District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Four Individuals Sentenced to Prison for Insider Trading SchemeRead the Press Release
Two individuals were sentenced yesterday for their participation in a scheme to trade securities based on material nonpublic information about the $3.2 billion merger of two companies, which resulted in illicit profits of over $600,000. Two other individuals were previously sentenced in connection with this scheme on May 4. Specifically, Rouzbeh Ross Haghighat was sentenced to 40 months in prison, Kirstyn Pearl was sentenced to six months in prison, Seyedfarbod “Fabio” Sabzevari was sentenced to 14 months in prison, and James Roberge was sentenced to two months in prison.
“Rouzbeh Ross Haghighat abused his position as a board member of a publicly traded company to exploit his insider knowledge of an upcoming acquisition. He encouraged his friends and family to buy company shares so that they could reap hundreds of thousands of dollars off of that inside information to the detriment of investors,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “Insider trading undermines fairness in the economy and American investors. The Criminal Division will continue to pursue illegal activity that affects U.S. markets.”
“This case makes one thing clear: if you think you can game the system using insider information, think again,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “Ross Haghighat and his associates thought they were above the law and colored outside the lines for financial gain, but yesterday’s sentencing proves no one is above the law. The U.S. Postal Inspection Service will not hesitate to pursue and bring to justice anyone who tries to corrupt the integrity of our financial markets.”
According to court documents and evidence presented at trial, Haghighat, 62, of Massachusetts; Pearl, 36, of Puerto Rico; Sabzevari, 31, of California; and Roberge, 71, of Massachusetts, illegally bought the securities of a biopharmaceutical company in Seattle, Washington (Company-1), where Haghighat served on the board of directors. In May 2023, while in his position as a board director, Haghighat got important inside information about another pharmaceutical company’s (Company-2) proposed acquisition of Company-1, including sensitive deal terms. Haghighat then purchased securities and tipped off others about the deal — including Pearl, Sabzevari, and Roberge — so that they would purchase securities of Company-1, which they did.
In May 2023, Company-2 made a confidential proposal to acquire Company-1 at a price per share above the then-current market value. The two companies then negotiated an agreement for the acquisition, which was announced in June 2023, causing the share price of Company-1 to spike. Collectively, the defendants profited more than $600,000 from their purchases of Company-1 securities based on their insider information.
In December 2025, Haghighat was convicted of one count of securities fraud, 16 counts of insider trading, and two counts of conspiracy. Pearl was convicted of one count of securities fraud, one count of insider trading, and one count of conspiracy.
The U.S. Postal Inspection Service investigated the case.
Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section prosecuted the case, with substantial assistance from Assistant Chief Laura Connelly.
Four Charged in Nebraska as Part of National Health Care Fraud TakedownRead the Press Release
On Tuesday, June 23, 2026, United States Attorney Lesley A. Woods announced criminal charges against four defendants in connection with alleged schemes to defraud Medicare and Medicaid. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The charges include billing health care benefit programs for services not rendered and overcharging for medication, fraud involving mental health care, and fraudulent claims in relation to durable medical equipment.
The charges announced Tuesday by U.S. Attorney Woods are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Tuesday’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Tuesday’s coordinated enforcement action involved a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individuals were charged in the District of Nebraska:
- Angie Albert, 50, and Brent Conaway, 51, both of Hinton, Oklahoma, were charged by indictment with conspiracy to commit health care fraud, health care fraud, and money laundering, in connection with a scheme to bill health care benefit programs for services not rendered and to overcharge for medication. As alleged in the indictment, Albert and Conaway submitted and caused to be submitted to Medicare and Medicaid false claims for treatment with Spravato, a ketamine nasal spray. The false claims totaled approximately $4,451,498.44 and resulted in overpayments totaling approximately $976,978.82. Assets seized and subject to forfeiture to date include a motorcycle, two vehicles, and an RV. Additionally, the defendants’ residence is subject to forfeiture. The case is being prosecuted by Assistant U.S. Attorneys Dan Packard and Kelli Ceraolo of the District of Nebraska.
- Phyllis M. Rooney, 67, of Kapolei, Hawaii, was charged by information with false statements in connection with health care services related to mental health counseling services that she did not provide. The defendant caused a loss to Nebraska Medicaid of $92,582.43. The case is being prosecuted by Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska.
- Cassi Wigington, 49, of Omaha, Nebraska, was charged by information with health care fraud in connection with a scheme to submit fraudulent claims to Nebraska Medicaid and other insurers for durable medical equipment, specifically, custom-made breast protheses. Wigington billed for products that patients never received, causing the submission of fraudulent claims to Nebraska Medicaid and other insurers in the amount of $445,455.37. The case is being prosecuted by Assistant U.S. Attorney Sean P. Lynch of the District of Nebraska.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virginia participated in the investigation of federal cases announced Tuesday.
Descriptions of each case involved in Tuesday’s enforcement action are available on the Department’s website here.
The District of Nebraska, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); FBI; and Nebraska Attorney General.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Eight North Carolina Return Preparers Plead Guilty in Almost $25M Pandemic-Relief Fraud SchemeRead the Press Release
The owner of a North Carolina tax return preparation business pleaded guilty yesterday to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits. Seven other return preparers have already pleaded guilty for their roles in the same scheme.
According to court documents and statements made in court, Nejlai Mitchell owned and operated a tax return preparation business out of Lumberton, North Carolina, and Hope Mills, North Carolina. From approximately April 2022 through May 2023, Mitchell and seven employees filed false tax returns seeking fraudulent refunds based on the paid sick and family leave credit, a credit passed by Congress to aid struggling businesses during the COVID-19 global pandemic. As a result of the conspiracy, the IRS paid out approximately $13,890,697 in fraudulent tax refund claims.
“Instead of honoring their legal and ethical duties as tax preparers, this group allegedly engineered a calculated scheme to enrich themselves by submitting false returns,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “Stealing taxpayer funded relief in a national emergency is both reprehensible and deeply harmful to the public, and we will not hesitate to hold accountable those who exploit a crisis for personal gain. The Fraud Division remains unwavering in its commitment to protecting the integrity of federal relief programs and pursuing tax fraud wherever it occurs.”
Mitchell admitted to the conspiracy shortly after Whitnee Leach pleaded guilty, on May 19, 2026, to participating in the same conspiracy. Both Mitchell and Leach also pleaded guilty to assisting in the preparation of false tax returns.
Six other co-conspirators pleaded guilty to preparing federal tax returns for clients that included materially false items. Tiffany Moody and Shaneen Ray pleaded guilty on December 9, 2025; Eyoubo McBurney and Katrena Stanback pleaded guilty on September 24, 2025; and Jeannie Negron and Sylvia Swindell pleaded guilty on August 20, 2025.
Mitchell is scheduled to be sentenced in September. Leach is scheduled to be sentenced in August. Mitchell and Leach face a maximum penalty of five years for conspiracy and three years for preparing and filing false tax returns. The remaining six defendants each face a maximum penalty of three years in prison for preparing and filing false tax returns for clients. Their sentencing hearings are set for July 2026. 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 W. Ellis Boyle of the Eastern District of North Carolina made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Caroline Pearson and Assistant U.S. Attorney Ethan Ontjes of the Eastern District of North Carolina 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.
National Health Care Fraud Takedown Results in 455 Defendants Charged in Connection with over $6.5 Billion in Alleged FraudRead the Press Release
The Justice Department today announced the 2026 National Health Care Fraud Takedown, which resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
“This year’s National Health Care Fraud Takedown represents the greatest whole-of-government effort to combat health care fraud in our Nation’s history,” said Acting Attorney General Todd Blanche. “Under the decisive leadership of President Donald Trump, Vice President JD Vance, the White House Task Force to Eliminate Fraud, and our law enforcement partners, this administration has ushered in a new era of enforcement that will safeguard taxpayer dollars.”
“We are aggressively scaling our offensive against anyone using health care as a front to steal from the American people,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As today’s cases and arrests show, there is no case too big, no scheme too complex, and no hiding place too remote for our relentless fraud-fighting team. Our message is simple: if you put profit over patients, you should expect to be put in prison.”
“Health care fraud steals from taxpayers, exploits vulnerable patients, and puts lives at risk,” said U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. “Today’s historic enforcement action sends a clear message: if you use our health care system to enrich yourself at the expense of patients or the American people, we will find you, we will prosecute you, and we will hold you accountable. HHS will continue working with our law enforcement partners to protect patients, safeguard taxpayer dollars, and restore integrity to our health care system.”
“The coordination in the Health Care Fraud Takedown reinforces the Trump Administration’s efforts to end the crimes of bad actors who have ripped off U.S. taxpayers,” said Department of Homeland Security Secretary Markwayne Mullin. “This is a whole of government effort, to hold those who defraud our nation accountable. Our message is clear: if you steal from American taxpayers, you will face the consequences.”
“This results of this nationwide healthcare takedown are historic,” said FBI Director Kash Patel. “Under the leadership of President Trump, Vice President Vance, and the White House Task Force to Eliminate Fraud, this FBI worked alongside our DOJ partners to arrest and charge over 450 people, including almost 100 medical professionals, for over $6 billion in alleged healthcare fraud schemes - showing the enormous amount of work done by our interagency law enforcement team over the last month and beyond. While today’s announcement is one of the largest on record–every arrest is a continued message to criminal actors who rob American taxpayers that you will not get away with your crimes.”
Fraudulent Wound Care Schemes
Charges were filed against 11 defendants, including a company executive and eight medical professionals, across six districts in connection with billions of dollars in fraudulent claims for amniotic wound allografts. In the District of Arizona, the Vice President of Sales for a company that sold allografts was charged in a nationwide illegal kickback and health care fraud scheme. From approximately December 2021 through June 2024, providers billed Medicare over $4 billion for this company’s allografts, resulting in over $2 billion in payments. This significant spike in allograft billings was alleged to have been driven not by medical necessity, but by a kickback scheme that generated substantial profit margins and lavish lifestyles for marketers and providers who participated. The company did not manufacture allografts and instead acquired allografts from tissue banks and relabeled them for sale at a 2,000% mark-up, charging up to $1,450 per square centimeter. The defendant is alleged to have paid illegal kickbacks of approximately 40% of that amount, allowing marketers and medical providers to pocket approximately $500-600 per square centimeter. These lucrative kickbacks allegedly caused the defendant and others to target hospice patients and apply the allografts without coordination with the patients’ treating physicians, without proper treatment for infection, to superficial wounds that did not need this treatment, and to areas that far exceeded the size of the wound. The defendant received over $24 million from the company, which he used to purchase multi-million-dollar houses, million-dollar life insurance policies, luxury vehicles, including a $135,000 Maserati, and luxury watches. This follows 15.5- and 14-year sentences obtained last year in connection with the scheme.
Today’s charges reflect the Department’s intention to prosecute both the architects of fraud and those who betray their oath to carry out the scheme. In the Southern District of Texas, a nurse practitioner was charged for a $906 million scheme in which she applied medically unnecessary allografts and billed Medicare more than $1 million per patient on average. As alleged, the defendant used the fraud proceeds to purchase high-end vehicles, real estate, and luxury jewelry, and to fund the construction of a $4.6 million of a beach resort in the Philippines. The government seized over $30 million in bank accounts, a $594,000 Ferrari 296 GTS, seven other high-end vehicles, an $865,000 custom Bulgari necklace, and $1 million worth of other luxury jewelry.
$865,000 Bulgari necklace seized as proceeds of alleged Medicare fraud scheme involving wound allografts; rendering of beach resort in the Philippines constructed with $4.6 million allegedly stolen from Medicare in wound allograft fraud schemeSimilarly, in the Middle District of Florida, three defendants were charged for their roles in an $118 million allograft fraud scheme where a nurse practitioner allegedly used the proceeds to fund her lavish lifestyle, including a luxury box at an NFL stadium and over $400,000 in fine art.
The Health Care Fraud Unit’s Data Analytics Team detected a spike in payment for allografts, leading to prosecutions. CMS separately realigned payment, reducing Medicare’s payment to $127 per square centimeter starting on January 1, 2026. If CMS had not taken action to address unprecedented spending on allografts, the Part B premium increase caused by allograft payments alone would have cost every Medicare beneficiary in the country an extra $11 a month.
“Prosecuting criminals who steal from American patients is necessary—but stopping them before a single dollar leaves the building is smarter,” said CMS Administrator Dr. Mehmet Oz. “CMS is done playing catch-up. We’re deploying advanced data analytics to expose fraud networks, freeze suspicious payments, and shut down bad actors before they can do damage to the programs that millions of Americans depend on.”
Data Fusion Center, Financial Intelligence Review Team, and Data Analytics Enhancements
The Health Care Fraud Unit is a leader in employing advanced data analytics. Its Data Fusion Center —announced as part of last year’s Takedown and comprised of experts from the Unit’s Data Analytics Team, HHS-OIG, FBI, and other agencies—used advanced analytics in many of the cases charged today. The Department is announcing the first prosecution arising from the Fusion Center’s Financial Intelligence Review Team, which was formed last year to combine traditional data analytics with financial analysis, in connection with a $67 million scheme to bill Illinois Medicaid for behavioral health services that were not provided. The defendant allegedly submitted claims to Medicaid for 500 or more hours of counseling and therapy services per day, well in excess of what the providers on staff could render even if all providers were working 24 hours per day, and diverted over $27 million to brokerage accounts, $10 million to a luxury car dealership he set up, $4 million for real estate purchases and home improvements, one million for jewelry, watches, purchases, and other luxury items, and over $616,022 for vehicles. Data analysis established that patients were hospitalized at other institutions on days that the defendant billed for behavioral health services, and the Health Care Fraud Unit’s specialized prosecutors opened the investigation within five days of the financial intelligence review. The defendant was arrested less than seven months later at the airport Sunday night attempting to leave the country.
Yacht and Bentley Continental GT purchased with proceeds of alleged fraudIn the Central District of California, charges were brought against a hospice owner and two marketers for a $27.7 million Medicare fraud scheme in which the hospice owner allegedly tried to avoid detection through a scheme to purchase information of the recently deceased from a funeral home employee. The defendant was allegedly carrying out a hospice fraud scheme in which he fraudulently enrolled patients who were not terminally ill. Concerned that Medicare and law enforcement used data analytics to monitor the percentage of patients discharged from hospice alive (an indicator of fraud), the hospice owner allegedly paid illegal kickbacks of $1,000 to $3,000 per person to a funeral home employee in exchange for deceased Medicare beneficiaries’ information. The defendant then allegedly billed Medicare for a few days of hospice services for these recently-deceased individuals who hadn’t received hospice care and created fake, back-dated medical records claiming that the beneficiaries had been seen by a physician, thereby allegedly seeking to deceive Medicare by reducing his outlier data metrics.
In today’s Takedown, the Department announced the seizure of over $27 million in fraudulent Medicare payments in the Southern District of Florida as part of a data-driven effort to target “bust-out schemes” involving 12 clinics that billed Medicare millions of dollars for allografts that were never provided to patients. This novel and proactive “follow and seize the money” approach maximized recovery of stolen taxpayer dollars.
To enhance the deployment of advanced analytics to target health care fraud, the Fraud Division and CMS announced today that they have entered an agreement whereby the Fraud Division will be provided cloud computing space in the CMS Integrated Data Repository environment in which to deploy advanced data analytics algorithms and artificial intelligence tools. In addition, the Fraud Division entered into agreements with the Department of Homeland Security and the Federal Trade Commission aimed at breaking down data silos and improving access to information critical to identifying and combatting health care fraud. CMS also is announcing today that it is developing a Claims Core processing with electronic attestation, identify verification, and IP address log-in, and working to get pledges that all Medicaid, Managed Care, and other plans report the same standardized data fields used for Medicare Part B claims data.
Patient Harm
Health care fraud is a top white-collar priority of the Department because it both steals from the taxpayers and risks harm to patients by corrupt medical providers. In the Southern District of Florida, the medical director of a cardiovascular testing and treatment practice was charged in connection with an $89 million scheme to bill for unnecessary cardiovascular tests, such as EKGs and echocardiograms, conducted on student athletes on school campuses. According to the charges, the defendant and his co-conspirators used marketing tactics designed to prey on fears that student athletes could die from sudden cardiac arrest. The defendant then allegedly falsified diagnoses to defraud health care benefit programs for the testing. Despite knowing, as the defendant wrote, that “these kids could be high risk . . . one of them drops dead on the field, they’re coming after both of us,” he allegedly rubber stamped the test results as normal without reviewing them—sometimes approving test results within mere seconds—such that student athletes with cardiac abnormalities were not informed that they needed to stop participating in sports, risking sudden cardiac arrest. Despite one patient’s test results showing an enlarged heart, the defendant allegedly signed off on the test results as normal within approximately 11 seconds of accessing the 63 cardiovascular test result images. Approximately 24 days later, the student athlete died from complications related to an enlarged heart during a basketball practice.
“Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year’s National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations,” said HHS Inspector General T. March Bell. “HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds.”
In Alaska, state prosecutors charged a defendant for medical assistance fraud based on allegations that, while working as a personal care attendant for a Medicaid recipient, the defendant submitted false claims for regularly attending to the recipient’s health and hygiene, at the same time that she was admitted to the hospital for suffering from severe neglect, including being soiled in urine.
Medicaid Fraud
Data shows that Medicaid is a vital government benefit program increasingly targeted by criminals. Building upon the success of the recent Minnesota Health Care Fraud Takedown and the Acting Attorney General’s authorization of an enhancement for the Health Care Fraud Unit to investigate Medicaid fraud nationwide, today’s Takedown includes the largest number of Medicaid fraud defendants and Medicaid fraud loss charged in Department history: 295 defendants and over $518 million in false claims submitted to Medicaid.
In the Eastern District of New York, charges were brought against eight defendants for their role in a $38 million fraud on New York Medicaid for social adult day care services that were medically unnecessary, procured by kickbacks to marketers and beneficiaries, and never provided. Although the permitted occupancy of the social adult day cares (shown below) was only 30 people, the defendants fraudulently submitted claims for services provided to hundreds of beneficiaries per day.
Interior of Brooklyn social adult day care centers where allegedly fraudulent bills to New York Medicaid claimed hundreds of beneficiaries received services per dayIn the Eastern District of Virginia, the co-owner of a mental health company was charged with a $49 million Virginia Medicaid fraud scheme that targeted the homeless by offering them illegal bribes in the form of hotel stays in exchange for using their Medicaid numbers to bill for crisis stabilization services that they did not need or receive. In the District of Arizona, a defendant was charged for submitting $44 million in fraudulent claims for behavioral services, primarily targeting Native Americans struggling with substance abuse. As alleged, the defendant billed for services that were never provided and falsified therapy notes to reflect that patients had attended therapy sessions.
Transnational Organizations, International Cooperation, and the Most Wanted Fraudsters List
Today’s Takedown demonstrates that no fraudster can hide from the law, whether in the United States or abroad, and involved unprecedented international cooperation. In the 2025 National Health Care Fraud Takedown, 29 defendants were charged for their roles in a transnational criminal organization alleged to have submitted over $10 billion in fraudulent claims. Since then, the organization continued the scheme, and, in the Southern District of Florida, Ibrahim Hilmi was charged in connection with an additional $3.7 billion in false claims for urinary catheters and other durable medical equipment that was never provided. Though the defendant fled, he was apprehended in Kyrenia and made his initial appearance yesterday in the Southern District of Florida. In addition, two other members of the organization who were charged in last year’s Takedown were apprehended in Estonia, extradited to the United States, and made their initial appearance in the Eastern District of New York on June 12. Five additional defendants were charged in connection with the scheme.
Ibrahim Hilmi landing in the United States after being apprehended in a $3.7 billion fraudOn June 4, the FBI announced the creation of the Most Wanted Fraudsters List. The list included Herb Kimble, a fugitive in a $1.2 billion telemedicine and durable medical equipment scheme, who, on June 8—just four days later—was apprehended in the Philippines. On June 16, Kimble was indicted in the District of South Carolina with three counts of failure to appear at court hearings. In connection with the Takedown, as a result of the apprehension of Kimble and one other recently-apprehended fraudster on the list, today the FBI announced two new additions to the Most Wanted Fraudsters List: Khalid Satary, wanted in a $547 million genetic testing Medicare fraud scheme, who, after being released on bond over the government’s objection, fled the country and is believed to be in the United Arab Emirates; and Emylee Thai, wanted in a $90 million genetic testing Medicare fraud scheme, who was released on bond, cut-off her ankle monitor, and fled to Vietnam via private charter using a fake passport.
The Department thanks the governments of Estonia, the Philippines, and Turkey for their cooperation in the apprehension of these health care fraud fugitives and defendants.
Illegal Opioid Distribution
36 defendants, including 28 licensed medical professionals, were charged in connection with the alleged illegal diversion of prescription opioids and other controlled substances that resulted in patient harm. In the Eastern District of Pennsylvania, three defendants were charged with conspiracy to unlawfully distribute controlled substances. The defendants allegedly operated a voicemail refill line that allowed patients to request and receive refills of Schedule II controlled substance prescriptions—though some patients who used the refill line to obtain Schedule II controlled substances from the defendants suffered drug overdoses and died, the defendants continued to operate the refill line to prescribe Schedule II controlled substances without interacting with patients. In the Southern District of Texas, a pharmacist and two clinic managers were charged by indictment with drug conspiracy in connection with the distribution of more than 3.4 million pills of opioids and other controlled substances, many of which were prescribed to patients brought to the clinics and pharmacy by street-level drug traffickers for further distribution.
“DEA occupies a unique place in this fight—we sit at the intersection of healthcare, regulation, and law enforcement. Our job is to protect the controlled substance supply chain and ensure medications reach patients who legitimately need them,” said DEA Administrator Terrance Cole. “Those who exploit that system for personal profit threaten both public safety, public health, and the integrity of our healthcare system. We will continue to identify these criminals, stop them, and hold them accountable.”
“Health care fraud is not a victimless crime — it robs American workers of their earned benefits, steals from taxpayers, and undermines the very programs meant to protect them. The Department of Labor, Office of Inspector General is committed to rooting out these despicable schemes with unrelenting determination,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor. “Together, with our agency and law enforcement partners, we are dismantling fraudulent operations and holding perpetrators accountable for their crimes against the American people. Real care doesn’t come with kickbacks and fake claims. To every fraudster exploiting the system: your time is up. We will find you; we will investigate you, and we will bring you to justice.”
