District Not Recorded

The Justice Department issued the following statements regarding the U.S. District Court for the Western District of Michigan’s decision yesterday in People of the State of Michigan vs. BP, P.L.C., et al., which was an antitrust lawsuit brought by the state against energy companies.The Justice Department’s Antitrust Division and Energy and Natural Resources Division (ENRD) had previously filed a statement of interest to inform the court of legal doctrines that limited the state’s claims. 

“This dismissal should make states rethink the use of lawfare to enact climate change policy,” said Associate Attorney General Stanley E. Woodward, Jr. “We are committed to upholding antitrust and environmental law. Michigan’s case would have accomplished neither. That is what we highlighted in our statement of interest.”

“Last May, we filed a complaint against Michigan to prevent it from suing energy companies for climate change under state law theories that are preempted by federal law,” said Principal Deputy Assistant Attorney General Adam Gustafson of ENRD. “After we filed our complaint, Michigan pivoted to the novel antitrust claims that the court dismissed yesterday. We are pleased that the district court has rejected another aggressively anti-energy lawsuit, and we are committed to protecting American energy from this sort of state overreach.”

“Antitrust law protects competition and thereby consumers; it is not a tool to advance societal goals unrelated to competition,” said Deputy Assistant Attorney General G. Charles Beller of the Antitrust Division. “The court’s dismissal of Michigan’s novel antitrust claims reiterates the bedrock principle that State plaintiffs, like other private parties, must establish antitrust standing. This standing doctrine ensures that the relief provided to private parties is appropriately tailored to redress harms to competition. On behalf of the American people, we are proud to have worked with ENRD to protect and defend the proper application of federal law.”

NEW BERN N.C. – A federal judge sentenced Mijuel Taylor, also known as “Mthang,” 24, of Wilson to almost 12 years in federal prison for possessing meth with intent to distribute it and possession of a firearm by a convicted felon.

“Stashing a loaded gun in your waistband while standing in a house tied to gang shootings, with a pocket full of meth, is a fast track to federal prison,” said U.S. Attorney Ellis Boyle. “Wilson has seen far too many gang‑related shootings and lawlessness. This conduct only fuels more violence in a vicious cycle. The rules for staying out of trouble are simple: no gangs, no illegal guns, and don’t sell drugs. These young thugs destroy their families and communities with guns and drugs and the inevitable violence that follows. If you somehow avoid getting shot, you go to prison to rot. Get smart. Choose better.”

In the summer of 2024, Wilson experienced at least 12 gang‑related shootings. Investigators determined the violence fueled from a dangerous rivalry between two local hybrid gangs; the “600/Snail/Taliban,” tied to the Nine Trey Gangster Bloods, and “D.M.G.,” linked to the 52 Hoover Gangster Crips. During the investigation, law enforcement learned that the gang banger stored firearms tied to the gang shootings at a residence in Wilson.

On July 25, 2024, law enforcement officers executed a search warrant at that residence suspected of hiding guns tied to gang‑related shootings. As they moved in, officers confronted Taylor near a side door and immediately detained him. During the search, they found a loaded 9‑millimeter handgun tucked into his waistband and more than 48 pills containing meth in his pocket.

“This sentencing underscores the FBI’s unwavering commitment to safeguarding the public and dismantling the violent criminal networks that undermine community safety. Gang-related violence remains a significant driver of violent crime nationwide, with federal assessments showing that criminal gangs are responsible for a substantial share of shootings and gun trafficking activity across the United States. Through close coordination with our law enforcement partners, we will continue to disrupt the organizations that fuel this violence, remove illegally possessed firearms from our streets, and ensure that individuals who traffic in narcotics and weapons are held fully accountable under federal law," said Reid Davis, the FBI Special Agent in Charge in North Carolina. 

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. 

W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The FBI’s Raleigh Durham Safe Streets Task Force and the Wilson Police Department investigated the case.

A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-cr-00325-FL.

The Justice Department’s Civil Rights Division announced today its finding that the University of California, San Francisco School of Medicine (UCSF Medical School) discriminated based on race in granting and denying admission to its 2023-2025 incoming classes. UCSF Medical School’s discriminatory conduct violated Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, and the U.S. Supreme Court’s 2023 decision in Students for Fair Admissions v. Harvard (SFFA), which banned race discrimination in higher education.

“Unfortunately, at UCSF Medical School, MCAT scores and undergraduate GPAs have taken a backseat to race,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Aspiring doctors should be admitted based on their qualifications. The Supreme Court has spoken clearly — federally funded medical schools may not admit students based on misguided and illegal notions of diversity.”

UCSF Medical School’s application process has three stages: the Primary Application, the Secondary Application, and the interview. The Department’s investigation found that race is used to determine which students will advance from one stage to the next, and ultimately be admitted. The Primary and Secondary Applications prompt applicants to identify and discuss their race. And while less than 10% of Secondary Applications advance to the interview stage, black and Hispanic applicants were invited to interview at far higher rates than white and Asian applicants, despite having lower MCAT scores and undergraduate GPAs.

From 2023-2025, UCSF Medical School admitted black and Hispanic applicants who academically underperformed the average rejected white and Asian student. But even where MCAT score, undergraduate GPA, and socioeconomic traits were the same when compared to white applicants, UCSF Medical School was 4.6 times more likely to admit Hispanic applicants and 12.6 times more likely to admit black applicants. When compared to Asian applicants, black and Hispanic applicants had similarly higher chances of admission.

Medical schools receive substantial federal financial assistance and are subject to federal non-discrimination laws. The Department will continue to investigate their compliance with Title VI, as interpreted by SFFA’s prohibition on race-conscious admissions. Where a violation has been found, the Department is engaging in settlement negotiations to ensure the school’s admissions practices are brought into compliance. If those efforts fail, the Department will file suit.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov.

Note: Read the Department’s Findings Letter here.

The U.S. District Court for the Southern District of Texas yesterday allowed a land exchange to proceed between the Fish and Wildlife Service (FWS) and SpaceX in South Texas. The court denied a preliminary injunction request, finding that the plaintiffs failed to establish an injury in fact to support standing and they failed to establish irreparable harm. 

“This land exchange is a win-win for the American people that achieves significant benefits for conservation and national security,” said Principal Deputy Assistant Attorney General Adam Gustafson of ENRD. “The United States will acquire several hundred acres of high-quality habitat in the Lower Rio Grande Valley National Wildlife Refuge that the Fish and Wildlife Service seeks to protect, and SpaceX will acquire land with a lower biological value that will help it achieve its mission for NASA and the Air Force.”

Attorneys in ENRD’s Natural Resources Section handled this matter.

LAFAYETTE-On September 21, 2026, and September 24, 2026, the U.S. Attorney’s Office for the Western District of Louisiana will host the 2026 Louisiana Law Enforcement Gun Crime Summit in both Shreveport and Lafayette. The event is designed  to strengthen collaboration and effectiveness among federal, state, and local law enforcement agencies in the critical effort to combat illegal gun possession and gun crime throughout Louisiana.

U.S. Attorney Zachary A. Keller will address attendees with remarks addressing the “Benefits of Federal Prosecution: What to Expect from the U.S. Attorney’s Office.” His remarks will highlight how federal investigative and prosecutorial tools can support and enhance local and state efforts to reduce gun violence. 

The summit will also feature addresses by Assistant U.S. Attorneys and law enforcement leaders addressing prosecution challenges and remedies. Attendees will participate in workshops and focus groups discussing investigative protocols, best practices, information‑sharing strategies, and coordinated approaches in the quest to keep Louisiana communities safe.

Training seminars will include “Drafting Affidavits and Inclusive Report Writing,” “Fourth Amendment Refresher: Traffic Stops & Seizure of Evidence,” “Suppression Hearings & Trial Testimony,” “Highway Interdiction,” and “Investigation, Evidence Handling, Documentation, and Testimony in Firearms Cases.”   

Shreveport:  Date: Monday, September 21, 2026
Time: 9:30 a.m. – 4:30 p.m.
Location: LSUS Shreveport Auditorium
One University Place
Shreveport, LA 71115

Lafayette: Date: Thursday, September 24, 2026
Time: 9:30 a.m. – 4:30 p.m.
Location: Lafayette Parish Sheriff's Office
Public Safety Complex, Building 2
1825 W. Willow Street
Lafayette, LA 70583

###

CONTACT: Public Affairs: [email protected]
United States Attorney’s Office: www.justice.gov/usao-wdla
X: @USAO_WDLA
Facebook: USAO_WDLA
(337) 262-6704

NEW BERN, N.C. – A federal judge sentenced Kenji Chiba Jerkins, 31, to over 10 years in federal prison for conspiring to distribute and possessing with intent to distribute large quantities of meth in Lenoir County. Jerkins pled guilty to these crimes on June 18, 2026.

“Once again we have caught and federally prosecuted a Big Shark Bad Boy who will no longer push his poisonous product in Eastern North Carolina to pad his pockets,” said U.S. Attorney Ellis Boyle. “Despite trying to outrun and dump his illegal drugs, he soon discovered the long arm of the law always wins. He will now sit behind the cold bars of steel for over a decade. Simple Lesson: Drugs Kill, Prison Awaits – Do Right.” 

During a joint narcotics investigation, the DEA and the Lenoir County Sheriff’s Office identified Jerkins as a major meth dealer in Lenoir County. On August 11, 2025, law enforcement tried to stop a vehicle in which he was a passenger, but the driver refused to pull over. A high‑speed chase ensued. Officers saw Jerkins throw large amounts of meth out the passenger window before the vehicle crashed into a tree in a local citizen’s yard. Jerkins tried to run from the scene, but officers quickly caught him. After searching the vehicle and the chase path, officers recovered 292 grams of crystal meth, two torn bags containing meth, and 1 gram of marijuana. Jerkins has a long record of criminal convictions and repeatedly violated the terms of his probation and supervised release from prior state convictions.

“This defendant was held accountable for distributing and possessing with the intent to distribute significant quantities of methamphetamine,” said Michael J. Connolly, Acting Special Agent in Charge of the DEA Atlanta Field Division. “That outcome would not have been possible without the commitment and cooperation of our law enforcement partners. Together, we followed the evidence, built the case, and ensured this dangerous drug trafficker faced the consequences of his actions.”

“This case is a great example of what can happen when law enforcement agencies work together. The Lenoir County Sheriff Office and our federal partners will continue to go after those who bring dangerous drugs into our community,” said Lenoir County Sheriff, Jackie Rogers. “This defendant made the choice to sell poison, and now he will spend more than a decade paying the price for that choice. Drugs destroy lives, and if you choose to sell them in Lenoir County, we will find you.”

W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The DEA and Lenoir County Sheriff’s Office investigated the case.

A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:26-CR-00003-FL-RN.

The Justice Department has selected seven additional federally recognized Tribes to participate in the continued expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides Tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division.

“The Justice Department is pleased to continue its expansion of the Tribal Access Program, which equips Tribal governments with federal crime data to solve crimes, conduct background checks, and identify wanted predators,” said Acting Deputy Attorney General Trent McCotter.  “These are the tools Tribal governments need to protect and serve their communities, which in turn strengthens the rule of law and public safety for families and children in Indian Country.”

TAP provides training as well as software and biometric/biographic workstations to process fingerprints, take mugshots, and submit information to FBI CJIS systems.

The Justice Department began TAP in 2015 in response to concerns raised by Tribal leaders about the need to have direct access to federal systems. Using TAP, Tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; entered orders that prevent dangerous prohibited persons from obtaining firearms; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.

“The Tribal Access Program has been an immense support to our work serving the members of the Salt River Pima-Maricopa Indian Community,” said Adrienne Haines, Salt River Pima-Maricopa Indian Community, Social Services Program Manager. “It has allowed us to efficiently process fingerprints and obtain important background information regarding potential caregivers in a timely manner, which helps us provide safe and responsive services to our families. The system is easy to use, reliable, and fits well into our daily work processes. Having minimal delays in receiving background information has greatly improved our department’s efficiency and ability to make informed decisions quickly. Overall, the Tribal Access Program has been a valuable resource for our team and has positively impacted the work we do for our community.”

The following additional Tribes have been selected for participation in TAP:

1. Cahuilla Band of Indians (California)
2. Houlton Band of Maliseet Indians (Maine)
3. Kickapoo Tribe of Oklahoma (Oklahoma)
4. Leech Lake Band of Ojibwe (Minnesota)
5. Pechanga Band of Indians (California)
6. Shoshone-Paiute Tribes of the Duck Valley Reservation (Nevada & Idaho)
7. Twenty-Nine Palms Band of Mission Indians of California (California)

TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).

For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.

Today, the Department of Justice’s Office of Legal Counsel released a legal opinion concluding that the federal prohibition may not be enforced against licensed dealers selling handguns to otherwise law-abiding adults ages 18 to 20 consistent with the Second Amendment.

The Office of Legal Counsel’s new opinion explains that federal statutes 18 U.S.C. § 922(b)(1) and (c)(1) are inconsistent with the Second Amendment as interpreted by the Supreme Court in District of Columbia v. Heller, New York State Rifle & Pistol Ass’n v. Bruen, and subsequent decisions including Wolford v. Lopez. These statutes generally prohibit federally licensed dealers from selling handguns or handgun ammunition to individuals under 21.

The Office of Legal Counsel determined that 18 to 20-year-olds are among “the people” protected by the Second Amendment. “Eighteen-year-olds may vote, serve on juries, be drafted, and face adult criminal penalties, including capital punishment,” said Assistant Attorney General T. Elliot Gaiser for the Department of Justice’s Office of Legal Counsel. "The Constitution protects the people’s right to keep and bear arms. The Department of Justice may not constitutionally seek to impose criminal penalties on dealers who sell handguns to law-abiding adults who, in nearly every other relevant respect, are members of the political community.”

Because the restrictions burden the ability of members of “the people” to acquire commonly used arms, they fall within the Amendment’s plain text and are presumptively unconstitutional. The Office of Legal Counsel found no Founding era history or tradition of precluding legal adults from purchasing firearms to protect public safety. To the contrary, at the Founding, militia statutes overwhelmingly required service beginning at 18 and required enrollees to furnish their own arms.

The Office of Legal Counsel concludes that Section 922(b)(1) and (c)(1) may not be enforced to impose criminal penalties on dealers who sell handguns to a class of law-abiding adults who, in nearly every other relevant respect, are members of the political community.

Read the full opinion here.

RALEIGH N.C. – A federal judge sentenced Linc Oshea Brooks, 56, to over 3 years in federal prison for possession with the intent to distribute cocaine.

“Each day, thousands of men and women courageously put on the badge, kiss goodbye to their families, step into harm’s way, and protect the community from criminal ne'er-do-wells. Unfortunately, a select few choose wrong; breaking the law they swore to enforce,” said U.S. Attorney Ellis Boyle. “This traitor thought he could outsmart the system. Thought the law didn’t apply to him. But instead, he will now sit behind the cold bars of a prison cell and reflect on how treacherously he behaved. Simple Lesson: Drugs Kill; Prison Awaits – Do Right.” 

In early 2022, DEA investigators uncovered Brooks’ connection to a cocaine trafficker in Richmond, Virginia. Later that year, another drug trafficker told agents Brooks had been selling up to 5 kilograms of cocaine at a time since 2021.

Investigators continued building their case, and by January 11, 2023, determined that Brooks would be driving up I‑95 to Roanoke Rapids to deliver 9 ounces of cocaine. Nash County Sheriff’s Deputies spotted him commit several traffic violations and pulled him over. During the stop, a K‑9 alerted to drugs in the car, leading deputies to discover 191 grams of cocaine. Brooks became combative at this point, forcing deputies to restrain him.

Following the arrest, law enforcement continued their investigation by searching Brooks’ home. In a shed on the property, deputies found two digital scales with white residue, plastic baggies, and two guns. Inside the house, they located two additional guns in the master bedroom, along with marijuana.

The DEA investigation also revealed that cooperating witnesses had linked Brooks to large‑scale cocaine trafficking dating back to the early 2000s. Although Brooks retired from the Rocky Mount Police Department in 2006, investigators noted that when deputies arrested him in January 2023, he still carried his police shield and law enforcement ID card; revealing how long he hid his illegal ways had remained hidden behind his tarnished badge.

“Law enforcement officers are entrusted with protecting their communities, not exploiting their positions to facilitate drug trafficking,” said Michael J. Connolly, Acting Special Agent in Charge of the DEA Atlanta Field Division. “When an officer becomes involved in drug trafficking, that conduct not only violates the law, but it also betrays the public trust. Today’s sentence reflects the seriousness of those actions and the commitment of law enforcement to hold accountable anyone who chooses to traffic dangerous drugs.”

