-DeArmas. “HSI will continue to hold accountable those who significantly harm our communities by breaking federal laws. By bringing justice to the Miske Enterprise, HSI sends the message that we will not tolerate any violent activity on our islands.”
“By falsifying documents, defendant obstructed EPA and the state’s criminal investigation of a pesticide applicator that illegally applied restricted use pesticides,” said Benjamin Carr, Special Agent in Charge for the Environmental Protection Agency’s Criminal Investigation Division in Hawaii. “Yesterday’s sentencing reflects the seriousness of defendant’s fraudulent conduct and the importance of complying with pesticide reporting requirements so EPA and Hawaii Department of Agriculture can keep our communities safe.”
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligencedriven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Criminal Investigation Division of the Environmental Protection Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Honolulu Police Department, the Drug Enforcement Administration, the Coast Guard Investigative Service, the United States Marshals Service Fugitive Task Force, the Cybercrime Lab of the Department of Justice Criminal Division Computer Crime and Intellectual Property Section, the Hawaii Criminal Justice Data Center, the Honolulu Fire Department, the Hawaii National Guard, 93rd Civil Support Team, the Office of Investigations–Office of the Inspector General for the Social Security Administration, and the Department of Justice Office of the Inspector General.
Assistant U.S. Attorneys Mark Inciong, Michael Nammar, KeAupuni Akina, and Aislinn Affinito prosecuted the case.
Waianae Man Sentenced to 14 Years for Methamphetamine Distribution and Operating Illegal Chicken FightsRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Edward Caspino, 47, of Waianae, was sentenced today in federal court by U.S. District Judge J. Michael Seabright to 168 months of imprisonment followed by 5 years of supervised release for distribution of methamphetamine and operating an illegal gambling business. Judge Seabright also ordered that the defendant forfeit any interest in more than $600,000 in cash seized by investigators in this case, and any interest in a 10-acre real property in Waianae that was used to host the illegal gambling business.
According to court records, Caspino distributed a total of three pounds of methamphetamine on three occasions in July 2021. With respect to the gambling charges, Caspino organized and conducted a large-scale chicken fighting operation at his property in Waianae from as early as February 2021 through March 2023. He and his five co-defendants hosted regular chicken fighting events that constituted illegal gambling under the laws of the State of Hawaii. Each chicken fight event involved numerous individual chicken fights, during which hundreds of spectators and participants bet on the outcome of the fights.
Caspino is the first to be sentenced among the six illegal gambling business conspirators. Co-defendants William Caspino, Lavern Joseph, Kerilyn Caspino, and Fausto Aragon, Jr. each pled guilty to charges related to the illegal gambling conspiracy. Co-defendant Howard Unebasami was convicted of conspiracy and operating an illegal gambling business by a jury after a four-day trial in March 2025.
“Today’s lengthy sentence demonstrates that federal authorities will work together to put behind bars those responsible for illegal gambling operations and the community violence and drug trafficking tied to them,” said Acting U.S. Attorney Ken Sorenson. “This prosecution has already secured convictions against five coconspirators, and Caspino’s 168-month sentence stands as a stark warning: running an illegal gambling business in Hawaii carries serious and lasting consequences under federal law.”
Anthony Chrysanthis, Deputy Special Agent in Charge for the DEA Los Angeles Field Division, which oversees Hawaii, said today’s announcement underscores the agency’s commitment to halt the flow of drugs on the island. “The methamphetamine epidemic continues to threaten the health, safety and wellbeing of our communities. We are determined to intercept drug suppliers and to disrupt their criminal activities, at every point. DEA will continue to work with partners to safeguard our residents.”
“Today’s sentencing of Mr. Caspino and the guilty pleas of the co-defendants is a testament to HSI’s unwavering commitment to combating illegal narcotics and gambling operations that threaten the safety and well-being of our communities,” said HSI Special Agent in Charge Lucy Cabral-DeArmas. “We will continue to pursue justice and hold accountable those who violate federal laws designed to protect our communities.”
“FBI Special Agents – along with our partner agencies – work relentlessly every day to protect our communities from the dangers of drug trafficking organizations,” said FBI Honolulu Special Agent in Charge David Porter. “Today’s sentencing sends a strong message that we will use every available resource to investigate, disrupt, and dismantle these organizations.”
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Coast Guard Investigative Service, and the Honolulu Police Department.
Assistant U.S. Attorney Michael F. Albanese prosecuted the case.
Mexican National Sentenced to over 12 Years in Federal Prison for Narcotics, Firearm, and Immigration ChargesRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Juan Carlos Espinoza Lopez, 49, of Mexico, was sentenced today in federal court by Chief U.S. District Judge Derrick K. Watson to 151 months of imprisonment followed by five years of supervised release for possessing with the intent to distribute methamphetamine and heroin, being an illegal alien in possession of a firearm and ammunition, and illegal reentry. Espinoza Lopez pled guilty to these charges on December 17, 2024.
In his plea agreement, Espinoza Lopez admitted that he was a native and citizen of Mexico and had been removed from the United States on four occasions, mostly recently in 2022. He reentered the United States and traveled to Hawaii where he was apprehended in April 2024, while in Ocean View, Hawaii, at which time he possessed with the intent to distribute 176 grams of methamphetamine and 184 grams of heroin, as well as a Colt AR-15 rifle loaded with twenty-seven rounds of ammunition.
At sentencing, Judge Watson explained that Espinoza Lopez’s drug dealing, which was poisoning the community, was aggravated by the defendant’s possession of a loaded firearm as well as his illegal presence in the United States. Judge Watson further noted Espinoza Lopez’s two prior felony convictions made it “difficult” to accept his statement of remorse.
“This prosecution and today’s lengthy sentence deliver the clear message that when you come to Hawaii as an illegal alien for the purpose of brazenly and repeatedly violating our nation’s laws, you will be federally prosecuted and sentenced to a long period of imprisonment,” stated Acting U.S. Attorney Ken Sorenson. “We will not tolerate those who exploit our borders, endanger our citizens, and profit from the addiction, misery, and violence that accompany the trafficking of drugs in our communities.”
This case was investigated by Homeland Security Investigations and the Hawaii Police Department.
Assistant U.S. Attorney Darren W.K. Ching prosecuted the case.
Armed Drug Dealer Who Sold Fatal Dose of Cocaine to U.S. Marine Sentenced to 12 Years in Federal PrisonRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Rayshaun Ducos, 27, of Honolulu, Hawaii, was sentenced today by Senior U.S. District Judge J. Michael Seabright to 144 months in federal prison for possessing with intent to distribute cocaine and possessing firearms in furtherance of his drug trafficking. Ducos pled guilty to these charges on December 11, 2024.
As part of his prior guilty plea, Ducos admitted he sold cocaine to a 25-yearold active-duty United States Marine, who later fatally overdosed on it. Ducos also admitted that, just days after the Marine’s death, as law enforcement attempted to execute a federal search warrant at his Waikiki residence, he flushed cocaine down the toilet in an attempt to obstruct the investigation. At the time of his arrest, Ducos possessed two privately made firearms—a loaded 9mm pistol and a 5.56mm caliber AR pistol—also known as “ghost guns.” Ducos admitted he possessed these firearms in connection with his cocaine trafficking. Investigators also recovered a drum magazine capable of holding 100 rounds of ammunition, almost 300 rounds of ammunition, over $30,000 in U.S. currency, and cocaine.
At sentencing, Judge Seabright imposed an upward variance from the advisory Sentencing Guidelines range, finding that a “young individual who died from the cocaine,” Ducos’s possession of two “ghost guns,” and his obstructive conduct were aggravating factors.
“This case demonstrates that drug trafficking is not a victimless crime,” stated Acting U.S. Attorney Ken Sorenson. “A young man is dead because of Mr. Ducos’s actions. Selling drugs endangers lives. Doing so while armed makes an already deadly trade even more dangerous and puts the general public at significant risk from the violence that is endemic to the illegal drug trade. We will prosecute armed drug dealers aggressively because there is no place for them in Hawaii.”
The investigation was conducted by the Drug Enforcement Administration and the U.S. Naval Criminal Investigative Service. Assistant U.S. Attorneys Sara D. Ayabe and Thomas Muehleck prosecuted the case.
Armed Drug Dealer from Oahu Sentenced to 170 Months in Federal PrisonRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Ryan “Junior” Guzman, 40, of Honolulu, Hawaii, was sentenced today in federal court by Chief U.S. District Judge Derrick K. Watson to 170 months in federal prison for distributing methamphetamine.
As part of his prior guilty plea, Guzman admitted that on March 13, 2023, he distributed one pound of methamphetamine to a third party in the Magic Island parking lot in downtown Honolulu. He also admitted that in June 2024, he possessed a privately made firearm, known as a “ghost gun,” loaded with 15 hollow point rounds. Guzman further admitted he possessed that firearm in connection with his methamphetamine trafficking.
This case was investigated by the Drug Enforcement Administration and Honolulu Police Department.
Assistant U.S. Attorney Wayne A. Myers prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Mexican National Indicted for Illegal Reentry After Three Prior Removals and Two Illegal Reentry Felony ConvictionsRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced today that a federal grand jury returned an indictment against Abraham Moreno Garcia, 51, of Mexico, charging him with being an illegal alien present in the United States after having been previously convicted of a felony and removed from the United States.
According to a previously filed criminal complaint, Moreno Garcia was removed to Mexico at least three times and has two felony convictions for illegally reentering the United States. In 2019, he was convicted in the District of Hawaii for illegal reentry and sentenced to five months in federal prison. After serving his sentence, he was removed to Mexico in March of 2019. He later reentered the United States illegally and was arrested on Hawaii Island in March of 2025.
If convicted of the charged offense, Moreno Garcia would face up to ten years in prison and a fine of up to $250,000.
The charge in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
This case is being investigated by Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
California Man Pleads Guilty to Fentanyl and Methamphetamine Trafficking in Downeast Maine, HawaiiRead the Press Release
PORTLAND, Maine: A California man, Codee Houston, 33, pleaded guilty today in U.S. District Court in Bangor to conspiring to distribute and possess with intent to distribute controlled substances and conspiring to commit money laundering. In addition, Houston agreed to the transfer of a pending case from the District of Hawaii and pleaded guilty to four counts of possessing controlled substances with intent to distribute.
According to court records, from May 2022 through May 2023, Houston and others were part of a conspiracy to traffic methamphetamine in Maine. While living in California, Houston shipped large quantities of methamphetamine from California to Maine. In Maine, his coconspirators distributed the methamphetamine in the Downeast region of the state. Proceeds from the sale of the methamphetamine were sent to Houston using various money services, including Walmart2Walmart, Cash App, and Venmo. He enlisted the aid of coconspirators to use their identifications and accounts to receive the money. He did this to conceal and disguise his involvement in the transactions and the money laundering.
From April 2023 through September 2023, Houston conducted similar acts in Hawaii, distributing fentanyl and methamphetamine. On four separate occasions he shipped packages from California to Hawaii that contained controlled substances. The substances were later tested and confirmed to be pressed fentanyl pills, fentanyl powder, and methamphetamine.