Today’s Takedown was led and coordinated by the Department’s Health Care Fraud Unit and its core partners from U.S. Attorneys’ Offices, HHS-OIG, FBI, DEA, and Medicaid Fraud Control Units (MFCUs) across the country. The cases are being prosecuted by Health Care Fraud Strike Force teams, 56 U.S. Attorneys’ Offices, and 45 State Attorneys General’s Offices nationwide.
Acting Health Care Fraud Chief Jacob Foster, Acting Principal Assistant Chief Rebecca Yuan, Assistant Chief Justin Woodard, and Data Analyst Elizabeth Nolte, all of the Health Care Fraud Unit, led and coordinated this year’s Takedown. Assistant Chief Emily Gurskis and Acting Assistant Chiefs Miriam Glaser Dauermann and Jil Simon provided valuable coordination assistance.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
In addition to FBI, HHS-OIG, DEA, and MFCUs, CMS, Homeland Security Investigations, the Department of Veterans Affairs, Office of Inspector General, IRS Criminal Investigation, Defense Criminal Investigative Service, Department of Labor, United States Postal Service Office of Inspector General, Office of Personnel Management Office of Inspector General, and other federal, state, and local law enforcement agencies participated in the operation.
“Healthcare fraud schemes deprive veterans of needed services and rob taxpayers,” said Inspector General of the Department of Veterans Affairs Cheryl Mason. “As VA Inspector General, I made it a priority for all VA OIG components to actively pursue those who attempt to defraud VA healthcare programs.”
“Today’s coordinated takedown reflects the Department of War Office of Inspector General’s unwavering commitment to protecting Service members, retirees, and their families from those who exploit federal health care programs,” said Inspector General Platte B. Moring III. “Working alongside our law enforcement partners, the Defense Criminal Investigative Service continues to pursue schemes that endanger patients, erode trust in the medical system, and divert resources critical to military readiness.”
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Prior to the charges announced as part of today’s nationwide Takedown and since its inception in March 2007, the National Fraud Division’s Health Care Strike Force program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, CMS, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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The following materials related to today’s announcement are available on the Health Care Fraud Unit’s website through these links:
- Graphics and Resources
- Case Descriptions
- Court Documents
Justice Department Files Complaint Challenging New York Mask Ban and Identification Requirements for Federal OfficersRead the Press Release
WASHINGTON—Yesterday, the Department of Justice filed a lawsuit against the State of New York, Governor of New York Kathy Hochul, New York Attorney General Letitia James, and Assistant Attorney General in Charge, Buffalo Regional Office, challenging their unconstitutional attempt to regulate federal law enforcement officers by criminally prohibiting federal officers from wearing masks, requiring individual identifiers, and banning cooperative 287(g) agreements with numerous local law enforcement agencies dedicated to helping enforce this nation’s laws.
Not only is the law an illegal attempt to regulate the federal government, but, as alleged in the complaint, the law threatens the safety of federal officers who have faced an unprecedented wave of harassment, doxing, and even violence. Threatening officers with prosecution for simply protecting their identities and their families also chills the enforcement of federal law and compromises sensitive law enforcement operations.
"Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties," said Acting Attorney General Todd Blanche. "New York’s anti-law enforcement policies regulate the federal government and are designed to create risk for our agents. These laws cannot stand."
"Governor Hochul cannot tell Federal officers how to do their job,” said Associate Attorney General Stanley Woodward. "And she certainly cannot prohibit them from ensuring their own safety in conducting Federal law enforcement operations. Our suit today stops New York’s unconstitutional efforts."
"The Department of Justice will steadfastly protect the privacy and safety of law enforcement from unconstitutional state laws like New York’s," said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
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 lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in Virginia, New Jersey, and California.
Justice Department Concludes USDA Preferences for “Socially Disadvantaged” Groups Violate the ConstitutionRead the Press Release
WASHINGTON—The Department of Justice issued an opinion today finding that certain U.S. Department of Agriculture (“USDA”) preferences for “socially disadvantaged” groups unconstitutionally discriminated based on race and sex.
The Office of Legal Counsel determined that conservation‑planning programs that authorized USDA to waive user fees for “socially disadvantaged” farmers as defined by race‑ and sex‑based criteria failed to satisfy the Constitution’s equal-protection guarantee. The statutory and regulatory definitions of “socially disadvantaged” farmers preferred certain racial groups and women over other farmers without a compelling or important governmental interest to justify such classifications. The opinion upheld five other USDA programs as constitutional because they could be administered in a race- and sex-neutral manner.
“Racial discrimination is illegal, and the government cannot show preference to certain groups when awarding special benefits without a compelling reason to justify the classification,” said Acting Attorney General Todd Blanche. “This Department of Justice is committed to ending illegal DEI initiatives across the federal government that violate our Constitution and laws.”
“Our colorblind Constitution generally prohibits the federal government from distributing benefits based on race or sex,” said Joshua Craddock, Deputy Assistant Attorney General for the Office of Legal Counsel. “Where Congress has not made the required findings and where classifications sweep far beyond any legitimate purpose, the Department must conclude that such preferences are unlawful.”
“Today’s opinion affirms discrimination based on race and sex is unconstitutional and no program at the U.S. Department of Agriculture, including those in the Farm Production and Conservation mission area, will act otherwise," said USDA Secretary Brooke Rollins. "All persons served by this Department will, without question, be treated equally.”
USDA may continue to provide technical assistance, financial support, and outreach to farmers and ranchers through constitutionally permissible means. Building on the Office of Legal Counsel’s December 2025 opinion concerning the Department of Education’s race-based education programs and the Solicitor General’s February 2026 letter to Congress about USDA’s race- and sex-based preferences, today’s opinion ensures that programs for American farmers operate consistent with the longstanding principle that all persons are entitled to equal treatment under the law.
The full opinion is available on OLC’s website.
Justice Department Sues State of New York for Requiring Catholic Nursing Facilities to House Men with WomenRead the Press Release
The Justice Department notified the U.S. District Court that it intends to intervene in a lawsuit filed by an order of Catholic nuns — the Dominican Sisters of Hawthorne — against the State of New York, challenging a State law that requires housing biological men with women in the Sisters’ residential hospice care program. The United States’ supports the Sisters of Hawthorne’s argument that the New York law violates the U.S. Constitution’s equal protection of religious groups.
“States should take notice that they cannot require Americans to abandon their religious beliefs in the name of woke gender ideology,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “For more than a century, the Dominican Sisters of Hawthorne have provided free palliative care to indigent cancer patients in their last days. New York’s law would force these religious women to choose between their faith and their license if they wish to continue serving the dying.”
The United States’ Complaint-in-Intervention alleges that New York Public Health Law § 2803-c-2 violates the Fourteenth Amendment’s Equal Protection Clause by requiring religious facilities to meet requirements that violate religious beliefs, while excusing non-religious facilities from those same requirements. New York’s law requires long-term care facilities to assign rooms to transgender residents based on “gender identity” rather than biological sex, and facility staff to use names and pronouns reflecting gender identity rather than biological sex. New York’s law permits facilities to refuse opposite-sex room assignments based on secular clinical judgments — that the assignment would cause psychological harm to a roommate — but offers no equivalent accommodation based on a religious judgment that the assignment would cause spiritual harm. The Acting Attorney General certified this case pursuant to 42 U.S.C. § 2000h-2, which authorizes the United States to intervene in equal protection cases of general public importance.
The Dominican Sisters of Hawthorne operate Rosary Hill Home, a skilled nursing facility that provides free palliative care to indigent cancer patients in their last days, and welcome every patient. Catholic teaching holds that biological sex is God-given and cannot be morally changed, and that identifying a person by another sex is religiously prohibited lying. Consistent with that teaching, Rosary Hill houses patients in single-sex rooms based on patients’ biological sex, refers to patients by pronouns reflecting their biological sex, and performs “very personal acts of care such as painting women’s fingernails, combing their hair, changing them into fresh nightgowns, and arranging flowers in their rooms.”
The Civil Rights Division’s Disability Rights Section is handling this matter. The Section enforces federal civil rights laws that protect disabled individuals, including those who receive palliative care in long-term care facilities. For more information about the Civil Rights Division and its work, please visit www.justice.gov/crt.
Members of the public who believe they have experienced religious discrimination may file a complaint at civilrights.justice.gov.
Justice Department Files Complaint Challenging Philadelphia Mask Ban and Identification Requirements for Federal Officers and VehiclesRead the Press Release
WASHINGTON – Today, the Department of Justice filed a lawsuit against the City of Philadelphia, Mayor Cherelle Parker, District Attorney Lawrence Krasner, and City Solicitor Renee Garcia, challenging their unconstitutional attempt to regulate federal law enforcement officers by criminally prohibiting federal officers from wearing masks, requiring individual identifiers, and prohibiting the use of unmarked vehicles in the city. Phila. Bill No. 260060 (“Prohibition on Law Enforcement Secreting Their Identity”).
Not only is the law an illegal attempt to regulate the federal government, but, as alleged in the complaint, the law threatens the safety of federal officers who have faced an unprecedent wave of harassment, doxing, and even violence. Threatening officers with prosecution for simply protecting their identities and their families also chills the enforcement of federal law and compromises sensitive law enforcement operations.
The Bill explicitly states that “It is the intent of this Council to define the structure of the scope of duty, as well as substantive obligations of . . . federal law enforcement operating within the jurisdiction of the City of Philadelphia.” This led to the Mayor and City Solicitor openly questioning the Bill’s “significant legal problems, primarily concerning the City's authority to regulate the conduct of federal officers when carrying out their duties under federal law.” Indeed, the City Solicitor observed that the Bill “would send an inaccurate signal to the public that the [City] can legally and practically enforce the Bill.” Nevertheless, the Bill is set to take effect next month, absent the relief sought today by the United States.
“Today we regrettably had to sue the birthplace of this great Nation,” said Associate Attorney General Stanley Woodward. “But we will not sit by while Philadelphia flagrantly violates our Constitution, seeking to criminally punish our Nation’s law enforcement heroes merely for doing their job.”
“It is disappointing to see the city where our Constitution was born so egregiously violate its separation of powers by criminalizing the work that Federal officers do to keep Philadelphians safe,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Philadelphia may not regulate Federal operations and its unconstitutional attempt to do so must be stopped.”
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 lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in Virginia, Connecticut, New Jersey, and California.
Justice Department Charges 11 Illegal Aliens Among 15 in $1.4M Benefit Fraud Crackdown in MassachusettsRead the Press Release
The Justice Department announced today fifteen individuals, 11 illegal aliens and four U.S. citizens, have been charged and arrested for benefit fraud in Massachusetts. The defendants are charged with more than $1.4 million in Supplemental Nutrition Assistance Program (SNAP) benefit fraud, MassHealth benefit fraud and disability and unemployment benefit fraud, just to name a few.
“These cases highlight a broader, deeply troubling pattern: the exploitation of America’s safety-net by illegal aliens,” said Assistant Attorney General Colin M. McDonald for the National Fraud Enforcement Division. “Fraud by illegal aliens carries real and substantial costs to American taxpayers and places enormous strain on our public benefits systems. The Fraud Division remains laser-focused on rooting out fraud — whether committed by illegal aliens or anyone else — and recovering money wrongfully taken from the American people.”
“These criminal illegal aliens conspired to defraud Massachusetts taxpayers of more than $1.4 million in public benefits, depriving American citizens of benefits that they needed,” said DHS Secretary Markwayne Mullin. “After these 12 criminal illegal aliens face justice, they will be swiftly removed from our country so they can never defraud American taxpayers again. Under President Trump, DHS is putting the American people first again.”
The following individuals have been charged over the past week. Several defendants’ names are currently unknown at this time, as they have been living under stolen identities:
- Heriberto Rodriguez of Framingham, Mass., is charged with passport fraud, SNAP fraud, and aggravated identity theft in connection with $546,463 in total benefit fraud loss ($175,182 in MassHealth fraud; $146,944 in Social Security fraud; $185,194 in HUD fraud; and $39,000 in SNAP fraud);
- Mirian Chalas, 33, a U.S. citizen living in Salem N.H., is charged with making false statements in connection with $266,000 in MassHealth fraud; $25,000 in Social Security Disability fraud; and $12,000 in SNAP fraud;
- Santo Escolastico Cuello, 56, a Dominican national unlawfully living in Worcester, Mass., is charged with aggravated identity theft and making false statements relating to a health care program in connection with $162,180 in MassHealth fraud;
- John Doe, age unknown, suspected to be in the United States illegally, is charged with false representation of a Social Security number, aggravated identity theft and making false statements relating to a health care program in connection with MassHealth fraud totaling $75,000 and aggravated identity theft;
- John Doe, age unknown, suspected to be in the United States illegally living in Quincy, Mass., is charged with illegal acquisition or use of SNAP benefits, theft of government funds and aggravated identity theft in connection with SNAP benefit fraud totaling $11,000;
- Mario Baez Romero, 45, a Dominican national unlawfully living in Somerville, Mass., is charged with aggravated identity theft and passport fraud in connection with $26,942 in SNAP fraud and $48,785 in MassHealth Baez Romero was allegedly encountered during an interdiction of a recreational vessel near Key Biscayne in Miami, Fla. in May 2026;
- Richard Odelis Vallegas Nunez, 35, a Dominican national unlawfully living in Allston, Mass., is charged with aggravated identity theft and unlawful production of an identification document in connection with $48,865 in MassHealth fraud;
- Miguel Diaz Matos, 54, a Dominican national living in Lynn, Mass., is charged with illegal acquisition or use of SNAP benefits, theft of government funds and aggravated identity theft in connection with $13,431 in SNAP fraud and $50,494 in MassHealth fraud;
- John Doe, age unknown, suspected to be in the United States illegally, is charged with making false statements related to a health care program in connection with $32,717 in MassHealth fraud;
- John Doe, age unknown, suspected to be in the United States illegally, living in Lynn, Mass., is charged with aggravated identity theft and making false statements relating to a health care program in connection with $38,776 in MassHealth fraud;
- Mitul Patel, 40, an Indian national unlawfully living in Worcester, Mass., is charged with conspiracy to commit visa fraud, in which co-conspirators staged a false armed robbery of a convenience store to allow “victims” such as Patel, to seek U Visas as victims of violent crimes;
- Santo Tejada Sanchez, 48, a Dominican national unlawfully living in Haverhill, Mass., is charged with aggravated identity theft, theft of government funds and SNAP benefit fraud totaling $4,054;
- Jennifer Ferran, 48, a U.S. Citizen living in Haverhill, Mass., is charged with theft of government property, Social Security fraud and furnishing false information to Social Security in connection with over $29,000 in Social Security fraud;
- Owen Landry, a/k/a “Oski,” 24, a U.S. citizen living in Haverhill, Mass., is charged with theft of government property, Social Security fraud and furnishing false information to Social Security in connection with over $29,000 in Social Security fraud; and
- Yahaira Diaz Gomez, 45, a Dominican national living in Mattapan, Mass., is charged with making false statements relating to a health care program in connection with $48,694 MassHealth fraud.
“Today’s announcement is just the beginning of what will be a sustained and ongoing effort to arrest and charged individuals for benefit fraud in Massachusetts. The defendants charged today, stole from a number of programs, including SNAP and MassHealth – which are designed to assist U.S. citizens in need of food and health care. They allegedly stole tens of thousands of dollars each in benefits for which they are not entitled,” said U.S. Attorney Leah B. Foley. “There isn’t any place else in the world where you can go and be handed free food, free housing, free healthcare and free monthly checks, while being in the country illegally. However, it appears that you can come to Massachusetts and steal as many benefits as you want without fear and without any accountability. This is all ending on my watch. Beginning today, we will be announcing benefit fraud charges on a rolling basis.”
“Stealing someone’s identity to rip off unemployment benefits isn’t just breaking the law — it's stealing from every American who plays by the rules,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor. “We will continue working with the U.S. Attorney’s Office, HSI’s Document and Benefit Fraud Task Force, and our federal and state partners to hunt down these criminals and ensure they pay the price for stealing from hardworking Americans.”
“During this short surge operation, we have uncovered over $1 million of fraud — but we’re just getting started. In response to rampant fraud in Massachusetts, and with the support of our task force partners and the U.S. Attorney for the District of Massachusetts, we’re redoubling our efforts to root out fraud and bring these criminals to justice,” said Jeffrey Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England. “HSI is making real progress identifying government benefits fraudsters, dismantling identity document dealers, and arresting those who steal from taxpayer-funded programs.”
“Medicaid enrollment fraud undermines the integrity of our health care system and inflicts real harm on the victims whose personal information is exploited and whose medical records are compromised,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Every fraudulent dollar paid out through these schemes is a dollar taken from those who are truly entitled to these benefits —and we will not allow that theft to go unanswered.”
The charge of SNAP fraud of over $5,000 provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of SNAP fraud of over $100 provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of passport fraud provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful production of an identification document provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of conspiracy to commit visa fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of theft of government funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of Social Security fraud provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of making false statements to federal officials provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of making false statements relating to a health care program provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of furnishing false information to Social Security provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory two-year sentence to run consecutively to any other sentence imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. The Team is led by two senior federal prosecutors serving as Fraud Coordinators, whose mission it is to aggressively investigate and prosecute misuse of taxpayer-funded benefits in Massachusetts.
Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is 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.
United States Attorney Leah B. Foley; Assistant Attorney General Colin M. McDonald for the National Fraud Enforcement Division; Anthony P. D’Esposito, Inspector General, U.S. Department of Labor; Jeffrey Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England; Charmeka Parker, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigations – Northeast Region; and Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General made the announcement today.
The details contained in the charging document are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
National Security Division Announces First Declination Under the Department-wide Corporate Enforcement PolicyRead the Press Release
The Justice Department announced today that it has declined the prosecution of Robert Bosch GmbH (Bosch), thereby resolving its investigation into an alleged scheme to send products and software manufactured with equipment that was the direct product of U.S. software or technology to an Entity-listed company in the People’s Republic of China (PRC). This decision was reached pursuant to Part I of the Department-wide Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP), after also considering the factors set forth in the Department’s Principles of Federal Prosecution of Business Organizations. Bosch promptly disclosed the misconduct to the National Security Division (NSD), fully cooperated, and timely and appropriately remediated — which qualified them for a declination under the CEP, given that aggravating circumstances were absent Bosch has agreed to disgorge the $11,430,098 in profits it made as a result of the transactions at issue — a portion of which will be credited towards the $36,184,680 fine paid in a parallel civil action by the Department of Commerce.
As announced by NSD on March 30, enforcing export control and sanctions laws is a top priority and furthers NSD’s mission to protect and defend the United States against the full range of national security threats. Moreover, the Justice Manual (JM) assigns violations of the U.S. government’s primary export control and sanctions regimes, among other criminal laws affecting, involving or relating to the national security, to NSD. JM 9-90.020. This is the first time that NSD has declined the prosecution of a company under the CEP.
“This declination reflects the clear benefits for companies that promptly disclose potential violations and fully assist in our investigations,” said Assistant Attorney General for National Security John A. Eisenberg. “Bosch’s cooperation and timely remediation met the high standards set by the Corporate Enforcement Policy, supporting a fair and efficient resolution. This first-of-its-kind decision by NSD highlights the important role of transparency in safeguarding U.S. technology and national security.”
“This settlement agreement underscores BIS’s commitment to strong enforcement as well as incentivizing voluntary disclosures of past violations,” said Assistant Secretary of Commerce for Export Enforcement David Peters.
Between September 2020 to September 2024, Bosch, through two of its non-U.S. based subsidiaries, exported over $70 million worth of foreign-produced Micro-Electro-Mechanical Systems sensor products and foreign-produced software to Huawei Technologies Co., Ltd. and its affiliates on the Entity List, including Huawei Tech. Investment Co. Ltd. Hong Kong (collectively, Huawei) without the required license or authorization from the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) in violation of the Export Administration Regulations (EAR), 15 C.F.R. Parts 730-744. The two implicated subsidiaries are Bosch Sensortec GmbH (BST) and ETAS GmbH (ETAS). In particular, BST and ETAS provided to Huawei foreign-produced items that were subject to the EAR pursuant to the Entity List Foreign Direct Product Rule (FDPR) for entities designated with “Footnote 1.” The investigation further revealed that Bosch’s trade compliance personnel were ill-equipped to provide accurate guidance on the FDPR, which led to several years of FDPR violations. In addition, the investigation identified ongoing sales in violation of the FDPR despite several missed opportunities where third-party companies identified potential applications of the FDPR to their products or equipment used in the provision of their services. As a result, Bosch made approximately $11,430,098 in pre-tax profits.
Bosch voluntarily self-disclosed the misconduct to NSD. Bosch cooperated with NSD’s investigation, including by preserving and proactively disclosing relevant facts, information, and documents about the conduct and promptly responding to NSD’s subsequent requests. Bosch also timely and appropriately remediated the misconduct by making organizational changes, imposing disciplinary action, adding employees to its trade compliance organization, expanding its U.S. trade compliance resources, and updating its internal policies and procedures. Given all of the above and the lack of aggravating circumstances, the Department is declining to prosecute Bosch, and Bosch has agreed to a disgorgement of the $11,430,098 in profits.
Trial Attorney Maria Fedor of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case with investigative assistance provided by the Department of Commerce, Bureau of Industry and Security.
Mexican national sentenced to 12 years in prison for cocaine trafficking following Homeland Security Task Force investigationRead the Press Release
ALEXANDRIA, Va. – A Mexican national was sentenced today to 12 years in prison for conspiracy to distribute cocaine. He was among 26 fugitives that the United States took into custody from Mexico on Aug. 12, 2025. The Justice Department Criminal Division’s Office of International Affairs coordinated the transfers.
According to court documents, David Fernando Vasquez Bejarano, aka Acelerado, 49, was a Mexico-based source of supply for a drug trafficking organization responsible for importing kilogram quantities of cocaine, methamphetamine, marijuana, and fentanyl across the southern border into the United States and the repatriation of narcotics proceeds back into Mexico. Large quantities of the narcotics Vasquez Bejarano supplied were imported into the greater Washington, D.C., area by co-conspirators, including by truck and U.S. mail.
Vasquez Bejarano’s narcotics trafficking generated enormous proceeds. During a six-month period, Vasquez Bejarano supplied co-conspirators with narcotics for which he was paid over $6 million. In total, Vasquez Bejarano and his co-conspirators trafficked over 450 kilograms of cocaine and other narcotics.