"Sheriff Keith Stone extends his sincere gratitude to each agency involved in this investigation for their dedication and hard work. Law enforcement professionals are held to the highest standards in order to provide the level of public service our communities deserve. Mr. Brooks violated that trust by swearing an oath to uphold the law and then engaging in the very criminal activity he was entrusted to prevent. Our mission is to keep our citizens and communities safe from crime. When law enforcement and citizens work together, it enhances the community by reducing illegal narcotics, crime, and provides a safe environment for all. "

W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The DEA, ATF, and Nash County Sherriff’s Office investigated the case.

A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:24-CR-00310-FL.

The Department of Justice is returning approximately $2.5 million in corruption proceeds to the Republic of The Gambia to be used to compensate victims of the Jammeh regime. Yahya Jammeh, the former President of The Gambia, and his wife, Zineb Jammeh, used criminal proceeds and misappropriated Gambian public funds to purchase a mansion in Potomac, Maryland, for their personal use. The Department of Justice forfeited and liquidated that property in United States v. Real Property Located in Potomac, MD, Commonly Known as 9908 Bentcross Drive, 8:20-cv-2071 (D. Md.). As alleged in the complaint, Yahya Jammeh corruptly obtained millions of dollars through the embezzlement of public funds and the solicitation of bribes from businesses seeking to obtain monopoly rights over various sectors of the Gambian economy. Jammeh conspired with his family members and close associates to utilize a host of shell companies and overseas trusts to launder his corrupt proceeds throughout the world. 

“This case is an important example of international cooperation to hold accountable those who use our financial system to attempt to hide illicit criminal proceeds,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Returning these funds forfeited from the former leader to compensate his victims demonstrates our commitment to recover funds taken in violation of the rule of law and to return them for the benefit of victims in a lawful process.”

“Homeland Security Investigations (HSI) remains committed to protecting the integrity of the U.S. financial system by ensuring that corrupt foreign officials cannot use the United States to hide, move, or enjoy the proceeds of bribery, embezzlement, and abuse of office,” said Acting Executive Associate Director John A. Condon of HSI. “This return of approximately $2.5 million to The Gambia demonstrates the impact of HSI’s illicit finance investigations and our enduring partnerships to identify, seize, and return stolen assets for the benefit of victims harmed by corruption.”

The recovered funds from the sale of the mansion in Potomac, Maryland, resulted in the return of $2,507,911.73 in net proceeds to The Gambia based on the valuable assistance of officials of The Gambia in cooperation with the United States, which facilitated the successful forfeiture. The agreement entered into with The Gambia provides that it will use these funds to compensate eligible victims of the Jammeh regime, as defined under the Gambian Victims Reparations Act of 2023, which was established to benefit the people harmed by former President Jammeh’s acts of corruption and abuse of office. 

The investigation was conducted by HSI’s Illicit Proceeds and Foreign Corruption Group in Miami, with the assistance of HSI Baltimore and the HSI Attaché Office in Dakar. HSI established this group in 2003 to conduct investigations into the laundering of proceeds emanating from foreign public corruption, bribery, and embezzlement. HSI’s goal is to prevent foreign-derived, ill-gotten gains from entering the U.S. financial infrastructure.

The case was handled by Trial Attorneys Steven Parker and Kaycee Sullivan of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section. Substantial assistance was provided by the government of The Gambia, the Justice Department’s Office of International Affairs, the U.S. Department of State, and the U.S. Department of the Treasury.  

The Money Laundering, Narcotics and Forfeiture Section's (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

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

HSI Miami Illicit Proceeds and Foreign Corruption Investigations Group was established in 2003 to target corrupt foreign officials around the world that attempt to utilize U.S. financial institutions to launder illicit funds. Since inception, the group has seized over $500 million in ill-gotten gains traced to foreign corruption. To report suspicious activity, reach out to your local HSI office or call 1-866-347-2423.

WASHINGTON – Today, the Department of Justice announced agreements with two of the nation’s largest health care systems—New York University Langone Hospitals (“NYU”) and University of Pittsburgh Medical Center (“UPMC”)—that resolve investigations into potential violations of federal law arising from their provision of sex-rejecting procedures on children, often euphemistically referred to as “gender-affirming care.” Under the agreements, NYU and UPMC will cease providing these dangerous interventions to minors, which include administering puberty blockers and cross-sex hormones and performing surgical procedures. Each hospital will also pay a monetary amount as part of the resolutions, with NYU agreeing to pay $8.5 million and UPMC $950,000.

“The Department of Justice is fighting to protect our nation’s children and working tirelessly to reach agreements with hospitals to end so-called ‘gender affirming care’ for minors,” said Attorney General Todd Blanche. “Today’s resolutions send a clear message: hospitals that target children in these practices and then fraudulently obtain payment for the procedures will be held to account.”

Today’s announcement follows similar agreements with Mount Sinai Health System in New York, Texas Children’s Hospital, the Cleveland Clinic Foundation, and Connecticut Children’s Hospital. In working towards these resolutions, the United States acknowledged that both NYU and UPMC took significant steps entitling them to credit for cooperation with the Department in its investigation, including ongoing cooperation in the Department’s investigation of other entities potentially violating federal law in connection with the provision of sex-rejecting procedures to minors. At all times during the investigation, NYU and UPMC remained cooperative and solutions-driven.

“We appreciate that some of the nation’s largest and most prestigious hospital systems have agreed to cease harming minors under the guise of ‘gender-affirming care’ and agreed to pay for potential violations of federal law when they did so,” said Brett Shumate, Assistant Attorney General for the Civil Division. “But I want to be clear: our efforts and investigations into other providers are ongoing.  Those that have broken the law and not resolved their potential liability will be prosecuted to the fullest extent possible.”

“My office’s foremost priority is protecting children. The resolutions announced today reflect the close collaboration across the Department of Justice and our continued commitment to ensuring that minors are safeguarded,” said Ryan Raybould, US Attorney for the Northern District of Texas. “These investigations are ongoing, and my office will continue to follow the evidence, act decisively when the well-being of minors is at stake, and fully pursue wrongdoers who have broken federal law.”

The resolutions obtained in this matter were the result of a coordinated effort between the Civil Division’s Enforcement and Affirmative Litigation Branch and the Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Northern District of Texas, the U.S. Department of Health and Human Services, Office of Inspector General, and the Food and Drug Administration Office of Criminal Investigations.

In 2025, President Trump directed the Department of Justice to prioritize investigations and enforcement actions involving violations of federal law in the provision of so-called “gender-affirming care” to children. Acting on that directive, the Civil Division launched a nationwide investigation into the child gender-transition industry. The investigation examines potential violations of the Food, Drug, and Cosmetic Act, the False Claims Act, and other federal health care laws, including fraudulent billing practices such as the use of false diagnosis codes to obtain payment from federal health care programs and private insurers. These schemes compound the harm inflicted on vulnerable children by fraudulently shifting the cost of potentially unlawful medical interventions to taxpayers and insurers. Today’s agreements are the results of that nationwide investigation. The Civil Division’s Enforcement & Affirmative Litigation Branch and Commercial Litigation Branch will continue to pursue these cases across the country, stop unlawful conduct, recover funds obtained through fraud, and hold accountable those who profit by violating federal law at children’s expense.

The claims resolved by the United States in these agreements are allegations only, and there has been no determination of liability. NYU and UPMC have expressly denied all allegations.

WASHINGTON -- Today, the Department of Justice announced revisions to the Justice Manual to strengthen its fight against fraud under the False Claims Act through clearer standards that promote fair and effective enforcement. These revisions clarify the limits on the use of sub-regulatory guidance across Department litigation and when the Department will seek dismissal of qui tam actions that do not serve the interests of the United States.

“The Department of Justice should enforce the law, not make law through enforcement,” said Associate Attorney General Stanley E. Woodward, Jr. “These updates reflect the Department’s commitment to fair notice, transparent enforcement, and the rule of law.”

“The Civil Division will continue to focus on cases that advance the interests of the United States,” said Assistant Attorney General Brett A. Shumate. “Evaluating qui tam cases for potential dismissal ensures our enforcement efforts remain aligned with those interests and promotes the efficient use of government resources.”

“The False Claims Act is one of the government’s most powerful tools for combatting fraud,” said Associate Deputy Attorney General Paul Perkins.  “These revisions will help ensure the Department uses its enforcement authority fairly and effectively—holding fraudsters accountable for violations of binding legal or contractual obligations while seeking dismissal of meritless qui tam actions that waste taxpayer resources and impose unjustified burdens on businesses.”

The first revision reinstates and builds upon the Department’s 2017 policy that sub-regulatory guidance cannot impose legal obligations beyond those established by statute or regulation. This revision reflects the Department’s commitment to fair notice and the rule of law—individuals and businesses should be held accountable for violating binding legal obligations, not agency guidance that lacks the force and effect of law. It also ensures that the Department focuses its enforcement resources on violations of those binding obligations.

The second revision makes clear that the Department should consider exercising its dismissal authority when it declines to intervene in a qui tam action and, where it does not seek dismissal, revisit that assessment as appropriate during litigation. The Department will continue to exercise this authority judiciously, with an emphasis on seeking dismissal of qui tam actions that lack legal or factual merit and focusing Department resources on matters that advance the interests of the United States. 

The Justice Manual revisions may be found here and here.

The Department of Justice announced today that it is transferring $29.7 million to Curaçao in three installments. The funds represent the proceeds of an eight-year fraud and money laundering scheme against the government of Curaçao involving the operation of an unlicensed lottery and failure to pay taxes on the income from the lottery and other sources. 

According to court documents, Robertico A. Dos Santos orchestrated the scheme and was prosecuted in Curaçao. At Curaçao’s request, the Criminal Division’s Money Laundering, Narcotics, and Forfeiture Section (MNF) obtained an order from the U.S. District Court for the District of Columbia enforcing a pre-trial restraining order issued by a Curaçao court against the illegal proceeds. Those proceeds were deposited in investment accounts in a Miami bank opened by Dos Santos in the names of companies he controlled. After Dos Santos was convicted and sentenced in Curaçao, at Curaçao’s request, MNF obtained an order from the U.S. court enforcing the final forfeiture order issued by the Curaçao court against the restrained funds. 

According to the transfer document, the forfeited funds are being returned in recognition of Curaçao’s losses and its valuable assistance to the United States, which substantially facilitated the successful forfeiture of the illicit proceeds through the enforcement of Curaçao’s court orders. The return of the funds is also intended to strengthen cooperation between the two countries in the investigation and prosecution of transnational financial crime, money laundering, corruption, human trafficking and other crimes, as well as the forfeiture of criminal proceeds. 

The recovered funds transferred to Curacao will be used over a period of time for various law enforcement purposes. The disposition of the transferred funds will be audited regularly by a non-profit accounting firm in Curaçao and annually by an external auditor. None of the funds may be disbursed to the defendant, Robertico Dos Santos, or his family and any businesses he controls. The transfer terms and the audit reports will be posted on public websites in Curaçao and provided to Curaçao’s Minister of Justice and the United States.   

This case was handled by Senior Trial Attorney Teresa Turner-Jones of MNF. Substantial assistance was provided by the government of Curaçao, the Justice Department’s Office of International Affairs, and the U.S. Department of State.  

Assistant Attorney General A. Tysen Duva of the Department’s Criminal Division made the announcement.

MNF’s mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.

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

A Phoenix woman was sentenced to 14 years in prison in connection with her role in fraudulently billing Arizona’s Medicaid agency more than $69 million in less than one year for addiction treatment therapy. Many of the patients the defendant used to fuel her scheme were Native Americans covered by Arizona Medicaid under a specific program that reimbursed at higher rates than other Medicaid programs. In addition to the prison sentence, the defendant was ordered to pay almost $55 million in restitution, and to forfeit almost $9.5 million in fraud proceeds seized from seven bank accounts she controlled and almost $7 million in real estate properties. 

“The Fraud Division is determined to hold accountable individuals who exploit the Medicaid system and Native American health care programs,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “This sentence sends a clear message — if you take advantage of vulnerable populations to steal from the American taxpayer, you will pay the price.” 

“Ms. Anagho’s scheme manipulated a program that was intended to help Native Americans in Arizona,” said U.S. Attorney Timothy Courchaine for the District of Arizona. “The fourteen-year sentence that she received is a sign of how serious and damaging health care fraud is to our society, and how important it is that we stop individuals who undermine the value of these programs.”

“The FBI will investigate and hold those who target, defraud, and exploit our healthcare programs accountable,” said Special Agent in Charge Rebecca Day of the FBI Phoenix Field Office “We will continue to work with our partners to stop imposters like Ms. Anagho in their tracks and bring them to justice.”

“Medicaid funds exist to support some of our nation’s most vulnerable individuals. Exploiting this program for personal gain steals taxpayer dollars and undermines a critical safety net relied on by millions,” said Acting Deputy Inspector General for Investigations Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG and our law enforcement partners will continue to pursue those who defraud Medicaid and ensure they are held fully accountable.”

According to court documents, Rita Ntusa Anagho, 54, of San Tan Valley, Arizona, owned and operated Tusa Integrated Clinic, LLC (Tusa), an addiction treatment center that fraudulently billed the Arizona Health Care Cost Containment System (AHCCCS) over $69 million from approximately May 2022 through March 2023. AHCCCS paid Tusa approximately $54.9 million based on these false and fraudulent claims.

Anagho, a licensed nurse practitioner, coordinated and carried out this massive health care fraud scheme by exploiting vulnerable substance abuse treatment patients. Anagho enrolled patients whose health care coverage was provided by the AHCCCS in her fraudulent clinic, Tusa. Indeed, Anagho and her co-conspirators deliberately targeted AHCCCS patients who were covered under the American Indian Health Care Program (AIHP) fee-for-service plan available to Native Americans. Anagho and her co-conspirators often deliberately sought such patients because the AIHP provided higher reimbursement rates than other AHCCCS health care plans. Anagho orchestrated this scheme to defraud AHCCCS by submitting false claims for purported addiction treatment services that were either not provided at all or not provided as billed. In addition, Anagho and her co-conspirators paid illegal kickbacks to owners of numerous area sober homes for patients who were referred to her clinic. Anagho and others falsified the treatment notes and records related to the purported addiction treatment services to conceal the scheme. Anagho then laundered the proceeds of her fraud and obstructed the investigation of her crimes by instructing her former employees to create fake medical records when Tusa received a subpoena for documents.

In May 2025, Anagho pleaded guilty to conspiracy to commit wire fraud and health care fraud. 

FBI and HHS-OIG investigated the case. 

Assistant Deputy Chief James V. Hayes and Trial Attorney Sarah Edwards of the Fraud Division’s Health Care Fraud Section and Assistant U.S. Attorney Matthew Williams for the District of Arizona prosecuted the case. Assistant U.S. Attorney Joseph F. Bozdech for the District of Arizona assisted with forfeiture matters.

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

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

The Department of Justice would like to remind the public of federal laws that require individuals to register as foreign agents when they act in the United States at the direction or control of a foreign government or foreign principal, and that they will face civil and criminal liability if they fail to do so. 

The Department recognizes and protects the First Amendment rights of those who seek to express their opinions publicly. The Department will not take action to inhibit anyone’s constitutionally protected right to free speech and free expression. Nor will any decisions be illegitimately influenced by anyone’s political associations, activities, or beliefs.  

At the same time, the Department is committed to upholding the rule of law and keeping our country safe against all enemies, both foreign and domestic. It does so by holding to account those who violate federal law. Two such federal laws — the Foreign Agents Registration Act, known as FARA, and 18 U.S.C. § 951 — impose disclosure or notification obligations when a person acts in the United States as an agent of a foreign principal or foreign government. These obligations aid in stopping foreign governments or their representatives from using undisclosed agents, intermediaries, false affiliations, covert funding, or other deceptive activities to illegally influence public debate, suborn sedition, or interfere with official proceedings. 

Both citizens and noncitizens are reminded that anyone who violates FARA or § 951 may face federal civil or criminal liability. If a person acts as an agent of any foreign power to carry out any public activity, including (but not limited to) public demonstrations designed to further the propaganda or other goals of the foreign power, he or she must register with or notify the appropriate federal authorities. Failure to do so may result in significant civil or criminal sanctions, up to and including a maximum of five years in prison. 

