District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Senior Manager for Government Contractor Charged in Cybersecurity Fraud SchemeRead the Press Release
A federal grand jury in the District of Columbia returned an indictment yesterday charging a former senior manager at a Virginia-based government contractor with major government fraud, wire fraud, and obstructing federal audits for allegedly carrying out a multi-year scheme to mislead federal agencies about the security of a cloud-based platform used by the U.S. Army and other government customers.
According to court documents, from approximately March 2020 through at least November 2021, Danielle Hillmer, 53, of Chantilly, Virginia, allegedly carried out a scheme to defraud the United States by obstructing federal auditors and falsely representing that the contractor’s cloud platform had implemented required security controls. The indictment alleges that, although the platform was marketed as a secure environment for federal agencies, Hillmer concealed the platform’s noncompliance with security controls under the Federal Risk and Authorization Management Program (FedRAMP) and the Department of Defense’s Risk Management Framework. Specifically, the indictment alleges that Hillmer falsely represented that security controls were implemented at the FedRAMP High baseline and at Department of Defense Impact Levels 4 and 5, despite repeated warnings that the system lacked required access controls, logging, monitoring, and other security capabilities.
As part of the scheme, Hillmer allegedly sought to influence and obstruct third-party assessors during required audits in 2020 and 2021 by concealing deficiencies and instructing others to hide the true state of the system during testing and demonstrations. She also allegedly made false and misleading representations to the U.S. Army to induce it to sponsor the platform for a Department of Defense provisional authorization. According to the indictment, Hillmer submitted, and caused others to submit, authorization materials to assessors, authorizing officials and government customers that she knew contained materially false information in order to obtain and maintain government contracts and authorizations to operate.
Hillmer is charged with two counts of wire fraud, one count of major government fraud and two counts of obstruction of a federal audit. If convicted, Hillmer faces a maximum penalty of 20 years in prison for wire fraud, a maximum penalty of 10 years in prison for major government fraud and a maximum penalty of five years in prison for each count of obstruction of a federal audit. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Deputy Inspector General Robert C. Erickson of the U.S. General Services Administration Office of Inspector General (GSA-OIG) made the announcement.
The GSA-OIG, Defense Criminal Investigative Service, Naval Criminal Investigative Service and The Department of the Army Criminal Investigation Division are investigating the case.
Trial Attorneys Lauren Archer and Paul Hayden of the Criminal Division’s Fraud Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Sues Minneapolis Public Schools for Racial Discrimination Against TeachersRead the Press Release
Yesterday, the Justice Department’s Civil Rights Division filed a lawsuit against Minneapolis Public Schools (MPS) over MPS’ collective bargaining agreement (CBA) with a teachers’ union which preferences teachers who are members of an “underrepresented population” in employment decisions and prioritizes “Black Men Teach Fellows” for certain employment benefits, terms, and conditions.
“Discrimination is unacceptable in all forms, especially when it comes to hiring decisions,” said Attorney General Pamela Bondi. “Our public education system in Minnesota and across the country must be a bastion of merit and equal opportunity — not DEI.”
“Employers may not provide more favorable terms and conditions of employment based on an employee’s race and sex,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously pursue employers who deny their employees equal opportunities and benefits by classifying and limiting them based on their race, color, national origin, or sex.”
The lawsuit, filed in the U.S. District Court for the District of Minnesota, notes that MPS seeks to increase their “BIPOC staffing . . . to at least 40% by 2026,” and that by 2026–2027, at least “54.3 %” of new teacher hires “identify as Black, Indigenous, and People of Color (BIPOC).” MPS’ CBA classifies teachers for involuntary reassignment, layoff, and reinstatement depending on whether the teacher is a member of an “underrepresented population.” The United States’ complaint further alleges that MPS awards members of a third-party group organization called “Black Men Teach Fellows” multiple benefits, terms, and conditions of employment not available to female or non-black teachers, in violation of Title VII of the Civil Rights Act of 1964, as amended.
The complaint asks the court to declare that MPS discriminates against teachers based on their race, color, national origin, and sex, in violation of Title VII, and to enter a permanent injunction against MPS stopping them from implementing similar discriminatory provisions in a future CBA.
This case stems from an investigation launched by the Employment Litigation Section of the Department of Justice’s Civil Rights Division.
You can view the complaint here.
High-Level Colombian Cocaine Trafficker Sentenced to 14 Years in PrisonRead the Press Release
A Colombian national was sentenced yesterday to 14 years in prison for conspiring to send more than 450 kilograms of cocaine into the United States.
According to court documents, Alejandro Parra Bustamante, 45, was a high-level member of the Shottas and Clan de Bustamante, the leading drug trafficking organizations operating out of Buenaventura, Colombia, one the country’s main seaports and a primary hub for cocaine being transported out of Colombia to Central America, Mexico, and the United States. Between around March 2019 and March 2021, Parra Bustamante led a conspiracy to sell 500 to 1,000 kilograms of cocaine to U.S. buyers during which approximately 15 kilograms of cocaine samples were sent to Tucson, Arizona.
Parra Bustamante was indicted in May 2021 and extradited to the United States in August 2023. Parra Bustamante pleaded guilty to one count of cocaine trafficking conspiracy on Feb. 6 before a federal judge in the District of Columbia. Jorge Eliecer Florez Alvarez, Parra Bustamante’s co-conspirator, was sentenced to 102 months’ imprisonment on Oct. 16.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Acting Special Agent in Charge Ray Rede for Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Arizona made the announcement.
HSI investigated the case.
Trial Attorneys Colleen King and Roger Polack of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section prosecuted the case. The Criminal Division’s Office of International Affairs worked with law enforcement partners in Colombia to secure the arrest and extradition of Parra Bustamante.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Homeland Security Task Force and Project Safe Neighborhoods.
Court Approves Justice Department’s Settlement in UnitedHealth Group and Amedisys MergerRead the Press Release
The United States District Court for the District of Maryland today entered the Final Judgment proposed by the Justice Department’s Antitrust Division, together with its state co-Plaintiffs, requiring broad divestitures to resolve Plaintiffs’ challenge to UnitedHealth Group Incorporated’s (UnitedHealth) $3.3 billion acquisition of Amedisys Inc. In addition, Amedisys must pay a $1.1 million civil penalty to the United States for falsely certifying that it had provided “true, correct, and complete” responses under the Hart-Scott-Rodino (HSR) Antitrust Improvements Act of 1976.
“Under President Trump and Attorney General Pam Bondi, this Department of Justice has moved quickly to resolve transactions, ensuring Americans see the benefits sooner,” said Associate Attorney General Stanley Woodward. “This settlement preserves competition where it matters most for American families – healthcare.”
“This is a tremendous outcome for competition in the healthcare industry, where competition itself is critical to the public interest and the well-being of all Americans,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “I commend the Antitrust Division’s Staff for prosecuting this case throughout a contentious litigation to reach this settlement on behalf of seniors, hospice patients, nurses, and their families.”
The settlement requires UnitedHealth and Amedisys to divest at least 164 home health and hospice locations (including one affiliated palliative care facility) across 19 states, accounting for approximately $528 million in annual revenue. By number of facilities, this is the largest divestiture of outpatient healthcare services to resolve a merger challenge. In addition, the proposed settlement:
- Obligates UnitedHealth to divest eight additional locations if it fails to obtain regulatory approval for the divestiture of associated facilities without the additional locations;
- Imposes a monitor to supervise UnitedHealth’s divestiture of the assets and compliance with the consent decree;
- Provides the divestiture buyers with the assets, personnel, and relationships to compete against UnitedHealth in the overlap areas;
- Incorporates robust protections to strengthen adherence to the decree and deter interference with the divestiture buyers’ ability to compete; and
- Requires Amedisys to pay a $1.1 million civil penalty and train its corporate and field leadership on antitrust compliance for falsely certifying that the company had truthfully, correctly, and completely responded to the United States’ requests for documents.
The Court has appointed William E. Berlin, of Hall, Render, Killian, Heath & Lyman, to serve as monitor in this matter.
UnitedHealth is a vertically integrated insurer, healthcare provider, pharmacy benefit manager, and healthcare software and services vendor headquartered in Eden Prairie, Minnesota. UnitedHealth acquired Amedisys’s home health and hospice rival LHC Group Inc. (LHC) in 2023. Amedisys was a home health and hospice services provider headquartered in Baton Rouge, Louisiana.
United States Department of Justice Transfers 14 Mexican Nationals with Drug or Firearm Convictions to Mexico Under International Prisoner Transfer TreatyRead the Press Release
The United States Justice Department’s Office of International Affairs, with support from the Department’s Federal Bureau of Prisons (BOP), transferred 14 Mexican nationals on Friday to Mexican authorities pursuant to the International Prisoner Transfer Treaty between the United States and Mexico. Each individual was serving a federal sentence in the United States for drug-distribution offenses, illegal firearms offenses, or both.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Assistant Director Shane Salem of BOP’s Correctional Programs Division made the announcement.
All 14 inmates requested transfer to their home country. Following approval by both governments, the inmates were transferred on Dec. 5 and will serve the remainder of their sentences in Mexico under the terms of the treaty.
These transfers were conducted through the congressionally authorized International Prisoner Transfer Program. The Criminal Division’s International Prisoner Transfer Unit (IPTU), housed in the Office of International Affairs, administers the program and coordinates all treaty-based transfers. Through this program, eligible foreign nationals in federal and state custody may, under certain conditions, be transferred to their country of nationality to complete their sentences. The United States currently maintains 10 additional bilateral transfer agreements and two multilateral transfer conventions, providing treaty relationships with more than 85 countries.
The same treaties also permit American nationals incarcerated abroad to apply for transfer to the United States. On Dec. 9, three U.S. citizens convicted for controlled-substance trafficking were transferred to the United States. The remaining terms on their sentences range from 22 months to four and a half years.
To learn more about the International Prisoner Transfer Program, visit: https://www.justice.gov/criminal/criminal-oia/iptu.
Justice Department Marks Texas’ Successful Completion of Reforms at Thirteen State-Operated Facilities for People with Intellectual DisabilitiesRead the Press Release
Today, the Justice Department joined with the State of Texas in asking a federal district court to dismiss a long-running case that saw the State reform thirteen State-operated facilities for people with intellectual or developmental disabilities (IDD). The Justice Department’s Civil Rights Division brought to completion years of work that now requires Texas to protect the rights of Americans who are in its care at these centers. Through a court order called a consent decree, Texas implemented reforms to protect residents from harm, provide clinical care and education, and provide services for people with IDD in integrated settings.
“We commend Texas for its tremendous progress in implementing this decree and its commitment to upholding the federal rights of people with intellectual disabilities living in state care,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We recognize and appreciate the dedication of the staff and leaders of the Texas Health and Human Services Commission who have transformed the state centers to protect the rights of all Americans — even some of the most vulnerable.”
This case began with an investigation of Lubbock State School (since renamed the Lubbock SSLC) in 2005, followed by investigations of the remaining 12 state-run centers in 2008 and 2009. In June 2009, the United States and Texas entered the decree, and the court approved it. With the court’s approval, the parties modified the decree in September 2021. The State worked collaboratively with the Civil Rights Division to implement the decree’s requirements for the last several years. Today’s joint filing details the State’s extensive improvements of the facilities in compliance with the decree, as verified by an Independent Reviewer.
Department of Justice Rule Restores Equal Protection for All in Civil Rights EnforcementRead the Press Release
Today, the Justice Department issued a final rule updating its regulations under Title VI of the Civil Rights of 1964. This rule ensures that our nation’s federal civil rights laws are firmly grounded in the principle of equal treatment under the law by eliminating disparate-impact liability from its Title VI regulations.
“For decades, the Justice Department has used disparate-impact liability to undermine the constitutional principle that all Americans must be treated equally under the law,” said Attorney General Pamela Bondi. “No longer. This Department of Justice is eliminating its regulations that for far too long required recipients of federal funding to make decisions based on race.”
“The prior ‘disparate impact’ regulations encouraged people to file lawsuits challenging racially neutral policies, without evidence of intentional discrimination,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Our rejection of this theory will restore true equality under the law by requiring proof of actual discrimination, rather than enforcing race- or sex-based quotas or assumptions.”
“For over 50 years, the prior disparate-impact rule fostered the very thing the Civil Rights Act of 1964 prohibited — discrimination on the basis of race, color, or national origin. But with today’s rule,” said Chief of Staff and Supervisory Official for the Office of Legal Policy Nicholas Schilling. “The Department reaffirms Congress’ commitment to measure all Americans by merit.”
Congress enacted Title VI, 42 U.S.C. § 2000d, as part of the landmark Civil Rights Act of 1964. It prohibits discrimination on the basis of race, color, and national origin in programs and activities receiving Federal financial assistance. In 1973, the federal government added to the law a new rule — disparate impact — that was not part of the law. The term “disparate impact” refers to the concept of imposing liability on a federal fund recipient only because there may be different outcomes for different people, not based on prejudice or intent. That prior disparate-impact rule was already enjoined in one state, prohibiting DOJ from enforcing it there.
The Department’s new rule reflects the best reading of Title VI, as the Supreme Court has repeatedly recognized for over twenty years. Title VI has and will continue to prohibit intentional discrimination. The Department’s new rule ensures that recipients of federal funding will be judged on their actual conduct, not on statistical outcomes or circumstances beyond their control.
Despite decades of case law, the Department’s prior Title VI disparate-impact regulations remained on the books, sowing confusion and creating costly compliance obligations for states, local governments, nonprofits, and private organizations receiving federal financial assistance. This new rule eliminates these burdens, promotes consistent enforcement across agencies, and restores public confidence in civil rights law by aligning the Department’s regulations with the Constitution.
Justice Department Sues Loudoun County for Violating Equal Protection of Christian StudentsRead the Press Release
Read the motion to intervene and the supporting memorandum
The Justice Department announced today that it filed legal action against the Loudoun County (Va.) School Board (Loudoun County) for its denial of equal protection based on religion. The suit alleges that Loudoun County applied Policy 8040, which requires students and faculty to accept and promote gender ideology, to two Christian, male students in violation of the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution.
