District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Promoter of Abusive Tax Shelter Indicted for Tax Crimes and for Retaliating Against Federal OfficialsRead the Press Release
An indictment was unsealed on Monday in the Eastern District of Texas charging a Texas man with various tax crimes related to the use, promotion, and sale of an abusive tax shelter. He was also charged with filing false retaliatory liens against federal officials.
According to the indictment, Roger Napoleon Grant of Plano, Texas, used an abusive trust tax shelter to conceal his income from the IRS. He also allegedly promoted and sold this tax shelter to others. The tax shelter allegedly consisted of a multi-tiered trust structure typically consisting of at least two sham trusts and a purported charitable foundation. Grant allegedly told his clients that by implementing this structure, any income assigned to the trusts would be tax free. The indictment alleges that Grant typically charged clients between $12,500 to $50,000 to purchase the abusive trust tax shelter from him.
For the years 2017 through 2022, Grant allegedly assigned income he earned from promoting this tax shelter to a purported business trust. Though Grant reported about $80,521 in total income between 2017 and 2022, he received millions into a bank account held in the name of the purported business trust during that period. Grant had exclusive authority over this account, which he routinely used to pay for his personal expenses.
Grant was allegedly responsible for preparing and distributing the purported trust and foundation instruments for clients and providing clients with information and ongoing support related to their use of the tax shelter. Grant allegedly assured his clients that despite this reassignment of income, the clients’ business operations would not change and that his clients, as trustees, would retain complete control over their businesses and the income that their businesses generated.
Grant allegedly knew that the deductions reported on both his and his client’s trust tax returns were fraudulent and used to conceal his and his clients’ true income from the IRS.
In April 2025, Grant learned about the criminal investigation against him. According to the indictment, Grant retaliated by filing false liens against government officials, including the Attorney General of the United States, the Acting IRS Commissioner, the Acting United States Attorney for the District of Colorado, the Clerk of Court for the District of Colorado, and an attorney with the Justice Department’s Civil Division.
Grant is charged with five counts of tax evasion, 10 counts of aiding and assisting the filing of false income tax returns, and 10 counts of filing false retaliatory liens. If convicted, he faces a maximum penalty of five years in prison for each tax evasion count, three years in prison for each count of aiding and assisting in the filing of false income tax returns, and 10 years in prison for each count of filing false retaliatory liens.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Jay R. Combs of the Eastern District of Texas made the announcement.
IRS Criminal Investigation is investigating the case.
Acting Assistant Deputy Chief Boris Bourget and Trial Attorney Lauren K. Pope of the Criminal Division’s Tax Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Justice Department Triples Claims Processed Under Public Safety Officers’ Benefits ProgramRead the Press Release
Over the last four weeks, the Department of Justice’s Office of Justice Programs (OJP) has finalized more than three times the number of Public Safety Officers’ Benefits (PSOB) Program death claim determinations in comparison to the previous nine-month period providing over $96 million in benefits to eligible surviving families of fallen public safety officers.
“Law enforcement officers, firefighters, other public safety officers, and their families devote their lives to keeping us safe and serving their communities. When they experience a tragedy in the line of duty, it is our duty to provide timely support in any way that we can,” said Acting Attorney General Todd Blanche.
The PSOB Program provides death and education benefits to survivors of fallen law enforcement officers, firefighters, and other first responders, and disability benefits to officers catastrophically injured in the line of duty and education benefits to their families. OJP receives more than 1,200 applications each year, working closely with survivors, injured officers, and employing agencies to process applications and adjudicate eligible claims. The PSOB Office also collaborates with national law enforcement, firefighter, and first responder organizations to assist with preparation of PSOB applications and offer survivor peer support, counseling services, and other resources to survivors of fallen law enforcement officers, firefighters, and other first responders nationwide.
“From day one as the Associate Attorney General, I have made it my mission to cut through red tape, get to the bottom of bureaucratic federal processes, and ensure our actions speak louder than our words,” said Associate Attorney General Stanley E. Woodward, Jr. “Four weeks ago, I directed OJP to surge additional resources to the PSOB team to support outreach to applicants, evidence gathering, and claim review and determination. This Department of Justice is unwavering in our commitment to promptly and fairly recognize the sacrifice their loved ones made in service to our Nation.”
The Department of Justice is committed to doing our part to support officers and their families and keeping up this momentum for current and future PSOB applicants.
Additional information about the PSOB Program and how to file or access a claim is available at https://bja.ojp.gov/program/psob. If you have questions about the PSOB Program, please call 1–888–744–6513 between the hours of 8:00 a.m. and 5:00 p.m. Eastern Standard Time or email [email protected].
Hoboken Accountant Charged with Preparing False Tax Returns for ClientsRead the Press Release
A grand jury returned an indictment yesterday charging accountant a tax preparer with preparing false tax returns for clients and obstructing the IRS.
According to the indictment, Demetreus Hargrove operated The Wright Star LLC, a tax preparation business he used to prepare and file 30 false individual and business tax returns for the years 2019 through 2023. As part of his scheme, Hargrove allegedly encouraged and helped his clients to form businesses in order to claim fabricated business expenses. He also allegedly recharacterized his clients’ personal expenses as deductible business expenses and frequently filed business tax returns with the IRS without having first reviewed them with his clients. According to the indictment, Hargrove also prepared and filed tax returns for clients reporting false business losses and fabricated bad debts, even though his clients did not provide him with this information.
Hargrove was charged with 30 counts of aiding or assisting the filing of false tax returns. If convicted, he faces a maximum penalty of three years in prison for each count of filing false returns for clients. He also faces a period of supervised release, restitution and monetary penalties.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Likhitha Butchireddygari and Lyndi McVey of the Criminal Division’s Tax Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Court Orders Michigan Tax Return Preparer to Shut Down Tax Preparation BusinessRead the Press Release
The U.S. District Court for the Eastern District of Michigan issued a permanent injunction against Detroit area tax return preparer Ann Heibeck and Detroit area tax return preparation businesses J&A Tax Services LLC doing business as Equitax (Equitax) and J&A Tax and Accounting Services LLC doing business as Equitax Accounting and Tax Service (J&A 2). The injunction bars Heibeck, Equitax, and J&A 2 from preparing tax returns, working for, or having any ownership stake in any tax preparation business, assisting others prepare tax returns or set up business as a preparer, and transferring or assigning customer lists to any other person or entity. The court previously entered similar judgments of permanent injunction against Tasha Washington, Crystal Patrick, Debra Washington, and Sade Cooper, after they failed to appear to defend against the United States’ claims.
According to the complaint, Heibeck and Equitax prepared and filed tax returns that falsely understated their customers’ federal income tax liabilities by claiming, among other things:
- Fictitious or inflated Schedule C business expenses;
- Fictitious or inflated Dependent Care expenses;
- Fictitious or inflated Education expenses; and
- Fictitious or inflated credits available under the Families First Coronavirus Response Act.
The court found that Heibeck prepared and filed thousands of false income tax returns through J&A 2, an entity she owned, using her husband’s Personal Tax Identification Number. It enjoined J&A 2 as an active participant in her scheme.
As a result of the court’s order, Heibeck, Equitax, and J&A 2 must post a copy of the injunction at all locations where they conduct business and post a link to the injunction on their business’s website.
Deputy Assistant Attorney General Joshua Wu of the Civil Division’s Tax Litigation Branch made the announcement. Tax Litigation Branch attorneys Julia Glen, Franklin Sandrea-Rivero, and Claire Shimberg handled this matter.
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 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice 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 Civil Division, Tax Litigation Branch, with details.
A‑Plus Management and Its Owner Agree to Pay $1M to Settle Alleged False Claims at Post for Office RepairsRead the Press Release
RALEIGH, N.C. – A-Plus Management, LLC and its owner, Jared Chavis of Maxton, agreed to pay $1,000,000 to the U.S. government to resolve alleged false claims for overstated repairs at United States Postal Service (USPS) facilities.
“This civil fraud settlement demonstrates our commitment to protect taxpayer money from dishonest contractors,” said U.S. Attorney Ellis Boyle. “Our office zealously pursues those who submit false invoices to wrongfully take government funds, whether large or small amounts.”
This settlement arose from allegations that A-Plus and Jared Chavis falsely overstated labor, mischarged travel expenses, altered invoices, and failed to provide accurate documentation for repairs at USPS properties. The False Claims Act allows the Government to seek recovery of three times the money falsely obtained, plus substantial penalties for each false claim submitted. It should be noted that the civil claims resolved by settlement here are allegations only, that there has been no judicial determination or admission of liability, and that A-Plus and Jared Chavis deny these fraud allegations.
“The USPS OIG will continue to aggressively investigate companies that engage in activities designed to defraud the Postal Service’s contracting process,” said Executive Special Agent in Charge Kevin Cloninger of the U.S. Postal Service (USPS), Office of Inspector General (OIG). “This settlement demonstrates that our special agents, along with the United States Attorney’s Office, will pursue contractors that overcharge the government and enrich themselves at the expense of USPS customers.”
The USPS Office of Inspector General (OIG) is an independent oversight and law enforcement agency established under the Inspector General Act. Responsibilities include conducting investigations, detecting fraud, waste, and abuse.
W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement. This investigation came from the United States Postal Service’s Office of Inspector General.
Trade Fraud Task Force Surpasses $1 Billion in Recoveries and Charged Losses in Less Than One YearRead the Press Release
The Department of Justice announced today that the Trade Fraud Task Force (TFTF), launched in August 2025, with the Department of Homeland Security (DHS) has surpassed $1 billion in civil and criminal recoveries, penalties, forfeitures, and publicly charged losses in less than one year This milestone reflects a fundamental shift in the federal government’s approach to customs and trade enforcement, emphasizing rigorous criminal prosecution and civil enforcement under the False Claims Act (FCA).
“For too long, fraud actors have viewed customs violations as a mere surcharge or cost of doing business,” said Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division. “By utilizing the Department’s full weight, we are making it clear that trade fraud is a serious economic crime. This billion-dollar milestone demonstrates that the United States and the National Fraud Enforcement Division will no longer allow the integrity of our country’s borders and markets to be compromised for illicit profit. This message should be heard loud and clear by all supply-chain actors.”
The TFTF was established by DOJ and DHS to investigate and prosecute those who defraud the government through material misrepresentations to U.S. Customs and Border Protection (CBP), including transshipment, mislabeling, and false declaration. Its mandate covers the entire supply chain, including importers, customs brokers, downstream distributors, industrial and commercial end-users, and other supply-chain actors who knowingly profit from merchandise imported contrary to law. Although the TFTF maintains broad enforcement authority, the task force focuses on key revenue and enforcement priorities, including the evasion of Section 301 tariffs, antidumping duties (AD), and countervailing duties (CVD), the eradication of forced labor from global supply chains that seek to exploit U.S. markets, and the prosecution of criminal violations concerning imported goods that threaten public health and safety. By prioritizing clear, high-impact enforcement actions within established legal frameworks, the TFTF ensures swift accountability and a level playing field for law-abiding American businesses.
“Ensuring that the global supply chain remains a level playing field for law-abiding American businesses is a critical component of CBP’s mission,” said U.S. Customs and Border Protection Commissioner Rodney S. Scott. “By pairing CBP’s operational reach with DOJ’s prosecutorial authority, we are dismantling the networks that seek to bypass our laws and undermine our economic security. Every day, CBP confronts criminal networks that exploit our supply chains, endanger American families with unsafe goods, threaten the integrity of our consumer and industrial markets, and undermine confidence in international commerce. Our message is clear: those who seek to exploit America’s trade system will be identified, investigated, and brought to justice.”
“Through the Trade Fraud Task Force, Homeland Security Investigations is actively protecting American families and businesses from the dangers and consequences of illegal trade practices,” said Homeland Security Investigations Acting Executive Associate Director John A. Condon. “HSI combines investigative expertise and global partnerships to confront criminal networks that threaten fair trade and the security of our nation’s economic interests. By holding offenders accountable, we build trust in the products people rely on every day and support a fair marketplace for honest businesses.”
U.S. ATTORNEY’S OFFICE ANNOUNCES CHARGES IN TWO SIGNIFICANT CHICAGO TRADE FRAUD CASES
The United States Attorney’s Office for the Northern District of Illinois (NDIL) today announced charges against multiple defendants in significant customs duty evasion schemes involving the false declaration of countries of origin for gold jewelry. The Trade Fraud Task Force (TFTF) has selected NDIL as its lead prosecutorial partner. These Chicago cases contributed to the TFTF surpassing the $1 billion milestone in enforced trade fraud matters.
Raj Kohli and Veena Kohli, who operate Surya International, Inc., a gold jewelry importer and wholesaler in South San Francisco, California, were charged in U.S. District Court in Chicago with falsely declaring that the gold jewelry they imported into the United States had originated in Singapore and not its true country of origin—India and United Arab Emirates. The charges allege that from approximately August 2020 through May 2024, the company, together with foreign manufacturers and other United States entities, imported and brought into the United States approximately 563 separate entries of gold jewelry that were falsely declared as having been manufactured in Singapore and in doing so avoided paying customs duties of between 5.5% and 5.8% of the declared value of the imported gold jewelry. The gold jewelry had an estimated total value of more than approximately $693 million, thus causing the avoidance of more than approximately $38 million in United States customs duties.
Separately, Narain Gulabani who owned and operated Barkha Wholesale, Inc., a gold jewelry importer and wholesaler in Naperville, Illinois, was charged in U.S. District Court in Chicago with falsely declaring the country of origin for imported gold jewelry. The charges allege that, from approximately May 2016 and October 2021, Gulabani, together with foreign manufacturers and other United States entities, imported or caused to be imported into the United States approximately 242 separate entries of gold jewelry that were falsely declared as having been manufactured in Oman or Singapore and in doing so avoided paying customs duties of between 5.5% and 5.8% of the declared value of the imported gold jewelry. The gold jewelry had an estimated total value of more than approximately $240 million, thus causing the avoidance of more than approximately $13.6 million in United States customs duties.
These charges are part of a broader federal effort to combat trade fraud schemes that undermine fair competition, harm domestic industries, deprive the United States of substantial revenue, and ultimately hurt the American taxpayer.
Gold jewelry and objects seized by law enforcement in May 2022.CRIMINAL AND CIVIL ENFORCEMENT
The TFTF has a nationwide mandate to investigate and prosecute trade fraud and related cases, from coast-to-coast. Any offense involving the importation of an object may be inquired of and prosecuted in any district from, through, or into which the imported object moves. Moreover, federal law criminalizes down-chain activities involving merchandise entered contrary to law when done with knowledge of the illegal entry. As a result, the port of entry is only the starting point for these actions, which may also be prosecuted in the district that feels the impact of the trade fraud.
The TFTF has secured major victories across a diverse range of industries. Recent high-impact matters include:
- Perfectus Aluminum (May 12, 2026) (CDCA): S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI)-led criminal investigation resulted in the collection of $549.5 million through a FCA settlement concerning massive scheme to evade antidumping and countervailing duties on aluminum extrusions.