More information about FARA is available from the Department’s FARA Unit. Individuals with questions about potential obligations under FARA or 18 U.S.C. § 951 should consult legal counsel or seek an Advisory Opinion from the Department’s FARA Unit under 28 C.F.R. § 5.2. Members of the public who believe they have information about undisclosed foreign government direction or control may contact the FBI or their local U.S. Attorney’s Office.

Today, the Justice Department filed suit against the City of San Jose, California, and the San Jose Police Department for charging private individuals unreasonable fees to exercise their Second Amendment right to lawfully carry a firearm. At nearly $1,600 per license, the City’s application fee to carry a firearm is the highest in the nation. Indeed, San Jose’s fee towers over those imposed by the country’s biggest cities. New York, Washington, D.C., Boston, and Chicago all charge a small fraction of San Jose’s fee. The Supreme Court has held that “exorbitant fees” such as San Jose’s violate the Second Amendment because they deny ordinary citizens their right to carry firearms for self-defense. 

"All law-abiding Americans have a constitutional right to bear arms for self‑defense. This right is not a luxury reserved for a privileged few, but a fundamental element of our republic,” said Assistant Attorney General Harmeet K. Dhillon. “You don’t need a law degree to recognize that charging a fee several times higher than the cost of the firearm itself is illogical, and an unconstitutional attempt to impede Americans’ Second Amendment rights."

The Civil Rights Division’s Second Amendment Section enforces the Second Amendment, the Police Pattern or Practice Act (34 U.S.C. § 12601), and Executive Order 14206. If you are a current or prospective gun owner and believe that a state or local government has infringed your right to keep or bear arms, please submit a complaint through https://www.justice.gov/crt/second-amendment-section.

The Justice Department’s Antitrust Division won substantial relief in its monopolization case against Google in advertising technology markets. In United States et al. v. Google LLC, the U.S. District Court for the Eastern District of Virginia ordered significant behavioral relief, including requiring close integration between Google’s products and products offered by rivals, including the open-source solutions offered by Prebid. The court ordered further relief that will help to pry open these markets to competition.

“The Court’s ruling in the Google ad tech case marks a significant victory for this Department’s efforts to protect and restore competition,” said Associate Attorney General Stanley E. Woodward Jr. “We will continue to review the opinion to consider the Department’s options. Under President Trump’s and Attorney General Blanche’s leadership, we will never cease fighting for fair competition.”

As a direct result of the work of the Department’s trial team, Google’s executives repeatedly offered new pledges of injunctive relief while on the stand during the remedies trial. This extended after the trial, when Google offered a further-revised proposed final judgment with additional concessions. For example, Google committed that AdWords, its advertiser tool, would not engage in discriminatory bidding to the detriment of both advertisers and publishers. Because of the Department’s efforts during the remedies phase, Google also agreed to broaden the categories of advertising inventory covered by the final judgment, disclose how its black-box advertising auctions work, and provide new technical support and data to its competitors and customers. These actions highlight the strong case the Department put on at trial.

The court’s decision recognizes that it must seek to terminate Google’s monopolies, unfetter the markets from Google’s anticompetitive conduct, ensure that there remain no practices likely to result in monopolization, and deny Google the fruit of its unlawful actions: its monopoly power, scale, and profits.  In so holding, the court rejected Google’s argument that the termination of monopolies is not a proper objective for monopolization cases.

The court confirmed the Department’s position that it is not enough to order Google to cease its prior anticompetitive behavior. The court imposed interoperability and data-sharing requirements, anti-discrimination remedies, and prohibitions on Google’s self-preferencing bidding behavior. This ruling underscores the need for antitrust remedies to be forward-looking and comprehensive, and it reiterates that remedies can include conditions on products beyond the monopolized product markets. In addition to prohibiting Google’s past anticompetitive conduct, the court ordered the following relief:

• Required Integrations with Prebid and Competing Publisher Ad Servers. The court recognized the importance of injecting new competition and breaking Google’s unlawful tie between AdX and DFP. Google must create and support integrations between AdX and Prebid, and DFP and Prebid. Prebid is an open-source industry standard for real-time bidding. In addition, AdX will be required to submit real-time bids to other publisher ad servers. These integrations will give publishers more control over the sale of their inventory and offer access to important, unique demand without publishers being forced to use both DFP and AdX.
• Data Sharing. The court also imposed meaningful data-sharing requirements on Google. Google will be required to allow publishers to access and export their own data from DFP and AdX, which will make it easier for publishers to switch ad tech providers.
• AdWords Must Bid in Non-Discriminatory Fashion. The court recognized the importance of AdWords to Google’s unlawful scheme. The court rejected Google’s arguments that remedies could not touch AdWords, Google’s “golden goose,” and ordered that AdWords cannot bid preferentially into AdX or other Google ad tech tools because of Google’s ownership of those tools. AdWords also cannot bid directly into DFP.
• Monitor. A monitor will be put in place to facilitate enforcement of Google’s compliance with the Final Judgment. Google will be subject to the oversight of this monitor and a technical committee for six years, the length of the Final Judgment.

The Department continues to review the court’s opinion and will determine appropriate next steps to ensure that competition is restored to these markets that Google has unlawfully dominated for far too long.

A federal grand jury in the Eastern District of Michigan returned an indictment charging Emory Matthews, 62, of Farmington Hills, Michigan, with conspiring to bill Medicare for psychotherapy services that were never provided to patients of an adult day care center owned by his wife. He was arrested yesterday. 

According to court documents and evidence presented in court, Emory Matthews was a managing employee and administrator of New Beginnings Adult Center Inc. (New Beginnings), an adult day care center in Detroit depicted below:

Matthews was previously convicted of soliciting and receiving illegal health care kickbacks and bribes stemming from his earlier operation of the adult day care center. As a result of that conviction, he was excluded from billing Medicare. 

As alleged in the indictment, Matthews and his wife, Yolanda Matthews:

• Submitted false and fraudulent claims for individual and group psychotherapy services that were not provided; 
• Billed Medicare for services purportedly provided to beneficiaries at New Beginnings when in fact those beneficiaries were hospitalized at the time and could not have received the services; 
• Billed Medicare for services purportedly provided to beneficiaries at New Beginnings when those beneficiaries were deceased;
• Used the names of former employees on false claims submitted to Medicare; and
• Fraudulently concealed Matthews’ exclusion from Medicare by failing to disclose his role as a managing employee of New Beginnings as required by the rules. 

From January 2020 through June 2025, Matthews allegedly participated in submitting over $4.75 million in false and fraudulent claims to Medicare. 

Yolanda Matthews pleaded guilty to one count of Conspiracy to Commit Health Care Fraud on July 27. 

Emory Matthews is charged with conspiracy to commit health care fraud and three counts of health care fraud. If convicted, he faces a maximum penalty of 10 years in prison on each count.

Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Special Agent in Charge Jennifer Runyan of the FBI Detroit Field Office; and Special Agent in Charge Thomas Ethridge of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI Detroit Field Office and HHS-OIG investigated the case.

Trial Attorney Jeffrey A. Crapko of the Fraud Division’s Health Care Fraud Section is prosecuting the case.

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

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

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

This week the U.S. Department of Justice, Civil Rights Division (DOJ) and the U.S. Department of Health and Human Services (HHS), Office for Civil Rights entered a voluntary settlement agreement with Lincoln Memorial University (LMU) to end discrimination against its Jewish students. The settlement agreement resolves the joint investigation conducted under Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, or national origin, and Section 1557 of the Patient Protection and Affordable Care Act.

“Students of all ethnic and religious backgrounds — including Jewish students — should receive the same treatment at our nation’s universities,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “As its Jewish students prepare this week to observe Yom Kippur, we commend Lincoln Memorial University for its swift action addressing the Department’s concerns regarding discrimination and unequal treatment.”

“HHS’ Office for Civil Rights is committed to eliminating antisemitism and religious discrimination—a commitment we underscored earlier this month by issuing guidance on discrimination rooted in antisemitism to entities that receive HHS funding,” said Director Paula M. Stannard of the HHS Office for Civil Rights. “Our nation’s future healthcare professionals should be able to pursue their training without compromising their faith or their civil rights. Through our joint action with the Department of Justice, Lincoln Memorial University is ending practices that penalized Jewish students and will establish clear protections for religious accommodations moving forward.”

The joint investigation revealed that during the 2025-26 school year, LMU’s DeBusk College of Osteopathic Medicine (LMU-DCOM) denied requests by Jewish students to reschedule classes, exams, and other academic assignments so they could celebrate or observe their religious holidays, but granted requests by non-Jewish students who sought the same accommodations. In January 2026 — after Jewish students challenged LMU-DCOM’s double standard — DCOM adopted a policy that it would not accommodate any religious observance requests, but would permit excused absences for “professional student leadership obligations” and other non-religious reasons. In February 2026, DOJ and HHS opened their joint investigation.

Under the settlement agreement, LMU-DCOM will revise its absence policy to allow excused absences for religious reasons on the same basis as non-religious reasons. When an excused absence is approved, the student will not suffer any penalties because of the absence. LMU-DCOM will also educate students, administrators, professors, faculty, and staff regarding the revised absence policy. Finally, LMU will reverse all penalties previously imposed on Jewish students who were wrongly denied religious accommodations during the 2025-26 school year.

Because of LMU’s cooperation, LMU will remain eligible for federal funding. The Civil Rights Division will close the investigation once LMU has completed its commitments under the settlement agreement.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov.

Scott Keith Baldwin Jr., 58, a dual resident of San Jose, California, and Reston, Virginia, pleaded guilty today to conspiracy to distribute child sexual abuse material (CSAM). 

According to court documents, Baldwin Jr. was an active member of an invite-only online group on an encrypted messaging platform dedicated to sharing live links and files of CSAM. Around July 2024, following an online investigation into the group where law enforcement agents identified Baldwin as a member, agents executed a residential search warrant at Baldwin’s home in San Jose. A hard drive seized from this residence was found to contain images and videos from over 150 known child exploitation series, including images of prepubescent minors.

Baldwin pleaded guilty to conspiracy to distribute CSAM. Sentencing is set for Jan. 12, 2027. Baldwin faces a minimum penalty of five years in prison and a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division; U.S. Attorney Craig H. Missakian for the Northern District of California; and FBI Assistant Director Heith Janke of the FBI’s Criminal Investigative Division made the announcement.

Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Marissa Harris for the Northern District of California are prosecuting the case. 

The FBI’s Child Exploitation Operational Unit investigated the case, with substantial assistance from both the FBI Washington, D.C. and San Francisco Field Offices. 

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.

Yesterday, The U.S. District Court for the District of Alaska rejected a challenge to a Clean Water Act permit issued by the U.S. Army Corps of Engineers for the Johnson Tract mineral exploration project in South Central Alaska. The court granted summary judgment to the United States on every claim and left the permit in place. The permit allows JT Mining to build an access road and upgrade an existing airstrip serving an exploratory drilling site on private land the company owns inside Lake Clark National Park.

“This decision protects responsible mineral exploration on private land,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “The court’s decision reaffirms that federal agencies are entitled to deference when they make scientific and predictive judgments, and it keeps an important Alaska project moving forward.”

The Johnson Tract is a 20,942-acre private inholding at the headwaters of the Johnson River. JT Mining applied for a Section 404 permit in 2023 to build access to an upland exploratory drilling site. The Corps solicited and reviewed public comment, consulted several Alaska Native Tribes, and issued the permit in September 2024. The permit authorizes the discharge of 67,800 cubic yards of general embankment fill and 5,200 cubic yards of surfacing material into 5.14 acres of waters of the United States to construct a 2.3-mile access road and to realign and expand the existing airstrip to 5,000 feet. Fill will be sourced locally from material sites located in uplands, avoiding wetland and stream fill.

Plaintiffs argued principally that the Corps violated Section 7 of the Endangered Species Act by defining the action area too narrowly and declining to consult with the National Marine Fisheries Service about the endangered Cook Inlet beluga whale. The whale’s designated critical habitat includes Tuxedni Bay, roughly ten miles east of the project area.

The court rejected that claim. It held the Corps reasonably defined the action area to reach the project footprint, a 300-foot buffer marking the outer limit of detectable noise disturbance, and three miles of downstream aquatic environment, and that the agency gave a reasoned explanation for those boundaries. The court noted that the permit authorizes the discharge of fill, not flights, and that it conveys no right to fly aircraft over Tuxedni Bay; air traffic over the national park is regulated by the National Park Service. The court further held the Corps acted reasonably in treating a future mine, and any flights a mine might generate, as speculative. Because no listed species or critical habitat is present in the action area, no consultation was required.

The court likewise upheld the Corps’ work under the National Environmental Policy Act (NEPA) and the Clean Water Act, rejecting arguments that the agency failed to verify the applicant’s acid rock drainage and metals leaching data and failed to resolve uncertainty about jurisdictional waters at the material sites. Quoting the Supreme Court’s decision in Seven County Infrastructure Coalition v. Eagle County, the court reiterated that “[t]he bedrock principle of judicial review in NEPA cases can be stated in a word: Deference.”

Trial attorneys from ENRD's Wildlife and Marine Resources Section, Natural Resources Section, and Environmental Defense Section handled this matter, with support from the U.S. Attorney's Office for the District of Alaska.

Today, the Justice Department’s National Fraud Enforcement Division along with the Small Business Administration (SBA) and the SBA Office of Inspector General, as part of a Heartland Fraud Surge announced the results of Operation No Doze, a surge of criminal enforcement actions targeting fraud in SBA’s small business COVID-era loan programs.

During the summer surge between June 12 and Sept. 1, SBA-OIG and federal prosecutors in the Fraud Division and across over 40 U.S. Attorney’s Offices, with assistance from various partners, obtained felony charges against nearly 80 fraud defendants responsible for approximately $100 million dollars in intended loss to the United States. These charges target a range of individuals who allegedly exploited COVID-era SBA loan programs at the height of the pandemic.

Beyond newly charged defendants, as part of Operation No Doze, approximately 43 defendants pleaded guilty to SBA-related COVID fraud, reaching approximately $44 million in intended loss.  And approximately 40 defendants were sentenced for SBA-related COVID fraud, reaching nearly $100 million in intended loss.

Together, this targeted surge resulted in fraud enforcement actions spanning over 160 criminal defendants and involved approximately $245 million dollars in intended loss to American taxpayers.

Operation No Doze is a direct result of President Donald J. Trump’s creation of the National Fraud Enforcement Division at the DOJ, the first new division in the DOJ in twenty years.

“Pandemic loan relief was meant to keep American small businesses alive during government lockdowns—not line the pockets of fraudsters,” said Attorney General Todd Blanche. “The defendants charged during our summer surge allegedly fabricated businesses, submitted false payroll and revenue claims, stole identities, and concealed foreign ties on their applications— but they will now be prosecuted to the fullest extent of the law.”

“This summer surge shows what is possible when dedicated public servants across the country work together with a single purpose,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “Our mission is clear: protect taxpayer funds, safeguard the integrity of federal relief programs, and deliver justice to those who exploited them. We will remain steadfast every day—standing shoulder‑to‑shoulder with our partners—to identify fraud, pursue those responsible, and restore confidence in the programs meant to help American small businesses thrive.”

“Today’s announcement represents the largest-ever action against perpetrators of SBA fraud, with 870,000 suspended borrowers tied to $39 billion in suspected fraudulent PPP and COVID EIDL activity. In partnership with Vice President Vance and the White House Task Force to Eliminate Fraud,  we’re putting fraudsters on notice: the federal government will no longer turn a blind eye to those who stole from taxpayers and exploited programs designed to sustain small businesses during the pandemic,” said SBA Administrator Kelly Loeffler. “With demand letters going out to suspected fraudsters, we’re also sending a clear message that they must repay their debts or face Treasury collections and possible federal law enforcement. Under this Administration, the free ride is over. We are restoring accountability, recovering taxpayer dollars, and protecting SBA programs for the legitimate small businesses they were created to serve.”

“Operation No Doze brings a focused and coordinated approach to pursuing fraud in SBA’s pandemic relief programs,” said SBA Inspector General William Kirk. “By concentrating our investigative resources and working closely with SBA and our law enforcement partners, we are strengthening our ability to identify fraud, recover taxpayer funds, and hold accountable those who exploited programs created to help small businesses in a time of extraordinary need. This initiative makes clear that the passage of time does not diminish our commitment to accountability.”

“We are proud to stand with our federal and state partners in rooting out criminal activity of all kinds, especially defrauding the public,” said Missouri Governor Mike Kehoe. “Fraud is not a victimless crime. Every dollar stolen is a dollar taken from hardworking taxpayers or from someone who depends on the programs those dollars are meant to support. In Missouri, we will continue working at every level to hold fraudsters accountable and protect those they seek to exploit.”