“Students do not shed their First Amendment rights at the schoolhouse gate,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Loudoun County’s decision to advance and promote gender ideology tramples on the rights of religious students who cannot embrace ideas that deny biological reality.”
Policy 8040 requires all students, regardless of their religious beliefs, to adopt the Loudoun County School Board’s understanding of “gender identity” — including its practical application that affects all students’ use of intimate spaces, such as bathrooms and changing facilities. At Stone Bridge High School, a female student took advantage of this policy, entered the boys’ locker room, and recorded audio and video of the boys in that locker room. Several boys spoke out about this incident, including two Christian, male students whose religious beliefs require them to use biologically accurate pronouns and use sex-segregated facilities.
Loudoun County determined that these Christian, male students’ religious practice violated school policy, recasting constitutionally protected activity as “sex-based discrimination” and “sexual harassment.” As punishment, Loudoun County suspended the boys for ten days and ordered them to submit to a “Comprehensive Student Support Plan” that further violates the boys’ right to free exercise of religion at school.
The Department’s motion to intervene in S.W. et al. v. Loudoun County School Board is pending before the U.S. District Court for the Eastern District of Virginia.
Justice Department Opens Investigation into Conditions of Colorado Prisons and Youth FacilitiesRead the Press Release
Today, the Justice Department’s Civil Rights Division announced that it has opened a civil investigation into conditions within facilities operated by the Colorado Department of Corrections (DOC) and Colorado Department of Youth Services (DYS). The investigation will examine DOC and DYS policies and practices to ensure that DOC inmates and youths in the custody of DYS are being afforded their rights under the U.S. Constitution and federal law.
“The Constitution protects every American, whether they are a young person confined in a juvenile facility or an elderly person confined to a prison,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We are committed to upholding our federal civil rights laws so that no one is subject to unconstitutional mistreatment when held in state custody.”
The Division has not reached any conclusions regarding allegations in this matter. The Division will investigate DOC and DYS pursuant to its authority to enforce the Civil Rights of Institutionalized Persons Act (CRIPA). Under CRIPA, the Department has the authority to investigate violations of prisoners’ constitutional rights that result from a “pattern or practice of resistance to the full enjoyment of such rights.” The department has conducted CRIPA investigations of many correctional systems, and where violations have been found, the resulting settlement agreements have led to important reforms. The Division will also investigate DOC under the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA), 42 U.S.C. § 2000cc, and DYS under Violent Crime Control and Law Enforcement Act of 1994, 34 U.S.C. § 12601.
Individuals with relevant information are encouraged to contact the department via civilrights.justice.gov/report/. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt
Justice Department Requires Divestitures to Proceed with Constellation’s Proposed $26.6 Billion Acquisition of CalpineRead the Press Release
Note: View proposed settlement here.
The Justice Department’s Antitrust Division, together with the Attorney General of Texas, announced today that it will require divestiture of six power plants in Delaware, Pennsylvania, and Texas to resolve antitrust concerns arising from Constellation Energy Corporation, Inc.’s $26.6 billion acquisition of Calpine Corporation.
The Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the Division’s competitive concerns.
“The price of electricity is a pocketbook issue to American consumers working hard to afford their monthly utility bills. When it comes to their electricity bills, Americans deserve the benefit of robust competition among electricity generators,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division. “This settlement includes a six-plant divestiture to an acquisition that risked harming tens of millions of electricity consumers in the mid-Atlantic and Texas. I am appreciative of the partnership with our co-plaintiff, the State of Texas, to secure relief for consumers.”
As detailed in the complaint, the acquisition would create the largest wholesale power generator in the United States and increase the likelihood that the combined firm would profitably withhold electricity from one or more of its plants. The result would be higher electricity prices for customers in Texas, where the electricity grid is operated by the Electric Reliability Council of Texas (ERCOT), and in New Jersey, Delaware, southeastern Pennsylvania, and the eastern shores of Maryland and Virginia, where the electricity grid is operated by PJM Interconnection LLC (PJM).
The divestitures resolve the Division’s concerns that the acquisition would harm competition and lead to higher prices on consumers reliant on the ERCOT and PJM electricity grids. Specifically, the settlement requires the companies to divest their ownership interests in four electricity plants serving PJM and two electricity plants serving ERCOT. The divested plants are:
- Bethlehem Energy Center, a natural gas combined cycle plant, located in Bethlehem, Pennsylvania;
- York Energy Center (York 1 and York 2), a dual-fuel combined cycle plant, located southeast of the city of York, Pennsylvania;
- Hay Road Energy Center, a dual-fuel combined cycle plant, located in Wilmington, Delaware;
- Edge Moor Energy Center, a simple cycle natural gas plant, located in Wilmington, Delaware;
- Jack A. Fusco Energy Center, a natural gas combined cycle plant, located southwest of Houston, Texas; and
- Gregory Power Plant, a natural gas combined cycle plant, located northeast of Corpus Christi, Texas.
This is the first settlement consent decree that the Division has filed in an electricity merger in 14 years.
Constellation is a publicly traded Pennsylvania corporation headquartered in Baltimore, Maryland. It is one of the largest owners of electric generation assets in the United States. In 2024, the company earned $23.6 billion in revenue. It currently controls more than 20,000 megawatts of generating capacity in PJM and approximately 5,000 megawatts in ERCOT.
Calpine is a privately held Delaware corporation headquartered in Houston, Texas. Calpine is the largest generator of electricity from natural gas and geothermal in the United States. The company controls approximately 9,000 megawatts of generating capacity in ERCOT and 5,000 megawatts in PJM.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person should submit written comments concerning the proposed settlement within 60 days following the publication to Patricia Corcoran, Acting Chief, Transportation, Energy & Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8000, Washington, DC 20530. At the conclusion of the public comment period, the court may enter the final judgment upon finding it is in the public interest.
Constellation Calpine Complaint.pdf Constellation Calpine PFJ.pdfIllinois Men Face Additional Charges for Health Care Fraud and Money Laundering ConspiracyRead the Press Release
Two Illinois brothers were indicted yesterday in a superseding indictment on charges related to a scheme to defraud Medicare, Medicaid and private health care insurers and for participating in a money laundering conspiracy with the fraud proceeds.
“These defendants are charged with a brazen scheme to steal nearly $300 million from vital health care programs by taking advantage of the fear and panic of the COVID-19 pandemic,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “These charges make clear that the Criminal Division will never rest in its pursuit of those who try to exploit the most vulnerable members of our society, the elderly and the disabled, for their own personal gain."
“The defendants chose to enrich themselves and deprive the most vulnerable members of society from much needed assistance designed by the U.S. Government to provide critical relief efforts,” said Special Agent in Charge Douglas S. DePodesta of the FBI Chicago Field Office. “Health care fraud affects everyone — it costs taxpayers millions of dollars, contributes to rising health insurance premiums, and depletes resources from our vital health care system. The FBI is committed to working with all our law enforcement and prosecutorial partners to ensure that anyone who dares to exploit government programs intended to assist the American people will be held fully accountable under federal law.”
“Allegedly billing almost $300 million dollars to taxpayer-funded and private health care programs for services that were never provided is a staggering abuse of resources,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General. “These charges demonstrate HHS-OIG’s unwavering resolve to hold accountable those who exploit federal health care programs and betray the public trust.”
According to court documents, Minhaj Feroz Muhammad, 37, and Sufyan Feroze, 35, both of Naperville, owned and controlled, sometimes through straw owners, four clinical laboratories located in Illinois and California. Their scheme allegedly sought to defraud Medicare, Medicaid and private insurers by submitting fraudulent claims of over $293 million for COVID-19 laboratory testing services that were never provided, for which insurers paid at least approximately $65 million in reimbursements.
Additionally, as alleged in the superseding indictment, the defendants participated in a money laundering conspiracy by transferring fraud proceeds between laboratories and other businesses controlled by the defendants, ultimately using the funds to purchase real estate, including luxury developments overseas, gold bars, luxury watches and luxury vehicles.
Each defendant has been charged with six counts of health care fraud and one count of money laundering conspiracy. Feroze has also been charged with one count of engaging in a monetary transaction in criminally derived property in excess of $10,000.
If convicted, the defendants face a maximum penalty of 10 years in prison on each health care fraud charge and 20 years in prison on the conspiracy to commit money laundering charge. If convicted, Feroze faces an additional 10 years in prison on the engaging in a monetary transaction in criminally derived property charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI and HHS-OIG are investigating the case.
Trial Attorney Kelly M. Warner of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Omaha Man Sentenced for Conspiracy to Distribute FentanylRead the Press Release
United States Attorney Lesley A. Woods announced that Lionel Cawthon, 45, of Omaha, Nebraska, was sentenced on December 3, 2025, in federal court in Omaha for conspiracy to possess and possession with intent to distribute fentanyl. United States District Judge Brian C. Buescher sentenced Cawthon to 262 months’ imprisonment. There is no parole in the federal system. After Cawthon is released from prison, he will begin a 10-year term of supervised release.
During 2023 and 2024, the Federal Bureau of Investigation and the Bellevue Police Department investigated Cawthon for distributing fentanyl in the Omaha area. FBI utilized a confidential informant to purchase 600 M30 fentanyl pills from Cawthon. On February 16, 2024, FBI and Bellevue Police Department executed search warrants at two residences in Omaha. Law enforcement seized approximately 7,000 M30 fentanyl pills.
Cawthon has two prior felony drug convictions, making him a career offender under the United States Sentencing Guidelines.
Co-defendants Gregory Stevenson and Shawn Reese are both pending trial in February 2026.
This case was investigated by the Federal Bureau of Investigation and Bellevue Police Department.
Goochland man sentenced to five years in prison for providing cocaine and fentanyl that caused friend’s fatal overdoseRead the Press Release
RICHMOND, Va. – A Goochland man was sentenced today to five years in prison for distribution of cocaine and fentanyl.
According to court documents, on Aug. 20, 2021, in Richmond, Don Carnell Batchelor Jr.’s friend, identified in court records as “SN,” asked Batchelor to acquire cocaine and fentanyl for him. Batchelor obtained and provided the drugs to SN, who took the substances with him to visit family. SN used a portion of the cocaine and fentanyl Batchelor had provided, which caused SN’s fatal overdose. SN was found deceased in his parent’s home the following morning. The medical examiner determined that the cause of death was cocaine and fentanyl toxicity.
Lindsey Halligan, U.S. Attorney for the Eastern District of Virginia; Christopher C. Goumenis, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division and Lee S. Bailey, New Kent County Sheriff, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
The Virginia State Police assisted in the investigation of this case.
Assistant U.S. Attorney Olivia L. Norman prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-134.
19 Arrested in Four Countries Related to Visa Fraud, Racketeering, Money Laundering and Related ChargesRead the Press Release
19 individuals were arrested today in the United States, Colombia, Ecuador, and El Salvador in connection with racketeering, money laundering and visa fraud charges. Five of the arrestees are charged in a U.S. indictment for participation in a four-year transnational visa fraud, racketeering, and money-laundering scheme that defrauded thousands of Central and South American nationals seeking to work lawfully in the United States. Victims were defrauded of over $2.5M dollars.
The U.S. defendants face charges of racketeering conspiracy, money laundering conspiracy, and conspiracy to defraud the United States by impersonating U.S. officials and misusing and counterfeiting the seals and insignia of U.S. departments and agencies. One of the U.S. charged defendants was arrested in Sacramento, California, and one was arrested in the Dallas area. The remaining three U.S. defendants were arrested in Medellin, Colombia. The defendant arrested in Sacramento, California, made his initial appearance in court today; the other will see a judge tomorrow. The three defendants arrested in Colombia will be the subject of extradition proceedings. One indicted defendant in Colombia remains at large.
Other individuals arrested in this international law enforcement operation were arrested in Ecuador and El Salvador and will likely face separate charges in those countries.
“These defendants are charged with masquerading as United States officials in order to fraudulently enrich themselves at the expense of victims seeking to lawfully travel to the United States,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendants are alleged to have deployed their scheme to steal tens of thousands of dollars from hundreds of victims. The Criminal Division will aggressively pursue schemes that undermine immigration laws and erode confidence in government processes.”
“The Diplomatic Security Service (DSS) is committed to protecting the integrity of U.S. travel documents and investigating those who seek to exploit the visa and passport process,” said Chief Joseph Jung of the DSS Overseas Criminal Investigations Division. “This operation demonstrates the strength of our international law enforcement partnerships and our resolve to hold fraudsters accountable. DSS is proud to have supported this coordinated effort, which has resulted in arrests across four countries and the disruption of a transnational visa and financial fraud scheme affecting victims throughout Latin and South America.”
“HSI and our federal partners have successfully dismantled a sophisticated international multi-million-dollar immigration fraud scheme that not only spanned multiple countries, but also preyed on thousands of migrants seeking to enter the United States the right way,” said Assistant Director for International Operations Ricardo Mayoral of Immigrations and Customs Enforcement Homeland Security Investigations (HSI). “Our mission is to restore integrity to our nation’s immigration system after years of abuse and neglect. HSI and our federal partners will not rest until this scourge is finally put to rest.”
“U.S. Agency for International Development Office of Investigations Office of Inspector General (USAID/OIG) works in close coordination with our law enforcement counterparts to aggressively disrupt criminal activity across the globe to ensure significant consequences for defrauding the United States.” said Acting Special Agent-in-Charge Zachary Baumgart for the USAID/OIG.
Victims were deceived into believing that they were participating in a legitimate visa-application process though Facebook pages and other websites fraudulently advertising assistance in obtaining supposedly legal work-visas for the United States. Instead, victims were guided through an elaborate, fake process during which co-conspirators called “asesores” (consultants) pretended to help with the application process and made false representations during calls and electronic communications about jobs that were available or offered. These aseores worked out of illegal call centers in Colombia.