- Boise Cascade (April 27, 2026) (SDFL): HSI-led criminal investigation resulted in a $6.3 million fine and guilty plea for Lacey Act violations where the company demonstrated willful blindness toward illegally imported birch plywood.
- Ceratizit USA (December 18, 2025) (EDMI): $54 million FCA settlement to resolve allegations of knowingly failing to pay duties on tungsten carbide products imported from China.
- Royal Sovereign (April 28, 2026) (DNJ): $8 million criminal fine and restitution ordered after failure to report to the U.S. Consumer Product Safety Commission dangerously defective imported air conditioners allegedly linked to more than 40 fires and one death.
- MGI International (December 12, 2025) (DNH): HSI-led criminal investigation leading to resolutions against a global plastic resin distributor and its former executive concerning misrepresentations of the goods’ country of origin to avoid paying Section 301 duties.
CBP ENFORCEMENT
In addition to the civil and criminal enforcement efforts that led to this historic milestone, CBP continues to exercise its enforcement authorities to address trade violations. So far this Fiscal Year, CBP has assessed more than $2.1 billion in commercial trade penalties and debarred 35 parties from doing business with the federal government. These actions complement DOJ’s enforcement mechanisms and strengthen CBP’s mission to protect our national and economic security by preventing fraud, waste, and abuse.
THE TRADE FRAUD RESOURCE GUIDE
The DOJ and the DHS today released A Resource Guide to Trade Fraud Enforcement (the Guide). As the first joint comprehensive framework of its kind, the Guide is a historic and seminal roadmap for cross-border compliance and enforcement priorities. The Guide provides critical information to enterprises of all sizes and addresses a wide variety of topics, including who and what is covered by customs regulations and anti-trade fraud laws and the different types of civil and criminal resolutions available in trade fraud enforcement. On these and other topics, the Guide takes a multi-faceted approach toward setting forth the statutory and regulatory requirements and providing insights into the enforcement practices of the DOJ and DHS.
Since January 2025, the Department has brought trade fraud enforcement actions all over the country as shown in the map below:
“When companies commit trade fraud, the prosperity and safety of American workers, families, and communities are put at risk,” said the DHS Assistant Secretary for Trade and Economic Security, Aris Kourkoumelis. “To level the playing field and protect the American people, DOJ and DHS have forged the Trade Fraud Task Force and have produced this Resource Guide which provides the private sector with a transparent, comprehensive manual on trade fraud enforcement.”
GLOBAL TRADE & COMMERCE ENFORCEMENT SECTION
The Department is announcing the creation of the Global Trade & Commerce Enforcement Section (GTCES) within the National Fraud Enforcement Division. The GTCES’s mission is to investigate and prosecute criminal import, trade, and other fraud offenses that undermine American industries, evade external revenue collection, threaten consumers’ health and safety, finance foreign adversaries, promote forced labor through illegal trade practices, and violate United States laws and regulations governing domestic and foreign commerce.
A FOUNDATION OF PARTNERSHIP
The success of the GTCES and TFTF is built upon unprecedented cooperation between Main Justice, U.S. Attorneys’ Offices, and law enforcement partners.
“It has been a tremendous honor to work closely with the Department and its leadership to envision what the Trade Fraud Task Force could be, and then to convert concept into reality,” said U.S. Attorney Andrew S. Boutros of the Northern District of Illinois. “Helping stand up the Task Force from the ground up has been a vision of mine for nearly 20 years, dating back to when I was a federal prosecutor in Chicago bringing what has still stood as the largest criminal trade fraud cases of their kind and doing so against a stacked deck. It is deeply satisfying to know that we were decades ahead of our time and that our strategy from years ago has now been adopted at the highest levels of the Department and is being implemented across the whole of government. It is a great privilege and responsibility for the Northern District of Illinois to be selected as lead prosecutorial partner for the Trade Fraud Task Force. With our expansive venue and my decades of experience in this space, the Chicago U.S. Attorney’s Office intends to be the tip of the spear when it comes to robust and vigorous enforcement of our nation’s trade, forced labor, and other related laws. There should be no doubt, the key roads for trade fraud enforcement lead from, to, and through Chicago past, present, and future.”
The Department extends its gratitude to the 35 TFTF masthead U.S. Attorneys’ Offices: District of Arizona, Eastern District of Arkansas, Northern District of California, Central District of California, Eastern District of California, Southern District of California, District of Colorado, District of Columbia, Southern District of Florida, Northern District of Georgia, Central District of Illinois, Northern District of Illinois, Southern District of Illinois, Northern District of Indiana, Southern District of Indiana, District of Maryland, District of Massachusetts, Eastern District of Michigan, Western District of Missouri, District of Nebraska, District of New Jersey, District of New Mexico, Eastern District of New York, Southern District of New York, Middle District of North Carolina, District of Oregon, Eastern District of Pennsylvania, District of Puerto Rico, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Eastern District of Virigina, Eastern District of Wisconsin, and Western District of Wisconsin.
The Task Force also acknowledges the indispensable contributions of its law enforcement and agency partners, including CBP, HSI, IRS Criminal Investigation, the Environmental Protection Agency’s Criminal Investigation Division, the U.S. Fish and Wildlife Service, the Consumer Product Safety Commission, and the Food and Drug Administration.
The Department-wide Corporate Enforcement Policy provides concrete benefits to incentivize companies to voluntarily disclose discovered misconduct, cooperate with our investigations, and timely and appropriately remediate the wrongdoing.
The Justice Department encourages whistleblowers to alert the government to credible allegations of fraud, including utilizing the qui tam provisions of the False Claims Act or through the Department’s Corporate Whistleblower Program at [email protected] using the form available here.
Pharmacy Owner and Technician Sentenced for Falsifying Audit Documents and Submitting Fraudulent ClaimsRead the Press Release
The owner of a pharmacy and a pharmacy technician were sentenced today for their roles in a scheme that involved submitting fraudulent claims and materially false documents to health care benefit programs.
According to court documents and statements made in court, Kirtan S. Patel, 34, of Allentown, New Jersey, and a lawful permanent resident originally from India, owned a pharmacy in Jersey City, New Jersey. In November 2020, Patel caused falsified documents to be submitted to a health insurance company in response to an audit. These documents falsely represented that medical providers had authorized certain prescriptions when they had not. Patel also submitted fraudulent prescription pick-up records that falsely represented that certain customers of the pharmacy had picked up prescriptions when they had not.
During the scheme, Patel sent text messages to a friend describing how Patel “bill[ed] around 8-10k every month to [his own] insurance” and did not “take any medications so that’s basically free money[.]” Patel also described how he plied doctors with trips to “strip clubs,” “night clubs,” and “cash” to keep them “as corrupt as possible.” In total, Patel caused over $620,000 in losses to health insurance companies. Patel was sentenced to 30 months in prison and ordered to pay over $620,000 in restitution and $620,000 in forfeiture.
According to court documents and statements made in in court, Christopher Lugo, 36, of Jersey City, New Jersey, was a pharmacy technician at the pharmacy owned by Patel. In January 2020, Lugo submitted, or caused the submission of, a fraudulent claim to his own health insurer for a drug that he was not prescribed and was not dispensed. In total, Lugo caused over $565,000 in losses to health insurance companies and Medicare. Lugo was sentenced to 24 months in prison and ordered to pay over $565,000 in restitution.
In April 2025, Patel pleaded guilty to making false statements relating to health care matters, and Lugo pleaded guilty to health care fraud.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Special Agent in Charge Stefanie Roddie of the FBI Newark Field Office; Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Regional Office; and Acting Special Agent in Charge Spiros Karabinas of Homeland Security Investigations (HSI) made the announcement.
FBI, HHS-OIG, and HSI investigated the case.
Trial Attorneys Nicholas K. Peone and Paul J. Koob of the Criminal Division’s Fraud Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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 federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, 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.
Court Orders Continued Access for USDA to Inspect Iowa Dog Breeder’s Facility Following Seizure of 32 DogsRead the Press Release
Last week, the U.S. District Court for the Southern District of Iowa issued a preliminary injunction against Wuanita Swedlund, a dog breeder, based on claims that she has repeatedly failed to grant Department of Agriculture (USDA) officials access to inspect her facility, animals, and records in violation of the Animal Welfare Act (AWA). This preliminary injunction follows a temporary restraining order (TRO) based on the same claims that led to the seizure of 32 dogs by Iowa law enforcement.
Photo of a dog at Swedlund’s facility, from USDA’s inspection report.“The court’s preliminary injunction ensures USDA inspectors can assess whether this breeder continues to operate in violation of the Animal Welfare Act,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “We enforce the AWA’s standards to ensure that animals in breeding facilities are safe and healthy.”
“The U.S. Department of Agriculture continues its close collaboration with the U.S. Department of Justice on enforcing the Animal Welfare Act,” said General Counsel Tyler Clarkson of the USDA.
According to the complaint, filed with a motion for TRO and preliminary injunction, Swedlund has allegedly engaged in a pattern and practice of violating the AWA while operating a dog breeding facility in Farmington, Iowa. After the court issued the TRO requested by the United States, inspectors from USDA’s Animal and Plant Health Inspection Service (APHIS) and the Iowa Department of Agriculture and Land Stewardship coordinated and obtained access to Swedlund’s facility. APHIS cited Swedlund for dozens of AWA violations, including lack of adequate veterinary care for animals with visible fleas, failure to provide sanitary enclosures for puppies and their mothers, and indoor housing facilities with temperatures that exceeded 90 degrees for at least four hours. The state obtained a search warrant and took possession of all 32 dogs found at the facility, and they have been placed in a local animal shelter.
In issuing the preliminary injunction, the court recognized, “the animals in Swedlund’s care suffered needlessly—precisely the type of harm that the AWA sought to prevent.” The preliminary injunction will assist USDA with preventing the conditions that affected the health and well-being of the animals at Swedlund’s facility.
The USDA referred this matter to the Justice Department based on concerns about potential conditions faced by the animals in Swedlund’s facility. The preliminary injunction will assist USDA with assessing the health and well-being of the animals in Swedlund’s possession. This lawsuit follows the Prioritization of Animal Welfare Enforcement memorandum issued by the Attorney General in February.
USDA’s APHIS is investigating this matter.
Trial Attorneys Kamela A. Caschette, Michelle M. Spatz, and Bonnie M. Ballard of ENRD’s Wildlife and Marine Resources Section are handling this matter.
TransDigm Abandons Proposed Acquisition of Stellant Systems in Response to Justice Department’s Decision to Block TransactionRead the Press Release
TransDigm Group has abandoned its attempt to acquire rival defense and industrial component manufacturer Stellant Systems. TransDigm and Stellant compete, in addition to industrial products, to supply and repair components used in radar systems for the U.S. Navy’s Aegis Combat System and the U.S. Air Force’s F-16 fighter jets. The acquisition would have left the Department of War with a single source for critical products, increasing supply chain risks and removing the benefits of competition.
TransDigm abandoned the transaction after the Justice Department informed the parties that it would file a lawsuit in federal court to block the transaction.
“This Justice Department will rigorously investigate and challenge mergers that create monopolies and harm competition. Our decision to put a stop to this deal preserved critical competition that protects American taxpayers and warfighters,” said Associate Attorney General Stanley Woodward. “We are grateful to our War Department partners who were crucial to this investigation.”
“The Department of War is committed to building the Arsenal of Freedom, which requires resilient supply chains and competition,” said Michael P. Duffey, Under Secretary of War for Acquisition and Sustainment. “Maintaining a robust, diverse, and competitive defense industrial base is vital to preventing single-source vulnerabilities and ensuring our warfighters are equipped with superior capabilities at the best value to the American taxpayer.”
TransDigm Group Incorporated is headquartered in Cleveland, Ohio. Stellant Systems Inc. is headquartered in Torrance, California.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Department of Justice is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information. TAP improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, including the FBI’s National Crime Information Center (NCIC).
“Making America safe again extends to Indian country and Native American communities across the U.S. who experience high rates of crime and victimization,” said Acting Attorney General Todd Blanche. “For more than a decade the Department of Justice has offered TAP, an innovative program that enables Tribes to access and share critical crime data in real time with our national databases. With this information Tribal partners can solve crimes, locate fugitives, and use a variety of other tools to keep their communities safe.”
The program provides software, hardware, and training, as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. The Department will accept TAP applications from July 13 to August 31. Tribes selected to participate will be notified in September. There are currently 152 federally recognized Tribes participating in TAP.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“The TAP program has significantly helped the La Jolla Tribal Police Department by strengthening our operational capacity, improving access to critical law enforcement resources, and expanding the training opportunities available to our officers,” said Abraham Chavero, Chief of Police, La Jolla Tribal Police Department. “Through TAP’s support, we have been able to streamline reporting processes, enhance data accuracy, and improve coordination with partnering agencies.”
“The Penobscot Nation Tribal Court has greatly benefited from participating in TAP,” said Rebecca Winter, Penobscot Nation Tribal Court Administrator. “Having direct access to national crime information systems has strengthened public safety efforts within our community. TAP has enabled our Court and law enforcement partners to access important information in real time, helping us better serve our tribal members.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
To qualify for funding, federally recognized Tribes must have – and agree to use TAP for – at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act,
- A Tribal law enforcement agency that has arrest powers,
- A Tribal court that issues orders of protection, or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the department’s Office of the Chief Information Officer and Office of Tribal Justice.
Justice Department Files Proposed Settlement with Owner and Operator of Keystone Pipeline to Resolve Clean Water Act Violations for 2022 Pipeline Rupture in KansasRead the Press Release
The Justice Department, on behalf of the Environmental Protection Agency (EPA) and State of Kansas, today filed a complaint and proposed consent decree to resolve allegations that South Bow (USA) LP and South Bow Infrastructure Operations Inc. — the owner and operator of the Keystone Pipeline — violated the Clean Water Act related to the 2022 rupture of the Keystone Pipeline in Washington County, Kansas.
On Dec. 7, 2022, nearly 13,000 barrels of oil (approximately 543,000 gallons) leaked from the ruptured pipeline over land and into Mill Creek, creating an imminent and substantial threat to human health and the environment. The event was one of the largest inland oil spills in recent history, and the largest discharge ever from the Keystone Pipeline system.
As part of the settlement, South Bow has agreed to pay a civil penalty of $26,867,789 and complete work designed to prevent future similar discharges, which South Bow estimates will cost approximately $40 million. South Bow has also agreed to contribute over $3 million to the state of Kansas towards natural resource restoration projects to resolve violations of Kansas state laws.
“Pipelines are the safest means of transporting large quantities of oil and other liquids and gases over long distances,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “However rare, when a pipeline leaks, it can quickly escalate. That’s why an important part of this proposed settlement is the work the company has committed to do to help prevent future leaks.”
“This case demonstrates why the oil pipelines crossing our heartland must be maintained properly. The oil spill blanketed land and water, rendering the waterway lifeless and useless and requiring extensive cleanup and remediation,” said Assistant Administrator Jeffrey A. Hall for EPA’s Office of Enforcement and Compliance Assurance. “The substantial penalty reflects the seriousness of the environmental harm, and the other requirements of the settlement reflect the need to prioritize pipeline integrity and maintenance for this critical infrastructure.”