Federal and State Partners Participating in Operation No Doze

U.S. Attorney Partners:

Central District of California, District of Kansas, District of Idaho, District of Maryland, District of Massachusetts, District of Montana, District of New Mexico,  District of Oregon, District of Rhode Island, Eastern District of California, Eastern District of Kentucky, Eastern District of Louisiana, Eastern District of Michigan, Eastern District of Missouri, Eastern District of New York, Eastern District of Texas, Eastern District of Virginia, Eastern District of Wisconsin, Middle District of Florida, Middle District of Louisiana, Northern District of California, Northern District of Florida, Northern District of Illinois, Northern District of Indiana, Northern District of Iowa, Northern District of Ohio, Northern District of Texas, Northern District of West Virginia, Southern District of Alabama, Southern District of California, Southern District of Florida, Southern District of Indiana, Southern District of Ohio, Southern District of West Virginia, Western District of Kentucky, Western District of Michigan, Western District of Missouri, Western District of New York, Western District of North Carolina, Western District of Oklahoma, Western District of Pennsylvania, Western District of Tennessee, Western District of Texas, Western District of Washington.

Federal and State Investigative Partners:

Amtrak, Office of Inspector General; City of Jacksonville, Office of Inspector General; Department of Homeland Security, Office of Inspector General; Department of Labor, Office of Inspector General; Department of Justice, Office of Inspector General; Export-Import Bank of the United States; FBI; Federal Deposit Insurance Corporation, Office of Inspector General; Federal Housing Finance Agency, Office of Inspector General; Federal Housing Administration; Board of Governors of the Federal Reserve System, Office of Inspector General; HSI; Department of Housing and Urban Development, Office of Inspector General; Internal Revenue Service, Criminal Investigation; National Science Foundation, Office of Inspector General; Small Business Administration, Office of Inspector General; Social Security Administration; Treasury Inspector General for Tax Administration; U.S. Agency for International Development, Office of Inspector General; U.S. Postal Service, Office of Inspector General; U.S. Secret Service; Department of Veterans Affairs, Office of Inspector General; West Virginia State Police; Tampa Police Department.

Heartland Fraud Partnership Summit: In tandem with the results of Operation No Doze, the Fraud Division announced three new federal-state cooperation agreements with the Missouri Secretary of State, Nebraska Treasurer, and Kansas Treasurer to strengthen ongoing fraud enforcement efforts. On September 14, 2026, over twenty-five federal and state officials gathered for the Heartland Partnership Fraud Summit in Kansas City, Missouri, including representatives from 6 U.S. Attorney’s Offices, 3 State Attorneys General Offices, 3 State Financial Offices, 3 Secretaries of State, 3 federal law enforcement partners, and 2 Members of Congress.

Federal and State Partners at the 2026 Heartland Fraud Partnership Summit

U.S. Attorney Partners:

U.S. Attorneys Office Partners (In-Person Attendance):

U.S. Attorney for the Western District of Missouri Matthew Price

U.S. Attorney for the Eastern District of Missouri Thomas Albus

U.S. Attorney for District of Nebraska Lesley Woods

U.S. Attorney for the Northern District of Iowa Leif Olson

U.S. Attorney for the Southern District of Iowa David Waterman

U.S. Attorney for the District of Kansas Ryan Kriegshauser

State Partners:

Iowa: Iowa Secretary of State Paul Pate

Kansas: Kansas Attorney General Kris Kobach, Kansas Secretary of State Scott Schwab

Nebraska: Nebraska Attorney General Mike Hilgers, Nebraska Auditor Mike Foley, Nebraska Treasurer Joey Spellerberg

Missouri: Missouri Governor Mike Kehoe, Missouri Attorney General Catherine Hanaway, Missouri Secretary of State Denny Hoskins, Missouri State Auditor Scott Fitzpatrick, and Missouri Department of Social Services Jessica Bax

United States Congressional Representation:

Senator Eric Schmitt (R-MO) and Congressman Mark Alford (R-MO)

These partnerships and actions demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide. The Department encourages every state across the country to partner with the Fraud Division on similar efforts.

Notable Cases (Intended Loss Figures)

1.) United States v. Jamie Gray (Indictment) – $55,931,875 – Western District of Missouri

Jamie Gray is charged with wire fraud and money laundering. According to the indictment, Gray submitted Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications claiming to own dozens of businesses that were operating before the COVID-19 pandemic. In every instance but one, the businesses Gray allegedly claimed to own were not in operation on or before February 15, 2020 (eligibility deadline). The only claimed business that actually existed was “Fur Lives Matter,” a Texas company that allegedly had no knowledge of Gray. The indictment alleges that Gray’s representations regarding ownership, employees, gross revenue, and business operations were entirely fabricated.

Prosecuted by Assistant U.S. Attorney Patrick Carney for the Western District of Missouri. District Fraud Counsel AOR: Assistant U.S. Attorney Randy Eggert for the Western District of Missouri.

2.) United States v. Adrian Pupo Perez et al. (Indictment) – $2,400,000 – Northern District of Iowa

On July 9, 2026, a grand jury in Cedar Rapids, Iowa, charged Adrian Rafael Pupo Perez and Helen Yaima Leyva Santiesteban with 47 counts of wire fraud, money laundering, and conspiracy. Beginning in July 2020, Pupo Perez, Leyva Santiesteban, and more than 100 other individuals originally from Cuba allegedly sought fraudulent PPP loans and EIDLs by falsely claiming they were self-employed, among other allegedly false representations. The co-conspirators allegedly submitted approximately 470 fraudulent PPP loan applications in the names of more than 100 individuals across the United States. They allegedly fraudulently sought more than $4.5 million in PPP funds, with approximately $2.4 million disbursed. Pupo Perez and Leyva Santiesteban are fugitives at this time.

Prosecuted by District Fraud Counsel Assistant U.S. Attorney Timothy L. Vavricek for the Northern District of Iowa.

3. United States v. Pu Wang and Rui Li (Indictment) – $102,397 – Northern District of Indiana

Pu Wang and Rui Li are charged with fraudulently obtaining federal grant funds for their company, Vibronix, by falsely representing that the company had no Chinese affiliates and by certifying that the funded work was performed in the United States when most of the work was allegedly performed in China. In addition to allegedly defrauding the Small Business Innovation Research federal grant program, Wang also allegedly certified in PPP loan applications that all covered employees had their primary residence in the United States. Wang was himself a covered employee and, according to the allegations, lived in China during the relevant period. Wang further allegedly certified that none of Vibronix’s board members were residents of the People’s Republic of China. Public SEC filings identified Wang as a Vibronix board member who was known to live in China at the time of the application for federal funds.

According to the indictment, Wang had received an award in 2014 sponsored by the PRC to encourage Chinese citizens who study in the United States to return to China.

Prosecuted by Assistant U.S. Attorney Francis Sohn for the Northern District of Indiana. District Fraud Counsel AOR: Assistant U.S. Attorney Steven Lupa Northern District of Indiana. 

4. United States v. Eve Zou (Information) – $319,800 – Western District of Texas

Eve Zou is charged with making false and fraudulent representations to the U.S. Small Business Administration to obtain EIDL funds and grants purportedly for legitimate business purposes. At the time of the charged offense, Zou was an employee of the Texas Department of Family and Protective Services, a state agency designed to protect children, the elderly, and adults in Texas with disabilities from abuse, neglect, and exploitation.

The information alleges that Zou instead used EIDL proceeds for personal benefit, including the purchase of real estate in Austin, Texas and investments in brokerage accounts. Zou also allegedly made multiple false statements in the applications, including using her daughter’s identity without her daughter’s knowledge or permission, falsely claiming to have 50 employees, and falsely claiming lost rental income. Zou allegedly obtained three SBA loans totaling $319,800.

Zou has agreed to plead guilty to the charges against her. Zou also agreed to forfeiture of all assets purchased with the fraud proceeds, which have grown in value.  As a result, the government intends to recoup more than Zou stole.

Prosecuted by Assistant U.S. Attorney Brandy Gann for the Western District of Texas. District Fraud Counsel AOR: Assistant U.S. Attorney Justin Chung for the Western District of Texas.

5. United States v. Melissa Fireside (Indictment) — $1,573,350 – District of Oregon

Melissa Fireside, a former Clackamas County Commissioner, allegedly attempted to fraudulently obtain approximately $1.6 million in PPP and EIDL funds associated with her claimed businesses. The State of Oregon has charged Fireside with eight felony counts — including first-degree forgery, first-degree aggravated theft, computer crimes, and identity theft.

Fireside was charged in the District of Oregon with two counts of wire fraud. According to prosecutors, Fireside submitted an EIDL application using the identity of another person, G.F., without G.F.’s authorization. Fireside was alleged to be G.F.’s caregiver and manager of G.F.’s finances. Fireside allegedly also submitted a fraudulent PPP application supported by fabricated tax documents and bank records, falsely represented that the business was operating and had employees and substantial revenues, and then diverted the loan proceeds for her personal use. Fireside is believed to have fled the country and remains an international fugitive subject to an INTERPOL Red Notice in connection with the federal charges.

Prosecuted by Assistant U.S. Attorney Geoffrey A. Barrow for the District of Oregon. District Fraud Counsel AOR: Assistant U.S. Attorney Nick Meyers for the District of Oregon.

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

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

Accenture Federal Services (AFS), Accenture plc, and Accenture LLP (Accenture) have agreed to pay the United States $25 million to resolve alleged violations of the False Claims Act for failing to comply with anti-discrimination requirements in federal contracts and discriminating against employees and applicants for employment because of race or sex.

Most federal contracts contain a provision that requires contractors to provide equal opportunity to employees and applicants for employment. As a condition to being a federal contractor, the company must certify that it will not discriminate against an employee or applicant for employment because of race or sex and must further certify that it will take steps to ensure that applicants are employed, and employees are treated during employment, “without regard to” race or sex. The settlement resolves allegations that from 2017 to the present, AFS falsely certified compliance with these conditions, while engaging in discriminatory employment practices.

“Opportunity and promotion in the workplace must be earned through merit,” said Associate Attorney General Stanley E. Woodward Jr. “Today’s resolution makes unmistakably clear that the Department will continue to aggressively pursue unconstitutional discriminatory employment practices.”

“Federal contractors have a straightforward obligation: make employment decisions without regard to race or sex,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “A company cannot take taxpayer dollars, certify that it is following that simple principle, and then use race or sex as a factor in deciding who gets an opportunity.”   

The United States alleged that AFS took race or sex into account when making hiring decisions to achieve progress toward non-public workforce composition goals. Business unit leaders within AFS received monthly summaries of the specific percentage of each race and sex within the unit, with the figures highlighted green, yellow, or red to indicate whether representation was at or exceeded AFS’ goal, was within 5 percent of AFS’ goal, or was below 5 percent of AFS’ goal, respectively. These demographic goals were designed to, and did, drive changes in hiring practices based on race and sex. For example, at the end of 2020 and beginning of 2021, AFS engaged in a round of entry level employee hiring to make further progress towards the company’s racial representation goals.   

The United States further alleged that AFS took race or sex into account when making promotion decisions. For example, when considering managing director promotions, AFS conducted a separate discussion of candidates who furthered AFS’ race or sex demographic goals to ensure that these candidates received extra visibility with AFS leaders responsible for making promotion decisions. AFS also highlighted in color the names of candidates who furthered the company’s demographic goals to distinguish them from other candidates during the promotion review process and developed a separate “pipeline” of potential promotion candidates who would advance AFS’ demographic goals.

Finally, the United States alleged that AFS offered certain training, mentoring, leadership development programs, and educational opportunities where eligibility for these resources was limited by race or sex. For example, from August 2022 to February 2025, AFS ran the Amplify to Elevate training program, which reserved participation for employees based on race and was designed to boost the career prospects of these employees over others through mentorship and networking. 

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

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of Illinois.

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

Abbott Laboratories (Abbott), an Illinois-based healthcare company that manufactures and sells infant formula and nutritional therapy products, has agreed to pay $384,999,040 to resolve allegations that it caused false claims to be submitted between Jan. 1, 2018, and Dec. 31, 2022, to federal and state programs arising from its failure to manufacture certain powder infant formula and nutritional therapy products at its Sturgis, Michigan, and Casa Grande, Arizona, facilities in compliance with federal and state statutory, regulatory, and contractual requirements.

On Nov. 13, 2025, the United States filed its Complaint in Intervention alleging that Abbott caused government programs to purchase powder infant formula manufactured at the Sturgis facility despite the products’ failure to meet statutory, regulatory, and contractual requirements. The Complaint alleged that Abbott knowingly manufactured infant formula purchased with taxpayer dollars in an environment that put the products at unacceptable risk of microorganism contamination and significantly impacted the products’ reliability, quality, and safety.

“Today’s settlement is a victory for American families and makes clear the safety of our children is not negotiable,” said Acting Deputy Attorney General Trent McCotter.  “Abbott will pay a substantial sum to resolve serious allegations it violated federal health and safety requirements designed to protect babies. The Justice Department will act decisively against anyone who puts American families at risk and ensure misconduct carries serious consequences.”

“No company should be gambling on the health and safety of our Nation’s infants by allowing unsanitary conditions to persist at a facility manufacturing baby formula,” said Associate Attorney General Stanley E. Woodward, Jr. “The Department will hold accountable bad actors that knowingly misrepresent compliance with essential health and safety standards designed to protect American families.”

 “It is critical that infant formula manufacturers adhere to regulatory and contractual requirements to ensure that the products they manufacture are safe for the babies who consume them,” said U.S. Attorney Timothy VerHey for the Western District of Michigan. “This settlement demonstrates our commitment to holding manufacturers accountable when the United States pays for noncompliant products.”

“Parents rely on companies like Abbott Laboratories to responsibly follow the rules and ensure their products – especially baby formula – are safe. USDA OIG remains vigilant against those that would compromise public health and safety by failing to comply with legal standards and put infants at risk,” said USDA Inspector General John Walk.  “This behavior is inexcusable and will not be condoned.”

As described in the complaint, roof leaks were a common occurrence in the Sturgis plant, leading to water running and dripping over equipment. Rather than permanently addressing the root causes, Abbott used temporary solutions, such as roof leak umbrellas, to try to divert leaks in product processing areas even though Abbott corporate leadership understood that the wet environment put the products at increased risk of microorganism contamination.  Similarly, the complaint alleged that Abbott continued to run spray dryers, where liquid formula was transformed into a dry powder, even after Abbott documented cracks and pits in the dryers, which also increased the risk of “micro” contamination, particularly in the presence of moisture. 

Further, the Department alleged that Abbott made its spray dryer conditions worse by lengthening the number of product batches that passed through the dryers between cleaning cycles — enabling Abbott to increase production. The complaint also alleges that Abbott intentionally did not test for bacterial growth to avoid obtaining positive test results showing contamination, and that in certain instances where testing demonstrated “micro” contamination, Abbott failed to disclose the test results when responding to requests from FDA during 2019 and 2022 inspections at the Sturgis facility.

Under the civil settlement agreement, Abbott will pay $348,700,868 to the United States to resolve the False Claims Act allegations and an additional $36,298,172 to certain States for claims settled by their State Medicaid and WIC programs.

The U.S. Department of Agriculture funds and regulates the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) program, which provides nutritional support — including infant formula — to eligible participants. More than half of all infant formula purchased in the United States is paid for with USDA funds through WIC. State Medicaid Programs also cover and pay for certain infant formula.

The civil settlement resolves claims brought under the False Claims Act’s qui tam provisions, which allow private individuals to bring suit on behalf of the United States for false claims submitted to federal programs and to share in any recovery. Relators Scott Millard, Kristine Cooper, and Loren Cooper, who were Abbott employees, will receive $69 million as their share of the federal settlement. The qui tam action, filed in the United States District Court for the Western District of Michigan, is captioned United States, et al., ex rel. Scott Millard, et al., v. Abbott Laboratories, No. 1:22-cv-994 (W.D. Mich.).

The resolution was the product of a coordinated effort by the Justice Department’s Civil Division, Commercial Litigation Branch, Civil Fraud Section, and the U.S. Attorney’s Office for the Western District of Michigan, with assistance from USDA’s Office of Inspector General.

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

The matter was handled by Civil Fraud Section Trial Attorneys Asha Natarajan and Erin Colleran of the Justice Department’s Civil Division and Assistant U.S. Attorneys Whitney Schnurr and Jacob Carlton for the Western District of Michigan.