For the most serious offenses, Houston faces a mandatory term of imprisonment of 10 years up to life imprisonment and a maximum fine of $10 million to be followed by five years to life of supervised release.
Houston will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the Maine case with assistance from the U.S. Postal Inspection Service, Ellsworth Police Department, Maine Drug Enforcement Agency, Holden Police Department, and Hancock County Sheriff’s Office. Homeland Security Investigations investigated the Hawaii case with assistance from the U.S. Postal Inspection Service.
###
Convicted Felon Arrested and Charged After Being Found with Defaced 9mm Handgun, Ammunition, and Illegal Machine Gun Conversion DeviceRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced today that Chris Pham, 21, of Honolulu, Hawaii, was charged yesterday by criminal complaint with illegally possessing a firearm as a convicted felon. A detention hearing in federal court is scheduled for March 20, 2025.
According to court documents, on March 12, 2025, law enforcement encountered Pham and found he was carrying a fully loaded 9mm semiautomatic handgun with a defaced serial number. Pham was also carrying an additional magazine with 13 rounds of 9mm ammunition. During a search of Pham’s residence, law enforcement recovered a machine gun conversion device designed to turn a semiautomatic handgun into a fully automatic handgun. Law enforcement previously located an Instagram video showing Pham firing a fully automatic handgun into the air in public.
If convicted of the charged offense, Pham faces up to fifteen years in prison and a fine of up to $250,000.
The charge in the criminal complaint is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
This case is being investigated by the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Honolulu Police Department.
It is being prosecuted by Assistant U.S. Attorney Sara D. Ayabe.
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 (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhoods (PSN).
Mexican National with Multiple Drug Felonies Indicted for Trafficking Methamphetamine and Illegal Reentry After Being Deported Four TimesRead the Press Release
HONOLULU, Hawaii – Acting United States Attorney Kenneth M. Sorenson announced today that a federal grand jury returned an indictment against Enrique Gonzalez Jacobo, 59, of Mexico, charging him with attempting to possess with intent to distribute methamphetamine and being an illegal alien present in the United States after having been previously convicted of a felony and removed from the United States.
According to information presented in court, Gonzalez Jacobo has been removed to Mexico at least four times and has three prior felony convictions related to drug trafficking. In July 2024, Gonzalez Jacobo was located in Hilo, Hawaii, after having been removed from the United States, and was arrested while attempting to take possession of a package containing over five pounds of methamphetamine hidden inside a stuffed animal.
If convicted of the charged offenses, Gonzalez Jacobo faces up to life in prison, a mandatory minimum term of ten years, and a fine of up to $10,000,000.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
This case is being investigated by Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Lauren Nakamura.
Mexican National Indicted for Illegal Reentry After Six Prior Removals, a Federal Firearms Conviction, and Three Illegal Reentry Felony ConvictionsRead the Press Release
HONOLULU, Hawaii – Acting United States Attorney Kenneth M. Sorenson announced today that a federal grand jury returned an indictment against Navor Salas Cruz, 52, of Mexico, charging him with being an illegal alien present in the United States after having been previously convicted of a felony and removed from the United States.
According to a previously filed criminal complaint, Salas Cruz has been removed to Mexico at least six times and has three felony convictions for illegally reentering the United States. In 2018, he was convicted in the District of Hawaii for illegal reentry and illegally possessing firearms and ammunition as a felon. He was sentenced to 30 months in federal prison. After serving his sentence, he was removed to Mexico in March 2020. He later reentered the United States illegally and was arrested on Kauai in February 2025.
If convicted of the charged offense, Salas Cruz would face up to ten years in prison and a fine of up to $250,000.
The charge in the indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
This case is being investigated by Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Darren W.K. Ching.
Former Prison Guard Pleads Guilty to Sexually Abusing InmatesRead the Press Release
HONOLULU – A Hawaii man pleaded guilty yesterday to sexual abuse of inmates under his custody or control.
According to court documents, Mikael Rivera, 47, of Kapolei, was a correctional officer at the Federal Detention Center in Honolulu from approximately 2014 to 2018. While on duty as a correctional officer, Rivera committed multiple sexual acts with one inmate who did not consent and engaged in sexually abusive conduct with two additional inmates under his supervision.
Rivera pleaded guilty to six counts of sexual abuse of a ward. He is scheduled to be sentenced on July 3 and faces a maximum penalty of 15 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Ken Sorenson for the District of Hawaii, Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, and Special Agent in Charge Zachary Shroyer of the Department of Justice Office of the Inspector General (DOJ-OIG) Western Region made the announcement.
DOJ-OIG is investigating the case with assistance from the FBI.
Assistant U.S. Attorney Sara Ayabe for the District of Hawaii and Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case, with substantial assistance from former PIN Deputy Chiefs Jennifer Clarke and Marco Palmieri.
Former Prison Guard Pleads Guilty to Sexually Abusing InmatesRead the Press Release
A Hawaii man pleaded guilty yesterday to sexual abuse of inmates under his custody or control.
According to court documents, Mikael Rivera, 47, of Kapolei, was a correctional officer at the Federal Detention Center in Honolulu from approximately 2014 to 2018. While on duty as a correctional officer, Rivera committed multiple sexual acts with one inmate who did not consent and engaged in sexually abusive conduct with two additional inmates under his supervision.
Rivera pleaded guilty to six counts of sexual abuse of a ward. He is scheduled to be sentenced on July 3 and faces a maximum penalty of 15 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department's Criminal Division, Acting U.S. Attorney Ken Sorenson for the District of Hawaii, and Special Agent in Charge Zachary Shroyer of the Department of Justice Office of the Inspector General (DOJ-OIG) Western Region made the announcement.
DOJ-OIG is investigating the case with assistance from the FBI.
Trial Attorney Nicole Lockhart of the Criminal Division’s Public Integrity Section (PIN) and Assistant U.S. Attorney Sara Ayabe for the District of Hawaii are prosecuting the case, with substantial assistance from former PIN Deputy Chiefs Jennifer Clarke and Marco Palmieri.
Owner of Oahu Physical Therapy Clinic Sentenced to 9 Months in Federal Prison for Health Care FraudRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Stephen Timothy Wells, 41, of Waialua, was sentenced yesterday in federal court by U.S. District Judge Jill A. Otake to 9 months of imprisonment followed by 3 years of supervised release for health care fraud. Wells, the owner of Oahu Spine and Rehab, a physical therapy clinic with locations in Kailua and Aiea, pleaded guilty to the charge on September 27, 2024. As part of his sentence, Wells was also ordered to pay restitution to TRICARE, a healthcare program for United States military service members and their families, and Medicare totaling $392,157.20.
In his plea agreement, Wells admitted that from July 2013 through early 2020, he submitted false claims for payment for physical therapy services to TRICARE and Medicare. Wells used individuals not trained in physical therapy, including massage therapists, athletic trainers, personal trainers, and an individual who had no professional licenses or certifications whatsoever, to provide physical therapy services to patients. Wells admitted that he knew these individuals were not authorized providers and that he could not legitimately bill TRICARE and Medicare for physical therapy services rendered by them, even under supervision. Nevertheless, Wells billed the programs as though the services had been provided by licensed practitioners.
“Tens of billions of dollars are lost to health care fraud each year, robbing Americans of vitally needed quality health services,” said Acting U.S. Attorney Ken Sorenson. “Over a nearly seven-year period, the defendant endeavored to bilk our nation’s taxpayer-funded TRICARE and Medicare programs out of as much money as possible. He diverted scarce program dollars from military service members and their families, as well as elderly and disabled Americans—some the most deserving and physically and financially vulnerable members of our society. Today’s sentence should serve as a warning to those who attempt to cheat our taxpayer funded insurance programs: you will be caught and when you are, a prison sentence awaits.”
This case was investigated by the Defense Criminal Investigative Service, the Office of Inspector General of the Department of Health and Human Services, the Federal Bureau of Investigation, and the U.S. Department of Veterans Affairs, Office of Inspector General.
Assistant U.S. Attorneys Mohammad Khatib and Rebecca Perlmutter prosecuted the case.
Honolulu Man Sentenced to 151 Months in Prison for Child Exploitation of Multiple MinorsRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Jonathan Farr, 31, of Honolulu, was sentenced today in federal court by U.S. District Judge Shanlyn A.S. Park to 151 months of imprisonment followed by 30 years of supervised release for receipt of child pornography. Farr will also be required to pay $3,000 in restitution to two minor victims and register as a sex offender when he is released. Farr previously pled guilty on February 14, 2024.
In his plea agreement, Farr admitted that from approximately June 2019 through May 2020, he used the internet to contact two minor females and engaged in sexually explicit conversations with them. Farr also solicited and received images and videos of the minors engaged in sexually explicit conduct, including masturbation videos.
In Court at sentencing, the government explained that Farr not only groomed the minors over time and solicited sexually explicit images and videos, `but also distributed those videos to others, including to other minors. Farr also discussed purchasing flights for the minors to travel to Hawaii or for him travel to the mainland where they were located. According to information provided to the Court, Farr’s predatory conduct included additional victims beyond the two minors who were victimized as part of the federal charges. Farr admitted to law enforcement and told other minor victims that he had hands-on sexual contact with at least three minor females and another minor, all located in Hawaii.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation’s Violent Crimes Against Children Section. Assistant U.S. Attorney Rebecca A. Perlmutter prosecuted the case.
Former Hawaii CEO Sentenced to 87 Months Imprisonment on Covid-Relief Fraud and Bank FraudRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Martin Kao, 51, of Honolulu, was sentenced today in federal court by Senior United States District Judge Leslie E. Kobayashi to 87 months imprisonment followed by 5 years of supervised released for COVID-relief wire fraud, money laundering, and bank fraud. Judge Kobayashi also ordered that Kao pay restitution of $12,841,490 to the Small Business Administration, forfeit $12,841,490 in Paycheck Protection Program (PPP) funds he obtained through fraud, forfeit the proceeds of his bank fraud after foreclosure of the house he bought by fraudulently obtaining a $3,000,000 loan, and perform 12,800 hours of community service while on supervised release.
According to Kao’s admissions during his guilty plea hearings and other court records, as Chief Executive Officer and 99% owner of a Hawaii-based defense contractor, Kao submitted fraudulent PPP loan applications to at least three banks, including two headquartered in Hawaii, during spring 2020. In his first PPP loan application Kao falsely tripled the number of employees at his company and thereby obtained the maximum loan of $10,000,000 from a Hawaii bank. During the bank’s review of Kao’s application, Kao pressured the bank to expedite approval of the fraudulent application by repeatedly claiming that he had discussed his application with United States Senators and their staffs who would intervene on Kao’s behalf if the bank did not quickly approve his loan.
In his second PPP loan application Kao falsely claimed eligibility for another $2,841,490 and obtained that loan from an Internet-based mainland bank by concealing his company’s receipt of the first PPP loan. Kao then altered the executed promissory note associated with the loan by deleting all references to the PPP to conceal his fraud from others who knew about the first PPP loan. In his third PPP application to a different Hawaii-based bank, Kao again falsely claimed eligibility for another $2,852,839 by concealing his company’s receipt of the first and second PPP loans. When the bank questioned Kao about why payroll records for his employees did not match the tax identification number for the entity identified on the application, Kao falsely described his company’s corporate structure and submitted a revised application, which the bank denied.