“It is important that we are all good stewards of the environment,” said U.S. Attorney Ryan A. Kriegshauser for the District of Kansas. “The incident had a massive impact on the State of Kansas, and we are happy that this settlement will mitigate that damage.”
“Dedicated EPA staff logged many thousands of hours cleaning up Mill Creek and were supported by multiple federal and state agencies,” said Administrator Jim Macy of EPA Region 7. “This fair and comprehensive settlement represents a federal-state partnership commitment to protect our nation’s waters and prevent future oil spills.”
According to the complaint, after the 2022 spill, crude oil an inch thick covered Mill Creek bank-to-bank for 3.5 miles downstream of the rupture site. The Kansas Department of Health and Environment issued a stream advisory for Mill Creek to prohibit contact with the creek by people, livestock, or pets. The discharge covered vegetation and soil in the immediately surrounding area, and oil residue was found in the 35 acres surrounding the discharge. The spill killed or impacted more than 2,700 animals.
Following a 2023 EPA cleanup order, South Bow removed oil from the creek and surrounding areas and completed restoration of aquatic habitat, stream banks, and shorelines.
The Keystone Pipeline is a 2,687-mile liquid oil pipeline system between Hardisty, Alberta, Canada, and Port Arthur, Texas. The rupture occurred in a section of the pipeline that stretches from Steele City, Nebraska, to Cushing, Oklahoma.
The consent decree was filed with the U.S. District Court for the District of Kansas and is subject to a 30-day public comment period. The complaint and proposed consent decree are available at www.justice.gov/enrd/consent-decrees.
The Environmental Protection Agency investigated this matter. More information on the settlement is available on EPA’s South Bow Clean Water Act settlement summary: www.epa.gov/enforcement/south-bow-lp-cwa-settlement-summary.
Attorneys with ENRD’s Environmental Enforcement Section and the U.S. Attorney’s Office for the District of Kansas are handling this matter.
Illegal PRC National Sentenced for Unlawful Possession of AmmunitionRead the Press Release
Saipan, M.P. – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Bai Yichuan, age 40, an illegal alien from the People’s Republic of China (PRC) was sentenced by Chief Judge Ramona V. Manglona in the District Court for the Northern Mariana Islands to 24 months in federal prison for Unlawful Possession of Ammunition by an Illegal Alien, in violation of 18 U.S.C. §§ 922(g)(5)(A) 9 and 924(a)(8). The court also imposed a one‑year term of supervised release, 50 hours of community service, and a $100 special assessment. Bai must thereafter report to immigration authorities for removal proceedings.
In September 2025, Bai surrendered to the CNMI Department of Public Safety (DPS) due to an outstanding warrant seeking his arrest for alleged violent offenses. During his arrest, Bai possessed a blue bag containing a Sig Sauer magazine loaded with fifteen rounds of 9mm ammunition. He claimed ownership of the ammunition but denied knowing the location of any firearm.
Bai was conditionally paroled into the CNMI in January 2018 and authorized to remain there until February 5, 2019. He continued to reside there without authorization. He was ordered removed by an immigration judge in November 2021 following a conviction for methamphetamine trafficking in the CNMI Superior Court. He was released from Department of Homeland Security (DHS) custody in March 2022 due to COVID‑19 concerns and suspended repatriation flights to the PRC. After release, he failed to report as required and was later deemed a fugitive by DHS.
“Federal law prohibits illegal aliens from possessing firearms and ammunition in any quantity,” stated United States Attorney Anderson. “DPS’s referral of this case to HSI and ATF resulted in the successful prosecution of Bai, which will facilitate his removal from the United States. This case demonstrates our continuing commitment to keeping our communities safe.”
“We’ll continue working with our local law enforcement partners to keep the CNMI safe. Remember that even if you’re here legally on a visa, federal law says you may not possess firearms or ammunition as an alien, and HSI will investigate and enforce these laws,” said CJ Ammons, Acting Special Agent in Charge for Homeland Security Investigations.
The investigation was conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the CNMI Department of Public Safety.
Assistant United States Attorney Garth R. Backe prosecuted the case in the District of the Northern Mariana Islands.
Former Chief Operating Officer, Office of the Director of National Intelligence, Pays $20,000 for Post-Employment Restriction ViolationRead the Press Release
Deirdre Walsh, the former Chief Operating Officer of the Office of the Director of National Intelligence (ODNI), has agreed to pay $20,000 to resolve allegations that she violated post-government employment restrictions during the one-year cooling off period after she left the ODNI.
“The U.S. Department of Justice is committed to enforcing the restrictions imposed on officers and employees of the Executive Branch after they leave the government, especially those who held senior positions, in order to protect the integrity of the Executive Branch,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This resolution should work to deter individuals from attempting to exert undue influence on their former agency.”
“The collaboration between our IC OIG investigators and Department of Justice partners on this case exemplifies effective interagency oversight,” said Intelligence Community Inspector General Christopher Fox. “This outcome reinforces the critical importance of working across agency boundaries to strengthen national security. Regardless of position or title, we will hold people accountable.”
The United States alleged that within the first year after leaving employment at the ODNI, Walsh contacted an ODNI employee on behalf of her employer, a government contractor, regarding a request for equitable adjustment (REA) valued at approximately $18 million. Her employer’s senior leadership had identified Walsh as part of a “pressure campaign” in connection with the REA on or around the same day that Walsh contacted the ODNI employee. This conduct violated Walsh’s post-government employment restrictions under 18 U.S.C. § 207(c), which prohibits any former senior officer or employee of the Executive Branch from knowingly making, within one year of her termination and with the intent to influence, any communication to or appearance before any officer or employee of the department or agency in which she served within one year before such termination, on behalf of any other person, in connection with any matter on which she seeks official action by any officer or employee of such department or agency. Under 18 U.S.C. § 216(b), a person who violates Section 208 is liable for a civil monetary penalty, and Walsh has agreed to pay a $20,000 civil penalty to resolve the allegations that her conduct violated her post-government employment restrictions.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the Intelligence Community Office of the Inspector General.
The matter was handled by Trial Attorney Robin Overby of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Michigan Tax Preparers Indicted for Conspiring to Defraud the United States and Preparing False Tax ReturnsRead the Press Release
A federal grand jury in the Eastern District of Michigan returned an indictment today charging three tax preparers with conspiring to defraud the United States and preparing false tax returns over a three-year period.
According to court documents and statements made in court, Jamar Harten, of Shelby Township, Tabitha Scott, of Davisburg, and Tyree Monroe Jr., of Detroit provided tax preparation services for Michigan-based clients at Harten’s tax preparation business, First Class Tax and Consulting. For the year 2022, Harten, Scott, and Monroe allegedly prepared or assisted in the preparation of fraudulent tax returns for clients.
These tax returns allegedly contained fraudulent tax deductions and tax credits, which reduced the amount of taxable income reported by the clients and generated refunds the clients were not entitled to receive. According to the indictment, the clients did not provide Harten, Scott, and Monroe any information indicating they were eligible to claim the false deductions or credits. Harten and Scott allegedly provided prepared fraudulent tax returns for clients in 2021 and 2023 as well.
Harten, Scott and Monroe are each charged with one count of conspiracy to defraud the United States and multiple counts of assisting in the preparation of a false tax return. If convicted, all three face up to five years in prison for conspiracy to defraud the United States, as well as three years in prison for each count of helping to file false tax returns for clients.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Christopher P. O’Donnell and Joseph D. G. Castro of the Criminal Division’s Tax Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Sues Maryland over Sanctuary PoliciesRead the Press Release
Today, the Department of Justice filed a lawsuit against Maryland and Maryland Attorney General Anthony Brown over the State’s sanctuary policies that interfere with the federal government’s enforcement of its immigration laws.
“Federal immigration officers merely enforce the laws that our Nation’s elected representatives in Congress passed, reflecting the will of We the People,” said Associate Attorney General Stanley Woodward. “When sanctuary jurisdictions enact laws to shield illegal aliens from federal law enforcement, it is not merely federal law that is violated, but the voices of everyday American voters silenced. Today’s suit proves that this Department will never stand for such lawless action from blue state leaders.”
“The American people are ultimately the ones who suffer when states pass these irresponsible sanctuary policies,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The Department of Justice will always defend the Constitution and the rule of law, and it does so today by challenging Maryland’s efforts to thwart federal immigration enforcement.”
Not only are the sanctuary policies illegal under federal law, but, as alleged in the complaint, Maryland’s refusal to cooperate with federal immigration authorities has already had negative operational consequences for federal immigration law enforcement, with facilities refusing to facilitate transferring illegal aliens to federal custody even when presented with a routine detainer. The State’s and City’s intentional efforts to obstruct federal law enforcement put citizens at risk and are preempted under the Supremacy Clause of the U.S. Constitution.
Acting Attorney General Blanche has instructed the Department’s Civil Division to identify state and local laws, policies, and practices that facilitate violations of federal laws or impede lawful federal operations. Today’s lawsuit is the latest in a series of 20 other lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in Colorado, Connecticut, Illinois, and New York.
Justice Department Announces End to Illegal DEI Admissions Practices at Jersey City College Prep SchoolRead the Press Release
This week the Justice Department’s Civil Rights Division and the Jersey City Board of Education (the “District”) entered a voluntary settlement agreement to end race and national origin discrimination in student admissions at Dr. Ronald E. McNair Academic High School, a college prep magnet school with a competitive admissions process. The settlement agreement resolves the Department’s investigation under Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, or national origin.
“Quota systems that define students by their race or national origin have been illegal since the 1970s,” said Assistant Attorney General Harmeet K. Dhillon of the Department’s Civil Rights Division. “Federal law requires that all students, regardless of their race or national origin, be allowed to compete for admission to the best schools in their district — and this Department of Justice will ensure they have equal opportunity to do so.”
The Department’s investigation determined that McNair admitted students under a quota system that set aside a certain number of seats in four categories: “Black,” “White,” “Hispanic,” or “Other.” Applicants were divided into these categories based on their self-identification. After offering admission to an equal number of students in each category, McNair filled the remaining class seats without regard to race or national origin.
Under the settlement agreement, the District will overhaul its admissions process to end the practice of reserving a certain number of seats for students based on race or national origin. The District will no longer provide any preference or benefit to a McNair applicant based on his or her race or national origin. Before the next admissions cycle — which will be for the 2027-2028 school year — the District will adopt an admissions policy that complies with these prohibitions and train staff on nondiscriminatory admissions. In addition, the District will submit status reports to the Department on McNair’s admissions process. The settlement agreement will be in effect until Aug. 15, 2029, unless the Department and the District agree otherwise.
Additional information about the Civil Rights Division is available at www.justice.gov/crt, and more information about the Civil Rights Division’s Educational Opportunities Section’s work to combat discrimination is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov.
Illegal Alien Indicted for Transportation of Minor with Intent to Engage in Criminal Sexual ActivityRead the Press Release
LAFAYETTE – On Wednesday, June 17, 2026, a federal grand jury returned an indictment charging Kevin Renan Vargas Aguilera, 20, of Honduras, with Transportation of a Minor with Intent to Engage in Criminal Sexual Activity. He faces a mandatory minimum of 10 years and up to life in prison for the charge.
According to court documents, Vargas Aguilera is accused of transporting a 13-year-old girl from Amelia, Louisiana, to Texas in November 2025. The day of the abduction, the victim’s mother discovered the child missing and reported the matter to law enforcement who issued an endangered/missing child advisory. The indictment alleges Vargas Aguilera intended for the minor victim to engage in criminal sexual activity. Texas authorities arrested Vargas Aguilera and were also able to safely recover the minor child. Law enforcement was alerted to the whereabouts of the child by a member of the public who had seen the missing child advisory.
U.S. Attorney Zachary A. Keller for the Western District of Louisiana made the announcement.
The St. Mary Parish Sheriff’s Office, the Lufkin Police Department, and the Federal Bureau of Investigation investigated this case. It is being prosecuted by Assistant U.S. Attorney Elliott Cassidy with assistance from Paralegal Specialist Denise Duhon.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
You may find a copy of this press release (and any updates) on the website of the United States Attorney’s Office for the Western District of Louisiana at www.justice.gov/usao-wdla.
Related court documents and information may be found on the website of the District Court for the Western District of Louisiana at www.lawd.uscourts.gov or at https://www.lawd.uscourts.gov/cmecf-pacer. The case number for this matter is 6:26-cr-00247-01.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.
For more information about Project Safe Childhood, please visit Justice.gov/PSC.
###Public Affairs
United States Attorney’s Office
Western District of Louisiana
[email protected]
www.justice.gov/usao-wdla
Twitter @USAO_WDLA
Court Agrees with Justice Department that Environmental Groups Lack Standing to Challenge Deepwater PortRead the Press Release
The U.S. Court of Appeals for the Fifth Circuit yesterday denied a petition for review in a legal challenge to the Maritime Administration’s issuance of a deepwater port license to Delfin LNG. In denying the petition, the court held that three environmental groups failed to establish standing. The court did not rule on the merits of the case because the petitioners did not show any injury that might be traced to the challenged project.
“This project is an important part of the President’s energy dominance agenda, as evidenced by the President’s directives to the Maritime Administration about this project in his Unleashing American Energy Executive Order,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “The Fifth Circuit’s ruling will make it harder for environmental groups — who have no stake in important energy projects — to challenge projects that will bring jobs and prosperity to Americans.”
“This commonsense ruling ensures that this vital energy infrastructure project won't be derailed by Far Left climate activists,” said Maritime Administrator Stephen M. Carmel. “Under the President's directive, the Maritime Administration is proud to support the Delfin LNG Deepwater port’s operations and the good-paying jobs it'll create while unleashing America’s energy dominance.”
The Delfin deepwater port will export liquefied natural gas (LNG). The Maritime Administration first authorized the port in 2017. In 2024, the Biden Administration told Delfin that more environmental review was necessary and declined to issue a license for the port. In the January 2025 Unleashing American Energy executive order, President Trump directed the Maritime Administration to consider again whether additional environmental review was necessary and then to issue the license. The Maritime Administration licensed the project in March 2025.
Attorney Rebecca Jaffe of ENRD argued the case before the Fifth Circuit. Deputy Assistant Attorney General Robert Stander and Appellate Deputy Chief Robert Lundman of ENRD also worked on this matter.
United States to Pay $180 Million to Municipality of Anchorage, Alaska to Resolve Long-Running Port Litigation that began in 2014Read the Press Release
Today, the United States and the Municipality of Anchorage announced the resolution of Municipality of Anchorage v. United States, No. 14-166C (U.S. Court of Federal Claims), which has been pending since 2014. Under the settlement agreement, the United States will make a payment of $180 million to the Municipality in exchange for concluding this decade-long litigation against the United States for its alleged fault in the uncompleted Port of Alaska expansion project.
“I was honored to visit the Port of Alaska today to announce this settlement,” said Acting Attorney General Blanche. “Reaching this fair and reasonable resolution allows both parties to move beyond many years of litigation and instead focus on what matters most: modernizing and beautifying the Port of Alaska, while lowering costs for consumers.”