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

Hagåtña, Guam – United States Attorney Shawn N. Anderson, serving the Districts of Guam and the Northern Mariana Islands, announces the results of Operation Protektot Y Famagu’on (Defender of Children). This law enforcement initiative was led by the Homeland Security Investigations (HSI) Assistant Special Agent in Charge Guam, with support from HSI Saipan, HSI Honolulu, HSI Atlanta Special Agents, the Naval Criminal Investigative Service (NCIS), the Defense Criminal Investigative Service (DCIS), the Federal Bureau of Investigation (FBI), and HSI Task Force Officers from the Guam Police Department, Guam Customs & Quarantine Agency, and Guam Airport Police.

The operation, conducted from August 22 through August 27, involved a coordinated online undercover effort within the District of Guam aimed at identifying individuals attempting to engage in unlawful sexual conduct with minors. This initiative reflects the continued commitment of federal law enforcement agencies nationwide to protect children, hold offenders accountable, and prevent internet facilitated offenses.

As a result of Operation Protektot Y Famagu’on, five individuals were arrested for Attempted Enticement of a Minor, in violation of 18 U.S.C. §§ 2422(b) and 2:

• Mike Ybanez Balbuena, 44-year-old, a citizen of the Republic of the Philippines

• Eli Valentine, 21-year-old, an active-duty U.S. Navy service member

• Keola Joaquin H. Flores, 30-year-old, a United States citizen

• Peter John San Nicolas, 36-year-old, a United States citizen

• Augusto Bagat Anselmo, 44-year-old, a Lawful Permanent Resident of the U.S. and citizen of the Republic of the Philippines

If convicted, the defendants each face a minimum sentence of 10 years in prison and a maximum of life. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. 

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Guam comprises agents and officers from HSI, FBI, ATF, CBP, CGIS, DCIS, DEA, IRS-CI, NCIS, USMS, USSS, USPIS, USCIS and local law enforcement with prosecution being led by the United States Attorney’s Office for the District of Guam and the Northern Mariana Islands.

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

In the first-ever case before the United States Alien Terrorist Removal Court (ATRC), Nazira Haji Zada, 47, an Afghan national previously residing in Fort Worth, Texas, was removed from the United States after conceding that she is an alien terrorist. As the matriarch in her family, she supported a plot to commit an ISIS-inspired mass shooting on Election Day in 2024 for which her son, Abdullah Haji Zada, and son-in-law, Nasir Ahmad Tawhedi, were previously arrested and convicted. The ATRC issued an order of removal on Aug. 20 that was unsealed earlier today following her return to her country of origin. This was the first case ever brought before the ATRC, which Congress established decades ago, and which no previous administration had used. Zada is now permanently inadmissible to the United States.

The application to remove Zada, certified by Attorney General Todd Blanche, was filed on July 15, and Zada appeared in open court for the first time on July 30. ATRC Chief Judge Joan N. Ericksen presided over that hearing and later signed the removal order. In compliance with the ATRC statute, the government used classified information to establish that Zada is an alien terrorist. Additionally, the government provided Zada and her lawyers, two federal public defenders, with approximately half a terabyte of documents supporting the government’s case. With her lawyers, Zada conceded that she is an alien terrorist and waived appeal of the removal order, terminating her previous status.

“This landmark case, resulting in the prompt removal of this alien terrorist to her country of origin, is a win for national security and the rule of law,” said Attorney General Todd Blanche. “Those who support and condone terrorism should not be living in the United States, and this first-ever case before the ATRC shows how the Department will use every tool at its disposal to protect our country.”

“This is a historic and vitally important step in our work to protect the U.S. homeland from terrorism,” said FBI Director Kash Patel. “An individual who supported a plot by ISIS-sympathizing family members to commit an attack in America has paid the price for that. She came to our country, betrayed it, and has now lost the right to live here and enjoy our democratic freedoms. This FBI and our Justice Department partners will protect the American people from the threat of terrorism, using all means necessary.”

“From the moment President Trump took office, he made clear that his Administration would put the safety and security of the American people first,” said Secretary Markwayne Mullin of the Department of Homeland Security. “The President’s direction to use the Alien Terrorist Removal Court to expel Nazira Haji Zada, an Afghan national who plotted with members of her family to carry out an ISIS-inspired attack on American soil, delivers on that promise. Thanks to the President’s leadership and the coordinated efforts the Departments of Homeland Security, Justice and State, Nazira Haji Zada’s final order of removal is now FINAL. Those who plot acts of terrorism against the United States have no place in our country. We will find them, and we will use every lawful tool available to remove them.”

“Zada supported her sons’ terrorist plot to attack the United States while she enjoyed the privilege of residing here as a resident alien,” said Assistant Attorney General for National Security John A. Eisenberg. “She abused our Nation’s hospitality and represented a clear threat to our national security. The United States is a safer place now that her sons are in custody and she has been deported.”

“Those who support terrorism against the American people will face the consequences,” said State Department Spokesman Tommy Pigott. “We will secure our borders, and we will use every tool to stop those who intend us harm from entering or remaining at-large in our country. Under the leadership of President Trump, the State Department, alongside the Departments of Justice and Homeland Security, will always work tirelessly to ensure the safety of our people and the security of our nation.” 

Tawhedi and Abdullah Haji Zada were arrested on Oct. 7, 2024, after purchasing firearms and ammunition to be used in an Election Day terrorist attack from an undercover FBI employee. Nazira’s son Abdullah, who was 17 at the time of his arrest, entered his guilty plea as an adult and was sentenced to 15 years in prison. As part of the plea agreement, Abdullah stipulated to the entry of a judicial order of removal from the United States to Afghanistan following his term of incarceration. Abdullah acknowledged that the order of removal would terminate his lawful permanent resident status, and waived his right to appeal the conviction except in limited circumstances or seek any form of appeal or relief from his removal and deportation, including but not limited to, seeking asylum. Tawhedi, 28, pled guilty to two terrorism-related offenses: conspiring and attempting to provide material support and resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and receiving, attempting to receive, and conspiring to receive firearms and ammunition in furtherance of a federal crime of terrorism on June 13, 2025, and is awaiting sentencing. 

According to court documents, Tawhedi admitted that between June 2024 and October 2024, he conspired with at least one other individual to purchase two AK-47 rifles, 500 rounds of ammunition, and 10 magazines, with the intent to carry out a mass-casualty attack on or around Election Day, Nov. 5, 2024, on behalf of ISIS. According to a criminal complaint affidavit filed in the case, Tawhedi communicated with an ISIS facilitator about his plan to purchase firearms for use in the terror plot, including asking the individual whether 500 rounds of ammunition would be sufficient.

According to the criminal complaint, to raise funds for their attack, in 2024, the family started selling off their property, including furniture, computers, a mobile phone, and the family’s two vehicles. Zada signed a contract to sell the family house. The family also purchased one-way airfare for travel to Kabul, Afghanistan shortly before Election Day 2024 for its members, including for Zada and other minor children but not Abdullah and Tawhedi. 

The ATRC is a specialized federal court, which Congress established in 1996. The court has jurisdiction to swiftly remove alien terrorists from the United States when the government establishes by a preponderance of the evidence that an alien is a terrorist. See Title 8 of the United States Code, Sections 1227(a)(4)(B), 1531(1), and 1534(g). It is run and staffed by U.S. federal district court judges confirmed to the judiciary pursuant to Article III of the Constitution and then appointed to the ATRC by the Chief Justice of the United States. See Title 8 of the United States Code, Sections 1531 to 1537. 

The court allows the government to use classified information where disclosing that information to the public would pose risks to national security. The statutory provisions that establish the court provide paid counsel to the aliens if necessary and also permit either party to appeal to the United States Court of Appeals for the District of Columbia Circuit. 

This removal proceeding reflects the coordinated efforts of multiple federal agencies, including the Department of Justice’s National Security Division, the FBI, and the U.S. Marshals Service, as well as the Department of Homeland Security’s Homeland Security Investigations and U.S. Citizenship and Immigration Services.

Acting Deputy Assistant Attorney General Hayden O’Byrne of the National Security Division led the litigation with assistance from Deputy Chief Larry Schneider and Trial Attorneys Anna Donnell, Garrett Coyle and Evan Schultz.

For more information on the ATRC and to view court documents visit: www.atrc.uscourts.gov/. The Department of Justice previously announced the arrest here: www.justice.gov/opa/pr/department-justice-files-first-case-us-alien-terrorist-removal-court-deport-afghan-alien-who

Today, the Department of Justice filed its final four lawsuits against three states and the District of Columbia who seek to undermine federal law by placing illegal aliens over citizens in clear defiance of Congress’s commands. The Department filed complaints against Hawaii, the District of Columbia, Arkansas, and Utah, challenging their state laws that provide in-state tuition and financial assistance for illegal aliens.

Our filings hold that these laws unconstitutionally discriminate against U.S. citizens who are not afforded the same reduced tuition rates or scholarships, create incentives for illegal immigration, and reward illegal aliens with benefits that U.S. citizens are not eligible for, all in direct conflict with federal law. These final lawsuits come after the United States District Court for the District of Kansas ruled yesterday that Kansas’ state law allowing in-state tuition for illegal aliens is unconstitutional.

“No more placing illegal aliens over American citizens on this Department of Justice’s watch,” said Associate Attorney General Stanley E. Woodward, Jr. “We have now sued every state across our Nation that has a state law or regulation granting illegal aliens in-state tuition. We look forward to favorable court rulings and will continue to deliver on President Trump’s promise: illegal aliens will not receive benefits denied to American citizens.”

“This is a simple matter of federal law: colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”

In the complaints, the United States seeks to enjoin enforcement of Hawaii, DC, Arkansas, and Utah laws and regulations that require colleges and universities to provide in-state tuition rates for all aliens who maintain in-state residency, regardless of whether those aliens are lawfully present in the United States. Additionally, the complaint seeks to enjoin Hawaii, DC, Arkansas, and Utah from enforcing their state laws and regulations that afford financial assistance and scholarships to illegal aliens.

Today’s lawsuits bring the Department’s total to 25 lawsuits challenging in-state tuition for illegal aliens. Under the leadership of Acting Attorney General Todd Blanche, the Department’s efforts have already delivered wins for the American people, as six lawsuits in Texas, Kentucky, Oklahoma, Nebraska, Illinois, and Kansas have resulted favorable orders permanently enjoining and declaring unconstitutional similar laws that gave reduced tuition to illegal aliens, including an order from the Fifth Circuit.

Lawsuits against other states whose state laws similarly put illegal aliens ahead of U.S. citizens are pending across the across the country in Minnesota, Virginia, California, New Jersey, Massachusetts, Rhode Island, Maryland, Colorado, New York, Connecticut, Vermont, Arizona, New Mexico, Oregon, and Washington.

The Justice Department, on behalf of the Environmental Protection Agency (EPA), today lodged a proposed settlement agreement with Environmental Resource Holdings LLC (ERH) to perform critical work to support the cleanup of the Diamond Alkali Superfund site, including the lower 17 miles of the Passaic River. The work is estimated to cost $125 million and focuses on the next steps needed to get the in-river work started. 

Under the proposed consent decree, ERH would construct an upland processing facility and several upland support facilities that would enable dredging and capping work in the Lower Passaic River. The construction would include a facility to handle sediment dredged from the river before it is sent for off-site disposal. The upland support facilities would provide land and infrastructure needed to support future in-river construction work. ERH would sample the lower 8.3 miles of the river to establish a baseline and reimburse EPA for future oversight costs related to this work.

“Over many decades, industrial activity contaminated the Lower Passaic River,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “This settlement is a significant step toward cleaning up a site that has been a longstanding priority for EPA.  We will continue to partner with EPA to promote public health by ensuring that responsible parties remediate Superfund sites.”

“The construction ordered in this consent decree is the next step in cleaning up the Lower Passaic River and finally remediating one of the oldest Superfund sites,” said Assistant Administrator for the Office of Enforcement and Compliance Assurance Jeffrey Hall. “This settlement demonstrates this Administration’s commitment to expediting work through cooperative engagement and well-tailored agreements.”

“This is a huge step in cleaning up one of New Jersey’s most complex Superfund sites,” said Regional Administrator Michael Martucci of EPA Region 2. “The work laid out in this proposed settlement gets shovels in the ground and lays the foundation for dredging and that brings us one important step closer to a cleaner and restored Passaic River.”

ERH is a potentially responsible party for the site and a corporate successor to Occidental Chemical Corporation and to Diamond Alkali Company/Diamond Shamrock Corporation, which owned and operated the former Diamond Alkali facility in Newark.

The proposed consent decree was filed in U.S. District Court for the District of New Jersey and is subject to a 30-day comment period. The complaint and the proposed consent decree are available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees. 

Attorneys with ENRD’s Environmental Enforcement Section are handling this matter.

A federal grand jury in the District of Minnesota returned a two-count indictment today charging Mukeshkumar Somabhai Chaudhari, an Indian national, with knowingly making a false claim of United States citizenship in order to vote in the Nov. 5, 2024 general election.

According to the indictment, on or about Nov. 5, 2024, Chaudhari signed the voter signature certificate required by Minnesota law in order to vote in the general election. The certificate required him to swear or affirm that he was a citizen of the United States. The indictment alleges that Chaudhari was not a U.S. citizen and that he knowingly made the false citizenship statement in order to vote.

“The right to vote is a sacred privilege of American citizenship, and every lawful voter deserves an election system in which that right is protected,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department will hold accountable those who knowingly make false claims of citizenship in order to vote. The integrity of our elections depends on ensuring that only eligible citizens cast ballots and that every lawful vote is counted.”

Chaudhari is charged with one count of false information in voting, in violation of 52 U.S.C. § 21144(b), incorporating 18 U.S.C. § 1015(f), and one count of making a false claim of citizenship in order to register to vote or vote, in violation of 18 U.S.C. § 1015(f). If convicted, he faces a maximum penalty of five years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Homeland Security Investigations is investigating the case, with assistance from the Fillmore County Sheriff’s Office.

Trial Attorneys Flavio Abreu and William Rubens of the Civil Rights Division’s Criminal 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.

A Maryland woman was sentenced today to 12 months and one day in prison for attempting to steal more than $1.1 million from the IRS by filing false tax returns.

According to court documents and statements made in court, between December 2019 and March 2020, Kendra Scarborough, of Oxon Hill, filed three false tax returns in the names of purported trusts that she controlled. In total, these tax returns sought more than $1.1 million in refunds that the trusts were not entitled to receive. Scarborough’s scheme resulted in the IRS issuing a refund of $412,000 to one of the purported trusts. Scarborough used these funds to pay for, among other things, the mortgage on her personal residence and other creditors. 

Scarborough pleaded guilty to one count of theft of government funds. In addition to the term of imprisonment, U.S. District Judge Debrorah L. Boardman ordered Scarborough to pay $410,117.44 in restitution to the IRS and forfeit to the government the proceeds from the tax refund that remain in her bank account. 

IRS Criminal Investigation investigated the case.

Trial Attorney Melissa Siskind of the Fraud Division’s Tax Section prosecuted the case.

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

Today, the Department of Justice announced an agreement with Mount Sinai Health System (“Mount Sinai”) that resolves an investigation into potential violations of federal law arising from its provision of sex-rejecting procedures on children—often described as “gender-affirming care.”  Under the agreement, Mount Sinai, one of the largest health care providers in the state of New York, will cease providing these interventions to minors, including by administering puberty blockers and cross-sex hormones and performing surgical procedures.  Mt. Sinai will also pay a monetary penalty and dedicate $2 million to providing free medical care to individuals suffering harmful consequences of “gender affirming care” they received as children.

This announcement follows similar agreements with Texas Children’s Hospital, the Cleveland Clinic Foundation, and Connecticut Children’s Hospital.  In working towards this resolution, the United States acknowledged that Mount Sinai took significant steps entitling it to credit for cooperation with the Department in its investigation.  At all times during the investigation, Mount Sinai remained cooperative, proactive, and solution-driven, as evidenced by its multimillion-dollar commitment to detransition care.

“The Department of Justice is committed to holding accountable medical providers that violate federal law and endanger children through so-called gender-affirming care,” said Attorney General Todd Blanche.  “This agreement puts an end to these practices at Mount Sinai and provides meaningful relief for individuals who have already suffered harm.”