Also during spring 2020, Kao submitted a fraudulent mortgage application to a national bank seeking $3,000,000 to purchase a $4,500,000 residence in Kahala. In support of that application, Kao submitted numerous investment account statements and records that he had digitally altered and fabricated to falsely inflate the value of his stock portfolio. In his final submission prior to loan approval, Kao altered the statement to reflect a value of more than 10,000,000 for holdings that in fact were valued at less than $65,000.
“Martin Kao, motivated by greed, chose to repeatedly lie about his assets and prior loans in order to obtain millions of dollars in funds that were intended to help businesses staggered by the Covid-19 pandemic,” said Acting United States Attorney Kenneth M. Sorenson. “Thanks to our outstanding investigative partners, Internal Revenue Service Criminal Investigations and the Small Business Administration’s Office of Inspector General, we were able to uncover Kao’s web of lies and convict him of bank fraud. Today’s sentence sends the clear, unequivocal message that those who seek to defraud the Paycheck Protection Program through fraud and deceit will be investigated and prosecuted to the full extent of the law.”
“While so many small businesses closed their doors in 2020, Mr. Kao’s scheme tangled up enough emergency relief funds to cover the average annual income of 175 American households,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “We will continue to work to expose abuses of the Paycheck Protection Program.”
“The SBA Office of Inspector General remains focused on identifying and addressing fraud in pandemic relief programs,” said Weston King, Special Agent in Charge of the SBA Office of Inspector General, Western Region. “This case underscores SBA-OIG’s dedication to protecting taxpayer dollars and holding accountable those who seek to exploit federal relief programs.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds had to be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the PPP loan to be entirely forgiven for many businesses if the business spent the loan proceeds on these expense items within a designated period of time after receiving the proceeds and used at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Justice Department’s COVID-19 Fraud Enforcement Task Force marshals the Department’s resources in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The investigation was conducted jointly by IRS Criminal Investigation and the Small Business Administration Office of Inspector General. The case was prosecuted by Assistant U.S. Attorneys Craig Nolan and Sydney Spector for the District of Hawaii and Trial Attorneys Jennifer Bilinkas and Tom Tynan of the Criminal Division’s Fraud Section.
Honolulu Woman Charged with Distributing Methamphetamine from Her ResidenceRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Phitsmai Khamkhay, 58, of Honolulu, Hawaii was arrested and charged by criminal complaint with distributing more than fifty grams of methamphetamine, a Schedule II federally controlled substance, from her residence on three separate occasions in 2022. A detention hearing in federal court is scheduled for February 18, 2025.
According to the facts stated in the complaint, in April, May, and June 2022, Khamkhay arranged for the sale of approximately 680 grams of methamphetamine. She distributed the drugs from her home in Honolulu, Hawaii, and was surveilled by law enforcement during three controlled purchases involving a confidential source. During an interview with law enforcement, Khamkhay elected to waive her Miranda rights and admitted that, on several occasions, she purchased multiple pounds of methamphetamine from numerous individuals on Oahu and distributed multiple pounds of methamphetamine to numerous individuals on Oahu and Kauai.
The charges in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
The case was investigated by the Drug Enforcement Agency. It is being prosecuted by Assistant U.S. Attorneys Tom Muehleck and Rebecca A. Perlmutter.
Miske Enterprise Member Sentenced to 20 Years in Federal Prison for Racketeering ConspiracyRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that John B. Stancil, 37, of Waimanalo, was sentenced today in federal court by U.S. District Judge Derrick K. Watson to 240 months of imprisonment (the statutory maximum) followed by 3 years of supervised release for racketeering conspiracy. Stancil pled guilty on January 22, 2024, in the middle of jury selection, to conspiring to conduct and participate in the conduct of the affairs of a racketeering enterprise, the “Miske Enterprise,” through racketeering activity that included participating in the commission of murder-for-hire and acts relating to chemical weapons.
In his plea agreement, Stancil admitted that he and other members of the Miske Enterprise participated in chemical weapon attacks on two Honolulu nightclubs in March 2017, carried out on the orders of codefendant Michael J. Miske. Stancil provided the toxic chemical used in the attacks – a substance called chloropicrin, which can cause death, temporary incapacitation, or permanent harm to humans. Stancil also admitted to joining a murder-for-hire conspiracy with Miske and other Enterprise members. Miske put a murder contract out on an individual he believed was cooperating with law enforcement. Stancil then provided details of where the victim lived to another co-conspirator who agreed to carry out the murder until Miske eventually rescinded the contract. Stancil also admitted he served as the getaway driver for multiple assaults ordered by Miske and on behalf of the Miske Enterprise. According to other information provided to the Court, Stancil also coordinated and participated in numerous robberies on behalf of the Miske Enterprise.
Stancil was charged alongside twelve other defendants, all of whom pled guilty except for Michael J. Miske who proceeded to trial and was found guilty of racketeering conspiracy, murder, and 11 other felony charges on July 18, 2024. Seven other members and associates of the Miske Enterprise pled guilty to various offenses in related cases.
“You cannot run from the facts,” Judge Watson advised Stancil during today’s sentencing before reciting the litany of racketeering acts for which the Court found Stancil responsible. Judge Watson found Stancil to be “among the most culpable” of those in the Miske Enterprise, describing him as one of Michael Miske’s “key confidantes and lieutenants” and a “key player in terrorizing the citizenry of this city and county for years.” Judge Watson further noted that Stancil deserved an even higher prison sentence that the Court was not permitted to impose by statute.
“Today’s sentence represents the culmination of years of tireless, dogged, skilled, and innovative work on the part of the United States Attorney’s Office for the District of Hawaii and our outstanding law enforcement partners, the Honolulu Division of the FBI, Internal Revenue Service, and Homeland Security Investigations, among others,” said Acting U.S. Attorney Ken Sorenson. “The court was deprived of the opportunity to sentence Michael Miske due to his untimely death following his guilty verdicts at trial for racketeering and other crimes. But today’s sentence, along with the 18 convictions we have secured against Miske’s henchmen and violent thugs, demonstrates our strong commitment to investigating, prosecuting, and convicting those who violate the law and endanger the safety and welfare of Hawaii’s citizens. Let today’s sentence and the convictions in these cases serve as a stark reminder to those who operate criminal enterprises in Hawaii that we have the tools, expertise, and resolve to bring them to justice.”
“Mr. Stancil was a key member of the Miske Enterprise, actively participating in a longstanding pattern of racketeering activity involving murder-forhire, robbery, and use of chemical weapons,” said FBI Honolulu Special Agent in Charge David Porter. “This sentencing reflects years of collaboration between FBI Honolulu and our law enforcement partners. The FBI remains steadfast in its commitment to dismantle violent criminal enterprises, hold their members accountable, and pursue justice for victims.”
“Mr. Stancil’s racketeering charge reminds us that organized crime threatens innocent lives for money,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Our agency follows the money so we can cut off organized crime at its roots.”
“HSI is committed to ending organized crime in Hawaii. The sentencing of Mr. Stancil underscores the importance of leveraging law enforcement partnerships to safeguard our community,” said HSI Special Agent in Charge Lucy Cabral-DeArmas. “Our dedication to this cause is unwavering, and we will continue to work tirelessly to ensure that these criminals are held accountable for their actions.”
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligencedriven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, the Criminal Investigation Division of the Environmental Protection Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Honolulu Police Department, the Drug Enforcement Administration, the Coast Guard Investigative Service, the United States Marshals Service Fugitive Task Force, the Cybercrime Lab of the Department of Justice Criminal Division Computer Crime and Intellectual Property Section, the Hawaii Criminal Justice Data Center, the Honolulu Fire Department, the Hawaii National Guard, 93rd Civil Support Team, the Office of Investigations–Office of the Inspector General for the Social Security Administration, and the Department of Justice Office of the Inspector General.
Assistant U.S. Attorneys Mark Inciong, Michael Nammar, KeAupuni Akina, and Aislinn Affinito prosecuted the case.
U.S. Attorney’s Office Obtains $162,500 Settlement Compensating Victim of Fair Housing Act DiscriminationRead the Press Release
HONOLULU - Kenneth M. Sorenson, Acting United States Attorney for the District of Hawaii, announced a settlement of $162,500 resolving the United States’ lawsuit under the Fair Housing Act (“FHA”) against Kailua Village Condominium Association (“Kailua Village”), its Managing Agent, Associa Hawaii, the sellers of a Kailua Village condominium unit, and the sellers’ realtor.
The lawsuit alleged that the defendants discriminated against an individual with paraplegia (the “Complainant”) who attempted to purchase a condominium unit at Kailua Village, a 54-unit condominium complex in Kailua-Kona, Hawaii, in or around October 2021. The Complainant was living at the condominium unit pursuant to an early occupancy agreement during the escrow period. According to the Complaint filed by the United States, the defendants unlawfully denied the Complainant’s requests for an accessible parking space, a temporary ramp to access his condominium unit, and installation of an accessible toilet at his own expense. This discrimination, as well as certain verbal harassment, allegedly caused the Complainant to withdraw from the purchase and move out of the condominium unit.
The FHA makes it unlawful to discriminate in the terms and conditions of the sale or rental of, or to otherwise make unavailable or deny, a dwelling based on the prospective buyer or renter’s disability. The FHA also mandates that reasonable accommodations in rules, policies, practices, and services be provided when necessary to afford equal housing opportunities to persons with disabilities.
The Complainant filed a discrimination complaint with the United States Department of Housing and Urban Development (“HUD”). HUD’s investigation determined that reasonable cause existed to believe that illegal discriminatory housing practices had occurred. The Complainant subsequently exercised his right to proceed to federal court with the dispute, thereby triggering the statutory requirement that the Department of Justice file suit on the Complainant’s behalf.
The case was resolved by two Consent Decrees approved by the federal district court in October 2024 and January 2025. Pursuant to the Consent Decrees, the defendants will pay the Complainant $162,500 in damages and are required to complete FHA training. Additionally, Kailua Village is required to adopt a Department of Justice-approved reasonable accommodation and modification policy, and for a period of two years, Kailua Village and Associa Hawaii must comply with certain recordkeeping and reporting requirements to ensure FHA compliance.
Assistant U.S. Attorneys Sydney Spector and Dana Barbata, in partnership with the Housing and Civil Enforcement Section of the Civil Rights Division of the United States Department of Justice, litigated the matter.
Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, or may contact the Department of Housing and Urban Development at 1-800-669-9777 or www.hud.gov.
U.S. Attorney’s Office Collects $1,742,014.13 in Civil and Criminal Actions in Fiscal Year 2024Read the Press Release
HONOLULU – Acting U.S. Attorney Kenneth M. Sorenson announced today that the District of Hawaii collected $1,742,014.13 in criminal and civil actions in Fiscal Year 2024. Of this amount, $1,220,860.27 was collected in criminal actions and $521,153.86 was collected in civil actions.