As part of the fraud, defendants and other co-conspirators impersonated U.S. government officials in video calls and induced victims to make international wire transfers supposedly to pay required U.S. fees to intermediaries in at least 16 states. Victims were shown counterfeit documents, such as fake visa approvals and employment authorizations that included counterfeit replicas of U.S. department and agency seals. The money bilked from victims was laundered as money made its way from the intermediaries in the U.S. to enterprise leaders, it typically changed hands at least twice; often more frequently.
Believing that they had actual appointments at U.S. Embassies in their home countries to obtain a valid U.S. visa, unwittingly victims would report to U.S. embassies in those countries for appointments that did not exist. In fact, no legitimate visas or services of any kind were rendered to victims. Some victims traveled long distances to non-existent appointments at U.S. Embassies.
Law enforcement has interviewed approximately 700 victims to date and there is evidence that over 7000 additional victims were drawn into the fraud scheme. Reported victim losses range from approximately $50 to $90,000 per person. Between approximately 2021 and the present, enterprise members have been responsible for approximately $2.5 million sent from victims in up to 15 countries to the United States in relation to this scheme.
U.S. Defendants
The six defendants indicted on Oct. 1, 2025, in the Southern District of Florida are as follows:
Edwin Alberto Correa-David supervised approximately eight call center offices in Medellin, including deciding which fraudulent websites to use, how much to charge victims, and which U.S. fund-recipients to use as intermediaries.
Andres Giraldo-Ospina, another leader in Medellin, was responsible for the creation of multiple fraudulent websites and provided technical assistance to call centers when websites did not work properly. Over time, he also took charge of an additional group of call centers beyond those overseen by Correa.
Danna Pamela Porras-Marin managed one Medellin call center and provided broad-ranging administrative support for other call centers. She also obtained and designed websites used in the fraud.
Esteban Robledo-Correa started as a U.S. intermediary and recruited and managed other intermediaries to receive funds from victims and then moved the funds onward. After returning to Colombia, he helped manage call centers in Medellin. Robledo-Correa remains a fugitive.
Julian Giraldo-Ospina, who was arrested in Sacramento, California, oversaw a group of intermediaries laundering money in the Sacramento, California area and partnered with his brother, Andres Giraldo-Ospina, in leading a Medellin-based center.
Viviana Urrego-Rojas, who was arrested in Denton, Texas, coordinated intermediaries to receive money from victims and then relayed the funds back to Colombia.
Additional Arrests in Colombia, El Salvador and Ecuador
The U.S. and Colombian arrests were part of a coordinated law enforcement campaign in four countries. In Colombia, the Colombian National Police’s Directorate of Criminal Investigations–Transnational Criminal Investigative Unit and the Colombian Attorney General’s Office conducted the arrests as well as searches of three call centers.
In El Salvador, an investigation by the National Police and Office of the Attorney General, resulted in the arrest of six people in this and other visa-fraud schemes.
The Ecuadorian National Police’s Anti-Human Trafficking and Smuggling Unit (UNAT), in coordination with the Ecuadorian Prosecutor General’s Office for Guayas Province conducted coordinated operations in five cities throughout the country, resulting in the arrest of eight people and raids of two locations. These individuals were responsible for the Ecuador-based operations of the racketeering and money-laundering scheme.
* * *
The indictment is the result of a law enforcement investigation conducted with multiple agencies, including USAID/OIG; DSS, United States Department of Homeland Security (DHS), including HSI, Citizenship and Immigration Service, Enforcement and Removal Operations, and Customs and Border Protection.
Significant assistance was provided by the Colombian National Police’s Directorate of Criminal Investigations – Transnational Criminal Investigative Unit, the Colombian Attorney General’s Office, the Salvadoran National Police, the Salvadoran Attorney’s General Office, the Ecuadorian National Police, and the Ecuadorian Prosecutor General’s Office for Guayas Province.
Trial Attorneys Amy L. Schwartz, Grace Bowen, and Kelly Pearson, of the Justice Department’s Violent Crime and Racketeering Section, are prosecuting the case. Substantial assistance was provided by the Justice Department’s Office of International Affairs and Judicial Attaché in Bogotá, Colombia and the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of California, and the Eastern District of Texas.
Anyone who believes he or she has been a victim of this fraud and has not already been in contact with law enforcement, can email [email protected] to submit a report.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law
Justice Department Sues Six Additional States for Failure to Provide Voter Registration RollsRead the Press Release
WASHINGTON – Today, the Justice Department’s Civil Rights Division announced it has filed federal lawsuits against six states — Delaware, Maryland, New Mexico, Rhode Island, Vermont, and Washington — for failure to produce their statewide voter registration lists upon request.
"Accurate voter rolls are the cornerstone of fair and free elections, and too many states have fallen into a pattern of noncompliance with basic voter roll maintenance," said Attorney General Pamela Bondi. "The Department of Justice will continue filing proactive election integrity litigation until states comply with basic election safeguards."
"Our federal elections laws ensure every American citizen may vote freely and fairly,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. "States that continue to defy federal voting laws interfere with our mission of ensuring that Americans have accurate voter lists as they go to the polls, that every vote counts equally, and that all voters have confidence in election results. At this Department of Justice, we will not stand for this open defiance of federal civil rights laws."
According to the lawsuits, the Attorney General is uniquely charged by Congress with the enforcement of the National Voter Registration Act (NVRA) and the Help America Vote Act (HAVA), which were designed by Congress to ensure that states have proper and effective voter registration and voter list maintenance programs. The Attorney General also has the Civil Rights Act of 1960 (CRA) at her disposal to demand the production, inspection, and analysis of the statewide voter registration lists.
The United States Announces Agreement with Northwestern UniversityRead the Press Release
Today, the U.S. Department of Justice, the U.S. Department of Education, and the U.S. Department of Health and Human Services reached an agreement with Northwestern University (Northwestern) to safeguard its students, employees, and faculty from unlawful discrimination based on race, religion, sex, or national origin, including race-based admissions practices and a hostile educational environment directed toward Jewish students.
As part of the agreement, Northwestern University will pay $75 million to the United States through 2028. Northwestern agrees to adhere to federal anti-discrimination laws, ensuring that the university does not preference individuals based on race, color, or national origin in admissions, scholarships, hiring, or promotion. Northwestern shall maintain clear policies and procedures relating to demonstrations, protests, displays, and other expressive activities, as well as implement mandatory antisemitism training for all students, faculty, and staff.
Northwestern’s President and Chair of the Board of Trustees shall each certify under penalty of perjury each quarter the university’s full compliance with the agreement. The United States shall close pending investigations and treat Northwestern as eligible for future grants, contracts, and awards.
“Today’s settlement marks another victory in the Trump Administration’s fight to ensure that American educational institutions protect Jewish students and put merit first,” said Attorney General Pamela Bondi. “Institutions that accept federal funds are obligated to follow civil rights law — we are grateful to Northwestern for negotiating this historic deal.”
“Universities that receive federal funding have a responsibility to comply with the law, including protecting against racial discrimination and antisemitism,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We appreciate the significant improvements Northwestern has made and are gratified to reach an agreement that safeguards of rights of all the university’s applicants, students, and employees.”
“The Northwestern agreement is a huge win for current and future Northwestern students, alumni, faculty, and for the future of American higher education,” U.S. Secretary of Education Linda McMahon. “The deal cements policy changes that ‘will protect students and other members of the campus from harassment and discrimination,’ and it recommits the school to merit-based hiring and admissions. The reforms reflect bold leadership at Northwestern, and they are a roadmap for institutional leaders around the country that will help rebuild public trust in our colleges and universities. Congrats to Assistant Attorney General Harmeet Dhillon and all those involved in negotiating this landmark deal!”
Leader of Colombian Money Laundering Organization Sentenced to Five Years in Prison for Laundering Drug ProceedsRead the Press Release
A Colombian national was sentenced today to 60 months in prison for conspiring to launder drug proceeds. He was also ordered to forfeit $1.2 million.
According to court documents, Michael Nunez Daza, also known as “Luky,” 49, led a transnational money laundering organization operating in Colombia, Mexico, and the United States. Nunez Daza orchestrated bulk cash pickups involving drug trafficking proceeds from Mexico across multiple U.S. cities. After the bulk cash was picked up, Nunez Daza arranged for the illicit funds to be deposited into U.S. bank accounts registered in the names of other individuals and companies before they were further transferred to Colombia. Within days of the bulk cash being delivered and deposited in the United States, corresponding bulk cash in the form of Colombian pesos was delivered in Cali, Colombia, directly to Nunez Daza and his couriers. In just eight months in 2017 and 2018, Nunez Daza laundered at least $1.2 million for his Mexico-based co-conspirators. Nunez Daza was previously convicted of conspiracy to distribute cocaine and was deported to his native country Colombia in 2004.
Nunez Daza was indicted on the money laundering charges in January 2023 and extradited to the United States in April 2025. Nunez Daza pleaded guilty to one count of money laundering conspiracy on Aug. 14, 2025.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division and Special Agent in Charge Stefanie Roddy of the FBI Newark Field Office made the announcement.
The FBI investigated the case.
The Criminal Division’s Money Laundering, Narcotics and Forfeiture Section prosecuted the case. The U.S. Attorney’s Office for the Southern District of Florida provided significant assistance. The Justice Department’s Office of International Affairs and Judicial Attaché Office in Bogotá, Colombia, worked with law enforcement partners in Colombia to secure the arrest and extradition of Nunez Daza.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Homeland Security Task Force and Project Safe Neighborhoods.
Justice Department’s Environment and Natural Resources Division Highlights to D.C. Appeals Court the Illegality of 2024 EPA RuleRead the Press Release
Earlier this week, the Justice Department’s Environment and Natural Resources Division (ENRD) urged the U.S. Court of Appeals for the D.C. Circuit to void the Environmental Protection Agency (EPA)’s 2024 air quality standard for particulate matter, because EPA recognizes that it took an unlawful regulatory shortcut in imposing the rule.
The Clean Air Act requires the EPA to conduct a thorough review of the underlying science before revising an air quality standard. Under the previous administration, the EPA decided it could not be bothered to do the science, so it took an illegal regulatory shortcut to adopt a stifling and costly national air quality standard for particulate matter through a truncated reconsideration process.
Under President Donald J. Trump’s Administration, the EPA has renewed its commitment to following the law. ENRD’s filing this week concedes the illegality of the 2024 rule. During the Biden Administration, EPA violated the Clean Air Act by issuing its rule without a thorough review of the science and without considering the costs of its shortcut. Discarding the rule would bring EPA back into compliance with the Clean Air Act and protect Americans from burdensome environmental standards that may ultimately do more harm than good.
188-Month Sentence in Kidnapping, Carjacking and Gunpoint AssaultsRead the Press Release
WASHINGTON – Marquette Jackson, 25, of the District of Columbia, was sentenced November 24 in U.S. District Court to 188 months in prison in connection with his role in the June 2023 kidnapping, carjacking, and gunpoint assaults of two victims in Northeast Washington D.C., announced U.S. Attorney Jeanine Ferris Pirro.
Jackson – aka “Glocky” and “Twin” – pleaded guilty on May 21 to kidnapping and aiding and abetting. In addition to the 188 month prison term, Judge Colleen Kollar-Kotelly ordered Jackson to serve five years of supervised release.
Joining in the announcement were FBI Assistant Director in Charge Darren B. Cox of the Washington Field Office and Chief Pamela A. Smith of the Metropolitan Police Department
According to court documents, on June 8, 2023, Jackson and others attended a birthday celebration at a Northwest nightclub then, in the early morning hours, returned to 4400 block of F Street SE.
The victims arrived on the block about 3 a.m. and entered a Mercedes SUV that belonged to one of them. Jackson and others attacked the two victims, removed their clothing, and confined them to prevent them from fleeing.
Jackson and others drove to a nearby area where at gunpoint they threatened and assaulted the victims at gunpoint. Jackson and others then drove one of the victims into Maryland. About 4:40 a.m., Jackson and his group arrived at an apartment complex in Suitland, Maryland, where one of the victims had a residence. Jackson and others burgled the victim’s apartment. An hour later, Jackson and the group arrived at another of the victim’s apartments in Waldorf. Jackson and the group staged an armed robbery at the residence and the occupant of the apartment as other members of the group held the victim in his Mercedes.
About 5:45 a.m., surveillance cameras recorded three individuals engaging in a shootout with the victim. The shootout left the victim and another individual fatally wounded. About 6:45 a.m., first responders found the victim’s Mercedes engulfed in flames in Capitol Heights, Maryland.
On Jan. 31, 2024, law enforcement arrested Jackson at his apartment on the 4900 block of Nash Street NE, and recovered a Glock 22C .40 caliber firearm equipped with a machine gun conversion device.
This case was investigated by the FBI’s Washington Field Office’s Violent Crimes Task Force and Safe Streets Task Force, the Charles County Sheriff’s Office, the Metropolitan Police Department and the U.S. Attorney’s Office for the District of Maryland.
The matter was prosecuted by Assistant U.S. Attorneys John D. Crabb Jr. and Anthony Scarpelli of the Violence Crimes and Narcotics Trafficking section of the U.S. Attorney’s Office for the District of Columbia.
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Sky Lease I Inc. Agrees to Pay $1,030,000 to Settle False Claims Act Allegations for Falsely Reporting Delivery Times of U.S. Mail Carried InternationallyRead the Press Release
The Justice Department announced today that Sky Lease I Inc. (Sky Lease) has paid $1,030,000 to resolve False Claims Act allegations that it falsely reported information about the transfer of U.S. mail to foreign posts or other intended recipients under contracts with the U.S. Postal Service (USPS). Sky Lease is an air cargo delivery company with headquarters in Miami, Florida.
“The Department of Justice is committed to ensuring that government contractors provide the services they have contracted to provide,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “When contractors knowingly fail to provide services for which they have been paid, the Department of Justice will pursue appropriate remedies to redress the violations and deter future ones.”
“The USPS contracts with commercial airlines for the safeguarding and timely delivery of U.S. mail to foreign posts,” said Executive Special Agent in Charge Ken Cleevely of the USPS, Office of Inspector General (OIG). “The OIG supports the Postal Service by aggressively investigating allegations of contractual non-compliance within the mail delivery process, including the falsification of delivery information. Our special agents worked hand-in-hand with the Department of Justice to help ensure a reasonable resolution and we applaud the exceptional work done by the investigative and legal teams.”