“A growing number of hospitals, like Mount Sinai, have recognized the medical scandal of sex-rejecting procedures,” said Assistant Attorney General Brett Shumate of the Civil Division. “While we are grateful when we secure resolutions to end this discredited practice and protect children, we must not and will not rest in our pursuit of justice for the victims it has left behind.”

“The Northern District of Texas remains committed to holding medical providers, hospitals, and pharmaceutical companies accountable for unsound medical practices and procedures that put our kids at risk,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “This settlement is a step in the right direction, and we will continue to use all of our civil and criminal tools to hold these actors and entities accountable when they violate federal law when providing this so-called care.”

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Enforcement and Affirmative Litigation Branch and the Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Northern District of Texas, the U.S. Department of Health and Human Services, Office of Inspector General, and the Food and Drug Administration Office of Criminal Investigations.

In January 2025, President Trump issued an order "Protecting Children from Chemical and Surgical Mutilation," directing the Department of Justice to prioritize investigations and enforcement actions involving violations of federal law in the provision of so-called “gender-affirming care” to children. In April 2025, Attorney General Pam Bondi issued a memorandum on "Preventing the Mutilation of American Children."

Acting on these directives, the Civil Division launched a nationwide investigation into the child gender-transition industry.  The investigation examines potential violations of the Food, Drug, and Cosmetic Act, the False Claims Act, and other federal health care laws, including fraudulent billing practices such as the use of false diagnosis codes to obtain payment from federal health care programs and private insurers.  These schemes compound the harm inflicted on vulnerable children by fraudulently shifting the cost of potentially unlawful medical interventions to taxpayers and insurers.

Today’s agreement is one result of that nationwide investigation.  The Civil Division’s Enforcement & Affirmative Litigation Branch and Commercial Litigation Branch will continue to pursue these cases across the country, stop unlawful conduct, recover funds obtained through fraud, and hold accountable those who profit by violating federal law at children’s expense.

The claims resolved by the United States in the agreements are allegations only, and there has been no determination of liability. Mount Sinai has denied all allegations.

The Justice Department’s Antitrust Division filed a proposed consent decree today to resolve the United States’ claims against Pinnacle Property Management Services LLC, as part of its ongoing enforcement action in the Middle District of North Carolina against algorithmic coordination, the use of competitors’ competitively sensitive data, and other anticompetitive practices in rental markets across the country that artificially increase housing costs for the American people. Today’s proposed decree builds on the Justice Department’s success in obtaining settlements in the same enforcement action against RealPage Inc. and four other large landlords, Cortland Management LLC, Greystar Management Services LLC, LivCor LLC, and Willow Bridge Property Company LLC.

“This administration will not tolerate illegal actions by corporate landlords that inflate housing prices for Americans,” said Associate Attorney General Stanley E. Woodward Jr. “The Department of Justice will fight for every American who is being taken advantage of by corporate greed.”

“The Antitrust Division is diligent in our work of protecting consumers in housing markets, including by putting an end to practices by corporate landlords that illegally prevent honest competition that benefits renters,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “This consent decree is an important step in achieving affordable housing for Americans.”

The United States, along with state co-plaintiffs, filed a complaint on Jan. 7, 2025, alleging that Pinnacle, with five other co-defendant landlords, actively participated in a scheme to set their rents using each other’s competitively sensitive information through pricing algorithms. Pinnacle and other landlords shared competitively sensitive data to generate pricing recommendations using RealPage’s algorithms, which also included anticompetitive rules that aligned pricing. Pinnacle and other landlords also conferred on competitively sensitive topics, such as pricing strategies, rents, and selected parameters for RealPage’s software.

If approved by the court, the proposed consent decree would require Pinnacle to:

• Refrain from using any anticompetitive algorithm that generates pricing recommendations using its competitors’ competitively sensitive data or that incorporates certain anticompetitive features;
• Refrain from sharing competitively sensitive information with competitors;
• Accept a court-appointed monitor if it uses a third-party pricing algorithm that is not certified pursuant to the terms of the consent decree;
• Refrain from attending or participating in RealPage-hosted meetings of competing landlords; and
• Cooperate with the United States’ claims against other defendants.

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.

Pinnacle is a residential property manager headquartered in Frisco, Texas.

Note: Read the Proposed Final Judgement here, the Stipulation and Order here, the Explanation of Procedures here, and the Competitive Impact Statement here.

A Minnesota man pleaded guilty yesterday to filing a false claim with the IRS.

According to court documents and statements made in court, Philip Nelson Green filed false individual income tax returns with the IRS for the years 2019, 2020, 2021 and 2022. Each of these tax returns reported multiple false or fraudulent items, including false wage information, itemized deductions, withholding amounts and child and dependent care expenses. For the years 2021 and 2022, Green filed false tax returns that collectively sought more than $500,000 in refunds he was not entitled to receive.

Green pleaded guilty to one count of making a false claim. He is scheduled to be sentenced on Jan. 28, 2027 and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Daniel N. Rosen for the District of Minnesota made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Charles A. O’Reilly and Daniel R. Glenn of the National Fraud Enforcement Division’s Tax Section are prosecuting the case.

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

The Justice Department has issued a letter urging the Maryland Department of Transportation to stop efforts to collect nonresident vehicle permit fees from servicemembers and their spouses that violate the Servicemembers Civil Relief Act (SCRA). 

Under Maryland’s current policy, military families across the state are effectively taxed twice when they register a vehicle in their home state and then relocate to Maryland for military service.

“Relocation for military service is already a costly endeavor,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “If a vehicle belonging to a servicemember or their spouse is registered in their home state, then that family has already paid their fair share. They should not also be required to pay additional taxes or fees in each state that they move to in compliance with military orders.”

The Department is asking Maryland, consistent with the SCRA, to exempt servicemembers and their spouses from the Motor Vehicle Administration’s nonresident vehicle permit fees, refund amounts they have already collected, and update their policies and trainings to ensure that military families are not subject to such fees going forward.

For more information about the Department’s enforcement efforts under the SCRA and other laws that protect the rights of servicemembers and their families, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.

Note, a press release posted earlier today, Sept. 3, was mistakenly a reprint of an Aug. 21 press release about a related decision. Below is the correct press release regarding a decision issued on Monday, Aug. 31, in this matter.

On Monday, the U.S. District Court for the Central District of California dismissed with prejudice the complaint in Center for Biological Diversity v. Burgum — one of several cases challenging Sable Offshore Corp.’s oil and gas operations at the Santa Ynez Unit in the Santa Barbara Channel. This ruling follows another, related ruling issued last month.

“States cannot stop the Executive Branch from acting pursuant to Congress’s authorization, especially when it comes to ensuring American energy dominance,” said Associate Attorney General Stanley E. Woodward Jr. “The Department is pleased with the court’s decision. This Department of Justice will never allow California or ideological groups to undermine our Nation’s national security and economic prosperity interests in ensuring availability of this critical resource for Americans.”

“This is another victory for American energy independence,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “Two weeks ago, this same court affirmed the federal government’s authority to protect energy security from state overreach through a Defense Production Act order restarting this critical domestic source of oil. This week’s decision protects this critical resource against special interest groups who sought to stymie that same oil production through a lawsuit alleging violations of federal law. We are committed to unleashing American energy, as President Donald J. Trump has directed the Department of Justice and all federal agencies to do.”

Following a decade of inactivity, Sable last year sought to restart offshore oil and gas production on Platform Harmony in the Santa Ynez Unit. Plaintiff environmental groups sued, challenging the Bureau of Ocean Energy Management (BOEM)’s April 2025 decision not to require revision of the development and production plan for Platform Harmony related to Sable’s restart plans. In its decision dismissing the case for lack of standing, the court held that the plaintiffs have not alleged a procedural injury and their theory of causation is “far too hypothetical and attenuated” and “not fairly traceable to BOEM and Sable.” 

The court instead explained that plaintiffs’ asserted injuries stem from offshore oil and gas operations generally, not from BOEM’s decision. The court further held that the plaintiffs’ injuries are not redressable because BOEM has substantial discretion in deciding whether to require revision of the plan.

Attorneys with ENRD’s Natural Resources Section handled this matter.

In a significant victory for President Trump’s efforts to unleash American energy, the U.S. District Court for the Central District of California earlier this week affirmed the federal government’s authority to protect national energy security under the Defense Production Act. The ruling ensures that domestically produced oil can reliably reach California refineries and safeguards the continued operation of critical pipeline infrastructure on the California coast.

In a comprehensive decision, the court rejected the State of California’s radical attempt to shut down the Santa Ynez Pipeline and dismissed efforts by California and environmental groups to impose state‑level barriers designed to obstruct federally mandated operations during a declared national energy emergency. The court’s decision ensures that sound federal energy policy — not California’s disruptive anti-energy measures — governs operation of this critical infrastructure.

“States cannot stop the Executive Branch from acting pursuant to Congress’s authorization, especially when it comes to ensuring American energy dominance,” said Associate Attorney General Stanley E. Woodward Jr. “The Department is pleased with the court’s decision to affirm this commonsense principle, upholding the Department of Energy’s lawful and constitutional order under the Defense Production Act. This Department of Justice will never allow California or ideological groups to undermine our Nation’s national security and economic prosperity interests in ensuring availability of this critical resource for Americans.”

“This ruling upholds decisive federal action to protect national security by restarting the flow of 50 million gallons of oil per day when the stability of America’s energy supply is threatened,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Energy and Natural Resources Division (ENRD). “The Department of Justice, together with our parters at the Energy, Interior, and Transportation Departments will not allow California or environmental groups to undercut American energy.”

This ruling comes at a time when state and local energy policies on the West Coast continue to destabilize regional supply and threaten broader national energy resilience. The Santa Ynez Pipeline transports more than one million barrels of domestically produced crude oil per month from offshore wells into California — providing a reliable domestic supply to offset foreign imports and reinforcing the America’s energy independence. Its continued operation is also essential to maintaining stable fuel supplies for more than 32 U.S. military installations across the West Coast, supporting operational readiness and ensuring these facilities can meet critical national defense requirements.

The court confirmed that a Defense Production Act order — issued by Secretary of Energy Chris Wright under delegated authority from the President — lawfully preempts state actions aimed at blocking or delaying Sable Offshore Corporation (Sable)’s operations of the Santa Ynez Pipeline. The court held that the only agency with authority to oversee the safety of the pipeline is the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), and California’s efforts to shut down the pipeline amounted to an attempt to override federal authority and undercut essential national energy priorities.

Key components of the court’s rulings include:

• Denial of California’s motion for a preliminary injunction seeking to suspend Energy Secretary Wright’s Defense Production Act order requiring operation of the pipeline. The court held that California failed to demonstrate any likelihood of success on the merits of its challenge because the Order is lawful and constitutional.
• Recognition of the Defense Production Act order’s preemptive force, declaring that federal law bars California’s Department of Parks and Recreation from pursuing legal actions — such as trespass claims — that would impede pipeline operations mandated by federal authority.
• Clarification that state courts may not enforce injunctions that conflict with federal directives, as the court addressed efforts by environmental groups to sustain a state‑court injunction.
• Modification of the existing federal consent decree to consolidate oversight of pipeline safety and compliance under PHMSA, replacing California’s Office of the State Fire Marshal to prevent further state‑level interference with federally directed operations.

The decision makes clear that attempts by California and environmental groups to impose new obstacles to critical energy infrastructure — despite clear federal findings of urgent national security needs — cannot override federal law.

The Department of Justice remains committed to enforcing federal law, defending national energy security, and ensuring that vital infrastructure remains free of unlawful state‑imposed barriers. This case was litigated by ENRD.

Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Kopich Chutaro a.k.a. Osama Chutaro, age 23, a citizen of the Federated States of Micronesia (FSM), was sentenced on August 27, 2026, in the District Court for Guam to serve six months and 21 days followed by transfer to immigration authorities for immediate deportation.  Chutaro pled guilty to Attempted Reentry of Removed Alien, in violation of 8 U.S.C. § 1326(a) and (b)(1). The Court also ordered three years supervised release, and $100 special assessment fee.

On February 9, 2026, Kopich Chutaro a.k.a. Osama Chutaro, arrived at the Guam International Airport from Chuuk State, FSM. During the immigration inspection, he presented an FSM passport bearing the name “Kempy Akachang” and sought admission into the United States under the Compact of Free Association. U.S. Customs and Border Protection officers determined that Chutaro had a prior deportation for an aggravated felony and referred him to Homeland Security Investigations (HSI) for further review.

HSI agents later confirmed that Chutaro had been deported from the United States on July 22, 2024, following a felony conviction on Guam. According to court records, he was convicted in December 2022 on two counts of theft by receiving and sentenced to five years of imprisonment, with all but 15 months suspended. An immigration judge later ordered Chutaro removed from the United States based on his aggravated felony conviction.

This case was investigated by Homeland Security Investigations - Guam and prosecuted by Assistant United States Attorney Rosetta L. San Nicolas in the District of Guam.

This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Guam comprises agents and officers from ICE-HSI, FBI, ATF, CBP, CGIS, DCIS, DEA, IRS-CI, NCIS, USMS, USSS, USPIS, USCIS and local law enforcement with prosecution being led by the United States Attorney’s Office for the District of Guam and the Northern Mariana Islands.
 

Today, the Civil Rights Division is monitoring polling sites in Massachusetts for the Commonwealth’s primary election to ensure transparency, ballot security, and compliance with federal law.

“Monitoring is an essential duty for the Civil Rights Division during election season,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Nonpartisan, nondiscriminatory monitoring efforts promote transparency, accountability, and most importantly trust in our federal elections.”

The DOJ, through the Civil Rights Division, enforces federal voting laws which protect the voting rights of all eligible citizens. The DOJ regularly deploys staff from the Civil Rights Division and other Department offices to monitor compliance with federal voting rights laws in communities across the country. The U.S. Attorney’s Office for the Commonwealth of Massachusetts is providing personnel to assist in the effort. 

The DOJ is monitoring polls in Boston, New Bedford, and Lowell with 12 monitors. Thus far the DOJ has deployed over 80 monitors across eight states and over 200 polling locations this primary season. By comparison, during the 2022 midterms the DOJ sent monitors to nine states during the primary season.

The Civil Rights Division’s Voting Section enforces various federal statutes that protect the right to vote, including the Voting Rights Act, National Voter Registration Act, Help America Vote Act, Uniformed and Overseas Citizens Absentee Voting Act, the Americans with Disabilities Act, and the Civil Rights Acts.

From now through the general election on Nov. 3, Civil Rights Division personnel will be available to receive questions and complaints from the public related to federal voting rights laws. If you have a question or complaint or would like to request election monitoring in a particular jurisdiction, please contact the Voting Section at [email protected].

The Justice Department’s Civil Rights Division has reached a settlement agreement with the Kansas Department of Health and Environment (KDHE) to resolve allegations that KDHE violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when it stopped funding Army National Guard Staff Sergeant Stacy Gonzales’s civilian job due to her upcoming military deployment. This settlement agreement resolves the suit filed by the United States against KDHE on behalf of SSG Gonzales in the United States District Court for the District of Kansas on June 27, 2022.

“No servicemember should lose her civilian job because of her service in the National Guard,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department is proud to vindicate servicemembers’ rights under USERRA and will continue to ensure that they can serve our country without fear of losing their civilian jobs because of their service.”

“National Guard members are called citizen-soldiers because they must strike a balance between fulfilling obligations to civilian careers with those of military service. As a reservist myself, I know this is no easy task” said U.S. Attorney Ryan A. Kriegshauser for the District of Kansas. “When guard members deploy, they shouldn’t have to worry that their livelihoods will be stripped away while they are off serving our country. Our government put laws in place to protect the employment rights of servicemembers. The Department of Justice will continue to be a defender and champion of those rights.”

The settlement agreement resolves SSG Gonzales’s claim that KDHE violated USERRA when it eliminated grant funding for her position as a Disease Intervention Specialist (DIS) with the Finney County, Kansas, Department of Health, a position under the direct control and supervision of KDHE, when SSG Gonzales told them she would be deploying. As part of the settlement agreement, KDHE will pay SSG Gonzales $35,000. The settlement agreement also requires KDHE to update its USERRA policies and procedures and to train all KDHE employees, including those through grant funding, on those updated policies and procedures.

USERRA protects the right of uniformed servicemembers to reemployment in their civilian jobs following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department prioritizes the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s website at www.justice.gov/servicemembers as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra.

Ohio State University (OSU), a public university in Columbus, Ohio, has agreed to pay a total of $2,100,000 to resolve civil allegations that it failed to disclose OSU employees’ affiliations with and support from the People’s Republic of China (PRC) in connection with federal research funding.