Additionally, the District of Hawaii worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $51,191.45 in civil actions pursued jointly by these offices. “
The U.S. Attorney’s Office is dedicated to protecting the public and recovering funds for the victims of federal crime,” said Acting U.S. Attorney Ken Sorenson. “Our hard-working Assistant U.S. Attorneys and financial litigation and support staffs make sure that criminals are prosecuted, convicted and that the proceeds of their crimes, along with any and all fines, are collected and repurposed to positive use. We are proud to have partnered with our local, state, and federal law enforcement partners to compensate victims and hold criminals financially accountable.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the District of Hawaii, working with partner agencies and divisions, collected $4,123,459 in asset forfeiture actions in FY 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
Oahu Man Sentenced to over 16 Years in Federal Prison for Drug Trafficking and Illegal Gambling ChargesRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Maliu Tauheluhelu, 40, of Honolulu, was sentenced yesterday in federal court by U.S. District Judge Jill A. Otake to 200 months of imprisonment followed by 5 years of supervised release, for conspiring to distribute methamphetamine and cocaine, and conspiring to operate illegal gambling businesses. Tauheluhelu pleaded guilty to two counts of an Indictment on February 15, 2024.
Tauheluhelu admitted to conspiring with his co-defendants, Maafu Pani, Touanga Niu, and Desmond Morris, to possessing with intent to distribute methamphetamine and cocaine between 2020 and 2022. Tauheluhelu obtained multi-pound shipments of methamphetamine and cocaine on Oahu and arranged for its distribution throughout Hawaii, including to Maui.
Tauheluhelu admitted that during this same time period, he, Pani, and Niu also conspired to operate illegal gambling businesses on Oahu and Maui. Tauheluhelu operated multiple illegal gambling businesses on Oahu, including one at 980 Queen Street, and a “VIP room” operating out of Tauheluhelu’s Staxx Sports Bar & Grill location in Waianae.
Pani, Niu, and Morris each pled guilty to federal felonies and were sentenced earlier in 2024 for their roles in the conspiracy. Pani was sentenced to 192 months of imprisonment, Niu was sentenced to 30 months of imprisonment, and Morris was sentenced to 72 months of imprisonment.
“This sentence demonstrates that those who traffic dangerous drugs and operate illegal game rooms will face serious consequences,” stated Acting U.S. Attorney Sorenson. “We are committed to holding criminal enterprises accountable and protecting our community from the destruction caused by drugs like methamphetamine. Illegal game rooms, like those run by Tauheluhelu, are magnets for violence and criminal activity. This outcome is the result of exceptional coordination and effort by our federal, state, and local law enforcement partners.”
“Yesterday’s sentencing reflects years of collaboration among multiple law enforcement agencies to dismantle a dangerous criminal organization,” said FBI Honolulu Special Agent in Charge David Porter. “The FBI—in coordination with our partners across all levels of government—will continue to use every available resource to protect our communities and bring these criminal enterprises to justice.”
“Our collective efforts send a clear and decisive message: criminal enterprises that exploit and endanger our communities should think twice, as there is zero tolerance for such actions,” said Maui Chief of Police John Pelletier. “We are deeply grateful to our federal partners—FBI Honolulu and the DEA—and to the dedicated MPD officers and personnel who worked tirelessly to bring this operation to a successful conclusion. This achievement was made possible by the unwavering commitment, shared resources, and intelligence of all the involved agencies, reaffirming our dedication to keeping our communities safe for residents and visitors.”
This prosecution was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Federal Bureau of Investigation and Task Force Officers from the Maui Police Department, with assistance from the Maui Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Drug Enforcement Administration.
Assistant U.S. Attorney Margaret Nammar prosecuted the case.
Kapolei Woman Indicted for Scheme to Defraud Unemployment Insurance and Pandemic Unemployment Assistance ProgramsRead the Press Release
HONOLULU, Hawaii – Acting United States Attorney Kenneth M. Sorenson announced that on January 23, 2025, a federal grand jury returned a twelve-count indictment against Phoebe Trinh, also known as Phuong Trinh Ngoc Vo, 31, of Kapolei, Hawaii, charging Trinh with nine counts of wire fraud and three counts of aggravated identity theft in connection with fraudulent claims for unemployment insurance and pandemic unemployment assistance.
The charges in the indictment pertain to both the unemployment insurance and Pandemic Unemployment Assistance (PUA) programs. In 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act created the PUA program to provide emergency unemployment payments to certain workers whose livelihoods were impacted by the COVID-19 pandemic, but who were ineligible for traditional state unemployment insurance benefits.
The indictment alleges that Trinh submitted a false claim for unemployment insurance benefits to the Hawaii Department of Industrial and Labor Relations (DLIR) using its website, and that she repeatedly falsely certified under penalty of law that she was unemployed and not receiving income, despite knowing that her certifications were false, in order to receive benefit payments that she was not entitled to receive.
The indictment further alleges that Trinh also submitted a claim to the Hawaii DLIR for PUA benefits on behalf of another individual, using that individual’s personal identifiable information, including name and social security number, without that individual’s knowledge and consent, in order to obtain additional benefit payments to which she was not entitled. Trinh then allegedly repeatedly certified to Hawaii DLIR that the individual remained eligible for PUA benefit payments in order to receive the payments, without the individual’s knowledge and consent. The indictment alleges that Trinh directed Hawaii DLIR to transmit the benefit payments that were intended for the individual to her own bank account.
According to the indictment, Trinh fraudulently obtained at least approximately $36,265 in unemployment insurance and PUA unemployment benefits to which she was not entitled.
Each of the wire fraud counts carries a maximum penalty of 20 years in prison and a fine of up to $250,000. Each of the aggravated identity theft counts carries a sentence of two years in prison. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
This case is being investigated by the U.S. Department of Labor Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
Maui Police Officer Indicted for Deprivation of Civil RightsRead the Press Release
HONOLULU – Acting United States Attorney Kenneth M. Sorenson announced that Carlos Frate, age 40, of Kihei, Hawaii, was arrested today on a two-count indictment returned by a federal grand jury on January 16, 2025. An arraignment in federal court is set for January 22, 2025.
The indictment alleges that Frate, while acting under color of law as an officer of the Maui Police Department, deprived another person of the right to be free from the use of unreasonable force by tasing that person without legal justification. The indictment also alleges that Frate falsified a police incident report with the intent to obstruct the investigation of the use of force.
If convicted of the charged offenses, the defendant would face up to ten years in prison on the deprivation of civil rights charge, and up to twenty years in prison on the false report charge.
The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. In the case of conviction, any sentence would be imposed by a United States District Judge based on the statutory sentencing factors and the advisory United States Sentencing Guidelines.
The Maui Police Department made the initial referral to the federal government, and the charges resulted from an investigation by the Federal Bureau of Investigation and Maui Police Department. The case is being prosecuted by Assistant U.S. Attorney Michael F. Albanese.
California Couple Sentenced for Defrauding Paycheck Protection ProgramRead the Press Release
HONOLULU – On January 9, 2025, Senior United States District Judge J. Michael Seabright sentenced Christopher A. Mazzei, 46, and Erin V. Mazzei, 43, both of Arroyo Grande, California, to 36 months and 27 months of imprisonment, respectively, for conspiracy to commit wire fraud and conspiracy to commit money laundering in connection with a scheme to defraud the government of forgivable Paycheck Protection Program (PPP) loan funds intended for Coronavirus-related relief. The Mazzeis pleaded guilty to two counts of an Indictment on August 28, 2024.
According to court documents and the statements of counsel at sentencing, Christopher and Erin Mazzei, who are husband and wife, submitted applications for PPP funds to Bank of Hawaii and two other banks on behalf of three purported businesses, each time utilizing interstate wires. For each application, the Mazzeis created false Internal Revenue Service (IRS) tax returns and payroll records, which they presented as authentic and submitted to the banks to support their claims for PPP loan funds. The Mazzeis admitted that as a result of the false and fraudulent applications, they received $1,365,000 in PPP loan funds, which they then used for personal purposes, such as to purchase multiple sport utility vehicles and a home in Kapolei, Hawaii, among other things. In addition, the couple spent approximately $164,796 to film a promotional trailer for a television project entitled “Ohana,” that they hoped to produce in the State of Hawaii, and that they hoped would attract the attention of film producer and actor Dwayne Johnson.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, which was designed to provide emergency financial assistance to the millions of Americans who were suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds had to be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allowed the interest and principal on the PPP loan to be entirely forgiven if the business spent the loan proceeds on these expense items within a designated period of time after receiving the proceeds and used at least a certain percentage of the PPP loan proceeds on payroll expenses.
Referring to the PPP as “crisis-based legislation,” Judge Seabright called the fraud conduct here “particularly blatant and egregious.” In pronouncing his sentence to both defendants, Judge Seabright remarked, “greed drove both of you.”
“The Mazzeis perpetrated a gross fraud to obtain critical resources intended for members of our community experiencing devastating hardships as a result of the pandemic,” said United States Attorney Clare E. Connors. “The sentences appropriately condemn their conduct, and our office remains committed to bringing these prosecutions to ensure accountability for such bad acts and to protect the public fisc.”
“This scheme diverted emergency relief that could have paid 25 Americans an average salary,” said Adam Jobes, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “While small businesses shut down all over the country, the Mazzeis lived in excess on the taxpayer’s dime.”
“Christopher and Erin Mazzei falsified loan applications to fraudulently obtain PPP loan proceeds earmarked to help struggling businesses during the COVID-19 pandemic. The Mazzeis actions not only defrauded the PPP Loan Program, but also disadvantaged business owners who were entitled to the benefits,” said Special Agent in Charge Ryan L. Korner from the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG is committed to working alongside our law enforcement partners to protect the Nation’s financial system and hold accountable those individuals, like the Mazzeis, who steal benefits designated to help those in need.”
“Christopher and Erin Mazzei defrauded the federal government of pandemic relief funds for their own personal gain and have now been brought to justice for their actions,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. and Mrs. Mazzei accountable.”
The investigation was conducted jointly by IRS Criminal Investigation, the FDIC Office of Inspector General, and the Office of Inspector General for the Board of Governors of the Federal Reserve System, with assistance from the Small Business Administration Office of Inspector General and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Gregg Paris Yates prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Clare Connors Resigns as United States AttorneyRead the Press Release
HONOLULU – Today, January 6, 2025, Clare E. Connors submitted her resignation to President Joseph R. Biden Jr., and Attorney General Merrick Garland, which will become effective at 11:59 p.m. on January 19, 2025. USA Connors took the oath of office as United States Attorney for the District of Hawaii on January 3, 2022, after being nominated by President Biden on September 28, 2021, and confirmed by the United States Senate on December 7.
“It was a privilege to rejoin this office and to serve Hawaii as the chief federal law enforcement officer,” said USA Connors. “The Department’s mission – to keep the community safe from threats foreign and domestic; protect civil rights; and uphold the rule of law – is critical to our State’s overall wellbeing and I am honored to have worked alongside the committed public servants who will continue to fulfill it.”
As United States Attorney, USA Connors served as the top-ranking federal law enforcement official in the District of Hawaii. She oversaw a staff that included approximately 60 attorneys and support personnel. The office is responsible for prosecuting federal crimes in the district, including crimes related to national security, public corruption, drug trafficking, child exploitation, firearms, and violent crime. The office also initiates affirmative civil actions, defends the United States in civil cases, and collects debts owed to the United States.