USPS contracted with Sky Lease to take possession of receptacles of U.S. mail at locations in the United States or at various Department of Defense and State Department locations abroad and then deliver that mail to numerous international and domestic destinations. To obtain payment under the contracts, Sky Lease was required to submit electronic scans of the mail receptacles to USPS reporting the time the mail was delivered at the identified destinations. The settlement resolves allegations that scans submitted by Sky Lease falsely reported the time that it transferred possession of the mail.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, with substantial assistance from the USPS Office of the Inspector General and the USPS Office of General Counsel.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Lowe’s Home Centers to Pay $12.5M Penalty for Lead Paint Violations During Home RenovationsRead the Press Release
The Justice Department and the Environmental Protection Agency (EPA) today announced a proposed nationwide settlement with Lowe’s Home Centers LLC — a subsidiary of Lowe’s Companies Inc. — to resolve alleged violations of EPA’s Lead Renovation, Repair and Painting rule. The violations stem from renovation work performed by Lowe’s contractors at hundreds of homes across the country, primarily between 2019 and 2021. As part of the settlement, Lowe’s will pay a $12.5 million penalty and improve its compliance program for renovations in homes that may contain lead-based paint.
“Careless handling of lead paint endangers the health of children and other Americans. The stiff penalty Lowe’s will pay reflects the importance of using certified firms and contractors in older home renovations,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Contractors hired for work that may disturb paint in homes built prior to 1978, when lead-based paint was in widespread use, must be certified. These contractors have the training to recognize and prevent the hazards that can be created when lead paint is disturbed.”
“Noncompliance with EPA regulations aimed at reducing or preventing health risks from lead paint exposure during renovations, repairs, and painting can endanger families, especially young children and infants,” said Acting Assistant Administrator Craig Pritzlaff of the EPA’s Office of Enforcement and Compliance Assurance (OECA). “Through this enforcement action, Lowe’s will help protect their customers from the harmful effects of lead by ensuring that renovation work in homes built before 1978 is conducted by certified contractors using lead-safe practices.”
The settlement agreement requires Lowe’s to implement a comprehensive, corporate-wide program to ensure that the firms and installers it hires to perform work are qualified to use lead-safe work practices to avoid spreading lead dust and paint chips during home renovations. EPA found that Lowe’s failed to successfully implement the compliance terms of a 2014 settlement with the EPA, resulting in the alleged violations of the RRP rule.
EPA discovered some of the alleged violations after investigating problems disclosed by Lowe’s in periodic compliance reports required under the terms of a 2014 consent decree. The agency found additional alleged violations after responding to a tip from a member of the public concerning door replacements and other renovation work performed by a firm hired by Lowe’s to do work in southern and central California.
Residential lead-based paint use was banned in 1978 but remains in many older homes and apartments across the country. Lead dust hazards can occur when lead paint deteriorates or is disrupted during home renovation and remodeling activities. Lead exposure can cause a range of health problems, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. A blood lead test is the only way to determine if a child has a high lead level. Parents who think their child has been in contact with lead dust should contact their child's health care provider.
The consent decree was lodged in U.S. District Court for the Central District of California and is subject to a 30-day public comment period and final court approval. The lodged consent decree and information on submitting public comment is available at www.justice.gov/enrd/consent-decrees.
More information is available on the 2025 Lowe’s RRP Rule Settlement Summary page: www.epa.gov/enforcement/lowes-home-centers-llc-rrp-2025-settlement-summary.
EPA investigated the case.
Attorneys with ENRD’s Environmental Enforcement Section are handling this matter.
Justice Department Opens Investigation into SeaWorld Orlando, Busch Gardens Tampa Bay, and Aquatica Orlando for Disability DiscriminationRead the Press Release
Today, the Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida announced that they have launched an investigation into United Parks & Resorts Inc. to determine whether it violates Title III of the Americans with Disabilities Act (ADA) by discriminating against guests with disabilities. United Parks & Resorts is a global theme park and entertainment company that owns or licenses seven brands including SeaWorld Orlando, Busch Gardens Tampa Bay, and Aquatica Orlando.
The ADA prohibits discrimination based on disability by public accommodations, including theme parks.
The Department opened this investigation after receiving complaints from members of the public with disabilities who allege that three of its parks violate the ADA by banning guest use of certain walkers, known as “rollator walkers.” Complainants allege that they cannot access the parks without their rollators and the only alternative the parks offer would require them to use mobility aids that are inappropriate for their individual disabilities and to incur additional charges, among other allegations.
“The ADA protects every American from disability-based discrimination in places of public accommodation, including theme parks,” said Assistant Attorney General Harmeet K. Dhillon for the Justice Department’s Civil Rights Division. “We are committed to upholding our federal civil rights laws so that no guest is denied access or charged more because of a disability.”
“Every year, millions of people from around the world travel to Florida to visit our theme parks,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “No one should ever be denied equal access to public accommodations based on disability. Our office remains steadfast in our commitment to ensuring that all individuals with disabilities are guaranteed their rights under the ADA.”
Trial Attorney David K. Gardner from the Civil Rights Division’s Disability Rights Section and Assistant U.S. Attorney Alexandra N. Karahalios from the U.S. Attorney’s Office for the Middle District of Florida are handling this case.
If you believe you have been a victim of disability discrimination by United Parks & Resorts Inc., including parks such as SeaWorld Orlando, Busch Gardens Tampa Bay, and Aquatica Orlando, please file a complaint with the Civil Rights Division online at www.civilrights.justice.gov, or by calling the Department’s toll-free ADA Information Line at 1-800-514-0301 (1-833-610-1264 (TTY)). For more information on the ADA and the Civil Rights Division, please visit www.ada.gov or www.justice.gov/crt.
Michigan Pharmacist Sentenced to 46 Months in Prison for $4M Health Care Fraud SchemeRead the Press Release
A former Michigan pharmacist was sentenced today to 46 months in prison for his role in a health care fraud scheme at a pharmacy he operated. He was also ordered to pay $4 million in restitution and to forfeit four real estate properties and $726,364.96.
According to court documents, from approximately 2011 to 2017, Nabil Fakih, 50, of Wayne County, billed Medicare for prescription medications that he did not dispense at the pharmacy he owned and operated in Dearborn Heights, Michigan. As part of the scheme, Fakih submitted fraudulent claims for reimbursement to Medicare for high-reimbursing prescription medications, such as blood thinners and lung disease inhalers that his pharmacy did not even have the inventory to dispense. He concealed his fraud by manipulating the inventory purchases at his pharmacy, as well as the receipt and transfer of the proceeds from the fraud, diverting the proceeds for his own personal use and benefit. As a result of his crime, Fakih caused a total of approximately $4 million of loss to Medicare.
In August 2024, Fakih pleaded guilty to one count of health care fraud before a federal judge in the Eastern District of Michigan.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Office; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
FBI and HHS-OIG investigated the case.
Trial Attorney Andres Q. Almendarez of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Surge to Indian Country to Investigate Unresolved Violent Crimes Yields ResultsRead the Press Release
The Justice Department today announced results from its six-month surge of FBI assets across the country to address violent crime in Indian Country, including crimes relating to missing or murdered Indigenous persons.
The FBI sent 64 personnel, rotating in 30–90-day temporary duty assignments over a six-month period to support field offices in Albuquerque; Denver; Detroit; Jackson, Miss.; Minneapolis; Oklahoma City; Phoenix; Portland, Oreg.; Seattle; and Salt Lake City. The FBI worked in partnership with the Bureau of Indian Affairs and Tribal law enforcement agencies across jurisdictions. This operation was the longest and most intense national deployment of FBI resources to address Indian Country crime to date.
“These dedicated efforts by FBI agents, together with the BIA and our tribal law enforcement partners, have solved crimes, protected victims of violence, and brought much needed safety and security to communities in Indian country,” said Attorney General Pamela Bondi. “We will never forget the crime victims whose cases remain unsolved, and we will continue our pursuit until justice is served.”
“One of the biggest problems tribal communities face is the vast amount of land to account for, requiring significant resources to crush violent crime,” said FBI Director Kash Patel. “As FBI Director, I’m committed to surging personnel to these areas and working hand-in-hand with Tribal partners. Operation Not Forgotten is a major step forward in giving these communities the justice that they deserve.”
FBI personnel were assisted by 36 personnel from the Bureau of Indian Affairs Missing and Murdered Unit (BIA MMU). Combined, those personnel provided investigative and intelligence support by assisting in over 330 investigations. BIA MMU also provided technical support and expertise through ground-penetrating radar, underwater cameras, and sonar searches. Operation Not Forgotten contributed to the success of the FBI’s Indian Country program. In FY25 alone, the FBI’s Indian Country initiatives accomplished the following: 1260 individuals charged, 1123 arrests, 304 weapons recovered, and 458 child victims identified or located.
Some of those defendants charged by U.S. Attorney’s Offices include the following:
Three people were indicted on federal charges after a previously unsolved murder in New Mexico in 2020. Austin Begay, 31, was charged with first-degree murder in the shooting death of Zachariah Shorty, an enrolled member of the Navajo Nation. Two more suspects, Jaymes Fage, 38, and Joshua Watkins, 40, were also charged with crimes related to concealing the murder. (FBI Albuquerque/USAO District of New Mexico)
Renaldo Descheny, 43, is charged with assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence for his allegedly strangling and striking Jane Doe in the face with a firearm. He will remain in custody pending trial. (FBI Albuquerque/USAO District of New Mexico)
Armondo Paul, 25, was arrested after officers from the Navajo Nation Police Department responded to a stabbing at a Shiprock residence. Upon arrival, officers found the victim deceased with a neck wound believed to be from a bladed weapon. Paul is charged with second-degree murder and will remain in custody pending trial. (FBI Albuquerque/USAO District of New Mexico)
Keanu Lee, 33, was arrested after being charged with three counts of aggravated sexual abuse, one count of sexual abuse, one count of kidnapping, and one count of assault resulting in serious bodily injury. (FBI-Albuquerque/District of New Mexico)
Additionally, the following are some examples of defendants convicted in relation to crimes investigated during this operation:
Marvin Albert Wauneka, 40, was sentenced to 40 months in prison for causing a high-speed drunk driving crash on the Navajo Nation that killed two passengers and seriously injured another. (FBI Albuquerque/USAO District of New Mexico)
Antoine Scott, 28, was sentenced to 28 months in federal prison and 3 years of supervised release. In June 2023, Scott approached a truck on the Warm Springs reservation and began punching the passenger through the window. The passenger suffered a head injury as well as a hand injury requiring stitches. Scott pleaded guilty to assault resulting in serious bodily injury and prohibited possession of a firearm. (FBI Portland/USAO District of Oregon)
Indian Country faces persistent levels of violent crime and victimization. At the beginning of Fiscal Year 2025, FBI’s Indian Country program had approximately 4,300 open investigations, including over 900 death investigations, 1,000 child abuse investigations, and more than 500 domestic violence and adult sexual abuse investigations.
Operation Not Forgotten renews efforts begun during President Trump’s first term under E.O. 13898, Establishing the Task Force on Missing and Murdered American Indians and Alaska Natives. This is the third deployment under Operation Not Forgotten, which has provided investigative support to over 760 cases in the past three years. Combined, these operations resulted in 249 arrests, 235 subjects charged, 109 subjects convicted, and services were provided to nearly 2,000 victims and victim family members.
Operation Not Forgotten also expands upon the resources deployed in recent years to address cases of missing or murdered Indigenous people. The effort will be supported by the Department’s MMIP Regional Outreach Program, which places attorneys and community coordinators in U.S. Attorneys’ Offices across the United States to help prevent and respond to cases of missing or murdered Indigenous people.
Justice Department Requires RealPage to End the Sharing of Competitively Sensitive Information and Alignment of Pricing Among CompetitorsRead the Press Release
The Justice Department’s Antitrust Division filed a proposed settlement today to resolve the United States’ claims against RealPage Inc. as part of its ongoing enforcement against algorithmic coordination, information sharing, and other anticompetitive practices in rental housing markets across the country. The proposed settlement would help restore free market competition in rental markets for millions of American renters.
“Competing companies must make independent pricing decisions, and with the rise of algorithmic and artificial intelligence tools, we will remain at the forefront of vigorous antitrust enforcement,” said Assistant Attorney General Abigail Slater of the Justice Department’s Antitrust Division.
RealPage is a provider of commercial revenue management software and services for the conventional multifamily rental housing industry. As alleged in Plaintiffs’ complaint, RealPage’s revenue management software has relied on nonpublic, competitively sensitive information shared by landlords to set rental prices. RealPage’s software has also included features designed to limit rental price decreases and otherwise align pricing among competitors. In addition, RealPage has hosted meetings attended by competing property management companies where competitively sensitive information was shared.
If approved by the court, the proposed consent judgment would require RealPage to:
- Cease having its software use competitors’ nonpublic, competitively sensitive information to determine rental prices in runtime operation;
- Cease using active lease data for purposes of training the models underlying the software, limiting model training to historic or backward-looking nonpublic data that has been aged for at least 12 months;
- Not use models that determine geographic effects narrower than at a state level, which is broader than the markets alleged in the complaint;
- Remove or redesign features that limited price decreases or aligned pricing between competing users of the software;
- Cease conducting market surveys to collect competitively sensitive information;
- Refrain from discussing market analyses or trends based on nonpublic data, or pricing strategies, in RealPage meetings relating to revenue management software;
- Accept a court-appointed monitor to ensure compliance with the terms of the consent judgment; and
- Cooperate in the United States’ lawsuit against property management companies that have used its software.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlement within 60 days following the publication to Danielle Hauck, Acting Chief, Technology and Digital Platforms Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 7050, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
RealPage is a provider of revenue management software and services headquartered in Richardson, Texas.