The settlement reflects the parties’ shared recognition that continued litigation would consume substantial public resources while delaying the opportunity to focus on the Port of Alaska’s future. Rather than lingering on the past, both parties will instead collaborate and prioritize how the port may best benefit both Alaska and the United States. By ending this long-running litigation, both the United States and the Municipality can redirect time, attention, and taxpayer resources toward their respective public missions rather than continued courtroom proceedings.
“Settlements such as this one reflect a reasoned judgment that certainty and public resource conservation are of greater value than another decade of litigation, which would detract from taxpayer resources and personnel focusing on the Department’s top priorities,” said Associate Attorney General Stanley Woodward. “Bringing this litigation to a close also creates a welcomed opportunity for collaboration among federal, state, and local partners to better support the long-term functionality and economic vitality of the Port of Alaska for the benefit of the American people.”
Today’s resolution allows both parties to shift their attention toward ensuring that the Port of Alaska continues to meet the needs of Alaska’s residents, businesses, and U.S. military installations for decades to come.
Justice Department Dismisses Alaska Lawsuit, Conceding Biden Era Oil and Gas Leasing Program Violated the LawRead the Press Release
The Department of Justice’s Energy and Natural Resources Division filed a stipulation today dismissing lawsuits by the State of Alaska and the Alaska Industrial Development and Export Authority, concerning those plaintiffs’ challenges to the 2024 Arctic National Wildlife Refuge Coastal Plain Oil and Gas Leasing Program.
The lawsuits arose because the 2024 Program had imposed various restrictions on development, with the effect of frustrating Congress’s directive that the Department of the Interior establish and administer a competitive oil and gas leasing program in the Coastal Plain region of the Arctic Refuge.
“The Biden era Alaska oil and gas leasing program violated the law and improperly limited Alaska’s energy potential with unreasonable regulation,” said Acting Attorney General Todd Blanche. “This settlement supports the Trump Administration’s commitment to secure American energy independence and our national security for generations to come.”
“This settlement sets the record straight that the Biden administration’s 2024 restrictions on oil and gas production in Alaska were overly restrictive and contrary to Congress’s clear command to establish a competitive oil and gas leasing program in Alaska’s Coastal Plain,” said Associate Attorney General Stanley Woodward. “Today’s correction of the prior administration’s congressional obstruction helps enhance America’s energy dominance and prevents any future repetition of overreaching policies that thwart our Nation’s best interests.”
“This settlement furthers President Trump’s commitment to unleash Alaska’s extraordinary resource potential,” said Adam Gustafson, Principal Deputy Assistant Attorney General of the Justice Department’s Energy and Natural Resources Division. “The Bureau of Land Management will now administer its oil and gas leasing program according to the plain meaning of the controlling statute. That means more oil leasing, more domestic energy, and more independence from foreign sources of energy.”
The settlement concedes that the 2024 Program violated the 2017 Tax Cuts and Jobs Act in various ways, including by:
- effectively abdicating Interior’s duty to conduct a second lease sale;
- closing 75% of the 1.56 million-acre Coastal Plain to exploration and leasing;
- imposing unreasonable surface use restrictions on the remaining 25%; and
- unreasonably restricting surface disturbance to 995 acres Program-wide, instead of the “up to 2,000 acres” explicitly provided for in the Tax Act.
The settlement advances national and energy security interests by clarifying the Tax Act’s requirements, identifying violations of those requirements, and prohibiting the Department of the Interior from repeating those violations in any future decision governing the Program.
Justice Department Announces Completion of Compliance Review After Minnesota Repeals Grant Program Based on Unlawful DEI CriteriaRead the Press Release
Today, the Justice Department announced that the Minnesota Department of Health (MDH) voluntarily resolved the Department’s compliance review under Title VI of the Civil Rights Act of 1964 (Title VI). The Department opened a review of MDH’s Capacity Strengthening Initiative grant program because it used race, color, and national origin to determine which applicants received funding. Because MDH has now ended the grant program, the Department is closing its review.
“Recipients of federal dollars cannot decide who benefits from those funds on the basis of race, color, or national origin,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department appreciates that the State of Minnesota has recognized this foundational principle and has repealed the statute governing the program.”
The Capacity Strengthening Initiative grant program was purportedly established to help organizations serving “people of color.” The grant program limited eligible grantees to organizations that worked with “people of color,” provided “strategic consideration and g[a]ve priority” to proposals from organizations “led by populations of color,” and ensured that grant funds were prioritized and awarded to organizations that were within counties that had a higher proportion of “Black or African American” and “nonwhite Latino(a)” communities. After the Department notified MDH of the compliance review, Minnesota repealed the Capacity Strengthening Initiative grant program’s enabling statute and MDH confirmed the program had ended.
Title VI prohibits race, color, or national origin discrimination by recipients of Federal financial assistance, including the Minnesota Department of Health. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Reaches Proposed Settlement with Willow Bridge, One of America’s Largest Landlords, to Resolve Information Sharing and Algorithmic Coordination ClaimsRead the Press Release
The Justice Department’s Antitrust Division filed a proposed settlement today to resolve the United States’ claims against Willow Bridge Property Company LLC, as part of its ongoing enforcement action in the Middle District of North Carolina against algorithmic coordination, the use of competitors’ competitively sensitive data, and other anticompetitive practices in rental markets across the country. Today’s proposed settlement builds on the Justice Department’s success in obtaining proposed settlements in the same enforcement action against RealPage Inc. and three other large landlords, Cortland Management LLC, Greystar Management Services LLC, and LivCor LLC.
As alleged in Plaintiffs’ Jan. 7, 2025 complaint, Willow Bridge, alongside five other landlord co-defendants, actively engaged in a scheme to set their rents using each other’s competitively sensitive information through pricing algorithms. Willow Bridge and these other landlords shared competitively sensitive data to generate pricing recommendations using RealPage’s algorithms, which also included anticompetitive rules that aligned pricing. Moreover, Willow Bridge and the other landlords spoke with one another on competitively sensitive topics, including pricing strategies, rents, and parameters for RealPage’s software.
“Affordability for American consumers is only achieved when competition thrives, which requires companies to make independent pricing decisions,” said Associate Attorney General Stanley Woodward. “Companies cannot share sensitive data and manipulate AI tools or algorithms to produce market aligned pricing. That is not only illegal, but exploitative of Americans’ everyday housing needs. This Department will not stand for it.”
“Corporate landlords have been destabilizing the rental housing market for too long,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “The Antitrust Division will remain proactive in taking affirmative measures to stop pricing algorithms from harming renters.”
If approved by the court, the proposed consent decree would require Willow Bridge to:
- Refrain from using any anticompetitive algorithm that generates pricing recommendations using its competitors’ competitively sensitive data or that incorporates certain anticompetitive features;
- Refrain from sharing competitively sensitive information with competitors;
- Accept a court-appointed monitor if it uses a third-party pricing algorithm that is not certified pursuant to the terms of the consent decree;
- Refrain from attending or participating in RealPage-hosted meetings of competing landlords; and
- Cooperate with the United States’ claims against other defendants.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlement within 60 days following the publication to Danielle Hauck, Acting Chief, Technology and Digital Platforms Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 7050, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the Middle District of North Carolina may enter the final judgment upon finding it is in the public interest.
Willow Bridge is a residential property manager headquartered in Dallas, Texas.
Note: See the Proposed Final Judgment here, the Stipulation and Order here, and the Competitive Impact Statement here.
Justice Department and Federal Trade Commission Issue Call to Action to State Attorneys General to Follow Federal Enforcers in Investigating Antitrust and Consumer Protection Violations Causing High Gas PricesRead the Press Release
The Justice Department’s Antitrust Division and the Federal Trade Commission warn lawbreaking companies that they are closely monitoring petroleum markets and gas prices and will take all appropriate measures to stop illegal conduct contributing to high gas prices.
Today, the agencies sent a letter to State Attorneys General encouraging them to similarly conduct investigations and bring appropriate enforcement actions under their state antitrust and consumer protection laws. This call to action includes ensuring that companies manipulating retail prices or colluding with their competitors in petroleum markets are held accountable. The letter reinforces the importance of state engagement on potential price gouging and directs consumers to resources to report violations of antitrust laws.
“Affordable energy is essential to a thriving American economy. The Antitrust Division is committed to working alongside state law enforcement partners to provide resources and support to protect consumers from anticompetitive behavior that raises the price of gas,” said Associate Attorney General Stanley Woodward. “The Antitrust Division will use all available tools to ensure that companies are held accountable for unlawfully manipulating the market.”
Members of the public are also encouraged to potential violations of the antitrust laws to the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or www.justice.gov/atr/report-violations. The Antitrust Division may also pay significant financial rewards to individuals who report antitrust crimes. For more information, see www.justice.gov/atr/whistleblower-rewards. Anyone can also report suspected antitrust violations and unfair or deceptive practices to the Federal Trade Commission at ReportFraud.ftc.gov.
Justice Department Rejects International Criminal Court Jurisdiction over U.S. PersonsRead the Press Release
In a letter this week addressed to the President of the International Criminal Court (ICC), Acting Attorney General Todd Blanche wrote that the Department of Justice rejects any assertion of jurisdiction by the ICC over Americans.
The United States is not a party to the Rome Statute and has never consented to the ICC’s authority. As a matter of international law, a treaty cannot bind a non-consenting country. Accordingly, the ICC has no jurisdiction over Americans — anywhere in the world — and any attempt to assert such authority is illegitimate, unlawful, and a direct affront to the sovereignty of the United States.
“The ICC has acted in an increasingly lawless and illegitimate manner,” writes Blanche in his letter to Judge Tomoko Akane, President of the International Criminal Court. “Its record of selective enforcement and credible allegations of internal misconduct raise serious doubts about the ICC’s impartiality, credibility, and legitimacy.”
In 2002, Congress passed the American Servicemembers’ Protection Act which expressly repudiates ICC jurisdiction over U.S. persons, including U.S. servicemembers, government officials, and civilians. The statute prohibits cooperation with the ICC and authorizes the President to use all means necessary and appropriate to secure the release of any U.S. person detained pursuant to any ICC warrant or request.
Going forward, the United States will not cooperate with any ICC investigation, inquiry, summons, or proceeding. This includes the extradition or transfer any U.S. person to the ICC. The Department will also oppose any effort by other countries to do so.
“The Department of Justice is fully committed to defending our Nation’s sovereignty and protecting the rights of U.S. persons against unlawful international overreach,” the letter continues. “Our Constitution — the supreme law of the land — vests the judicial power of the United States in its own courts, and our legal system is the envy of the world. The United States will not subordinate the liberty and security of our people to a foreign tribunal in The Hague with no accountability to any electorate or fidelity to the Constitution.”
Iowa Man Waives $17.7M Discharge After USTP Investigation into Sham LoansRead the Press Release
Jeffrey Garth Ewing, of Iowa, agreed to waive his bankruptcy discharge of more than $17.7 million in debts after an investigation by the Department of Justice’s U.S. Trustee Program (USTP). The USTP’s investigation found that Ewing had transferred nearly $400,000 to companies he controlled to shield the funds from his creditors.
On June 15, the Bankruptcy Court for the Southern District of Iowa approved Ewing’s voluntary waiver. As a result, Ewing remains liable for his debts and creditors are free to pursue payment from him after the case is closed.
“Debtors who seek to defraud their creditors also attack the integrity of the bankruptcy system. The USTP remains vigilant to keep the system strong and fair,” said Acting U.S. Trustee Mary Jensen of Region 12, which includes the Southern District of Iowa.
Ewing developed housing communities for older adults throughout the Midwest. In March 2024, Ewing and his wife filed chapter 11 reorganization cases on behalf of themselves as well as several of their businesses, but the bankruptcy cases were dismissed a month later for failure to file required bankruptcy documents.
In January 2025, Ewing and his wife filed a chapter 7 liquidation case. Ewing claimed that the couple had loaned nearly $400,000 to three of their businesses after the chapter 11 dismissals but before the chapter 7 filing. However, an investigation by the USTP’s Des Moines, Iowa, office found evidence that Ewing had transferred the funds to hide them from his creditors between the bankruptcy filings. The loans had no documentation except in one instance that relied on a promissory note that Ewing admitted to backdating. Ewing also asserted that the couple’s adult children owned two of the companies but the USTP’s investigation found that Ewing maintained control of the businesses’ finances.
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 82 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.
Eight Illegal Alien Tren de Aragua Members from Venezuela Charged with Kidnappings that Resulted in Death, Racketeering Involving Murder, and Other Violent Offenses in Texas and Illinois Following Homeland Security Task Force InvestigationsRead the Press Release
Note: A copy of the indictment in the Northern District of Texas can be found here. A copy of the complaint and affidavit in the Northern District of Illinois can be found here.
The Department of Justice announced charges filed in the Northern Districts of Illinois and Texas against eight alleged members of designated foreign terrorist organization Tren de Aragua (TdA) for murders, kidnappings, and firearms offenses. All eight defendants charged in these Homeland Security Task Force operations are illegal aliens believed to be from Venezuela who illegally enter the United States between December 2021 and April 2024. One defendant charged in Northern Texas is now in custody in Colombia for unrelated charges.
“Eight TdA members illegally entered the United States between 2021 and 2024 and are alleged to have committed horrific crimes, including murdering a father in front of his teenage daughter,” said Acting Attorney General Todd Blanche. “This should never have happened in the first place, but under the Biden administration, open-border policies left the doors wide open, and hundreds of suspected and convicted Tren de Aragua terrorists poured into this country. In the 18 months since President Trump stopped this madness, designating Tren de Aragua a foreign terrorist organization, we have charged nearly 350 of its members and associates with egregious violent crimes – murders, sex trafficking, kidnapping – along with weapons and drug trafficking, robbery, and widespread financial crimes. This work requires an all government, all law enforcement approach, which is precisely what has happened under the leadership of President Trump.”
TdA is a violent transnational criminal organization that originated as a prison gang in Venezuela in the mid-2000s. TdA has expanded its criminal network throughout the Western Hemisphere and established a presence in the United States. TdA’s criminal activities include a variety of violent and criminal offenses, including drug trafficking, firearms trafficking, commercial sex trafficking, kidnapping, robbery, theft, fraud, and extortion. TdA members also commit murder, assault, and other acts of violence to enforce and further the organization’s criminal activities.
As alleged in court documents, in the United States, TdA is organized into subsets or cells based on geographic area of operation. Each regional cell typically has one or more leaders who are responsible for, among other things, managing the criminal enterprise’s activities in the territory, collecting money from other members and associates to finance gang activities and crimes, directing day-to-day management of the region, and planning and ordering acts of violence against rival gang members, associates, and other victims. The leaders of these subsets or cells report to, receive directives from, and distribute criminally-derived assets and proceeds to TdA leaders throughout the United States, Mexico, Central America, and South America.
Since Jan. 20, 2025, the Department has federally charged over 300 members and associates of TdA across 28 districts.