During her tenure, USA Connors prioritized public corruption and integrity crimes, and closely collaborated with state and local law enforcement to address organized and violent crime, disrupt large-scale drug activity, and support targeted violence initiatives and mitigation efforts such as Threat Team Hawaii. The office also worked closely with law enforcement partners to investigate and prosecute child exploitation crimes as well as to support community efforts through organizations like Weed and Seed Hawaii. USA Connors repeatedly emphasized the important relationship the public has with the federal law enforcement components in Hawaii and encouraged those who witness misconduct, including financial crimes or civil rights violations that could the basis for whistleblower and qui tam actions, to report it to federal authorities.
Oahu Man Indicted for Methamphetamine and Fentanyl Distribution Conspiracy and Possessing and Discharging FirearmRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that, on December 19, 2024, a federal grand jury returned a five-count indictment against Blane Apostadiro, 47, of Ewa Beach, Hawaii, charging him with conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl; possessing with intent to distribute methamphetamine and fentanyl; using, carrying, and discharging a firearm during a drug trafficking crime; and illegally possessing ammunition as a convicted felon and unlawful drug user.
According to the indictment and details from a previously unsealed criminal complaint, on October 27, 2024, Honolulu Police Department (“HPD”) officers observed Apostadiro driving a stolen vehicle. Apostadiro abandoned the vehicle and fled on foot. While fleeing, Apostadiro discharged a privately manufactured firearm, also known as a “ghost gun,” prompting HPD officers to discharge their weapons in defense. Apostadiro was incapacitated during the exchange and taken into custody. HPD officers discovered methamphetamine, fentanyl, digital scales, plastic baggies, ammunition, a lower receiver, and a loaded “ghost gun” in Apostadiro’s possession. Additional controlled substances and drug paraphernalia were recovered from the stolen vehicle.
“Both fentanyl and ghost guns pose a grave threat to public safety, putting both law enforcement and innocent community members at risk,” said United States Attorney Clare E. Connors. “We will continue to work with our law enforcement partners to hold armed drug dealers accountable in the criminal justice system for the significant harm they inflict.”
If convicted of all counts, Apostadiro faces a maximum sentence of life in prison, including a combined mandatory minimum of 20 years for the drug and firearm charges, and fines of up to $10 million.
This case is being investigated by the Federal Bureau of Investigation and the Honolulu Police Department. It is being prosecuted by Assistant U.S. Attorneys Jonathan D. Slack and Wayne A. Myers.
Justice Department Files Nationwide Lawsuit Alleging CVS Knowingly Dispensed Controlled Substances in Violation of the Controlled Substances Act and the False Claims ActRead the Press Release
HONOLULU – In a civil complaint unsealed today in Providence, Rhode Island, the Justice Department alleges that CVS Pharmacy Inc. and various subsidiaries (collectively, CVS) filled unlawful prescriptions in violation of the Controlled Substances Act (CSA) and sought reimbursement from federal healthcare programs for unlawful prescriptions in violation of the False Claims Act (FCA). CVS is the country’s largest pharmacy chain, with more than 9,000 pharmacies across the United States.
The government’s complaint alleges that, from October 17, 2013, to the present, CVS knowingly filled prescriptions for controlled substances that lacked a legitimate medical purpose, were not valid, and/or were not issued in the usual course of professional practice. Among the large number of unlawful prescriptions that CVS allegedly filled were prescriptions for dangerous and excessive quantities of opioids, early fills of opioids, and “trinity” prescriptions, an especially dangerous and abused combination of drugs made up of an opioid, a benzodiazepine and a muscle relaxant. CVS also allegedly filled large quantities of prescriptions for controlled substances written by prescribers it knew to be engaged in “pill mill practices” — that is, prescribers who issue large numbers of controlled substance prescriptions without any medical purpose. According to the complaint, CVS ignored substantial evidence from multiple sources, including its own pharmacists and internal data, indicating that its stores were dispensing unlawful prescriptions.
The complaint alleges that CVS’ violations resulted from corporate-mandated performance metrics, incentive compensation, and staffing policies that prioritized corporate profits over patient safety. CVS set staffing levels far too low for pharmacists to both meet their performance metrics and comply with their legal obligations. CVS also allegedly deprived its pharmacists of crucial information (including by, for example, preventing pharmacists from warning one another about certain prescribers) that could have reduced the number of unlawful prescriptions filled. The complaint alleges that CVS’ actions helped to fuel the opioid crisis and that, in some particularly tragic instances, patients died after overdosing on opioids shortly after filling unlawful prescriptions at CVS.
“Our complaint alleges that CVS repeatedly filled controlled substance prescriptions that were unlawful and pressured its pharmacists to fill such prescriptions without taking the time needed to confirm their validity,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The practices alleged contributed to the opioid crisis and opioid-related deaths, and today’s complaint seeks to hold CVS accountable for its misconduct.”
“Opioid deaths remain a scourge on communities across Rhode Island and the nation, robbing families of loved ones and leaving a path of devastation in their wake,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “This lawsuit alleges that CVS failed to exercise its critical role as gatekeeper of dangerous prescription opioids and, instead, facilitated the illegal proliferation of these highly addictive drugs, including by pill mill prescribers. When corporations such as CVS prize profits over patient safety and overburden their pharmacy staff so that they cannot carry out the basic responsibility of ensuring that prescriptions are legitimate, we will use every tool at our disposal to see that they answer for it.”
The government alleges that by knowingly filling unlawful prescriptions for controlled substances, CVS violated the CSA and, where CVS sought reimbursement from federal healthcare programs, also violated the FCA. The complaint alleges that CVS’s actions helped to fuel the opioid crisis. If CVS is found liable, it could face civil penalties for each unlawful prescription filled in violation of the CSA and treble damages and applicable penalties for each prescription reimbursed by federal healthcare programs in violation of the FCA. The court also may award injunctive relief to prevent CVS from committing further CSA violations, including ordering appropriate changes to corporate compliance programs and policies.
“When lives are destroyed or lost to opioid abuse, it doesn’t matter if the supplier is a street-level dealer, a pill mill, or a nationwide corporation,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Our laws regarding the dispensing of opioids and other controlled substances are clear and apply to everyone. We will pursue whatever legal action is necessary to stop any enterprise, regardless of size, that places profit over the safety of our citizens.”
“CVS is alleged to have dispensed large amounts of highly addictive opioid medications to persons they knew had no medical need for them,” said Administrator Anne Milgram of the Drug Enforcement Administration (DEA). “Simply put, they put profits over their obligation to keep their customers safe. A pharmacy is the final step in the pharmaceutical distribution process that is in place to keep customers safe. In the fight against the opioid epidemic, DEA will continue to be relentless in holding those accountable who violate our drug laws and place our communities in danger whether they are a criminal cartel or large pharmacy chain.”
“Pharmacies and pharmacists are critical partners to ensure controlled substances are dispensed lawfully and safely to the public,” said Deputy Inspector General Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is committed to holding individuals and entities that dispense these controlled substances improperly and without legitimate medical purpose accountable.”
“Protecting TRICARE, the healthcare system for military members and their dependents, is a top priority for the Department of Defense Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today’s filing demonstrates DCIS’ ongoing commitment to partner with the Department of Justice and our law enforcement partners to investigate health care providers that submit false claims to TRICARE and put its beneficiaries at risk.”
Whistleblower Hillary Estright, who previously worked for CVS, filed an action on October 17, 2019, under the qui tam provisions of the FCA. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over such lawsuits, as it has done here.
The case is captioned United States ex rel. Estright v. Health Corporation, et al., No. 1:22-cv-222 (D.R.I.).
The United States’ intervention in this matter underscores the government’s commitment to combating health care fraud. One of the most powerful tools in this effort is the FCA. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS, at 800-HHS-TIPS (800-447-8477).
The DEA’s Office of Diversion Control, Washington, D.C. Division, HHS-OIG and DCIS investigated the case. The U.S. Attorneys’ Offices for the Southern District of California and Northern District of Ohio, DEA’s Office of Chief Counsel, DEA’s Office of Diversion Control, Los Angeles Field Division, Office of Personnel Management, Department of Labor Office of Inspector General, U.S. Postal Service Office of Inspector General and FBI provided substantial assistance in the investigation.
Assistant Directors Amy L. DeLine and C.B. Buente, Senior Litigation Counsel Donald Lorenzen and Trial Attorneys Benjamin Cornfeld and Amanda K. Kelly of the Civil Division’s Consumer Protection Branch; Trial Attorneys Claire L. Norsetter, Joshua Barron and Megan F. Engel of the Civil Division’s Commercial Litigation Branch, Fraud Section; First Assistant U.S. Attorney Sara M. Bloom and Assistant U.S. Attorneys Kevin Love Hubbard and Rachna Vyas for the District of Rhode Island; Assistant U.S. Attorneys Clare Wuerker and John Beerbower for the Eastern District of Virginia; Assistant U.S. Attorneys Sydney Spector and Tracy Weinstein for the District of Hawaii; and Assistant U.S. Attorneys James Gillingham and Adrian Garcia for the Eastern District of Texas are litigating the enforcement action.
The claims asserted against the defendants are allegations only. There has been no determination of liability.
Oahu Basketball Coach Pleads Guilty to Child Exploitation and Harassment Offenses Involving Ten VictimsRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Dwayne Yuen, a 51-year-old resident of Honolulu, pleaded guilty today to all six counts in a First Superseding Indictment and six counts in a filed Information charging him with child exploitation and harassment offenses. Specifically, Yuen pleaded guilty to committing crimes against three minor victims, including sex trafficking Minor Victim 1 in 2005 and 2006; coercing and enticing Minor Victim 2 to engage in sexual activity in 2006; and producing, receiving, and possessing child pornography of Minor Victim 3 in and around 2020 to 2023. He also pled guilty to harassing victims identified in court documents as Victims 4 through 10 through anonymous and obscene communications in and around 2021 to 2023. The Federal Bureau of Investigation arrested Yuen in February 2023, and he has been detained at the Federal Detention Center in Honolulu since his arrest.
Court pleadings and information in court hearings describe a course of criminal conduct spanning nearly two decades. Yuen was a youth basketball coach of mostly middle school- and high school-aged girls. He coached both private club teams and teams at various private and public schools on Oahu. Minor victims 1 to 3 and Victims 4 to 10 were all basketball players coached by Yuen. Victims 4 through 9 were at or near eighteen years old when Yuen sent the harassing and sexually explicit communications, and Victim 10 was seventeen years old.
“Cases involving the exploitation of minors by those they trust often span years, including because perpetrators spend time grooming their targets, who then may delay reporting the crimes for various reasons,” said United States Attorney Clare E. Connors. “This case represents a concerted, persistent effort by law enforcement, advocates, and the targets themselves to seek justice and healing in the criminal system.”
Yuen’s sentencing date is set for April 3, 2025, before the Honorable J. Michael Seabright, Senior United States District Judge. Yuen faces a mandatory fifteen years in prison and up to 144 years in prison for all twelve of the offenses to which he pleaded guilty. Yuen also faces a term of supervised release of up to life, mandatory restitution, and must register as a sex offender.