“American universities that benefit from the federal government’s support for scientific research and advancement must fully disclose all foreign funding in their grant applications,” said Assistant Attorney General Brett A. Shumate of the Justice Department's Civil Division. “We will continue to hold accountable any university that fails to comply with disclosure requirements designed to protect research security and federally-funded scientific achievements.”

“Together with the Department of Justice and NASA, we have secured a major financial recovery on behalf of the American public,” said Robert Steinau, Senior Official at the NASA Office of Inspector General. “The settlement and accompanying compliance agreement send a clear message: We will not tolerate institutions that conceal foreign ties and compromise national security. Our cutting-edge research must not fall into the hands of our adversaries.”

“The National Science Foundation invests billions of taxpayer dollars each year in research that advances American innovation and national security, providing a substantial portion to support America’s colleges and universities,” said Acting Inspector General Megan E. Wallace of the National Science Foundation. “Federal agencies rely on grant recipients, including colleges and universities, to fully disclose their funding sources and personnel commitments, including foreign support. When recipients fail to make those disclosures, they undermine the integrity of the federal grant process and can put taxpayer dollars and U.S. research interests at risk. The NSF Office of Inspector General is committed to protecting the nation’s investment in science and technology by detecting and preventing fraud and holding recipients accountable for meeting their obligations. We thank the Justice Department’s Civil Division and our investigative partners for their work in protecting federally funded research.”

This settlement relates to National Aeronautics and Space Administration (NASA) and National Science Foundation (NSF) grants that provided funding to OSU from November 2012 to August 2023. In the funding application process, NASA and NSF required OSU to disclose, among other things, foreign government support received by any principal investigator (PI) or co-PI on the grant application. Further, since 2011, federal law prohibits the use of grant funds for collaborations with the PRC, PRC Universities, or any PRC-owned companies. The settlement resolves allegations that OSU failed to disclose the collaboration and affiliation with, or funding received from, the PRC by certain OSU employees working on NASA and NSF grants. Specifically, the settlement resolves allegations that since 2014, annual Faculty Activity Reports submitted to OSU identified affiliations with PRC universities and state-run research organizations, but OSU did not disclose this information to NASA or NSF. In addition, OSU learned in 2019 that a PI on NASA grants was a participant in a Thousand Talents Program, a program established by the PRC to recruit individuals with knowledge or access to foreign technology intellectual property, but OSU did not notify NASA or NSF until four years later in 2023. The United States identified additional OSU employees who worked on those grants and were affiliated with, or collaborated with, or received funding from, the PRC.

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

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, NASA OIG, NSF OIG, and the FBI.

The matter was handled by Fraud Section Senior Trial Counsel Christopher Reimer. Investigative support was provided by NASA OIG, NSF OIG, and the FBI.

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

Note, the press release has been updated to include a quote from the Associate Attorney General.

Today, the U.S. District Court for the Northern District of New York ruled that the State of New York may not impose strict liability on energy companies for their alleged contributions to global greenhouse gas emissions. In 2024, New York enacted the “Climate Change Superfund Act,” which purported to impose billions of dollars on domestic and foreign energy companies that extract fossil fuels or refine crude oil.  A coalition of states and trade organizations sued, alleging that the Act is preempted by the federal Clean Air Act and by the federal foreign affairs power, and that the Act violates the Constitution. After the case was consolidated with a suit filed by a different coalition of trade organizations, the Justice Department filed a statement of interest and presented oral argument in support of the plaintiffs. The court agreed that the New York Climate Change Superfund Act is preempted by the Clean Air Act and by the federal foreign affairs power, and the court held that the Climate Act is invalid.

“The court held that federal law preempts New York’s attempt to regulate global environmental concerns, marking a significant step in advancing President Trump’s energy agenda and lowering energy prices for Americans,” said Associate Attorney General Stanley Woodward. “We will continue to fight to uphold the rule of law, unleash American energy, and protect our national security.”

“The Department of Justice is delivering on President Trump’s order to protect American energy from state overreach,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “New York’s law would have expropriated $75 billion from energy companies around the world during an energy emergency and in direct defiance of American foreign policy and federal law. We will continue to fight for affordable, reliable energy for all Americans.”

President Trump directed the Attorney General to take action to stop the enforcement of state laws that unreasonably burden domestic energy development so that energy will once again be reliable and affordable for all Americans. The Justice Department’s support in this case advances President Trump’s directive in Executive Order 14260, Protecting American Energy from State Overreach.

The government has also filed a complaint in the U.S. District Court for the Southern District of New York challenging the same expropriative Climate Change Superfund Act. And the government has filed a complaint in the U.S. District Court for the District of Vermont challenging Vermont’s Climate Superfund Act, which seeks to recover an unspecified amount from the same energy companies targeted by the New York Act. In those suits, the government alleges that the New York Climate Change Superfund Act and the Vermont Climate Superfund Act are preempted by the federal Clean Air Act and by the federal foreign affairs power, and that they violate the U.S. Constitution. The Justice Department seeks a declaration that these state laws are unconstitutional and an injunction against their enforcement.

A federal jury in Greenbelt, Maryland, convicted the former president of the American Federation of Government Employees (AFGE) local 2419 union, Kimberly Goodwin, 54, of Bowie, Maryland, of participating in a wire fraud conspiracy and eight counts of money laundering.

“Kimberly Goodwin was a union leader entrusted to safeguard finances and represent the interests of dues-paying members, but instead led a scheme to steal from them and convert the money for personal use. This was a substantial betrayal of the trust of hard-working Americans,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Criminal Division is proud to partner with the Department of Labor’s Office of Inspector General to uncover this fraud and prosecute those involved, including Goodwin, who led the conspiracy and held a union leadership position.”

“Kimberly Goodwin abused her position of trust as a union president to steal nearly $1 million from the very members she was elected to represent, funneling their money to a sham consulting company for services that were never rendered,” said Inspector General Anthony P. D’Esposito of the U.S. Department of Labor Office of Inspector General. “This conviction, along with the earlier conviction of her co-conspirator, sends a clear message that those who exploit their fiduciary responsibility to union members for personal enrichment will be held accountable.”

According to court documents and evidence presented at trial, Goodwin served as the president of the AFGE local 2419 union from January 2017 to August 2019. At the time of her service, the union represented approximately 500 federal employees of the National Institutes of Health (NIH). As part of the fraud scheme, under Goodwin’s authority, the union transferred approximately $1 million received from NIH from multiple employee grievance lawsuits into the local 2419 bank account. She then used her power as signatory of the union bank account – which she retained as part of her scheme to defraud the union even after her tenure as president had expired in 2019 – to transfer the money to a sham consulting company that she owned. Through a series of bank and wire transfers and cash withdrawals, she transferred approximately $1 million to her own account between 2019 and 2022 for services that were never provided by her consulting firm, or whose invoiced value far exceeded the true value of the service rendered. 

As shown at trial, Goodwin also secretly instituted new rules to the local 2419 bylaws that allowed her sham consulting firm to receive illegitimate payment for claimed work on union issues such as training, contract negotiations and collective bargaining. Indeed, evidence presented at trial established that there had not even been a meeting of local 2419 since 2020, and that local 2419 ran out of money and went into receivership in 2022. Evidence also showed that, while she controlled the union’s bank account, Goodwin spent union money for personal shopping including a $7,400 massage chair and other personal expenditures.

Goodwin is the second defendant convicted in this case. Goodwin’s co-conspirator, the Secretary-Treasurer of AFGE Local 2419, Kelleigh Williams, was convicted in 2025 of wire fraud conspiracy for her part in the fraud scheme.

The Department of Labor Office of Inspector General National Capital Region Office of Investigations and the Department of Labor Office of Labor-Management Standards investigated the case.

Trial Attorneys Ben Tonkin and Vincent J. Falvo of the Criminal Division’s Violent Crime and Racketeering Section are prosecuting the case. 

Note, the press release has been updated to include a quote from DEA Assistant Administrator Cheri Oz.

The Justice Department, together with the Drug Enforcement Administration (DEA), today announced a $50 million settlement with Walmart Inc. (Walmart) to resolve allegations that Walmart pharmacies illegally filled thousands of invalid prescriptions for opioids and other controlled substances in violation of the Controlled Substances Act (CSA).     

“Today’s settlement proves this Department is committed to putting Americans’ flourishing first,” said Associate Attorney General Stanley Woodward. “Congress enacted laws to promote responsibility and accountability for companies who dispense controlled substances to protect Americans. This Department will never shy away from vigorously enforcing pharmacies’ obligations to comply with those protections, ensuring that potential profits never justify aiding our Nation’s opioid epidemic.”

“This $50 million settlement makes clear that pharmacies have a responsibility to identify and prevent the unlawful dispensing of controlled substances,” said DEA Assistant Administrator Cheri Oz. “Filling illegitimate opioid prescriptions puts patients and communities at risk and undermines the safeguards designed to prevent the diversion and misuse of potentially addictive medications. This settlement addresses past conduct while establishing clear compliance obligations designed to strengthen safeguards and help prevent these failures from happening again.”

The government’s complaint — filed on Dec. 22, 2020, and amended in 2022 in the U.S. District Court for the District of Delaware — alleged that since June 26, 2013, Walmart filled invalid prescriptions through the knowing actions of individuals on its compliance team and the knowing actions of its pharmacists. The United States alleged that members of Walmart’s compliance team knew that certain prescribers were operating as “pill mills” but filled invalid prescriptions written by those prescribers anyway. Members of the compliance team allegedly knew of the prescribers’ egregious conduct because Walmart’s own pharmacists reported the conduct to Walmart’s corporate compliance team, including through thousands of “refusal-to-fill” forms. The compliance team, however, prioritized other goals over CSA compliance. As one director on the compliance team acknowledged in an email, rather than analyzing the refusal-to-fill reports, the compliance team viewed “[d]riving sales and patient awareness,” as “a far better use of our Market Directors and Market manger’s time.”

Walmart pharmacists also allegedly filled prescriptions they knew were invalid. The pharmacists knew these prescriptions were invalid because they were either written by a known “pill mill” prescriber or the prescriptions had obvious red flags such as dangerous combinations of opioids, “cocktails” of opioids and non-opioids, excessively repeated fills of high-dosages of often-abused opioids, or repeated requests for early fills of often-abused controlled substances.   

In addition to the monetary payment announced today, Walmart has entered into a memorandum of agreement with DEA to address its future obligations in dispensing controlled substances. This agreement requires Walmart to establish a hotline for both employees and patients to report suspected illegal dispensing of controlled substances, proactively monitor the dispensing patterns of its pharmacies to identify and address potentially illegal dispensing, and establish a process to evaluate prescribers suspected of illegal prescribing.

The United States is represented in this matter by attorneys from the Justice Department’s Civil Division Enforcement & Affirmative Litigation Branch (Trial Attorneys Katherine Ho, Kathleen Brunson, and Meredith Reiter), as well as from the U.S. Attorneys’ Offices for the District of Delaware (Assistant U.S. Attorneys Dylan Steinberg and Elizabeth Vieya), Eastern District of North Carolina (Andrew Kasper), Middle District of Florida (Carolyn Tapie), Eastern District of New York (Elliot Schachner).  Former Enforcement & Affirmative Litigation Branch Investigator Amanda Graf provided support for this matter.

Additional information about the Enforcement & Affirmative Litigation Branch and its enforcement efforts can be found at https://www.justice.gov/civil/enforcement-affirmative-litigation-branch.

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

The Justice Department announced today that two Nigerian men have been extradited to the United States from Nigeria to face prosecution in two separate cases for the financially-motivated sextortion of minors that resulted in the death of teenagers in both the Northern District of Mississippi and the Middle District of North Carolina. 

 “The defendants were arrested in Nigeria as part of a wider operation with the FBI to apprehend sexual extortionists targeting minors in the United States,” said Attorney General Todd Blanche. “The Department of Justice and this Administration have demonstrated an unwavering commitment to protecting America’s children from exploitation and sexual abuse. We have strengthened our international law enforcement partnerships to dismantle the foreign criminal networks behind financially-motivated sextortion and identify and prosecute the perpetrators of child sexual exploitation who are directly linked to dozens of American teen deaths by suicide.” 

“Today’s announcement represents two more high-value targets returned to the U.S. by this FBI through Foreign Transfers of Custody,” said FBI Director Kash Patel. “Two Nigerian subjects arrested in Nigeria in 2023 - Adebola Festus Adekunle and Mudasiru Afeez Olawale – have now been returned to the United States to face justice after allegedly participating in financially-motivated sextortion of minors - one resulting in the death of a child. Adekunle is charged with the sexual exploitation of a minor resulting in death, the production of child sexual abuse material, coercion and enticement of a minor, and interstate threats with intent to extort – and Olawale is charged with offenses relating to sexual exploitation of minors, coercion and enticement of minors, distribution of child pornography, and more. They’ve been overseas for three years, but this FBI and our DOJ partners went and got them. Sextortion is a heinous crime targeting innocent people, often young children - and this FBI will stop at nothing to pursue every single individual who harms vulnerable Americans.” 

 “Several weeks ago we announced an undercover operation dealing with child exploitation, which resulted in 70 arrests,” said U.S. Attorney Scott Leary for the Northern District of Mississippi. “Unfortunately, here we are again in an unrelated child victimization case. This time a child died. The dedication involved in this case cannot be overstated. This tragedy was immediately investigated by the Mississippi Attorney General, the Lowndes County Sheriff’s Office, the Starkville Police Department and the FBI. The evidence led agents to Nigeria. Undeterred, the FBI worked with DOJ’s Office of International Affairs for years, and eventually the defendant was extradited from Nigeria to face justice in the United States. We are thankful for the hard work of Nigeria’s Attorney General and Minister of Justice. Working together, state, federal and international agencies brought us here today.” 

“Today’s announcement makes clear that we will not rest in our pursuit of justice for victims of sextortion: Three years after the indictment, and almost five years since the conduct occurred, the defendant will finally appear in a U.S. court to face the charges against him,” said U.S. Attorney Dan Bishop for the Middle District of North Carolina. “We are grateful to all the agents, attorneys, and others whose tenacity and steadfast pursuit of justice contributed to the defendant’s extradition.” 

“Financially motivated sextortion inflicts lasting harm on victims and their families,” said Special Agent in Charge Reid Davis of the FBI Charlotte Field Office. “These schemes often begin with threats and manipulation, but their impact extends far deeper — causing emotional and psychological devastation. The extradition of this suspect proves the FBI’s commitment to pursue those who exploit vulnerable individuals, wherever they may be, and ensures they are held accountable for the profound and lasting damage they cause.” 

“Sextortion is a serious crime with devastating consequences. Its impact on victims and their families is profound and long‑lasting,” said Special Agent in Charge Robert A. Eikhoff of the FBI Jackson Field Office. “The extradition of Adekunle sends a clear and unmistakable message: crossing state lines does not erase criminal charges, and international borders do not shield individuals from accountability.”

Northern District of Mississippi Charges

Adebola Festus Adekunle, 26, of Lagos, Nigeria, has been extradited to the United States from Nigeria to face prosecution in an indictment for the financially motivated sextortion of a Mississippi minor, which lead to the victim’s death. 

Adekunle is charged with the sexual exploitation of a minor resulting in death, coercion and enticement of a minor, and interstate threats with intent to extort. He appeared in federal court in Oxford, Mississippi, for an initial appearance today. 

Adekunle was arrested in Nigeria on Aug. 14, 2023, as part of a wider operation with the FBI to apprehend sexual extortionists targeting minors in the United States.

Adekunle faces a maximum penalty of life in prison and mandatory minimum prison sentences on at least two charges. The child exploitation resulting in death charge carries a minimum penalty of 30 years in prison. 

The case is being investigated by the FBI Jackson Field Office, the FBI’s Violent Crimes Against Children Section and International Operations Division, and the Lowndes County Sheriff’s Office.

Assistant U.S. Attorney Parker S. King for the Northern District of Mississippi is prosecuting the case. 

Middle District of North Carolina Charges

Mudasiru Afeez Olawale, 24, of Nigeria, was extradited from Nigeria to the United States to face charges related to the financially motivated sextortion of one minor, and the financially motivated sextortion and death of another minor victim. 

Olawale was charged by indictment in August 2023, with offenses relating to sexual exploitation of minors resulting in death, enticement of minors, interstate threatening communications, and distribution of child pornography. He appeared in federal court in Greensboro, North Carolina, before U.S. Magistrate Judge L. Patrick Auld today.