U.K. Citizen Indicted for $2.7M Telehealth SchemeRead the Press Release
A federal grand jury in the Middle District of Florida returned an indictment Wednesday charging a U.K. citizen for his role in a conspiracy to submit fraudulent claims for telehealth services associated with prescriptions for genetic testing and for causing the submission of false Medicare enrollment documents.
According to the indictment, Marek Rex Vernon Harrison, 61, a U.K. citizen living in Plant City, Florida, was the true beneficial owner and manager of purported telemedicine company CTD Network LLC (CTD). As alleged, CTD employed medical providers to authorize prescriptions for genetic tests, including tests designed to assess cancer risk. The providers conducted purported telehealth consultations in which they approved genetic-testing orders for Medicare beneficiaries referred by marketing companies or laboratories, even though the providers had no prior relationship with the beneficiaries and did not treat them or use the test results for treatment. At Harrison’s direction, CTD allegedly billed Medicare for these telehealth services, which were medically unnecessary and/or not provided as billed. In total, CTD submitted more than $2.7 million in false and fraudulent claims for telehealth services to Medicare, and Medicare paid over $600,000 on those claims.
As further alleged, part of the scheme involved falsifying Medicare enrollment documents submitted to the Centers for Medicare and Medicaid Services (CMS) to conceal Harrison’s role in CTD. CMS requires submitting entities to disclose all persons with a 5% or greater ownership interest or managing control, and to identify whether such individuals have been the subject of a final adverse legal action. At Harrison’s direction, CTD allegedly submitted Medicare enrollment forms falsely listing other individuals as owners and/or managers and concealing Harrison’s 2019 bank fraud conviction.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; U.S. Attorney Gregory W. Kehoe for the Middle District of Florida; Special Agent in Charge Matthew Fodor of the FBI’s Tampa Field Office; Special Agent in Charge Douglas DePodesta of the FBI’s Chicago Field Office; and Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
FBI and HHS-OIG are investigating the case.
Acting Assistant Chief Catherine Wagner and Trial Attorney Miriam Glaser Dauermann of the Justice Department’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Pharmacist and Brother Sentenced to Prison for $15M Health Care and Wire Fraud SchemeRead the Press Release
A former Michigan pharmacist and his brother were sentenced yesterday to eight years in prison and five years in prison, respectively, for their roles in a conspiracy to commit health care fraud and wire fraud.
According to court documents and evidence presented at trial, from approximately 2010 to 2019, Raad Kouza, 59, of Wayne County, a pharmacist, and his brother, Ramis Kouza, 46, of Oakland County, a pharmacy manager, billed Medicare, Medicaid and Blue Cross Blue Shield of Michigan for prescription medications that they did not dispense at pharmacies they owned or operated in Michigan. The defendants executed this fraud by targeting the billing of expensive medications, such as antipsychotics and inhalers, and by concealing inventory shortages at their pharmacies from multiple auditors. As a result of their criminal conduct, the defendants caused a total of over $15 million loss to Medicare, Medicaid and Blue Cross Blue Shield of Michigan.
In November 2024, Raad Kouza and Ramis Kouza were convicted of conspiracy to commit health care fraud and wire fraud by a federal jury in the Eastern District of Michigan. At sentencing, the Court ordered the brothers to pay approximately $15.5 million in restitution and the same amount in forfeiture.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Office; and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
FBI and HHS-OIG investigated the case.
Trial Attorneys Claire Sobczak Pacelli, Jeffrey A. Crapko and Andres Q. Almendarez of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of 9 strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Online Seller of Infant Formula Pleads Guilty to Smuggling and Violating FDA Prior Notice RequirementsRead the Press Release
Able Groupe Inc., a company that sold infant formula on the website LittleBundle.com, pleaded guilty today to two felony charges for smuggling European infant formula and importing it into the United States in violation of FDA’s Prior Notice Requirements.
According to court documents, Able Groupe, which also did business as Little Bundle and Huggable, Inc., sold European infant formula to consumers throughout the United States beginning in the spring of 2019. Several of the infant formulas Able Groupe sold were listed on FDA Import Alerts due to their failure to meet nutrient or labelling requirements for infant formula. In pleading guilty, Able Groupe admitted that it attempted to avoid detection and detention of its imported formula by failing to comply with FDA’s Prior Notice requirements for imported food and by using false commodity descriptions for the imported formula. Following an FDA inspection, the company ceased operations and recalled 76,000 units of formula in August 2021.
Able Groupe pleaded guilty to two felony counts: (1) importing food without providing Prior Notice to FDA with the intent to defraud or mislead in violation of the Federal Food, Drug, and Cosmetic Act (FDCA); and (2) passing and attempting to pass false and fraudulent documents through customs to defraud the United States. Under the FDCA, importers are required to provide Prior Notice to FDA when they import food into the United States. This is the first time a defendant has pleaded guilty to a felony violation for failing to provide such notices to FDA. The company’s plea agreement includes a proposed forfeiture of $304,640, and the matter will result in a total recovery by the Government of approximately $2.3 million. U.S. Magistrate Judge Toliver presided over the company’s guilty plea.
“FDA’s Prior Notice requirements help safeguard consumers as well as the nation’s food supply, and the Department is committed to enforcing the law and protecting our most vulnerable citizens,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Justice Department will continue to work with our agency partners to investigate and prosecute those who ignore this important legal obligation, attempt to defraud the government, and put the health and safety of infants at risk.”
“U.S. consumers rely on the FDA to ensure that the food products they purchase for their families are safe,” said Special Agent in Charge Christopher Walker, FDA Office of Criminal Investigations’ Kansas City Field Office. “The FDA will continue to work to bring to justice those who would defy its prior notice requirements, defraud the government, and attempt to deceive American consumers, particularly at the potential expense of infants’ health.”
The Food and Drug Administration’s Office of Criminal Investigations Special Agent Chad Medaris investigated the case.
The case is being prosecuted by Assistant Director Patrick Runkle of the Civil Division’s Enforcement and Affirmative Litigation Branch in partnership with the Northern District of Texas U.S. Attorney’s Office.
CNMI Men Sentenced to Federal Prison for Human Smuggling Operation between Saipan and GuamRead the Press Release
Saipan, M.P. – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the following individuals were sentenced this week by Chief Judge Ramona V. Manglona in the District Court for the Northern Mariana Islands for Conspiracy to Transport Illegal Aliens, in violation of 8 U.S.C. §1324(a)(1)(A)(v)(I):
Steven Villagomez Pangelinan – age 58, sentenced on November 20, 2025, to 30 months incarceration, two years of supervised release, 100 hours community service, and a $100 mandatory assessment fee;
William J. Cabrera, Jr. – age 44, sentenced on November 19, 2025, to 21 months imprisonment, three years of supervised release, 100 hours community service, and a $100 mandatory assessment fee;
Steven Chris Tomokane – age 55, Sentenced on November 19, 2025, to six months imprisonment, six months home detention, 3 years of supervised release, 100 hours community service, and a $100 mandatory assessment fee; and
Kenneth Hocog Pangelinan – age 39, sentenced on November 19, 2025, to 37 days incarceration, three years of supervised release, 100 hours of community service, and $100 assessment fee.
On June 22, 2023, Steven Pangelinan led two boats—a 25-foot Boston Whaler and an 18-foot McKee Craft—on a 120-mile, overnight trip from Saipan to Guam to smuggle 21 Chinese nationals, each of whom paid about $4,500 to avoid airport immigration checks by Customs and Border Protection. Guam authorities spotted the vessels dropping off the passengers and alerted CNMI law enforcement, which intercepted the boats and their four-person crew on their return.
Pangelinan led an organized human-smuggling operation responsible for numerous prior trips. He owned the boats, captained one during the voyage, and earned at least $80,000 from this single run. A third vessel, a 31-foot Fountain, was also linked to his smuggling activities, and all three boats will be forfeited to the federal government.
William Cabrera served as Pangelinan’s primary accomplice and captained the second boat in this and previous smuggling trips. Steven Tomokane and Kenneth Pangelinan were crew members on each boat. Tomokane, a mechanic, also stored Pangelinan’s vessels at his home. Steven Tomokane is a boat mechanic who allowed Steven Pangelinan to store vessels used for human smuggling at his residence. Steven Tomokane and Kenneth Pangelinan both served as crew members for Steven Pangelinan and William Cabrera on the June 22, 2023, voyage to transport 21 Chinese nationals to Guam.
“The defendants facilitated illegal migration and risked the lives of many for their own financial gain,” stated United States Attorney Anderson. “Their conduct was part of a concerning trend involving the abuse of the CNMI visa waiver program, among other provisions of our immigration laws. We will combat this activity at every opportunity. I applaud the work of Guam and CNMI law enforcement in support of federal immigration enforcement.”
“This sentencing underscores Homeland Security Investigations’ unwavering commitment to dismantling criminal networks that exploit vulnerable individuals for profit while undermining the integrity of our immigration system,” said Lucia Cabral-DeArmas, HSI Honolulu. “The defendants in this case endangered lives and violated the law in their attempt to smuggle individuals into Guam. HSI will continue to work tirelessly with our law enforcement partners to protect our borders and hold those who engage in human smuggling accountable.”
This case was investigated by Homeland Security Investigations with the assistance from the Guam Customs and Quarantine Agency, U.S. Fish and Wildlife, and the CNMI Department of Public Safety.
Assistant United States Attorney Albert S. Flores, Jr. prosecuted the case in the District of the Northern Mariana Islands.
The Justice Department Files Complaint Challenging California Laws Providing In-State Tuition, Scholarships, and Subsidized Loans for Illegal AliensRead the Press Release
WASHINGTON – Today, The United States is challenging California laws providing in-state tuition, scholarships, and subsidized loans for illegal aliens. These laws unconstitutionally discriminate against U.S. citizens who are not afforded the same reduced tuition rates, scholarships, or subsidies, create incentives for illegal immigration, and reward illegal immigrants with benefits that U.S. citizens are not eligible for, all in direct conflict with federal law.
“California is illegally discriminating against American students and families by offering exclusive tuition benefits for non-citizens,” said Attorney General Pamela Bondi. “This marks our third lawsuit against California in one week — we will continue bringing litigation against California until the state ceases its flagrant disregard for federal law.”
The Department of Justice’s complaint is filed in the Eastern District of California against the State of California, Governor Newsom, the State Attorney General, and the Regents of the University of California, the Board of Trustees of the California State University, and the Board of Governors of the California Community Colleges seeking to enjoin the State from enforcing the California laws and bring them into compliance with federal requirements.
In the complaint, the United States seeks to enjoin enforcement of California laws that requires colleges and universities to provide in-state tuition rates for all aliens who maintain California residency, regardless of whether those aliens are lawfully present in the United States. Additionally, the complaint seeks to enjoin California from enforcing its so-called “California Dream Act” which affords scholarships and subsidized loans to illegal aliens.
This lawsuit follows two executive orders signed by President Trump that seek to ensure illegal aliens are not obtaining taxpayer benefits or preferential treatment: “Ending Taxpayer Subsidization of Open Borders” and “Protecting American Communities From Criminal Aliens.” This lawsuit also follows similar tuition lawsuits in Texas, Kentucky, Illinois, Oklahoma, and Minnesota.
Physician Convicted of Conspiracy to Defraud MedicareRead the Press Release
NEW ORLEANS – Acting United States Attorney Michael M. Simpson announced that DR. MARION LEE (“LEE”), age 62, of Cordele, Georgia, pled guilty on October 8, 2025 to conspiracy to defraud the United States, in violation of 18 U.S.C. § 371, in connection with a scheme to bill Medicare approximately $24 million for medically unnecessary genetic testing, and to pay and receive kickbacks.
According to court documents, LEE, co-owner of and medical advisor to Luminus Diagnostics, a diagnostic laboratory located in Tifton, Georgia, conspired with others to procure orders for genetic testing in exchange for kickbacks, including orders acquired through purported telemedicine. To ensure the false and fraudulent claims would be paid, LEE and his co-conspirators designed the genetic testing order forms to be “dummy proof”—with prepopulated diagnosis codes and check-the-box panels—and frequently billed the tests through another laboratory in the Eastern District of Louisiana where co-conspirators thought the claims were more likely to be approved. The co-conspirators concealed these claims via a sham contract, among other deceptive means. LEE and his co-conspirators caused the submission of over $24 million in false and fraudulent claims to Medicare for genetic testing, and Medicare paid approximately $4 million based on those claims. Under the terms of LEE’s plea agreement, LEE agreed to over $4 million in restitution owed to Medicare.
The Honorable Lance M. Africk set sentencing for March 18, 2026.
At sentencing, the maximum penalty LEE may receive is five years of imprisonment, followed by up to three years of supervised release. He also faces a fine of up to $250,000, and payment of a mandatory special assessment fee of $100.
Acting U.S. Attorney Simpson praised the work of the Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Nicholas D. Moses, of the Financial Crimes Unit and Health Care Fraud Coordinator, and Trial Attorney Kelly Z. Walters, of the Department of Justice’s Criminal Division’s Fraud Section, are in charge of the prosecution.
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Arizona Man Charged with Hate Crime for Synagogue FireRead the Press Release
On Nov. 18, a federal grand jury in Phoenix returned a one-count indictment against Everardo Gregorio, 31, of Casa Grande, Arizona for the Obstruction of the Free Exercise of Religious Beliefs by Fire.
The indictment alleges that Gregorio burned down Khal Chasidim, a synagogue in Casa Grande, on March 3. The portion of the synagogue that was destroyed in the fire included the place where the Jewish community worshipped, as well as a kosher grocery store and restaurant that operated out of the building. Gregorio has also been charged with arson by the Pinal County Attorney’s Office and is currently pending trial in that case.
A conviction for Obstruction of Free Exercise of Religious Beliefs by Fire carries a maximum penalty of 20 years in prison, a $250,000 fine, or both.
The Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Casa Grande Police Department are handling the investigation. Assistant U.S. Attorney Ben Goldberg for the District of Arizona is handling the prosecution, in conjunction with the Department of Justice’s Civil Rights Division.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hanover Foods Agrees to Pay $1.15M Penalty and Implement Actions to Address Clean Water Act Violations at Wastewater Treatment FacilityRead the Press Release
The Justice Department and Environmental Protection Agency (EPA), working in conjunction with the Pennsylvania Department of Environmental Protection (PADEP), today announced a proposed consent decree with Hanover Foods Corporation. Under the proposed settlement, Hanover Foods would pay a $1.15 million civil penalty and take a series of actions to address violations of the Clean Water Act at its wastewater treatment facility in Hanover, Pennsylvania.
“Hanover Foods allegedly failed to properly treat industrial wastes at its wastewater treatment facility, jeopardizing human health and the environment,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Clean Water Act was enacted more than 50 years ago with the purpose of putting a stop to this type of water pollution. If accepted by the court, the consent decree will hold the company accountable and help ensure it continues to upgrade its facility and take other steps to prevent unlawful discharges of industrial waste.”
“Ensuring that Hanover Foods takes the necessary steps to prevent the release of nutrients and other pollutants underscores the EPA’s commitment to protecting our nation's waterways,” said Acting Assistant Administrator Craig Pritzlaff of the EPA’s Office of Enforcement and Compliance Assurance (OECA). “The measures outlined in the consent decree are essential for bringing Hanover’s facility into compliance with the Clean Water Act. They are vital for safeguarding the Chesapeake Bay and ensuring that local water sources remain clean, thereby protecting the health and well-being of the communities that rely on them.”
As alleged in a complaint filed with the proposed consent decree, Hanover Foods failed to comply with a state-issued National Pollutant Discharge Elimination System (NPDES) permit to operate its wastewater treatment plant in Hanover, Pennsylvania. NDPES permits are required if wastewater is being discharged into a water of the United States (WOTUS).
At this facility, Hanover Foods industrially processes foods, including beans and vegetables, for canning and fresh packing. Hanover Foods treats industrial waste associated with these operations before discharging wastewater into Oil Creek, which eventually flows into the Susquehanna River and then the Chesapeake Bay. Since 2016, Hanover Foods violated its NPDES permit on more than 600 occasions by exceeding its permit limits for pollutants including suspended solids, ammonia nitrogen, and phosphorus. In addition, environmental inspections identified numerous alleged violations of operations and maintenance requirements at Hanover Foods’ facility.
Under the terms of the proposed consent decree, Hanover will install new equipment and take other measures to prevent violations of its permit limits for certain nutrients and for temperature. Excessive nutrients and high temperatures can be harmful to aquatic life, including fish, shellfish, and underwater grasses that support aquatic ecosystems.
In addition to upgrades made while this case was under investigation, Hanover Foods will upgrade its wastewater treatment system, closely monitor compliance with its discharge permit, report any violations, identify their root causes, and take corrective action to address them. The upgrades include installation of a permanent boiler to maintain proper temperatures in its treatment process, implementation of spare-parts programs to avoid equipment downtime, and improvements to Hanover’s operations and maintenance program, including additional monitoring and tracking requirements.
More information on the settlement is available from the Hanover Foods CWA Settlement case summary page: www.epa.gov/enforcement/hanover-foods-corporation-cwa-settlement-summary.
EPA investigated the case and worked closely with the PADEP.
Attorneys with ENRD’s Environmental Enforcement Section are handling the case.
The proposed consent decree was lodged in the U.S. District Court for the Middle District of Pennsylvania and is subject to a 30-day public comment period and final court approval. The consent decree and information on how to submit a public comment are available on the Justice Department’s website: www.justice.gov/enrd/consent-decrees.
President of Insurance Brokerage Firm and CEO of Marketing Company Convicted in $233M Affordable Care Act Enrollment Fraud SchemeRead the Press Release
A federal jury in West Palm Beach, Florida, convicted a President of an insurance brokerage firm and a CEO of a marketing company today for their roles in a years-long scheme to submit fraudulent enrollments to fully subsidized Affordable Care Act (ACA) insurance plans in order to obtain millions of dollars in commission payments from insurance companies.
According to court documents and evidence presented at trial, Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, engaged in an extensive fraud scheme that sought over $233 million in fraudulent ACA plan subsidies for which the federal government paid at least $180 million. ACA plans offer tax credits to eligible enrollees. These tax credits, or “subsidies,” are paid by the federal government directly to insurance companies in the form of a payment toward the applicable monthly premium. Evidence presented at trial showed that Lloyd and Strong conspired to enroll consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Lloyd received commission and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd paid commissions to Strong in exchange for consumer referrals.
“The defendants exploited a health care safety net designed for working families to carry out a $233 million scheme to defraud taxpayers,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The defendants’ scheme targeted vulnerable people, including those suffering financial hardship, drug addictions and mental health disorders, to line their own pockets. Today’s guilty verdicts demonstrate that the Criminal Division seeks to protect all of our citizens and will continue to hold accountable criminals who steal taxpayer dollars and endanger the health and safety of our communities.”
“Health care fraud is nothing new to South Florida as many scammers see this as a way to earn easy, though illegal, money,” said Special Agent in Charge Brett Skiles of the FBI Miami Field Office. “What is disturbing about this investigation is that the subjects deliberately targeted the most vulnerable — low-income citizens experiencing homelessness, unemployment and even mental health and substance abuse issues. All to line their own pockets with ill-gotten gains. The investigators who unraveled this scam are to be commended for their diligence and commitment. The FBI and our partners will continue to pursue those individuals who defraud our health care system at the expense of taxpayers.”
“The ACA marketplace is not a playground for fraudsters,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This $230 million dollar subsidies scheme was built on deception, targeting vulnerable individuals and manipulating the system for personal gain. HHS-OIG will continue to relentlessly pursue those who exploit enrollees and undermine public trust, using every tool at our disposal to prevent health care fraud.”
“This was not just a financial crime — it was a moral failure,” said Special Agent in Charge Ronald A. Loecker of the IRS Criminal Investigation (IRS-CI) Florida Field Office. “Cory Lloyd and Steven Strong deliberately targeted the homeless and mentally ill to enrich themselves, which is unconscionable. IRS-CI will continue to work with our law enforcement partners to ensure that those who exploit others and defraud the government face justice.”
As proven at trial, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Strong’s company coached consumers on how to respond to application questions to maximize the subsidy amount and provided addresses and social security numbers that did not match the consumers purportedly applying. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced serious disruptions in their medical care and often lost their prior insurance coverage under Medicaid or other programs.
The evidence at trial further showed that Lloyd and Strong engaged in the scheme to maximize the commission payments they received from insurers, resulting in their companies’ receiving millions of dollars in commissions. Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially stated to insurance agents that they had no income. Lloyd and Strong also conspired to bypass the federal government’s attempts to verify income and other information and deliberately submitted applications to Medicaid for various individuals in a way that guaranteed their denial so that they could sign up these same consumers for a fully subsidized ACA plan outside of the open enrollment period and therefore maximize their commissions year-round. Finally, evidence presented at trial showed that the defendants financed the purchase of luxury homes and vehicles with fraud proceeds from this scheme.
Lloyd and Strong were both convicted of one count of conspiracy to commit wire fraud, three counts of wire fraud, and one count of conspiracy to defraud the United States. Steven Strong was also convicted of two counts of money laundering. Each defendant faces a maximum penalty of 20 years in prison for their conviction of conspiracy to commit wire fraud, 20 years in prison for each substantive count of wire fraud, and five years in prison for conspiracy to defraud the United States. Steven Strong faces a maximum of 10 years in prison for each count of money laundering. Sentencings are set for Feb. 4, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI, HHS-OIG, and IRS-CI are investigating the case.
Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Mexican National Convicted of Tax Fraud SchemeRead the Press Release
Last week, a federal jury in Las Vegas convicted a Mexican national of operating a scheme in which he claimed to be an IRS officer and misrepresented to victims that he was able to obtain hundreds of thousands of dollars for them from a fictitious IRS program.
The following is according to court documents and evidence presented at trial: Francisco Ivan Velazquez, a Mexico national, falsely held himself out to be an employee of the IRS and claimed to his victims that he could secure large monetary payments for them from the IRS. Velazquez falsely claimed that such funds were available from a purported IRS program that allowed people who had previously lost a home to foreclosure to recoup money by applying to the IRS and filing certain documents. Velazquez advised the victims that, in exchange for a fee, he would submit an application for them to recover the funds. In some instances, Velazquez then aided in the presentation of a false tax return with the IRS on behalf of the victim that claimed that the victim had federal tax withholdings of $100,000 or more and requested the withholdings be refunded.
Velazquez was convicted of three counts of wire fraud, one count of aiding the presentation of a false tax return, and two counts of impersonating an IRS officer. The jury did not return a verdict on four counts of aiding in the preparation of false tax returns.
Velazquez is scheduled to be sentenced on Feb. 18, 2026, and faces a maximum penalty of 20 years in prison for each wire fraud count, a maximum penalty of three years in prison for aiding in the presentation of a false tax return, and a maximum penalty of years in prison for each count of impersonating an officer or employee of the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation and the Treasury Inspector General for Tax Administration are investigating the case.
Justice Department Files Complaint Challenging California Mask Ban and Identification Requirements for Federal OfficersRead the Press Release
WASHINGTON – Today, the Department of Justice filed a lawsuit against California, Governor Gavin Newsom, and Attorney General Robert Bonta challenging their unconstitutional attempt to regulate federal law enforcement officers through the so-called “No Secret Police Act” and “No Vigilantes Act.”
Not only are the laws illegal attempts to discriminate against and regulate the federal government, but, as alleged in the complaint, the laws threaten the safety of federal officers who have faced an unprecedent wave of harassment, doxxing, and even violence. Threatening officers with prosecution for simply protecting their identities and their families also chills the enforcement of federal law and compromises sensitive law enforcement operations. The danger is acute.
"Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties," said Attorney General Pamela Bondi. "California’s anti-law enforcement policies discriminate against the federal government and are designed to create risk for our agents. These laws cannot stand."
"The Department of Justice will steadfastly protect the privacy and safety of law enforcement from unconstitutional state laws like California’s," said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
"Assaults against federal agents have exploded over the last few months, thanks in part to recklessness political rhetoric aiming to delegitimize our brave agents," said First Assistant United States Attorney Bill Essayli of the Central District of California. "Unconstitutional laws such as this one further endanger our brave men and women protecting our community. Our immigration enforcement will continue unabated and unhindered by unconstitutional state laws enacted by irresponsible politicians."
On her first day in office, Attorney General Bondi instructed the Department’s Civil Division to identify state and local laws, policies, and practices that facilitate violations of federal laws or impede lawful federal operations. Today’s lawsuit is the latest in a series of lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in New York, New Jersey, and Los Angeles, California.
Department of Justice Releases 2025 Annual Report to Congress on Efforts to Combat Elder Fraud and AbuseRead the Press Release
Today, the Department of Justice released the 2025 Annual Report to Congress on Department of Justice Activities to Combat Elder Fraud and Abuse, which details the Department’s progress in protecting older Americans and holding perpetrators of elder fraud accountable.
Over the reporting period, criminal and civil litigators across the Department pursued more than 280 enforcement actions against over 600 defendants — including many in the United States illegally or located overseas and extradited to be charged in U.S. courts. These offenders, both domestic and transnational, attempted to steal, or did steal, more than $2 billion from more than one million older Americans. The Department also successfully held multiple nursing home operators accountable for providing grossly substandard care to vulnerable Medicare and Medicaid beneficiaries.
To strengthen its response to elder fraud and abuse, the Department continued to invest in capacity building for law enforcement, prosecutors, and judges. It held the first National Elder Abuse Multidisciplinary Team Summit, which brought together nearly 400 elder abuse multidisciplinary team members from around the country to share best practices for coordinated enforcement and improved services for older Americans.
Department reporting confirms that older adults lose billions of dollars every year to elder fraud schemes. During the reporting period, the Department recovered or froze millions of dollars stolen from older victims. The Department — through Victims of Crime Act (VOCA) formula grants to states — also supported more than 4,000 victim assistance organizations, which provided services to nearly 200,000 older victims nationwide. Additionally, the Department supported the first National Elder Abuse Victim Services Needs Assessment, a resource that will enable the Department and others to address and close identified gaps in services for older victims in the years ahead.
Recognizing the devastating consequences of elder fraud and abuse, all components within the Department engaged in some form of public awareness to promote prevention. In total, the Department held nearly 1,200 elder-focused public awareness and training events, reaching nearly 15 million Americans with information about prevention, intervention, and available resources.
The Department is committed to using every tool available — enforcement, victim services, capacity building, and public outreach — to combat the scourge of elder fraud and abuse, and it will continue to prioritize elder justice in the year ahead, building on these accomplishments.
For more information on elder fraud and abuse, visit the Department’s Elder Justice Initiative website. If you or someone you know has been the victim elder fraud, please call the National Elder Fraud Hotline at 833–FRAUD–11or or 833–372–8311.
Billings man pleads guilty to kidnapping chargesRead the Press Release
BILLINGS - A Billings man accused of kidnapping admitted to charges today, U.S. Attorney Kurt Alme said.
The defendant, Joshua Lawrence Wellington, 34, pleaded guilty to one count of kidnapping. Wellington faces a maximum potential term of life imprisonment, a $250,000 fine, and 5 years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. U.S. District Judge Susan P. Watters will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing will be set for a later date. Wellington was detained pending further proceedings.
The government alleged in court documents that in June 2024, Wellington and Jane Doe were in a dating relationship. Wellington was absconding from Montana Probation & Parole and staying in Miles City. Doe visited Wellington in Miles City on three occasions. Wellington used methamphetamine during those visits. During the final visit, on June 29, 2024, Doe and Wellington got a hotel room. Wellington became aggressive and angry during sex with Doe, threatened to hit her over the head with a liquor bottle, then strangled her until she began to pass out. Doe begged him to stop, and he hit her over the head with the liquor bottle.
Wellington told Doe that Doe had “gone too far,” and they were going to leave Miles City and Montana. Wellington forced Doe into her car and took her cell phone. As soon as Wellington got onto the highway, he began to beat Doe. He hit her with his right hand while he drove with his left. He pulled the rearview mirror and a sun visor off Doe’s car and beat her with those items, stabbed her with a pen, threatened to beat her progressively worse if she did not comply with him, and told her to write a letter to her son telling him good-bye. Doe was terrified and did not feel she could willingly leave.