The Drug Enforcement Administration’s (DEA) Washington Division investigated this case.
Assistant U.S. Attorneys Kristin S. Starr and Edgardo J. Rodriguez and prosecuted the case.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Washington, D.C., comprises agents and officers from the FBI; Homeland Security Investigations; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Drug Enforcement Administration; Diplomatic Security Service; U.S. Marshals Service; U.S. Coast Guard Investigative Service; Naval Criminal Investigative Service; Transportation Security Administration Federal Air Marshals Service; U.S. Customs and Border Protection; Enforcement and Removal Operations; and Washington Baltimore HIDTA, with the prosecution being led by the U.S. Attorney’s Office for the Eastern District of Virginia.
Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:22-cr-27.
Acting Attorney General Todd Blanche Appoints National Coordinator for Child Exploitation and Human TraffickingRead the Press Release
In a memo to all Department of Justice employees, Acting Attorney General Todd Blanche announced today the establishment of a single National Coordinator to lead the fight against child exploitation and human trafficking, with the goal of preventing, prosecuting, and ending human trafficking and child exploitation in America.
Acting Attorney General Blanche appointed Alessandra Serano to serve as the National Coordinator and within 120 days, submit a report to the Deputy Attorney General updating the Department’s strategy for combatting child exploitation and human trafficking, and to serve as the Department’s liaison to both other federal agencies and outside stakeholders on the development and implementation of initiatives to fight human trafficking and child exploitation.
“Ending human trafficking and the exploitation of children has been and remains one of the highest priorities of the Department of Justice,” said Acting Attorney General Blanche. “With today's appointment of Ali Serano, we are sending a clear and unmistakable message to predators: we are coming for you. Ali’s outstanding record prosecuting those who engage in these heinous acts, together with her unwavering commitment to protecting victims, makes her the ideal choice for this critical role. To every victim: know that we stand with you and are committed to achieving justice for you.”
Human trafficking and child exploitation destroy lives and corrode our communities. They inflict profound pain on their victims and serve as immense revenue streams for criminal organizations. These crimes take many forms—from forced labor to sexual abuse—and affect thousands of people annually.
Human traffickers and child predators capitalize on the hidden nature of their crimes. They rely on the silence of their victims and a lack of information sharing among government agencies.
“It is time for the information silos to come down, for the silence to break, and for justice to be done,” Acting Attorney General Blanche writes in the memo.
To report child or human trafficking crimes, contact the National Human Trafficking Hotline at 1-888-373-7888 or contact us by text or message. File a file a confidential online report at https://humantraffickinghotline.org/report-trafficking. Your report will be forwarded to a law enforcement agency for investigation and action.
Read more information about other forms of child exploitation and abuse and how to report them, visit: www.justice.gov/criminal/criminal-ceos/report-violations.
Additional Background on Alessandra Serano
Ms, Serano has an extensive history at the Department of Justice, currently serving as Senior Counsel to the Deputy Attorney General. Previously she served on detail to the Senate Judiciary Committee and as an Assistant U.S. Attorney in the Cybercrime Section in the Eastern District of Virginia since 2023. She served on various special assignments within the Department of Justice from 2017-2021, including the U.S. Attorney’s Office for the U.S. Virgin Islands, and in the Office of Legal Policy, where she drafted policy memoranda related to human trafficking, child exploitation, immigration, and reduction of violent crime, among other duties. She served as the National Project Safe Childhood Coordinator for the Executive Office for United States Attorneys and is a subject matter expert in the areas of child exploitation, human and sex trafficking involving minors.
From 2003-2021, Ms. Serano was an Assistant United States Attorney in the Southern District of California. She is nationally recognized for her numerous prosecutions in human and sex trafficking and child exploitation cases. She tried over 45 federal felony trials and argued over a dozen appeals before the Ninth Circuit Court of Appeals. Ms. Serano received numerous national awards including the U.S. Attorney General’s Award, the Federal Bar Association’s Sarah T. Hughes Civil Rights Award, and Women in Federal Law Enforcement’s “Top Prosecutor” Award.
Justice Department Requires OhioHealth to Stop Using Anticompetitive Healthcare Contract Terms That Raise Costs for Ohio PatientsRead the Press Release
The Justice Department’s Antitrust Division filed a proposed settlement today to resolve the United States’ civil antitrust lawsuit against OhioHealth Corporation (OhioHealth) challenging the company’s anticompetitive contract restrictions. The proposed settlement would make healthcare more affordable by forbidding OhioHealth from imposing terms in its contracts with commercial health insurers that deter budget-conscious healthcare plans that would lower costs for Ohio consumers and employers.
“Since day one, President Trump and this administration have been laser focused on affordability and cutting costs for the American people,” said Acting Attorney General Todd Blanche. “Today’s settlement is another example of how this Department of Justice is bringing down healthcare costs for consumers and fighting the anti-competitive behavior that drove them up in the first place.”
“Providing affordable healthcare to Americans is uncontroversial and this Department of Justice will not tolerate corporate prioritization of revenue in contravention of our antitrust laws,” said Associate Attorney General Stanley Woodward. “This settlement reduces costs and brings back competition in the healthcare system and we are proud of the work of the Antitrust Division in reaching this successful outcome.”
This litigation and the proposed settlement, which the State of Ohio joined, are part of the Antitrust Division’s ongoing enforcement efforts to promote competitive healthcare markets.
“As I stated when we filed this lawsuit, healthcare competition is critical,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “This settlement will secure lower healthcare costs for Ohioans, and ending these anticompetitive contract terms will restore competition for patients in the Columbus area.”
“The Antitrust Division is fully committed to our important work in making healthcare affordable for our nation’s patients and employers,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “We are incredibly proud to have achieved this strong result for Ohioans.”
As alleged in the United States’ complaint, OhioHealth has used its market power to enact contractual restrictions that encumber or fully preclude insurers from offering innovative and budget-conscious health-insurance plans or plan features. OhioHealth has made insurers include OhioHealth in all of the networks for the commercial insurance products they offer, irrespective of OhioHealth’s prices versus those of its competitors. Purchasers of health insurance in Ohio have therefore been left with fewer choices and higher prices.
If approved by the court, the proposed consent judgment would:
- Void OhioHealth’s existing contract provisions that prohibit or deter insurers from offering innovative and budget-conscious health-insurance plans or plan features;
- Prevent OhioHealth from seeking or obtaining such contract provisions in the future;
- Prevent OhioHealth from penalizing or threatening to penalize health insurers from offering innovative and budget-conscious health-insurance plans or plan features; and
- Appoint a monitor for a five-year term and impose obligations on OhioHealth to submit regular reports to the Antitrust Division to ensure compliance with these remedies.
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 Jill Maguire, Acting Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the Southern District of Ohio may enter the final judgment upon finding it is in the public interest.
OhioHealth owns or manages 16 hospitals and outpatient facilities throughout the State of Ohio.
Justice Department Files to Intervene and Dismiss Lawsuit that Would Hamper America’s AI Innovation and SecurityRead the Press Release
Note: View motion for intervention and dismissal here.
Yesterday, the Justice Department’s Environment and Natural Resources Division (ENRD) filed a motion to intervene and to dismiss a private citizen lawsuit seeking to power down a large artificial intelligence (AI) facility in Southaven, Mississippi.
The filings concern a case where private litigants sued xAI and its subsidiary MZX Tech LLC, alleging violations of Clean Air Act permitting requirements, even though the State of Mississippi — which is charged with administering the permitting program — decided no permit was required. Plaintiffs’ allegations concern the power source for an AI data facility which trains and develops new AI models that are critical to the economy and the Department of War. The private litigants seek an injunction and damages.
“Ultimate responsibility for enforcing federal law belongs to the Executive Branch, not private interest groups,” said Associate Attorney General Stanley Woodward. “The Department of Justice is committed to maintaining that constitutional order while protecting national security and promoting American energy and innovation.”
“The Department of Justice will not sit idly by while private organizations use environmental laws to undermine our national security,” said Principal Deputy Assistant Attorney General Adam Gustafson of ENRD. “This case reflects the important work of the Environment and Natural Resources Division to unleash American energy for the sake of innovation and security.”
President Donald J. Trump’s recently issued executive order Promoting Advanced Artificial Intelligence Innovation and Security tasks federal agencies, committees, and officials to prioritize the promotion of AI innovation and security across the federal government. The Department of War is one of many agencies that protect Americans by utilizing AI. Overly burdensome regulation, including private lawsuits that seek to implement their own environmental enforcement, can threaten technological growth, American energy independence, and national security.
The Clean Air Act gives the federal government authority to intervene in citizen suits, and the Constitution gives responsibility for enforcing the laws to the President. That includes the power to exercise enforcement discretion in the national interest. In its filing, ENRD asked the U.S. District Court for the Northern District of Mississippi to dismiss the lawsuit, which would turn off critical power during an energy emergency and hinder the War Department’s use of AI for national defense.
xAI Motion to Intervene - ENRD.pdfFormer Nepal Orphanage Director Indicted for Illicit Sexual Conduct with a Minor Outside the United StatesRead the Press Release
A federal grand jury in North Carolina returned an indictment today charging a North Carolina man with engaging in illicit sexual conduct with a minor outside the United States.
According to court documents, Michael Hess, 73, of Davidson, traveled to Nepal between March 2005 and July 2008 and engaged in illicit sexual conduct with a minor victim. Hess founded Papa’s House, supported by the Nepal Orphans Home, in 2005.
Hess is charged with one count of engaging in illicit sexual conduct in foreign places. He is scheduled to make his initial court appearance tomorrow at 9:00 a.m. in the U.S. District Court for the Western District of North Carolina. If convicted, he faces a maximum penalty of 30 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 Assistant Director Heith Janke of the FBI’s Criminal Division made the announcement.
The FBI’s Child Exploitation Operational Unit and Charlotte Field Office are investigating the case and received assistance from their New Delhi Law Enforcement Attaché Office.
Trial Attorney McKenzie Hightower of the Justice Department’s Child Exploitation and Obscenity Section is prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
Anyone who has information regarding the case against Hess or who may know someone victimized by the defendant is requested to contact the FBI at 1-800-CALL-FBI (1-800-225-5324) or through the FBI online tip portal. Identified victims may be eligible for certain services and rights under federal and/or state law.
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 and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Felon Sentenced to 71 months in Federal Prison for Firearm PossessionRead the Press Release
Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Joseph Ryan Constantino Mallo, age 45, was sentenced to 71 months imprisonment for the crime of Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g)(1). The Court also ordered three years of supervised release and a mandatory $100 special assessment fee.
On December 5, 2025, at approximately 10:00 p.m., Guam Police Department officers conducted a traffic stop on a black Toyota Camry traveling on Route 10 in Mangilao after observing erratic driving and learning the vehicle’s insurance had expired. The driver, Joseph Ryan Constantino Mallo, stated he did not have a valid driver’s license. Officers also noted that Mallo appeared extremely nervous and attempted to block their view of the vehicle’s center console. With his consent, officers searched the vehicle and recovered a loaded Raven Arms MP‑25 pistol from a pouch in the center console. Records confirmed the firearm had been reported stolen in 2017. Both passengers denied knowledge of the firearm.
After being advised of his rights, Mallo admitted he had acquired the firearm two days earlier from an acquaintance who said he needed money. Mallo stated he purchased it for about $100, kept it in the borrowed vehicle for protection, and acknowledged he did not have a firearms identification card and knew he was not permitted to possess a firearm. He denied knowing the weapon was stolen and later provided a signed written statement consistent with his account.
Mallo has a lengthy felony record in both the Superior Court of Guam and the District Court of Guam, including a prior federal conviction for being a Felon in Possession of Firearms and Ammunition.
“Traffic stops are high-risk enforcement activity for police nationwide,” stated United States Attorney Anderson. “I applaud GPD and ATF for taking another armed felon off our streets. Repeat offenders can expect federal prosecution and lengthy sentences. We will not tolerate this danger to our communities.”
“The unlawful possession of a firearm by a convicted felon poses a serious threat to the safety and security of our communities,” stated ATF Seattle Field Division Special Agent in Charge Jonathan Blais. “This case demonstrates our unwavering commitment to holding prohibited individuals accountable when they choose to disregard the law and place others at risk.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Guam Police Department. Assistant U.S. Attorney Devarup Rastogi prosecuted the case in the District of Guam.
Department of Justice Files Suit to Stop Ongoing Medicaid Fraud Related to New York’s $10 Billion Home-Care ProgramRead the Press Release
The Justice Department announced today that it has filed a lawsuit in the U.S. District Court for the Eastern District of New York against the State of New York Department of Health, New York State Medicaid Director Amir Bassiri, and Public Partnerships LLC (PPL), an Alpharetta, Georgia-based company that has managed New York’s Consumer Directed Personal Assistant Program (CDPAP) since 2025.
“New York’s backroom deal with PPL has cost taxpayers millions of dollars and cast countless Medicaid patients to the curb,” said Assistant Attorney General Colin M. McDonald for the Justice Department’s National Fraud Enforcement Division. “Today’s action is the latest reminder that the Justice Department is mobilizing every available tool to protect taxpayer-funded programs from fraud and corruption.”
“One of the Justice Department’s key priorities is protecting the public fisc and delivering savings to American taxpayers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “New York’s failure to police a favored vendor that unlawfully siphoned millions of dollars of Medicaid funding is egregious and betrays the public trust. The Justice Department is acting to ensure that federal laws regarding truthful statements and fair dealing in federal health care programs are upheld and to prevent additional harm from being exacted against the public by Public Partnerships LLC and New York.”
The lawsuit aims to stop an alleged fraud scheme by which PPL has generated millions of dollars in unauthorized profits funded by federal taxpayers in connection with its takeover of New York’s $10 billion-dollar CDPAP program. The lawsuit alleges that the New York Department of Health awarded PPL the lucrative CDPAP contract after conducting a sham bid process, and then, despite learning of PPL’s intent to deviate from the representations made in its bid and violate the financial terms of the contract, failed to take action to hold PPL accountable and to protect public funds from misuse, resulting in a fraud scheme that remains unchecked to this day. The lawsuit seeks to enjoin all defendants from making further misrepresentations about the CDPAP program and from charging American taxpayers millions of dollars unauthorized by the contract.
CDPAP is a Medicaid program that provides home care through lay caregivers to Medicaid patients with disabilities or significant medical needs. In spring 2024, the New York Legislature passed a statute that consolidated the management of CDPAP from hundreds of pre-existing “fiscal intermediaries” to a single fiscal intermediary, setting up one of the most lucrative contracts for administering a Medicaid program in the nation. The lawsuit alleges that although New York purported to conduct a fair bidding process to select the single fiscal intermediary during summer 2024, New York pre-selected PPL for the billion-dollar contract by conducting a sham bid process that resulted in PPL being awarded the contract in late 2024.
The lawsuit further alleges that PPL and New York repeatedly made knowing misrepresentations to the public concerning the date by which PPL’s transition could be completed, intentionally concealing that, since the contract’s inception, both PPL and New York were aware that the transition would likely not be complete by April 1, 2025 – the contractually designated transition date – and would result in severe disruptions to patient care and harm to patients across the state. Worse yet, PPL and New York, without explanation, have disregarded key limits the contract imposed on the revenues and profits PPL was entitled to receive under the contract – limits that were central to the goal of saving hundreds of millions of dollars through the CDPAP transition.
Instead of ensuring that PPL complied with the contract and protecting the American taxpayers, New York has permitted PPL to raid the CDPAP program of millions of dollars in excess revenues, billing at hourly rates in excess of those anticipated by New York prior to the contract award. As a result of PPL’s self-dealing and New York’s failure to require it to comply with the terms of the contract, the purported cost savings that the CDPAP transition was to provide largely have been erased. To date, New York and PPL repeatedly and willfully have misled the public and the New York Legislature concerning important aspects of the CDPAP transition, including, without limitation, the gross mismanagement of the program by PPL and New York.
This case was investigated by the Civil Division’s Enforcement and Affirmative Litigation Branch. This case is being litigated by Assistant Director Patrick Runkle and Trial Attorneys Francisco Unger and Shimeng Zhang.
Bridal Shop Owner Sentenced to Prison for Willfully Failing to Pay More Than $1.3M in Employment TaxesRead the Press Release
A Parker woman was sentenced today to 12 months and one day in prison for willfully failing to pay over employment taxes on behalf of the bridal shop company she owned and operated for more than a decade.
According to court documents and statements made in court, Donna M. Savoy owned and operated Donna Beth Creations, a bridal studio in Denver, Colorado. As the owner of the company, Savoy was responsible for withholding Social Security, Medicare and income taxes from her employees’ wages, paying those funds over to the IRS and filing quarterly employment tax returns with the IRS.
For more than a decade – that is, from the first quarter of 2014 through the fourth quarter of 2024 – Savoy admitted that she withheld taxes from her employees’ wages but willfully failed to pay them over to the IRS. Savoy also willfully failed to file employment tax returns for that entire period. Savoy spent the tax money she withheld from her employees on personal and business expenses. In total, Savoy caused a tax loss to the United States exceeding $1.3 million.
Savoy pleaded guilty to one count of willful failure to account for and pay over trust fund taxes.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Stuart A. Wexler of the Criminal Division’s Tax Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Statement of the Department of Justice Antitrust Division on the Closing of Its Investigation of the Merger of Paramount Skydance and Warner Bros.Read the Press Release
The Antitrust Division of the U.S. Department of Justice (“Division”) issued the following statement today in connection with the closing of the Division’s investigation into the proposed acquisition of Warner Bros. Discovery (“WBD” or “Warner Bros.”) by Paramount Skydance (“Paramount”), together (the “Parties”):
The Division has completed its analysis of the proposed merger of Paramount and Warner Bros. and determined based on the evidence received in its investigation that the transaction is not likely to result in harm to competition or American consumers, including with respect to: (1) streaming video on demand (“SVOD”); (2) linear television; and (3) studio development, production, or distribution of films for theatrical release. Over the course of a rigorous eight-month investigation led by the Division’s career staff, the Division received from the Parties over two million documents from over 80 custodians, substantial productions of data, as well as extensive documents, data, and advocacy from third parties across the media and entertainment ecosystem. State Attorney General offices (“States”) participated in the Division’s investigation by virtue of the Parties’ voluntary waivers of confidentiality, which allowed the Division and States to share information with each other and for the States to attend and participate in the Division’s depositions.
In December 2025, Netflix entered into an agreement to acquire WBD. Subsequently, Paramount submitted an all-cash tender offer. The Division reviewed both the Netflix proposed acquisition and Paramount’s competing offer. As a consequence of the competitive bidding process between Netflix and Paramount to acquire Warner Bros., the Division’s review of the competitive impacts of an acquisition of WBD began prior to Paramount reaching a definitive agreement with WBD. Throughout the investigation, the Division benefited from the comparative perspectives and contrasting visions presented in these competing proposals on the evolving media and entertainment landscape and the strategic value of WBD.
Warner Bros. has been a repeated acquisition target in the media and entertainment industry. It is thus familiar to the Division from prior investigations and enforcement actions, including AOL/TimeWarner (2001), AT&T/TimeWarner (2018), and WarnerBros./Discovery (2022). The legacy of these transactions illustrates the challenges that arise when the commercial rationale for a deal lacks clear alignment with competitive incentives of the acquiring firm or the competitive evolution of the marketplace. In technology-driven industries, the disruptors of the recent past may quickly become the entrenched monopolists of the present day. It is with this historical experience and present enforcement sensitivity to the contestability of dynamic markets that the Division conducted a thorough investigation of the proposed transaction to assess whether the proposed transaction presented any harm to competition. The extensive investigatory record reviewed by the Division suggests that the impact of the transaction will be to increase competition across the media and entertainment ecosystem, with benefits for American consumers and workers.
I. Streaming Video On Demand (“SVOD”)
First, the Division analyzed whether the proposed transaction was likely to harm competition in streaming video on demand (“SVOD”). Streaming has become one of the most prevalent forms of distribution of media content in the digital age. SVOD was pioneered by Netflix in its successful displacement of legacy home video distribution and successful disruption of traditional linear and broadcast offerings. The decline of Blockbuster Video reflects the healthy disruptive potential that drives the American economy as new and innovative solutions displace legacy offerings to meet evolving consumer preferences. Following Netflix’s pioneering role in the emergence of SVOD almost twenty years ago, large tech firms like Amazon, and later legacy media firms like Disney, entered and built SVOD platforms to compete for and meet shifting consumer preferences for scripted content and digital distribution. By comparison, the Parties are historically late entrants into SVOD with less customers subscribing to Paramount+ and Warner Bros.’ HBO Max and discovery+ offerings, compared to those of the three largest streamers today.
The evidence reviewed and carefully analyzed by the Division indicates that, post-merger, competition in SVOD is not likely to be harmed. To the contrary, the combined firm is likely to increase competition by offering consumers a more robust competitive alternative to the larger SVOD offerings. Based on extensive interviews with market participants and review of the parties’ own documents that were made in the ordinary course of business, the parties have a clear path to injecting additional competitive pressures across the media ecosystem to innovate and provide value to creators and consumers. Non-SVOD video alternatives such as YouTube, Tik-Tok, or other social media products do not appear to be competitive substitutes here under well-established antitrust legal precedents, although they compete broadly for consumer attention.
The Division also investigated whether alternative streaming video platforms and consumers might suffer if the combined company were to keep its new content and existing IP captive on its own streaming platforms, as opposed to licensing such content across the media distribution ecosystem, including to competing platforms. Such an outcome appears unlikely given the Parties’ historical practices of broadly licensing content. Even when studios such as Paramount license content on exclusive terms to another streamer, they typically maximize the value of that content by moving it from one streamer to another at the end of a license term to broaden the audience exposure across differentiated distribution channels. The Division identified no evidence to suggest that Paramount’s historical practice or incentive to do so would end following the transaction.