Olawale was arrested in Nigeria on Aug. 9, 2023, as part of a wider operation with the FBI to apprehend sexual extortionists targeting minors in the United States. 

Olawale faces a maximum penalty of life in prison and mandatory minimum prison sentences on at least two charges. The child exploitation resulting in death charge carries a minimum penalty of 30 years in prison. 

This case is being investigated by FBI Charlotte’s Greensboro Resident Agency and the Surry County Sheriff’s Office.

Assistant U.S. Attorney Ann Nee for the Middle District of North Carolina is prosecuting the case.

DOJ’s Commitment to Detering Financially Motivated Sextortion 

Both cases are a result of Operation Artemis, the FBI’s surge against financially motivated sextortion rings operating from Nigeria. In coordination with domestic and international law for enforcement partners, the FBI deployed agents, analysts, and forensic experts to Nigeria to confront perpetrators of these deadly schemes — directly linked to dozens of American teen deaths by suicide. This same focused, multi-agency approach now drives a broader national effort to dismantle the foreign criminal networks behind sextortion and other predatory schemes. The U.S. Government’s Financially Motivated Sextortion Campaign Team coordinates across agencies, prioritizes victims, and brings every available tool to bear in its fight to bring to justice those who prey on American families.

Adekunle and Olawale were extradited to the United States on Aug. 27, with the assistance of the Justice Department’s Office of International Affairs, the FBI Legal Attaché in Abuja, and FBI agents from both the Jackson and Greensboro Resident Agencies, who traveled to Nigeria and took them into U.S. custody. The support and assistance of Nigerian security authorities was essential to this effort, notably that of Nigeria’s Attorney General of the Federation and Minister of Justice, the Federal Ministry of Justice’s International Criminal Justice Cooperation Department, and the Economic and Financial Crimes Commission.

All charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If someone you know is being victimized by sextortion, please report to local law enforcement and to the FBI. Learn more about sextortion and find resources for parents, caregivers, and teachers.

Yesterday, the Justice Department’s Energy and Natural Resources Division (ENRD) filed a statement of interest in a lawsuit brought by the Oklahoma Attorney General, expressing support for the construction of a primary aluminum smelter in Inola, Oklahoma.

ENRD’s filing concerns a case where the Oklahoma Attorney General has sued Century Aluminum Company and Aluminum Oklahoma, alleging environmental violations under state nuisance laws. Plaintiff’s allegations concern the federal Clean Air Act and Clean Water Act, which require environmental permits for the construction and operation of the primary aluminum smelter. Instead of allowing review of these environmental permits in the first instances, the Oklahoma Attorney General seeks to enjoin construction through this premature lawsuit, threatening vital materials critical to our nation’s defense.

“This project advances national and economic security by reducing the country’s reliance on foreign sources of materials critical to the national defense,” said Principal Deputy Assistant Attorney General Adam Gustafson of ENRD.  “The Department of Justice is committed to supporting military readiness and opposing litigation that subverts environmental regulatory processes established by Congress.”

President Donald J. Trump’s recently issued executive order Further Strengthening Actions Taken to Adjust Imports of Aluminum into the United States, recognizing that the quantities of aluminum imported into the United States threaten to impair our national security. Domestic production and supply of primary aluminum is imperative in producing an irreplaceable strategic material that is indispensable to our modern defense manufacturing. The Department of War requires primary aluminum for aerospace and air dominance, ground combat vehicles, naval systems, missiles, and space programs. However, the United States now represents less than 1 percent of the global primary aluminum production. As a result, China, the leading global producer of primary aluminum, has sought to leverage its position in primary aluminum production to gain advantage over the United States. 

As outlined in ENRD’s statement of interest, the primary aluminum smelter in Inola is the nearest-term solution in combating this national security risk. Once completed, the smelter would be the first constructed in the United States in over 40 years and would rank as the largest primary aluminum production facility in the United States, more than doubling the nation’s output. The Department of Energy recently awarded $500 million in support of this project, recognizing its importance in increasing domestic production of primary aluminum while avoiding an estimated 75 percent of emissions from a traditional smelter. A delay in construction would place the United States at risk of foreign reliance and severely limits our ability to produce the armor, aircraft, and munitions required for national defense.

The Clean Air Act and Clean Water Act provide the appropriate mechanism to address environmental concerns raised by the Oklahoma Attorney General. In its filing, ENRD asked the U.S. District Court for the Northern District of Oklahoma to dismiss the lawsuit, which would otherwise stop construction of the primary aluminum smelter and threaten America’s security by denying access to this critical material necessary for military readiness.

Attorneys with ENRD’s Environmental Defense Section are handling this matter.

A vessel operating company pleaded guilty today in the Eastern District of Pennsylvania to charges stemming from the discharge of oily waste into the sea. MSC Shipmanagement Limited, one of the largest shipping companies in the world, pleaded guilty to two counts of violating the Act to Prevent Pollution from Ships (APPS) for conduct that occurred on the motor vessel MSC Samira III between June 2024 and January 2025. The vessel’s owner, Hong Kong Spirit Shipping and Trading Limited, also pleaded guilty to two counts of violating APPS. Both companies were sentenced to pay a combined fine of $1.75 million and serve four years of probation. Second Engineer Mikhail Tsurikov previously pleaded guilty to violating APPS and is scheduled to be sentenced on Sept. 10. 

“Foreign vessels that enter the ports of the United States and present false documents undermine our efforts to preserve our environment and enforce the law,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Energy and Natural Resources Division (ENRD). “We will vigorously protect the integrity of our port state control system against actors who put profit over compliance with the law.”

“These companies repeatedly cut corners and covered it up, befouling the marine environment,” said U.S. Attorney David Metcalf for the Eastern District of Pennsylvania. “Their violations evidence both a disdain for our country’s laws and a clear case of greed. Shippers who illegally discharge pollutants and doctor their records will be prosecuted and held accountable.”

“Deliberately concealing illegal discharges puts our marine environment at risk and undermines the domestic and international regulatory frameworks designed to keep our waterways safe,” said U.S. Coast Guard Capt. Roberto Rivera, captain of the port and commander of Sector Delaware Bay. “The Coast Guard remains committed to working with our federal partners to hold operators accountable when they violate the laws that protect our oceans.”

“The Coast Guard Investigative Service (CGIS) possesses unique statutory authorities and specialized investigative capabilities purpose-built to address complex criminal conduct in the maritime environment,” said CGIS Assistant Special Agent in Charge Javiel Gonzalez. “When maritime operators engage in criminal deception, falsify official records, and attempt to circumvent federal oversight, CGIS special agents have the technical expertise and jurisdiction to uncover the truth and hold perpetrators accountable. This case underscores our unwavering commitment to maintaining the integrity of our waterways and enforcing the rule of law across the maritime domain.”

Between June and September 2024, senior officers in the engine department of the MSC Samira III instructed lower-level crew members to pump oily bilge water from the vessel’s bilge holding tank to the sewage holding tank using portable pumps and hoses. The crew members then discharged the oily bilge water into the sea using the sewage holding tank’s overboard discharge valve. In doing so, they bypassed the oil water separator, a piece of pollution prevention equipment that is designed to prevent the discharge of oily bilge water containing more than 15 parts per million of oil into the sea. 

Such exceptional discharges of oil are required by U.S. and international law to be recorded in a ship’s oil record book, but the officers in charge of these operations failed to do so. In addition to these discharges of oily waste from the vessel’s sewage holding tank, on several occasions between September 2024 and January 2025, senior engine department crew members also tricked the oil water separator by running fresh water instead of oily bilge water through the equipment’s oil content monitor. Doing so allowed them to discharge oily bilge water directly into the sea through the oil water separator. These discharges were also not accurately recorded in the vessel’s oil record book as required by law. 

In January 2025, the MSC Samira III made two separate calls in the Port of Philadelphia, where its crew presented the false oil record book to the U.S. Coast Guard. 

The U.S. Coast Guard Sector Delaware Bay and the U.S. Coast Guard Investigative Service investigated the case. 

Trial Attorney Lauren Steele of ENRD’s Environmental Crimes Section and Assistant U.S. Attorneys Angella Middleton and Anthony Scicchitano for the Eastern District of Pennsylvania prosecuted the case.

A Brooklyn, New York, woman pleaded guilty today to preparing false tax returns for clients.

According to court documents and statements made in court, Edris Cust operated a tax preparation business called Cust Tax Service. From approximately 2019 through 2023, Cust prepared false and fraudulent individual tax returns for multiple clients of Cust Tax Service. These returns included, among other false items, false elections for head-of-household filing status, sales of capital assets resulting in losses and rental receipts, as well as inflated rental expenses. These false items resulted in Cust’s clients reporting to the IRS income tax returns that sought refunds they were not entitled to receive or lower taxes than they should have paid. Cust caused a total loss to the IRS of more than $1.4 million.

Cust pleaded guilty to one count of willfully aiding and assisting in the preparation and presentation of a false tax return. She will be sentenced at a later date and faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and Special Agent in Charge Henry Chavis of IRS Criminal Investigation (IRS-CI) New York made the announcement.

IRS-CI is investigating the case.

Trial Attorneys Richard J. Kelley and Joseph D.G. Castro of the National Fraud Enforcement Division’s Tax Section are prosecuting the case.

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

The U.S. District Court for the District of Alaska earlier this week dismissed the complaint in a case challenging President Trump’s rescission of Biden-era withdrawals of areas of the Outer Continental Shelf (OCS) from oil and gas leasing. The court dismissed the case for lack of standing.

During his final days in office, President Biden withdrew over 600 million acres of the OCS from offshore oil and gas leasing. On his first day in office, President Trump rescinded the withdrawals, allowing those acres of the OCS to be considered in a future offshore oil and gas leasing program. A coalition of environmental groups challenged President Trump’s action, claiming that the rescission of the withdrawals was unlawful and would result in potential imminent harm to the environment from exploration activities. The court rejected the groups’ arguments, finding that there were “no pending applications for [geological and geophysical] exploration activities in any waters outside of the Western and Central [Gulf of America].” The court concluded that the plaintiffs had failed to demonstrate a substantial risk of imminent harm and therefore dismissed the case without prejudice for lack of standing.

“The court properly dismissed plaintiffs’ case, because they failed to show an imminent injury from President Trump’s reopening of the OCS,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “Where and when energy development will occur depends on a regulatory process that’s still underway and must be allowed to continue. Neither the President’s policy priorities nor industry’s expressions of interest could convert a speculative injury into a concrete one.” 

Attorneys with ENRD’s Natural Resources Section handled this matter. 

Today, the Justice Department’s Weaponization Working Group issued a report detailing how, under the previous Administration, the FBI’s Richmond Field Office associated beliefs held by many Catholics with domestic extremism and investigated two priests as a result. The report focuses on the production and circulation of an internal assessment known as the “Richmond Domain Perspective.” This assessment documented the purported rise of domestic extremism among those who hold conservative beliefs associated with a wide variety of Catholics. It also documented the investigation into two priests and the FBI’s surveillance of one of them. 

On January 20, 2025, President Trump signed Executive Order 14147 to eliminate the political weaponization of federal agencies. To many Americans, the Richmond Domain Perspective came to embody the misuse and weaponization of government power. 

After reviewing a substantial volume of internal emails, assessments, and investigative records, the Working Group concludes that the Biden FBI engaged in improper and unjustified law enforcement and intelligence activity, including:

• Agents made extensive inquiries into two priests and monitored their travel and communications. The FBI ultimately found no link to criminal activity or violent extremism.
• The FBI relied on biased and unverified materials, including Southern Poverty Law Center publications and foreign intelligence materials, without assessing their credibility. Internal reviews later concluded that the product improperly conflated religious doctrine with violent extremism and ignored First Amendment concerns.
• The FBI’s leadership took minimal corrective action after the Richmond Domain Perspective. Despite headquarters acknowledging the Perspective’s flaws, employees involved received positive performance reviews, and Richmond leadership openly defended their work. Staff continued refining the Perspective even after it was removed from FBI systems.

The FBI’s actions in 2023 were wrong. The Trump Administration, Attorney General Todd Blanche, and FBI Director Kash Patel are committed to addressing these abuses and preventing their recurrence.

• Executive Order 14147 directed the department to identify and remedy prior weaponization within the federal government. Pursuant to that authority, DOJ has removed key FBI personnel responsible for the Richmond Domain Perspective.
• To prepare this report, the Department reviewed over 1,800 pages of internal records. Attorney General Blanche has granted a limited waiver of privileged materials to allow the public to review the underlying documents.

“This Department of Justice will not tolerate a weaponized bureaucracy that chills First Amendment activity,” said Attorney General Todd Blanche. “The individuals who developed the Richmond Domain Perspective are no longer with the Department, and our Working Group’s efforts to investigate weaponization under the previous Administration will continue.”

“Weaponization will never be tolerated at this FBI,” said FBI Director Kash Patel. “Even while those who developed the unacceptable Richmond Catholic memo under the previous administration have been held accountable, releasing information to the public about what occurred under the prior regime is an important part of the process. I want to thank the Weaponization Working Group for their partnership as well as Attorney General Todd Blanche for his leadership addressing these abuses and making sure they never happen again.” 

“The weaponization of our Government undermines our Democracy and reduces the People’s trust in our Nation’s institutions that are designed to serve and protect them,” said Associate Attorney General Stanley E. Woodward, Jr. “The Richmond Memo was a clear abuse of power, targeting conservative and religious beliefs disfavored by agents of Government who lacked necessary oversight. No more. Under Attorney General Blanche’s leadership this Department will have zero tolerance for weaponization.”

The Justice Department remains committed to enforcing federal law in a manner consistent with the Constitution and its duty to protect the civil rights of all Americans. Individuals with additional concerns about similar conduct are encouraged to come forward; the Department will evaluate such matters without fear or favor.

Read the report here.

Today, the Department of Justice filed lawsuits against four states that seek to undermine federal law by placing aliens over citizens in clear defiance of Congress’s commands. The Department filed complaints against Arizona, New Mexico, Oregon, and Washington, challenging state laws that provide in-state tuition and financial assistance for illegal aliens. These laws unconstitutionally discriminate against U.S. citizens who are not afforded the same reduced tuition rates or scholarships, create incentives for illegal immigration, and reward illegal aliens with benefits that U.S. citizens are not eligible for, all in direct conflict with federal law.

“Over 30 years ago, Congress made clear that States cannot put illegal aliens before our Nation’s own citizens,” said Associate Attorney General Stanley E. Woodward, Jr. “By granting illegal aliens in-state tuition, Washington, Oregon, New Mexico, and Arizona are pushing citizens to the side and ignoring federal law. No more. As of today, we have now sued 21 states who we allege were thwarting Congress’s clear prohibition on placing aliens over citizens. Our efforts will not cease until President Trump’s promise is fulfilled: illegal aliens will not receive benefits denied to American citizens.”

“This is a simple matter of federal law: colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”

In the complaints, the United States seeks to enjoin enforcement of Arizona, New Mexico, Oregon, and Washington laws and regulations that require colleges and universities to provide in-state tuition rates for all aliens who maintain in-state residency, regardless of whether those aliens are lawfully present in the United States. Additionally, the complaint seeks to enjoin Arizona, New Mexico, Oregon, and Washington from enforcing their state laws and regulations that afford financial assistance and scholarships to illegal aliens.

The Arizona complaint, in particular, cites a report from Arizona Center for Investigative Reporting, which estimated that more than 3,600 illegal aliens per year could qualify for in-state tuition under Arizona’s law in the years to come. The same report includes data from Arizona public universities and colleges showing that in the Fall 2025 semester, at least 720 illegal aliens had received in-state tuition, including 432 at Arizona State University. Given the roughly $24,000 difference in resident versus out of state tuition rates at Arizona State, our complaint alleges that just last year, illegal aliens received roughly $10.5 million in reduced tuition at ASU alone.

Today’s four lawsuits bring the Department’s total to 21 lawsuits that challenge in-state tuition for illegal aliens. Under the leadership of Acting Attorney General Todd Blanche, the Department’s efforts have already delivered wins for the American people, as five similar lawsuits in Texas, Kentucky, Oklahoma, and Nebraska, and Illinois have resulted favorable orders permanently enjoining and declaring unconstitutional analogous laws that gave reduced tuition to illegal aliens, including an order from the Fifth Circuit. Lawsuits against other states that similarly put illegal aliens ahead of U.S. citizens are pending across the across the country in Minnesota, Virginia, California, New Jersey, Kansas, Massachusetts, Rhode Island, Maryland, Colorado, New York, Connecticut, and Vermont.