This continued for several hours until Wellington needed to stop for gas in Lemmon, South Dakota. Wellington placed Doe on the floorboard of the passenger seat and covered her with a blanket. Wellington told Doe not to do anything stupid and stated that if he got caught, he would kill her when he got out of custody. Doe ran out of the car and yelled for help in the parking lot and the gas station. Wellington was ultimately arrested after a high-speed pursuit. Wellington admitted that he hit Doe “quite a bit.”
The U.S. Attorney’s Office prosecuted the case. The FBI conducted the investigation.
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Aesculap Implant Systems Agrees to Pay $38.5M to Resolve False Claims Act Allegations Related to Knee Implant Failures and Enters into a Non-Prosecution Agreement Related to the Introduction of Two Adulterated Medical Devices into Interstate CommerceRead the Press Release
Medical device company Aesculap Implant Systems LLC (Aesculap), based in Center Valley, Pennsylvania, has agreed to pay $38.5 million to resolve allegations under the False Claims Act that the company sold knee replacement devices that it knew would fail prematurely at a higher than acceptable rate, resulting in false claims to Medicare and Medicaid. The settlement further resolves allegations that the company paid unlawful remuneration to a physician to induce him to use the knee implants. Additionally, Aesculap agreed to a non-prosecution agreement with the United States in connection with its distribution of two medical devices without the required clearance from the U.S. Food and Drug Administration (FDA).
“Medical device failures — and their potential to harm patients — are of paramount concern to the Department of Justice,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will hold accountable medical device companies that knowingly sell products prone to failure that present risks to patients and waste taxpayer dollars.”
“Doctors who implant medical devices need complete and accurate information about those devices to ensure they choose the best and safest options for their patients,” said U.S. Attorney David Metcalf for the Eastern District of Pennsylvania. “A company that knows its product has a propensity to prematurely fail must not mislead doctors or government regulators or conceal material information about those known issues. Medicare and other federal programs should not be required to pay charges for devices that are unduly risky, and that may require painful and expensive surgeries to fix.”
“Transparency in medical device marketing is essential to safeguarding patient care,” said Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Undermining this process to increase profits is a serious violation of federal law that flouts the health and safety of patients. HHS-OIG will continue to work with our law enforcement partners to uncover and dismantle illegal arrangements that exploit the Medicare system for financial gain at the expense of patients.”
“Certain medical devices require FDA notification and clearance before distribution to the public,” said Acting Special Agent in Charge Ronald Dawkins of the FDA Metro Washington Field Office. “Distributing such medical devices without FDA clearance and in violation of the Federal Food, Drug, and Cosmetic Act can put patients at risk. The FDA’s Office of Criminal Investigations (OCI) worked with the Justice Department and HHS-OIG to ensure a just resolution, and we commend the exceptional work done by the team.”
The civil settlement announced today resolves allegations that, from July 30, 2010, to June 17, 2023, Aesculap sold the VEGA System® Knee System, a line of prosthetic implants used in knee replacement surgeries, while knowing that it would fail prematurely at a higher than acceptable rate and, therefore, was not reasonable and necessary for use during knee replacement surgeries. In such surgeries, physicians remove arthritic bone in the knee and implant a device, which is fixed in place with bone cement. The United States alleged that the Vega was prone to becoming loose from patient’s bone prematurely, often shortly after surgery. Patients experiencing loosening could have pain, instability, and difficulty walking, and such patients required a revision surgery to remove and replace the Vega implant. The United States alleged that Aesculap knew shortly after the Vega was released in the United States that bone cement did not properly adhere to the implant. Despite this knowledge, Aesculap sold the Vega to physicians and hospitals in the United States without disclosing this known problem with the device. The United States also alleged that Aesculap failed to take steps to record, track, or report adverse events for the Vega and did not take adequate steps to remediate the problem. As of April 2024, Aesculap stopped selling all of its knee replacement devices, including the Vega, in the United States.
The settlement also resolves allegations that Aesculap knowingly and willfully made unlawful payments to an orthopedic surgeon located in Georgia who experienced problems with the Vega with the intent to induce him to use and recommend the Vega Knee System, in violation of the Anti-Kickback Statute, 42 U.S.C. 1320a-7b(b). This remuneration took the form of consulting payments, free international travel, and entertainment, among other things.
In addition to the civil settlement, Aesculap agreed to enter into a non-prosecution agreement related to the introduction of two medical devices into interstate commerce in violation of the Food, Drug and Cosmetic Act (FDCA) from March 2017 until August 2017. The two devices at issue are the ELAN-4 Air Drill, a high-speed surgical drill used for bone cutting, sawing, and drilling, and the JS Series SterilContainer S2, a reusable sterilization container for medical instruments. According to the non-prosecution agreement, Aesculap tasked an employee with shepherding both medical devices through the FDA clearance process, but the employee never submitted any documentation to FDA. He then forged multiple documents to reflect both devices were cleared by FDA to be marketed in the United States when FDA had not done so resulting in the illegal introduction of both devices into interstate commerce. The employee previously pleaded guilty to violating the FDCA and was sentenced to prison.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by John Marien and Michael McGee, who served as third-party distributors for Aesculap. Under those provisions, private parties can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Marien & McGee v. Aesculap Inc., et al., No. 5:19-cv-1618 (E.D. Pa.). Marien and McGee will receive a share totaling $4,475,000 in connection with the settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the Civil Division’s Enforcement and Affirmative Litigation Branch; and the U.S. Attorney’s Office for the Eastern District of Pennsylvania with assistance from HHS-OIG and FDA’s Office of the Chief Counsel and FDA-OCI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The civil matter was handled by Senior Trial Counsel Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorneys Charlene K. Fullmer and Erin E. Lindgren of the Eastern District of Pennsylvania.
The criminal matter was handled by Trial Attorneys Max J. Goldman and Bryson N. Gillard of the Enforcement and Affirmative Litigation Branch.
Except for the facts that Aesculap admitted as part of the non-prosecution agreement, the claims resolved by the settlement are allegations only and there has been no determination of liability.
Oklahoma man sentenced to prison for distributing methamphetamine on the Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS – An Oklahoma man who distributed methamphetamine on the Northern Cheyenne Indian Reservation was sentenced today to 36 months in prison to be followed by 3 years of supervised release, U.S. Attorney Kurt Alme said.
Norman Vernell Mitchell, 36, pleaded guilty in January 2025 to possession with intent to distribute methamphetamine.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in November 2023, law enforcement received information Mitchell was distributing methamphetamine in Ashland on the Northern Cheyenne Indian Reservation. Sources said Mitchell had “plenty of meth” and confirmed buying methamphetamine directly from him.
On December 13, 2023, law enforcement conducted a controlled purchase of methamphetamine from Mitchell. Officers watched Mitchell walk into the area where the controlled purchase occurred in Broadus and purchased approximately three ounces of meth from Mitchell for $1,800.
The U.S. Attorney’s Office prosecuted the case. The investigation was conducted by the FBI and BIA.
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 violent crime and gun violence, 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.
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Hong Kong Businessman Indicted for Role in Filing False SEC Investment Adviser Forms on behalf of Sham Entities Used in Ramp-and-Dump SchemeRead the Press Release
A federal grand jury in the District of Columbia returned an indictment yesterday charging a Hong Kong man for his role in a conspiracy to file false and deceptive investment adviser forms with the U.S. Securities and Exchange Commission (SEC) for at least 10 shell business entities that he and co-conspirators created. The false forms gave the impression that the entities were legitimate financial advisers, though they were sham entities. At least two of these false entities were then used to induce retail investors through social media and WhatsApp chats to purchase the stock of Chinese companies listed on NASDAQ.
“Today’s indictment charges the defendant for his alleged role in a complex securities fraud scheme that caused hundreds of millions of dollars in investor losses,” said Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division. “The Criminal Division is fully committed to stopping foreign actors who victimize American retail investors. Under my leadership, the Criminal Division will aggressively investigate and prosecute criminals who steal the hard-earned savings of U.S. citizens through fraud and deceit.”
“The investing public relies on the accuracy and integrity of materials filed with the SEC,” said SEC Inspector General (SEC-OIG) Kevin B. Muhlendorf. “The SEC-OIG will tirelessly investigate domestic and foreign actors who seek to abuse the SEC’s processes for malicious purposes.”According to the indictment, Guanhua Su, 37, of Hong Kong, who goes by the alias “Michael Su,” was the managing director and marketing director of Rhino Consulting Business Service Ltd, a Hong Kong-based financial services business. As alleged, between approximately February 2023 and March 2025, Su and his co-conspirators created at least 10 shell entities and filed fraudulent investment adviser forms with the SEC on behalf of the companies. For example, on behalf of two entities — Bluesky Eagle Capital Management LTD (Bluesky Eagle) and Wisdom Capital Management Group LTD (Wisdom Capital) — Su allegedly made or caused to be made false statements concerning the entities’ principal place of business, status as a public company, chief officers and whether information about private funds would be disclosed on other investment advisers’ filings.
According to the indictment, in April 2024, Bluesky Eagle and Wisdom Capital were used by co-conspirators to induce investors to purchase stock of a NASDAQ-listed public company based in the Cayman Islands with business in China that operated, at one point, with a variable interest entity (VIE) structure. Using false identities of financial advisers purportedly connected to Bluesky Eagle and Wisdom Capital, co-conspirators allegedly promised returns of 300-500% in WhatsApp chats, telling investors that they would be fully compensated for any losses. The indictment further alleges that as investors were told to buy stock in the public company promoted by WhatsApp accounts associated with the sham entities, foreign-based brokerage accounts sold the company’s stock for gross proceeds of as much as $211 million. On April 17, 2024, the public company’s stock price collapsed by approximately 88%, resulting in significant investor losses.
On Nov. 13 the SEC filed civil actions against a number of entities for which the Department had charged Su with filing false forms with the regulator. The SEC filed civil actions against Bluesky Eagle and Supreme Power Capital Management LTD in the Southern District of New York and against AI Financial Education Foundation Ltd.,AI Investment Education Foundation Ltd., Invesco Alpha Inc. and Adamant Stone Ltd. in the District of Colorado. The SEC previously filed a civil action against Wisdom Capital in the District of Columbia.
Su is charged with conspiracy to commit securities fraud, making material misstatements in a report filed with the SEC, and false statements. If convicted, the defendant faces a maximum penalty of five years in prison for each count.
The SEC-OIG investigated the case. The Department of Justice appreciates the efforts of FINRA’s Surveillance and Market Intelligence – Market Abuse Group.
Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hawaii Man Sentenced to Life in Prison and to Pay over $1M in Restitution for Sex Trafficking Three Adult Women and One MinorRead the Press Release
Isaiah McCoy, 37, of Honolulu, Hawaii, was sentenced yesterday to life in prison after a jury found McCoy guilty in April of four counts of sex trafficking three adults and one minor, two counts of obstructing a sex trafficking investigation, seven counts of interstate and foreign travel or transportation in aid of racketeering enterprises, and one count of interstate travel for prostitution purposes. Additionally, the court ordered McCoy to pay the victims $1,017,241.00 in restitution.
“The significant sentence imposed by the court reflects the egregiousness of the defendant’s conduct in abusing and preying on multiple women and girls,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The defendant targeted each victim’s vulnerabilities and used physical force, threats, sexual violence, and psychological coercion to compel the victims to engage in commercial sex for his own profit. The Justice Department is committed to fully enforcing our federal human trafficking statutes to hold offenders accountable and to seek justice for survivors of these heinous crimes.”
“The sentencing of Mr. McCoy is a testament to HSI’s zero tolerance for those who engage in sex trafficking in Hawaii,” said Special Agent in Charge Lucy Cabral-DeArmas of Homeland Security Investigations (HSI) Hawaii. “McCoy is a predator who left countless victims in his path while he sought to enrich himself at their expense. HSI will aggressively pursue those, like McCoy, who seek to exploit vulnerable women and girls and mute their voices while believing they will not be held accountable.”
The evidence presented at the 12-day trial earlier this year showed that McCoy compelled victims to commit hundreds of commercial sex acts between 2019 and 2021. McCoy made promises of a romantic relationship, a luxurious lifestyle, and financial security to women and girls struggling with low self-esteem, a difficult upbringing, and/or financial trouble. McCoy’s promises ended up hollow and false, designed to provide him with the opportunity to learn about a victim’s vulnerabilities while misrepresenting himself as caring and empathetic. McCoy’s feigned romantic interest and claimed wealth led him to emotionally manipulate his victims.
After luring the victims into his orbit with his false promises, McCoy turned violent and abusive if the victims did not provide him with enough money or otherwise violated one of his many rules, which included requiring the victims to call him “Daddy” or “Zeus,” requiring the victims to share their cell phone location, and requiring the victims to provide him an update on the amount of money earned through commercial sex work. Evidence presented in court detailed the extensive violence to which McCoy subjected his victims. For example, McCoy repeatedly burned one of the victims on her arms when she did not provide him with enough money. On other occasions, McCoy threw victims to the ground before repeatedly stomping on their head, stomach, or hands with his feet. McCoy even smashed a victim’s head against a car door before carrying her unconscious body through a hotel lobby and into an elevator. McCoy inflicted violence against multiple victims that caused them to seek treatment at local hospitals. All of McCoy’s actions contributed to the creation of a climate of fear where the victims felt they had no way out because McCoy promised them that he had eyes and ears everywhere monitoring the victims’ every move.
McCoy required his victims to work all hours of the day and night even when they were sick or hungry. Afterwards, McCoy required the victims to turn over all the proceeds from his commercial sex business to himself because he felt that the money belonged to him. McCoy then spent the money on high-end designer shoes, belts, clothing, and other accessories. In contrast, although McCoy would intermittently buy items for the victims as “rewards,” the victims were ultimately left with nothing.
HSI investigated the case with assistance from the Honolulu Police Department.