“President Trump‘s historic leadership designating Tren de Aragua as a Foreign Terrorist Organization has given this FBI and our law-enforcement partners the tools we need to wipe out their operations,” said FBI Director Kash Patel. “Now, every single day across this country, we are decimating their presence in America - dismantling and disrupting over 2,700 violent gangs, a 365% increase, with a 500% increase in Tren de Aragua arrests since 2024. Today, thanks to tremendous work from FBI Chicago, FBI Dallas, and our partners as part of the FBI’s nationwide violent crime initiative Summer Heat 2.0, eight more alleged TdA members who entered the United States under the previous administration have been indicted or arrested and will face justice for their crimes.”
“The complaint against these three TdA members should leave no doubt that the Chicago U.S. Attorney’s Office is going to aggressively pursue transnational criminal organizations and hold their members and associates accountable for their violent criminal acts,” said U.S. Attorney Andrew Boutros for the Northern District of Illinois. “We will continue to prioritize the investigation and prosecution of TdA, which very deservedly has been designated by President Trump and his Administration as a terrorist organization. Our shared goal is crystal clear: to disrupt and dismantle TdA and not allow it to gain a foothold in the United States or Chicagoland. This Fourth of July weekend, as we celebrate the 250th birthday of the greatest nation on earth, many families in the Chicago area will celebrate with loved ones because the whole of federal government in Chicago is taking violent crime seriously and in a way that hasn’t been seen in years. The result is that the scourge of violence that has gripped Chicago for too long is beginning to see relief.”
“On this 250th anniversary of the birth of our great nation, I am reminded of how lucky we are to enjoy the many freedoms that our country provides. Which is why, as U.S. Attorney, I am laser focused on ensuring that North Texans can enjoy freedom and safety in all our communities,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “This indictment of TdA gang members is a significant step to ensure that this dangerous transnational gang does not oppress, intimidate or harm our fellow North Texans. Let this serve as a warning to all TdA members: you will not gain a stronghold in the Northern District of Texas.”
“Violent transnational gangs like Tren de Aragua pose a significant and ongoing threat to the safety of our communities,” said Acting Executive Associate Director John A. Condon of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI). “This indictment is a testament to the dedication of our agents and the strength of our partnership through the Homeland Security Task Force. By working closely with federal, state, and local law enforcement, HSI continues to disrupt violent criminal organizations and protect communities across the United States.”
Case summaries are below:
Northern District of Illinois
On June 29, three alleged members of the transnational criminal organization, TdA, were charged in the Northern District of Illinois with participating in a conspiracy to kidnap and murder a man in Chicago.
The criminal complaint charges Josue Pacheco Torres, 26, Julian Pachano, 19, and Kleiver Monasterio Briceno, also known as “Goofy,” 20, with kidnapping conspiracy and committing a kidnapping that resulted in death. The three defendants are believed to be Venezuelan nationals. Pachano was arrested late last night, while Torres was arrested early yesterday morning. Monasterio Briceno was already in law enforcement custody.
According to the complaint, the defendants conspired to kidnap a man who was walking near Meyering Park on the South Side of Chicago on May 18. The victim was forced into a car and initially driven to a Chicago apartment. The defendants and other co-conspirators later transported the victim — while his wrists were bound together behind his back — to an abandoned building in Chicago, the complaint states.
The following night, the victim’s mother contacted Chicago Police to request a wellness check at the abandoned building. The mother told police that she had been directed to the building by an individual with whom the mother had been communicating on the online messaging application WhatsApp. According to the complaint, Chicago Police entered the building and found the victim deceased inside the bathroom of an abandoned unit. The victim, who was discovered facedown with his wrists bound behind his back, had been shot multiple times and had also suffered blunt force injuries to his head, arms, neck, hands, and torso, the complaint states.
According to the complaint, the conspiracy to kidnap and murder the victim was carried out in connection with the defendants’ involvement in TdA. Since 2024, law enforcement in Chicago has been investigating acts of violence, including murders and shootings, involving suspected members of TdA and its splinter faction, Anti-Tren.
Additionally, at the time of the murder, Pacheco Torres was wearing an ankle monitoring bracelet as a condition of his pretrial release in a criminal prosecution pending in the Circuit Court of Cook County, Illinois.
The charges and arrests were announced by U.S. Attorney Andrew S. Boutros for the Northern District of Illinois, Special Agent in Charge Douglas S. DePodesta of the FBI Chicago Field Office, and Special Agent in Charge Matthew Scarpino of HSI Chicago Field Office. The Chicago Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Chicago Field Office provided valuable assistance in this investigation.
Assistant U.S. Attorneys Sushma Raju, Simar Khera, and Michael Spitulnik for the Northern District of Illinois and Joint Task Force Vulcan Trial Attorneys Jun Xiang, Katelan Doyle, and Andrew K. Chan are prosecuting this case.
Photo of TdA defendants and a coconspirator kidnapping victim in Chicago, from the criminal complaint.Northern District of Texas
On June 30, a grand jury in the Northern District of Texas returned charges against five alleged members of TdA. All five defendants are citizens and nationals of Venezuela.
The defendants Hector Asdrubal Garcia Zuniga, also known as “Murry” and “Munra,” 36; Carlos Luis Zambrano Bolivar, 27; Jhonny Jesus Martinez Serrano, 31; Jhonatan Nahin Toro Gonzalez, 23; and Ehiker Alexander Morales Mendoza, also known as “El Ingeniero” and “El Negro,” 39, were indicted on racketeering charges involving murder, kidnapping, and other violent offenses.
Each defendant is charged with racketeering conspiracy for allegedly conspiring and agreeing with one another, and with others, to conduct and participate directly and indirectly in the conduct of the affairs of the TdA enterprise through a pattern of racketeering activity, which consisted of multiple acts involving murder, kidnapping, robbery, and bank fraud. Each defendant is charged with kidnapping in aid of racketeering for allegedly kidnapping three individuals on or about August 24, 2024, for the purpose of maintaining and increasing position in TdA. Garcia Zuniga, Zambrano Bolivar, and Martinez Serrano are also charged with murder in aid of racketeering for allegedly aiding and abetting each other in committing the murder of one of the individuals who was kidnapped on or about August 24, 2024. Additionally, Zambrano Bolivar is charged with using and carrying a firearm during and in relation to a crime of violence and causing death through the use of a firearm.
The charges were announced by U.S. Attorney Ryan Raybould for the Northern District of Texas, Special Agent in Charge R. Joseph Rothrock of the FBI Dallas Field Office, Special Agent in Charge Travis Pickard of HSI Dallas Field Office, and Chief of Police Kevin McCoy of the Farmers Branch, Texas Police Department.
Assistant U.S. Attorneys Jeremy Fugate and Caroline Poore for the Northern District of Texas and Joint Task Force Vulcan Trial Attorneys Jacob Operskalski, Kelly McGann, Stefani Hepford, and Josie Thomas are prosecuting this case.
If convicted, the defendants in both the Northern District of Illinois and the Northern District of Texas face up to life in prison. Pacheco Torres, Monasteria Briceno, Garcia Zuniga, Zambrano Bolivar, and Martinez Serrano also face the possibility of the death penalty.
These cases are part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTFs Chicago and Dallas comprise of agents and officers from the FBI, HSI, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms, and Explosives ATF, IRS Criminal Investigation (IRS-CI), U.S. Secret Service (USSS), U.S. Marshals Service, U.S. Postal Inspection Service (USPIS), Department of State’s Bureau of Diplomatic Security Service (DSS), HIDTA, and other federal, state, and local law enforcement, with the prosecution being led by the U.S. Attorney’s Office for the Northern Districts of Illinois and Texas.
These cases are also part of Joint Task Force Vulcan (JTFV). JTFV was created in 2019 to eradicate MS-13 and now expanded at the direction of the Attorney General to target TdA. JTFV is comprised of U.S. Attorney’s Offices across the country, including the Southern and Eastern Districts of New York; Eastern and Western Districts of North Carolina; Western District of Virginia; Southern District of Florida; Eastern District of Texas; Western District of Oklahoma; Northern District of Indiana; District of Nevada; and District of Arizona; as well as the Executive Office for U.S. Attorneys, and the Department of Justice’s National Security Division, and the Office of Judicial Attaché and DEA partners in Bogotá, Colombia. Additionally, the FBI, HSI, ATF, U.S. Marshals Service, and the Federal Bureau of Prisons are essential law enforcement partners with JTFV.
A complaint and indictment are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
DOJ and FTC Issue Fiscal Year 2025 Hart-Scott-Rodino Annual ReportRead the Press Release
The Department of Justice’s (DOJ) Antitrust Division and Federal Trade Commission released their 48th Annual Hart-Scott-Rodino (HSR) Report. This report summarizes the agencies’ merger enforcement efforts and provides fiscal year 2025 data on the Premerger Notification Program, which alerts the agencies to transactions that may substantially lessen competition in violation of federal law.
Enacted by Congress in 1976, the HSR Act gives the DOJ and the FTC the opportunity to investigate and challenge mergers that are likely to harm consumers before injury occurs. The report explains that in fiscal year 2025, companies notified the agencies of 2,006 transactions under the HSR Act, of which approximately 31.8% were valued at more than $1 billion.
The DOJ and the FTC took 18 merger enforcement actions to maintain competition in critically important markets, including healthcare, technology, energy, defense, consumer goods and services, labor and manufacturing.
The DOJ brought ten of these actions: two in which the DOJ initiated litigation, two were resolved by the DOJ filing settlement papers simultaneously with the complaints in U.S. district courts, two that the parties abandoned before litigation commenced as a result of antitrust concerns raised during the DOJ’s investigation, and four that were restructured after the DOJ raised concerns about the threat they posed to competition.
Justice Department Sues the Commonwealth of Virginia for Unconstitutional Weapons BansRead the Press Release
The Justice Department filed a lawsuit today against the Commonwealth of Virginia and the Virginia State Police alleging that a newly enacted Virginia law unconstitutionally bans the purchase and sale of ordinary semi-automatic rifles owned by millions of Americans.
“The Constitution is not a suggestion, and the Second Amendment is not a second-class right,” said Acting Attorney General Todd Blanche. “This Justice Department has done more to protect the Second Amendment than any administration in our nation’s history, and we will continue to do so whenever necessary.”
“On April 10, I promised Governor Spanberger that we would sue Virginia if she signed this unconstitutional weapons ban into law. I keep my promises,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Law-abiding Americans should not have to live under threat of criminal sanction for simply exercising their Second Amendment right to possess arms owned by millions of their fellow citizens.”
The Virginia law makes the commercial purchase of AR-15-style rifles a crime. The AR-15 rifle is the most popular rifle in America. Virginia’s enforcement of the new ban is a pattern or practice of conduct by the commonwealth’s law enforcement officers that deprives the citizens of Virginia of their constitutional right to buy and sell arms protected by the Second Amendment.
The Civil Rights Division’s Second Amendment Section enforces the Second Amendment. If you believe your right to keep and bear arms is being infringed, please submit a complaint through www.justice.gov/crt/second-amendment-section.
Justice Department Sues California to Halt Glock BanRead the Press Release
The Justice Department filed a lawsuit today against California to halt the state’s newly enacted Glock Ban. The lawsuit also seeks to prevent enforcement of the state’s “Handgun Roster” — a list limiting legal firearms that individuals may purchase. The United States challenges both as unlawful under the Second Amendment.
“The Second Amendment is a sacred right belonging to all Americans, even those in California. California cannot ban the most popular type of handgun in America,” said Acting Attorney General Todd Blanche. “We will work to stop this blatant trampling of our rights by the California government to protect the rights of lawful gun owners.”
“The Civil Rights Division will defend law-abiding citizens from states that seek to disarm them illegally,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This lawsuit is yet another example of this Justice Department enforcing the Second Amendment by protecting citizens against unconstitutional state regulation of firearms.”
California’s new law would ban the retail purchase of common handguns manufactured by Glock and guns with similar firing mechanisms. The state’s existing “Handgun Roster” further limits the types of handguns citizens can lawfully purchase in California. The United States Supreme Court recently reaffirmed that the Second and Fourteenth Amendments protect the right to carry handguns outside the home for self-defense in Wolford v. Lopez. The Court reiterated that states cannot prevent citizens from using commonly used firearms for self-defense.
The Civil Rights Division’s Second Amendment Section enforces the Second Amendment. If you believe your right to keep and bear arms is being infringed, please submit a complaint through www.justice.gov/crt/second-amendment-section.
Justice Department Secures Case Dismissal Where Groups Sought to Force EPA to Initiate Rulemaking to Ban a Chemical Used to Create High-Octane GasRead the Press Release
In an order issued last week, the U.S. District Court for the Central District of California granted the Justice Department’s motion — on behalf of the Environmental Protection Agency (EPA) — to dismiss a suit filed by several groups to compel the EPA to initiate a rulemaking to ban the use of hydrogen fluoride in oil refining. The plaintiffs filed their suit after EPA denied an administrative petition seeking the same ban.
Hydrogen fluoride is a chemical used in a wide variety of manufacturing operations. At oil refineries, it is used to produce high-octane gasoline necessary for the performance of high-powered engines.
“We are pleased the court declined plaintiffs’ attempt to ban a chemical needed for the fuel that powers American transportation,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “Although the court rightly dismissed the case on standing grounds, we also explained in our motion that plaintiffs failed to state a claim under the Toxic Substances Control Act and did not demonstrate unreasonable risk to human health and the environment from refineries’ use of hydrogen fluoride.”
In its decision, the court agreed with EPA that the plaintiffs failed to demonstrate that their members face a “credible threat” of harm from an accidental release of hydrogen fluoride from a refinery near where members of the plaintiff groups live. The court found that plaintiffs’ complaint was conclusory and lacked detail sufficient to establish actual or imminent injury for Article III standing purposes. The court noted that allegations of incidents at refineries did not suffice to show that community members outside of refineries would be injured. The court granted plaintiffs “one more chance” to amend their complaint to address the standing issues but was skeptical that they could demonstrate injury in fact.
Attorneys from ENRD’s Environmental Defense Section are handling the matter.
Federal jury convicts North Carolina man who catfished a minor for child sexual abuse materialRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a North Carolina man yesterday on charges of coercion and enticement of a minor to engage in illegal sexual activity and receipt of child sexual abuse material (CSAM).
According to court records and evidence presented at trial, between Feb. 17 and March 3, 2023, Matthew Thomas Becker, 23, of Boone, North Carolina, exchanged sexual messages and sexually explicit images and videos with a 14-year-old victim on X (formerly Twitter). After exchanging only six messages, Becker, posing as a teenage girl, began sending the victim sexually explicit images and videos. Becker sold to the victim access to a folder on a cloud-based file sharing platform that Becker claimed contained “18 pics and 2 vids” of the female he pretended to be.
On Feb. 20, 2023, Becker asked the victim how old he was and the victim told Becker he was 15. Becker then negotiated to pay the victim to send Becker a sexually explicit video, which he did. On March 3, 2023, Becker convinced the victim to send again a sexually explicit video because his previous X account had been suspended.