The FBI is investigating the case, and the prosecution is being handled by Assistant U.S. Attorney Rebecca Perlmutter and Trial Attorney Gwendelynn Bills of the U.S. Department of Justice’s Child Exploitation and Obscenity Section.
Kapaa Woman Indicted for Scheme to Defraud Coronavirus Rental and Utility Assistance ProgramRead the Press Release
HONOLULU – On December 12, 2024, a federal grand jury returned an eight-count indictment against Kaiaulani C. Kaiawe, also known as Coty K. Duhaylongsod, 46, of Kapaa, Hawaii, charging Kaiawe with wire fraud, aggravated identity theft, and money laundering in connection with fraudulent claims for pandemic-related rental and utility assistance.
The charges in the indictment pertain to the Kauai Coronavirus Rental and Utility Assistance (CRUA) program. In 2021, Congress authorized the creation of Emergency Rental Assistance programs within the Department of the Treasury to fund rent, utility, and other housing-related expense assistance to households that were impacted by the COVID-19 pandemic. In the State of Hawaii, the County of Kauai used ERA funds to establish the CRUA program. The County of Kauai contracted with a local credit union to administer the CRUA program.
According to the indictment, Kaiawe is charged with wire fraud in connection with a scheme to defraud the CRUA program to obtain benefit payments she was not eligible to receive. The CRUA program required eligible claimants to submit an application electronically, using its website, and to provide certain personal information of the claimant, including his or her name and date of birth, as well as a landlord or property manager contact, before certifying that the representations made in the claim were true and accurate. If the credit union approved the claim, rental payments for the claimant were sent directly to the claimant’s landlord or property manager, and utility payments were sent directly to his or her utility company.
The indictment alleges that Kaiawe submitted a false CRUA claim on her own behalf, using her former name, Coty Duhaylongsod, as the claimant, and then listing her then-current name, Kaiawe, as her landlord to improperly receive a CRUA benefit payment. The indictment further alleges that Kaiawe then submitted multiple other false CRUA claims using the personal information of others as claimants, without their knowledge and consent, and then falsely listing herself as their landlord or property manager to obtain additional benefit payments that she was not entitled to receive. Finally, the indictment alleges that Kaiawe submitted other false claims for CRUA benefits that used the identities of acquaintances as landlords or property managers, without their knowledge or consent; for these claims Kaiawe, entered a residential address for the landlord or property manager to receive payment that was within sight of her home, which allowed Kaiawe to intercept the rental assistance program check when it was delivered.
Kaiawe submitted CRUA claims seeking a total of almost $250,000 that she was not eligible to receive. According to the indictment, Kaiawe fraudulently obtained at least approximately $126,026 in CRUA assistance benefits.
“Congress appropriated critically important funds during the COVID-19 pandemic to help people in our community who were struggling,” said United States Attorney Clare E. Connors. “We continue to investigate those who fraudulently obtained federal funds at the expense of those who needed this assistance in order to remain housed, and will hold them accountable.”
Kaiawe is charged with four counts of wire fraud, three counts of aggravated identity theft, and one count of money laundering. Each of the wire fraud counts carries a maximum penalty of 30 years in prison and a fine of up to $1,000,000. Each of the aggravated identity theft counts carries a sentence of two years in prison. The money laundering count carries a maximum penalty of ten years in prison and a fine of up to $250,000 or up to twice the amount of criminally-derived property involved in the transaction. An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) at 866-720-5721 or online at www.justice.gov/DisasterComplaintForm.
This case is being investigated by the Federal Bureau of Investigation and the Kauai Police Department. It is being prosecuted by Assistant U.S. Attorney Gregg Paris Yates.
Maui Man Sentenced to 12 Years for Trafficking Fentanyl Resulting in DeathRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Jose Elias Camacho, 34, of Maui, was sentenced yesterday by U.S. District Judge Susan Oki Mollway to 144 months in prison for trafficking in fake oxycodone pills containing fentanyl that resulted in an overdose death. Camacho previously pleaded guilty to possession of fentanyl with intent to distribute in June 2024.
Camacho admitted that in August 2020, he sold five fake oxycodone pills containing fentanyl to a 24-year-old man, who ingested the pills and overdosed. First responders revived the victim and transported him to the hospital for further treatment. The victim discharged himself later that day and contacted Camacho to buy more pills. Camacho admitted knowing the victim had just been hospitalized. Despite this knowledge, Camacho sold the victim five more pills. The following morning, the victim was found dead at his home. An autopsy report indicated that he died of a polydrug overdose. A medical toxicologist who later reviewed the case determined the victim would not have overdosed and died but for the fentanyl Camacho distributed to him.
Camacho admitted that he continued to distribute the pills after learning of the victim’s overdose death. On October 2, 2020, members of the Maui Police Department working in an undercover capacity set up a deal to purchase approximately 50 pills from Camacho, who was arrested as he left his house to conduct the transaction. Police searched him and his home and found approximately 400 light blue pills bearing the marking “M 30” and designed to resemble prescription oxycodone. The pills were tested by a lab and were found to contain fentanyl.
According to the Drug Enforcement Administration’s 2024 National Drug Threat Assessment, fentanyl manufactured by Mexican drug cartels is the main driver behind the ongoing epidemic of drug poisoning deaths in the United States. The National Institute on Drug Abuse reports that in 2022, national overdose deaths involving synthetic opioids other than methadone (primarily illicitly manufactured fentanyl) comprised 73,838 of the 107,941 lives lost to drug overdose deaths. The DEA’s 2024 National Drug Threat Assessment further notes that fake oxycodone pills present a particular risk—both because 7 in 10 fake pills contain a potentially lethal dose of fentanyl and because users are often unaware that the pills contain fentanyl at all.
“Camacho knew the deadly risk of selling illegal narcotics, and in particular, he knew the heightened risk associated with the tragic death in this case. Even after learning of the victim’s death, Camacho continued to sell a large quantity of the lethal pills, endangering a great number of lives,” said United States Attorney Connors. “This sentence sends a powerful message that dealers whose products contain lethal doses of illegal narcotics, including fentanyl, will face severe consequences for contributing to the scourge of overdose deaths on our community.”
The investigation was conducted by the Drug Enforcement Administration and the Maui Police Department.
Assistant U.S. Attorneys Mohammad Khatib and Michael Albanese prosecuted the case.
Statement Regarding the Death of Defendant Michael J. MiskeRead the Press Release
HONOLULU – On December 1, 2024, the Federal Bureau of Prisons announced that Defendant Michael J. Miske had been found unresponsive and was later pronounced deceased. The United States Marshals Service and the Federal Bureau of Investigation responded, and the Chief Medical Examiner of the City and County of Honolulu conducted an autopsy and is continuing to examine the cause of death, which examination remains ongoing. Presently, there is no finding of foul play or suicide.
On July 18, 2024, a federal jury convicted Miske after a seven-month trial of 13 counts of criminal conduct, including a racketeering conspiracy, murder in aid of racketeering, kidnapping resulting in death, chemical weapons offenses, and obstruction of justice. The jury also determined in a subsequent criminal forfeiture proceeding that Miske must forfeit assets estimated to exceed $20 million. Miske’s sentencing hearing, originally scheduled for November 26, 2024, was continued to January 30, 2025. Miske was facing a mandatory minimum term of life in prison.
According to United States Attorney Clare E. Connors: “Michael Miske’s death was unexpected and may terminate some of the ongoing criminal proceedings. The United States spent years investigating Miske’s large-scale criminal enterprise and then years preparing for one of the most grueling trials in this office’s history. Justice was served in the process but aspects of the case remain unfinished. In particular, we are committed to pursuing recovery of the assets found forfeitable by a federal criminal jury and will file pleadings in court as necessary and appropriate.”
Assistant U.S. Attorneys Mark Inciong, Michael Nammar, KeAupuni Akina and Aislinn Affinito prosecuted the underlying criminal case. Akina and Affinito prosecuted the subsequent criminal forfeiture proceeding, with the assistance of Assistant U.S. Attorneys Craig Nolan and Sydney Spector.
Oahu Man Sentenced to 10 Years for Fentanyl Distribution Resulting in Death and Assault of U.S. Marshals OfficerRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Matthew McBraun, 38, of Oahu, was sentenced yesterday by U.S. District Judge J. Michael Seabright to 96 months in prison for distributing fentanyl cut with heroin that resulted in an overdose death. McBraun was sentenced to an additional 24 months’ incarceration for assaulting a United States Marshals Service Deputy Security Officer while in custody. McBraun previously pled guilty to the assault, and a federal jury later convicted him of distribution of a controlled substance and possession of methamphetamine and fentanyl with intent to distribute.
“McBraun’s criminal actions wholly support the serious sentenced imposed in this case,” said United States Attorney Connors. “Every day, law enforcement officers put themselves in dangerous situations to keep our community safe. We will continue to prosecute aggressively those who harm our community by distributing illegal narcotics and committing violent crimes, as well as those who harm law enforcement officers carrying out their sworn duties.”
As revealed in Court, in October 2022, McBraun sold fentanyl to an individual, Cory Germain, who was acting as a middleman for the victim. The victim overdosed and died a day later. At trial, investigators testified that drug paraphernalia at the scene of the overdose victim’s death contained a mixture of fentanyl and heroin, and a toxicology report revealed both fentanyl and metabolites of heroin in the victim’s body. Both a medical toxicologist and drug trafficking expert testified that it is extremely common for fentanyl to be cut with heroin. The medical toxicologist further testified that the fentanyl contributed to the victim’s death and the but-for cause of death was fentanyl and heroin.
While incarcerated pending trial on these drug charges, McBraun headbutted a U.S. Deputy Security Officer who was transporting him to the Honolulu Federal Detention Center (“FDC”). According to information provided to the Court, McBraun was upset because the officer braked unexpectedly during the drive. As he was being escorted from the vehicle to FDC, he lunged headfirst at the officer, who sustained injuries to his face as a result.
At sentencing, Judge Seabright imposed a significant upward variance from the advisory Sentencing Guidelines range, finding by a preponderance of the evidence that McBraun’s distribution of fentanyl cut with heroin was both the cause and a contributing factor to the victim’s death. Judge Seabright noted that to ignore McBraun’s role in the victim’s death would be to ignore reality.
Court proceedings confirmed that McBraun’s fentanyl source was Sajib Anas, who in turn received illegal narcotics from Bronson Kepaa. Anas, Kepaa, and Germain all pled guilty to various federal charges. Germain was sentenced in July 2024 to approximately one year in prison. In October 2024, Anas received 85 months in prison. Kepaa was sentenced to 151 months in prison for distributing methamphetamine and fentanyl and 120 months for possessing an unregistered firearm.
The drug investigation was conducted by the Drug Enforcement Administration and the Honolulu Police Department. The assault investigation was conducted by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Aislinn Affinito, Michael Nammar, and Mohammad Khatib prosecuted the case.
Confluence Corp. Settles Allegations of False Claims for Payment of Work Performed by Unqualified WeldersRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Confluence Corp. d/b/a Regal Service Company (“Regal”), a Hawaii corporation and Department of the Navy contractor, has agreed to pay $300,000 to settle allegations that it violated the False Claims Act by knowingly submitting false claims for payment for work performed by unqualified welders on the USS Chung Hoon, USS John Paul Jones, and USS William P. Lawrence at the Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility between January 2020 and October 2021.
The United States alleged that after an initial review of Regal’s contract work, the Navy determined Regal had used welders lacking required certifications to perform the identified tasks. During a full-scale review of Regal’s work, the Navy confirmed the welders were unqualified and also determined that the welds were deficient. The United States further alleged that Regal provided the Navy falsified documents to make it appear as though its welders had obtained the required certifications when in fact they had not.
The $300,000 payment from Regal includes $150,000 in restitution to cover costs incurred by the Navy to address the faulty welds.
“When anyone – an individual or corporation – does business with the United States of America, the falsification of documents and other false representations will not be tolerated,” said Clare E. Connors, the United States Attorney for the District of Hawaii. “The failure to perform the terms of a government contract risks harming our servicemembers, and our office will continue to hold companies accountable for such misconduct.”
“Submitting false claims for work performed by unqualified welders harms operational readiness and endangers warfighter safety,” said Special Agent in Charge Greg Gross of the Naval Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS appreciates our investigative partners for their continued efforts to help protect the Department of the Navy from threats posed by such fraud.”
“Department of Defense (DoD) contractors bear a solemn trust to earnestly fulfill their contractual terms. Our military readiness, as well as the health and safety of our brave men and women in uniform, depend upon it,” said Stanley A. Newell, Special Agent-in-Charge of the DoD, Office of Inspector General’s, Defense Criminal Investigative Service (DCIS), Transnational Operations Field Office. “The dedicated professionals of DCIS and our partner agencies will work tirelessly to hold those who violate the public trust accountable.”
The False Claims Act allows for treble damages, and civil penalties of up to $27,894 per violation. DCIS’s Transnational Operations Field Office and NCIS’s Economic Crimes Field Office West investigated the case.
Assistant United States Attorney Sydney Spector handled the matter.
The claims against Regal resolved by the settlement are allegations only and there has been no determination of liability.
Detroit Man Sentenced to 30 Years for Drug Trafficking and Discharging Firearm at Drug DealRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Gabriel Antone Eberhardt, 42, of Detroit, Michigan, was sentenced today by United States District Judge Jill A. Otake to 30 years in federal prison—including 12 years for conspiring to distribute fentanyl, heroin, and methamphetamine and a consecutive 18 years for discharging a firearm in connection with the distribution of heroin—as well as 5 years of supervised release. The court also ordered that Eberhardt forfeit his interests in $250,000 in drug proceeds, multiple firearms, hundreds of rounds of ammunition, and a vehicle. Additional firearms and ammunition were administratively forfeited by the government.
According to court records, from October 2019 to June 30, 2021, Eberhardt, a/k/a “Stacks,” co-led a drug trafficking organization (DTO) in Honolulu that distributed large amounts of fentanyl, heroin, and methamphetamine. Eberhardt’s DTO obtained the drugs from suppliers in Philadelphia and Los Angeles, who mailed the drugs to Honolulu. The DTO distributed the fentanyl—a potent synthetic opioid 50 times stronger than heroin—in mixtures with heroin and in counterfeit oxycodone tablets. In connection with a heroin distribution on October 21, 2019, Eberhardt admitted he fired several shots from a semi-automatic pistol at a person accompanying his drug customer. One of the rounds struck the victim’s torso, requiring medical attention. The victim survived the shooting.
During an investigation by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the United States Postal Inspection Service (USPIS), and the Honolulu Police Department (HPD), agents made dozens of controlled purchases of fentanyl, heroin, and methamphetamine from the conspirators, and executed 15 search warrants on residences, rental storage units, and parcels. As a result of the controlled purchases and warrants, law enforcement agents seized 6.5 kilograms of fentanyl, 6.4 kilograms of heroin, 2.8 kilograms of methamphetamine, seven firearms, including assault rifles and semi-automatic pistols, hundreds of rounds of ammunition, a vehicle, and more than $250,000 in cash drug proceeds.
In addition to Eberhardt, the following conspirators were prosecuted in the District of Hawaii:
- Jared Northern, a/k/a “White Boy Jay,” a/k/a “Gage,” 25, of Honolulu, pled guilty to conspiracy and two counts of distribution of controlled substances, and on May 15, 2024, was sentenced to 120 months in federal prison and five years of supervised release;
- Zakiyyah Mareus, a/k/a “Kai,” 27, of Miami Gardens, Florida, pled guilty to conspiracy, and on August 8, 2024, was sentenced to 37 months in federal prison and three years of supervised release;
- Isaiah Marks, a/k/a “Seh,” 25, of Honolulu, pled guilty to conspiracy and two counts of distribution of controlled substances, and on January 18, 2023, was sentenced to 24 months in federal prison and four years of supervised release;
- Tishanah Iwalani Kaio-Barrozo, 33, of Honolulu, pled guilty to distribution of controlled substances, and on June 7, 2022, was sentenced to nine months in federal prison and three years of supervised release;
- Michael Garrett, a/k/a “Sideburns,” a/k/a “Burns,” 41, of Romulus, Michigan, pled guilty to conspiracy, and on March 28, 2024, was sentenced to three months in federal prison and five years of supervised release;
- Jennifer Ashcraft, a/k/a “Jessie,” a/k/a “Jess,” 33, of Honolulu, pled guilty to conspiracy and is scheduled for sentencing on November 22, 2024;
- Martzes Junior, a/k/a “Green,” 43, of Southfield, Michigan, pled guilty to conspiracy and possession of a firearm in connection with a drug trafficking crime and is scheduled for sentencing on November 26, 2024;
- Lynden David Lightburn, a/k/a “Soulja,” 51, of Los Angeles, pled guilty to conspiracy and is scheduled for sentencing on December 6, 2024;
- Jason Darnell Smith, a/k/a “Famous,” a/k/a “Sweets,” 41, of Detroit, Michigan, pled guilty to conspiracy and is scheduled for sentencing on December 9, 2024; and
- Robert Adams, a/k/a “Tre,” a/k/a “Tre Block,” a/k/a “Block,” a/k/a “TBlock,” a/k/a “Ray Smith,” 37, of Philadelphia, pled guilty to conspiracy and is scheduled for sentencing on February 26, 2025.
“Increasingly, the influx of illegal, deadly narcotics through transnational distribution operations is accompanied by gun violence, which has exponentially harmful consequences for our community,” said United States Attorney Clare E. Connors. “This large-scale prosecution reflects the highest level of cooperation among multiple federal and local law enforcement entities, and today’s sentence affirms that there will be accountability for those who profit from causing such harm in our state.”
“Today’s sentencing represents years of collaboration between multiple law enforcement agencies to bring down one of Hawaii’s most dangerous drug operations,” said FBI Honolulu Special Agent in Charge Steven Merrill. “This case serves as a warning that we will use every resource available to make our communities safer by dismantling their operations and bringing their members to justice.”
“Gabriel Eberhardt, a leader of a greed-driven drug trafficking organization, will be off our streets and behind bars for a very long time,” said DEA Los Angeles Field Division Deputy Special Agent in Charge Anthony Chrysanthis. “I want to thank DEA investigators and all state and local law enforcement partners, who worked tirelessly and with urgency to bring these criminals to justice. However, our job here is not complete. We will continue to investigate, pursue and take apart these operations.”
“Mr. Eberhardt’s egregious actions were exacerbated by his using a firearm to shoot a person in furtherance of his drug trafficking,” said ATF Seattle Special Agent in Charge Jonathan Blais. “When search warrants were executed for this operation, seven firearms were recovered, including semiautomatic rifles and handguns, which further shows the dangers to the community posed by Mr. Eberhardt and his co-conspirators. This significant sentence was clearly warranted.”
“Sending illegal drugs in the mail harms our communities and endangers postal workers, said USPIS Inspector in Charge Stephen Sherwood. “Postal inspectors will not allow the U.S. Mail to be misused to facilitate drug trafficking activities. I want to express my gratitude to our law enforcement partners for their teamwork to disrupt and dismantle this dangerous drug trafficking organization.”
“The success of this investigation is directly attributable to multi-agency cooperation and the shared commitment to making Honolulu safer for our residents and visitors,” said HPD Chief Arthur “Joe” Logan. “The Honolulu Police Department will continue to work closely with our Federal partners to identify, disrupt, and dismantle drug trafficking organizations operating across Oahu.”
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by FBI, DEA, ATF, USPIS, and HPD. Assistant U.S. Attorney Craig S. Nolan is prosecuting the case.
Statement of United States Attorney Clare E. Connors Regarding November 2024 General ElectionRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced today that Assistant United States Attorney (AUSA) Michael Nammar will lead the efforts of her Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 5, 2024, general election. AUSA Nammar has been appointed to serve as the District Election Officer (DEO) for the District of Hawaii, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said United States Attorney Connors. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
United States Attorney Connors stated that: “The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Nammar will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 808-541-2850.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 808-566-4300.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
United States Attorney Connors said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate. It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Maui Man Pleads Guilty to Illegally Possessing Explosive Device and PowdersRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Robert Francis Dumaran, 47, of Kahului, Maui, pleaded guilty in federal court yesterday to possessing explosive powders as a convicted felon and possessing an unregistered destructive device. Dumaran’s sentencing is set for February 2, 2025, before United States District Judge Jill A. Otake.
According to court documents and information presented in court, Dumaran admitted he attempted to detonate a homemade firework at the intersection of Lono Avenue and Hina Avenue on Maui, Hawaii, during either the late evening of July 22, 2024, or the early morning of July 23, 2024. Dumaran’s homemade firework contained black powder (gunpowder) and flash powder. As a convicted felon, Dumaran was prohibited from possessing explosives. The Maui Police Department (“MPD”) discovered and rendered safe Dumaran’s homemade firework in the morning of July 23, as reported in a prior press release.
The Federal Bureau of Investigation (“FBI”) later searched Dumaran’s residence and discovered an improvised hand grenade. Dumaran admitted he crafted and possessed that grenade for use as a defensive weapon capable of causing destruction and death.
Dumaran is not charged in connection with improvised explosive devices recovered on August 7, 2024, in Kula, Maui or the August 8, 2024 explosion in Pukalani, Maui.
The case was investigated by the FBI and MPD. Assistant U.S. Attorneys Jonathan D. Slack and Wayne A. Myers are prosecuting the case.
Hawaii Man Pleads Guilty to Violating the Atomic Energy ActRead the Press Release
HONOLULU – Mark Kazee, 60, of Hawaii, pleaded guilty today to violating the Atomic Energy Act by transferring equipment containing Nuclear Regulatory Commission (NRC)-regulated radioactive material from a company he was employed by, which held an NRC required license for the material, to another company without making a record of such transfer as required. Kazee was part owner of the second company, which did not have a license from the NRC.
According to court documents, Kazee worked in the materials and equipment testing industry for over 30 years, serving both as an inspector and as a supervisor of inspectors who used industrial radiography. Industrial radiography is the process of using a radiation source and a specialized camera to examine materials below the surface to check for flaws. Industrial radiography can emit Xrays, gamma rays and neutrons. Kazee worked for the first company starting in 2016 as its regional manager in Hawaii. Kazee’s employer had contracts to conduct testing with various companies in Hawaii, including petroleum refineries.