Trial Attorney Elizabeth Hutson and former Trial Attorney Maryam Zhuravitsky of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Department of Homeland Security Contractor Agrees to Pay $3.9M to Resolve Alleged Violations of the False Claims ActRead the Press Release
Zephyr Aviation LLC, located in Mineral, Virginia, and its owners Frederick Credno Jr. and Frederick W. Credno III have agreed to pay $3,901,000 to resolve allegations that they violated the False Claims Act by submitting inflated invoices for aviation contracts to the Department of Homeland Security (DHS).
“Companies that do business with the government are expected to charge the United States accurately for the goods and services they provide,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department will continue to pursue those who knowingly overcharge the government at the expense of the American taxpayers.”
“With this settlement, we are sending a clear message that committing fraud in federal contracts will be met with significant sanctions against those defrauding the American taxpayer,” said Inspector General Joseph V. Cuffari of the Department of Homeland Security Office of Inspector General (DHS-OIG). “I commend our law enforcement partners and the Department of Justice’s Civil Fraud Section for tirelessly pursuing this investigation to hold these individuals accountable.”
“This settlement showcases CBP OPR’s ongoing commitment to accountability and integrity,” said Acting Assistant Commissioner Robert B. Danley of the Customs and Border Protection (CBP) Office of Professional Responsibility. “Today’s settlement reaffirms our duty to protect taxpayers and hold accountable those who take advantage of our government programs.”
This settlement resolves allegations pertaining to contracts with DHS under which Zephyr chartered flights to transport persons in the custody of CBP between 2022 and 2025. In connection with these contracts, Zephyr subcontracted with various aircraft operators to fly the required flights, and Zephyr submitted invoices to CBP purportedly based on the required flight times. The United States alleged that Zephyr and its owners routinely submitted invoices to DHS that requested payment for flight hours that exceeded the actual flight times of the aircraft operators.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, U.S. Customs and Border Protection, and DHS Office of Inspector General. The matter was handled by Trial Attorney Daniel W. Kastner of the Fraud Section.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Note: The Settlement can be read here.
Cryptocurrency Investment Firm Founder Sentenced to Five Years in Prison for Defrauding Investors in $9.4M Ponzi SchemeRead the Press Release
An Oklahoma man was sentenced yesterday to 60 months in prison and ordered to pay over $1 million in forfeiture and over $170,000 in restitution for his leading role in a cryptocurrency investment fraud conspiracy.
According to court documents and admissions, Travis Ford, 36, of Glenpool, Oklahoma, was the CEO, co-founder, and head trader of Wolf Capital Crypto Trading LLC, a cryptocurrency investment firm that raised $9.4 million from approximately 2,800 investors. From at least January 2023 through at least August 2023, Ford solicited investments through the company website and other social media and internet-based promotion activities. Ford held himself out as a sophisticated trader, able to deliver high returns of 1–2% per day (approximately 547% per year). As part of his guilty plea, Ford admitted that he did not believe those promised investment returns were possible to achieve consistently. Instead, Ford and his co-conspirators allegedly made such false promises to induce members of the public to invest money in the company. Ford then misappropriated and diverted investor funds to benefit himself and his co-conspirators, to the financial detriment of investors.
In January 2025, Ford pleaded guilty to one count of conspiracy to commit wire fraud.
Acting Assistant Attorney Matthew R. Galeotti and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The USPIS is investigating the case.
Trial Attorney John J. Liolos of the Justice Department’s Fraud Section is prosecuting the case.
Tennessee Woman Pleads Guilty to Charges Related to Creation and Distribution of Videos Depicting Monkey Torture and MutilationRead the Press Release
A Tennessee woman pleaded guilty last week to crimes based on her involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
Katrina Favret, of Greenville, Tennessee, pleaded guilty to conspiring to create and distribute so-called “animal crush videos,” and to a second count addressing a specific video she solicited.
According to court documents, Favret conspired with others to create and distribute videos depicting acts of sadistic violence against baby and adult monkeys. The conspirators used encrypted chat applications to direct money to individuals in Indonesia willing to commit the requested acts of torture on camera.
According to a statement of facts signed by Favret, the videos included depictions of monkeys having their digits and limbs severed and monkeys being forcibly sodomized with a heated screwdriver.
Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD) and U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio made the announcement.
The U.S. Fish and Wildlife Service and FBI investigated the case.
Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.
Telemarketing Company Operators Sentenced for Roles in Genetic Testing Fraud SchemeRead the Press Release
Two men from Texas and Florida were sentenced today to four years and two years in prison, respectively, for their roles as leaders of a marketing company that solicited Medicare beneficiaries for medically unnecessary genetic testing. The Florida man received an additional two years in prison, to be served concurrently, for his role in falsifying the ownership information in Medicare enrollment documentation for a clinical laboratory.
According to court documents, Paul Wexler, 56, of Spring, Texas, and Paul Bleignier, 64, of Seminole, Florida, operated a telemarketing company that recruited Medicare beneficiaries for cancer genetic (CGx) testing that was medically unnecessary. CGx testing uses DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. It is not a method of diagnosing whether an individual presently has cancer, and Medicare covers CGx testing in limited circumstances. Further, Wexler, Bleignier and their co-conspirators solicited and received kickbacks in exchange for referring Medicare beneficiaries for CGx testing that was not eligible for Medicare reimbursement. Through the scheme, Wexler and Bleignier caused Medicare to be billed $17.3 million, and they were paid $5.2 million.
While the criminal case for genetic testing fraud was pending, Bleignier opened a clinical laboratory and enrolled it in Medicare. Medicare requires a certification listing anyone with 5% or more ownership interest, but Bleignier used other people’s identities to disguise his involvement. The claims related to that laboratory were further tainted by kickbacks. Bleignier and his co-conspirators billed Medicare for $3,012,156 in claims that were ineligible for reimbursement, and they were paid $916,106.
In April 2024, Wexler pleaded guilty to conspiracy to commit health care fraud and wire fraud. In November 2022, Bleignier pleaded guilty to conspiracy to defraud the United States and pay and receive kickbacks, and in November 2024, he pleaded guilty to making false statements related to health care matters. At sentencing the two were ordered to pay $1.2 million in forfeiture each and $5.2 million in restitution. Bleignier was ordered to pay an additional $916,106 in forfeiture for his role in falsifying the ownership information in Medicare enrollment documentation.
Acting Assistant Attorney General Matthew R. Galeotti of the Justice Department’s Criminal Division; U.S. Attorney Gregory W. Kehoe for the Middle District of Florida; and Deputy Inspector General for Investigations Christian J. Schrank of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
HHS-OIG and FBI investigated the case.
Trial Attorney Charles D. Strauss of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Pawtucket Man Sentenced to Federal Prison for Trafficking MethamphetamineRead the Press Release
PROVIDENCE – A Pawtucket man previously convicted and incarcerated in Massachusetts and Rhode Island on drug trafficking charges was sentenced in federal court in Rhode Island for distributing methamphetamine, announced Acting United States Attorney Sara Miron Bloom.
Anthony Shukri Nelson, 41, was sentenced on November 13, 2025 by U.S. District Court Chief Judge John J. McConnell, Jr. to 90 months imprisonment to be followed by four years of supervised release. Nelson pleaded guilty on September 25, 2025 to distribution of five grams or more of methamphetamine.
According to court documents, between February 9 and February 23, 2022, Nelson delivered over 37 grams of methamphetamine and 11.5 grams of cocaine to another individual in exchange for cash. During the investigation, members of the FBI’s Rhode Island Safe Streets Gang Task Force conducted a court authorized search of Nelson’s Pawtucket residence, resulting in the seizure of approximately 225 grams of cocaine and more than $23,750 in cash.
At the time of his arrest, Nelson was on probation stemming from a prior Rhode Island conviction.
The case was prosecuted by Assistant U.S. Attorneys Stacey A. Erickson and Taylor Dean.
The matter was investigated by FBI’s Rhode Island Safe Streets Gang Task Force with assistance from the Pawtucket Police Department and Rhode Island State Police.
Justice Department Sues Governor Gavin Newsom for California’s Race-Based Redistricting PlanRead the Press Release
WASHINGTON – The Justice Department announced today that it filed legal action against Governor Gavin Newsom and Secretary of State Shirley Weber for the State of California’s newly adopted redistricting plan enacted with the passage of Proposition 50. The suit alleges that the plan mandates racially gerrymandered congressional districts in violation of the Equal Protection Clause of the Fourteenth Amendment to the U.S. Constitution.
Proposition 50 amends the California Constitution, allowing the legislature to draw a new congressional-district map. Substantial evidence, including that in the legislative record and public statements, indicate that the legislature created a new map in which Latino demographics and racial considerations predominated, in violation of the Equal Protection Clause.
"California’s redistricting scheme is a brazen power grab that tramples on civil rights and mocks the democratic process," said Attorney General Pamela Bondi. "Governor Newsom’s attempt to entrench one-party rule and silence millions of Californians will not stand."
"Race cannot be used as a proxy to advance political interests, but that is precisely what the California General Assembly did with Prop 50," said Jesus A. Osete, Principal Deputy Assistant Attorney General for Civil Rights. "Californians were sold an illegal, racially gerrymandered map, but the U.S. Constitution prohibits its use in 2026 and beyond."
"The race-based gerrymandered maps passed by the California legislature are unlawful and unconstitutional," said First Assistant United States Attorney Bill Essayli of the Central District of California. "The U.S. Department of Justice is moving swiftly to prevent these illegal maps from tainting our upcoming elections. California is free to draw congressional maps, but they may not be drawn based on race."
The Department’s motion to intervene in Tangipa et al v Newsom is pending before the U.S. District Court for the Central District of California.
Assistant Attorney General Harmeet K. Dhillon has been recused from this case. Principal Deputy Assistant Attorney General Jesus A. Osete will represent the Department on this matter.
Former Virginia Business Owner Sentenced for Employment Tax FraudRead the Press Release
A Virginia man and former business owner was sentenced today to 80 months in prison for not accounting for and paying employment taxes to the IRS.
The following is according to court documents and statements made in court: Richard Moore was the executive vice president and part owner of Nexus Services Inc., a Verona-based company that offered bond securitization and other services to immigrants detained by U.S. Immigration and Customs Enforcement. With his control over the company’s business and financial affairs Moore was responsible for withholding Social Security, Medicare, and income taxes from Nexus’s employees’ wages and paying those funds over to the IRS. The timely payment of these taxes is critical to the functioning of the U.S. government because, for example, they are the primary source of funding for Social Security and Medicare. The federal income taxes that are withheld from employees’ wages also account for a significant portion of all federal income taxes collected each year.
For many quarters between the first quarter of 2015 and first quarter of 2024, Moore withheld the funds but did not pay them over to the IRS and did not file the returns. In total, Moore caused a tax loss to the IRS of approximately $3.1 million.
While not paying the taxes withheld from employees’ wages to the IRS, Moore spent millions of dollars of the company’s money on himself. For example, he spent more than $500,000 on luxury cars, including three Ferarris, three Maseratis, two BMWs, and a Mercedes Benz. He also spent more than $573,000 on his August 2016 wedding and more than $1.1 million to write, publish, and publicize a book written by his spouse.
In addition to his prison sentence, U.S. District Judge Elizabeth K. Dillon for the Western District of Virginia ordered Moore to serve three years of supervised release and to pay $3,023,984 in restitution to the United States.
IRS Criminal Investigation investigated the case.
The United States Announces Agreement with Cornell UniversityRead the Press Release
WASHINGTON – Today, the U.S. Department of Justice, U.S. Department of Education, and the U.S. Department of Health and Human Services announced an agreement with Cornell University (“Cornell”) that will protect Cornell’s students from violations of federal civil rights laws, including from discrimination based on race, sex, or national origin, and promote America’s hardworking farming and rural communities.
As part of the agreement, Cornell University will invest thirty million dollars through 2028 in research programs on agriculture, farming, and related studies that will support American farmers through lower costs of production and enhanced efficiency. Cornell will additionally pay thirty million dollars to the United States over the next three years. The university agrees to provide the Department of Justice’s “Guidance for Recipients of Federal Funding Regarding Unlawful Discrimination” as a training resource to faculty and staff, and will continued to conduct annual surveys to evaluate the campus climate for Cornell students. The university also agrees to comply with lawful requests from the United States related to foreign funding sources.
Through 2028, Cornell will provide relevant anonymized admissions data for statistical analyses to the United States. The President of Cornell will personally certify, under penalty of perjury, that Cornell is in compliance with the agreement. The United States will close its pending investigations into the university’s admissions policies and other civil rights concerns. The United States shall treat Cornell as eligible for future grants and awards, as well as restore terminated grants to Cornell from the Department of Health & Human Services and other federal agencies.
“Recipients of federal funding must fully adhere to federal civil rights laws and ensure that harmful DEI policies do not discriminate against students,” said Attorney General Pamela Bondi. “Today’s deal is a positive outcome that illustrates the value of universities working with this administration — we are grateful to Cornell for working towards this agreement.”
“The Trump Administration has secured another transformative commitment from an Ivy League institution to end divisive DEl policies,” said U.S. Secretary of Education Linda McMahon. “Thanks to this deal with Cornell and the ongoing work of DOJ, HHS, and the team at ED, U.S. universities are refocusing their attention on merit, rigor, and truth seeking – not ideology. These reforms are a huge win in the fight to restore excellence to American higher education and make our schools the greatest in the world.”
"The Trump Administration is actively dismantling the ability of elite universities to discriminate based on race or religion," said Health and Human Services Secretary Robert F. Kennedy Jr. "The DOJ’s agreement with Cornell strengthens protections for students against antisemitism and all other forms of discrimination."
“As a result of securing this groundbreaking settlement between the United States and Cornell, applicants and students will receive fair and equal treatment as required by our civil rights laws, and American farmers will have expanded opportunity for agricultural development and productivity,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Cornell agreement exhibits this administration’s deep commitment to vigilantly enforce our federal civil rights laws on college campuses, and ensure that American universities manage taxpayer dollars responsibly.”