Becker faces a mandatory minimum of 10 years and up to life in prison when sentenced on Dec. 16. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force investigated this case. The FBI’s Charlotte Office provided substantial assistance in the investigation of this case.
Assistant U.S. Attorneys Lauren Halper and Laura D. Withers are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 1:26-cr-21.
Defendants Sentenced for Visa Fraud and Conspiracy to Commit Illegal Entry by False or Misleading StatementsRead the Press Release
Hagåtña – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants, Jung Hoon Song, a citizen of the Republic of Korea, and Bonnie Jo C. Quichocho, from Barrigada, Guam, were sentenced in the District Court of Guam for their roles in visa fraud involving U.S. Citizenship and Immigration Services (“USCIS”).
- Jung Hoon Song, age 49 – pleaded guilty to Visa Fraud, in violation of 18 U.S.C. § 1546(a), with a sentence of one-year probation, a $500 fine, and a $100 special assessment fee. The Court ordered Song to report to immigration officials for potential deportation proceedings.
- Bonnie Jo C. Quichocho, age 50 – pleaded guilty to Conspiracy to Commit Illegal Entry by False or Misleading Representation, in violation of 18 U.S.C. § 371 and 8 U.S.C. § 1325(a)(3), with a sentence of six months of probation, a $500 fine, and a $100 special assessment fee.
The defendants’ conspiracy spanned from January 2008 to May 2022. They married on December 24, 2011, and then filed a Form I‑130 Petition for Alien Relative and a G-325A Biographic Information Form with USCIS. In these documents, Quichocho and Song misrepresented that they resided together in Guam. The documents were filed for Song to obtain a Permanent Resident Card, also known as a “green card,” enabling him to live and work in the United States. Based on these petitions, Song obtained conditional permanent resident status on June 7, 2012, along with a green card.
On May 7, 2014, Quichocho and Song jointly submitted a Form I‑751 petition to remove the conditions on Song’s green card, again falsely representing that they lived together. In fact, the defendants never resided together at any time before or after their marriage, and the false statements were made to obtain immigration benefits for Song. The defendants divorced on May 17, 2018.
“Federal law enables immigrants to acquire permanent resident status after entering legitimate marriages,” stated United States Attorney Anderson. “Aliens who engage in sham marriages to gain legal status, and those who assist them, undermine the integrity of this process. We will continue to work closely with the Department of Homeland Security to combat fraud, waste, and abuse in our immigration system.”
“This sentencing is a reminder that actions have consequences under our country’s immigration laws,” said CJ Ammons, Acting Special Agent in Charge of Homeland Security Investigations. “HSI will continue to work alongside our federal and local partners in Guam to hold individuals accountable under the more than 400 federal laws we are tasked with enforcing.”
"USCIS will relentlessly pursue marriage fraud to protect the lawful immigration process,” stated USCIS spokesman Zach Kahler. “This outcome highlights a great partnership within federal law enforcement and our commitment to ensure that immigration benefits aren’t given to those who commit fraud against the United States."
This case was investigated by Homeland Security Investigations – Guam and USCIS.
Assistant United States Attorney Rosetta L. San Nicolas prosecuted this case in the District of Guam.
Court Dismisses Case Challenging Exemptions for Company to Restart Nuclear Power Plant in MichiganRead the Press Release
Last week, the U.S. District Court for the Western District of Michigan dismissed a lawsuit challenging an exemption decision by the Nuclear Regulatory Commission (NRC) concerning the Palisades Nuclear Power Plant in Covert Township, Michigan. The court found that the Atomic Energy Act and the Hobbs Act channel review of an exemption decision related to a licensing proceeding to the U.S. Courts of Appeals.
Congress created the NRC to license and regulate commercial nuclear power plants and other uses of nuclear material. Consistent with Congress’s broad grant of authority under the Atomic Energy Act, the NRC has promulgated regulations under which an individual or entity may receive, renew, amend, or terminate a license concerning a nuclear power plant. As concerns this lawsuit, the NRC may, in certain situations, grant exemptions from regulatory requirements.
In March 2023, Holtec Decommissioning International LLC (Holtec) alerted the NRC that it sought to restart Palisades, a shutdown and defueled nuclear power plant. Holtec submitted to the NRC a request to be exempted from certain provisions, alongside requests to amend the Palisades operating license, and to transfer reactor-operating authority under the license. In July 2025, the NRC issued Holtec the requested exemption, alongside the requested license amendments, and the application to transfer operating authority for Palisades.
Plaintiffs challenged NRC’s actions. The court’s dismissal reaffirmed that Congress charted a specific path for lawsuits challenging final orders by the NRC. Specifically, the Hobbs Act vests the U.S. Courts of Appeals with exclusive jurisdiction to review all final orders of the NRC concerning nuclear licensing, including, as is the case here, the July 2025 exemption decision.
“We are pleased that the court left in place the NRC’s exemption decision, which will allow the Palisades plant to move forward toward restart,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “By clearing the way for this project, the court’s decision advances domestic energy production and allows American communities to benefit from reliable nuclear power.”
Attorneys with ENRD’s Natural Resources Section handled this matter.
32 Dogs Seized After Court Orders Access for USDA to Inspect Iowa Dog Breeder’s FacilityRead the Press Release
Yesterday afternoon, Iowa law enforcement seized 32 dogs from a dog breeder, Wuanita Swedlund, and placed them in a local animal shelter. The seizure occurred after the U.S. District Court for the Southern District of Iowa issued a temporary restraining order (TRO) against Swedlund last week based on claims that she repeatedly failed to grant Department of Agriculture (USDA) officials access to inspect her facility, animals, and records in violation of the Animal Welfare Act (AWA).
“We filed this action to ensure that USDA inspectors had the opportunity to assess the care dogs were receiving at a breeder’s facility in Iowa,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Energy and Natural Resources Division (ENRD). “As a result of the district court’s order, federal and state inspectors found numerous AWA violations and moved 32 dogs to facilities that will give them the care they need. The AWA sets clear standards for the humane treatment of animals, and we are committed to ensuring those standards are enforced.”
“The U.S. Department of Agriculture is committed to working closely with the U.S. Department of Justice on enforcing the Animal Welfare Act. This case demonstrates as much,” said General Counsel Tyler Clarkson of the USDA.
According to the complaint, filed with a motion for TRO and preliminary injunction, Swedlund allegedly engaged in a pattern and practice of violating the AWA while operating a dog breeding facility in Farmington, Iowa. Inspectors with USDA’s Animal and Plant Health Inspection Service (APHIS) have allegedly tried but not been allowed to access her facility, animals, and records for routine inspections seven times over the last 10 months.
The motion for emergency relief states that APHIS has cited Swedlund for at least 25 violations of the AWA since she received her license in 2023. The violations include deaths of puppies, failure to treat dogs’ obvious injuries and medical conditions, keeping dog enclosures covered in feces, and leaving dogs without access to drinking water.
After the court issued the TRO requested by the United States, inspectors from APHIS and the Iowa Department of Agriculture and Land Stewardship (IDALS) coordinated and obtained access to Swedlund’s facility. APHIS cited Swedlund for dozens more AWA violations and, based on the results of their concurrent inspection, the State obtained a search warrant and took possession of the animals. All 32 dogs found at the facility have been placed in a local animal shelter.
The USDA referred this matter to the Justice Department based on concern about the conditions in Swedlund’s facility. The temporary restraining order will assist USDA with assessing the health and well-being of the animals in Ms. Swedlund’s possession. This lawsuit follows the Prioritization of Animal Welfare Enforcement memorandum issued by the Attorney General in February.
USDA’s APHIS is investigating this matter for the federal government.
Trial Attorneys Kamela A. Caschette, Michelle M. Spatz, and Bonnie M. Ballard of ENRD’s Wildlife and Marine Resources Section are handling this matter.
Telemedicine Company Owner and Author of Health Care Compliance Books Sentenced for $136M Medicare Fraud SchemeRead the Press Release
The owner of two telemedicine companies was sentenced today to 120 months in prison and ordered to pay $66 million in restitution for her role in a scheme to fraudulently bill Medicare for medically unnecessary durable medical equipment and prescription drugs.
According to court documents and statements made in court, Jean Wilson, 54, of Richmond Hill, Georgia, is a licensed nurse practitioner who owned and operated two telemedicine companies between 2017 and 2019. Through these companies, Wilson and others paid illegal kickbacks to medical providers to sign orders for orthotic braces and prescriptions for pharmaceutical drugs for Medicare beneficiaries, even though the beneficiaries did not need the braces or drugs. Wilson signed many of the prescriptions herself.
“The defendant—a nurse practitioner responsible for the care and safety of her patients—exploited our health care system, conspiring to submit over $136 million in false and fraudulent claims to Medicare,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Today’s lengthy sentence underscores the Fraud Division’s commitment to fighting fraud at every turn to restore public trust in our institutions. We will work tirelessly to hold corrupt medical professionals accountable and recover stolen taxpayer dollars for the American people.”
After acquiring the signed orders and prescriptions, Wilson and others illegally sold them to purported marketing companies for approximately $90 per Medicare beneficiary. The marketing companies often re-sold the orders to brace companies and pharmacies, which in turn submitted claims for medically unnecessary braces and drugs to Medicare. Wilson and her coconspirators at marketing companies pressured Medicare beneficiaries into accepting as many braces as possible, and evidence showed that practitioners working for Wilson signed orders for four or more orthotics per beneficiary for over 3,000 beneficiaries. In fact, over 40 beneficiaries received orders for ten or more orthotics. Wilson attempted to conceal her conduct by using shell accounts and putting in place nominee owners for her companies, including using a member of Wilson’s church to open a bank account in the name of one of her telemedicine companies. During the conspiracy, Wilson and others submitted over $136 million in false and fraudulent claims to Medicare, of which Medicare paid over $66 million. Wilson and her husband Reinaldo Wilson, who was previously sentenced to 7 years for his involvement in the conspiracy, used illicit proceeds from the scheme to purchase luxury vehicles, including multiple Rolls-Royces.
After her arrest and indictment, Wilson held herself out as a “Medical Professional Legal Consultant” and authored multiple books on health care compliance. In her book, “Avoiding Health Care Pitfalls,” Wilson warned, “Some entities and individuals will try to use you as a way to make them millions!”
Wilson pleaded guilty in March 2024 to conspiracy to commit wire fraud and health care fraud.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Special Agent in Charge Stefanie Roddie of the FBI Newark Field Office; and Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) New York Regional Office made the announcement.
FBI and HHS-OIG investigated the case.
Trial Attorneys Darren C. Halverson and Nicholas K. Peone of the Criminal Division’s Fraud Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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 eight strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, 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.
Justice Department Requires Egg Producers to End Coordinated Benchmark Manipulation that Artificially Inflated Prices Across the CountryRead the Press Release
The Justice Department’s Antitrust Division, together with 17 State Attorneys General, filed a civil lawsuit against Cal-Maine Foods Inc. (Cal-Maine); Hickman’s Egg Ranch Inc. (Hickman’s); and Centrum Valley Holdings LLC, Versova Holdings LLC, and Versova Management Cooperative (Versova) for unlawful coordinated manipulation of egg prices. At the same time, the Department filed proposed settlements that will, if approved by the court, prevent these companies from engaging in such coordinated manipulation in the future.
“No product more quintessentially represents affordability than the price Americans pay for eggs,” said Associate Attorney General Stanley Woodward. “These actions prove this Department’s continued commitment to protecting competition and providing real relief for everyday Americans’ pocketbooks.”
“Food affordability is a top priority of the Antitrust Division,” said Former Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “These settlements resolve years of conduct that dragged on Americans’ finances and their everyday lives. I thank and recognize the dedicated work of the Division’s talented staff and state partners.”
“The Antitrust Division is steadfast in our work to protect our nation’s citizens from illegal conduct that makes daily life less affordable,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “We are proud that these settlements will keep egg prices competitive and keep money in the hands of consumers across the country.”
Filed in the U.S. District Court for the Northern District of Iowa, the complaint alleges that Cal-Maine, Hickman’s, and Versova coordinated to artificially inflate the daily quotations of Urner Barry Publications, a market reporting company whose publications affect prices that grocery stores, restaurants, and others pay for eggs nationwide.
Defendants produce and sell eggs to grocery stores, restaurants, and other businesses that ultimately sell or provide eggs to American consumers. Defendants and other egg producers also bid to acquire eggs on spot markets, including the Egg Clearinghouse. Urner Barry considers this bidding information when it issues daily price quotations that influence wholesale egg prices. Every year, billions of eggs are sold with prices based on Urner Barry’s price quotations.
As the complaint alleges, Defendants conspired to inflate Urner Barry’s price quotations by agreeing to: (1) submit a large number of bids; (2) cause multiple Defendants to bid in order to signal to Urner Barry that a diverse set of market participants needed to buy eggs; (3) submit a large number of bids in the hours leading up to the publication of Urner Barry’s price quotations; (4) submit bids that were unlikely to lead to executed trades; and (5) execute trades at premium prices.
As the complaint also alleges, egg price quotations dropped significantly from their peak after Defendants learned of the Department’s investigation and were instructed to preserve documents in March 2025.
The proposed settlements result from the Department’s focus on anticompetitive practices that lead to higher food prices. If approved by the court, these settlements will prohibit Defendants from:
- Communicating with competitors regarding bidding strategies and the prices, timing, and number of bids;
- Communicating with competitors regarding certain information about bids, prices, supply, and demand that they may share with a benchmark publication;
- Agreeing with competitors on the number, pricing, or other terms of bids or transactions;
- Communicating with competitors regarding bids or transactions that are not based on legitimate business needs;
- Communicating with competitors regarding bids or transactions that are intended to affect a benchmark publication.
Additionally, the proposed settlements will require that Defendants adopt antitrust compliance programs, appoint antitrust compliance officers, monitor meetings of cooperatives and joint ventures, and report potential violations of the proposed settlements.
The Attorneys General of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin joined the Department in the complaint and proposed settlements.
As required by the Tunney Act, the proposed settlements, along with competitive impact statements, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlements within 60 days following the publication to Zachary Trotter and John Thornburgh, Acting Chief and Assistant Chief, Chicago Office, Antitrust Division, U.S. Department of Justice, Rookery Building, 209 S. LaSalle St., Ste. 600, Chicago, Illinois 60604. At the conclusion of the public comment period, the U.S. District Court for the Northern District of Iowa may enter the final judgments upon finding they are in the public interest.
Anyone with information about anticompetitive conduct in agricultural industries or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].
Cal-Maine is headquartered in Ridgeland, Mississippi; Hickman’s is headquartered in Buckeye, Arizona; and Versova is headquartered in Sioux Center, Iowa.
Note: See the Complaint here, the Proposed Final Judgments for Cal-Maine here, Hickman’s here, and Versova here, and the Stipulation and Order for Cal-Maine here, Hickman’s here, and Versova here.