In September 2018, Kazee and another person created their own company to conduct the same type of testing as Kazee’s employer. Kazee’s company did not have the required license from the NRC to conduct industrial radiography. Soon after Kazee’s employer’s contract with a major refinery on Oahu expired in January 2019, Kazee’s new company began conducting inspections at the refinery, including industrial radiography, using his old employer’s equipment. The equipment contained Iridium-192 and depleted uranium radioactive source material. Although Kazee knew he was required to create and maintain a record for his employer for any transfer of the radiography equipment to any other company or individual who was not his employer, he did not.
“Kazee knew what had to be done to comply with the regulations that protect the public from potential harms arising from the use of radioactive materials, but consciously chose not to follow them,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “His failures appropriately have criminal consequences and we will continue to pursue such to protect the community.”
“Radiography is an impressive technology, and when it is used with proper safeguards, it increases safety and improves lives,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department will vigorously prosecute those like Kazee who would circumvent legal requirements for transfer of radioactive materials and treat radiation safety and security as an afterthought.”
“It is crucial that those who use radioactive material for commercial purposes follow the rules to protect the user and the public,” said Director Thomas Ashley of the NRC’s Office of Investigations. “The NRC does not tolerate willful violations of its requirements and demands that licensees and their employees act with integrity and abide by requirements put in place to ensure they’re used safely.”
Kazee is scheduled to be sentenced on January 13 before U.S. District Court Judge J. Michael Seabright for the District of Hawaii. Kazee faces a maximum penalty of two years in prison. Judge Seabright will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The NRC’s Office of Investigations investigated the case.
Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii and Senior Trial Attorney Kris Dighe of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
Owner of Oahu Physical Therapy Clinics Pleads Guilty to Health Care FraudRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Stephen Timothy Wells, 41, pleaded guilty today in federal court to executing a scheme to defraud health care benefit programs through the submission of false billings. Sentencing is scheduled for January 29, 2025, before U.S. District Judge Jill A. Otake.
According to court documents and information presented in court, Wells was the owner and operator of Oahu Spine and Rehab (“OSR”), a physical therapy clinic with locations in Kailua and Aiea. From July 2013 through early 2020, Wells submitted false claims for payment for physical therapy services to TRICARE, the health care program for United States military service members and their families, and Medicare. Wells admitted he directed OSR to submit claims to these health care benefit programs using the unique provider numbers of doctors, nurses, and physical therapists, thereby falsely stating that they had personally provided the physical therapy services to patients, when in fact, the services were provided by Wells’s unlicensed staff members. These unlicensed staff members included massage therapists, athletic and personal trainers, and one individual who had no professional certifications whatsoever.
As part of the Plea Agreement, Wells stipulated that his scheme caused a loss of between $250,000 and $550,000 and agreed to pay total restitution in the amount of $392,157.20, with half to be paid before sentencing. The United States and Wells agreed that Wells should be sentenced to a term of between probation and two years in prison.
The case was jointly investigated by the Defense Criminal Investigative Service, the Office of Inspector General of the Department of Health and Human Services, and the U.S. Department of Veteran Affairs, Office of Inspector General. The case was prosecuted by Assistant United States Attorney Mohammad Khatib.
Discharged Army Soldier Formerly Based in Hawaii Sentenced to 3 Months in Prison for Theft from GovernmentRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Andre Fulton, II, 30, of Georgia, was sentenced today by U.S. District Judge Jill A. Otake to three months in prison followed by three years of supervised release for theft of government money. Fulton was also ordered to pay $202,309.27 in restitution and a $100 fine.
According to information provided to the court, in January 2018, the defendant, while stationed at Fort Hood, Texas, entered a fraudulent marriage. Thereafter, his co-conspirator filed an application for a change in immigration status, based on her fraudulent marriage to the defendant. The defendant admitted in his plea agreement he knew the purpose of the fraudulent marriage was to permit his co-conspirator, who was not a United States citizen, to evade the immigration laws of the United States and remain in the United States illegally. The defendant further admitted that the marriage was fraudulent because, among other things, the defendant and his co-conspirator were not romantically involved, never lived together, did not intend to establish a life together, and married only for the purpose of using the marriage ceremony to facilitate their fraudulent scheme. The defendant received several thousand dollars as payment to enter the fraudulent marriage.
In May 2019, the Army transferred the defendant to Fort Shafter, Hawaii. His co-conspirator and her minor daughter remained on the mainland. The defendant admitted that in August and September 2019, he submitted paperwork claiming, falsely, that his co-conspirator and her minor daughter were living with the defendant, in Hawaii, as his dependents. If they were truly his dependents, the defendant would have been entitled to additional money for housing allowances, medical coverage, and cost of living allowances.
As a result of the defendant’s deceit, a non-citizen was able to maintain her status in the United States and the government paid out at least $202,039.27 (Housing Allowances - $166,071.35; Medical Expenses - $30,214.40; and Cost of Living Adjustment - $5,753.52) in unauthorized benefits.
“While the United States appropriately confers significant benefits upon our military personnel for their service, it does so with the understanding that such benefits will be not exploited or misused,” said U.S. Attorney Clare E. Connors. “Here, defendant Fulton exploited his position with the United States military to violate our immigration laws and defraud the government. We will hold those who abuse our laws and privileges accountable under the law.”
“The successful prosecution of this case highlights the Department of the Army Criminal Investigation Division’s unwavering commitment to upholding the integrity of our military and ensuring those who violate the public’s trust are held accountable,” said Special Agent-in-Charge Ruben R. Santiago, Department of the Army Criminal Investigation Division’s Pacific Field Office. “Engaging in fraudulent activities erodes confidence in our institutions and diverts funds and resources that should be dedicated to our nation’s defense.”
“HSI is committed to safeguarding the nation through protecting the integrity of our country’s immigration system,” said HSI’s Acting Special Agent in Charge Lucia Cabral-DeArmas. “Through our partnerships with federal agencies, HSI ensures the benefits afforded to honorable service members are not abused.”
The investigation was conducted by the U.S. Citizenship and Immigration Services, Fraud Detection and National Security Directorate; Army Criminal Investigation Division; Defense Criminal Investigative Service; and Homeland Security Investigations.
Assistant U.S. Attorney Darren W.K. Ching prosecuted the case.
Second Maui Man Arrested in Connection with IEDRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Jess Kiesel Lee, age 43, of Kula, Maui, was arrested on September 18, 2024 pursuant to a criminal complaint for possessing explosives as a felon and damaging property by means of explosives. An initial appearance in federal court is set for September 23, 2024.
The complaint and affidavit allege that on August 7, 2024, Maui Police Department (“MPD”) officers encountered multiple improvised explosive devices (“IEDs”) near Kaamana Street in Kula. One of the IEDs, which had been exploded before MPD arrived, contained a mixture of compounds consistent with the remnants of explosive powder.
If indicted and convicted of the charged offenses, the defendant would face up to ten years in prison on the felon in possession of explosives charge and a mandatory minimum sentence of at least five years in prison, but no more than and up to 20 years in prison, on the property damage charge. The charges and information contained in the federal complaint are merely accusations, and the defendant is presumed innocent unless and until indicted and proven guilty beyond a reasonable doubt in a court of law.
Lee is not charged for the IED located near Lono Avenue in Kahului on July 23, 2024 or the explosion damaging a car in Pukalani on August 8, 2024, both mentioned in the complaint filed on August 13, 2024 charging another man for the IED located on July 23, 2024.
The Federal Bureau of Investigation and MPD conducted the investigation resulting in the complaint and arrest, and the investigation into this matter remains ongoing. The prosecution is being handled by Assistant U.S. Attorneys Jonathan D. Slack and Wayne A. Myers.
U.S. Justice Department Designates Community in District of Hawaii Under Section 1103 of the Violence Against Women Act, Prioritizing Firearms Prosecutions of Domestic Violence OffendersRead the Press Release
HONOLULU – Attorney General Merrick B. Garland has approved an initial set of 78 communities across 47 states, territories, and the District of Columbia for designation under Section 1103 of the Violence Against Women Act Reauthorization Act of 2022.
The Justice Department - through its United States Attorney’s offices (USAOs) and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Field Divisions - will partner with each designated jurisdiction to develop a plan to reduce intimate partner firearm violence and to prioritize prosecutions of domestic violence offenders prohibited under 18 U.S. Code Section 922(g) from owning firearms.
“Domestic violence remains one of the most devastating crimes plaguing our community, and when perpetrators possess firearms, the consequences are too often deadly,” said United States Attorney Clare E. Connors. “This initiative
demonstrates our commitment to working with our local and state law enforcement partners by using federal laws and federal resources to help protect potential victims from the illegal use of firearms.”
“We are continuing our efforts to ensure that intimate partner firearm violence is addressed in a proactive manner and we continue to work to deter domestic violence offenders from possessing firearms, investigating those who choose to do so illegally,” said ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “Each of our field offices has a Violence Against Woman Act coordinator, as maintaining the safety of our families and communities is the cornerstone of ATF’s mission in partnership with our U.S. Attorney offices.”
Communities have been designated in close coordination with community stakeholders. They include rural areas, suburban areas, urban areas, and Tribal communities. The Justice Department used data to identify communities that could benefit from increased focus on intimate partner violence resources and where the local jurisdiction is committed to partnering with the Department to increase the use of federal tools to prosecute offenders under 18 U.S.C. 922(g). The designation represents the partnership and coordination between the department and the local jurisdiction to ensure federal resources are being leveraged effectively to address intimate partner firearm violence.
In the District of Hawaii, the City and County of Honolulu has been designated as a jurisdiction.
The Justice Department anticipates additional jurisdictions to be designated as USAOs continue coordination with their local stakeholders. All USAOs, with or without specific community designations under Section 1103, will continue to combat intimate partner firearm violence and prioritize prosecutions of domestic violence offenders as part of their Project Safe Neighborhoods strategy and in support of the Department’s Comprehensive Strategy for Reducing Violent Crime.
Oahu Man Sentenced to 181 Months for Possession of Methamphetamine and FirearmRead the Press Release
HONOLULU – United States Attorney Clare E. Connors announced that Henry K. Lii, 58, of Oahu, was sentenced yesterday by Senior United States District Judge Helen Gillmor to 181 months in federal prison and a lifetime of supervised release for possessing methamphetamine with intent to distribute and possessing a firearm in furtherance of a drug trafficking crime.
According to court records, in October 2023, while living in Honolulu, Hawaii, and on federal supervised release in connection with a 2007 federal drug conviction, Lii was found in possession of nearly three pounds of methamphetamine, as well as cocaine, marijuana, and a 9mm “ghost gun” used to protect his drugs and any drug proceeds. In February 2024, Lii pled guilty to both offenses, admitting that he intended to distribute the drugs and knowingly possessed the firearm in furtherance of his drug trafficking.
Judge Gillmor also sentenced Lii to an additional 36 months for committing the foregoing offenses while on supervised release on his 2007 conviction, to run consecutively to his 181-month sentence. The case was investigated by the Federal Bureau of Investigation and the
Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Assistant U.S. Attorney Barbara Eucker.