II. Linear Television
Second, the Division analyzed whether the proposed transaction would harm competition related to linear television. Consistent with the above-referenced consumer switching toward streaming, linear television has faced a steady decline as consumers move away from standard cable and satellite packages. The “cord cutting” phenomenon has substantially reduced revenue to both linear network owners and traditional linear distributors. This trend has accelerated in recent years as streaming services have become the primary means by which many people watch movies and television. Like broadcast television, a segment in which the transaction presents no competitive overlap, linear television has historically managed the competitive pressures from streaming alternatives by securing exclusive rights to live programming such as sports and news – segments in which streaming alternatives historically posed limited competitive significance. Today, however, streaming solutions (including non-SVOD offerings) compete aggressively for live programming such as premier sports rights, news, and political commentary (e.g., video podcasts), putting increasing competitive pressure on legacy linear and broadcast networks to secure live programming at higher costs. The evidence reviewed and carefully analyzed by the Division shows that the proposed acquisition is not likely to harm competition for linear television given the robust competitive landscape for live programming.
III. Studio Development, Production, and Distribution of Films for Theatrical Release
Third, the Division analyzed whether the transaction would harm competition for studio development, production, or distribution of films for theatrical release. Similar to the Division’s analysis of SVOD competition, the Division benefited in its assessment of competition for theatrical release on the comparative perspectives and strategic visions outlined in the competing proposals for Warner Bros. studio. Today, the Parties compete against traditional studios such as Disney, Sony, Universal, Lionsgate, and MGM (now owned by Amazon), as well as smaller independents such as A24, NEON, and Blumhouse. In recent years, Netflix and Apple have also entered and signaled a continued interest in theatrical release as a complementary business to SVOD.
The substantial body of evidence available to the Division indicates that the transaction is not likely to harm competition in studio development, production, or distribution of films for theatrical release. Instead, the evidence shows extensive competition within the industry, which has generated greater output and diversity of film offerings, and is likely to continue unabated. In fact, even since the transaction was announced, the evidence shows competition for theatrical production and distribution has increased. Smaller studios have turned to innovative content development and distribution strategies to challenge traditional assumptions regarding the conditions necessary for successful theatrical release. Indeed, this remains true looking even at narrow categories like “tentpole” or “blockbuster” theatrical production and distribution.
For example, non-legacy studios have been successful in developing, producing, and distributing films with significant budgets above $100 million, with additional large budget films soon to be offered in theaters by studios including Lionsgate (Hunger Games), Netflix (Narnia), A24 (Elden Ring), and others. Moreover, recent box office successes since the announcement of the transaction show that a studio’s legacy does not determine whether it can succeed at developing, producing, or distributing in the domestic box office today: including, for example, Amazon MGM (Project Hail Mary), A24 (Backrooms), Lionsgate (Michael), Blumhouse (Obsession). These disruptive industry developments suggest a potential inflection point in the evolving competitive landscape for theatrical production and distribution, supporting the Parties’ incentive to continue to generate and distribute content.1
The Division also analyzed multiple potential theories of harm articulated by complainants and evaluated each substantively on the merits to identify whether any would result in harm to consumers as opposed to harm to a competitor.2
One theory pointed to the purported effects of the Disney/Fox transaction as a comparable event study from which to infer that the proposed transaction risks a reduction in theatrical output. The fatal conceit of that analogy, however, is that the Disney/Fox transaction closed a year before the COVID pandemic began, which drove dramatic changes in studio output and audience content consumption patterns. In the years following the pandemic, Disney substantially increased its total spending on content production in the aggregate across its theatrical and streaming platforms. Moreover, as an entertainment and hospitality business focused historically on developing core franchise IP to monetize across a diversified business, the incentives of Disney with respect to total output of theatrical content do not clearly align with a pure-play media business like Paramount.
Another theory raised whether the merger would harm competition for labor as an input for the production and distribution of scripted content. While taking seriously the potential impact of the proposed transaction on the creative community and domestic labor groups, the substantial evidence does not suggest a likelihood of reduction in output. That is because the demand for creative workers and labor is correlated with the Parties’ incentives to maintain or expand output. Thus, the expressed labor concerns do not raise actionable antitrust concerns.
***
The Division’s mandate is to investigate and, if necessary, litigate proposed mergers that harm competition or American consumers. This investigation included a review of reams of documentary evidence, hours of deposition testimony of senior-level executives, interviews with third-party witnesses, and staff-led meetings with the Parties themselves. These investigative efforts all led to the same conclusion: the film and television industry is highly dynamic, and the proposed transaction is not likely to harm competition or American consumers.
1 Consistent with controlling Supreme Court precedent, these facts raise serious questions regarding rigid reliance on historical market shares to sustain a legal presumption of harm regarding competition for theatrical release. See United States v. General Dynamics Corp., 415 U.S. 486, 508 (1974).
2 Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc., 427 U.S. 477, 488 (1977) (citing Brown Show Co. v. United States, 370 U.S. 294, 320 (1962) (“the antitrust laws…were enacted for ‘the protection of competition, not competitors’”).
Justice Department Files to Transfer 45,000 Acres from Arizona to Hopi TribeRead the Press Release
Today, the Justice Department and Department of the Interior announced the filing of a “friendly condemnation” to effect the transfer of more than 45,000 acres of land from the State of Arizona to the United States to be held in trust for the Hopi Tribe. Upon the Hopi Tribe depositing $8.4 million in the registry of the U.S. District Court for the District of Arizona as the estimate of just compensation, title to the land will pass from Arizona to the United States. Interior will then immediately place the lands into trust for the Hopi Tribe.
The filing is the second in a series of condemnation actions that will ultimately bring over 270,000 acres of land — including over 110,000 acres of condemned Arizona state trust lands — into united ownership for the benefit of the Hopi Tribe.
“Today’s filing is another example of the executive branch faithfully carrying out the laws that Congress enacted,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “As directed by the Navajo-Hopi Land Dispute Settlement Act of 1996, the Department of Justice is condemning, with Arizona’s consent, over 45,000 acres of Arizona state trust lands using funds provided by the Hopi Tribe, and the Department of the Interior will transfer those lands into trust status for the Tribe. In carrying out this law, the United States is proud to assist the Hopi Tribe in the continued expansion of their trust lands and growth of their ranching operations.”
“This filing marks a significant milestone in fulfilling long-standing commitments to the Hopi Tribe and reflects the Trump administration’s focus on building strong, enduring tribal partnerships,” said Secretary of the Interior Doug Burgum. “By placing these lands into trust, we are strengthening the tribe’s ability to steward its resources, expand opportunities for economic development and exercise greater self-governance. The Department of the Interior is proud to work alongside the Department of Justice, the Hopi Tribe and our state partners to advance this historic effort and ensure these lands are secured for the benefit of the Hopi people for generations to come.”
“Today is a historic day and a day for celebration for the Hopi Tribe — the promises made to the Hopi Tribe by 1996 Navajo-Hopi Land Dispute Settlement Act are being fulfilled,” said Chairman Lamar B. Keevama of the Hopi Tribe. “To all those in the State of Arizona, at the Department of Interior, and at the Department of Justice who have had a hand in this effort, kwa’kwha — thank you. Special thanks to Governor Hobbs and State Land Commissioner Sahid for their leadership and dedication to this effort. The Hopi People are in the process of planting their corn. I pray that this land reacquisition is a newly planted seed that will provide abundant benefits for the Hopi Tribe. It is fitting that this historic moment coincides with such an important time."
“For decades, the State of Arizona has failed to complete the promise enshrined in the Navajo-Hopi Land Dispute Settlement Act of 1996,” said Arizona Governor Katie Hobbs. “I’m proud to do what five governors before me did not. When I became governor, I made a pledge to work with Tribal communities as partners in governance to create opportunity, security and freedom for every community throughout our state. This historic land transfer will help us do just that by following through on a longstanding promise. I will continue working hand-in-hand with tribal partners to ensure their sovereignty is respected and their communities have the economic opportunity they need to thrive.”
This condemnation is filed under the authority of the Navajo-Hopi Land Dispute Settlement Act of 1996, which ratified a 1995 resolution to a long-running land dispute in northeastern Arizona between the Hopi Tribe, the Navajo Tribe, and the United States.
Attorneys from ENRD’s Land Acquisition Section are handling the matter.
Former Intelligence Community Contractor Pleads Guilty to Accepting KickbacksRead the Press Release
A former Intelligence Community contractor pleaded guilty to conspiring to commit offenses against the United States by soliciting and accepting kickbacks.
The defendant, David Duggin, 55, of Orrtanna, Pennsylvania, was a former Senior Systems Engineer and on-site contractor at a U.S. government Intelligence Community agency.
“Mr. Duggin exploited his position as a government contractor in the intelligence community at the expense of taxpayers,” said Associate Attorney General Stanley Woodward. “The Antitrust Division and its law enforcement partners will continue to hold those who seek profit through fraudulent schemes, accountable.”
“The defendant broke faith with the men and women of the United States Intelligence Community — who work tirelessly and often anonymously in defense of our nation — to enrich himself with hundreds of thousands of dollars in kickbacks,” said Acting Deputy Assistant Attorney General Daniel Glad of the Justice Department’s Antitrust Division. “The defendant now faces years in prison for corrupting a competitive procurement process backing our national security.”
“Mr. Duggin took advantage of his position to enrich himself and his co-conspirators. Our office will not tolerate this greedy, deceitful behavior that, if unchecked, can lead to an erosion of public trust and impact on our national security,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “The U.S. Attorney’s Office will not hesitate to hold accountable any individual who attempts to defraud our government.”
“Mr. Duggin betrayed the trust placed in him by exploiting his access to sensitive government systems to steer contracts for personal gain,” said Acting Special Agent in Charge Allison Russo of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS). “This outcome reflects the strong partnership between DCIS, our federal investigative counterparts, and the Department of Justice, and underscores our shared commitment to safeguarding the integrity of the Department of War and the broader Intelligence Community.”
“David Duggin repeatedly put himself before American taxpayers who trusted him to act on their behalf and for their benefit,” said Special Agent in Charge Jimmy Paul of the FBI Baltimore Field Office. “The FBI will continue to work with our law enforcement and government partners to hold accountable those seeking to profit through fraud and deception.”
According to documents filed in the U.S. District Court for the District of Maryland, Duggin and his co-conspirators corruptly used his on-site access to sensitive information at an intelligence agency to enrich himself and others by illegally obtaining government contracts for millions of dollars of hardware and software procured by U.S. government customers. Duggin’s co-conspirators paid Duggin at least $510,000 in illegal kickbacks in exchange for him influencing the procurement process to favor his co-conspirators. The conspiracy thwarted the competitive bidding process for the U.S. from at least as early as June 2018 and continued through at least as late as April 2024.
The maximum penalty for conspiring to commit an offense against the United States by accepting illegal kickbacks is five years in prison, three years of supervised release and a fine of $250,000. Moreover, the fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The DCIS and the FBI Baltimore Field Office are investigating the case, among others. Trial Attorneys Elizabeth French, Anna Wang, and Ronald Fiorillo for the Antitrust Division’s Washington Criminal Section and Assistant U.S. Attorneys Matthew Phelps and Matthew Shea for the District of Maryland are prosecuting the case.
The Justice Department’s Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.
Anyone with information in connection with this investigation can contact the PCSF at the link listed above. Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards.
Coordinated Law Enforcement Actions Results in Arrests of Seven Men in Connection with Fraudulent COVID-19 Relief Loan ApplicationsRead the Press Release
As a result of coordinated law enforcement actions in three states, seven men have been arrested and indicted in connection with submitting fraudulent COVID-19 relief loan applications administered by the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program, totaling $205,639 in fraudulent loan proceeds. The takedown was conducted by the FBI Field Offices in Las Vegas, Phoenix, and Houston, and the Las Vegas Metropolitan Police Department.
“This case demonstrates the power of a true whole-of-government approach to deliver swift justice against fraudsters—and it should be replicated in every region across the United States,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “I commend the outstanding work of the U.S. Attorney’s Office for the District of Nevada, the FBI, the SBA-OIG, the Las Vegas Metropolitan Police Department, and the North Las Vegas Metropolitan Police Department for holding these individuals accountable.”
“Seven defendants are alleged to have exploited government-funded programs designed to provide emergency financial assistance to Americans to line their pockets,” said First Assistant United States Attorney Sigal Chattah for the District of Nevada. “Thanks to the outstanding investigative efforts by the FBI, SBA-OIG, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department these defendants will now each have their day in court to face federal criminal fraud charges.”
According to allegations contained in court documents, Elias Santino Acereto; Sheyland Barnett; James Freeman; Tyrone Tatrice Johnson; Marcus Dushun McMillian-Bonner; Yves Harrison Pierre; and Nathan Jeffry Scott, all of Las Vegas, each provided false information and fake documentation when applying for PPP loans and/or EIDL loans. As alleged, they each fraudulently obtained the loan funds to enrich themselves.
Acereto; Barnett; Johnson; Bonner; Pierre; and Scott, are each charged with one count of wire fraud; and Freeman is charged with two counts of wire fraud. On June 11, Barnett, Freemon, Johnson, and Scott, were arrested in Las Vegas; Acereto and Pierre were arrested in Phoenix, and Bonner was arrested in Richmond, Texas.
If convicted, the maximum statutory penalty is 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
First Assistant United States Attorney Sigal Chattah for the District of Nevada and Special Agent in Charge Christopher S. Delzotto for the FBI Las Vegas Field Office made the announcement.
The FBI Las Vegas Field Office; FBI Phoenix Division; FBI Houston Division; the SBA-OIG; and the Las Vegas Metropolitan Police Department investigated these cases. Assistant United States Attorney Kimberly Frayn is prosecuting these cases.
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.
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 Files Complaint Challenging Virginia Mask Ban and Identification Requirements for Federal OfficersRead the Press Release
WASHINGTON – Today, the Department of Justice filed a lawsuit against the Commonwealth of Virginia, Virginia Attorney General Jay Jones, and Commonwealth Attorney for Fairfax, Virginia Steve Descano challenging their unconstitutional attempt to regulate federal law enforcement officers by criminally prohibiting federal officers from wearing masks, requiring individual identifiers, and functionally banning cooperative 287(g) agreements with numerous local law enforcement agencies dedicated to helping enforce this nation’s laws. Virginia Code, §§ 19.2-83.6:1, 15.2-1726.1.
Not only is the law an illegal attempt to regulate the federal government, but, as alleged in the complaint, the law threatens the safety of federal officers who have faced an unprecedent wave of harassment, doxing, and even violence. Threatening officers with prosecution for simply protecting their identities and their families also chills the enforcement of federal law and compromises sensitive law enforcement operations.
"Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties," said Acting Attorney General Todd Blanche. "Virginia’s anti-law enforcement policies regulate the federal government and are designed to create risk for our agents. These laws cannot stand."
"Governor Spanberger cannot tell Federal officers how to do their job,” said Associate Attorney General Stanley Woodward. "And she certainly cannot prohibit them from ensuring their own safety in conducting Federal law enforcement operations. Our suit today stops those unconstitutional efforts."
"The Department of Justice will steadfastly protect the privacy and safety of law enforcement from unconstitutional state laws like Virginia’s," said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
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 lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in Virginia, New Jersey, and California.
Justice Department Announces Final Settlement in North Dakota v. United StatesRead the Press Release
The United States disputes the District Court’s legal analysis of North Dakota’s claims and of the United States’ defenses under the Federal Tort Claims Act, but acknowledges in hindsight that, under the Obama Administration, the federal government could have done more to reduce the impacts to the people of North Dakota from the Dakota Access Pipeline (DAPL) protests, which at times rose to the level of unlawfulness and confrontational violence.
Therefore, the United States today settled this litigation with North Dakota in the hope that all parties affected by the chaos of the DAPL protests will be able to move forward with some degree of closure. This settlement allows the United States and the State of North Dakota to resolve this matter and continue working together cooperatively in the future.
While freedom of speech and the right to peaceably assemble are bedrock principles in our constitutional order, some of the conduct that took place during the height of the DAPL protests in the summer and fall of 2016 was unlawful and not protected free speech or peaceful assembly. Throughout the DAPL protests, the people of North Dakota endured repeated acts of violence and intimidation by protestors who established encampments on federal property without permission. Vehicles were burned, private property was destroyed, public roadways were shut down, and there were clashes with local law enforcement.
To avoid further escalation of unlawful behaviors, the federal government at the time chose not to forcibly remove the protestors from the encampment on federal property. The United States recognizes that this difficult choice had painful consequences for North Dakota and many of its residents. Under President Trump, the United States is committed to protecting its citizens from lawlessness and violence masquerading as “peaceful” or “mostly peaceful” protests.
Drug Trafficker Sentenced to 53 Months for Conspiracy to Distribute Fentanyl and MarijuanaRead the Press Release
WASHINGTON -- Patrick Thomas, 39, of Hyattsville, Maryland, was sentenced today in U.S. District Court to 53 months in connection with a conspiracy to distribute fentanyl and marijuana, announced U.S. Attorney Jeanine Ferris Pirro.
Thomas, aka Nick Cannon, pleaded guilty on Feb. 19, 2026, to conspiracy to distribute fentanyl and marijuana. In addition to the 53-month prison term, U.S. District Judge Dabney L. Friedrich ordered Thomas to serve three years of supervised release. Federal prosecutors had requested a prison term of 64 months.
According to court papers, beginning at least in October 2023 and continuing through May 2024, Thomas and his co-conspirators traveled multiple times between the Baltimore-Washington area and Los Angeles to obtain large amounts of marijuana for distribution. On one such trip in February 2024, agents intercepted Thomas and his associates at BWI Airport upon their return from Los Angeles and found 54.5 pounds of cannabis packed in vacuum-sealed bags inside a suitcase carried by one of Thomas’s co-conspirators.
Thomas and his co-conspirators sold the marijuana from an apartment in the 1900 block of C Street SE, jointly contributing to the rent. Agents observed daily hand-to-hand drug transactions outside the building.
On Oct. 30, 2024, law enforcement executed search warrants at the C Street SE apartment and at Thomas’s residence in Maryland. At the apartment, agents recovered about six pounds of marijuana, additional narcotics, and numerous small distribution-size packages of marijuana, along with firearms and fentanyl. At Thomas’s Maryland residence, agents found $7,036 in cash and three firearms with ammunition. A search of Thomas’s cell phone revealed a photograph of a large bag of suspected fentanyl pills, which Thomas acknowledged weighed about 20 grams.
Two of Thomas’ co-defendants have been adjudicated in the conspiracy on similar charges. Dnorris Goins, aka “Wizard,” was sentenced April 10 to five years in prison; Ricardo Anton Koonce, aka “Kingphew,” was sentenced June 3 to two years. A third co-defendant, Robert Spriggs, is scheduled for sentencing on June 18.
The investigation was conducted by the Drug Enforcement Administration Washington Division Office and the FBI Washington Field Office.
The matter was prosecuted by Assistant U.S. Attorney Nihar Mohanty and Special Assistant U.S. Attorney Isabelle Sun.
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TD Bank Insider Sentenced to Prison for Accepting Bribes, Laundering Millions to ColombiaRead the Press Release
A former retail banker at TD Bank N.A., Leonardo Ayala, 26, of Homestead, Florida, was sentenced today to two years in prison and three years of supervised release for accepting bribes and facilitating the laundering of more than $5.5 million to Colombia.
According to court documents, Ayala accepted bribes and exploited his position as a retail banker at TD Bank to help launder narcotics proceeds to Colombia. From June to November 2023, Ayala opened fraudulent accounts, issued over 150 debit cards to shell companies, and unblocked debit cards that TD Bank had restricted due to suspicious activity. These bank accounts and debit cards were used to make more than 12,000 ATM withdrawals in Colombia, funneling approximately $5.5 million out of the United States. In exchange, Ayala received more than $6,000 in bribes from his co-conspirators.
Ayala pleaded guilty to a two-count information charging him with conspiring to launder monetary instruments and accepting bribes as a bank employee.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division; U.S. Attorney Robert Frazer for the District of New Jersey; Special Agent in Charge Jenifer L. Piovesan of the IRS Criminal Investigation (IRS-CI) Newark Field Office; and Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) New York Region made the announcement.
The IRS-CI Newark Field Office and the FDIC OIG New York Region investigated the case.
Trial Attorneys D. Zachary Adams and Chelsea Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section and Assistant U.S. Attorney Mark Pesce for the District of New Jersey prosecuted the case.
The Money Laundering, Narcotics and Forfeiture Section’s (MNF) mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.
MNF’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers and employees whose actions threaten the integrity of the individual institution or the wider financial system.
Justice Department Finds University of California Davis Medical School Discriminates Based on Race in AdmissionsRead the Press Release
The Justice Department’s Civil Rights Division announced today that it determined the University of California, Davis School of Medicine (Davis Med), discriminates based on race in its admissions process, violating the U.S. Supreme Court’s 2023 decision in, Students for Fair Admissions v. Harvard (SFFA). The determination follows a six-month investigation by the Department into Davis Med’s admissions practices.
“Davis Med’s actions reflect both unabashed contempt for the rule of law and plain disregard for the potential public health consequences of putting race over merit, skill, and competence,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department will not allow schools to violate federal law without consequence.”
The Department’s investigation found that Davis Med adopted admissions practices with the express purpose of circumventing the Supreme Court’s decision in SFFA, which banned affirmative action in higher education admissions. Documents provided by Davis Med show that its leadership openly boasted about “skirting” the Supreme Court’s ruling by using certain class-based “socioeconomic variables” or “disadvantages” as proxies for race (e.g., family income, parental education, or being from an “underserved area”). To admit more so-called “underrepresented minorities,” Davis Med created the “Davis Scale,” which ranks an applicant based upon perceived “disadvantages” while strategically adjusting the impact of his or her GPA and MCAT scores. The result: in 2024, Davis Med became the third most racially diverse medical school in the country, behind only historically black universities.
The Department’s review of Davis Med’s admissions data from 2023 to 2025 revealed that 93% of white and certain Asian admittees had MCAT scores at or above the average black admittee. It also showed that black and Hispanic applicants were admitted at rates up to six times higher than whites and Asians, despite consistently having, on average, lower academic qualifications.
Davis Med is just one of several medical schools that continue to flout SFFA’s prohibition on race-conscious admissions. Last month, the Department determined that UCLA’s David Geffen School of Medicine and Yale University School of Medicine discriminate based on race in admissions.
The Department will engage in settlement negotiations with any school we’ve determined violated the law to ensure its admissions practices are brought into compliance. If those efforts fail, the Department will sue the schools.
Medical schools receive substantial federal financial assistance and are subject to federal non-discrimination laws. The Department will continue to monitor and ensure their compliance with federal law.
Note: Read the Department’s findings here.
Doctor and Staff Charged with Falsifying Data in Clinical Drug TrialsRead the Press Release
In an indictment unsealed today, a federal grand jury in the Southern District of Florida charged a medical doctor and two staff members of a medical research center for their roles in an alleged scheme to falsify data in clinical trials of prospective new drug treatments. A third staff member was also charged in a criminal information.
According to the indictment, Dr. Jaynier Moya, 49, of Southwest Ranches, Florida, Luis Montano, 55, of Hialeah, Florida, and Yuniarka Garcia, 41, of Plantation, Florida, were charged for allegedly engaging in misconduct in clinical trials conducted at Pines Care Research Center LLC (Pines Care), in Pembroke Pines, Florida. Alexandra Olivera, 38, of Hialeah, Florida, was separately charged in a criminal information with participating in the alleged scheme. As alleged in court documents, Moya co-owned Pines Care and served as principal investigator for the research studies. Montano, Garcia, and Olivera were clinical research coordinators.
Beginning no later than 2019, the defendants allegedly fabricated testing data and falsified other records while conducting clinical trials sponsored by a pharmaceutical development company. The trials were designed to test prospective new drugs to evaluate their safety and efficacy for potential approval by the FDA. As alleged in the charging documents, the defendants falsified records to make it appear that human subjects had taken the study medications and undergone testing to evaluate the study medications’ effects as called for in trial protocols, when, in fact, they had not. The defendants allegedly used identification documents from people — who did not actually participate in trials — to create false records purporting to show those individuals participated and generated test results. The indictment also alleges that the scheme caused the falsified test data to be submitted into the clinical trial database systems used for evaluating prospective new drugs.
Each defendant is charged with conspiracy to commit wire fraud. Moya, Montano, and Garcia are each also charged with three counts of substantive wire fraud. If convicted, each defendant faces a statutory maximum penalty of 20 years in prison for conspiracy to commit wire fraud. Moya, Montano, and Garcia also face a statutory maximum penalty of 20 years in prison per count upon conviction of substantive wire fraud.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Acting Special Agent in Charge Juan Berrios of FDA’s Office of Criminal Investigations Miami Field Office made the announcement.
The FDA’s Office of Criminal Investigations Miami Field Office is investigating the case.
Trial Attorneys Andrew Crawford and Brianna Gardner of the Criminal Division’s Health and Safety Unit are prosecuting the case.
The Health and Safety Unit within the Department’s Criminal Division works with law enforcement partners to investigate and prosecute violations of federal laws designed to protect public health and safety. The unit focuses on corporations and individuals who make and sell dangerous drugs, food, and other consumer products that could cause significant harm to Americans. For more information, see www.justice.gov/criminal/criminal-fraud/health-safety-unit.
An indictment or criminal information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Twenty-Six Trinitarios Gang Members Charged with RICO Conspiracy Related to Five Murders After Homeland Security Task Force EffortsRead the Press Release
Twenty-six alleged leaders, members and associates of the Trinitarios, a violent transnational criminal organization, have been indicted on federal racketeering (RICO) conspiracy charges in connection with five murders and 19 attempted murders, as well as drug trafficking and firearm charges. Over the past two years, the U.S. Attorney’s Office has been relentless in its efforts to dismantle and decimate the Trinitarios in Massachusetts, charging a total of 56 members who are alleged to have committed or participated in 11 murders and 30 attempted murders since 2017. The investigation also resulted in the apprehension of seven illegal aliens from the United States who have either been deported or are currently in deportation proceedings.
“It is safe to say that for far too long the Trinitarios have wreaked havoc and instilled fear in our communities. Murders, attempted murders, kidnapping, witness tampering and extortion. The list goes on and on, but that ends today. Their boldness and hubris are quite frankly astounding. It appears the defendants believed they were immune from prosecution. They were wrong,” said U.S. Attorney Leah B. Foley. “Thanks to the tireless efforts of law enforcement agencies and prosecutors in my office 56 Trinitarios have been taken off the streets and their entire leadership has been decimated.”
“Massachusetts communities are safer today after the arrests of 24 alleged members of the Trinitarios. This deadly transnational street gang has inflicted senseless violence and terror upon our communities – from drug trafficking and gun violence to kidnapping and murder— but we are working tirelessly to hold them to account,” said HSI New England Acting Special Agent in Charge Jeffrey Grimming. “We’re facing more dangerous, more violent, and more complex crime than ever before, but HSI and the Homeland Security Task Force are ready to meet the challenge.”
Group of Trinitarios in Lawrence flashing gang signs, holding green bandannas (referred to as flags), and taking over a local gas station for a music video that was being filmed. Firearms and drugs seized from Trinitarios gang members and associatesThe charges unsealed today are part of a multijurisdictional, multiphase investigation that began in 2024 and, in February 2025, led to federal RICO conspiracy charges against 22 leaders, members and associates of the Lynn Chapter of the Trinitarios and its state leadership. Court documents in that case described the Trinitarios alleged participation in six murders and 11 attempted murders. The investigation began in the aftermath of four murders and a series of
attempted murders and shootings in Lynn, Mass.,, allegedly committed by the Trinitarios.The individuals charged today are alleged leaders, members and associates of the
Firearms and drugs seized from Trinitarios gang members and associates
Lawrence, Haverhill and Boston Chapters of the Trinitarios. Court documents filed today describe the gang’s alleged participation in five murders, 19 attempted murders, efforts to kill witnesses, the trafficking of dozens of kilograms of drugs, extortion of legitimate businesses with the threat of violence, kidnappings and robberies.According to court documents, the Lawrence, Lynn, Boston and Haverhill Chapters of the Trinitarios allegedly dominated their communities by intimidating rival gangs and establishing control over certain neighborhoods. Each individual Chapter allegedly had a “Cabinet” of leaders who were responsible for recruiting new members, providing discipline to members in violation of Trinitarios directives and collecting money for a communal account used to support illegal operations and incarcerated Trinitarios members and their families. It is further alleged that the Trinitarios employed a written “Magna Carta” that defines the structure and rules of the organization, as well as slogans, symbols, colors and practices. The Massachusetts Trinitarios allegedly undertook extensive efforts to recruit new members among communities of legal immigrants and illegal aliens from the Dominican Republic – particularly juveniles in local high schools in Lawrence and Lynn. The gang allegedly appealed to the recruits shared Spanish language and culture, Dominican patriotism and used the appearance of prosperity and brotherhood.
It is further alleged that members were generally initiated into the gang after a period of observation or probation and were often inducted following the completion of a “mission” – which were generally significant acts of violence such as shootings, beatings, or fist fights with rival gang members that were the same age or stature. Upon induction, new members were “blessed” into the organization during a formal ceremony, administered oaths by the State Supreme and awarded ceremonial beaded necklaces. Younger members were allegedly tasked with lesser roles during many violent “missions,” including standing lookout during shootings, holding or concealing weapons on behalf of full members and transporting weapons after a shooting.
Over 600 grams of fentanyl and 200 grams of cocaine, cutting agents, items and paraphernalia used in the manufacturing and packaging process, and three firearms seized from a Trinitarios stash house in Tewksbury.The gang allegedly produced music and music videos featuring Trinitarios pageantry and symbolism; gang members in Trinitarios colors and clothing holding weapons, cash and other items; and lyrics that boasted about the Trinitarios proclivity for violence and the scope of their successful drug distribution operations and other money-making criminal endeavors as warnings and threats to other rival gangs.
In February 2025, federal racketeering charges were unsealed against 22 leaders and members of the Trinitarios. In March 2025, a Lynn member of the Trinitarios was sentenced to 10 years in prison. In June 2025, two members of the Trinitarios were charged with kidnapping a drug supplier. In July 2025, the leader of the Lynn Chapter was sentenced to 14 years in prison. In December 2025, two members of the Lynn Chapter, Michael Miliano and James Jimenez pleaded guilty to racketeering conspiracy. In April 2026, Luis Enrique Santana pleaded guilty. In May 2026, Westyn Lantigua pleaded guilty. In June 2026, Luis Jeffrey Santana pleaded guilty.
The charge of conspiracy to conduct enterprise affairs through a pattern of racketeering activity (also known as “racketeering conspiracy” or “RICO conspiracy”) provides for a sentence of up to life in prison, five years of supervised release and a fine of up to $250,000. The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, supervised release for up to life and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Leah B. Foley; Jeff Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England; Ted E. Docks, Special Agent in Charge, Federal Bureau of Investigation; Jarod A. Forget, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Feld Division; Essex County District Attorney Paul F. Tucker; Massachusetts State Police Colonel Geoffrey D. Noble; Lawrence Police Chief Maurice Aguiler; and Methuen Police Chief Scott J. McNamaramade the announcement. Valuable assistance was provided by the United States Postal Inspection Service; Customs and Border Protections; U.S. Attorney’s Office for the District of New Hampshire; U.S.
Attorney’s Office for the District of Maine; Massachusetts Department of Corrections; Massachusetts Army National Guard – Counterdrug Office; Attorney General’s Office for the State of Maine; New Hampshire State Police; Maine State Police; Maine State Drug Enforcement Administration; Piscataquis County Sheriff’s Department (Maine); Middlesex District Attorney’s Office; Essex County Sheriff’s Department; and the Andover, Boston, Haverhill and Tewksbury Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Boston is comprised of agents and officers from HSI, FBI, DEA, ATF, USMS, IRS-CI, USPIS, DOL-OIG and DSS, as well as several state and local law enforcement agencies, with the prosecution being led by the United States Attorney’s Office for the District of Massachusetts.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Opens Investigation of Philadelphia Police Department’s Allegedly Unconstitutional Permit Revocation PracticesRead the Press Release
Today, the Justice Department opened an investigation to determine whether Philadelphia Police use a vague “good cause” standard to cancel permits to carry legal firearms. The U.S. Constitution’s Second Amendment protects the civil right keep and bear legal firearms — including the right to legally carry firearms where allowed. The investigation focuses on the Philadelphia Police’s permitting system; the investigation does not support any armed obstruction of federal or local law enforcement.
“I have directed the Civil Rights Division, through our Second Amendment Section, to defend law-abiding citizens from local authorities who infringe the right to safely carry legal firearms,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Law-abiding Americans, regardless of where they live, should not have to worry that their city will revoke their means of self-defense.”
It is a violation of the Second Amendment for government officials to use vague, personal discretion when determining whether to issue or revoke permits to carry firearms. In 2008, the U.S. Supreme Court, in its landmark decision District of Columbia v. Heller, held that the Second Amendment protects the right of law-abiding citizens to possess weapons that are in common use for lawful purposes. In 2022, the Supreme Court held, in another case, that permitting officials may not base licensing decisions merely on their personal discretion. Here, it is alleged that Philadelphia Police use just such a discretionary standard to improperly limit Second Amendment rights.
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 Investigates Alleged Race Discrimination at the City University of New YorkRead the Press Release
The Justice Department’s Civil Rights Division announced an investigation today into possible race discrimination by the City University of New York (CUNY). The Division received reports alleging that CUNY’s Black Male Initiative (BMI) provides educational benefits to minorities, particularly black males, on the basis of race.
“Race can never play a role when deciding how to distribute educational resources or opportunities,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Justice Department will not tolerate universities directing educational benefits to certain students over others based on their race.”
CUNY’S BMI is a system-wide program that encompasses recruitment, admissions, student aid, as well as academic support and professional development. The program, as the name suggests, appears to favor select non-white minorities — primarily black males — over applicants of other races.
The Department opened the investigation of CUNY pursuant to Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from discriminating on the basis of race, color, or national origin. CUNY receives substantial federal financial assistance.
The Civil Rights Division has not reached any conclusions about the subject matter of the investigation.
Justice Department Encourages Communities to Apply for Nearly $700M in Grants to Support Law Enforcement Around the CountryRead the Press Release
The Justice Department announced that the Office of Community Oriented Policing Services (COPS Office) has released nearly $700 million in grant Notices of Funding Opportunities (NOFOs) to support law enforcement.
The released NOFOs include the COPS Hiring Program (CHP) and several other grant programs that:
- Support the hiring and retention of sworn law enforcement officers,
- Keep school students safe,
- Promote the health and safety of our nation’s law enforcement personnel,
- Keep communities safe by providing active shooter training, and
- Provide critical technology resources through congressionally designated projects.
“The funding announced today reflects our unwavering commitment to supporting the men and women of law enforcement who keep our communities safe,” said Acting Attorney General Todd Blanche. “By investing directly in law enforcement, we are empowering agencies across the country to respond more effectively to evolving threats. This is another key step in the Trump Administration’s mission to make America Safe Again — and one that will support our nationwide effort to reduce crime in every zip code.”
“These grants will deliver real, measurable impact in communities across the country,” said Associate Attorney General Stanley E. Woodward Jr. “This Administration is committed to strengthening public safety and ensuring accountability to the taxpayer. The Department will make certain that every dollar invested goes directly toward reducing crime and upholding the rule of law. Supporting the heroic work of state, local, and tribal law enforcement is not only an honor, but an essential step forward in our shared mission to keep the American people safe.”
The COPS Hiring Program is intended to reduce crime and advance public safety by providing direct funding to state, local, and Tribal law enforcement agencies for the hiring of career law enforcement personnel in an effort to increase their community policing capacity and crime prevention efforts. Up to $158 million will be available.
The STOP School Violence Prevention Program provides funding to improve security at schools and on school grounds in the grantees’ jurisdictions through evidence-based school safety programs. Up to $73 million will be available.
The Law Enforcement Mental Health and Wellness Act Program provides funding to improve the delivery of and access to mental health and wellness services for law enforcement and their families through training and technical assistance, demonstration projects, and implementation of promising practices related to peer mentoring, access to mental health services and wellness programs. Up to $9 million will be available.
The Preparing for Active Shooter Situations Program provides funding for scenario-based training that prepares officers, deputies, and other first responders to safely and effectively handle active-shooter and other violent threats. This year’s program will train at least 20,000 first responders through scenario-based, multi-disciplinary training classes. Up to $10 million will be available.
The COPS Office Anti-Heroin Task Force Program advances public safety by providing funds directly to state law enforcement to locate and investigate illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids. Up to $34 million will be available.
The COPS Anti-Methamphetamine Program is designed to investigate illicit activities related to the manufacture and distribution of methamphetamine. Funding must be used to locate or investigate illicit activities such as precursor diversion, laboratories, or methamphetamine traffickers. Up to $13 million will be available.
The COPS Technology and Equipment Program provides congressionally designated and directed spending to develop and acquire effective law enforcement equipment, technologies and interoperable communications that assist in responding to and preventing crime. This is not a competitive NOFO and Congress has allocated $400 million for the COPS Technology and Equipment Program.
State and local governmental entities must comply with 8 U.S.C. § 1373, which provides that state and local government entities may not prohibit, or in any way restrict, any government entity or official from sending to, receiving from, maintaining, or exchanging information regarding citizenship or immigration status, lawful or unlawful, of any individual with components of the U.S. Department of Homeland Security or any other federal, state or local government entity. Priority consideration will be given to jurisdictions that cooperate with federal law enforcement to address illegal immigration and coordinate and participate with the Homeland Security Task Force (HSTF).
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing and the Administration’s priority of Making America Safe Again by supporting the nation’s state, local, territorial and Tribal law enforcement agencies through information and grant resources.
For more information on COPS Office NOFOs, please visit https://cops.usdoj.gov/grants.
Justice Department Concludes EEOC Disparate-Impact Guidelines Violate the ConstitutionRead the Press Release
WASHINGTON — The Department of Justice has issued an opinion to the Equal Employment Opportunity Commission (“EEOC”) that its guidelines about disparate-impact liability under Title VII of the Civil Rights Act are unconstitutional. The Office of Legal Counsel found that EEOC’s guidelines pressured employers to engage in racial discrimination. Under those guidelines, employers could be held liable for unequal hiring and promotion outcomes among different groups, without regard to the employer’s likely intent.
The Justice Department’s opinion for EEOC helps to implement Executive Order 14281, which rejected disparate-impact liability insofar as "it creates a near insurmountable presumption [that] unlawful discrimination exists where there are any differences in outcomes in certain circumstances among different races, sexes, or similar groups."
"Despite trying to promote equality, EEOC's disparate impact liability interpretation under Title VII actually fosters the very discrimination its guidelines seek to address," said Acting Attorney General Todd Blanche. "This opinion will now allow businesses to hire based on performance, restoring equal opportunities in the American workplace."
"The EEOC is grateful for the thoughtful and insightful analysis provided by Assistant Attorney General Gaiser and Deputy Assistant Attorney General Craddock regarding disparate impact under Title VII," EEOC Chair Andrea Lucas said. "We believe this opinion will provide clarity regarding the Constitutional limits of disparate impact in employment discrimination matters."
According to the opinion, businesses can use hiring practices that are generally related to job performance—such as aptitude tests, knowledge-based tests, criminal-background checks, and SAT scores—without fear of violating Title VII simply because such practices may result in different outcomes for different demographic groups. To justify using such tools, employers only need to show that the practice is reasonable, useful, or helps serve a valid business purpose.
The opinion also states that people bringing a disparate-impact claim must meet two requirements. They must show that the specific hiring practice directly caused the unequal outcomes they are challenging. And they must identify another approach that would be equally effective for employers but would result in fewer unequal outcomes. This means plaintiffs must prove that the employer’s method specifically caused the unequal outcomes—and offer a workable, fairer alternative.
Read the full opinion here.
California Man Sentenced to Prison for Evading Taxes on More Than $4M Million in Income and Operating Illegal Offshore Gambling BusinessRead the Press Release
A California man was sentenced today to 27 months in prison for tax evasion, operating an illegal gambling business, and money laundering.
According to court documents and statements made in court, Jason Noah Feinman, of Calabasas, California, operated a Costa Rica-based business that, among other things, operated a website used by unlicensed and illegal gambling businesses to facilitate their gambling activities. The website enabled customers of the gambling businesses to place bets through websites the defendant maintained, which is illegal under state and federal law.
Feinman then laundered the cash he derived from his business by exchanging it for checks made out to him or one of his businesses. For example, between May 18, 2018, and January 2, 2024, Feinman gave one of his customers more than $1.5 million in cash; in exchange he received 18 checks payable to him or his businesses for an equivalent amount. Overall, Feinman exchanged between $1.5 million and $3.5 million in cash for checks.
Between 2018 and 2022, Feinman also evaded taxes on income he earned through his illegal gambling business. Despite earning approximately $1.8 million in income in 2020, Feinman reported no taxable income to the IRS on his 2020 tax return and paid no tax for the year. In total, Feinman evaded taxes on approximately $4.2 million in income.
Feinman pleaded guilty to one count each of tax evasion, operating an illegal gambling business, and money laundering.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and First Assistant U.S. Attorney Bilal A. Essayli for the Central District of California made the announcement.
IRS Criminal Investigation and Homeland Security Investigations investigated the case.
Trial Attorneys John C. Gerardi and Charles A. O’Reilly of the Criminal Division’s Tax Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Justice Department Moves to Strip U.S. Citizenship from 17 Naturalized Sex Offenders, Fraudsters, Drug Dealers, and MoreRead the Press Release
The Department of Justice announced today that it filed denaturalization actions in various U.S. district courts against 17 individuals accused of serious offenses—including sexual abuse of a minor, wire and bank fraud, and distributing drugs wholesale without a license.
Under the Immigration and Nationality Act, a naturalized U.S. citizen’s citizenship may be revoked, and certificate of naturalization canceled, if the naturalization was illegally procured or procured by concealment of a material fact or by willful misrepresentation.
“When criminal aliens exploit the naturalization process by breaking the law, there are consequences. Criminal aliens are lying about their past crimes, including drug dealers, sexual predators, and fraudsters. Gaining U.S. citizenship is a privilege and under the steadfast leadership of President Trump, this Department of Justice maintains a zero-tolerance policy for the abuse of this process,” said Acting Attorney General Todd Blanche. “We continue to work around the clock with our interagency partners to make sure U.S. citizenship is granted to those who truly deserve it.”
“American citizenship is a privilege, and it must be earned honestly. If you come here break our laws, and lie in your immigration proceedings, you forfeit that privilege,” said DHS Secretary Markwayne Mullin. “DHS will not stand idly by while Americans are harmed by criminals including sex offenders, perpetrators of fraud, and drug traffickers who have exploited our generosity and gamed our immigration system. We will continue to use every lawful avenue to denaturalize and remove aliens.”
“We will not turn a blind eye to those who unlawfully obtained U.S. citizenship,” Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Anyone thinking they can defraud the naturalization process should think again. We will continue to pursue anyone who unlawfully or fraudulently obtained U.S. citizenship.”
- Leidys Delmas Garcia (Age 54/Cuba): Delmas Garcia is a native of Cuba who was convicted of conspiracy to commit health care fraud. The U.S. seeks an order revoking Delmas Garcia’s naturalization based on her admission in criminal proceedings that she and her co-conspirators established and operated 30 physical therapy clinics in Florida that fraudulently billed commercial insurance provider Blue Cross, Blue Shield approximately $36,728,595 for physical therapy services that were not medically necessary and/or never provided. During her naturalization interview, Delmas Garcia represented under penalty of perjury that she had not committed crimes for which she had not been arrested and that she had never given false or misleading information to any U.S. government official while applying for any immigration benefit. Neither was true.
- Jean Claude Alfred (Age 68/Haiti): The United States filed a denaturalization action against Jean Claude Alfred, a native of Haiti who naturalized as a U.S. citizen in 1994. Beginning in September 1993, approximately one month before filing his naturalization application, Alfred repeatedly sexually abused his minor daughter and continued that conduct during the pendency of his naturalization proceedings. During the naturalization process, Alfred represented in his application and under oath that he had not committed any crime for which he had not been arrested and concealed his ongoing criminal conduct. In 1996, a Florida jury convicted Alfred of attempted sexual battery upon a child in a familial or custodial relationship and lewd, lascivious, and indecent assault upon a child under the age of 16 for Alfred's criminal conduct that began in September 1993, before he naturalized. The denaturalization complaint alleges that Alfred illegally procured his citizenship because he provided false testimony which prevented him from establishing good moral character required for naturalization. The complaint further alleges that Alfred obtained citizenship through the concealment and willful misrepresentation of material facts concerning his sexual abuse of a minor.
- Andrea Marroquin (Age 44/Colombia): Marroquin is the daughter of a major Colombian drug trafficker who inherited his money when he died. She obtained permanent residence in the United States by concealing her bigamous marriage to a United States citizen. Between 2003 and 2011, she conspired to engage in wire and bank fraud and money laundering, using her late father’s drug money to finance fraudulent real estate transactions in Miami, Florida. She became a naturalized citizen in 2009 by concealing her crimes. The United States has brought four claims against Marroquin seeking her denaturalization, including claims she knowingly lied to immigration authorities and lacked the good moral character to become a U.S. citizen.
- Maria Lourdes Montoya (Age 63/Mexico): On June 4, 2026, the United States brought a denaturalization action against Maria Lourdes Montoya, who misrepresented her husband’s identify to secure permanent residence and later citizenship. In support of both her application for permanent residence and naturalization, Montoya represented herself to be the spouse of a U.S. Citizen—Gilberto Montoya. But Montya was never married to Gilberto Montoya, who died decades earlier. Instead, Montoya was marred to Ernesto Orozco-Viramontes, a Mexican national who had assumed the identity of Gilberto. Montoya was aware of her husband’s deception and leveraged it to obtain immigration benefits, including naturalized citizenship. The United States filed a five-count complaint against Montoya seeking to cancel her naturalized citizenship.
- Tahir Lekaj (Age 43/Yugoslavia): Lekaj was admitted to the United States in August 1999 and subsequently obtained permanent residence. When he applied to naturalize in 2004, Mr. Lekaj wrote in his application that he had never committed a crime for which he had not been arrested. He later repeated that claim orally and under oath during his naturalization interview. His application was approved, and he naturalized in May 2005. However, in 2022, the State of Connecticut convicted Mr. Lekaj of two counts of sexually abusing a child under the age of 15 in January 2003. Evidence at trial indicated that the victim was 10 years old when the abuse began. The United States filed a complaint seeking to revoke Mr. Lekaj’s citizenship because he illegally procured his citizenship because he was unable to demonstrate the good moral character required of naturalization because of the sexual abuse. Additionally, Mr. Lekaj is subject to denaturalization because he willfully misrepresented or concealed the sexual abuse while seeking United States citizenship.
- Talman Harris (Age 49/Jamaica): Over an eight-year period, including during his 2012-2014 naturalization proceedings, Talman Harris, a native of Jamaica, conspired to manipulate the price and volume of shares of stock in publicly traded companies, causing more than $54 million to be invested in artificially controlled shares and an ultimate loss to investors of approximately $39 million from the scheme. In 2016, after Harris naturalized, a jury found him guilty of wire fraud and conspiring to commit securities fraud and wire fraud, with his fraudulent wire transfers and the conspiracy occurring during the period in which Harris was statutorily required to demonstrate good moral character to naturalize. The denaturalization complaint against Harris alleges that, during the period in which he was statutorily required to demonstrate good moral character, he committed a crime involving moral turpitude, committed unlawful acts that adversely reflected on his moral character, and falsely testified about his crime. The complaint additionally alleges that Harris willfully misrepresented the material fact of his crimes during his naturalization proceedings.
- Armando Mendoza (Age 39/Mexico): Before Mendoza naturalized, he began knowingly receiving sexually explicit images of minors as early as 2009. In his 2011 naturalization application and interview, however, Mendoza, a Mexico native, claimed that he had never committed a crime or offense for which he had not been arrested. In 2013, after he naturalized, Mendoza pled guilty to the receipt of such images. The denaturalization complaint against Mendoza alleges that, during the period in which he was statutorily required to demonstrate good moral character, Mendoza was precluded from doing so because he had committed a crime involving moral turpitude, committed unlawful acts that adversely reflected on his moral character, and falsely testified about his crime. Additionally, the complaint alleges that Mendoza willfully misrepresented the material fact of his crime during his naturalization proceedings.
- Neeraj Sharma (Age 50/India): Neeraj Sharma, a native of India, was both the owner and chief executive officer of Magnavision LLC, a staffing company located in New Jersey. As an officer of Magnavision LLC, Sharma signed and filed eleven fraudulent H-1B visa petitions with U.S. Citizenship and Immigration Services (“USCIS”). Each petition included false representations that the visa beneficiaries would be employed with a particular global financial institution, and also included letters on official corporate letterhead with forged signatures of the executives. In 2017, Sharma applied for naturalization, and under penalty of perjury, falsely asserted that he had never: (a) committed a crime or offense for which he was not arrested; (b) given any U.S. Government officials any information or documentation that was false or misleading; and (c) lied to any U.S. Government official to gain immigration benefits. Based on these material falsehoods, USCIS approved his application, and Defendant became a U.S. citizen in December 2017. Subsequently, Defendant was convicted of Fraud and Misuse of Visas, in violation of 8 U.S.C. § 1546, with the date of offense between April 25, 2015, through April 27, 2017. The United States seeks to revoke Defendant’s naturalization, pursuant to 8 U.S.C. § 1451(a), as an alien who illegally procured his naturalization by: (1) failing to disclose unlawful acts; (2) providing false testimony; and (3) concealment of a material fact and willful misrepresentation.
- Federico Michel Fermin (Age 54/Dominican Republic): From September 2004 through August 2005, Federico Michel Fermin, a native of the Dominican Republic, conspired with others to distribute more than $1.7 million in prescription drugs wholesale without a license. As part of the criminal conspiracy, Fermin altered drug packaging and caused it to be altered so that the prescription drugs that were distributed to pharmacies would appear to have been purchased from persons who were licensed to distribute them. On May 12, 2011, a jury convicted Fermin of conspiracy to distribute prescription drugs wholesale without a license, in violation of 18 U.S.C. § 371. He was sentenced to 48 months imprisonment. However, during his naturalization process, Fermin represented, under penalty of perjury, that he had never knowingly committed any crime for which he had not been arrested and testified under oath to the same at his naturalization interview. Accordingly, Fermin illegally procured is naturalization as a United States citizen because he misrepresented and concealed facts that were material to determining his eligibility for naturalization.
- Abdikadir Ali Kadiye (Age 54/Somalia): On June 3, 2026, the U.S. Department of Justice and the U.S. Attorney for the District of Minnesota filed a civil denaturalization complaint in District of Minnesota against Abdikadir Ali Kadiye. Beginning in April of 1997, Kadiye sought admission to the United States by filing applications under two separate identities. Kadiye initially sought admission to the United States under the identity Liban M. Degel and he claimed that he was married with no children. After an immigration judge denied his application for immigration benefits, Kadiye submitted a second application under the identity of Abdikadir Ali Kadiye. After his naturalization, Kadiye admitted to a customs and border patrol agent that he had previously used two identities for admission for admission.
- Victor San Shing Kwok (Age 50/People’s Republic of China): On June 4, 2026, the U.S. Department of Justice and the U.S. Attorney for the District of the Northern District of Georgia filed a civil denaturalization complaint against Victor San Shing Kwon in the Northern District of Georgia. In September 1994, Kwok sought admission to the United States under the identity of Xin Cheng Guo. After an immigration judge denied his application for an immigration benefit, Kwok sought admission to the United States by marrying a U.S. citizen. In his application to adjust his resident status, Kwok failed to disclose the prior denial of his prior application for an immigration benefit and his pending order of removal. There is no record that Kwok departed the United States as ordered by the immigration judge.
- Louise Hunkporti (Age 64/Congo): In 1995, Hunkporti applied for and was denied an immigration benefit. When he was denied the immigration benefit, Hunkporti adopted a new identity and submitted a falsified application using the new identity. Hunkporti naturalized as a U.S. citizen on March 2, 2010 under the adopted identity. After USCIS digitized its paper fingerprint cards, the U.S. Department of Justice discovered that the fingerprints Hunkporti submitted when she naturalized matched those she submitted when she applied for the immigration benefit in 1995. The complaint alleges eight counts for her numerous misrepresentations and unlawful acts that adversely reflect her moral character.
- Fernando Cristancho (Age 69/Colombia): Cristancho, an ordained Roman Catholic priest, entered the United States as a religious worker and then used his leadership position in the church to gain access to minor victims. In that capacity, Mr. Cristancho sexually groomed and abused a minor parishioner from when the victim was 11 to 13 years old. Mr. Cristancho later admitted to the crime—and egregious conduct involving other minor victims—and pleaded guilty to one count of coercion and enticement in violation of 18 U.S.C. § 2422(b), resulting in a 22-year prison sentence. The denaturalization complaint filed against Mr. Cristancho charges that he hid his ongoing crime from immigration officials, thereby illegally procuring his naturalization by concealing material facts and willfully misrepresenting his unlawful sexual activity and by his inability to demonstrate the requisite good moral character in support of his application. (Park/Burley)
- Ronnie Price (Age 40/Trinidad and Tobago): Before his naturalization in 2016, 30-year-old Ronnie Price had sexual intercourse with a female who was under 16 – a statutory rape crime to which he eventually pled guilty. During his naturalization proceedings, however, Price claimed he had never committed a crime for which he had not been arrested, he falsely testified to the same, and he concealed facts that would have uncovered his criminal activity. The denaturalization complaint alleges that Price engaged in unlawful conduct during a critical statutory period during which he was required by law to maintain good moral character, that he provided false testimony during his naturalization interview, and that he did so in order to conceal his crimes and willfully misrepresent material facts that would have revealed his ineligibility for the privilege of United States citizenship.
- Rodger George Gurdon (Age 55/Jamaica): Prior to naturalizing in 2011, Rodger George Gurdon, a native of Jamaica, engaged in a conspiracy to steal and resell medical products from military hospitals operated by the Department of Defense. Gurdon likewise engaged in a conspiracy to distribute and possess with intent to distribute at least 100 kilograms of a substance containing marijuana. In 2013, after he naturalized, Gurdon pled guilty to Conspiring to Steal Pre-Retail Medical Products, Interstate Receipt of Stolen Property, and Conspiring to Distribute Marijuana, with the conspiracies occurring during the period in which Gurdon was statutorily required to demonstrate good moral character to naturalize. The denaturalization complaint against Gurdon alleges that, during the period in which he was statutorily required to demonstrate good moral character, Gurdon was precluded from doing so because he had committed unlawful acts that adversely reflected on his moral character, and falsely testified about his crimes. Additionally, the complaint alleges that Gurdon willfully misrepresented the material fact of his crimes during his naturalization proceedings. (McManus/Bic)
- Jheromell Obejera Arcilla (Age 39/Philippines): On Friday, June 5, 2026, the U.S. Department of Justice and the U.S. Attorney for the District of Maryland filed a civil denaturalization complaint in the United States District Court in Greenbelt, Maryland, against Jheromell Obejera Arcilla, a native of the Philippines who, prior to his naturalization, began sexually abusing the 15-year-old daughter of his biological cousin, with whom he lived. The sexual abuse lasted for over a year, during which time Mr. Arcilla successfully naturalized. In 2020, a grand jury indicted Mr. Arcilla on three counts of sexual offenses in violation of the Maryland criminal code, and in 2021, Mr. Arcilla pleaded guilty to one of those counts, sex abuse of a minor. Mr. Arcilla lied about the commission of this crime in connection with his naturalization application. The United States has brought three claims against Mr. Arcilla seeking his denaturalization, including claims that he lacked the good moral character to become a U.S. citizen and that he knowingly lied to immigration authorities.
- Milagros Marileisis Acosta Torres (Age 40/Cuba): Before Milagros Marileisis Acosta Torres naturalized, she was part of a larger conspiracy to defraud a tribal casino in Florida. Her husband and several others stole millions of dollars from the casino by creating false credit vouchers. Acosta Torres subsequently engaged in various financial transactions involving the criminal proceeds to disguise the fact that they were obtained though fraud and to circumvent transaction reporting requirements imposed by federal and state law. But in her naturalization application and interview, Acosta Torres falsely claimed that she had never committed a crime or offense for which she had not been arrested. The denaturalization complaint against Acosta Torres alleges that she is subject to denaturalization because during the period in which she was statutorily required to demonstrate good moral character, she committed unlawful acts that adversely reflected on her moral character and falsely testified about her crime. Additionally, she willfully misrepresented the material fact of her crime during her naturalization proceedings.
These cases were prosecuted by the Justice Department’s Office of Immigration Litigation, with assistance from USCIS, U.S. Immigration and Customs Enforcement, and the U.S. Attorney’s Offices for the Southern District of California, Colorado, Connecticut, Southern District of Florida, Middle District of Georgia, Northern District of Georgia, Maryland, Minnesota, Nevada, and New Jersey.
The claims made in the complaints are allegations only, and there has been no determination of liability.
Justice Department Launches Compliance Review Concerning Gender Ideology in San Francisco Unified School District and Three Additional California School DistrictsRead the Press Release
Today, the Justice Department’s Civil Rights Division launched a compliance review into four California public school districts: Graves Elementary School District, San Francisco Unified School District (SFUSD), Santa Rita Union School District, and Soledad Unified School District (collectively, the California School Districts) regarding instruction on sexual orientation and gender ideology (SOGI) in grades pre-K-12.
“This Department of Justice will not tolerate local school authorities trampling on the rights of parents concerning the education of their children,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Supreme Court’s recent decisions in Mahmoud and Mirabelli have put all school districts on notice: policies that keep parents in the dark about sexuality and gender ideology in the classroom must end now.”
The review will examine whether, and to what extent, the California School Districts have notified parents of their right to opt their children out of such instruction. Under California law, sex education must include SOGI topics. While parental notice and opt-out provisions apply to “all or part of” sex education, SFUSD, for example, has previously advised its teachers that neither parental permission nor notification are required to teach or discuss SOGI topics. Further, SOGI topics appear to be embedded in California’s social studies and history classes. The compliance review will also assess policies that permit access to single-sex intimate spaces (such as bathrooms and locker rooms) and girls’ sports teams based on purported gender identity rather than biological sex.
The review will examine whether the California School Districts, which all receive taxpayer funding, are adhering to Title IX of the Education Amendments of 1972. DOJ will also evaluate whether what actions, if any, the California School Districts have taken in response to the U.S. Supreme Court’s recent decisions in Mirabelli v. Bonta and Mahmoud v. Taylor, which reiterated the nation’s extensive precedents on parental rights.
The Civil Rights Division has not reached any conclusions about the subject matter of the investigation.
Four Abusive Tax Shelter Promoters Found Guilty in $40M Nationwide Tax Evasion SchemeRead the Press Release
A federal jury in the District of Colorado convicted four individuals today of conspiracy to defraud the United States for their operation of an abusive trust tax evasion scheme that caused approximately $40 million in losses to the United States.
“The defendants orchestrated an abusive trust tax scheme designed to help clients evade their tax obligations through a web of sham trusts, false representations, and fraudulent transactions,” said Colin M. McDonald, Assistant Attorney General for the National Fraud Enforcement Division. “Tax fraud schemes undermine the integrity of our tax system and deprive the government of resources, shifting the burden to honest Americans who follow the law. Today’s trial convictions underscore the Fraud Division’s commitment to holding accountable those who promote and profit from abusive tax shelters and other fraud schemes.”
“These defendants were repeatedly warned by attorneys, CPAs, financial professionals, and IRS guidance that this trust-based scheme was illegal, yet they chose to ignore those warnings. Their conspiracy was a deliberate attempt to conceal income and undermine the integrity of our nation’s tax system while lining their own pockets through their lies,” said Amanda Prestegard, Special Agent in Charge, IRS-CI Denver Field Office. “We appreciate the jury’s verdict and the message it sends to those who promote or engage in abusive tax schemes. IRS-CI will continue to partner with DOJ-Tax to pursue these criminal tax evaders.”
According to court documents and evidence presented at trial, Marcia Predmore, Roderick Prescott, Suzanne Thompson and Weldon Wulstein promoted an illegal “layered” trust tax shelter to hundreds of high-net-worth business owners nationwide. The tax shelter was made up of four trusts called a business trust, family trust, charitable trust, and private family foundation. The four promoters taught clients how to use the layered trust tax shelter to evade paying federal income taxes on upwards of 98% of their business profits, in part by claiming a tax deduction for non-deductible personal living expenses and fraudulent charitable contributions. Some of the promoters marketed this tax shelter at seminars hosted across the country and advertised that using the tax shelter would allow clients to “own nothing, control everything.” The tax shelter cost between $25,000 to $50,000 to set up.
Wulstein, a CPA, prepared hundreds of false tax returns for clients who purchased the tax shelter. He did so in partnership with Thompson, who operated a bookkeeping firm and prepared financial statements for the clients’ trusts. Prescott, who had previously been convicted of tax evasion and permanently enjoined from promoting abusive tax shelters, promoted the so-called private family foundation, which was the final layer of the tax shelter. Prescott taught clients how to claim a tax deduction for funds donated to the foundation while maintaining control over those funds for their own personal benefit.
Predmore, a registered life insurance agent, promoted the tax shelter to clients through the business she operated with her spouse. In December 2025, Predmore’s spouse, Timothy McPhee, was sentenced to 151 months’ imprisonment for conspiracy, tax evasion, and wire fraud. Those charges stemmed from his role in this scheme and for his operation of a multi-million-dollar investment fraud scheme called the ROI Cash Flow Fund.
Suzanne Thompson and Weldon Wulstein were also convicted of six counts each of assisting in the preparation of false tax returns for clients who purchased and used the fraudulent tax shelter. Marcia Predmore was convicted of six counts of tax evasion for her personal use of the same tax shelter she promoted to others.
All four promoters each face a maximum penalty of five years in prison for conspiracy to defraud the United States. Thompson and Wulstein also face a maximum penalty of three years in prison for each count of assisting in the preparation of false tax returns. Predmore faces an additional maximum penalty of five years in prison for each count of tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Lauren K. Pope and Patrick Burns 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 Secures Resolution with Cleveland Clinic to End Pediatric “Gender-Affirming Care”Read the Press Release
Today, the Department of Justice announced another resolution arising from its ongoing national investigation into violations of federal law in connection with sex-rejecting procedures on minors (often euphemistically referred to as “gender-affirming care”). The Cleveland Clinic Foundation (“Cleveland Clinic”) has entered into agreements with the Department and the Ohio Attorney General that include a decades-long commitment to not perform or offer sex-rejecting procedures—which includes the administration of puberty blockers and cross-sex hormones—for minors. Cleveland Clinic has also agreed to pay a monetary penalty and, in a landmark commitment, dedicate additional millions to help provide essential medical care for individuals living with the harmful consequences of such misguided medical interventions performed on them as children and adolescents (i.e., “detransitioners”).
“The Department of Justice is steadfastly committed to protecting America’s children,” said Associate Attorney General Stanley Woodward. “Just as the resolution with Texas Children’s, today’s resolution with Cleveland Clinic furthers that commitment and puts these providers on notice that this Department will vigorously enforce federal law where children are put at risk.”
According to the terms of the agreements, which the Department reached in coordination with Ohio Attorney General Dave Yost, Cleveland Clinic—a partner in other Administration priority initiatives—will pay $308,000 to resolve allegations regarding false billings submitted to public and private payors to secure insurance coverage for sex-rejecting procedures on minors. As part of the resolution, Cleveland Clinic has committed $2 million to provide restorative care for detransitioners—the very victims of these predatory and dangerous practices—regardless of their insured status or ability to pay.
The agreements come less than a month after the Justice Department announced its resolution with Texas Children’s Hospital (“Texas Children’s”), which the Department secured through a partnership with Texas Attorney General Ken Paxton. As previously announced, Texas Children’s agreed to pay a $10,000,000 penalty, and, much like Cleveland Clinic’s commitment today, create the first-of-its-kind clinic dedicated to treating detransitioners. Texas Children’s also agreed to permanently cease providing any sex-rejecting procedures to minors.
These historic commitments pair the cessation of these dangerous practices masquerading as medical treatment with substantial investments in remediating the destruction they cause and restoring the health of the victims.
In working towards this settlement, the United States acknowledged that Cleveland Clinic took significant steps entitling it to credit for cooperation with the Department in its investigation. At all times during the investigation, Cleveland Clinic remained cooperative, proactive, and solution-driven, as highlighted by its multi-million dollar commitment to providing care to the victims who most need it.
“I am grateful that institutions like Cleveland Clinic and Texas Children’s have decided to be part of the solution, not part of the problem,” said Brett Shumate, Assistant Attorney General for the Civil Division. “Cleveland Clinic’s commitment to providing millions of dollars towards care for detransitioners is emblematic of just that. I am grateful for this resolution with Cleveland Clinic, but our work is far from over, and our division will continue to work tirelessly to protect America’s children and hold accountable those that have preyed on vulnerable children, whether they be pharmaceutical companies or medical providers.”
These matters and the investigations into sex-rejecting procedures on minors are being led by the Justice Department’s Civil Division Enforcement and Affirmative Litigation Branch and Commercial Litigation Branch, Fraud Section.
The claims resolved by the United States in the settlements are allegations only, and there has been no determination of liability. Cleveland Clinic has denied all allegations.
Justice Department Announces Results of Operation Spring CleaningRead the Press Release
The Department of Justice today announced the results of Operation Spring Cleaning, a nationwide initiative spearheaded by the FBI to combat gang-related threats and enhance public safety. The operation coordinated with federal, state, and local law enforcement and targeted the illegal flow of firearms and narcotics in our communities. The operation began on March 1 and ended May 31.
In total, Operation Spring Cleaning led to over 1100 arrests, over 600 charges filed, and almost 600 search warrants conducted. The operation also resulted in the seizure of:
- Almost 1000 illegal firearms, dozens of which were equipped with machine gun conversion devices (MCDs) as well as over 75 stand-alone MCDs;
- Over 2,700 pounds of illegal narcotics including
- Over 500 kilograms of cocaine or more than 1100 pounds,
- Nearly 700 pounds of methamphetamine,
- Over 550 pounds of marijuana,
- Nearly 50 kilograms of fentanyl or more than 100 pounds,
- Almost 40 kilograms of heroin or more than 85 pounds,
- More than 7 kilograms of crack cocaine or more than 16 pounds, and
- More than 13,200 pills of MDMA, also known as ecstasy or molly.
“When our neighborhoods are safe from the scourge of deadly drugs, individuals and families can prosper,” said Acting Attorney General Todd Blanche. “The Trump Administration has made significant progress in removing this poison from our streets, a key step in our commitment to making America safe again.”
“This FBI understands that communities across our country have been ravaged by gangs and the firearms and narcotics they flood our streets with,” said FBI Director Kash Patel. “Operation Spring Cleaning represents our total commitment to crushing this kind of violent crime and eliminating the criminal networks who facilitate them – with over 1,000 arrests, 1,000 firearms seized, and 3,000 pounds of narcotics removed from our neighborhoods. Righteous operations like this show this FBI is only getting started and will continue delivering the most prolific run of crime reduction in U.S. history.”
Drugs seized by FBI Sacramento Field Office during Operation Spring Cleaning Guns seized by FBI Philadelphia Field Office during Operation Spring Cleaning Guns, drugs, and money seized by FBI Los Angeles Field Office during Operation Spring CleaningChiropractor and Former CEO Pleads Guilty to Filing False Tax ReturnsRead the Press Release
A Puerto Rican chiropractor pleaded guilty today to filing a false tax return related to his use of an illegal tax shelter.
According to court documents and statements made in court, Stuart Bernsen, formerly of Westmont, Illinois, was the former CEO and co-founder of a company that managed a network of over 50 chiropractic clinics across the Midwest. Bernsen paid to establish an illegal tax shelter, which he used to conceal income through a series of abusive trusts and a fraudulent charitable foundation. From 2019 through 2021, Bernsen used this tax shelter to avoid paying nearly $1.3 million in tax.
The tax shelter was designed to make it appear as if Bernsen had permanently transferred to his trusts and charitable foundation his ownership interest of various business entities, including his chiropractic business. In reality, Bernsen maintained control of the chiropractic business and other business entities, and he continued to benefit from the income they generated. Bernsen used the trusts to make various personal purchases, including personal residences, credit card bills, a luxury vacation and a boat. Bernsen also filed false tax returns for the trusts, erroneously claiming that his personal purchases were tax-deductible expenses related to the administration of the trusts.
Bernsen pleaded guilty to one count of willfully filing a false tax return.
Bernsen is scheduled to be sentenced on October 2 and faces a maximum of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Andrew S. Boutros for the Northern District of Illinois made the announcement.
IRS-CI is investigating the case.
Trial Attorneys Boris Bourget and Mahana K. Weidler 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.
National Fraud Enforcement Division’s Healthcare Fraud Unit Secures Six Trial Convictions Involving over $1.1 Billion in Fraud in Under Three Weeks: Convictions Span five Federal Districts & six Distinct Categories of Healthcare FraudRead the Press Release
The Justice Department’s National Fraud Enforcement Division today announced that its Health Care Fraud Unit, one of the most active white-collar litigating components across the Department, secured federal jury trial convictions in six trials in just under three weeks. The convictions in six trials between May 13 and June 1 spanned federal courtrooms across the United States, including in Fort Lauderdale, Los Angeles, Detroit, New York and Nashville.
Six trial convictions in under three weeks ties the Health Care Fraud Unit record for number of trials to result in a conviction in a single month period. The cases behind these recent convictions, however, represent a greater level of sophistication and complexity: more than $1.1 billion in fraud losses across six distinct schemes, including a digital health platform that industrialized Medicare fraud at national scale, a proactive data-driven prosecution of a physician who out-billed every other Medicare provider in the country for Botox, and prosecutions requiring simultaneous command of health care data analytics, financial forensics, sophisticated digital evidence, and expert testimony. These results reflect not merely the volume of trials but the caliber of the Fraud Division’s trial practice that carried each one of them to conviction. The Health Care Fraud Unit has completed nine trials to date in 2026 (all of which have resulted in convictions) and 17 trials in 2025, maintaining an extraordinary pace of white-collar trial activity.
The Health Care Fraud Unit operates through an integrated team model, pairing specialized trial-ready prosecutors with data analysts, investigators, and paralegals who work together from the opening of an investigation through the return of a verdict. Leadership reinforces this specialization and emphasis on trial preparation: specialized Assistant Chiefs for Trials oversee and support trial teams across the country, facilitating trial preparedness and institutional knowledge. The results demonstrated over this period reflect a team of trial lawyers who are prepared to take cases to trial and hold accountable those who defraud our nation’s health care programs and steal from the American taxpayer.
“What sets the Fraud Division apart is not only our ability to proactively detect, investigate and dismantle fraud schemes before they cause further harm, but the depth and skill of the trial lawyers who carry those cases across the finish line. The American people should rest assured that we are prepared to seek accountability at trial for health care fraudsters, whether for a $1 million fraud in Michigan or a $1 billion fraud in South Florida,” said Colin McDonald, Assistant Attorney General for the National Fraud Enforcement Division. “The Fraud Division is providing full-spectrum accountability to any fraudster who seeks to use Americans’ hard-earned savings as their personal piggy-bank.”
United States v. Blackman Trial Conviction (Industrial-Scale Telehealth Platform Fraud, $1 Billion):
Brett Blackman was the founder and CEO of HealthSplash, which owned DMERx, an internet platform that did not facilitate legitimate medicine but instead industrialized fraud. Foreign call centers blasted spam mailers targeting hundreds of thousands of Medicare’s most vulnerable patients, pressuring elderly beneficiaries into accepting medically unnecessary orthotic braces. When patients agreed, DMERx connected the leads to telemedicine companies that took illegal kickbacks in exchange for signing bogus physicians’ orders, orders that falsely certified a doctor had personally examined the patient, when in many cases the doctor never spoke with them at all. The government’s undercover agent posed as a Medicare beneficiary and documented the scheme in real time: a foreign call center pushed the agent into multiple braces, and a DMERx doctor then signed orders claiming to have conducted in-person tests that are physically impossible to perform remotely. To conceal the conspiracy, Blackman and his co-conspirators manipulated physicians’ orders to evade Medicare audits and used sham contracts to disguise kickback flows. All told, the scheme generated more than $1 billion in false billings, of which Medicare paid more than $450 million. Blackman was convicted of health care fraud conspiracy, kickback conspiracy, and conspiracy to defraud the United States. His co-defendant Gary Cox, convicted at a prior trial, was sentenced to 15 years in prison. (Southern District of Florida)
United States v. Mailyan Trial Conviction (Proactive Data Driven Lead for Botox Billing Fraud: Obstruction, Fabricated Records, $45 Million):
This prosecution began not with a witness or a complaint, but with a data anomaly. The Health Care Fraud Unit’s Data Analytics Team identified Dr. Violetta Mailyan as a statistical extreme: she had been paid more by Medicare for Botox injections than any other physician in the United States, collecting more than $24 million over four years, roughly six times the next-highest provider group, all neurologists. What the data predicted, the trial evidence confirmed. Mailyan billed for thousands of Botox injections that were never administered, including while she was on vacation in Cabo, Mexico; Maui, Hawaii; Las Vegas; Pennsylvania; and New York. She billed for a patient who was federally incarcerated at the time of the purported injection. She submitted more than $19 million in claims on days when her clinic was closed. She back-dated claims to bill for injections purportedly provided before patients had even contacted her clinic to request an appointment. When federal investigators closed in and a grand jury subpoena arrived, Mailyan fabricated and back-dated patient consent forms and medical records and delivered the altered documents to agents, adding obstruction charges to the fraud counts. Post-verdict, the jury found a Tesla Model X, a Tesla Cybertruck, brokerage accounts valued at over $7.3 million, and four California properties subject to forfeiture as proceeds of the fraud. (Central District of California)
United States v. Scott Trial Conviction (Home Health Kickback Network: Hospital Nurse Bribed via CashApp, Stolen Patient Identities):
Ruby Scott, a licensed nurse and owner of Delta Home Health Care LLC in Michigan, built her patient pipeline by corrupting a hospital discharge nurse, a relationship she had first cultivated at a prior employer and then carried with her when she launched Delta. The nurse used her hospital access to identify Medicare patients and fax their confidential records to Delta without their knowledge or consent. Scott transmitted over $130,000 in illegal kickbacks to the nurse through CashApp, PayPal, check, and cash. Scott then used those stolen patient profiles to bill Medicare for home health services, falsely certifying that physicians had evaluated and cleared the patients as homebound, when in fact no physician had ever seen them for that purpose. Scott went further, appropriating the identities of real doctors to fabricate the existence of physician certifications those doctors never performed. A witness testified that one patient for whom Delta collected thousands of dollars in payments had never received any services from the company at all. Delta failed to maintain records for over one-third of its billed patients, patients for whom Medicare paid more than $1.2 million. Total losses exceeded $1.6 million. Scott was convicted of five counts of health care fraud, conspiracy, and four counts of paying illegal kickbacks. (Eastern District of Michigan)
United States v. Brown-Arkah Trial Conviction (Substance Abuse Clinic as Narcotics Hub: Narcotics Diversion, Undercover Video, $52 Million):
Tony Brown-Arkah owned American Medical Centers, a Brooklyn clinic nominally offering substance abuse treatment that functioned in practice as a vehicle for drug diversion, kickbacks, and large-scale fraud against Medicare and Medicaid. The clinic lured patients by prescribing Suboxone, a Schedule III narcotic used to treat opioid use disorder that, as a trial witness testified, is commonly abused by prison inmates by boiling the medication and administering it as eye drops, then directed patients who did not want their prescriptions to a van parked on the clinic steps where they could sell them for cash. Prescriptions were signed by a nurse practitioner who lived in Florida and never saw or spoke with patients. Laboratory results showing the absence of Suboxone in patients’ systems, a significant clinical red flag for diversion, were ignored. Brown-Arkah billed Medicare and Medicaid for office visits where he, a non-clinician, was the only person who met with the patient, and for services that were never provided at all. He paid patients cash kickbacks to recruit additional patients and received thousands of dollars monthly from a laboratory in exchange for referring patients to unnecessary testing, concealing those payments through a shell company and sham contracts, and then lying to law enforcement about them. A confidential source captured Brown-Arkah on undercover video offering an illegal cash kickback, during which he described competitors who engage in the same conduct and observed, apparently without self-awareness: “that’s why they go to jail.” Total fraud losses exceeded $52 million across Medicare and Medicaid. (Eastern District of New York)
United States v. Popovych Trial Conviction (Physical Therapy Clinic Kickback Ring: Ambulette Drivers, Coded Texts, Falsified Records)
Olga Popovych managed a network of Brooklyn physical therapy clinics whose patient referral pipeline ran not through physician referrals but through cash payments to ambulette drivers, the operators who transported Medicare patients from their homes to therapy appointments. Popovych was personally involved in distributing the kickbacks and communicated about them with co-conspirators through coded text messages, having suspected law enforcement was watching the clinics. To conceal who was actually providing care, Popovych falsified medical records to indicate that licensed physical therapists had treated patients on days those therapists were not present at the clinic. Between 2018 and 2020, Medicare paid the clinics more than $8 million on the strength of those fabricated records. Evidence at trial also showed Popovych took steps to conceal the scheme when she suspected surveillance, communicating in code with co-conspirators about the payment of kickbacks. After a one-week trial, the jury convicted Popovych of conspiracy to commit health care fraud, conspiracy to make false statements, four counts of health care fraud, and three counts of making false statements relating to health care matters. (Eastern District of New York)
United States v. Marks Trial Conviction (Nurse Prescribed Nearly 1 Million Highly Addictive Opioid Pills to Tennessee Community)
Heather Marks was an Advanced Registered Nurse Practitioner who was licensed by the Drug Enforcement Agency (DEA) to distribute controlled substances. Marks prescribed controlled substances to patients seeking pain treatment at Lifeforce Pain and Wellness (Lifeforce), a pain clinic located in Carthage, Tennessee. Lifeforce was a small, rural clinic that purported to provide pain treatment. Marks and others overprescribed highly addictive opioids, including oxycodone and oxymorphone, to Lifeforce patients from September 2016 through May 2018. Marks herself prescribed nearly a million opioid pills to almost 1,000 Lifeforce patients over the course of the conspiracy. These patients were often addicted to illegal drugs and the opioids Marks and others prescribed to them at Lifeforce. Marks ignored obvious signs of Lifeforce patients taking illegal drugs at the time she prescribed them opioids, which put these patients in danger of overdosing. Marks further prescribed opioids to Lifeforce patients who she knew were likely selling the opioids on the street. Lifeforce patients would often travel hundreds of miles to obtain opioid prescriptions at Lifeforce because they knew Marks would prescribe the opioids they needed to either abuse or sell on the street. The jury convicted Marks of conspiracy to illegally distribute controlled substances and eight counts of illegally distributing controlled substances. (Middle District of Tennessee)
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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.
Since March 2007, the National Fraud Division’s Health Care Strike Force program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. 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 Expands Admissions Investigations into 15 Additional Medical SchoolsRead the Press Release
The Justice Department’s Civil Rights Division announced today that it opened fifteen new investigations into potential race discrimination in medical school admissions. The Division recently announced its findings that the University of California at Los Angeles (UCLA) and Yale University both illegally used race in medical school admissions.
“Many of America’s top medical schools appear more concerned about the demographics of their incoming classes than training students to succeed in the profession,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “Under this Justice Department, we will continue to protect American students from discriminatory and illegal preferences in admissions — especially in professions as critical as medicine, where quality of training should be the top priority.”
The Division opened the investigations to enforce compliance with federal law and ensure the students become doctors based on their merit, not their race. Each of the fifteen schools under investigation receives millions of dollars in federal taxpayer funding. The investigations will examine whether these medical schools follow Title VI of the Civil Rights Act as interpreted by the U.S. Supreme Court’s decision in Students for Fair Admissions, Inc. v. President & Fellows of Harvard College.
The Civil Rights Division has not reached any conclusions about the subject matter of the investigations.
Guam Prison Inmate Sentenced to Life in Federal Prison for Drug Trafficking; Co-Conspirators Receive Federal SentencesRead the Press Release
Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the following defendants were sentenced in the District Court of Guam:
Edward Glen Demapan, age 54, from Guam, was found guilty after a jury trial on November 19, 2025. He was sentenced on June 3, 2026, in the U.S. District Court of Guam to life imprisonment for Conspiracy to Distribute 50 or More Grams of Methamphetamine and Attempted Possession with Intent to Distribute 50 Grams or More of Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The Court also imposed five years of supervised release and a $200 mandatory special assessment fee.
Allan Dale Bernal, age 53, of Dededo, pleaded guilty and was sentenced on June 4, 2026, to 108 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). He was also ordered to serve five years of supervised release and pay a $100 mandatory special assessment fee.
Zerxes Jabidando Viva, age 47, of Dededo, pleaded guilty and was sentenced on March 10, 2026, to 63 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1). He was also ordered to serve five years of supervised release, 100 hours of community service, and pay a $100 mandatory special assessment fee.
Liana Joelene Cabrera, age 43, of Houston, Texas, pleaded guilty and was sentenced on April 2, 2026, to 180 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Unlawful Use of the Mail to Distribute the Proceeds of Drug Trafficking, in violation of 18 U.S.C. § 1952(a)(1). She was also ordered to serve five years of supervised release, 100 hours of community service, and pay a $200 mandatory special assessment fee.
Federal court documents describe how Demapan—already serving a life sentence for aggravated murder in local court—built and directed a sophisticated methamphetamine trafficking network from inside the Guam Department of Corrections. Working with Texas‑based co‑conspirator Cabrera and multiple Guam‑based associates, Demapan coordinated the shipment of methamphetamine to Guam and the return of drug proceeds to Texas. As part of the investigation, federal law enforcement seized a mail parcel containing $80,160 in cash and several additional parcels containing over fourteen pounds of methamphetamine.
Investigators discovered that, while incarcerated, Demapan obtained cell phones, chargers, controlled substances, and drug paraphernalia. Outside the prison, he maintained a network of individuals and addresses to receive drug parcels and carry out his instructions. Testimony revealed that Demapan enforced his authority through intimidation; co‑conspirator Viva stated he feared for his own safety and that of his family.
Despite spending nearly 30 years in prison, Demapan continued to engage in criminal activity. Authorities recovered a substantial cache of contraband from his cell—evidence of long‑term illicit operations—and additional items even after he was moved to a more secure housing unit. The three intercepted drug parcels represent only a portion of the broader trafficking scheme involving Cabrera and other associates.
“This case ends Demapan’s lengthy history of drug trafficking,” stated United States Attorney Anderson. “Federal and territorial agencies are now working to transfer him off island to a federal facility, far away from our communities and his drug den at Guam DOC. We expect prisons to be drug free. Where reality is otherwise, we will take aggressive enforcement action.”
“This hardened drug criminal was intent on continuing a life of crime, even while behind bars. Despite prior convictions, Edward Demapan instinctively relapsed,” said, Anthony Chrysanthis, Special Agent in Charge of the Drug Enforcement Administration Los Angeles Field Division, which oversees Guam. “With the help of co-conspirators, he managed to run a sophisticated drug trafficking operation from inside prison. But today’s sentencing should serve as a reminder that you can’t outsmart the justice system. You will be held accountable for your crimes, irrespective of location or jurisdiction.”
“The U.S. Postal Inspection Service protects our communities by keeping illegal drugs out of the mail and bringing traffickers to justice,” said Stephen Sherwood, Postal Inspector in Charge of the San Francisco Division. “I want to thank the members of the Guam Interdictions Anti‑Narcotics Trafficking Task Force (GIANT TF)—including the Guam Customs and Quarantine Agency, the Guam Police Department, and the Guam Army National Guard Counterdrug Program. I also extend my appreciation to the U.S. Attorney’s Office for the District of Guam and our federal law‑enforcement partners for their invaluable teamwork in this case.”
This investigation was conducted by the Drug Enforcement Administration Guam Resident Office, U.S. Postal Inspection Service, U.S. Marshals Service, and assistance from the Guam Police Department Special Investigations Section.
Assistant U.S. Attorney Benjamin K. Petersburg prosecuted these cases in the District of Guam.
This case is part of Operation Take Back America a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
Fraud Division Announces Federal–State Partnership in Ohio to Prosecute FraudRead the Press Release
The Justice Department today announced unprecedented federal and state cooperation in Ohio in the fight against fraud, including partnerships and a data sharing agreement to enhance the detection and prosecution of fraud; federal and state charges against 9 defendants for their alleged participation in over $42 million in fraud; orders of detention this week for three defendants, with two additional defendants pending extradition in connection with an additional $15 million in fraud; and the creation of the FBI’s Most Wanted Fraudsters list. The charges announced today involve numerous types of fraud, including health care fraud, government program fraud, and consumer fraud schemes.
“Ohio is leading the charge in the fight against fraud, and some states should take notice,” said Acting Attorney General Todd Blanche. “Working closely with Ohio officials, the Department of Justice dismantled a sophisticated Medicaid fraud scheme that exploited taxpayers to fund exotic cars and lavish lifestyles. By holding these fraudsters accountable and partnering with the FBI on a robust Most Wanted fraudster list, we are pursuing fraud more aggressively than ever. No fraud scheme is beyond our reach.”
“The Fraud Division is building a replicable model to combat the full range of fraudsters that are preying on Americans across the country,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division. “Whether its health care, emergency relief funds, or consumer frauds, fraudsters go where the money flows, and with our enhanced data analytics tools, dedicated prosecutors, and federal and state partners, the days of oversight lagging and accountability lacking are now over.”
“As the cases announced today demonstrate, my Office will aggressively prosecute all forms of fraud by leveraging strong relationships with our federal and state partners,” said U.S. Attorney for the Southern District of Ohio Dominick S. Gerace II. “In establishing the Southern District of Ohio Fraud Task Force, we have now reinforced those partnerships by formalizing our processes and injecting an even greater sense of urgency into our efforts to hold fraudsters accountable for pilfering taxpayer resources.”
“The days of deception are over. As the stewards of your tax dollars, if we find evidence of willful and deliberate abuse of government programs, we will investigate and prosecute those individuals responsible to the full extent of the law,” said U.S. Attorney David M. Toepfer, for the Northern District of Ohio. “We also commit to protecting our elderly who are so often targeted by conniving and scheming fraud rings who use scams that are deliberately designed to drain them of their life savings. With the full resources of this federal and state partnership, we are determined to rein in rampant fraud and bring criminals to justice.”
“Today’s takedown of multiple healthcare companies and four individuals who allegedly robbed taxpayer funded Medicaid is the latest victory in the Trump administration’s total war on fraudsters,” said FBI Director Kash Patel. “Together with our interagency partners we seized 7 bank accounts worth $600,000 and 14 vehicles worth millions - all of which allegedly came as direct proceeds from robbing value community healthcare resources from Americans who needed it - many of which were Medicaid enrolled children. Furthermore, today we are launching the Vice President’s historic initiative of the “Most Wanted Fraudsters” list, representing some of the alleged worst of the worst who stole millions in taxpayer money - allowing federal law enforcement to mobilize the full weight of law enforcement to bring these individuals and more to justice. I want to thank Vice President Vance for his leadership of this task force, our interagency partners for their relentless work, and most importantly thank President Trump for showing America that fraud won’t be tolerated in this country any longer.”
“These cases demonstrate that the days of fraudsters hiding behind shell companies, complex billing schemes, and other silos are coming to an end,” said CMS Administrator Dr. Mehmet Oz. “By bringing together federal and state law enforcement, advanced data analytics, and unprecedented information sharing, we are building a national fraud-fighting model that identifies bad actors faster, protects taxpayer dollars, and safeguards the integrity of programs millions of Americans rely upon.”
Building a National Model of Federal-State Cooperation
In connection with these fraud enforcement actions, the Fraud Division, U.S. Attorneys’ Offices, Ohio Medicaid Fraud Control Unit, and other partners announced the inaugural Fraud Division–State Partnership Roundtable in Ohio and the following innovative steps to enhance federal–state cooperation to detect, investigate, and prosecute fraud:
- The Fraud Division and the Ohio Secretary of State announced a data sharing agreement that provides the Fraud Division access to corporate registrant data held by the State of Ohio. Among other things, such data will be used in proactive data analysis to quickly identify ownership links between clinics, labs, and billing entities that fraudsters use to obscure control over health care fraud and other fraud schemes.
- The Ohio Attorney General’s Medicaid Fraud Control Unit and the Ohio Auditor’s Office has served as a model for state and federal partnerships, and has reaffirmed its commitment to continue to (1) cross-designate or detail prosecutors to the Fraud Division’s Health Care Fraud Strike Forces and U.S. Attorney’s Offices, as they did in prosecuting one of the cases announced today, (2) deconflict with federal partners on new Medicaid fraud investigations monthly to ensure state-federal coordination, and/or (3) participate in national initiatives in coordination with the Department of Health and Human Services Office of the Inspector General.
- The Centers for Medicare & Medicaid Services (CMS) are working with Ohio to identify Medicaid fraud and refer any appropriate criminal matters to the Fraud Division through CMS’s participation in the Health Care Fraud Data Fusion Center.
These steps demonstrate how state and federal partners can work together to strengthen fraud detection, share information, and accelerate enforcement efforts nationwide. The inaugural Fraud Division–State Partnership Roundtable included, alongside the top leadership of the Department of Justice and federal law-enforcement and public health agencies, Ohio Attorney General Dave Yost, Ohio Secretary of State Frank LaRose, Ohio Treasurer Robert Sprague, Ohio Auditor Keith Faber, and Ohio Department of Public Safety Director Andy Wilson. The Department encourages every state across the country to partner with the Fraud Division on similar efforts.
Behavioral Health Fraud
In the Southern District of Ohio, four defendants were charged in connection with an over $30 million behavioral health scheme. Two defendants owned and operated behavioral health services organizations that claimed to provide therapeutic behavioral services and psychotherapy to children and young adults attending summer camps, church groups and recreational programs. As alleged, the defendants conspired to submit false and fraudulent claims for services that were medically unnecessary and not provided as represented. After one company failed to renew its credentialing with the Ohio Department of Mental Health and Addiction Services and was no longer able to submit claims for mental health services to Medicaid, the defendants then allegedly conspired with a co-defendant to continue submitting the fraudulent claims through a different entity. In connection with these charges, the Department seized three bank accounts with $469K in funds and 14 vehicles worth $800K, including six Mercedes Benz, a Bentley, a BMW, a Jaguar, a Maserati, two Land Rovers, a GMC, and a McLaren.
The case is being investigated by HHS-OIG, the FBI, and Ohio’s Medicaid Fraud Control Unit. Assistant United States Attorneys Kenneth F. Affeldt and Justin Sheridan and Special Assistant United States Attorneys Brian Walter and Jonathan Metzler from Ohio Attorney General Dave Yost’s Office are prosecuting the case.
In Butler County Common Pleas Court, Robert Haley, 63, of Cincinnati, was charged by indictment with an over $12 million scheme to fraudulently bill Medicaid for therapeutic behavioral services that were not actually provided to children in Butler County after-school programs. The case is being prosecuted by Ohio’s Medicaid Fraud Control Unit in Butler County Common Pleas Court.
Government Program Fraud
In the Southern District of Ohio, four defendants were charged in a conspiracy scheme to defraud the government out of more than $1.4 million in Covid-19 relief funds. The defendants allegedly submitted fraudulent Paycheck Protection Program (PPP) loan applications on behalf of businesses, including health care providers, and applications for forgiveness to the Small Business Administration (SBA), prompting the SBA and its lenders to approve the loans and ultimately forgive the entire amount of each loan. Defendants allegedly provided false information on their PPP loan applications, claiming their businesses generated more than $100,000 in gross income for the 2019 tax year, submitted a fraudulent 1040 Schedule C with their applications, and misused the proceeds on personal expenses.
The case was investigated by SBA-OIG and VA-OIG. Assistant United States Attorney Liz McCormick and Special Assistant United States Attorney Dwight Keller are prosecuting the case.
Consumer Fraud
In the Northern District of Ohio, Jamal Abubakari, aka Jamal Abubakar, aka Arrangement, 22, of Accra, Ghana; Kamal Abubakari, aka Kamal Abubakar, aka Lancaster, 22, of Accra, Ghana; and Amanda Joy Opoku-Boachie, aka Amanda Joy Glum, aka Amanda Joy Kessei Bierman, 53 were ordered detained this week in connection with an over $15 million romance scam that defrauded over 130 victims across the United States. Frederick Kumi, aka Emmanuel Kojo Baah Obeng, aka Abu Trica, 31, of Swedru, Ghana; and Daniel Yussif, aka Denteni, aka Slab, 31, of Accra, Ghana, are awaiting extradition.
According to allegations in the three indictments, from about July 2024 to April 2026, the defendants targeted older Americans on dating websites and social media platforms to engage in romance fraud schemes. They employed advanced techniques including artificial intelligence-driven video platforms to engage victims under fictitious female personas. After being misled by false stories, the victims sent money via wire transfer to financial accounts controlled by conspiracy members, which were further transferred to co-conspirators in Ghana and elsewhere. The operation involved search and arrest operations in Ghana – assets seized are estimated to amount to over $3 million and include a Lamborghini, Tesla Cybertruck, Mercedes Benz, and BMW.
This investigation highlights the successful collaboration between numerous international and national partners, including the Ghana Attorney General’s Office; Economic Organized Crime Office (EOCO); Ghana Police Service (GPS); Ghana Cyber Security Authority; Ghana Narcotics Control Commission (NACOC); Ghana Financial Intelligence Centre; Ghana Immigration Service; Ghana National Intelligence Bureau; DEA’s Sensitive Investigations Unit; Department of Homeland Security’s Homeland Security Investigations and Customs and Border Protection; U.S. Department of Justice’s Office of International Affairs; U.S. Department of State; FBI Washington Field Office; and FBI Legal Attaché Office in Accra. The Department of Justice remains committed to dismantling complex international cyber fraud networks and protecting U.S. citizens from financial exploitation. Assistant United States Attorneys Brian McDonough and Elliot Morrison of the U.S. Attorney’s Office for the Northern District of Ohio are prosecuting the case.
FBI Most Wanted Fraudsters List
To enhance the fight against health care fraud, program fraud, and other fraud schemes, the FBI today announced the “Most Wanted Fraudsters” program to publicize fugitive fraudsters. The FBI recognizes the need for public assistance in tracking fugitives. Apprehensions off of the “Ten Most Wanted Fugitive” have been the result of citizen recognition of “Ten Most Wanted Fugitive” publicity. The FBI, Department of Justice, and other law enforcement partners are committed to using every means available to apprehend the Most Wanted Fraudsters.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Statement from the Civil Division on U.S. District Court Ruling in Rhode IslandRead the Press Release
The Civil Division issued the following statement on a recent ruling in the District of Rhode Island:
“Department of Justice attorneys are properly held to the highest standards of ethical conduct. In a May 13, 2026 order, the U.S. District Court for the District of Rhode Island accused Civil Division attorneys of misrepresenting or withholding information in litigation concerning certain administrative subpoenas.
“Such accusations against Department attorneys are rare and serious. The Department treats them accordingly and is committed to taking all appropriate remedial action where warranted.
“The Civil Division has thoroughly reviewed the District Court’s allegations and concluded that they are without merit. Our attorneys did not misrepresent facts, withhold relevant information, or otherwise mislead the Court. The Department stands behind its attorneys without reservation and has appealed the District Court’s erroneous order.”
Maryland Woman Pleads Guilty to $1.1M Tax Refund Fraud SchemeRead the Press Release
A Maryland woman pleaded guilty yesterday to attempting to steal more than $1.1 million in government funds by filing false tax returns with the IRS.
According to court documents and statements made in court, between December 2019 and March 2020, Kendra Scarborough, of Oxon Hill, Maryland, filed three false tax returns in the names of purported trusts that she controlled. In total, these tax returns sought more than $1.1 million in refunds that the trusts were not entitled to receive. Scarborough’s scheme resulted in the IRS issuing a refund of $412,000 to one of the purported trusts. Scarborough used these funds to pay for, among other things, the mortgage on her personal residence.
Scarborough pleaded guilty to one count of theft of government funds. She is scheduled to be sentenced on Sept. 9 and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 Attorney Melissa Siskind of the Criminal Division’s Tax Section is 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.
Making America Safe Again: DOJ to Award $300 Million to Model Cities Dedicated to Restoring Law and OrderRead the Press Release
The Justice Department today announced the Model Cities Initiative (MCI), a whole-of-city approach directing nearly $300 million in federal funding to transform public safety in America’s cities. Through this initiative, two to four cities will be selected to receive awards supporting the implementation of comprehensive and innovative strategies to reduce crime, restore law and order, and enhance public safety. Proposals from qualifying cities are due September 1.
“This administration is leveraging every authority to ensure the safety of all Americans,” said Acting Attorney General Todd Blanche. “The Model Cities Initiative will supercharge our law enforcement partners and restore the rule of law to America’s neighborhoods, towns, and cities. Our message is clear: We will help those who help us Make America Safe Again.”
Investments will be made in a variety of areas addressing public safety, behavioral health, and related staffing, equipment, and services with the goal of leveraging federal resources to build capacity, strengthen accountability, and deliver measurable reductions in crime that can serve as a model of innovation for replication nationwide. Eligible applicants include local government entities serving a population of at least 100,000.
The MCI initiative will support a range of allowable activities, including:
- Hiring and retention of sworn and non-sworn personnel directly engaged in or supporting violent crime reduction efforts.
- Purchase or lease of equipment, tools, or technology that reduce crime and restore law and order including but not limited to real-time crime centers; forensic and DNA tools; body-worn cameras; license plate readers; artificial intelligence systems; small unmanned aircraft systems (UAS) and counter-UAS; ballistic identification systems; and information technology upgrades.
- Training and professional development that support intelligence-led policing, violent crime investigations, crisis response, correctional practices that strengthen reentry outcomes, and coordination with state and federal law enforcement partners.
- Facility Costs including lease, rental, or renovation expenses for space directly used in program operations, such as service delivery sites, training facilities, real-time crime centers, or intelligence analysis centers.
- Mental health and substance use services that directly support prevention, crisis response, screening and early intervention, treatment, case management, and related services addressing issues linked to public safety outcomes, including services provided in correctional facilities and in the community.
- Reentry, transitional support, and recidivism reduction programs and services designed to reduce repeat offending, support transitions from custody, and promote successful reintegration into communities, including operational costs for county jails and state prisons that support reentry preparation.
- Victim services for American victims of crime, including, emergency assistance, case management, shelter and temporary housing, medical and dental care, advocacy, transportation, childcare, legal services, and employment assistance.
- Youth crime prevention and intervention services that address risk factors for juvenile delinquency and violence, including gang intervention and suppression programs.
Cities will apply through a whole-of-city approach. That means that city leaders, including the mayor, sheriff, county prosecutor, and others will work together to submit one application that proposes a persuasive vision of how this money can be awarded strategically throughout their city to improve law enforcement engagement, victim services, detention and reentry services, and preventive programs.
Additional information about the award is available at www.justice.gov/grants. The planned competition is a multi-phase process. DOJ anticipates making initial award decisions in late 2026. To apply for this award, please submit application materials to [email protected].
For any questions related to the MCI Call for Applications, you can send your inquiry to [email protected].
Justice Department Launches Title VI Investigation into DEI Programs at Arizona State UniversityRead the Press Release
The Justice Department’s Civil Rights Division announced today that it launched an investigation into diversity, equity, and inclusion practices at Arizona State University (ASU). Recent viral videos indicating ASU denied equal treatment to students based on race, color, or national origin — while attempting to hide its discriminatory practices from federal scrutiny — prompted the investigation.
“No student should be denied access to opportunities or resources because of race, color, or national origin,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The United States is committed to keeping universities free of unlawful discrimination — especially when they try to hide illegal conduct to avoid oversight and compliance.”
Federal law requires colleges and universities that receive federal funding to open their doors to students on an equal basis, regardless of race, color, or national origin. ASU is one of the nation’s largest universities and is a major recipient of federal funds. The Division’s investigation will examine whether ASU subjects its students to illegal discrimination through its DEI policies in admissions, recruitment, scholarships, tutoring, and the provision of educational support.
The Civil Rights Division has not reached any conclusions about the subject matter of the investigation.
Four Illegal Alien Tren de Aragua Members Plead Guilty to Double Murder in 2024Read the Press Release
Four members of the designated foreign terrorist organization Tren de Aragua (TdA), Keiber Jaen Martinez, also known as “Keybe,” Samuel Gonzalez Castro, also known as “Klei” and “Kley,” Eferson Morillo-Gomez, also known as “Jefferson,” and “Efe Trebol,” and Keineyer Ibarra-Mujica, also known as “Keiner” each pleaded guilty today before U.S. District Judge Denise L. Cote for the Southern District of New York to two counts of murder through the use of a firearm and one count of using a firearm in furtherance of a crime of violence, in connection with their participation in the May 24, 2024, murders of Claretha LaQuesha Daniels and Justin Lawless and the non-fatal shooting of a third victim (“Victim-3”), all of whom were unarmed American citizens and residents of New York City.
A fifth codefendant and member of TdA, Jarwin Valero-Calderon, also known “La Fama,” pleaded guilty last week to one count of racketeering conspiracy and one count of using a firearm in furtherance of a crime of violence, in connection with his participation in, among other crimes, a September 30, 2024, gunpoint carjacking in New York City. Three additional codefendants previously pleaded guilty to other offenses and have been sentenced. All eight in-custody defendants charged in the TdA prosecution before Judge Cote have now been convicted.
“Thanks to the hard work of our law enforcement partners and prosecutors, these four Tren de Aragua gang members will now face justice for their part in the ruthless and senseless murders of two Americans and the attempted murder of a third person in the Bronx two years ago,” said Acting Attorney General Todd Blanche. “As a former Assistant U.S. Attorney who prosecuted violent crimes and gangs in the Bronx, this case hits home for me. Tren de Aragua is a terrorist organization with no place and no future in the United States, and this Department of Justice will not stop until we have rooted out, dismantled and destroyed them.”
“I’m thankful that the victims and their families finally get the justice they deserve,” said U.S. Department of Homeland Security (DHS) Secretary Markwayne Mullin. “Tren de Aragua is one of the most vicious gangs on planet earth. They rape, maim, and murder for sport. Under President Trump’s leadership, we are targeting and removing gang members from our communities and ensuring those that committed crimes in our country face justice.”
“As they have now admitted, these four members of Tren de Aragua entered the United States illegally and then brutally murdered Claretha LaQuesha Daniels and Justin Lawless on May 24, 2024, in the middle of a residential street in the Bronx, which resulted in another victim being shot and injured,” said U.S. Attorney Jay Clayton for the Southern District of New York. “This recent Memorial Day Sunday marked a tragic date: two years to the day that Ms. Daniels and Mr. Lawless lost their lives. We extend our deep condolences to the family members of these victims and hope that today’s guilty pleas bring some measure of comfort to them. We are committed to investigating and charging all members of TdA who illegally entered this country and then flooded the streets of New York City with guns, drugs, sex trafficking, and violence. That is what New Yorkers want and deserve, and we will do everything we can to deliver it for them.”
“Although TdA started as a prison gang in Venezuela, it became a transnational criminal organization and foreign terrorist organization that gained a foothold in many cities in the United States, including New York City,” said Director Jacob Warren of Joint Task Force Vulcan. “As they have now admitted, these four TdA members killed two unarmed American citizens in the Bronx during a brutal shooting on a public street, and they will finally be held accountable for their crimes. This case is directly in line with JTFV’s mission: a collaborative, whole-of-government, and nationwide effort to totally eliminate TdA. To date, we have charged over 260 members and associates of TdA as part of these efforts. We are grateful for the ongoing partnership with the U.S. Attorney’s Office for the Southern District of New York, and our law enforcement partners who worked tirelessly to investigate this case.”
“The NYPD will not allow violent gangs to terrorize our streets and threaten our communities,” said New York City Police Department (NYPD) Commissioner Jessica S. Tisch. “These defendants, members of Tren de Aragua, viciously took two lives and shot a third victim, but thanks to our multi-agency investigation, they are now being held accountable. I thank the NYPD investigators and our federal law enforcement partners for their tireless efforts in this case. Together, we will continue to take down gangs, remove guns from our streets, and keep our neighborhoods safe.”
According to the allegations contained in the superseding information and other public filings in this case: TdA is a criminal organization that operated throughout New York City, including the boroughs of the Bronx and Queens, as well as internationally in Venezuela, Peru, and elsewhere. The purposes of TdA included:
- Preserving and protecting the power and territory of TdA and its members and associates through acts involving murder, assault, robbery, other acts of violence, and threats of violence, including acts of violence and threats of violence directed at former members and associates of TdA who associated with a splinter organization known as Anti-Tren.
- Enriching the members and associates of TdA through, among other things:
- The unlawful smuggling of individuals, including young women from Venezuela, into Colombia, Peru and the United States;
- The sex trafficking of young women (whom members and associates of TdA often refer to as “multadas”) who had been unlawfully smuggled into Peru and the United States;
- The trafficking of controlled substances, including a mixed substance called “tusi” that contains ketamine; and
- Armed robberies, including carjackings.
- Keeping victims and potential victims in fear of TdA and its members and associates through threats and acts of violence.
- Promoting and enhancing TdA and the reputation and activities of its members and associates.
- Providing assistance to members and associates of TdA who committed crimes for and on behalf of TdA, such as lodging and interstate transportation for members and associates of TdA to flee prosecution.
- Protecting TdA and its members and associates from detection and prosecution by law enforcement authorities through acts of intimidation, threats, and violence against potential witnesses to crimes committed by members of TdA.
Members and associates of TdA transported young women, again often referred to by members and associates of TdA as “multadas,” from Venezuela into Peru and the United States in exchange for debts that the young women would pay back to TdA by engaging in commercial sex work. Members of TdA enforced compliance among these young women by, among other things:
- Shooting or killing young women,
- Threatening to kill the young women and their families,
- Assaulting the young women, and
- Tracking down and kidnapping the young women who tried to flee.
Members of TdA also committed and conspired, attempted, and threatened to commit, acts of violence, including acts involving murder and assault, to protect and expand TdA’s criminal operations; resolve disputes within TdA; to retaliate against rival organizations, including Anti-Tren; and to maintain control over sex trafficking victims. TdA members and associates also trafficked controlled substances, committed robberies, and obtained, possessed, trafficked, and used firearms and ammunition.
On May 24, 2024, TdA members Jaen Martinez, Gonzalez Castro, Morillo-Gomez, and Ibarra-Mujica, agreed to kill Claretha LaQuesha Daniels and Justin Lawless and to shoot Victim-3 in the vicinity of 2290 Davidson Avenue in the Bronx, New York. Jaen Martinez, Gonzalez Castro, Morillo-Gomez, and Ibarra-Mujica then aided and abetted, caused, and otherwise facilitated the shooting of Daniels, Lawless, and Victim-3, which resulted in the deaths of Daniels and Lawless, and multiple non-fatal gunshot wounds to Victim-3. Claretha LaQuesha Daniels was 44 years old, and Justin Lawless was 36 years old.
A chart containing the names, charges, and maximum penalties for the defendants appears below.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Clayton praised the outstanding investigative work of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), including the Field Offices in New York, Seattle, Denver, Chicago, and Hawaii, and the NYPD. He also thanked the Bronx County District Attorney’s Office, the Arapahoe County District Attorney’s Office in Colorado; the Aurora Police Department in Aurora, Colorado; Joint Task Force Vulcan; the New York/New Jersey Regional Fugitive Task Force of the U.S. Marshals Service (USMS); the U.S. Border Patrol’s National Gang Unit and New York Human Intelligence Division; ICE’s Enforcement and Removal Operations New York Field Office; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the New York City Crime Analysis Center at the New York/New Jersey High Intensity Drug Trafficking Area.
This case is part of Joint Task Force Vulcan, which was created in 2019 to eradicate MS-13 and now expanded at the direction of the Attorney General to target Tren de Aragua. 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 Criminal Division. Additionally, the FBI, Drug Enforcement Administration (DEA), HSI, ATF, USMS, and the Federal Bureau of Prisons are essential law enforcement partners with JTFV.
This case is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of 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. HSTF New York comprises agents and officers from HSI, FBI, DEA, ATF, and IRS Criminal Investigation with the prosecution being led by the U.S. Attorney’s Office for the Southern District of New York.
Assistant U.S. Attorneys Jun Xiang, Kathryn Wheelock, Timothy Ly, Andrew K. Chan, and Jared Hoffman of the Southern District of New York’s Violent Organizations and Crime Unit and Joint Task Force Vulcan are prosecuting the case.
COUNTCHARGEDEFENDANTSMAX. PENALTIESOne
(S3 Information)
Murder through the use of a firearmJaen Martinez
Gonzalez Castro
Morillo-Gomez
Ibarra-Mujica
Life in prisonTwo
(S3 Information)
Murder through the use of a firearmJaen Martinez
Gonzalez Castro
Morillo-Gomez
Ibarra-Mujica
Life in prisonThree
(S3 Information)
Firearm use, carrying, and possessionJaen Martinez
Gonzalez Castro
Morillo-Gomez
Ibarra-Mujica
Life in prison
Mandatory consecutive sentence of 5 years in prison
One
(S2 Indictment)
Racketeering conspiracyValero-Calderon 20 years in prisonSix
(S2 Indictment)
Firearm use, carrying, and possessionValero-CalderonLife in prison
Mandatory consecutive sentence of 5 years in prison
Arizona Man Pleads Guilty to Selling Illicit Chemical SubstancesRead the Press Release
The Justice Department announced today that Jeffrey McIndoo, of Phoenix, and his company, JeffMac Investments LLC doing business as SARMS Pharm LLC (SARMS Pharm), has pleaded guilty to an information in connection with the illicit sale of potentially dangerous chemical substances known as “SARMs” - selective androgen receptor modulators that mimic the effects of anabolic steroids when ingested into the body. SARMs are not approved by the U.S. Food & Drug Administration (FDA).
“The Justice Department and its partners will continue to actively pursue companies and individuals who sell smuggled and potentially harmful substances to American consumers,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Smuggled SARMs have no place in the national marketplace, and we will endeavor to keep these substances out of the reach of consumers.”
McIndoo, the owner/operator of SARMS Pharm, admitted to introducing an unapproved drug into interstate commerce, while SARMS Pharm pleaded guilty to a conspiracy to smuggle SARMs from China into the United States. In total, between 2017 and 2022, SARMS Pharm earned gross profits totaling at least $3.5 million from selling SARMs. As part of its plea, SARMS Pharm agreed to forfeit $1.8 million the sum of the proceeds retained by the company.
The defendants pleaded guilty before U.S. Magistrate Judge Boyle for the District of Arizona. McIndoo faces a maximum penalty of one year in prison. As part of the plea agreements, JeffMac Investments LLC will shutter its business and will no longer smuggle or sell SARMS.
This case was investigated by FDA’s Office of Criminal Investigations.
This case was prosecuted by Senior Litigation Counsel David Sullivan and Assistant Director Patrick Runkle of the Civil Division’s Enforcement & Affirmative Litigation Branch.