The Department of Justice Files Complaints Against Massachusetts and Rhode Island Challenging State Laws that Provide In-State Tuition to Illegal AliensRead the Press Release
Today, the Department of Justice’s Civil Division filed complaints against Massachusetts and Rhode Island to challenge state laws that provide in-state tuition and financial assistance to illegal aliens. These laws unconstitutionally discriminate against U.S. citizens who are not afforded the same reduced tuition rates or scholarships, create incentives for illegal immigration, and reward illegal aliens with benefits that U.S. citizens are not eligible for, all in direct conflict with federal law.
“The Department of Justice is committed to fulfilling President Trump’s promise that illegal aliens will not receive taxpayer benefits or preferential treatment over America’s own citizens,” said Associate Attorney General Stanley Woodward. “As our Nation marks 250 years of freedom, we will continue to challenge state laws that place aliens over citizens in clear defiance of Congress’s commands.
“This is a simple matter of federal law: colleges cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.”
In the complaints, the federal government seeks to enjoin enforcement of Massachusetts and Rhode Island laws that require colleges and universities to provide in-state tuition rates for all aliens who maintain in-state residency, regardless of whether those aliens are lawfully present in the United States. Additionally, the complaint seeks to enjoin Massachusetts and Rhode Island from enforcing state laws that afford financial assistance and scholarships to illegal aliens.
Today's filings mark three lawsuits in the past week challenging in-state tuition for illegal aliens, bringing the Department’s total in this series of actions to 12.
The Department’s efforts have already delivered several victories for the American people, as four similar lawsuits in Texas, Kentucky, Oklahoma, and Nebraska have resulted in favorable orders permanently enjoining and declaring unconstitutional analogous laws that gave reduced tuition to illegal aliens. Lawsuits against other states that similarly place illegal aliens ahead of U.S. citizens are pending across the country in Illinois, Minnesota, Virginia, California, New Jersey, and Kansas.
Justice Department to Rename Division as Energy and Natural Resources DivisionRead the Press Release
The Justice Department will rename one of its divisions the Energy and Natural Resources Division (ENRD). The announcement was originally made yesterday by Principal Deputy Assistant Attorney General Adam Gustafson of ENRD in an op-ed in the Wall Street Journal.
“Energy security is national security. Iran’s recent stranglehold on the global oil market shows that domestic energy production is critical to preserving our way of life and securing our prosperity,” said Principal Deputy Assistant Attorney General Gustafson of ENRD. “Over the past two decades, the division has played a central role in the responsible production and use of energy, driven by technological advances from the shale revolution to AI. To recognize this evolution, we will now rename it the Energy and Natural Resources Division.”
ENRD’s recent victories in support of domestic energy include the successful defense of President Trump’s executive orders on unleashing American energy, reinvigorating the clean coal industry, and declaring an energy emergency. ENRD also recently won dismissal of a lawsuit that threatened oil production in the Gulf of America.
ENRD continues to defend several key Administration priorities aimed at domestic energy production, including:
- Emergency orders by the Energy Department that have kept power plants running;
- The Energy Department order restarting the Sable pipeline in California pursuant to Defense Production Act; and
- The temporary power source for an artificial intelligence platform with critical military applications.
ENRD’s efforts to unleash American energy also include affirmative litigation against state anti-energy policies that are preempted by federal law, including:
- Climate superfund acts passed by New York and Vermont to expropriate billions of dollars from global energy producers;
- Climate tort suits by Hawaii, Michigan, and Minnesota against energy producers;
- California’s SB 1137, which prohibits oil and gas production within certain zones, even on federal leased land; and
- Hawaii’s “Green Fee” climate tax on cruise ships.
ENRD’s work to unleash American energy does not diminish its defense of the environment, which Gustafson called “our nation’s greatest natural resource.” ENRD’s environmental enforcement protects public health and ensures a level playing field for companies that play by the rules. The Division’s recent enforcement actions include:
- Major civil settlements with a “forever chemical” manufacturer for water pollution, a grocery chain for coolant leaks, and a steel mill for hazardous waste;
- A $100 million air pollution penalty won at trial against a coke plant near Detroit;
- An 18-month prison sentence for biofuel fraud;
- A $500,000 criminal penalty for asbestos violations;
- Guilty pleas to environmental crimes by waste water pretreatment managers, a yacht manufacturer, a wood product importer, and a builder; and
- Indictments of a commercial incinerator, a wildlife trafficker, and the companies whose ship crashed into Baltimore’s Key Bridge.
President Trump’s Religious Liberty Commission Delivers Historic Report DraftRead the Press Release
- Last May, President Donald J. Trump established the Religious Liberty Commission to advise and report to the President on opportunities to “identify emerging threats to religious liberty, uphold Federal laws that protect all citizens’ full participation in a pluralistic democracy, and protect the free exercise of religion.”
- Today, during an Oval Office presentation, Chairman Dan Patrick, Vice Chairman Ben Carson and the members of the Commission delivered the final draft report with recommendations to the President.
- The report is based on findings from the seven hearings that the Religious Liberty Commission held over the last year, receiving input from more than 100 witnesses of diverse ages, religions, expertise, and backgrounds. Many experienced religious persecutions in the United States.
- The hearings specifically covered religious liberty in the military, education, healthcare, the public and private sectors, as well as the importance of protecting parental rights and faith-based institutions, and combatting the rise of anti-Semitism and violence against houses of worship.
Powerful Testimonies Highlight Recent Threats to Religious Believers
- In recent years, Americans from all religious backgrounds have faced increasing persecution for their religious beliefs.
- The Commission heard from mothers who were lied to by their children’s school administrators, children who were bullied because of their religious beliefs, healthcare workers who have risked losing their jobs due to religious objections to certain procedures, a grandson of Holocaust survivors who was restricted from public spaces because of his Jewish faith, nuns who were targeted by New York State, and workers—including military service members—who lost pensions and life savings when forced to choose between their faith and vaccine mandates, among many others.
- For example, elementary student Shea Encinas was bullied for standing up for his Christian faith when he was forced to read his peer a book that told him he could choose his gender—the school refused to help and doubled down on pushing gender ideology onto the students. Teacher Marisol Arroyo-Castro was told she had to remove a cross near her desk or lose her job. Jennifer Mead’s 11-year-old daughter was pressured by school authorities to believe she was a boy. Navy Seal Blake Martin lost his pension when he was just three years away from retirement eligibility because he objected to the COVID-19 vaccine. Dr. Eithan Haim was indicted by the Biden Department of Justice for blowing the whistle on Texas Children’s Hospital’s gender mutilation surgeries for minors. Shabbos Kestenbaum was targeted on Harvard’s campus simply for being Jewish. And Lacey Smith was fired from her flight attendant position at Alaska Airlines because she answered the invitation to respectfully share her thoughts on the Equality Act. These Americans have suffered greatly for their religious beliefs.
- In many cases the law protects the religious expression of Americans, but government officials and employers often use fear tactics to silence individuals into believing that they don’t have the right to publicly express their faith.
- The final report will equip all Americans with the knowledge and support needed to defend their Constitutional rights.
12 Key Recommendations to Strengthen Religious Liberty for All Americans
- Instruct the Department of Justice to issue guidance clarifying the proper understanding of the Establishment Clause and separation of church and state.
- The Department of Justice, Department of Health and Human Services, and Equal Employment Opportunity Commission shall issue “Know Your Rights” Posters for students, parents, public school teachers and administrators, religious leaders, religious institutions, healthcare workers, and military servicemembers.
- Any public official who alleges a person under their supervision has improperly engaged in religious expression must provide a written explanation of the alleged violation to the person accused within 30 days of any action and explain that charge based upon a specific constitutional provision or provision of law.
- Instruct the Department of Justice, Department of Health and Human Services, and Equal Employment Opportunity Commission, to create religious liberty violation reporting hotlines/online portals for students, parents, teachers, healthcare workers, and others to obtain support in the face of religious liberty violations and promote public awareness of existing reporting channels.
- Nominate and confirm federal judges with the courage to decide religious liberty cases on the merits where warranted, rather than engage in improper judicial avoidance.
- Ask the Department of Justice to create a religious liberty task force to track and prioritize litigation protecting religious liberty.
- Combat anti-Semitism through enforcement of civil rights laws, litigation of credible allegations of anti-Semitic discrimination and violence, and civic education.
- Protect religious Americans from government-led litigation targeting their free exercise.
- Repeal the Johnson Amendment.
- Order the Department of War to streamline and improve the religious accommodation process.
- Continue efforts to restore the retirement or re-enlistment eligibility for service members who lost employment, health insurance, pensions, and other benefits because of their religious beliefs about the COVID-19 vaccine.
- Honor the courage of religious liberty heroes through creating a Presidential Medal of Religious Liberty and First Freedom Hero Awards to recognize Americans who stand up for religious freedom and play an indispensable role in protecting citizens’ Constitutional rights.
Read the Religious Liberty Commission's draft report HERE
Minnesota Tax Preparer Convicted of Preparing $1M+ in False Tax Returns for ClientsRead the Press Release
A federal jury convicted a Minnesota man yesterday for filing false tax returns for clients of his tax preparation business.
According to court documents and evidence presented at trial, Cortez Hollis owned and operated Hollis Tax Time, a Minnesota tax preparation business that he used to prepare false tax returns for clients. Hollis told his clients he was able to provide them tax credits that other tax preparers did not know about. In reality, he reported fictitious businesses that claimed thousands of dollars of business losses the clients did not actually incur. Hollis filed these tax returns with the IRS and generated large refunds the clients were not entitled to receive. He often paid himself tax preparation fees of $2,000 or more out of the resulting refunds, sometimes without his clients’ knowledge.
“No matter the scheme, the agency, or the program involved, those who cheat on their taxes for personal enrichment undermine the very foundation of public trust,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Fraud Division is working across all fronts to detect, investigate, and prosecute criminal tax violations. We will protect the integrity of our tax system and ensure that those who seek to enrich themselves at the expense of honest citizens face the full weight of federal prosecution.”
At trial, the government established that Hollis added more than $1 million in fraudulent losses to client tax returns and sought approximately $387,000 in refunds they were not entitled to receive.
Hollis was found guilty of 20 counts of aiding or assisting the preparation of false tax returns. Sentencing will be scheduled at a later date. Hollis faces a maximum penalty of three years in prison for each count of aiding and assisting in the preparation of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Daniel Rosen for the District of Minnesota made the announcement.
IRS Criminal Investigation is investigating the case.
Assistant Chief Eric B. Powers and Trial Attorney Megan E. Wessel of the Criminal Division’s Tax Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Justice Department Sues States for Failing to Provide SNAP Data to the U.S. Department of AgricultureRead the Press Release
WASHINGTON – Today, the Department of Justice filed lawsuits against Kentucky, Pennsylvania, Michigan, and Minnesota, seeking injunctions requiring their state SNAP agencies to turn over their last five years of SNAP applicant data. This comes after those four states refused to turn over the data to the U.S. Department of Agriculture (USDA) so that USDA could ensure that states are properly administering and enforcing their determinations of residents’ eligibility for SNAP, including household benefit levels.
When USDA requested this data last year, these states and several others refused to comply. Twenty-eight other jurisdictions, however, promptly provided their data. Data received from the compliant 29 states indicate there are billions of dollars per year in SNAP funds going to overpayments and fraud.
Faced with this evidence, USDA again requested SNAP applicant data from Kentucky, Pennsylvania, Michigan, and Minnesota in May. Yet again, these states refused to comply. The states’ ongoing noncompliance creates the likelihood of ongoing, material waste, fraud, and abuse going undetected. Such reckless disregard for Federal law and the public fisc cannot continue.
“The American people deserve a government that is transparent about how it spends their hard-earned tax dollars,” said Acting Attorney General Todd Blanche. “These four states are thwarting USDA’s efforts to ensure that the billions of dollars in SNAP benefits they distribute every year are not lost to fraud. It’s unacceptable, suspicious, and it will not stand under this Administration.”
“For nearly 365 days, several States have shamelessly defied federal law and withheld data to which the U.S. Department of Agriculture is entitled,” said USDA Secretary Brooke Rollins. “USDA has worked constructively with the majority of States to ensure criminals, fraudulent activity, and other waste, no longer plague a program meant to serve the most vulnerable households and communities among us. Today, I asked the Acting Attorney General to compel Kentucky, Pennsylvania, Minnesota, and Michigan to comply with federal law. If a State misguidedly stands between the federal government and the information needed to protect the generosity of the American taxpayer, the Trump Administration will take them to court.”
“The Department of Justice is dedicated to combatting waste, fraud, and abuse in federal benefits programs, and ensuring that American taxpayers are not footing the bill for benefits that recipients are not entitled to under federal law,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
“Stopping the rampant theft of taxpayer money demands a whole-of-government response, including strong participation at the state level,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “These states are happy to take hundreds of millions of federal tax dollars—much of which is exploited by fraudsters—but want zero transparency over how those tax dollars are spent. It’s pretty simple: share the data that shows how America’s money is being spent—and stolen—in your state. These lawsuits are required because these states refuse to take the most basic steps to help stop the rampant theft of taxpayer dollars.”
Arizona Woman Pleads Guilty to $7.7 Million Tax Refund Fraud SchemeRead the Press Release
An Arizona woman pleaded guilty yesterday to attempting to steal more than $7.7 million in government funds by filing false tax returns with the IRS.
According to court documents, Regina Durkin, of New River, Arizona, and others, conspired to defraud the United States by submitting false quarterly employment tax returns to the IRS.
“No matter the scheme, the agency, or the program involved, those who cheat on their taxes for personal enrichment undermine the very foundation of public trust,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Fraud Division is working across all fronts to detect, investigate, and prosecute criminal tax violations. We will protect the integrity of our tax system and ensure that those who seek to enrich themselves at the expense of honest citizens face the full weight of federal prosecution.”
“Our work continues as we find and prosecute individuals like Ms. Durkin who took a benefit meant to help the public during a crisis, and used it instead to line their own pockets,” said U.S. Attorney Timothy Courchaine. “We are grateful to our partners at IRS-CI for their tireless efforts to seek accountability on behalf of federal taxpayers.”
Durkin conspired with others to file tax returns seeking fraudulent refunds based on the employee retention credit and paid sick and family leave credit, credits passed by Congress to aid struggling businesses during the COVID-19 global pandemic. Instead, these companies were not in operation at the time, had no employees, and paid no wages.
In total, Durkin, and others, submitted fourteen fraudulent claims to the IRS that requested over $7.7 million in tax refunds.
Durkin pleaded guilty to one count of conspiracy to file false claims. She is scheduled to be sentenced on September 11 and faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Timothy Courchaine of the District of Arizona made the announcement.
IRS Criminal Investigation is investigating the case.
“Regina Durkin chose to steal $7.7 million from the American public through deliberate fraud—and now faces the full weight of a felony conviction,” said IRS Criminal Investigation Phoenix Field Office Acting Special Agent in Charge Scott Brown. “Let this case be a clear warning: IRS‑CI will relentlessly pursue anyone who abuses emergency relief programs for personal gain. IRS-CI agents specialize in dismantling complex financial schemes. We will follow the money, expose the fraud, and ensure those who steal from taxpayers are held fully accountable.”
