District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Chinese National Sentenced for Smuggling Turtles from the United States to Hong KongRead the Press Release
Sai Keung Tin, also known as Ricky Tin, was sentenced today to 30 months in prison for his role in smuggling protected turtles from the United States to Hong Kong. Tin pleaded guilty in December to four counts of exporting merchandise contrary to law.
According to the government’s filed sentencing memorandum and evidence presented during today’s hearing, Tin, a Chinese citizen, aided and abetted turtle smugglers in the United States from February 2018 to June 2023. During that time, Tin trafficked approximately 2,100 turtles to three addresses in Hong Kong for the illegal Asian pet trade. Based on a conservative, contemporary market valuation of $2,000 per turtle, the smuggled reptiles were valued at $4.2 million.
U.S. Fish and Wildlife Service (USFWS) agents arrested Tin on Feb. 25, 2024, on his arrival at John F. Kennedy International Airport in New York. On March 8, 2024, a grand jury indicted Tin on the present charges, which focused on four packages shipped in June 2023 containing 40 eastern box turtles. USFWS wildlife inspectors at an international mail facility in Torrance, California, intercepted the packages which were falsely labeled as containing almonds and chocolate cookies. Three of the packages contained between eight and 12 live eastern box turtles each, all bound in socks to restrict movement to avoid alerting authorities. The fourth package contained seven live eastern box turtles and one dead one.
Eastern box turtle seized from a package shipped to Hong Kong. Photo is from the sentencing memo in case U.S. v. Sai Keung Tin, No. 24-cr-00161 in U.S. District Court for the Central District of California. Credit: USFWSUSFWS agents obtained a search warrant to seize Tin’s cell phones, which indicated that Tin came to the United States to smuggle turtles. He planned to travel to New Jersey, Texas, and Washington — familiarizing himself with tourist locations to present a false story if apprehended. His ultimate plan was to pay for turtles in cash, ship turtles around the country, and eventually, illegally export them to Hong Kong. He had detailed information on how to soak turtles to reduce odors and bind them in socks with tape, all to avoid detection.
Tin was associated with international turtle smuggler Kang Juntao, of Hangzhou City, China, who was extradited from Malaysia in 2019 and later sentenced to prison after pleading guilty to money laundering. Kang caused at least 1,500 turtles — with a market value exceeding $2.25 million — to be shipped from the United States to Hong Kong, including to Tin.
Tin trafficked primarily eastern box turtles (Terrapene carolina carolina), a subspecies of the common box turtle and native to the United States. Turtles with colorful markings are highly prized pets, particularly in China and Hong Kong, and are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). China and the Unites States are parties to CITES.
Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), Acting U.S. Attorney Joseph T. McNally for the Central District of California, and Assistant Director Douglas Ault of the USFWS’ Office of Law Enforcement made the announcement.
The USFWS investigated this case with assistance from Customs and Border Protection and Homeland Security Investigations.
Senior Trial Attorney Ryan Connors and Trial Attorney Lauren Steele of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Dennis Mitchell for the Central District of California prosecuted the case.
Terry Cole Nominated to Key Post at the Drug Enforcement AdministrationRead the Press Release
The Department of Justice congratulates Terrance C. “Terry” Cole on his nomination to be the next Administrator of the Drug Enforcement Administration (DEA).
Terry Cole (DEA Administrator Nominee)
Mr. Cole has a distinguished record with over 28 years in law enforcement, most recently serving as Virginia’s Secretary of Public Safety and Homeland Security. Before this post, Mr. Cole served for over 20 years at the DEA, with tours in Oklahoma, New York, Texas, and Washington, D.C. While at the DEA, Mr. Cole also received several foreign assignments to Colombia, Afghanistan, Mexico, and the Middle East. Before joining the DEA, Mr. Cole served as a Naval Academy Blue and Gold Officer.
Mr. Cole graduated from the Rochester Institute of Technology with a B.A. in Criminal Justice and holds certificates in Leadership from the University of Viginia and the University of Notre Dame Mendoza School of Business. Mr. Cole has also pursued continuing education at the Massachusetts Institute of Technology (MIT) Sloan Executive School for Artificial Intelligence and Machine Learning.
Federal Task Force to Combat Antisemitism to Visit Leadership of Four Big Cities Rocked by Incidents of AntisemitismRead the Press Release
Today, the Federal Task Force to Combat Antisemitism notified the local leaders of New York City, Los Angeles, Chicago, and Boston that it wanted to meet soon to discuss their responses to incidents of antisemitism at schools and on college campuses in their cities over the last two years. The Task Force, created pursuant to President Trump’s Executive Order on Additional Measures to Combat Anti-Semitism, told the cities it wanted to engage with local leadership, including the mayors, district or city attorneys, and local law enforcement.
Leading Task Force member and Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell informed Eric Adams of New York, Karen Bass of Los Angeles, Brandon Johnson of Chicago, and Michelle Wu of Boston that the Task Force was aware of allegations that the schools in their respective cities may have failed to protect Jewish students from unlawful discrimination, in potential violation of federal law. Mr. Terrell said he intends for the Task Force to meet with city leadership, impacted students, local law enforcement, and community members as it gathers information about these incidents and considers whether federal intervention is warranted.
“Too many elected officials chose not to stand up to a rising tide of antisemitism in our cities and campuses following the horrific events of October 7, 2023,” said Attorney General Pamela Bondi. “Actions have consequences – inaction does, too.”
“The Task Force looks forward to meeting with the mayors and other municipal leaders in New York, Los Angeles, Chicago, and Boston to quickly and effectively identify ways that, working together or apart, we return safety, civility, and sanity to our nation’s schools,” said Mr. Terrell. “These meetings, in conjunction with our visits to university campuses around the country, are just two of the many actions President Trump and Attorney General Bondi are taking to end this scourge of anti-Semitism.”
If you have been discriminated against, you can file a complaint with the Civil Rights Division, at civilrights.justice.gov. President Trump’s Executive Order can be found here: Additional Measures to Combat Anti-Semitism – The White House.
HHS, DOJ Move to End Sexual Abuse and Harassment of Unaccompanied Alien Children in Shelters Operated by Southwest Key ProgramsRead the Press Release
The Department of Health and Human Services (HHS) announced today that it has stopped placement of unaccompanied alien children in shelters operated by Southwest Key Programs Inc. (Southwest Key) and has moved all children there to other shelters.
“This administration is working fearlessly to end the tragedy of human trafficking and other abuses of unaccompanied alien children who enter the country illegally,” said HHS Secretary Robert F. Kennedy Jr. “For too long, pernicious actors have exploited such children both before and after they enter the United States. Today’s action is a significant step toward ending this appalling abuse of innocents.”
Southwest Key has operated 27 residential shelters that provide temporary living arrangements for unaccompanied alien children in Texas, Arizona, and California, and has been the largest provider for such shelters for unaccompanied alien children in the United States. Southwest Key operates such shelters through grants from the HHS Office of Refugee Resettlement. Unaccompanied alien children are minors who enter the United States without parents or other legal guardians and without lawful immigration status in the United States.
In July 2024, the Department of Justice filed a civil lawsuit against Southwest Key, alleging that it had, through its employees, subjected unaccompanied alien children in its care to unlawful sexual harassment and abuse. Out of continuing concerns relating to these placements, HHS has decided to stop placement of unaccompanied alien children in Southwest Key facilities, and to review its grants with the organization. In view of HHS’s action, the Department of Justice has dismissed its lawsuit against Southwest Key.
“Securing our border and protecting children from abuse are among the most critical missions of the Department of Justice and the Trump administration,” said Attorney General Pamela Bondi. “Under the border policies of the previous administration, bad actors were incentivized to exploit children and break our laws: this ends now.”
Four Individuals Sanctioned for Forging Bankruptcy Petitions for a Dead Person in Scheme to Obtain Real PropertyRead the Press Release
The U.S. Trustee Program (USTP) recently obtained sanctions against four individuals connected to the filing of fraudulent bankruptcy petitions bearing forged signatures of a dead person in a scheme to stall a foreclosure and gain possession of real property.
On Feb. 20, the U.S. Bankruptcy Court for the Northern District of Georgia granted the U.S. Trustee’s motion for sanctions against Emanuel Clark, Charles Freeman Jr., Patrick Iverson and Jacquelyn Duffy. Based on evidence presented by the U.S. Trustee’s Atlanta office, the court found that the four individuals presented or were responsible for presenting four forged bankruptcy petitions in the name of a person who had died more than a year earlier. Each of the four successive petitions halted a scheduled foreclosure sale on the dead person’s property, which had been fraudulently deeded postmortem to a company controlled by Clark. The court further found that the four individuals knowingly engaged in a fraud on the court and entered an order prohibiting them from presenting further bankruptcy petitions to the court unless they are the named debtor or the named debtor’s attorney.
In its order, the bankruptcy court also credited the U.S. Trustee with identifying “a system of fraud and abuse” in the four cases as well as several other petitions presented for filing by Clark, Freeman, Iverson, and Duffy. The four individuals “intentionally engaged in a pattern and practice of filing forged or suspicious property deeds and presenting skeletal pro se petitions to the court for improper purposes, often in the name of deceased persons.” Additionally, the order noted that Clark and Freeman were serial abusive filers of bankruptcy petitions in their own names.
“These four swindlers abused the bankruptcy system in an attempt to fraudulently obtain property in the wake of the owner’s death and to obstruct a creditor from exercising its rights,” said Mary Ida Townson, U.S. Trustee for Region 21, which includes the Northern District of Georgia. “We will aggressively pursue bad-faith actors such as these to preserve the system for Americans who legitimately need relief.”
The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Florida Businessman Patrick Walsh and Affiliated Companies Agree to $20M Consent Judgment to Settle False Claims Act Liability Relating to Fraudulent Pandemic Relief LoansRead the Press Release
Patrick Walsh and 10 companies he owned or operated have agreed to enter into a consent judgment totaling $20,074,458.70 to resolve allegations that they violated the False Claims Act by knowingly providing false information in support of Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) loan applications. The 10 companies for which Walsh obtained fraudulent loans include American Blimp Company LLC; Walsh Family Land Corp.; Airsign Inc.; Airsign Airship Group LLC; Airsign Group LLC; Airsign Airships Latin America LLC; Airsign Airships Asia Pacific LLC; Airsign Airships Repair Station LLC; Aero Capital LLC; and Eagle Ridge Management Group LLC doing business as Shiloh Oil Company.
Congress created the PPP loan program and expanded access to the EIDL program in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency loans to small businesses suffering economic hardship due to the COVID-19 pandemic. The PPP, administered by the U.S. Small Business Administration (SBA), was designed to provide low-interest, forgivable loans to applicants to help fund certain permissible expenses for qualifying businesses amidst the COVID‑19 pandemic, which included payroll costs, interest on mortgages, rent, and utilities. The EIDL program, also administered by the SBA, provides low-interest loans to small businesses in regions affected by declared disasters. PPP loans were guaranteed by the SBA, and EIDL loans were direct loans made by the SBA. To qualify under either program, a corporate representative submitted a loan application that, among other things, stated the number of the entity’s employees and certified that the borrower was an operating business that would use loan proceeds for eligible business expenses.
In this case, Walsh entered into a civil settlement in which he admitted to submitting PPP and EIDL loan applications on behalf of the companies listed above that provided false information about the companies’ employee rosters and payrolls. Some of the entities for which Walsh submitted loan applications were dormant or inactive. Walsh submitted additional EIDL applications in his wife’s name on behalf of certain corporations. In total, Walsh received approximately $7.8 million in fraudulent loans on behalf of various corporate entities. Walsh used those loan proceeds for impermissible personal purposes, including the purchase of a private island, investment in Texas oil interests, and paying off personal debts. When Walsh defaulted on the PPP loans, the SBA paid the lenders in full pursuant to its guarantee obligations. The SBA also paid for certain interest and processing fee expenses incurred by the lenders related to the loans. Under the terms of the consent judgment, Walsh and the companies he owned or operated have agreed to the entry of judgments against them totaling $20,074,458.70.
In January 2023, Walsh pleaded guilty to one count of wire fraud and one count of money laundering in connection with the fraudulent loans and was sentenced to 66 months in federal prison, which he is currently serving. The court also ordered him to pay $7.8 million in restitution and entered a forfeiture order in the same amount.
“PPP and EIDL loans were intended to help small businesses during the pandemic,” said Acting Assistant Attorney General Yaakov M. Roth of the Justice Department’s Civil Division. “The department is committed to holding accountable those who undermined the purpose of these programs by knowingly obtaining and retaining loan proceeds for which they were not eligible.”
“Today’s civil resolution and the previously imposed 66-month period of incarceration should serve as a significant deterrent to others like the defendant who would attempt to steal millions of dollars from the American people and exploit Federal relief programs,” said Acting United States Attorney Michelle Spaven for the Northern District of Florida. “The Northern District of Florida is committed to protecting government programs from fraud, and we will hold those accountable who steal from the American taxpayers.”
“This settlement is a victory over bad actors seeking to exploit taxpayer-funded programs,” said Wendell Davis, General Counsel for the U.S. Small Business Administration. “SBA is committed to vigorously protecting the hard-earned money of the American people and ensuring that those who fraudulently obtain those funds are held accountable.”
The civil settlement stems from a whistleblower complaint filed in 2020 by Andrew Hersh, who performed information technology services for Walsh. The qui tam provisions of the False Claims Act permit private persons to bring a lawsuit on behalf of the government and to share in the proceeds of the suit. The qui tam lawsuit is captioned United States ex rel. Andrew Hersh v. Patrick Walsh et al., No. 1:20‑cv‑231 (N.D. Fla.). The amount that Mr. Hersh will receive as a share of the recovery has not yet been determined.
The resolution obtained in this matter was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of Florida, with assistance from the SBA’s Office of General Counsel and the SBA’s Office of Inspector General.
The claims resolved by the settlement are allegations only, except for the matters admitted in Walsh’s guilty plea.
Savanna Police Officer Sentenced to 40 Years After First Guilty Verdict Obtained Under 2022 Reauthorization of the Violence Against Women Act Enhanced PenaltiesRead the Press Release
A federal judge sentenced former Savanna Oklahoma Police Officer (SPD), Jeffrey Scott Smith, 35, to 40 years in prison for sexually assaulting a woman during a traffic stop and obstructing justice by turning off his body-worn camera and dash camera in an effort to avoid recording the assault. This case represents the first sexual assault conviction and sentence under the 2022 Reauthorization of the Violence Against Women Act that added enhanced penalties for civil rights offenses involving sexual misconduct.
Evidence presented at trial established that on Nov. 2, 2022, Smith, working his first solo shift for SPD, conducted a traffic stop of the victim, K.H., and her then-boyfriend, J.G. After running their licenses, Smith realized that J.G.’s license had recently expired. He had J.G. and K.H. get out of J.G.’s car to switch who was driving. Smith issued J.G. a speeding ticket, and then began asking personal questions, including how long they had been in their relationship. At this point, while still speaking to J.G. and K.H., Smith manually deactivated his SPD body worn camera (BWC).
Smith then asked K.H. what she did for work. K.H. reluctantly admitted that she danced at a gentlemen’s club. Upon hearing K.H.’s answer, Smith asked to search J.G.’s car. During the search, Smith looked in K.H.’s purse and found a pre-rolled promotional marijuana cigarette from K.H.’s work. Rather than arrest her, or issue her a ticket, Smith walked back to his patrol car and manually deactivated his dashboard camera. Once the defendant had K.H. in his vehicle he sexually assaulted her.
“Smith’s despicable acts traumatized the victim and soiled the reputation of the law enforcement community,” said United States Attorney Christopher J. Wilson for the Eastern District of Oklahoma. “The sentence imposed is just punishment, and I am thankful to the FBI, the OSBI, and the prosecutors for their exceptional work in holding the defendant accountable for his crimes.”
“The entire law enforcement profession is disparaged when an officer betrays the oath to protect and serve. That is exactly what Mr. Smith did on his first solo shift as a police officer,” said Special Agent in Charge Doug Goodwater of the FBI Oklahoma City Field Office. “I am proud of the joint effort by the FBI, OSBI, and US Attorney’s Office to hold Smith accountable for his despicable actions. The sentence handed down today represents our commitment to pursuing justice for victims, and to protecting the reputation of those who wear the badge with integrity.”
The Oklahoma City FBI Field Office investigated the case with the assistance of the Oklahoma State Bureau of Investigation.
Trial Attorney Laura Gilson of the Civil Rights Division and Assistant U.S. Attorneys Nicole Paladino and Clay Compton for the Eastern District of Oklahoma prosecuted the case.
Eight Individuals Plead Guilty to Wide-Ranging Scheme to Monopolize Transmigrante Forwarding Industry, Fix Prices, Extort Competitors, and Launder MoneyRead the Press Release
The U.S. Department of Justice today announced that eight defendants have pleaded guilty for their conduct in a long-running and violent conspiracy to monopolize the transmigrante forwarding agency industry in the Los Indios, Texas, border region near Harlingen and Brownsville, Texas. The three remaining defendants to the superseding indictment remain at large as fugitives. Transmigrantes are individuals who transport used vehicles and other goods from the United States through Mexico for resale in Central America. Transmigrante forwarding agencies are U.S.-based businesses that provide services to transmigrante clients, including helping those clients complete the customs paperwork required to export vehicles into Mexico.
“The Criminal Division is committed to holding violent criminal organizations accountable in whatever markets in which they operate,” said Matthew R. Galeotti, head of the Justice Department’s Criminal Division. “Transnational criminal organizations that use violence to dominate industries will be prosecuted to the fullest extent of the law.”
“These guilty pleas bring to justice individuals who used violence and extortion to fix prices and monopolize the market for essential services that Americans rely on to earn a living,” said Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “The Antitrust Division will continue to use every tool at its disposal to protect the public by prosecuting violent criminals – including those who aim to corrupt America’s free markets.”
“Price fixing harms both the public and the business community,” said U.S. Attorney Nicholas J. Ganjei for the Southern District of Texas. “Schemes like this artificially drive up prices, forcing consumers to pay more than they ordinarily would. At its core, such market collusion is nothing more than theft from consumers.”
“These defendants tried to rule through fear, using threats, violence and intimidation to eliminate competition,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “Their guilty pleas send a clear message that price fixing and market allocation are serious crimes, and we will hold those accountable who put profits over the law and fair commerce.”
“Today’s pleas reflect the relentlessness of the federal government’s pursuit of transnational criminal organizations that exploit international trade and the U.S. economy,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “This violent scheme was fueled by greed that undermined the safety and economic security of the border region; HSI has prioritized significant resources to protect the U.S. and our legitimate trade.”
According to documents filed in the U.S. District Court in Houston, defendants Carlos Martinez also known as “Cuate,” Pedro Antonio Calvillo Hernandez, Roberto Garcia Villareal, Sandra Guerra Medina, and Mireya Miranda pleaded guilty to one count of conspiracy to fix prices and allocate the market for transmigrante forwarding agency services in violation of Section 1 of the Sherman Act, and one count of conspiracy to monopolize the same market in violation of Section 2 of the Sherman Act. The conspirators fixed the prices for transmigrante forwarding agency services and created a centralized entity known as the “Pool” to collect and divide revenues among the conspirators, limit competition from other agencies, and increase prices for their services. Market participants who were not part of the conspiracy had to join and pay into the Pool. Pool members enforced the rules of the Pool by monitoring whether forwarding agencies were charging the agreed-upon prices, including by posting prices publicly on social media, and monitoring whether agencies were paying into the Pool as required.
Martinez, Calvillo, Villareal, and Carlos Yzaguirre pleaded guilty to one count of conspiracy to interfere with commerce by extortion. Martinez also pleaded guilty to one count of interference with commerce by extortion. The defendants conspired to force forwarding agencies to pay money to the Pool and to pay other extortion fees, including a “piso” for every transaction processed in the industry as well as a “fine” for operating in the market outside of Pool rules. The conspirators perpetrated acts of intimidation, coercion, and violence in furtherance of the antitrust and extortion conspiracies. Defendant Martinez was responsible for at least $9.5 million in extortion payments.
Martinez and Jose de Jesus Tapia Fernandez also pleaded guilty to a money laundering conspiracy, through which they laundered extortion proceeds. Cash obtained from the extortion conspiracy was deposited into bank accounts controlled by Martinez and his family, and those deposits were made to conceal and disguise the nature, source, ownership, and control of the proceeds. Juan Hector Ramirez Avila pleaded guilty to one count of structuring a financial transaction to evade reporting requirements.
Martinez agreed to forfeit four real properties and $375,000 in seized U.S. currency, to pay a fine, and to pay full restitution to extortion victims. Guerra, Miranda, Calvillo, and Villareal have also agreed to pay fines as part of their plea agreements.
Rigoberto Brown and Miguel Hipolito Caballero Aupart, and Diego Ceballos-Soto were also charged in the superseding indictment and remain fugitives. Anyone with information about their whereabouts is asked to contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
Conspiracies to allocate the market, fix prices, or monopolize in violation of the Sherman Act carry a maximum penalty of 10 years’ imprisonment and a maximum $1 million fine for an individual. Conspiracy to interfere with commerce by extortion in violation of the Hobbs Act carries a maximum penalty of 20 years’ imprisonment and a maximum $250,000 fine. Money laundering conspiracy carries a maximum penalty of 20 years’ imprisonment and a maximum $500,000 fine. Structuring a financial transaction to evade reporting requirements carries a maximum penalty of five years’ imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Justice Department’s Antitrust Division, the Criminal Division’s Violent Crime and Racketeering Section (VCRS), the U.S. Attorney’s Office for the Southern District of Texas, HSI, and the FBI are investigating the case.
Trial Attorneys Brittany E. McClure, Anne Veldhuis, and Michael G. Lepage of the Antitrust Division, Trial Attorney Christina Taylor of VCRS, and Assistant U.S. Attorney Alexander L. Alum for the Southern District of Texas are prosecuting the case.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.
Medical Clinic Owners and Clinical Investigator Plead Guilty in Connection with Fraudulent Clinical Drug TrialsRead the Press Release
Two owners of a clinical research facility pleaded guilty today in the U.S. District Court for the Southern District of Florida to conspiracy to commit wire fraud in connection with their work on two clinical trials testing drugs designed to treat asthma.
According to court documents, Angela Baquero, 49, and Ricardo Acuna, 52, both of Weston, Florida, owned A&R Research Group (A&R), located in Pembroke Pines, Florida. A&R was a medical research facility that conducted clinical trials of prospective new drug treatments on behalf of drug sponsors seeking approval from the U.S. Food and Drug Administration (FDA). Baquero served as A&R’s clinical research director and study coordinator. Acuna served as A&R’s regulatory and contract affairs manager.
Pursuant to their plea agreements, Baquero and Acuna admitted to conspiring to unlawfully enrich themselves by making fraudulent representations to the asthma drug trial sponsor regarding subject eligibility, and falsifying and fabricating material documents and data, including case histories, spirometry readings, and echocardiogram data. As a result of the conspiracy, A&R provided fraudulent clinical research data to the drug trial sponsor and to an FDA investigator. According to the plea agreements, fraudulently enrolling subjects who did not qualify, and submitting data for subjects who were not participating, allowed A&R to inflate payments due from the sponsor.
“Clinical trials are essential to evaluating the safety and efficacy of potential drug treatments,” said Acting Assistant Attorney General Yaakov Roth of the Justice Department’s Civil Division. “The Justice Department will continue to work with the FDA to investigate and prosecute those who illegally undermine the integrity of the clinical trial process to facilitate fraudulent payments.”
The guilty pleas by Baquero and Acuna follow a March 3 guilty plea to a separate criminal information by Dr. Matthew Teltser, 70, of Hollywood, Florida, who served as the clinical investigator for numerous A&R clinical trials. Teltser pleaded guilty to making false statements to an FDA investigator regarding his work on the trials. According to his plea agreement, Teltser was the clinical investigator responsible for performing physical examinations on subjects and maintaining accurate records of data pertinent to the clinical trial. Teltser admitted that, during an FDA inspection, he knowingly and falsely told the FDA investigator that he had been present at every subject visit during the two asthma clinical trials.
Baquero and Acuna’s matters are set for further hearings before U.S. District Judge David S. Leibowitz on Sept. 19. Teltser is scheduled to be sentenced by U.S. District Judge Raag Singhal on June 10. Each defendant faces a maximum penalty of five years in prison.
FDA’s Office of Criminal Investigations, Miami Field Office, investigated the case.
Trial Attorneys Andrew K. Crawford and Brianna M. Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The United States Attorney’s Office for the Southern District of Florida has provided critical assistance.
Notorious Violent Mexican Cartel Leader Sentenced to Life Plus 30 Years in Prison for International Drug Trafficking and Firearms OffensesRead the Press Release
A U.S.-Mexican dual national and co-founder of the Cartel de Jalisco Nueva Generación (CJNG) — an international drug trafficking organization — was sentenced today in the District of Columbia to a term of life in prison plus 30 years to run consecutively for his role in a major drug trafficking conspiracy and ordered to forfeit over $6 billion of drug trafficking proceeds.
“This defendant helped build Cartel de Jalisco Nueva Generacion into a brutal terrorist organization that pumps poison onto our streets and commits horrific acts of violence,” said Attorney General Pamela Bondi. “Thanks to the DEA, U.S. Marshals Service, and the Narcotic and Dangerous Drug Section of the DOJ’s Criminal Division, he will now spend his life behind bars.”
“Today’s sentencing is a victory for the dedicated men and women in federal law enforcement who have made it their lives’ work to dismantle and degrade the cartels in Mexico,” said Acting Administrator Derek S. Maltz of the Drug Enforcement Administration (DEA). “Menchito was not only extremely violent, he was also one of the earliest architects of fentanyl trafficking that led to the deadliest chapter of the synthetic opioid crisis, and responsible for flooding the country with methamphetamine. This country is undoubtedly safer now that he will spend the rest of his life in federal prison. Let this be a warning to members of CJNG, its associates, and the other cartels that DEA’s work is far from over. Americans are depending on us to continue to fight evil and dismantle the cartels.”
According to court documents, Ruben Oseguera-Gonzalez, known as El Menchito, 34, led the CJNG for nearly seven years in Mexico and oversaw the importation of multi-tonnage quantities of drugs into the United States. In addition to other CJNG operations, Oseguera-Gonzalez is responsible for trafficking more than 50 metric tons of cocaine and supervising drug labs that produced more than 1,000 metric tons of methamphetamine in Mexico. In 2013, Oseguera-Gonzalez was one of the first contributors to the fentanyl epidemic in the United States, pledging to “do it big” and build an empire from counterfeit oxycontin pills laced with fentanyl.
According to court documents, along with his father, Nemesio Oseguera Cervantes, known as El Mencho and who remains a fugitive, Oseguera-Gonzalez founded the CJNG, which is based in Jalisco, Mexico, and is arguably the most prolific and most violent cartel in Mexico today. For instance, Oseguera-Gonzalez backed CJNG’s criminal drug trafficking empire with an arsenal of weapons and by committing and directing heinous acts of violence. He brutally killed five people who owed him drug money and personally shot a rival cartel member and a subordinate. He carried firearms, including a rifle and grenade launcher that bore his moniker, which he used to threaten Mexican law enforcement upon his arrest. Oseguera-Gonzalez also directed the 2015 attack on a Mexican military helicopter that was pursuing Oseguera-Gonzalez and his father, the top leader of the CJNG. The helicopter was shot down, allowing Oseguera-Gonzalez and his father to evade capture while killing at least nine Mexican service members and permanently disfiguring at least one other. Additionally, according to statements made in court and trial testimony, Oseguera-Gonzalez ordered the murder of more than 100 people, some of which he murdered himself.
The DEA Los Angeles Field Division investigated the case with the assistance of the U.S. Marshals Service. The Justice Department’s Office of International Affairs provided critical assistance with securing the February 2020 extradition of Oseguera-Gonzalez and facilitating important evidence. The Criminal Division’s Office of Enforcement Operations provided significant assistance. The Justice Department thanks Mexican authorities for their assistance with this important prosecution.
Trial Attorneys Jonathan Hornok, Lernik Begian, and Douglas Meisel, and former Trial Attorneys Kaitlin Sahni and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Justice Department Dismisses Suit Against Denka, Delivering on President Trump’s Mandate to End Radical DEI ProgramsRead the Press Release
Today, the Justice Department, on behalf of the Environmental Protection Agency (EPA), dismissed a lawsuit against Denka Performance Elastomer LLC (Denka) concerning its neoprene manufacturing facility in LaPlace, Louisiana. The dismissal fulfills President Trump’s day one executive order, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” signed to eliminate ideological overreach and restore impartial enforcement of federal laws. Concurrently, EPA withdrew its referral of the case to the Justice Department to align with Administrator Lee Zeldin’s pledge to end the use of “environmental justice” as a tool for advancing ideological priorities.
The lawsuit, originally filed by the Biden Administration on Feb. 28, 2023, relied on the Clean Air Act’s rarely invoked “Emergency Powers” provision (42 U.S.C. § 7603). That statute authorizes EPA to seek immediate restraints on pollution sources presenting “an imminent and substantial endangerment” to public health or the environment. In an effort to satisfy this standard, the Biden-era complaint alleged a marginally increased risk of harm after prolonged exposure. The complaint did not allege that emissions from Denka’s LaPlace plant violated any regulatory air quality standard. The prior administration framed the case as part of its “ongoing effort to advance environmental justice in overburdened communities.” The Biden Administration EPA used its EJScreen tool to define such areas partly by the percentage of “people of color” present — a clear example of the racial preferencing now prohibited by President Trump’s executive order.
“Today’s dismissal reflects ENRD’s renewed commitment to enforce environmental laws as Congress intended — consistently, fairly and without regard to race,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “We do not regulate through litigation, nor do we stretch statutes beyond their plain meaning to advance political agendas.”
“The dismissal of this case is a step toward ensuring that environmental enforcement is consistent with the law,” said EPA Administrator Lee Zeldin. “While EPA’s core mission includes securing clean air for all Americans, we can fulfill that mission within well-established legal frameworks, without stretching the bounds of the law or improperly implementing so-called ‘environmental justice’.”
Denka’s LaPlace facility produces neoprene, a synthetic rubber essential for products like orthopedic braces, wetsuits and automotive components. Following a 2017 settlement with the State of Louisiana, Denka invested over $35 million to cut chloroprene emissions by 85 percent. Despite this progress, the Biden Administration sought a preliminary injunction to halt operations, a request effectively denied when the court deferred a hearing on the preliminary injunction to the bench trial.
On Feb. 21, ENRD reinstated enforcement principles which require that complaints be “well founded in existing law,” avoid “regulation by litigation,” and “seek relief authorized by . . . law.” By ending United States v. Denka, the Justice Department and EPA are delivering on President Trump’s promise to dismantle radical DEI programs and restore integrity to federal enforcement efforts.
DOJ, HHS, ED, and GSA Announce Initial Cancelation of Grants and Contracts to Columbia University Worth $400 MillionRead the Press Release
Today, the Department of Justice (DOJ), Department of Health and Human Services (HHS), Department of Education (ED), and the U.S. General Services Administration (GSA) announced the immediate cancellation of approximately $400 million in federal grants and contracts to Columbia University due to the school’s continued inaction in the face of persistent harassment of Jewish students. These cancellations represent the first round of action and additional cancellations are expected to follow. The Task Force is continuing to review and coordinate across federal agencies to identify additional cancellations that could be made swiftly. DOJ, HHS, ED, and GSA are taking this action as members of the Joint Task Force to Combat Anti-Semitism. Columbia University currently holds more than $5 billion in federal grant commitments.
On March 3rd, the Task Force notified the Acting President of Columbia University that it would conduct a comprehensive review of the university’s federal contracts and grants in light of ongoing investigations under Title VI of the Civil Rights Act. Chaos and anti-Semitic harassment have continued on and near campus in the days since. Columbia has not responded to the Task Force.
"After the horrors of October 7th, Jewish students were shamefully targeted on American college campuses—including at Columbia University," said Attorney General Pamela Bondi. "Any university which fails to account for the discrimination of its students will not be tolerated. Comply with federal anti-discrimination laws and take action to protect students or expect consequences.”
“Since October 7, Jewish students have faced relentless violence, intimidation, and anti-Semitic harassment on their campuses – only to be ignored by those who are supposed to protect them,” said Secretary of Education Linda McMahon. “Universities must comply with all federal antidiscrimination laws if they are going to receive federal funding. For too long, Columbia has abandoned that obligation to Jewish students studying on its campus. Today, we demonstrate to Columbia and other universities that we will not tolerate their appalling inaction any longer.”
President Trump has been clear that any college or university that allows illegal protests and repeatedly fails to protect students from anti-Semitic harassment on campus will be subject to the loss of federal funding.
“Freezing the funds is one of the tools we are using to respond to this spike in anti-Semitism. This is only the beginning,” said Leo Terrell, Senior Counsel to the Assistant Attorney General for Civil Rights and head of the DOJ Task Force to Combat Anti-Semitism. “Cancelling these taxpayer funds is our strongest signal yet that the Federal Government is not going to be party to an educational institution like Columbia that does not protect Jewish students and staff.”
The decisive action by the DOJ, HHS, ED, and GSA to cancel Columbia’s grants and contracts serves as a notice to every school and university that receives federal dollars that this Administration will use all the tools at its disposal to protect Jewish students and end anti-Semitism on college campuses.
“Anti-Semitism is clearly inconsistent with the fundamental values that should inform liberal education,” said Sean Keveney, HHS Acting General Counsel and Task Force member. “Columbia University’s complacency is unacceptable.”
GSA will assist HHS and ED in issuing stop-work orders on grants and contracts that Columbia holds with those agencies. These stop-work orders will immediately freeze the university’s access to these funds. Additionally, GSA will be assisting all agencies in issuing stop work orders and terminations for contracts held by Columbia University.
“Doing business with the Federal Government is a privilege,” said Josh Gruenbaum, FAS Commissioner and Task Force member. “Columbia University, through their continued and shameful inaction to stop radical protestors from taking over buildings on campus and lack of response to the safety issues for Jewish students, and for that matter - all students - are not upholding the ideals of this Administration or the American people. Columbia cannot expect to retain the privilege of receiving federal taxpayer dollars if they will not fulfill their civil rights responsibilities to protect Jewish students from harassment and anti-Semitism.”
For more information, read the HHS, ED, and GSA joint press release from Monday, March 3rd.
Michigan Businessman Found Guilty of Employment Tax CrimesRead the Press Release
A federal jury convicted a Michigan businessman yesterday for not paying employment taxes and not filing his own individual income tax returns.
According to court documents and evidence presented at trial, Dale Thrush, of Farwell, owned and operated several automotive repair service locations and a gas station. Thrush was responsible for withholding Social Security, Medicare and income taxes from his employees’ wages and paying those funds over to the IRS on behalf of his employees. From October 2014 through December 2016, Thrush withheld those funds from his employees’ wages but did not pay over the full amount of the withheld taxes to the IRS. Instead, Thrush used some of those funds to pay personal expenses, including the remodeling and construction costs for his wife’s business.
In addition, Thrush did not file his own individual income tax returns for 2013 through 2016 despite being legally obligated to do so.
Thrush was convicted of three counts of willful failure to pay payroll taxes and four counts of willful failure to file individual income tax returns. He was acquitted of seven counts of willful failure to pay payroll taxes.
Thrush is scheduled to be sentenced on July 17. He faces a maximum penalty of five years in prison for each count of not paying employment taxes and a maximum penalty of one year in prison for each count of not filing his individual income tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Mark McDonald and Evan Mulbry of the Tax Division are prosecuting the case.
Health Care Providers and Laboratory Marketers Agree to Pay over $1.9 Million to Settle Kickback AllegationsRead the Press Release
View the settlement agreement.
Gerald Congdon, M.D., of Pawleys Island, South Carolina; Gbenga Aluko, M.D., of Charlotte, North Carolina; and Anup Banerjee, M.D., of Gastonia, North Carolina, and their medical practices; as well as Curis Healthcare Inc., of Chicago, Illinois, Omar Hussain, of South Miami, Florida, and Saeed Medical Group Ltd. doing business as Alliance Immediate and Primary Care of Chicago, Illinois, agreed to pay a total of $1,913,808 to resolve alleged False Claims Act violations arising from their involvement in laboratory kickback schemes. The parties have agreed to cooperate with the Department of Justice’s investigations of other participants in the alleged schemes.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, TRICARE, and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that health care providers received kickbacks in return for their referrals to a laboratory in Anderson, South Carolina, and that a marketer and his marketing company received kickbacks from that South Carolina laboratory to arrange for laboratory testing referrals, in violation of the Anti-Kickback Statute. The kickbacks allegedly resulted in the submission of false or fraudulent laboratory testing claims to Medicare and TRICARE in violation of the False Claims Act.
- Dr. Gerald Congdon, Coastal Urgent Care LLC, and Coastal Wellness Center LLC. Dr. Congdon and his medical practices in Pawleys Island and Myrtle Beach, South Carolina, agreed to pay $400,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
- Dr. Gbenga Aluko and Eagle Medical Center PC. Dr. Aluko and his medical practice in Charlotte, North Carolina, agreed to pay $250,000 to resolve allegations that from May 2016 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental, phlebotomy, and toxicology payments from the South Carolina laboratory in return for ordering testing.
- Dr. Anup Banerjee and Gastonia Medical Specialty Clinic P.A. Dr. Banerjee and his medical practice in Gastonia, North Carolina, agreed to pay $206,000 to resolve allegations that from April 2017 to November 2021, they received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments from the South Carolina laboratory in return for ordering testing.
- Omar Hussain and Curis Healthcare Inc. Hussain and his marketing company agreed to pay $817,808 to resolve allegations that from April 2020 to August 2021, Hussain and his company received commissions from the South Carolina laboratory as independent contractors based on the volume and value of the Medicare and TRICARE referrals for laboratory testing that they arranged for and recommended.
- Saeed Medical Group Ltd., Omar Hussain, and Curis Healthcare Inc. Saeed Medical Group and Hussain and his marketing company agreed to pay $240,000 to resolve allegations that from April 2020 to August 2021, Saeed Medical Group received thousands of dollars in remuneration in the form of cash payments from Hussain and his company in return for ordering testing from the South Carolina laboratory.
“Integrity must be the standard in our health care system,” said Acting U.S. Attorney Brook B. Andrews for the District of South Carolina. “Kickback schemes divert funds and focus away from patients and their medical needs.”
“The public puts immense trust in medical professionals, and disdain for the rule of law damages that trust and erodes their credibility,” said Special Agent in Charge Steve Jensen of the FBI Columbia Field Office. “These settlements should serve as a reminder that the FBI and its partners are committed to holding medical practitioners accountable for kickbacks.”
“Kickback schemes undermine medical decision-making and jeopardize the integrity of federally funded health care programs,” said Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our commitment is to safeguard taxpayer-funded health care and the patients who rely on it, and we will rigorously pursue any allegations of False Claims Act violations.”
“The trust of the American taxpayer and the wellbeing of our service members are undermined when laboratories and physicians engage in collusive financial relationships,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “DCIS will continue to work with our law enforcement partners to bring to justice medical providers who illegally enrich themselves by prioritizing kickbacks over patient care.”
The settlements were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of South Carolina, with assistance from HHS-OIG, DCIS, and the FBI. The settlements announced today were handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Beth C. Warren for the District of South Carolina. The United States previously resolved allegations that physicians in South Carolina, North Carolina, and Texas received kickbacks from the same South Carolina laboratory.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
U.S. Justice Department Launches Investigation of University of California Under Title VII of the Civil Rights Act of 1964Read the Press Release
The Federal Task Force to Combat Anti-Semitism announced that the Justice Department has opened a civil pattern or practice investigation into the University of California (UC) under Title VII of the Civil Rights Act of 1964. The investigation will assess whether UC has engaged in a pattern or practice of discrimination based on race, religion and national origin against its professors, staff and other employees by allowing an Antisemitic hostile work environment to exist on its campuses.
“This Department of Justice will always defend Jewish Americans, protect civil rights, and leverage our resources to eradicate institutional Antisemitism in our nation’s universities,” said Attorney General Pamela Bondi.
“Our country has witnessed a disturbing rise of Antisemitism at educational institutions in California and nationwide,” said Acting Associate Attorney General and Department of Justice Chief of Staff Chad Mizelle. “The Department of Justice is committed to upholding Title VII of the Civil Rights Act and protecting Jewish Americans as we investigate this potential pattern of discrimination.”
Leading Task Force member and Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell said, “Following the October 7, 2023 Hamas terror attacks in Israel, there has been an outbreak of antisemitic incidents at leading institutions of higher education in America, including at my own alma mater at the UCLA campus of UC. The impact upon UC’s students has been the subject of considerable media attention and multiple federal investigations. But these campuses are also workplaces, and the Jewish faculty and staff employed there deserve a working environment free of antisemitic hostility and hate. The President, the Attorney General and this Task Force are committed to combatting antisemitism for all Jewish Americans.”
The employment discrimination investigation will be conducted pursuant to Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination on the basis of race, color, national origin, sex, and religion. Under Title VII, the Justice Department has the authority to initiate investigations against state and local government employers where it has reason to believe that a “pattern or practice” of employment discrimination exists.
Collaboration between the Justice Department and other federal agencies plays an important role in combating antisemitism in schools and college campuses. The Department coordinates with other federal agencies as part of the multi-agency Task Force to Combat Anti-Semitism, as well as when sharing enforcement jurisdiction with other agencies. For state and local governments and related entities like public universities, the Department of Justice shares enforcement authority under Title VII with the Equal Employment Opportunity Commission (EEOC). The EEOC receives, investigates, and conciliates EEOC charges against state- and local-government employers, before referring those charges to the Civil Rights Division of the Department of Justice for potential litigation.
“The EEOC is committed to partnering with the Department of Justice to stamp out the scourge of anti-Semitism on campus workplaces,” said EEOC Acting Chair Andrea Lucas.
If you have been discriminated against, you can file a complaint with the Civil Rights Division, at Contact the Civil Rights Division | Department of Justice (https://civilrights.justice.gov). If you work for an university or college and have experienced anti-Semitic harassment at work, you can file a charge with the EEOC, at How to File a Charge of Employment Discrimination | U.S. Equal Employment Opportunity Commission (https://www.eeoc.gov/how-file-charge-employment-discrimination). Learn more about addressing anti-Semitism at work here: What To Do If You Face Antisemitism at Work.
President Trump’s Executive Order can be found here: Additional Measures to Combat Anti-Semitism – The White House.
West Virginia Ambulance Business Owner Sentenced for Tax CrimesRead the Press Release
A West Virginia man was sentenced yesterday to three years in prison for not paying the taxes withheld from employees’ wages at an ambulance service he operated and obstructing the IRS’ efforts to collect those taxes.
According to court documents and evidence presented in court, from 2012 through part of 2017, Christopher Jason Smyth operated Stat EMS LLC, an ambulance service located in Pineville. Smyth created Stat EMS after a previous ambulance business Smyth operated accrued millions of dollars of employment tax liabilities and filed for bankruptcy. Smyth caused Stat EMS to be founded in the name of a nominee owner but continued operating the business in the same manner as before.
At Stat EMS, Smyth was responsible for withholding Social Security, Medicare and income taxes from employees’ wages and paying them to the IRS. For years, however, Smyth did not fully pay the taxes to the IRS. Instead, he paid various personal expenses and transferred funds to businesses held by his friends and family. The IRS determined that Stat EMS accrued approximately $3.3 million in unpaid taxes.
Eventually, the IRS assessed the unpaid taxes against Smyth personally and attempted to collect those assessments from him. When interviewed by an IRS revenue officer attempting to collect Smyth’s unpaid tax debts, Smyth stated that he had no personal bank accounts and denied that he used anyone else’s. In reality, however, he regularly deposited his paychecks into an account in a relative’s name. He also attempted to mislead the revenue officer by representing that he had nothing to do with several other businesses, even though he had signature authority over their bank accounts.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Acting U.S. Attorney Lisa G. Johnston for the Southern District of West Virginia made the announcement.
IRS Criminal Investigation investigated the case.
Assistant Chief David Zisserson and Trial Attorneys Kavitha Bondada and Andrew Ascencio of the Tax Division, along with Assistant U.S. Attorney Erik Goes for the Southern District of West Virginia, prosecuted the case.
Attorney General Pamela Bondi Intervenes in Lawsuit Against Illinois for Unlawfully Requiring Nonprofits to Publicly Post Race Based DataRead the Press Release
Today, Attorney General Pamela Bondi moved to intervene in American Alliance for Equal Rights v. Bennett. The lawsuit challenges Illinois’ first in the nation law that requires nonprofits to publicly disclose demographic information, such as race, ethnicity, gender, sexual orientation, and gender identity, of its officers and directors.
The intent of the statute is to encourage nonprofits to discriminate under the guise of making nonprofit boards more “diverse.” President Trump and Attorney General Bondi are dedicated to ending DEI and restoring merit-based opportunity nationwide, and in all sectors.
Today’s intervention is an early step toward eradicating illegal race and sex preferences across the government. “The United States cannot and will not sit idly while a state denies its citizens equal protection under the guise of diversity,” said Attorney General Bondi. “Discrimination in all its forms is abhorrent and must be eliminated. The Department of Justice will continue to exercise its statutory right to intervene in cases whenever a state encourages DEI instead of merit.”
“This is a case of immense public importance because, as the Supreme Court recognized, ending ‘discrimination means eliminating all of it,’” said Acting Associate Attorney General Chad Mizelle. “This intervention seeks to eliminate discrimination via DEI and ensure the Constitution’s guarantee of equal protection is enforced.”
Justice Department Files Statement of Interest in Religious Land Use Case in Clarion, Pennsylvania, Alleging Unequal Treatment of Religious Assembly UsesRead the Press Release
The Justice Department filed a statement of interest today in the Western District of Pennsylvania supporting a lawsuit brought by the Hope Rising Community Church, which alleges that the Borough of Clarion’s zoning code violates the Religious Land Use and Institutionalized Persons Act (RLUIPA).
The statement of interest was filed in Hope Rising Community Church v. Borough of Clarion, a lawsuit alleging that the Borough violated RLUIPA by enacting and enforcing zoning provisions that treat religious uses less favorably than similar secular assemblies. The lawsuit alleges that the Church has outgrown its current facility and that the only suitable property in the Borough is located in the Borough’s C-2 Commercial District. This District does not allow houses of worship, but permits nonreligious assembly uses like theaters and civic/cultural buildings. When the Church approached the Borough about using the property for religious purposes, Borough officials allegedly told the Church that the Borough would not grant zoning approval and that the Borough did not “need any more Churches.”
“Congress enacted RLUIPA to ensure that zoning ordinances treat religious assemblies on par with nonreligious assemblies,” said Deputy Assistant Attorney General Mac Warner of the Justice Department's Civil Rights Division. “Zoning codes that prohibit religious uses while permitting comparable secular uses violate RLUIPA. Central to the Civil Rights Division’s mission is combatting religious discrimination and ensuring that houses of worship receive equal treatment under the law. We will continue to protect the foundational right of all Americans to religious freedom.”
The Borough filed a motion to dismiss the Church’s lawsuit, arguing in part that the Church had failed to properly allege an equal terms claim under RLUIPA and that the Church was not sufficiently injured by the Borough’s conduct to assert such a claim. The Department’s statement of interest refutes these contentions, explaining that the Church has properly alleged an equal terms claim and that the Church, which cannot develop its proposed religious facility, has suffered a concrete injury.
RLUIPA is a federal law that protects persons and religious institutions from unduly burdensome, unequal or discriminatory land use regulations. More information about RLUIPA and the Department’s efforts to enforce it can be found on the Place to Worship Initiative’s webpage.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the online RLUIPA complaint portal.
Justice Department Files Statement of Interest Supporting Access to Places of WorshipRead the Press Release
The Department of Justice announced today that it has filed a statement of interest in federal court in California to promote the correct and uniform interpretation of federal law protecting access to places of religious worship. The case involves allegations that a violent mob used violence, intimidation, and threats to prevent congregants from accessing the Adas Torah Synagogue. The statement of interest is part of the Department’s nationwide efforts to promote freedom of religious worship and combat antisemitism in all of its forms.
“Every person should be free to worship and attend religious services without fear of violence, threats, or intimidation,” said Deputy Assistant Attorney General for Civil Rights Mac Warner. “The Civil Rights Division is working vigorously to combat antisemitism using all of the tools at our disposal.”
As part of that effort, the Department of Justice recently announced the formation of a multi-agency task force coordinated by the Civil Rights Division to combat antisemitism, which is visiting 10 university campuses that have experienced antisemitic events.
In this case, private plaintiffs sued CodePink Women for Peace, CodePink Action Fund, WESPAC Foundation, Honor the Earth, Courtney Lenna Schirf, Remo Ibrahim, doing business as Palestinian Youth Movement, and various unnamed individuals. They allege that these organizations and individuals violated provisions of the Freedom of Access to Clinic Entrances Act (FACE Act) that protect access to places of religious worship. The United States’ Statement of Interest addresses physical obstructions of places of religious worship.
“Members of our Jewish community should not have to think about their safety when they go to worship,” said Acting U.S. Attorney Joseph McNally for the Central District of California. “We make clear today that federal law prohibits people from obstructing access to places of worship.”
To learn more about the Civil Rights Division visit www.justice.gov/crt, and to report possible violations of federal civil rights laws go to www.civilrights.justice.gov or call toll-free at 800-253-3931.
High-Ranking Member of Violent Mexican Drug Cartel Pleads Guilty to Drug Trafficking ConspiracyRead the Press Release
A Mexican national and high-ranking, violent member of the Los Zetas cartel pleaded guilty today to conspiring to manufacture and distribute large quantities of cocaine and marijuana destined for the United States.
According to court documents, Jaime Gonzalez-Duran, also known as Hummer, 49, was an original member of Los Zetas, a drug trafficking organization comprised of former Mexican military officers that began as an armed militaristic wing of the Gulf Cartel. Los Zetas later formed an alliance with the Gulf Cartel, and they collectively operated under the name “The Company.” Gonzalez-Duran, a high-ranking member of Los Zetas, served as a plaza boss in the city of Miguel Aleman, Mexico, controlling the Company’s drug-trafficking activities in and through that area, and, later, as a regional commander in the cities of Nuevo Laredo, Miguel Aleman, and Reynosa, Mexico, supervising dozens of Los Zetas members in the region. In his roles, Gonzalez-Duran bribed law enforcement officers to ensure drug loads would not be disturbed; maintained weapons, explosives, and ammunitions caches; and committed acts of violence against rival drug trafficking groups during conflicts for control over drug plazas and trafficking routes. Gonzalez-Duran was personally responsible for the importation into the United States of more than 450 kilograms of cocaine and 90,000 kilograms of marijuana.
Gonzalez-Duran pleaded guilty to conspiracy to manufacture and distribute cocaine and marijuana for unlawful importation into the United States from Mexico. He is scheduled to be sentenced on June 6 and faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division and Drug Enforcement Administration (DEA) Special Agent in Charge Daniel C. Comeaux of the Houston Field Division made the announcement.
The DEA Houston Field Division investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and October 2022 extradition of Gonzalez Duran.
Trial Attorneys Tara Arndt and Jayce Born and Acting Deputy Chief Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
The case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strength of federal, state, and local enforcement agencies.
Federal Task Force to Combat Antisemitism Announces Visits to 10 College Campuses that Experienced Incidents of AntisemitismRead the Press Release
The Federal Task Force to Combat Anti-Semitism announced that it will be visiting 10 university campuses that have experienced antisemitic incidents since October 2023. Created pursuant to President Trump’s Executive Order on Additional Measures to Combat Anti-Semitism, the Task Force set as its first priority to eradicate antisemitic harassment in schools and on college campuses.
Leading Task Force member and Senior Counsel to the Assistant Attorney General for Civil Rights Leo Terrell informed the 10 universities yesterday that the Task Force was aware of allegations that the schools may have failed to protect Jewish students and faculty members from unlawful discrimination, in potential violation of federal law. Mr. Terrell said he intends for the Task Force to meet with university leadership, impacted students and staff, local law enforcement, and community members as it gathers information about these incidents and considers whether remedial action is warranted.
“The President, Attorney General Pamela Bondi, and the entire Administration are committed to ensuring that no one should feel unsafe or unwelcome on campus because of their religion,” said Mr. Terrell. “The Task Force’s mandate is to bring the full force of the federal government to bear in our effort to eradicate Anti-Semitism, particularly in schools. These visits are just one of many steps this Administration is taking to deliver on that commitment.”
The 10 universities identified by the Task Force are: Columbia University; George Washington University; Harvard University; Johns Hopkins University; New York University; Northwestern University; the University of California, Los Angeles; the University of California, Berkeley; the University of Minnesota; and the University of Southern California.
If you have been discriminated against, you can file a complaint with the Civil Rights Division at civilrights.justice.gov. President Trump’s Executive Order can be found at www.whitehouse.gov/presidential-actions/2025/01/additional-measures-to-combat-anti-semitism/.
Colorado Dentist Pleads Guilty to Multiple Tax Evasion ChargesRead the Press Release
A Colorado dentist pleaded guilty today to six counts of tax evasion related to his use of an illegal tax shelter.
According to court documents and statements made in court, since 2014, Ryan Ulibarri owned and operated Ulibarri Family Dentistry in Fort Collins, Colorado. In 2016, Ulibarri purchased an abusive-trust tax shelter for $50,000. The tax shelter involved concealing income and creating false tax deductions through the use of a so-called business trust, family trust, charitable trust and a private family foundation, all of which Ulibarri created and controlled. From 2017 through 2022, Ulibarri used this tax shelter to conceal from the IRS over $3.5 million in income he earned from his dental practice.
To set up the tax shelter, Ulibarri, as the purported trustee, signed trust instruments purporting to create the three trusts and foundation, and he opened bank accounts in the name of each. He further recruited friends to falsely sign his trust instruments as the purported creators of the trusts. Ulibarri then transferred majority ownership of his dental practice to the business trust. Ulibarri did this despite having been warned by attorneys and CPAs that, in Colorado, a trust could not own a dental practice.
He then transferred over $3 million he earned from his dental practice into the bank accounts of the various trusts and foundation to create the illusion that the funds belonged to those entities. In reality, Ulibarri retained complete control over the funds and used the funds to pay for personal expenses including his home mortgage, credit card bills, boats and professional baseball season tickets. Finally, he filed false tax returns for himself, his dental practice, the trusts and foundation that falsely reported the income he earned from his dental practice as income of the trusts. On those tax returns Ulibarri also claimed fraudulent deductions for his personal living expenses which he disguised as trust expenses and charitable donations.
In total, Ulibarri is alleged to have caused a tax loss to the IRS of over $1 million.
Ulibarri is scheduled to be sentenced on June 17. He faces a maximum penalty of five years in prison for each count of tax evasion as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Special Agent in Charge Amanda Prestegard of IRS Criminal Investigation’s Denver Field Office made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Amanda R. Scott and Lauren K. Pope and Assistant Chief Andrew J. Kameros of the Tax Division are prosecuting the case.
Attorney General Pamela Bondi and Acting Deputy Attorney General Emil Bove Phone Call with Son of DEA Special Agent Enrique “Kiki” CamarenaRead the Press Release
Today, Attorney General Pamela Bondi and Acting Deputy Attorney General Emil Bove held a powerful and emotional phone call with Judge Enrique Camarena, son of DEA Special Agent Enrique “Kiki” Camarena. In 1985, Special Agent Camarena was abducted, tortured, and killed. His alleged killer, Rafael Caro Quintaro, was among the 29 wanted defendants taken into U.S. custody yesterday, who will now face prosecution under U.S. law.
“President Trump and I are committed to holding every member of the cartels accountable for their crimes and to bring justice to the family of each and every victim,” said Attorney General Pamela Bondi. “It was truly an honor to speak with Judge Camarena to express my sincere condolences for the loss of his father and assure him that we will be relentless in our pursuit of justice in this case.”
Statement provided by the Camarena family:
“Today is a day we have long awaited. Forty long years of waiting, wondering, and hoping that justice would finally come. After four decades, the person responsible for taking our beloved Kiki from us has been brought to the United States to answer for what he did.
“There are no words to fully describe the pain we have endured: the empty seat at the dinner table, the birthdays, and holidays without him. The life that was stolen, not just from him, but from all of us who loved him. We have lived with this loss every single day.
“For 14,631 days, we held on to hope — hope that this moment would come. Hope that we would live to see accountability. And now, that hope has finally turned into reality. While no amount of time can erase the pain or bring back what we lost, today marks a step toward justice.
“We want to thank the DEA, law enforcement agencies, investigators, and officials— both in the United States and abroad — who never gave up.
“We want to thank President Trump for using the weight of this country to accomplish what we thought would never occur. Thank you to everyone who has worked on this case for 40 years. We don't know all of you but please know that you have our family's deepest thanks and appreciation.
“To those who have stood by us, supported us, celebrated Red Ribbon Week with us and carried us through the darkest moments — our extended family, friends, and even strangers who have shared in our grief — we are forever grateful.”
Attorney General Pamela Bondi Releases First Phase of Declassified Epstein FilesRead the Press Release
Today, Attorney General Pamela Bondi, in conjunction with the Federal Bureau of Investigation (FBI), declassified and publicly released files related to convicted sex offender Jeffrey Epstein and his sexual exploitation of over 250 underage girls at his homes in New York and Florida, among other locations. The first phase of declassified files largely contains documents that have been previously leaked but never released in a formal capacity by the U.S. Government.
“This Department of Justice is following through on President Trump’s commitment to transparency and lifting the veil on the disgusting actions of Jeffrey Epstein and his co-conspirators,” said Attorney General Pamela Bondi. “The first phase of files released today sheds light on Epstein’s extensive network and begins to provide the public with long overdue accountability.”
“The FBI is entering a new era—one that will be defined by integrity, accountability, and the unwavering pursuit of justice,” said FBI Director Kash Patel. “There will be no cover-ups, no missing documents, and no stone left unturned — and anyone from the prior or current Bureau who undermines this will be swiftly pursued. If there are gaps, we will find them. If records have been hidden, we will uncover them. And we will bring everything we find to the DOJ to be fully assessed and transparently disseminated to the American people as it should be. The oath we take is to the Constitution, and under my leadership, that promise will be upheld without compromise.”
Attorney General Bondi requested the full and complete files related to Jeffrey Epstein. In response, the Department received approximately 200 pages of documents, however, the Attorney General was later informed of thousands of pages of documents related to the investigation and indictment of Epstein that were not previously disclosed. The Attorney General has requested the FBI deliver the remaining documents to the Department by 8:00 AM on February 28 and has tasked FBI Director Kash Patel with investigating why the request for all documents was not followed.
The Department remains committed to transparency and intends to release the remaining documents upon review and redaction to protect the identities of Epstein’s victims.
A copy of Attorney General Bondi’s letter can be downloaded here.
Links to released documents below:
- A. Evidence List
- B. Flight Log_Released in U.S. v. Maxwell
- B. Flight Log_Released in U.S. v. Maxwell_Part1
- B. Flight Log_Released in U.S. v. Maxwell_Part2
- B. Flight Log_Released in U.S. v. Maxwell_Part3
- B. Flight Log_Released in U.S. v. Maxwell_Part4
- B. Flight Log_Released in U.S. v. Maxwell_Part5
- B. Flight Log_Released in U.S. v. Maxwell_Part6
- C. Contact Book_Redacted
- D. Masseuse List_Redacted
Attorney General Pamela Bondi Announces 29 Wanted Defendants from Mexico Taken into U.S. CustodyRead the Press Release
Today, the United States secured custody of 29 defendants from Mexico who are facing charges in districts around the country relating to racketeering, drug-trafficking, murder, illegal use of firearms, money laundering, and other crimes. The defendants taken into U.S. custody today include leaders and managers of drug cartels recently designated as Foreign Terrorist Organizations and Specially Designated Global Terrorists, such as the Sinaloa Cartel, Cártel de Jalisco Nueva Generación (CJNG), Cártel del Noreste (formerly Los Zetas), La Nueva Familia Michoacana, and Cártel de Golfo (Gulf Cartel). These defendants are collectively alleged to have been responsible for the importation into the United States of massive quantities of poison, including cocaine, methamphetamine, fentanyl, and heroin, as well as associated acts of violence.
“As President Trump has made clear, cartels are terrorist groups, and this Department of Justice is devoted to destroying cartels and transnational gangs,” said Attorney General Pamela Bondi. “We will prosecute these criminals to the fullest extent of the law in honor of the brave law enforcement agents who have dedicated their careers — and in some cases, given their lives — to protect innocent people from the scourge of violent cartels. We will not rest until we secure justice for the American people.”
“The FBI and our partners will scour the ends of the earth to bring terrorists and cartel members to justice,” said FBI Director Kash Patel. “The era of harming Americans and walking free is over.”
“Today’s actions are a consequence of a White House that negotiates from a position of strength, and an Attorney General who is willing to lead the Department with courage and ferocity,” said Acting Deputy Attorney General Emil Bove. “By prosecuting these defendants to the maximum extent allowable under the law, we honor the memory of Special Agent Camarena, Deputy Sherrif Byrd, and other victims who are far too numerous, as well as decades of hard work in the trenches by our law enforcement partners.”
“Today, 29 fugitive cartel members have arrived in the United States from Mexico, including one name that stands above the rest for the men and women of the DEA — Rafael Caro Quintero. Caro Quintero, a cartel kingpin who unleashed violence, destruction, and death across the United States and Mexico, has spent four decades atop DEA’s most wanted fugitives list, and today we can proudly say he has arrived in the United States where justice will be served,” said DEA Acting Administrator Derek S. Maltz. “This moment is extremely personal for the men and women of DEA who believe Caro Quintero is responsible for the brutal torture and murder of DEA Special Agent Enrique "Kiki" Camarena. It is also a victory for the Camarena family. Today sends a message to every cartel leader, every trafficker, every criminal poisoning our communities: You will be held accountable. No matter how long it takes, no matter how far you run, justice will find you.”
Many of the defendants were subject to longstanding U.S. extradition requests that were not honored during the prior Administration, but that the Mexican government elected to transfer to the current U.S. government in response to the Justice Department’s efforts pursuant to President Trump’s directive in Executive Order 14157, entitled Designating Cartels and Other Organizations as Foreign Terrorist Organizations and Specially Designated Global Terrorists, to pursue total elimination of these Cartels. Federal prosecutors will evaluate whether additional terrorism and violence charges are appropriate based on the policy set forth in Executive Order 14157, and whether capital punishment is available based on Executive Order 14164, entitled Restoring the Death Penalty and Protecting Public Safety, as well as the Attorney General’s Feb. 5 guidance regarding the death penalty.
- Rafael Caro Quintero, who is alleged to have been among those responsible for the 1985 murder of DEA agent Enrique “Kiki” Camarena and others.
- Martin Sotelo, who is alleged to have participated in the 2022 murder of Deputy Sheriff Ned Byrd.
- Antonio Oseguera Cervantes, who allegedly helped lead CJNG and is reportedly the brother of Nemesio Oseguera Cervantes, also known as “El Mencho.”
- Ramiro Perez Moreno and Lucio Hernandez Lechuga, who are alleged to be high-ranking members of Los Zetas.
A complete list of defendants, as well as districts where they are charged and will appear in federal court in the coming days:
Mexico Defendants
NameArraignment
Jurisdiction
Statutory Maximum1CANOBBIO-INZUNZA, Jose AngelNorthern District IllinoisUp to life imprisonment2.VALENCIA GONZALEZ, NorbertoNorthern District of IllinoisUp to life imprisonment3.MARIN SOTELO, Alder, also known as “Alder Marin-Sotelo” and “Alder Alfonso Marin”Middle District of North Carolina
North Carolina State Court
Federal: Maximum 10 years imprisonment
State: Maximum of life imprisonment or death
4.CRUZ SANCHEZ, EvaristoSouthern District of TexasUp to life imprisonment5.GARCIA VILLANO, also known as “La Kena,” “19,” and “Ciclone 19”Southern District of TexasUp to life imprisonment6.HERNANDEZ LECHUGA, LucioEastern District of TexasUp to life imprisonment7.PEREZ MORENO, RamiroEastern District of TexasUp to life imprisonment8.RODRIGUEZ DIAZ, Miguel Angel, also known as "Metro"Eastern District of TexasUp to life imprisonment9.VILLARREAL HERNANDEZ, Jose RodolfoNorthern District of TexasDeath or life imprisonment10.CARO QUINTERO, RafaelEastern District of New YorkDeath or life imprisonment11.CARRILLO FUENTES, VicenteEastern District of New YorkDeath or life imprisonment12.CABRERA CABRERA, Jose BibianoDistrict of ArizonaUp to life imprisonment13.CLARK, AndrewCentral District of CaliforniaDeath or life imprisonment14.INFANTE, Hector EduardoCentral District of CaliforniaUp to life imprisonment15.LIMON LOPEZ, Jesus HumbertoDistrict of ArizonaUp to life imprisonment16.TAPIA QUINTERO, Jose GuadalupeDistrict of ArizonaUp to life imprisonment17.TORRES ACOSTA, Inez EnriqueSouthern District of CaliforniaUp to life imprisonment18.GALAVIZ VEGA, JesusWestern District of TexasUp to life imprisonment19.MENDEZ ESTEVANE, Luis GeraldoWestern District of TexasDeath or life imprisonment20.MONSIVAIS TREVINO, Carlos AlbertoWestern District of TexasUp to life imprisonment21.ALGREDO VAZQUEZ, CarlosDistrict of ColumbiaUp to life imprisonment22.LOPEZ IBARRA, RodolfoDistrict of ColumbiaUp to life imprisonment23.OSEGUERA CERVANTES, AntonioDistrict of ColumbiaUp to life imprisonment24.RANGEL BUENDIA, AlfredoDistrict of ColumbiaUp to life imprisonment25.TREVINO MORALES, Miguel Angel, also known as "Z-40"District of ColumbiaUp to life imprisonment26.TREVINO MORALES, Omar, also known as "Z-42")District of ColumbiaUp to life imprisonment27.VALENCIA SALAZAR, ErickDistrict of ColumbiaUp to life imprisonment28.MENDEZ VARGAS, JesusSouthern District of New YorkUp to life imprisonment29.PALACIOS GARCIA, ItielSouthern District of New YorkUp to life imprisonmentAttorney General Pamela Bondi thanked the law enforcement officers of the Drug Enforcement Administration, FBI, U.S. Marshal’s Service, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, and Hidalgo County Sheriff’s Office for their valuable contributions to these investigations.
The Attorney General also thanked the Justice Department Criminal Division’s Narcotic and Dangerous Drug Section and its Office of International Affairs, and the U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Southern District of California, the District of Columbia, Middle District of North Carolina, Northern District of Illinois, Eastern District of New York, Southern District of New York, Northern District of Texas, Eastern District of Texas, Southern District of Texas, and Western District of Texas for handling the prosecutions of these cases.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ohio Company Pleads Guilty in Worker Death CaseRead the Press Release
A Delaware corporation with a manufacturing facility in Ohio pleaded guilty today in federal court in the Southern District of Ohio to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge is related to an incident where an employee was killed when a pneumatic door closed on his head.
Fabcon Precast LLC (Fabcon) operates several facilities in the United States, including one in Grove City, Ohio, that manufactures precast concrete panels. At Fabcon, employees known as batch operators were responsible for the operation and cleaning of the facility’s only concrete mixer. Concrete was discharged from the bottom of the mixer through a pneumatic door. By design, the mixer had an exhaust valve that released the pneumatic energy powering the discharge door, rendering it inoperable. Some months prior to June 6, 2020, the handle that operated the valve broke off and was not replaced.
On June 6, 2020, Zachary Ledbetter, 20, a batch operator since January 2020, was on duty when the discharge door failed to close after releasing a batch of concrete. Because the valve was broken, Ledbetter could not perform the proper procedure to make the door safe to work around. When he attempted to free the door it closed on his head, trapping him. Eventually, Ledbetter was freed and transported to a hospital where he died five days later.
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.
Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division, Acting U.S. Attorney Kelly A. Norris for the Southern District of Ohio, and Acting Special Agent-in-Charge Megan Howell of the Department of Labor’s Office of Inspector General, Great Lakes Region, made the announcement.
The Department of Labor’s Office of Inspector General investigated the case.
Senior Trial Attorney and Special Assistant U.S. Attorney Adam Cullman, of the Environment and Natural Resources Division’s Environmental Crimes Section and for the Southern District of Ohio respectively, prosecuted the case.
Florida Financial Advisor Pleads Guilty to Promoting Illegal Tax Shelter and Stealing Client FundsRead the Press Release
A Florida man pleaded guilty today to orchestrating a nearly decade-long scheme to promote an illegal tax shelter and commit wire fraud. He also pleaded guilty to assisting in the preparation of false tax returns for tax shelter clients.
According to court documents and statements made in court, Stephen T. Mellinger III, of Delray Beach, was a financial advisor, insurance salesman, and securities broker operating in Florida, Michigan, Mississippi, and elsewhere. Beginning in late 2013, Mellinger conspired with others to promote an illegal tax shelter whereby clients would claim false tax deductions for so-called “royalty payments” to fraudulently reduce their taxes.
In reality, as Mellinger knew, the “royalty payments” were merely a circular flow of money designed to give the appearance of genuine business expenses. Typically, a client would send money to bank accounts controlled by Mellinger and other co-conspirators, who then sent the money — less a fee — right back to a different bank account that the client controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns.
In total, Mellinger and his co-conspirators helped clients prepare tax returns that claimed over $106 million in false tax deductions, which caused a tax loss to the IRS of approximately $37 million.
Mellinger and a co-conspirator who was a relative, collectively earned approximately $3 million in fees from promoting the scheme.
In January 2016, Mellinger learned that several of his clients were being investigated and that the United States had started seizing their funds. Mellinger and a relative subsequently stole more than $2.1 million of funds from some of those clients, some of which he used to buy a home in Delray Beach.
Mellinger is scheduled to be sentenced on Sept. 16, and faces a maximum penalty of five years in prison for conspiring to defraud the IRS and commit wire fraud, and three years in prison for aiding in the preparation of false tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, Supervisory Official Antoinette T. Bacon of the Justice Department's Criminal Division, and Acting U.S. Attorney Patrick A. Lemon for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service are investigating the case.
Trial Attorneys Richard J. Hagerman, William Montague, and Matthew Hicks of the Tax Division, Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi, and Trial Attorneys Emily Cohen and Jasmin Salehi Fashami of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.
Attorney General Pam Bondi Dismisses DEI Lawsuits Involving Police Officers and Firefighters, Advances President Trump’s Mandate to End Illegal DEI PoliciesRead the Press Release
This week, Attorney General Pam Bondi directed the Department of Justice’s Civil Rights Division to dismiss lawsuits against various jurisdictions across the country involving the hiring of police officers and firefighters. These lawsuits, launched by the previous administration, unjustly targeted fire and police departments for using standard aptitude tests to screen firefighter and police officer candidates.
“American communities deserve firefighters and police officers to be chosen for their skill and dedication to public safety – not to meet DEI quotas,” said Attorney General Bondi.
Despite no evidence of intentional discrimination — only statistical disparities — the prior administration branded the aptitude tests at issue in these cases as discriminatory in an effort to advance a DEI agenda. And it sought to coerce cities into conducting DEI-based hiring in response and spending millions of dollars in taxpayer funds for payouts to previous applicants who had scored lower on the tests, regardless of qualifications.
President Trump and Attorney General Bondi are dedicated to ending illegal discrimination and restoring merit-based opportunity nationwide, and in all sectors. But doing so is particularly important for front-line public-safety workers who protect our nation, including firefighters and police officers. Prioritizing DEI over merit when selecting firefighters and police officers jeopardizes public safety.
Today’s dismissal is an early step toward eradicating illegal DEI preferences across the government and in the private sector.
Lab Operator Convicted of $4M Medicare Fraud SchemeRead the Press Release
A federal jury in Detroit convicted a California man today for his role in defrauding Medicare of over $4 million in fraudulent claims for medically unnecessary urine drug testing for patients receiving pain management treatment.
According to court documents and evidence presented at trial, Sherif Khalil, 50, of Redondo Beach, conspired with others to submit claims to Medicare for the highest-reimbursing urine drug testing panels, which doctors did not want or order.
Sherif Khalil operated Spectra Clinical Labs, a toxicology lab located in Gardena, California. As the owner of Spectra, Khalil implemented a scheme to pay marketers a percentage of Medicare reimbursements and incentivize them to obtain doctors’ orders for expensive drug testing panels. Khalil concealed Spectra’s payments to marketers by routing the payments through nominally independent marketing companies that Khalil secretly controlled. To maximize Spectra’s profits and their own commission payments, Spectra’s marketers then trained staff members at doctors’ offices to send Spectra orders for medically unnecessary urine drug tests that doctors did not actually want or authorize. Khalil also knew that orders Spectra received from physician practices were not supported by documentation of medical necessity.
The medically unnecessary laboratory tests ordered in exchange for illegal kickbacks to marketers caused Medicare to pay more than $4 million to the Spectra Clinical Labs.
Khalil was found guilty of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and to pay, offer, receive, and solicit health care kickbacks. Khalil is scheduled to be sentenced on Aug. 7 and faces a maximum penalty of 20 years in prison on the conspiracy to commit health care fraud and wire fraud count and five years in prison on the count for conspiracy to defraud the United States and to pay, offer, receive, and solicit health care kickbacks. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys S. Babu Kaza, Jeffrey A. Crapko, and Kelly Warner and Assistant Chief Shankar Ramamurthy of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Citizen from the People’s Republic of China Sentenced for Conspiracy to Transport Illegal AliensRead the Press Release
Saipan – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Kangle Jiang, age 22, citizen of the People’s Republic of China, was sentenced to 30 days imprisonment by the District Court for the Northern Mariana Islands for Conspiracy to Transport Illegal Aliens, in violation of 18 U.S.C. § 1324(a)(1)(A)(ii) and (v)(I) and Conspiracy to Defraud the United States, in violation of 18 § U.S.C. 37. The court also ordered one year of supervised release, 50 hours of community service, and a $100 special assessment fee.
On December 9, 2024, Kangle Jiang conspired with a man in Saipan to transport himself and seven other Chinese nationals to the Territory of Guam by boat. They intended to avoid detection by law enforcement to further their unlawful presence in the United States. Jiang, who had only been in the CNMI since October 31, 2024, paid $6,000 for the illegal trip to Guam. As the boat approached the shore, the boat’s operators pushed and threatened the passengers to jump into the water, even though some of them could not swim. Most of the passengers were later encountered in or near sensitive military installations.
“Combatting unlawful immigration is the top priority of the Department of Justice,” stated United States Attorney Anderson. “The defendant took advantage of unique federal immigration regulations that permit certain foreign nationals to visit the CNMI as tourists. Any local economic benefits from these provisions are lost when those persons later attempt to unlawfully enter another part of the United States. The defendant and his co-conspirators also placed themselves and others at great risk of personal harm due to the nature of their travel at sea. Our enforcement efforts will continue to focus on safety, deterrence, and maintaining the integrity of our immigration system in the Western Pacific.”
“The arrest of Mr. Jiang exemplifies HSI’s commitment to enforcing federal immigration laws in an effort to prevent human smuggling,” said HSI Special Agent in Charge Lucy Cabral-DeArmas. “By going after violators like Mr. Jiang, we protect our communities by trying to prevent the inherent dangers posed by smuggling.”
This case was investigated by Homeland Security Investigations and prosecuted by Eric S. O’Malley, Assistant United States Attorney in the District of the Northern Mariana Islands.
Attorney General Pamela Bondi Urges States to Comply with Federal Law by Keeping Men Out of Women’s SportsRead the Press Release
Today, Attorney General Pamela Bondi issued letters to officials in California, Maine, and Minnesota warning them to comply with federal antidiscrimination laws that require them to keep men out of women’s sports.
“This Department of Justice will defend women and does not tolerate state officials who ignore federal law,” said Attorney General Pamela Bondi. “We will leverage every legal option necessary to ensure state compliance with federal law and President Trump’s executive order protecting women’s sports.”
As President Trump’s recent executive order on this subject explains, allowing men and boys to compete in women’s and girls’ sports “is demeaning, unfair, and dangerous to women and girls.” The practice is also illegal under federal law: it denies women and girls the equal opportunity to participate and excel in competitive sports, in violation of Title IX of the Educational Amendments Act of 1972.
Richmond fraudster sentenced to four years in prison for using false documents to take possession of vacant propertiesRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced to four years in prison for mail fraud relating to his scheme to acquire real estate properties through forgeries and filing false documents.
According to court documents, from August of 2019 through September of 2022, Ali Mif Bey, formerly Richard Lewis Miffin, 45, engaged in a scheme to fraudulently transfer title and ownership of real estate properties from the legitimate owners to himself and entities affiliated with and controlled by Bey. Bey, a self-proclaimed member of the Moorish sovereign citizen movement, identified and targeted properties to unlawfully deed to himself and to entities that were either fictitious or alter egos of Bey, or entities that he operated and controlled and for which he served as the registered agent. The properties Bey targeted were generally in pre-foreclosure or foreclosure. In some instances, the owners were deceased and the properties were subject to probate court proceedings.
Bey created fraudulent property deeds purporting to convey ownership. Bey also forged or caused to be forged the signatures of the legitimate owners of the properties onto the fraudulent deeds he created without the property owners' knowledge and consent. Bey would have the fraudulent deeds notarized, typically at UPS stores, to give them the appearance of legitimacy and to satisfy the recording requirements of county recorders. Bey filed the fraudulent deeds with either the Richmond Circuit Court Clerk's Office, the Henrico County Circuit Court Clerk's Office, or the Chesterfield County Circuit Court Clerk's Office.
On more than one occasion, Bey attempted to purchase foreclosed properties at auction using fraudulent money orders purportedly backed by and redeemable at the United States Treasury.
At one auction, Bey signed a memorandum of sale and submitted for payment a fraudulent money order in the amount of $250,000. After discovering the fraudulent nature of the money order, the law firm handling the foreclosure sale sent Bey a letter prohibiting Bey from bidding on any future sale held by the law firm, and the law firm scheduled another auction for the property. In response, Bey mailed a letter to the law firm demanding that the firm stop the auction and asserting that Bey would file another lien on a related third party and would seek to enforce a lien previously filed against the law firm if the sale continued.
Bey appeared at another auction, signed the entry sheet, and brought with him a fraudulent money order for $250,000. As part of the check-in process for auction participants, Bey presented the money order to an employee of the auction. Because of the suspicious appearance of the money order and Bey's behavior, however, he was not allowed to participate in the auction.
After fraudulently deeding the properties to himself, Bey used various means to attempt to stop the legitimate owners or custodians of those properties from completing lawful transfers of the properties. Bey would occupy, possess, repurpose, and/or rent the properties for his personal gain. Typically, he would change the locks on the properties, display a flag associated with the Moorish sovereign citizen movement, post written ''No Trespassing" notices on the properties, and arrange public utility services for the properties. Bey personally occupied and resided in at least one of the properties that he fraudulently acquired. Bey listed some of the properties for rent. His tenants were unaware that Bey was not the legitimate owner of the properties and had no authority to offer them for rent.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Thomas A. Garnett and former Assistant U.S. Attorney Kashan K. Pathan prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:24-cr-14.
Armed Drug Cartel Member Sentenced to over 20 Years in Prison for Trafficking Hundreds of Kilos of Cocaine and MethamphetamineRead the Press Release
A Mexican national and armed member of the Cártel de Jalisco Nueva Generación (CJNG) was sentenced today in the District of Columbia to 20 years and 10 months in prison for his role in a conspiracy that distributed large quantities of cocaine and methamphetamine destined for the United States.
“For at least five years, Edgar Fabian Villasenor-Garcia took up arms to carry out the CJNG’s criminal activities, including trafficking enormous amounts of cocaine and methamphetamine into the United States,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “These highly addictive drugs and the violence associated with the CJNG’s criminal operations have devastated communities in the United States, Mexico, and elsewhere. Today’s sentence sends another clear message to members of the CJNG and other Mexican drug trafficking organizations: We are committed to working tirelessly with our domestic and international law enforcement partners to eradicate Mexican cartels.”
“Eliminating the cartels responsible for the deadly drug crisis in the United States is the Drug Enforcement Administration’s top operational priority, and Edgar Fabian Villasenor-Garcia’s sentencing today — as an armed CJNG operative — brings us a step closer to our goal,” said Acting Administrator Derek S. Maltz of the Drug Enforcement Administration (DEA). “The CJNG is responsible for fueling the deadly drug crisis in the United States, as well as unprecedented violence in Mexico, our neighbor. The DEA is relentlessly committed to defeating the CJNG and other cartels, and we will exhaust every tool in the justice system to fight back, to save American lives, and to bring these cartels to justice.”
According to court documents, Edgar Fabian Villasenor-Garcia, also known as Gary and El Monje, 54, was responsible for trafficking at least 450 kilograms of cocaine and at least 780 kilograms of methamphetamine for importation into the United States on behalf of the CJNG, one of the most powerful, violent, and prolific drug cartels in Mexico. The CJNG kills, tortures, corrupts, and traffics hundreds of tons, if not more, of cocaine, methamphetamine, and other drugs into the United States and other countries. The CJNG also uses its drug proceeds to fund its violence, and by doing so, ravages communities and imperils countless lives.
Villasenor-Garcia joined the CJNG before 2017 and carried a firearm in furtherance of the CJNG’s criminal operations. In November 2024, he pleaded guilty to drug conspiracy charges and admitted that CJNG members used firearms and violence to advance their mandate, including to protect drugs and drug proceeds, to control the CJNG members, to fight rival cartels, and to escape capture by law enforcement.
The DEA Los Angeles Field Division investigated the case.
Trial Attorneys Lernik Begian and Douglas Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case. The Justice Department’s Office of International Affairs and Criminal Division’s Office of Enforcement Operations also provided significant assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Vice President of Health Care Software and Services Company Pleads Guilty to $1B Health Care Fraud ConspiracyRead the Press Release
A Kansas man pleaded guilty today to operating an internet-based platform that generated false doctors’ orders to defraud Medicare and other federal health care benefit programs of more than $1 billion.
According to court documents, Gregory Schreck, 50, of Johnson County, admitted that he and his co-conspirators targeted hundreds of thousands of Medicare beneficiaries to provide their personally identifiable information and agree to accept medically unnecessary orthotic braces, pain creams, and other items through misleading mailers, television advertisements, and calls from offshore call centers. Schreck and his co-conspirators owned, controlled, and operated DMERx, an internet-based platform that generated false and fraudulent doctors’ orders for orthotic braces, pain creams, and other items for these beneficiaries. Schreck, a vice president of the company that operated DMERx, admitted that he offered to connect pharmacies, durable medical equipment (DME) suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders that were transmitted using the DMERx platform. Schreck and his co-conspirators received payments for coordinating these illegal kickback transactions and referring the completed doctors’ orders to the DME suppliers, pharmacies, and telemarketers that paid for them. The fraudulent doctors’ orders generated by DMERx falsely represented that a doctor had examined and treated the Medicare beneficiaries when, in reality, purported telemedicine companies paid doctors to sign the orders without regard to medical necessity and based only on a brief telephone call with the beneficiary, or sometimes no interaction with the beneficiary at all. The DME suppliers and pharmacies that paid illegal kickbacks in exchange for these doctors’ orders generated through DMERx billed Medicare and other insurers more than $1 billion. Medicare and the insurers paid more than $360 million based on these false and fraudulent claims.
Schreck pleaded guilty to conspiracy to commit health care fraud and faces a maximum penalty of 10 years in prison. A sentencing hearing will be scheduled at a later date. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division; Acting Special Agent in Charge Isaac Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office; Acting Special Agent in Charge Justin E. Fleck of the FBI Miami Field Office; Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of Inspector General (VA-OIG)’s Southeast Field Office; and Special Agent in Charge Jason Sargenski of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office made the announcement.
HHS-OIG, FBI, VA-OIG, and DCIS are investigating the case.
Trial Attorneys Darren C. Halverson and Jennifer E. Burns of the Criminal Division’s Fraud Section are prosecuting the case. Fraud Section Trial Attorneys Andrea Savdie and Shane Butland assisted in the prosecution.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Statement from Justice Department Chief of Staff Chad MizelleRead the Press Release
“Today the Department of Justice determined that multiple layers of removal restrictions shielding administrative law judges (ALJs) are unconstitutional.
Unelected and constitutionally unaccountable ALJs have exercised immense power for far too long. In accordance with Supreme Court precedent, the Department is restoring constitutional accountability so that Executive Branch officials answer to the President and to the people.”
Miami Tax Return Preparer Agrees to Permanent Injunction and DisgorgementRead the Press Release
The U.S. District Court for the Southern District of Florida issued a permanent injunction earlier this week against Miami tax return preparer Dieuseul Jean-Louis, which bars him from preparing or assisting in the preparation of federal income tax returns, working for or having any ownership stake in any tax preparation business, assisting others set up business as a preparer and transferring or assigning customer lists to any other person or entity.
The court also ordered Jean-Louis to disgorge $245,275 in ill-gotten gains he received from his return preparation business. Jean-Louis agreed to both the injunction and ordered disgorgement.
According to the complaint, Jean-Louis, doing business as DJL Multi-Services, prepared returns for customers that claimed, without their knowledge, various false or fabricated deductions and credits, including falsifying charitable and mortgage interest deductions, knowingly reporting fake or inflated business expenses and fraudulently claiming various credits like the Fuel Tax Credit and American Opportunity Credit. The complaint further alleged that Jean-Louis falsified customers’ income and filing statuses to increase the amount of the Earned Income Tax Credit, and that Jean-Louis has prepared thousands of tax returns for customers for over a decade.
The complaint also asserted that Jean-Louis furnished to his customers copies of returns that were different from the returns filed with the IRS, where the return filed with the IRS claimed a higher refund, which allowed Jean-Louis to retain the additional amount for himself without the customers’ knowledge.
The Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.
In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jean-Louis PI and Order.pdfPresident of Insurance Brokerage Firm and CEO of Marketing Company Charged in $161M Affordable Care Act Enrollment Fraud SchemeRead the Press Release
An indictment was unsealed today charging Cory Lloyd, 46, of Stuart, Florida, and Steven Strong, 42, of Mansfield, Texas, in connection with their alleged participation in a scheme to submit fraudulent enrollments to fully subsidized Affordable Care Act insurance plans (ACA plans) in order to obtain millions of dollars in commission payments from insurance companies.
ACA plans offer tax credits to eligible enrollees. These tax credits, or “subsidies,” could be paid by the federal government directly to insurance plans in the form of a payment toward the applicable monthly premium. According to court documents, Lloyd and Strong conspired to enroll consumers in ACA plans that were fully subsidized by the federal government by submitting false and fraudulent applications for individuals whose income did not meet the minimum requirements to be eligible for the subsidies. Lloyd allegedly received commission and other payments from an insurance company in exchange for enrolling consumers in the ACA plans. In turn, Lloyd allegedly paid commissions to Strong in exchange for consumer referrals.
As alleged in the indictment, Lloyd and Strong targeted vulnerable, low-income individuals experiencing homelessness, unemployment, and mental health and substance abuse disorders, and, through “street marketers” working on their behalf, sometimes offered bribes to induce those individuals to enroll in subsidized ACA plans. Marketers working for Strong’s company allegedly coached consumers on how to respond to application questions to maximize the subsidy amount and provided addresses and social security numbers that did not match the consumers purportedly applying. As a result of being enrolled in subsidized ACA plans for which they did not qualify, some of these consumers experienced disruptions in their medical care.
The indictment alleges that Lloyd and Strong used misleading sales scripts and other deceptive sales techniques to convince consumers to state that they would attempt to earn the minimum income necessary to qualify for a subsidized ACA plan, even when the consumer initially projected having no income. Lloyd and Strong also allegedly conspired to bypass the federal government’s attempts to verify income and other information. Lloyd and Strong allegedly engaged in the scheme to maximize the commission payments they received from insurers, resulting in their companies’ receiving millions of dollars in commissions.
As alleged in the indictment, Lloyd and Strong’s scheme caused the federal government to pay at least $161,900,000 in subsidies.
Cory Lloyd and Steven Strong are each charged with conspiracy to commit wire fraud, three counts of wire fraud, conspiracy to defraud the United States, and two counts of money laundering. If convicted, each faces a maximum penalty of 20 years in prison on each count of conspiracy to commit wire fraud and wire fraud, five years in prison for conspiracy to defraud the United States, and 10 years in prison for each count of money laundering.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting Special Agent in Charge Justin Fleck of the FBI Miami Field Office, Acting Special Agent in Charge Isaac Bledsoe of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Miami Regional Office, and Special Agent in Charge Emmanuel Gomez of the IRS Criminal Investigation (IRS-CI) Miami Field Office made the announcement.
The FBI, HHS-OIG, and IRS-CI are investigating the case.
Assistant Chief Jamie de Boer and Trial Attorney D. Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
President Donald J. Trump Intends to Nominate Individuals to Key Posts at the Department of JusticeRead the Press Release
Today the Department of Justice is proud to announce President Trump’s intent to nominate John Eisenberg to serve as Assistant Attorney General for National Security, Brett Shumate to serve as Assistant Attorney General for the Civil Division, and Patrick Davis to serve as Assistant Attorney General for the Office of Legislative Affairs.
John Eisenberg (The National Security Division)
During President Trump’s first term, John served as the Legal Advisor to the National Security Council, Assistant to the President, and Deputy Counsel to the President for National Security Affairs. John has also served at the Department of Justice in several positions, including Associate Deputy Attorney General in the Office of the Deputy Attorney General and Deputy Assistant Attorney General in the Office of Legal Counsel. In addition to his government experience, John was also a partner at Kirkland & Ellis, where he focused on white-collar and internal-investigation matters as well as data-security issues.
John clerked for J. Michael Luttig of the United States Court of Appeals for the Fourth Circuit and Justice Clarence Thomas of the Supreme Court of the United States. He is a graduate of Yale Law School and Stanford University.
Brett Shumate (The Civil Division)
Brett presently serves as the Acting Assistant Attorney General for the Civil Division. Prior to rejoining the Department, Brett was a partner at Jones Day in Washington, D.C. He previously served at the Department as the Deputy Assistant Attorney General for the Federal Programs Branch in the Civil Division.
Brett clerked for Judge Edith H. Jones of the United States Court of Appeals for the Fifth Circuit. He is a graduate of Wake Forest University School of Law and Furman University.
Patrick Davis (The Office of Legislative Affairs)
This will be Patrick’s third stint with the Department of Justice. During President Trump’s first term, Patrick served in DOJ management as Deputy Associate Attorney General. Earlier in his career, he served as a trial attorney in the Federal Programs Branch of the DOJ’s Civil Division. On Capitol Hill, Patrick was the Deputy Chief Investigative Counsel for the Senate Judiciary Committee, where he led the Committee’s “Russiagate” investigation and was instrumental in the confirmation of Justice Brett Kavanaugh. He later served as the Chief Investigative Counsel for the House Permanent Select Committee on Intelligence.
Patrick rejoined the Department of Justice as the Acting Assistant Attorney General for the Office of Legislative Affairs. Prior to his return to the Department, he served as Senior Counsel at the American Petroleum Institute.
Patrick is a graduate of Georgetown University Law Center and the University of Nebraska.
Justice Department Sues to Shut Down Atlanta-Area Return PreparersRead the Press Release
The Justice Department filed a complaint today in the U.S. District Court for the Northern District of Georgia seeking to bar three Atlanta-area tax return preparers from owning or operating a tax return preparation business and preparing federal tax returns for others, as well as to require the defendants to disgorge the fees they received for fraudulently prepared returns.
The civil complaint was filed against Mabika Ilunga; Simon Ilunga; Simon Ilunga Jr.; Mabilus Inc. doing business as Metro Insurance and Tax Service; Big Cheez Inc. doing business as Metro Insurance and Tax Service and SN Tax Services Inc. doing business as Metro Insurance and Tax Service. According to the complaint, the defendants prepared and filed tax returns that falsely understated their customers’ federal income tax liabilities by fabricating, among other things:
- Businesses and related business expenses and losses;
- Education and qualified electric vehicle credits;
- Unreimbursed employee business expenses and
- Dependents and filing status.
The defendants fabricated these items to inflate their customers’ refunds and increase their eligibility for the Earned Income Tax Credit.
According to the complaint, the defendants prepared thousands of tax returns for 2020 through 2023, and already prepared over 400 returns between the start of the 2025 filing season and today’s filing. The complaint alleges that the IRS reviewed income tax returns for 34 of the defendants’ customers and found that returns for 33 of those customers had errors that required an adjustment, often included without the customers’ knowledge or consent. As a result, the complaint alleges that the defendants have cost the United States lost tax revenue as well as the time and resources necessary to investigate the false returns. The complaint further alleges that the defendants harmed their customers who could potentially face large income tax debts and may be liable for penalties and interest.
The Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns in 2025.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $84,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Ilunga et al Complaint.pdfMaryland recidivist sentenced to over three years in prison for illegally possessing a firearmRead the Press Release
ALEXANDRIA, Va. – A Maryland man was sentenced today to three years and six months in prison for being a felon in possession of a firearm.
According to court documents, on May 8, 2024, at the Tysons Corner Center in Fairfax County, police stopped and searched a vehicle in which Marcus Gibbs, 28, of Capital Heights, was the front-seat passenger. Inside the vehicle, officers found a handbag containing a 9mm handgun with an extended magazine. Also inside the handbag was Gibbs's wallet, which contained his social security card and state identification card.
In 2015, Gibbs was convicted of robbery and sentenced to eight years in prison. In 2021, Gibbs was also convicted of possession of a firearm by a felon and sentenced to five years in prison. As a previously convicted felon, Gibbs cannot legally possess firearms or ammunition.
Erik S. Siebert, U.S. Attorney for the Eastern District of Virginia, Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Daniel K. Amzallag prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:24-cr-178.
Final two defendants of 76 indicted in Operation Ghost Busted sentenced to federal prisonRead the Press Release
Brunswick, GA: The last of 76 defendants in a major south Georgia drug trafficking operation have been sentenced to federal prison, wrapping up an investigation into a gang-coordinated conspiracy that operated inside and outside Georgia prisons.
David D. Young, a/k/k “Khaos,” 44, of Hortense, Georgia, was sentenced to 235 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine, said Tara M. Lyons, Acting U.S. Attorney for the Southern District of Georgia. A co-defendant, Blake K. Screen, 36, of Brunswick, was sentenced to 100 months in prison just five months after his conviction at trial on charges of Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine and Fentanyl, and Possession with Intent to Distribute Fentanyl. U.S. District Court Judge Lisa Godbey Wood also ordered each of the defendants to serve three years of supervised release upon completion of their prison terms.
There is no parole in the federal system.
“Altogether as adults, the 76 defendants in Operation Ghost Busted have been convicted of more than 250 felonies – and more egregiously, this investigation linked their drug trafficking operation to multiple deaths from dozens of overdoses,” said Acting U.S. Attorney Lyons. “Our community is demonstrably safer with these drug distributors off the streets, and we applaud our law enforcement partners for the outstanding investigative work to put these defendants behind bars and bring this case to a successful conclusion.”
Young and Screen were among the 76 defendants indicted in December 2022 in USA v. Alvarez et al., dubbed Operation Ghost Busted. For more than two years, investigators from the FBI Coastal Georgia Violent Gang Task Force, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff's Office, and the Camden County Sheriff's Office collaborated with multiple federal, state, and local agencies to identify the sprawling drug trafficking network. Operating inside and outside Georgia prisons, the conspiracy was coordinated by members of the Ghost Face Gangsters working with affiliates of other criminal street gangs including the Aryan Brotherhood, Bloods, and Gangster Disciples.
Both Young and Screen served as dealers and sources of supply to the operation. After the December 2022 indictment and subsequent sweep to bring the defendants into custody, Young was a fugitive for more than a year until he was identified through his extensive Ghost Face Gangsters facial tattoos and taken into custody in March 2024 in Hermosillo, Sonora, Mexico, after being featured on “America’s Most Wanted.”
In addition to long histories of arrests and felony convictions, all of the defendants in Operation Ghost Busted have a history of illegal drug use, including several who survived repeat overdoses. Fifty of the defendants are high school dropouts.
Believed to be the largest drug trafficking prosecution in the history of the Southern District of Georgia, Operation Ghost Busted was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies involved in the investigation include the FBI Coastal Georgia Violent Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Georgia Department of Community Supervision; the Glynn County Police Department; the Brunswick Police Department; the Glynn County Sheriff’s Office; and sheriff’s offices from Pierce, Camden, Wayne, Treutlen, McIntosh, Toombs, Telfair, Dodge, and Ware counties. The case was prosecuted for the United States by Southern District of Georgia Assistant U.S. Attorneys Jennifer J. Kirkland and Criminal Division Deputy Chief E. Greg Gilluly Jr.
Drug Trafficker Sentenced to 87 months in Federal Prison for Possession of Methamphetamine with Intent to Distribute and Possession of a Firearm as a Drug UserRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Reynaldo Kinjo Zialcita, age 53, was sentenced on February 12, 2025, to 87 months federal prison. He pled guilty to Possession of Methamphetamine Hydrochloride with Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1), and Drug User in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g)(3). The Court also ordered three years of supervised release following imprisonment, and a mandatory $200.00 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On November 16, 2023, Guam Police Department officers conducted a motor vehicle stop. The driver, Reynaldo Kinjo Zialcita, was asked to produce his driver’s license. Zialcita then picked up a small bag on the passenger seat, put his hand in the bag, and turned his back to the officer to conceal it. Zialcita was ordered out of the car and then gave consent to search the bag for his license. The bag contained a glass jar with 249.6 grams of methamphetamine along with a loaded Sig Sauer P365 pistol. Zialcita admitted being a drug addict and said that he started selling methamphetamine in various game rooms during the COVID-19 pandemic. He bought the firearm to protect himself from being robbed of his drug proceeds. The firearm had previously been reported stolen in a March 2023 residential burglary.
“This case is another example of the danger faced by law enforcement during traffic stops,” stated United States Attorney Anderson. “This type of prosecution not only prevented the distribution of a substantial quantity of drugs. It also reduced the risk of future gun-related violence. I commend GPD for its aggressive interdiction efforts.”
“Dealing drugs and possessing firearms is a losing, and very dangerous, combination,” said ATF Seattle Special Agent in Charge Jonathan Blais. “This sentence will give Mr. Zialcita time to reflect on his actions and hopefully change his lawless ways.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Guam Police Department.
Assistant United States Attorney Devarup Rastogi prosecuted the case in the District of Guam.
Drug Trafficker Sentenced to 105 months in Federal Prison for Attempted Possession of MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Jesse Fegurgur Belen, age 46, from Dededo, Guam was sentenced to serve 105 months imprisonment. Belen pled guilty to Attempted Possession with Intent to Distribute Fifty or More Grams of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered 5 years of supervised release following imprisonment, 50 hours of community service, and a mandatory $100.00 special assessment fee. The Court also ordered the forfeiture of $1,636 in U.S. currency. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
During November 2022, Belen attempted to possess a postal package containing one pound of 98% pure methamphetamine. The drugs were mailed from Colton, California, and addressed to the Yigo Post Office. Belen and co-defendant Lorina Fejeran received the package and drove to Wusstig Road in Dededo. When law enforcement stopped their vehicle at a commercial building, Belen grabbed the methamphetamine and fled on foot. Belen threw the methamphetamine into the yard of a nearby residence to conceal the drugs. Law enforcement found him hiding 15 feet from the roadway.
“We will continue to interdict drugs trafficked through our mail system in an effort to keep Guam safe,” stated United States Attorney Anderson. “Belen’s significant criminal history also made him a worthy target for federal prosecution. I applaud the work of our federal partners in bringing him to justice.”
"One crucial aspect of HSI's mission is to prevent deadly drugs from infiltrating our borders and endangering our communities. By leveraging our partnerships with law enforcement, we can hold individuals accountable for their actions,” said Special Agent in Charge Lucy Cabral-DeArmas. “The arrest of Mr. Belen exemplifies our commitment to ensuring the safety of our community from the threat of deadly drugs."
“United States Postal Inspectors are dedicated to maintaining the sanctity of trust placed in the US Mail. We will aggressively pursue anyone who uses the US Mail to transport and distribute deadly drugs which impact the safety of our postal employees and customers.” said, Inspector in Charge Stephen Sherwood, United States Postal Inspection Service (USPIS) San Francisco Division. “We thank our federal and local law enforcement partners, including Guam Customs and Quarantine Agency and Guam Police Department, for working with us to combat these crimes in the effort to make our communities a safer place to live and work.”
This investigation was conducted by Homeland Security Investigations with the assistance of the U.S. Postal Inspection Services.
The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.
The Justice Department’s Antitrust Division and FBI Launch Online Portal to Enhance Department’s Capability to Bring International Antitrust Fugitives to JusticeRead the Press Release
Today, the Justice Department’s Antitrust Division and the FBI jointly announced the launch of a new online portal for information on international fugitives who have been charged with antitrust offenses and other crimes affecting the competitive process. The Antitrust Division and FBI are committed to bringing individuals to court to face their charges, wherever they are located.
“Individuals charged with anticompetitive crimes should understand that the DOJ Antitrust Division and its law enforcement partners will take all available steps to ensure that they answer the charges in court,” said Director of Criminal Enforcement Emma Burnham of the Justice Department’s Antitrust Division. “Defendants should understand that the charges will not go away, and the Antitrust Division urges them to contact us to discuss resolution of the charges.”
“The FBI is focused on identifying, tracking and arresting fugitives across all our threats,” said Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division. “By streamlining intelligence sharing and coordination, we are better equipped than ever to ensure no criminal can evade justice by hiding across borders.”
The Antitrust Division works with the FBI and other law enforcement partners to investigate and prosecute companies and individuals whose anticompetitive conduct harms American consumers and the American economy, wherever those companies and individuals are located. After bringing criminal charges, the Antitrust Division works actively with domestic and foreign authorities to locate international fugitives and secure their extradition to the United States. The Antitrust Division and the FBI welcome information from the public about the location of international fugitives.
For more information on antitrust fugitives, go to the Antitrust Division’s Fugitive webpage. The FBI maintains a list of current antitrust fugitives whose charges are not under seal.
To report potential antitrust crimes to the Antitrust Division, contact the Complaint Center. If your complaint relates to potential antitrust crimes affecting government procurement, grant, or program funding, contact the Procurement Collusion Strike Force Tip Center.
Justice Department Secures $360,000 Settlement in Sexual Harassment Lawsuit Against New Mexico Property Manager and Apartment ComplexRead the Press Release
The Justice Department announced today that the owners and former property manager of a federally subsidized apartment complex in Albuquerque, New Mexico have agreed to pay $360,000 to resolve a lawsuit alleging that the former property manager sexually harassed female tenants in violation of the Fair Housing Act.
The department’s lawsuit, filed in the U.S. District Court for the District of New Mexico in March 2024, alleges that for more than a decade, property manager Ariel Solis Veleta (Solis) sexually harassed female tenants at St. Anthony Plaza Apartments, a Section 8 Project-Based Rental Assistance property with 160 units in Albuquerque, New Mexico. The suit alleges that Solis’s conduct included making unwelcome sexual comments to female tenants, touching female tenants without their consent, locking female tenants in his office to demand sex acts, and threatening to evict female tenants who did not give in to his sexual demands.
“A home should be a place of refuge, not fear,” said Deputy Assistant Attorney General Kathleen P. Wolfe of the Justice Department’s Civil Rights Division. “The Justice Department will hold property managers and landlords accountable when they target and exploit vulnerable tenants with sexual harassment.”
“Affordable housing should not come at the cost of tenant’s dignity and personal safety,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “When property managers use their power over housing as a weapon to extort sexual favors from tenants, they exploit one fundamental right in order to violate another. This settlement will protect the sanctity of the home and the basic human rights of tenants, and was only possible because of these courageous women who came forward to tell their stories.”
“No low-income tenant should face the threat of being sexually harassed or abused by a property manager or others who control their housing,” said Acting Inspector General Stephen M. Begg of the Department of Housing and Urban Development (HUD). “We are grateful to the tenants who came forward to help put a stop to this violative behavior. This settlement demonstrates that the HUD Office of Inspector General will continue to vigorously investigate landlords and property managers who seek to sexually exploit their vulnerable tenants.”
The department’s lawsuit also names as defendants the owners and operators of St. Anthony Plaza Apartments, PacifiCap Properties Group LLC, St. Anthony Limited Partnership, PacifiCap Holdings XXXVIII LLC, and PacifiCap Management, Inc. The lawsuit alleges that these defendants are vicariously liable for the sexual harassment of their agent, Solis. The Department of Housing and Urban Development’s Office of Inspector General participated in the investigation that uncovered the evidence leading to the lawsuit.
Under the consent decree, which still must be approved by the U.S. District Court for the District of New Mexico, the defendants must pay $350,000 to tenants harmed by Solis’s harassment and a $10,000 civil penalty to the United States. The consent decree permanently bars Solis from contacting tenants harmed by his harassment, permanently bars Solis from managing residential rental properties, and mandates training and the adoption of policies and procedures to prevent future discrimination at residential rental properties owned or managed by defendants.
Individuals who believe they may have been victims of sexual harassment by Ariel Solis or at St. Anthony Plaza Apartments may email [email protected] or call the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291.
If you are a victim of sexual harassment by another landlord or property manager or have suffered other forms of housing discrimination, call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This settlement is part of the Justice Department’s Sexual Harassment in Housing Initiative, led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative, which the Department launched in October 2017, seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 48 lawsuits alleging sexual harassment in housing and recovered nearly $17.5 million for victims of such harassment.
Justice Department Announces Successful Conclusion of Agreement with Evangeline Parish Sheriff’s Office to Ensure Constitutional PolicingRead the Press Release
The Justice Department announced on Tuesday the successful conclusion of the United States’ agreement with the Evangeline Parish Sheriff’s Office (EPSO) in Louisiana to end its pattern or practice of conducting arrests in violation of the Fourth Amendment to the U.S. Constitution. After a thorough investigation, the United States found reasonable cause to believe that EPSO had unconstitutionally arrested and held people in jail without obtaining a warrant and without probable cause to believe the detained persons had committed a crime.
Under the 2018 agreement, EPSO made specific reforms to address the constitutional violations. EPSO developed policies, provided training, and improved adequate supervision to deputies to end the pattern or practice of unlawful seizures. EPSO also increased transparency by collecting and reporting data on its Fourth Amendment activities. Because EPSO has demonstrated full compliance with the agreement, the agreement is now terminated and the United States’ investigation is closed. The United States appreciates and acknowledges the effort and industry that EPSO committed to improve policing practices in Evangeline Parish.
The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of federally-protected rights. The Act also allows the Justice Department to remedy such misconduct through civil litigation.
To read the original press release announcing the findings of the investigation, click here. To read the report of the investigation, click here. To read the original EPSO Settlement Agreement, click here. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Interpol Washington and Canada Sign Historic Partnership to Combat Tren De AraguaRead the Press Release
Lyon, France — INTERPOL Washington Director Jeffrey A. Grimming and National Central Bureau Ottawa Director Marie-Josee Homsy have signed a historic Memorandum of Cooperation (MOC) to strengthen cross-border law enforcement collaboration against Tren de Aragua (TdA), one of the world’s most dangerous transnational criminal organizations. Exploiting recent migration patterns, TdA has expanded its presence in North America and is now in cities and communities across both countries. This landmark agreement enhances the ability of INTERPOL Washington and NCB Ottawa to combat TdA through robust information sharing, coordinated law enforcement support, and strengthened border security efforts.
“Today, we have taken a great leap forward in our fight to eradicate TdA in the United States,” said Director Grimming. “By bringing our combined law enforcement resources to bear, the United States and Canada have ensured that TdA will find no safe harbor in either of our nations. Together, as partners, we will work in lockstep to disrupt and dismantle TdA and remove their violent criminal operatives from our communities.”
“Tackling Transnational Criminal Organizations like TdA requires transnational cooperation,” said Director Homsy. “These groups threaten security and stability across the Americas. This signing is an example of the strong collaboration that takes place between Canadian and American authorities every day – as well as the power and reach of INTERPOL capabilities. By working together, we can dismantle criminal networks, protect our communities, and reaffirm our commitment to the rule of law.”
According to the MOC, both countries have agreed to take concrete actions within the INTERPOL framework to improve police coordination, information sharing, and operational support against TdA in the United States and Canada. This includes enhancing the timely and secure exchange of criminal intelligence, operational data, and best practices regarding efforts against TdA; coordinating joint investigations and activities targeting TdA; and strengthening mechanisms to detect, prevent, and respond to illicit cross-border TdA activities.
This agreement was signed during Director Grimming’s participation in the INTERPOL Heads of National Central Bureaus Conference in Lyon, France. In addition to the signing, INTERPOL Washington engaged in high-level bilateral and multilateral meetings with key partners in the fight against TdA. Director Grimming also delivered a keynote presentation on U.S. efforts to dismantle TdA, sharing strategies and best practices with law enforcement leaders from over 140 countries.
Doctor Convicted of $24M Medicare Fraud SchemeRead the Press Release
A New York doctor was found guilty yesterday by a federal jury for causing the submission of over $24 million in fraudulent claims to Medicare for medically unnecessary laboratory tests and orthotic braces.
According to court documents and evidence presented at trial, Alexander Baldonado, M.D., 69, of Queens, received tens of thousands of dollars in illegal cash kickbacks and bribes in exchange for ordering laboratory tests, including expensive cancer genetic tests, that were billed to Medicare by two related laboratories located in New York.
As part of the scheme, Baldonado authorized hundreds of cancer genetic tests for Medicare beneficiaries who attended COVID-19 testing events at assisted living facilities, adult day care centers, and a retirement community in 2020. Baldonado was not treating any of the patients who attended the testing events and, in many cases, did not speak to or examine the patients prior to ordering cancer genetic tests and other laboratory tests for them. Baldonado also billed Medicare for lengthy office visits that he never provided to these patients. Several Medicare patients for whom Baldonado ordered cancer genetic tests and billed for office visits testified at trial that they did not know who Baldonado was and had never met or spoken to him. Baldonado did not contact the patients after the testing events to review the results of the cancer genetic tests, and, in some cases, the patients never received the test results.
In addition to the laboratory testing scheme, Baldonado also received illegal cash kickbacks and bribes from the owner of a durable medical equipment supply company in exchange for ordering medically unnecessary orthotic braces for Medicare and Medicaid beneficiaries. The evidence presented at trial showed Baldonado on an undercover video receiving a large sum of cash in exchange for signed prescriptions for orthotic braces.
The medically unnecessary laboratory tests and orthotic braces that Baldonado ordered in exchange for illegal kickbacks and bribes caused Medicare to be billed more than $24 million. Medicare paid more than $2.1 million to the laboratories and the durable medical equipment supply company involved in the schemes.
Baldonado was found guilty of one count of conspiracy to commit health care fraud; six counts of health care fraud; one count of conspiracy to defraud the United States and to pay, offer, receive, and solicit health care kickbacks; one count of conspiracy to defraud the United States and to receive and solicit health care kickbacks; and one count of solicitation of health care kickbacks. Following his conviction on the 10 counts, Baldonado was remanded to the custody of the U.S. Marshals Service. He is scheduled to be sentenced on June 26 and faces a maximum penalty of 10 years in prison on each count of conspiracy to commit health care fraud, health care fraud, and solicitation of health care kickbacks and five years in prison on each count of conspiracy to defraud the United States and to pay, offer, receive, and solicit health care kickbacks and conspiracy to defraud the United States and to receive and solicit health care kickbacks. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Acting Special Agent in Charge Terence G. Reilly of the FBI Newark Field Office made the announcement.
HHS-OIG and FBI investigated the case.
Assistant Chief Rebecca Yuan and Trial Attorney Hyungjoo Han of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,800 defendants who collectively have billed federal health care programs and private insurers more than $30 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
New Jersey CPA Sentenced in Syndicated Conservation Easement Tax SchemeRead the Press Release
A New Jersey accountant was sentenced today to 24 months in prison for his role in the promotion and sale of abusive syndicated conservation easement tax shelters.
According to court documents and statements made in court, Ralph Anderson was a CPA and return preparer working for accounting firms in New Jersey and New York. From approximately 2013 to 2019, Anderson promoted and sold tax deductions to his high-income clients in the form of units in illegal syndicated conservation easement tax shelters created by convicted co-conspirators Jack Fisher and James Sinnott.
Anderson knew that, contrary to law, the transactions related to these illegal tax shelters lacked economic substance and that his high-income clients purchased units at his recommendation only to obtain a tax deduction on their tax returns. The charitable deductions purchased by clients were derived from the donation of land with a conservation easement or the land itself to a charity, and the deductions were based on fraudulently inflated appraisals for the donated land. Anderson and the promoters promised the clients a so-called ratio of “4.5 to 1” in charitable deductions for every dollar paid into the tax shelter.
In some instances, to make it appear that his clients had joined the partnerships before the date of the conservation easement donation — which was necessary to claim the tax benefits — Anderson and his co-conspirators also instructed and caused clients to falsely backdate documents, including subscription agreements and checks related to the partnerships. Each year from 2013 to 2019, Anderson and his co-conspirators assisted clients with claiming these false deductions on their tax returns.
In total, Anderson assisted in preparing tax returns for clients that claimed over $9.3 million in false charitable deductions based on backdated documents, which caused a tax loss to the United States of nearly $3 million.
Between approximately 2016 and 2019, Anderson earned over $300,000 in commissions for promoting and selling the illegal tax shelters to his clients. Anderson also claimed false tax deductions for charitable contributions generated from the syndicated conservation easement tax shelters he received as “free units” on his own returns and fraudulently reduced his own taxes on the income he earned from the scheme.
In addition to his prison sentence, U.S. District Court Judge Michael A. Shipp for the District of New Jersey ordered Anderson to serve three years of supervised release and to pay $3,543,005.53 in total restitution to the IRS and Small Business Administration.
After being convicted on all counts after a trial in U.S. District Court for the Northern District of Georgia, Anderson’s co-conspirators, Jack Fisher and James Sinnott, were sentenced to 25 and 23 years in prison, respectively. Nine additional defendants pleaded guilty to criminal conduct related to the syndicated conservation easement tax shelter scheme. These other defendants include appraiser Walter Douglas “Terry” Roberts and Certified Public Accountants Stein Agee, Corey Agee, James Benkoil, Victor Smith, Herbert Lewis and William Tomasello. In addition, attorneys Randall Lenz and Vi Bui pleaded guilty to their roles in this scheme. The fraudulent syndicated conservation easement tax shelter scheme created and promoted by Fisher and Sinnott resulted in over $1.3 billion in fraudulent tax deductions and caused over $400 million in total tax loss to the IRS.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division and Chief Guy Ficco of IRS Criminal Investigation (IRS-CI) made the announcement.
IRS-CI and the U.S. Postal Inspection Service investigated the case.
Senior Litigation Counsel Richard M. Rolwing and Trial Attorneys Parker Tobin and Jessica Kraft of the Tax Division prosecuted the case with assistance from former Tax Division Trial Attorney Nicholas Schilling and support from the U.S. Attorney’s Office for the Northern District of Georgia.
Former Federal Juror Sentenced to 30 Days for Contempt of CourtRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant, Gregorio Concepcion Tyquienco, age 72, was sentenced on February 4, 2025, in the District Court of Guam to 30 days imprisonment followed by one year of supervised release for Contempt of Court, in violation of 18 U.S.C. § 401(3). The Court ordered Tyquiengco to pay $1,537.04 as restitution (representing the fees and mileage paid to him as a juror during a trial), a $2,000 fine, and a mandatory $25 special assessment fee.
Tyquienco was a juror in the trial of United States vs. Raymond John Martinez and Juanita Marie Quitugua Moser in the District Court of Guam. Between October 11, 2018, and December 27, 2018, Tyquienco knowingly disobeyed the Court’s instruction not to discuss the case with anyone outside of the jury’s deliberative process. During the trial, and prior to jury deliberation, Tyquienco discussed what verdict he would render with brothers William Topasna Mantanona and John T. Mantanona, aka “Boom.” Tyquienco knew Boom was working as a member of the defense team. He knew Boom previously but did not disclose the association to the Court. Tyquienco was asked by William and Boom to be the jury foreman and to issue a “Not Guilty” verdict regardless of the evidence. These discussions violated the clear and specific daily orders of the Honorable Frances Tydingco-Gatewood, Chief Judge, District Court of Guam. After a mistrial was declared, Boom met with Tyquiengco and gave him $1,100 in cash.
“Jury tampering is an affront to the Rule of Law,” stated United States Attorney Anderson. “Our citizens and the accused expect fair legal proceedings that result in justice. Jurors and witnesses make great sacrifices to fulfil this important civic duty. This case sends a message that the Department of Justice will hold accountable those who violate this public trust.”
“The integrity and impartiality of jurors and their deliberations are essential to our criminal justice system,” said FBI Honolulu Special Agent in Charge David Porter. “Those who tamper with this important civic responsibility attempt to deny our communities the justice they deserve. As reflected by this investigation, the FBI is committed to protecting our legal processes and will bring to justice those who act to corrupt it.”
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Rosetta L. San Nicolas in the District of Guam.