Trial Attorney Robert Kemins and Trial Attorney Matthew Hoffman of the Criminal Division, and Assistant U.S. Attorney Matthew Williams for the District of Arizona, are prosecuting the case.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Saipan Businessman Sentenced to 12 months Home Detention for Visa FraudRead the Press Release
SAIPAN, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Angel Paras Cruz, Jr., age 82, was sentenced to three years of probation with the condition he serve 12 months in home detention, for Visa Fraud, in violation of 18 U.S.C. § 1546. The Court also imposed a $15,000 fine, $28,273.31 in restitution, and a mandatory $300 special assessment fee.
From August 2023 to January 2024, Cruz petitioned six workers from the Republic of the Philippines under the CNMI-Only Transitional Worker (CW-1) Visa Program. He provided the applicants, as well as U.S. Citizenship and Immigration Services (USCIS) and U.S. Department of Labor (DOL), false and misleading information relating to the applicants’ wages, work hours, compensation, and duties to be performed. Instead of adhering to the contracts and information provided on the I-129CW forms, Cruz used fear and intimidation to force the six CW-1 applicants to work above the 40-hour work week, demanding they work nights and weekends without pay, and forced them to live in unsafe and degrading conditions. Cruz also confiscated some of the workers’ passports and personal documents.
“The Department of Justice will fight any abuse of the CW-1 program,” stated United States Attorney Anderson. “Employers will be held accountable for exploiting lawful foreign workers. This case demonstrates our continuing commitment to combating fraud in our districts.”
“HSI investigates visa fraud and other crimes related to foreign travelers such as forced labor, drug smuggling, and human trafficking,” said CJ Ammons, Acting Special Agent in Charge at Homeland Security Investigations. “Today’s sentencing underscores our commitment to identifying and dismantling groups that exploit U.S. trade, travel, and financial systems, and to ensuring those who violate the law are held accountable.”
“Protecting the integrity of U.S. travel documents and the welfare of those who depend on them is central to the Diplomatic Security Service’s mission,” said Stephen F. Zagami, Resident Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS) Honolulu Resident Office. “The sentencing of Angel Cruz sends a strong deterrent message: those who abuse the visa system to exploit vulnerable workers will not be able to hide and will be held accountable. We commend the victims for coming forward and are proud to have played a role in bringing the individual who committed these heinous crimes to justice.”
“This case serves as a prime example of the strong relationship USCIS maintains with our law enforcement partners,” said USCIS Spokesman Zach Kahler. “Through ongoing interagency cooperation and coordination, we were able to bring this case to a successful conclusion and hold this bad actor responsible for visa fraud. This outcome underscores our unwavering commitment to strengthening the American immigration system.”
This case was investigated by the U.S. Department of State Diplomatic Security Service, with the assistance of U.S. Homeland Security Investigations – Saipan, DSS - Honolulu Resident Office, and USCIS.
Assistant United States Attorney Garth R. Backe, prosecuted this case in the District of the Northern Mariana Islands.
Northern California Man Pleads Guilty to Years-Long Securities Fraud Spoofing SchemeRead the Press Release
A California man pleaded guilty yesterday to engaging in more than 3,000 instances of manipulative trading and spoofing during a years-long scheme to manipulate the securities markets.
According to court documents, Mingran Wang, 52, of Fremont, California, orchestrated a scheme to defraud market participants using spoofing from 2021 through 2024. Spoofing is the manipulative trading tactic of placing a non-bona fide order, with the intent to cancel the order before it is executed, to give the false appearance of genuine supply or demand to other investors and move the price in the spoofer’s favor. Wang marketed himself as the founder and investment manager of Greenroots Capital Management, with extensive knowledge and trading experience, including algorithmic trading. The purpose of the scheme was for Wang to enrich himself by purchasing and selling illiquid and thinly traded securities through trading techniques he knew were manipulative and deceptive. These thinly traded securities were often traded in low volumes with limited numbers of interested buyers and sellers, which could lead to volatile changes in price when a transaction occurred. Using multiple accounts that he controlled, Wang manipulated the market and engaged in spoof trading to move prices in his favor on both the buy and sell sides.
To carry out his spoofing scheme, Wang coordinated trades between multiple securities accounts at different brokerage firms. Each spoof order that Wang placed was a non-bona fide order that he made to move the market price to benefit his own trading on the opposite side of the market. After Wang executed his desired bona fide orders on the opposite side of the market and profited, he canceled his spoof orders. Wang engaged in more than 3,000 instances of manipulative trading and spoofing.
Wang pleaded guilty to one count of using interstate commerce for the purpose of securities fraud and agreed to forfeit over $1.3 million in securities fraud proceeds. He is scheduled to be sentenced on Sept. 30 in the Northern District of California and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
USPIS is investigating the case. The Justice Department appreciates the substantial assistance of FINRA’s Market Abuse Unit.
Acting Assistant Chief Matthew Reilly and Trial Attorney Amanda Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.
North Carolina Man Sentenced to More than Two Years in Prison for Conspiracy Related to Videos Depicting Monkey Torture and MutilationRead the Press Release
A North Carolina man was sentenced today to 28 months in prison followed by three years of supervised release in connection with his involvement with online groups dedicated to creating and distributing videos depicting acts of extreme violence and sexual abuse against monkeys.
Robert Craig, of Charlotte, pleaded guilty on June 25, 2025, to conspiring to create and distribute so-called “animal crush videos.”
According to court documents, Craig used encrypted chat applications to share and discuss obscene videos of monkeys being tortured and sexually abused. According to a statement of facts signed by Craig, the videos in question included numerous depictions of extreme violence and torture against monkeys that had been specifically requested by the defendant and his co-conspirators.
Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Attorney Dominick S. Gerace II for the Southern District of Ohio, Special Agent in Charge Jason Cromartie of the FBI Cincinnati Field Office, and Assistant Director Doug Ault, U.S. Fish and Wildlife Service, Office of Law Enforcement, made the announcement.
The U.S. Fish and Wildlife Service and FBI investigated the case.
Trial Attorney Mark Romley and Senior Trial Attorney Adam Cullman of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Nicole Pakiz for the Southern District of Ohio are prosecuting the case.
Illegal Alien from Honduras Sentenced for $89 Million Off-the-Books Payroll Tax Fraud Scheme Employing Illegal AliensRead the Press Release
An illegal alien from Honduras was sentenced yesterday to 96 months in prison for his role in operating a years-long off-the-books cash payroll scheme that facilitated the employment of illegal aliens working in the United States. The scheme caused a total loss to the United States of more than $38 million.
According to court documents and statements made in court, from 2015 to 2022, Mario Flores, of Honduras, an illegal alien, conspired with others to create a series of shell companies to run an unlicensed check cashing and cash courier service business. These shell companies cashed approximately $89 million in checks from subcontractors in the construction industry, charging them a percentage of the dollar amount of the checks they cashed as a fee for this service. Through this scheme, construction contractors and subcontractors paid their workers in cash without withholding and paying required payroll taxes, allowing them to operate without regard to the workers’ legal authority to work in the United States. Flores also caused the filing of false tax documents with the IRS to conceal the scheme.
“Today, we held an illegal alien from Honduras accountable for a brazen scheme that stole more than $38 million from American taxpayers to facilitate the employment of illegal aliens,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “This case exposes how unchecked illegal immigration fuels widespread tax fraud and underground economies that harm American workers and taxpayers. This sentence sends a strong message: those who exploit our open borders, cheat the U.S. Treasury, and violate federal laws will face justice.”
“Homeland Security Investigations is committed to protecting the integrity of our financial system and enforcing our nation’s laws. Those who orchestrate large-scale payroll tax fraud and facilitate the illegal employment of unauthorized workers will be held accountable,” said HSI Acting Executive Associate Director John Condon. “HSI, alongside IRS Criminal Investigation and our federal, state, and local partners, remains dedicated to dismantling schemes that defraud the United States and undermine the integrity of our workforce.”
In addition, Flores and his conspirators defrauded workers’ compensation insurance companies by leasing their certificates of insurance to contractors and by providing false and fraudulent information to the insurers about, among other things, the number of workers covered by the insurance and the amount workers were paid.
Flores pleaded guilty to one count of conspiracy to defraud the United States and one count of conspiracy to operate an unlicensed money transmitting business.
Iris Villafranca, Osman Zapata, and Francisco Alvarez, who conspired with Flores, were previously sentenced. Villafranca was sentenced to 17 years in prison. She was ordered to pay more than $38 million in restitution to the United States and forfeit $89 million of criminal proceeds from the scheme. Zapata was sentenced to more than four years in prison and was ordered to pay more than $2.5 million in restitution to the United States. Francisco Alvarez was sentenced to four years of probation and ordered to pay more than $2.3 million in restitution. Conspirator Michael Mayorga awaits sentencing.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Gregory W. Kehoe of the Middle District of Florida made the announcement.
IRS Criminal Investigation is investigating the case, with assistance from Homeland Security Investigations. ICE ERO Miami (Orlando sub-office), Florida Highway Patrol, Customs and Border Protection, U.S. Marshals Service, State Department, and the Florida Department of Law Enforcement have assisted in arrest operations.
Senior Litigation Counsel Sean Beaty and Trial Attorney Kavitha Bondada of the Criminal Division’s Tax Section and Assistant U.S. Attorney Diane Hu of the Middle District of Florida are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Court Clears Way for Energy Development in Gulf of AmericaRead the Press Release
The U.S. District Court for the District of Maryland today dismissed a lawsuit challenging the National Marine Fisheries Service’s 2025 biological opinion and incidental take statement for oil and gas activities in the Gulf of America. The court held that the case is moot and that it lacks jurisdiction to proceed because the Endangered Species Committee exempted those activities from the requirements of the Endangered Species Act (ESA). The dismissal was effective yesterday.
On March 31, the Endangered Species Committee voted unanimously to exempt all Gulf of America oil and gas activities from the ESA, after the Secretary of War found that the exemption was necessary for reasons of national security. This is the first exemption the committee has ever granted on national security grounds. As the United States explained in its motion to dismiss, the exemption removed the underlying federal action from the ESA’s requirements. With this exemption, the challenged biological opinion and incidental take statement retain no legal force, leaving no live controversy for the court to resolve and no effective relief it could grant.
“The Endangered Species Committee’s exemption reflects a judgment at the highest levels of government that producing American energy in the Gulf of America is essential to our national security,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Today’s decision clears away litigation that threatened development in the Gulf, in furtherance of President Donald J. Trump’s directive to unleash American energy.”
The Endangered Species Committee consists of six senior federal officials and is chaired by the Secretary of the Interior. Congress authorized the Committee to exempt agency actions from Section 7 of the ESA and directed that it grant an exemption whenever the Secretary of War determines that an exemption is necessary for reasons of national security. Because that exemption now governs the Gulf oil and gas program, today’s dismissal ensures that the ESA cannot be used to disrupt energy production the government has determined is vital to the Nation.
Attorneys with ENRD’s Wildlife and Marine Resources Section handled this matter.
California Man Charged with Distributing and Producing Child Sexual Abuse MaterialRead the Press Release
A federal grand jury in the Central District of California returned an indictment yesterday charging Andrew Dominguez, 37, of Los Angeles, California, with producing and distributing child sexual abuse material (CSAM). Dominguez also faces charges for committing these offenses while registered as a sex offender.
According to court documents, Dominguez attempted to entice three minors to engage in sexually explicit conduct for the purposes of producing a visual depiction of such conduct in 2013, 2014, and 2023. He also distributed CSAM videos of a minor and used a facility of interstate commerce to entice minors to engage in sexual acts.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division made the announcement.
Dominguez is charged with two counts of production of child pornography, one count of attempted production of child pornography, two counts of coercion and enticement of a minor, one count of distribution of child pornography, and one count of committing a felony offense involving a minor while being required to register as a sex offender. If convicted, Dominguez faces a maximum penalty of life in prison.
The FBI Los Angeles Office, Victorville Resident Agency is investigating the case, with assistance from the FBI Denver Office, the Los Angeles Police Department, and the Denver District Attorney’s Office.
Senior Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Trial Attorney Slava Kuperstein of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation. The defendant is presumed innocent until proven guilty in a court of law.
United States Pays Approximately $17M Settlement for Nearly 630 Plaintiffs in Red Hill Jet Fuel SpillsRead the Press Release
On June 22, the Department of Justice, Civil Division, issued payments to 629 Plaintiffs in Feindt v. United States and Hughes v. United States who brought claims against the United States under the Federal Tort Claims Act (FTCA) as a result of the 2021 jet fuel spills at the Red Hill Bulk Fuel Storage Facility, located at Joint Base Pearl Harbor Hickam (2021 Red Hill Spills). Settlements totaling approximately $17 million were approved by the U.S. District Court for the District of Hawaii on May 19.
“This Justice Department is proud to announce the fair and efficient resolution of claims relating to the Red Hill jet fuel spills,” said Associate Attorney General Stanley Woodward. “These latest settlements show that we strive to handle all potential settlements justly, and according to the public interest, without exception.”
“These settlements are the latest example of the United States’ good faith efforts to resolve the over 6,500 FTCA claims arising from the 2021 Red Hill Spills,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “The settlements represent a fair and just resolution of claims and we look forward to paying additional claims once they are approved.”
In 2024, following extensive discovery, the claims of 17 Plaintiffs went to trial. Based on the results of that trial, the Civil Division has reached settlements with approximately 3,600 civilian Plaintiffs, including the 629 Plaintiffs who recently received payment.
The Civil Division continues to process settlements and has filed several additional motions for settlement approval, which are pending with the Court for approval or with the Treasury Department for payment. The Civil Division is prepared to file additional motions for settlement approval as soon as Plaintiffs provide sufficient proof of eligibility and signed releases. Currently, there are more than 300 Feindt and Hughes Plaintiffs that have met all settlement criteria and need only provide a signed release.
Additionally, the Civil Division is waiting on sufficient proof of settlement eligibility from approximately 400 Feindt and Hughes Plaintiffs who accepted the United States’ settlement offer as long ago as October 2025. Once these documents are provided, the Civil Division will file additional motions for settlement approval and, once they are approved, pay additional claims.
Note: The first quotation has been updated from a previous version.
Kevin Epstein Designated as Interim U.S. Trustee for Louisiana and MississippiRead the Press Release
Kevin Epstein has been designated by Acting Attorney General Todd Blanche as the U.S. Trustee for Louisiana and Mississippi (Region 5) on an interim basis effective June 29. Epstein replaces David Asbach, who is retiring after 35 years of distinguished service to the U.S. Trustee Program (USTP).
Under 28 U.S.C. § 585, the Attorney General may fill U.S. Trustee vacancies by designating an incumbent U.S. Trustee to serve in a second region. Since 2021, Epstein has been the U.S. Trustee for the Southern and Western Districts of Texas (Region 7), and he will remain in that position while also overseeing Region 5. From July 2023 to November 2024, Epstein was the Interim U.S. Trustee for the Northern and Eastern Districts of Texas (Region 6).
The Executive Office for U.S. Trustees made the announcement.
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 82 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust.