District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Nurse Practitioner Convicted for Illegal Distribution of Controlled SubstancesRead the Press Release
A federal jury in the Middle District of Tennessee convicted a Tennessee woman yesterday for illegally distributing controlled substances.
According to court documents and evidence presented at trial, Heather Marks, 43, of Murfreesboro, Tennessee, was an Advanced Registered Nurse Practitioner who was licensed by the Drug Enforcement Administration (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. From September 2016 through May 2018, Marks and others overprescribed highly addictive opioids, including oxycodone and oxymorphone, to Lifeforce patients. 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.
Lifeforce, the pain clinic in Carthage, Tennessee, where Marks illegally prescribed controlled substances.The jury convicted Marks of conspiracy to illegally distribute controlled substances and eight counts of illegally distributing controlled substances. She is scheduled to be sentenced on September 1, 2026, and faces a maximum penalty of 20 years in prison on each count of conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Attorney Braden H. Boucek for the Middle District of Tennessee; Special Agent in Charge Terrence G. Reilly of the FBI; Special Agent in Charge Kelly Blackmon of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Chris Ramage of the Tennessee Bureau of Investigation (TBI) made the announcement.
FBI, HHS-OIG, and TBI investigated the case.
Assistant Chief Jim Hayes and Trial Attorneys Lauren Randell and Manu Sebastian of the Criminal Division’s Fraud Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Statement on Lighthiser Case in MontanaRead the Press Release
Today, the U.S. Court of Appeals for the Ninth Circuit affirmed a district court’s ruling to dismiss the case Lighthiser et al. v. Donald J. Trump et al., a case where plaintiffs sought to challenge President Donald J. Trump’s executive orders to unleash American energy, declare a national energy emergency, and to reinvigorate America’s clean coal industry.
“The appellate court unanimously affirmed what the district court said months ago — the plaintiffs lacked standing to bring this suit because they did not establish that the Executive Orders caused any injury or that any injury could be redressed by the courts,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Working with our partner agencies, ENRD is on the front lines of advancing the President’s energy directives, using America’s abundant natural resources to our benefit including by having clean and healthy air and water.”
Justice Department Secures Motion to Allow Continued Construction of Idaho Gold Mine Critical to National DefenseRead the Press Release
Last week, the U.S. District Court for the District of Idaho denied a motion for a preliminary injunction to halt construction of the Stibnite Gold Project. Among other things, the project will establish a domestic source of the mineral antimony, which has an essential use in a range of defense applications, including munitions and military-grade antimony trisulfide, lead-acid batteries, advanced sensor and radar materials, and flame retardants. Historically, the United States has been dependent on foreign sources of antimony. China is the largest historical supplier and has restricted exports to the United States. This has left the National Defense Stockpile depleted.
“Antimony is among the minerals most vital to our national defense, and for too long the United States has relied on foreign adversaries to supply it,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “This decision allows construction to move forward on the most significant domestic source of antimony, and it reflects the Department’s commitment to defending projects critical to America’s national security.”
After years of environmental reviews, the U.S. Forest Service in January 2025 approved the Stibnite project, which is located in the Boise and Payette National Forests in central Idaho. A coalition of environmental groups challenged the approval and asked the court, before scheduled construction began, to halt work on the project’s access route and related facilities. The court denied that motion because plaintiffs had not made the required clear showing of imminent, irreparable harm. The ruling allows the authorized construction to proceed while the litigation continues.
Defense officials have identified the Stibnite project as the only domestic mine source capable of producing antimony in sufficient quantities to meet U.S. defense requirements in the near term. Over its life, the project is projected to produce roughly 115 million pounds of antimony, along with 4.2 million ounces of gold and 1.7 million ounces of silver. It will also reclaim a site disturbed by more than a century of historical mining, removing legacy mine tailings and restoring fish passage on the East Fork of the South Fork Salmon River.
Attorneys with ENRD’s Natural Resources Section and Wildlife and Marine Resources Section, together with the U.S. Attorney’s Office for the District of Idaho, are handling this matter.
Justice Department Intervenes in Support of Law Enforcement Challenge to Colorado LawRead the Press Release
Today, the Department of Justice moved to intervene in support of a lawsuit brought by local law enforcement officials challenging a Colorado law (HB21-1060). According to the government’s intervention motion, Colorado’s HB21-1060 interferes with public safety by distorting the process by which crime victims may temporarily remain in the country to assist with the prosecution of the offenses committed against them.
“Colorado’s law distorting the U-Visa process is deeply unfair to qualified U-Visa applicants who want to help law enforcement secure the safety of American communities,” said Associate Attorney General Stanley Woodward. “Congress created a scheme to incentivize cooperation with law enforcement while relying on local official discretion to ensure that only deserving applicants receive U-Visas. But Colorado is favoring the unhelpful alien over the crime victim who helps promote public safety and order. Federal law does not tolerate that backwards policy.”
U nonimmigrant visas (U-Visas) provide certain aliens who have been victims of serious crimes with temporary authorization to remain in our Nation to aid in the prosecution of criminal activity. To be eligible, among other requirements, an alien must submit an official certification from an appropriate law enforcement official stating that the alien has been, is, or likely will be helpful in the investigation or prosecution. Because only 10,000 U-Visas are available per year, the application process is highly competitive. But HB21-1060 skews that process. It requires officials to certify helpfulness even when an alien has not been, is not, and will not likely be helpful so long as the alien has not failed or refused to provide help reasonably requested. HB21-1060 also forbids certifying officials from considering relevant criteria, such as whether an alien lacks information about the criminal activity. And by eliminating certifying official discretion, HB21-1060 removes an important threshold check that ensures U-Visas go to only worthy applicants. Taken together, these Colorado requirements could force a Colorado official to provide the required certification even when an alien is not helpful, does not even possess information that could be helpful, and has engaged in separate conduct (such as known involvement in other serious criminal activity) that would warrant a discretionary refusal to certify.
As the proposed complaint-in-intervention explains, HB21-1060 is contrary to the U-Visa regime Congress enacted and is thus preempted under the Supremacy Clause.
Today’s action to intervene and support local law enforcement’s suit against Colorado demonstrates President Trump’s commitment to support crime victims and our Nation’s law enforcement officers, who work tirelessly to keep American communities safe. Laws that have the opposite effect and flout the judgment of Congress cannot stand.
Justice Department Secures Ruling to Allow Montana Vegetation Management Project to ProceedRead the Press Release
Last week, the U.S. District Court for the District of Montana upheld the Forest Service’s Mud Creek Project in the Bitterroot National Forest in southwest Montana. Continuing over the course of several years, the project will reduce the threat of catastrophic wildfire affecting nearby communities through prescribed burns and other noncommercial fuel reduction treatments and by providing up to 13,700 acres of commercial timber harvest. The Montana Department of Natural Resources and Conservation and Ravalli County, Montana, joined the federal government in the case to defend the project.
In upholding the project, the district court ruled that it complied with the National Environmental Policy Act (NEPA), National Forest Management Act (NFMA), and Endangered Species Act (ESA). The court found 1) that the Forest Service has adequately considered the project’s potential effects on carbon stocks in the forest; 2) that the NFMA claim was procedurally barred and even if it were not, that it would not prevent the project from going forward because no forest stands from old growth status will be removed; and 3) that the project has sufficient mitigation measures to offset impacts to species listed under the ESA. The decision is subject to appeal in the Ninth Circuit.
“Responsible forest management prevents wildfires, saves lives, produces timber we need to increase the supply of housing, and makes homes more affordable,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Environment and Natural Resources Division is successfully combating efforts to weaponize procedural statutes against the responsible use of America’s vast natural resources. The District Court rightly held that the Forest Service’s assessment of environmental effects for a forest can apply to a particular project within that forest.”
In March 2025, President Donald J. Trump issued an executive order to expand American timber production. One of the purposes of the executive order is to save American lives and communities through forest management and wildfire risk reduction projects.
Senior Trial Attorney Shaun Pettigrew of ENRD’s Natural Resources Section handled the case, with support from the Wildlife and Marine Resources Section.
Brooklyn Man Charged with Threatening to Assault and Murder ICE Officer and His FamilyRead the Press Release
A Brooklyn man was charged today with threatening to assault and murder a U.S. Customs and Immigration Enforcement (ICE) officer outside an ICE detention facility.
Nicholas Matthew Scelfo, 27, of Brooklyn, New York, was arrested for influencing, impeding, and retaliating against a federal officer by threat. Scelfo is scheduled to appear today before a U.S. Magistrate Judge in Newark federal court.
“Federal law enforcement officers face danger with great courage, and they should be able to do their jobs without being threatened and fearing for their families’ lives,” said Acting Attorney General Todd Blanche. “We take such threats very seriously and will prosecute those who make them to the fullest extent of the law.”
“This individual allegedly threatened violence toward one of our federal law enforcement officers and their family — and by using facial recognition technology, within 24 hours this FBI got him,” said FBI Director Kash Patel. “In particular, I want to thank Acting Attorney General Todd Blanche who moved extremely quickly to locate, pursue, and bring the subject to justice — as well as our FBI Newark and New York teams who executed brilliantly. Let this be a message to any criminal actor who may try something similar: you touch a cop, and this FBI will put you down.”
“This violent rioter who allegedly threatened to murder an ICE law enforcement officer and his family is being brought to justice,” said Secretary Markwayne Mullin of the Department of Homeland Security (DHS). “Our ICE officers are facing an 8,000% increase in death threats against them as they put their lives on the line to arrest murderers, rapists, pedophiles, gang members, and terrorists. Our officers have been assaulted, doxxed, their families threatened. This violence against law enforcement must end. President Trump and I will always stand with our law enforcement officers.”
“As alleged, the defendant threatened a federal law enforcement officer and members of that officer’s family with violence and death,” said U.S. Attorney Robert Frazer for the District of New Jersey. “Threats against federal officers and their families are serious crimes and will not be tolerated. Federal officers serve our communities every day, often in difficult circumstances, and this office is committed to holding accountable those who, as alleged here, threaten violence against them or their loved ones.”
“There is no place for the violent threats Scelfo allegedly screamed at law enforcement. Instead of protesting peacefully, there are groups and individuals targeting federal law enforcement agents who are carrying out their duties,” said FBI Special Agent in Charge Stefanie Roddy for the Newark Field Office. “We will follow the law and hold anyone who chooses to break the law accountable.”
“Calling for the murder of a federal law enforcement officer and his family is not speech safeguarded by the Constitution; it is a grave criminal offense that will not be tolerated,” said Acting Special Agent in Charge Spiros Karabinas of Homeland Security Investigations (HSI) Newark. “Homeland Security Investigations remains resolute in ensuring that individuals who threaten or attack law enforcement face the full force of the law. We are grateful to our partners at the FBI for their outstanding work in helping us identify and locate this defendant so he can face justice.”
According to documents filed in this case and statements made in court, on or about May 27, during a demonstration outside an ICE detention facility in Newark, Scelfo threatened to assault and murder an ICE officer. According to a video posted to social media and other evidence obtained by law enforcement, Scelfo screamed toward the ICE officer: “I’ll kill your whole f------ family! Your whole f------ family is dead! Your children, your wife, all dead! I have your face, motherf-----! You’re dead! Dead!” During an interview with law enforcement after his arrest on or about May 29, Scelfo admitted to threatening to kill an officer and his family at the demonstration and that he later saw in the media a video of him making statements to law enforcement at the demonstration.
If convicted, the threat charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
The FBI and task force officers of the Joint Terrorism Task Force, HSI Newark, and the New York Police Department investigated the case.
Assistant U.S. Attorneys Camila A. Garces and Casey S. Smith for the District of New Jersey are prosecuting the case.
The charge and allegations contained in the complaint are merely accusations. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Office of Legal Counsel Concludes Immigrant Welfare Eligibility Rules Apply to FCC Lifeline ProgramRead the Press Release
WASHINGTON – Today, the Department of Justice released an opinion for the Federal Communications Commission (FCC) which addresses the relationship between the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) and the Lifeline program, which offers monthly discounts on telephone and broadband internet services for qualifying low-income consumers. The Office of Legal Counsel’s interpretation finds that to receive Lifeline benefits, a non-citizen must satisfy PRWORA’s eligibility and verification requirements.
Under this finding, non-citizens are typically ineligible to enroll in Lifeline unless they have been in the United States for at least five years with qualified status. FCC must also impose additional safeguards to verify eligibility for Lifeline benefits beyond simply collecting a subscriber’s Social Security Number before enrolling them into the program. This finding creates further safeguards to protect American taxpayer resources from abuse by non-American citizens.
“Today’s opinion further protects a critical public benefit that provides discounted utility assistance to Americans struggling to make ends meet,” said Acting U.S. Attorney General Todd Blanche. “This Department will continue to put American citizens first and root out any abuse of taxpayer dollars by those in our country illegally.”
"At the FCC, our position has been clear. To receive federal subsidies like Lifeline, you must be a lawful beneficiary. The government should not be spending the money of hard working Americans to provide phone and Internet serve for ineligible recipients." said FCC Chairman, Brendan Carr. "Today's opinion from the Department will go a long way in putting an end to this kind of abuse. The FCC will continue to do our part, alongside DOJ, to impose additional safeguards and restore the public's confidence in the Lifeline program."
This action comes as a follow-on to the Office’s December opinion about the meaning of “Federal means-tested public benefits” in PRWORA, which reversed a Clinton-era interpretation that had allowed ineligible aliens to receive federal welfare benefits.
Read the full opinion here.
In Celebration of Freedom 250, the United States Attorney’s Office for the District of Guam Contributes to Family Violence ShelterRead the Press Release
Hagåtña, Guam – As part of America’s 250th birthday commemoration, Freedom 250, United States Attorneys’ Offices nationwide are honoring America by coordinating gift‑in‑kind charity drives for their staff to benefit local communities. In the District of Guam, United States Attorney Shawn N. Anderson announced that the office conducted an employee charity drive in support of the Alee Women and Children’s Shelter.
The Alee Shelter is a 24/7 emergency protective facility that provides refuge for women, men, and their children escaping domestic violence, sexual assault, or sex trafficking. To safeguard its residents and staff, the shelter operates in a confidential and undisclosed location. Established in 1981, Alee was created in response to rising incidents of abuse and violence within the island community and has remained a vital source of safety and support ever since.
“As we celebrate the anniversary of our great nation, it is important to take a moment to reflect on what has been achieved and what remains to be done” stated United States Attorney Anderson. “There is much that we can contribute as individuals, communities, and organizations. Taking time to volunteer or donate to those in need is a step in the right direction. Our office, as a federal family, is contributing to an organization that works to protect the most vulnerable in Guam. We wish the Alee Shelter the best as it uses this donation to fulfill its critical mission.”
USAO Guam
Philippine National Sentenced to 18 months in Federal Prison for Filing Fraudulent Applications for Employment Authorization for Illegal AliensRead the Press Release
SAIPAN, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on May 27, 2026, Venerando Aquino Martin, age 56, an illegal alien originally from the Republic of the Philippines, was sentenced in the United States District Court for the Northern Mariana Islands to 18 months imprisonment for Visa Fraud Against the United States, in violation of 18 U.S.C. § 1546(a). The Court also ordered him to serve one year of supervised release and pay a $200 mandatory assessment fee.
Between September 23, 2023, and April 9, 2025, Martin submitted approximately 242 fraudulent Form I‑765: Application for Employment Authorization applications, falsely claiming that the applicants qualified for employment. As a result of this scheme, 66 Employment Authorization Documents (EAD) were unlawfully issued and subsequently used by undocumented aliens to obtain employment within the Commonwealth of the Northern Mariana Islands.
“Martin engaged in fraudulent conduct at every step of his scheme,” stated United States Attorney Anderson. “All 66 EAD recipients have had their work authorizations revoked. The aliens involved have either been placed in or are pending initiation of removal proceedings. We will aggressively enforce immigration violations to ensure that foreign nationals meet the qualifications of our work visa programs.”
“Visa fraud weakens our immigration system and puts our communities at risk,” said CJ Ammons, Acting Special Agent in Charge at Homeland Security Investigations. “We’re keeping a close eye on everyone and everything crossing our borders. If you violate our customs or immigration laws, you will face consequences. Don’t risk it.”
The investigation was conducted by Homeland Security Investigations Saipan and prosecuted by Assistant United States Attorney Garth R. Backe for the District of the Northern Mariana Islands.
Justice Department Sues States for Denying Undercover License Plates to Federal Law EnforcementRead the Press Release
On Wednesday, the Department of Justice filed lawsuits against Maine, Washington, Oregon, and Massachusetts challenging their unconstitutional policies denying confidential license plates to federal agents. This comes after each state refused to rescind their unconstitutional policies in response to a prompt letter from the Department explaining the policies’ illegality.
Not only are these policies unconstitutional, but, as alleged in the complaint, these policies threaten the operational effectiveness and safety of federal agents who have faced a wave of targeted harassment. If federal agents cannot use confidential plates, dangerous individuals can track and evade law enforcement. There is no justification for states to deny confidential license plates to federal agents.
“This Department of Justice will exercise any and all lawful authorities to support the brave men and women of law enforcement,” said Acting Attorney General Todd Blanche. “Law enforcement officers risk their lives every day to keep Americans safe and must be able to carry out their duties effectively. By denying undercover license plates to DHS components, including ICE, while issuing them to their own state agencies, these governors are pursuing discriminatory and obstructionist policies against federal law enforcement. These actions undermine federal immigration enforcement, allow dangerous criminals to escape justice, and terrorize American communities.”
“The Department of Justice will steadfastly protect the operational effectiveness and safety of law enforcement from these unconstitutional state policies,” 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. This 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.
Fraudster Who Sold Personal Information of over 7 Million Elderly Americans to Jamaican Scammers Sentenced to PrisonRead the Press Release
Today, a North Carolina man was sentenced to 121 months in prison and three years of supervised release for running a seven-year scheme where he victimized millions of elderly Americans by selling their personal information to Jamaican lottery fraud scammers. He was also ordered to pay forfeiture in the amount of $5,214,688.48.
According to court documents, Troy Murray, 57, of Hickory, North Carolina, devised a scheme where he organized, maintained, and sold lists containing the names, phone numbers, physical addresses, and, in some cases, ages and email addresses, of elderly Americans to individuals in Jamaica involved in lottery fraud schemes. From 2016 to 2023, Murray sold these lists to Jamaican scammers, who perpetrated lottery fraud on elderly American consumers, earning Murray hundreds of thousands of dollars each year.
Murray was a prolific and well-known lead list broker for Jamaican scammers. To complete the transactions, scammers would typically call email, or text Murray for a list of names. Murray then provided a price per list, typically $500, for 100 to 300 names. Initially, Murray instructed scammers to provide payment via wire transfer; however, after multiple monetary wire transmission services blocked him from using their services, he instructed scammers to send him pre-paid gift cards to pay for the lists instead. Murray’s list broker service was so well known in Jamaica that that his pseudonym, “Steve Dixon,” was referenced by a Jamaican musical artist in a 2022 song lyric.
After receiving payment from the Jamaican scammers, Murray used the funds to purchase farm equipment, vehicles, and collectibles like bars and coins made of precious metals. Murray also sent money he made from the scheme to one of his sons to purchase personal property and pay for his business and living expenses.
During the scheme, Murray sent at least 22,000 lead lists to scammers. These lists contained the names and personal information of over seven million elderly Americans and garnered Murray over $5.2 million. Victim losses exceeded $9.5 million.
In January 2026, Murray pleaded guilty to one count of conspiracy to commit wire fraud.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division made the announcement.
The U.S. Postal Inspection Service investigated the case.
Senior Litigation Counsel David Sullivan and Trial Attorney Ryan Norman of the Criminal Division’s Fraud Section prosecuted the case.
Clinic Manager Convicted of $8M Medicare Fraud SchemeRead the Press Release
A federal jury in the Eastern District of New York convicted a New York woman today for her role in an $8 million health care fraud conspiracy.
According to court documents and evidence presented at trial, Olga Popovych, 43, of New York, New York, was an office manager of several physical therapy clinics that paid cash kickbacks to ambulette drivers who recruited Medicare patients to bring to the clinics. As the evidence at trial showed, the defendant was personally involved with paying the ambulette drivers cash kickbacks. She also falsified medical records to indicate that physical therapists who were not actually at the clinic treated the patients. Between 2018 and 2020, Medicare paid these clinics over $8 million.
Witnesses testified at trial that the defendant exchanged text messages with her co-conspirators that discussed the payment of kickbacks through the use of code words. The evidence also showed that the defendant suspected that the clinics were being watched by law enforcement and took steps to conceal the scheme.
The jury convicted Popovych of conspiracy to commit health care fraud, conspiracy to make false statements relating to health care matters, 4 counts of health care fraud, and 3 counts of making false statements relating to health care matters. She faces a statutory maximum penalty of 10 years for each health care fraud conviction and 5 years for each false statements conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Attorney Joseph Nocella, Jr. for the Eastern District of New York; Special Agent in Charge Naomi Gruchacz for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Assistant Director in Charge James C. Barnacle for the FBI New York Field Office made the announcement.
HHS-OIG and FBI investigated the case.
Trial Attorneys Patrick J. Campbell and John Howard of the Criminal Division’s Fraud Section prosecuted the case. Trial Attorney Miriam Glaser Dauermann assisted in the prosecution.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Oglethorpe Inc. and Top Executives Agree to Pay $32M to Resolve False Claims Act AllegationsRead the Press Release
Oglethorpe Inc. (Oglethorpe), an operator of psychiatric hospitals headquartered in Tampa, Florida, along with its founder and principal owner, Robert Cohen, CEO John Picciano, and Chief Operating Office James O’Shea, have agreed to pay $32 million to resolve allegations that they violated the False Claims Act by knowingly failing to return overpayments received from the Medicare program for the admission of beneficiaries to three of Oglethorpe’s Ohio facilities.
The settlement resolves allegations that, from 2021 through the present, Oglethorpe and its executives knowingly failed to return to Medicare overpayments that Oglethorpe’s own consultants had identified. The overpayments related to beneficiaries who had been admitted to two hospitals (Ridgeview Behavioral Hospital and Georgetown Behavioral Hospital) and a substance abuse clinic (The Woods at Parkside), even though they did not qualify for inpatient psychiatric care.
“Healthcare fraud has negative impacts for taxpayers and patients alike,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “This settlement reflects the Department’s commitment to protecting taxpayer money and ensuring that Medicare payments are consistent with the coverage and payment rules for those services.”
“My office is determined to protect the public fisc and our fragile public health programs,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We will continue to pursue companies and individuals who defy Medicare’s regulations for personal gain.”
In 2021, Oglethorpe entered a Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) following an earlier False Claims Act settlement with the Department of Justice. As a result of violating that Corporate Integrity Agreement, the defendants agreed to enter into a voluntary exclusion agreement with HHS-OIG under which they will be excluded from Medicare, Medicaid, and all federal health care programs for a period of 10 years beginning in July 2026.
“By enforcing the Corporate Integrity Agreement and securing a voluntary exclusion agreement the Department of Health and Human Services Office of Inspector General has demonstrated its unwavering commitment to protecting the integrity of federal health care programs,” said Chief Counsel Susan Edwards of HHS-OIG. “When entities fail to meet their obligations — especially after entering agreements designed to ensure compliance — we will take decisive action. This outcome underscores that accountability is essential to safeguarding both patients and taxpayer resources.”
The civil settlement concludes a lawsuit filed by four former Oglethorpe employees: Whitney Treloar, a registered nurse, Darren Caruso, former Chief Fiscal Officer, Jeanette Skinner, former Regional Director of Operations, and Joel Snook, the former Director of Financial Operations. The suit was filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they believe that a defendant has submitted false claims for government funds and to receive a share of the recovery. The relators’ share of this resolution has not yet been determined. The qui tam case is captioned United States ex rel. Whitney Treloar, et al. v. Oglethorpe, Inc., et. al., No. 22-cv-00238 (M.D. Fla.).
This year the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for the American taxpayers, and holding wrongdoers accountable. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida.
Senior Trial Counsel Justin Draycott of the Justice Department’s Civil Fraud Section and Assistant U.S. Attorney Sean Keefe for the Middle District of Florida handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Final of Four Conspirators Sentenced to over 18 Years in Prison for Using Darknet Marketplace to Distribute Dangerous Counterfeit Pills in Homeland Security Task Force CaseRead the Press Release
As a result of a Homeland Security Task Force (HSTF) investigation, four Massachusetts men have been sentenced to prison for their roles in a conspiracy to manufacture counterfeit pills and distribute them across the United States.
According to court documents, from at least May 2022 to June 2025, Daniel John Blaney, 28; Kenneth Emmanuel Lora, 27; David Robert Kable Jr., 27; and Javier Alexander Bermudez, 31, all from Lynn, Massachusetts, engaged in a massive conspiracy to manufacture and distribute counterfeit pills laced with fentanyl, N-pyrrolidino etonitazene (Pyro), methamphetamine, and Bromazolam. The conspirators transported the pills in kilogram quantities from the Northeast to a redistributor in New York and then distributed them primarily via darknet marketplaces and the U.S. Postal Service to customers nationwide.
Blaney was sentenced today to 18 years and 4 months in prison. Kable was sentenced on April 29 to 12 years in prison. Bermudez was sentenced March 18 to 12 years in prison. Lora was sentenced on Dec. 17, 2025, to 15 years in prison. The defendants had previously pleaded guilty: Blaney on Jan. 7; Kable on Dec. 2, 2025; Bermudez on Dec. 9, 2025; and Lora on Aug. 27, 2025.
“These four men are responsible for manufacturing and then flooding American communities with incredibly dangerous counterfeit narcotics, some of which contained synthetic opioids even more powerful than deadly Fentanyl,” said Acting Attorney General Todd Blanche. “Thanks to the combined efforts of the Homeland Security Task Force, this scheme has been dismantled, and the conspirators have been prosecuted and imprisoned for their crimes against the American people.”
“These four conspirators orchestrated a large-scale scheme to manufacture and distribute counterfeit pills laced with deadly amounts of dangerous chemicals that took the lives of too many victims, and it could have easily been many more,” said FBI Director Kash Patel. “These criminals will spend years behind bars for the incredible turmoil they have inflicted on American families. This is yet another victory for the Homeland Security Task Force, fervently using all available prosecutorial and investigative tools to put criminals like these four men in federal prison so they cannot infect communities and destroy more lives.”
“Criminals who exploit darknet marketplaces to traffic counterfeit pills are fueling a deadly epidemic with absolutely no regard for human life,” said Homeland Security Investigations (HSI) Acting Executive Associate Director John Condon. “These defendants manufactured and distributed substances so dangerous that a single pill can be fatal. Through relentless investigation and close coordination across the Homeland Security Task Force, law enforcement dismantled this operation and held these people accountable. We will continue pursuing the individuals and networks profiting from poison in our communities.”
The conspirators used industrial pill presses to manufacture counterfeit Oxycodone, Adderall, and Xanax pills. Instead of the pharmaceuticals’ normal content, however, the conspirators’ pills contained differing substances depending on the batch. For example, the conspiracy’s counterfeit oxycodone pills contained a number of substances, including fentanyl and Pyro. Counterfeit Adderall pills typically contained methamphetamine, while counterfeit Xanax pills typically contained Bromazolam, a synthetic benzodiazepine.
The conspirators typically received payment from customers in the form of cryptocurrency. Estimates of the conspiracy’s reach show that the conspiracy was responsible for at least 9,000 sales of pills containing methamphetamine, fentanyl, or Pyro.
Pyro is in the Nitazene class of synthetic opioids commonly sourced from China and mixed into other drugs. The most common Nitazenes are approximately five times the strength of fentanyl. The Pyro in this case is approximately 20-40 times stronger than fentanyl. Over a dozen fatal overdoses were related to the conspiracy’s pills.
On June 4, 2025, Lora was arrested in New York. During a search of his drug premise, investigators recovered over 39 kilograms of controlled substances.
On June 17, 2025, law enforcement searched a storage unit maintained by Bermudez and Blaney and recovered five industrial pill presses, pill press attachments used to imprint counterfeit pharmaceutical brandings onto pills, over 33 grams of crystal methamphetamine, 41 kilograms of binding material, and manufacturing paraphernalia.
On July 12, 2025, Blaney fled through Canada and ultimately to Thailand to avoid prosecution. In advance of his flight, he fraudulently obtained a rush U.S. Passport. Blaney was expelled from Thailand and taken into federal custody on Aug. 25, 2025.
The FBI Washington Field Office, U.S. Postal Inspection Service New York Division, New York City Police Department, Drug Enforcement Administration (DEA), U.S. Customs and Border Protection (CBP), and HSI investigated the case. The FBI Boston Field Office, DEA New England Division, and the Office of the U.S. Attorney for the District of Massachusetts provided significant investigative assistance.
Assistant U.S. Attorneys Heather D. Call and Christopher M. Carter for the Eastern District of Virginia prosecuted the case.
The Justice Department’s Office of International Affairs provided significant assistance in Blaney’s return to the United States.
This case is part of the 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 Manassas is comprised of agents and officers from the FBI; HSI; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); DEA; the Diplomatic Security Service; U.S. Marshals Service; the U.S. Coast Guard Investigative Service; the Naval Criminal Investigative Service; the Transportation Security Administration Federal Air Marshals Service; CBP; Enforcement and Removal Operations; and Washington Baltimore HIDTA. Prosecution is being led by the Office of the U.S. Attorney for the Eastern District of Virginia.
This case is also 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.
Civil Division Moves to Fast-Track Benefits Fraud EnforcementRead the Press Release
Today, the Civil Division announced reforms to accelerate the review of False Claims Act whistleblower complaints alleging fraud against federally funded, state-administered benefits programs. These reforms will empower the Department to move quickly on meritorious qui tam cases, maximize finite enforcement resources, and focus on dismantling sophisticated fraud schemes that exploit taxpayer-funded programs.
The False Claims Act (FCA) is one of the government’s most powerful weapons for fighting fraud and protecting taxpayer dollars. Most FCA cases begin as qui tam actions filed under seal by whistleblowers, known as relators, in federal district court. Successful relators may receive a significant share of the government’s recovery. The Civil Division will now prioritize qui tam complaints alleging fraud against public benefits programs by performing its initial review within 60 to 120 days. At the conclusion of that review, the Department will decide whether to:
- Permit the relator to proceed with the action and to assume primary responsibility for litigating it, subject to the government’s ongoing supervision and ultimate control of the matter;
- Conclude the allegations warrant further government investigation; or,
- Determine the qui tam should be dismissed under 31 U.S.C. §3730(c)(2)(A) because the allegations lack adequate specificity or are legally deficient.
“Bad actors who exploit federal benefits programs count on fragmented information and sheer volume of claims to try and avoid scrutiny,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “By accelerating review of qui tam complaints alleging benefits fraud, we can more rapidly identify and disrupt emerging schemes, strategically deploy enforcement resources to recover taxpayer money, and strengthen the government’s broader fight against fraud.”
This year, the Administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to enhance the Administration’s war on fraud, waste, and abuse in federal programs. When unscrupulous actors exploit these programs for their own financial gain, they defraud the government, harm the people these programs are designed to aid and protect, and undermine American businesses that play by the rules. Every dollar lost to fraud in federal benefits programs is a dollar diverted from the Americans those programs are intended to serve.
The Civil Division’s FCA enforcement plays a critical role in combatting such fraudulent schemes, recovering billions of dollars for American taxpayers, and holding wrongdoers accountable. As detailed in the Executive Order entitled “Establishing the Task Force to Eliminate Fraud” (March 16, 2026) (EO on Eliminating Fraud), American taxpayers fund a vast benefits system for citizens in need that includes housing, food, medical care, cash assistance, and more. FCA matters will continue to be on the forefront of the battle against fraud, and the Civil Division’s FCA work will support and advance the mission of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division.
The Department will also leverage a whole-of-government approach to ensure that new benefits fraud matters receive accelerated review and evaluation for all available enforcement options. New matters will be promptly referred to the Criminal Division and/or the National Fraud Enforcement Division for evaluation of potential criminal violations. In addition, new matters will be shared with the affected agency to evaluate potential administrative action, including payment suspension. Throughout its review, the Department also will seek information from the agency about the operation of the impacted program, data analysis, and other information to assist in corroborating the whistleblower’s allegations. The Civil Division will continue to assess how it can enhance processes and procedures to support prompt resolution of benefits fraud qui tams.
Previously Convicted Felon Sentenced for Distributing MethamphetamineRead the Press Release
Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant John Thomas Donnafield, age 44, from Ordot, Guam was sentenced to 115 months imprisonment. He was charged in the U.S. District Court of Guam with Possession with the Intent to Distribute Five Grams or more of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1), and Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. § 922(g)(1). The Court also ordered four years of supervised release and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On December 5, 2023, law enforcement officers executed a search warrant at Donnafield’s residence. He was found in his bedroom, where he directed officers to a black Sentry safe containing drugs and a firearm. He provided keys to the container and admitted that the black box held several grams of methamphetamine and a firearm, while additional items in the bedroom were drug paraphernalia. Officers also noted a surveillance system monitoring the home’s exterior.
A search of the bedroom resulted in the seizure of $1,786 in U.S. currency, identified as proceeds of unlawful drug activity. Cash was recovered from multiple locations, including a silver suitcase, a portable table, the Sentry safe, and a plastic chair. Officers also seized digital scales and additional drug‑distribution materials.
Seven Ziplock bags of suspected methamphetamine were collected from the Sentry safe. After testing by the DEA Southwest Laboratory, the Ziplock bags were found to contain 42.8 grams of methamphetamine hydrochloride at 95% purity. A stolen 9mm Beretta pistol, loaded with a magazine containing five rounds of ammunition, was also recovered from the safe. Forty-four additional rounds of ammunition were found in the bedroom.
Donnafield is prohibited from possessing firearms or ammunition due to multiple prior felony convictions. His record includes a 2012 federal conviction for possession of methamphetamine with intent to distribute, for which he received 27 months imprisonment and three years of supervised release. He also has a 2016 Guam Superior Court conviction for third‑degree felony family violence, which resulted in a mandatory one‑year sentence.
“Drugs and firearms are a dangerous combination for our communities,” stated United States Attorney Anderson. “Armed drug traffickers are prime targets for federal prosecution. The possession of a single round of ammunition by a felon can result in substantial penalties. I applaud the outstanding work by GPD and ATF in bringing this defendant to justice.”
“There is a reason Mr. Donnafield is prohibited from possessing firearms. After his 2012 conviction and incarceration, you would think he had learned his lesson, but this newest conviction makes it clear: Mr. Donnafield is unwilling to obey the law,” said ATF Seattle Field Division Acting Special Agent in Charge Dawn Dodsworth. “But ATF is unwilling to allow offenders to put our community in danger. We will continue to work alongside our law enforcement partners to ensure these criminals are brought to justice.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, Guam Police Department Special Investigation Section, and Guam Customs and Quarantine Agency.
Prosecution was handled by Assistant U.S. Attorney Devarup Rastogi 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 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 Neighborhoods.
This Week in Fraud: The Fraud Division Announced Expansion of Midwest Task Force and Authorization to Hire 15 New Medicaid Prosecutors, an Unprecedented Minnesota Health Care Fraud Takedown, and a $2 Billion Telemedicine Health Care Fraud SchemeRead the Press Release
This week, the Justice Department’s National Fraud Enforcement Division continued to advance its mission to fight fraud and protect taxpayers.
Assistant Attorney General Colin M. McDonald, along with HHS Secretary Robert F. Kennedy, Jr., Centers for Medicare & Medicaid Services Administrator Mehmet Oz, U.S. Attorney Daniel Rosen, and FBI Co-Deputy Director Christopher Raia, announced unprecedented charges against 15 defendants for Medicaid fraud schemes. The defendants allegedly participated in various schemes to defraud federal benefit programs totaling over $90 million in intended loss. The charges included the two largest Medicaid fraud cases ever charged in Minnesota and first-of-their-kind charges for certain Medicaid programs.
While in Minnesota, Assistant Attorney General Colin M. McDonald also announced the expansion of the Health Care Fraud Midwest Strike Force, bringing additional law enforcement resources to prosecute fraud in Minnesota, and the hiring of 15 additional prosecutors dedicated to combating Medicaid fraud nationwide.
“This is just the beginning,” said Acting Assistant Attorney General Colin M. McDonald at the announcement. “With the support of President Trump, Vice President Vance, Acting Attorney General Blanche, Chairman Ferguson and the White House Anti-Fraud Task Force, Secretary Kennedy, Dr. Oz and his team, and the entire federal fraud-fighting apparatus, the Department of Justice will continue expanding our reach across the country to pursue all fraud, no matter how large, no matter how small, no matter how hard.”
Other top highlights from the fight against fraud this week include the following enforcement actions.
Health Care Fraud
In Brooklyn, a defendant was sentenced to 10 years in prison for his participation in a $2 billion international health care fraud conspiracy.
Benefits Program Fraud
In Idaho, a jury convicted a man whose true identity remains unknown for theft of government funds and other crimes for using the identity of a long-deceased man to receive Social Security and other benefits. For more than two decades, the Defendant used the deceased individual’s name and identity to fraudulently obtain numerous government benefits totaling approximately $283,000.
A school district board member pleaded guilty in federal court for her role in a wire fraud scheme that defrauded the school district out of $385,000.
The United States obtained a court order authorizing the recovery of nearly $30 million in restitution related to a $63 million scheme to defraud the Paycheck Protection Program.
A Michigan jury convicted a nurse and home health care agency nurse for operating a $1.6 million scheme to defraud Medicare. From 2018 through 2021, the defendant bribed a nurse at a Detroit hospital to give the defendant their confidential records, which were used to unlawfully bill Medicare.
Government Fraud
A man pleaded guilty to a scheme to fraudulently obtain more than $229.6 million in loans and properties. Ultimately, he defaulted on the loans, or the loan balances substantially exceeded the value of the underlying collateral, resulting in approximately $94.4 million in losses to lenders, including the Federal National Mortgage Association, commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac.
The United States Attorney’s Office for the District of Vermont announced that it collected over $4.4 million in civil and criminal actions in Fiscal Year 2025. Among others, the office collected over $320,000 of restitution and fines from a defendant convicted of federal income tax evasion.
In West Virginia, a man pleaded guilty to theft of public money for fraudulently cashing U.S. treasury checks at businesses in West Virginia and Maryland totaling over $14,000. The defendant faces up to 10 years in prison and owes approximately $14,000 in restitution.
A man pleaded guilty to theft of government funds and other charges for depositing stolen and altered U.S. Treasury checks into bank accounts he opened in the name of a shell company. In total, the defendant stole or laundered more than $1.2 million in government funds.
Tax Fraud
A defendant was sentenced to 65 months in prison for his participation in an extensive COVID-19 employment tax credit fraud scheme. Members of the conspiracy filed numerous false tax returns, claiming over $3.4 million in tax refunds. The defendant and his co-conspirators were ordered to pay over $1.8 million in restitution.
Trade Fraud
An engineer for an Illinois company was sentenced to federal prison for trade fraud, counterfeiting, and other fraud schemes.
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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.
Members of Transnational Money Laundering Organization Charged with Laundering Cartel FundsRead the Press Release
An indictment returned in the Eastern District of Virginia was unsealed yesterday charging Ruhuan Zhen and Hongce Wu, both Chinese nationals, with conspiracy to commit money laundering in connection with transnational criminal organizations, including the Sinaloa Cartel and the Cartel de Jalisco Nueva Generación (CJNG).
According to court documents, beginning in at least November 2016 and continuing to April 2025, Zhen, Wu, and their co-conspirators are alleged to have used a variety of secretive and clandestine methods, including mirror transfers, foreign bank accounts, encrypted communications applications, a serial-number verification system, and trade-based money laundering, to launder substantial volumes of narcotics proceeds and funds represented to be narcotics proceeds on behalf of transnational criminal organizations. The conspiracy is alleged to span the course of years with co-conspirators operating across the United States, Mexico, Latin America, China, and elsewhere, and involve drug proceeds stemming from the importation and sale of illicit narcotics, including cocaine and fentanyl.
Zhen and Wu were indicted on April 24, 2025, by a federal grand jury empaneled in Alexandria, Virginia, and remain at large.
If convicted of the offense, Zhen and Wu each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Special Agent in Charge Cindy Marx of the Drug Enforcement Administration’s (DEA) Special Operations Division made the announcement.
The DEA’s Special Operations Division, Bilateral Investigations Unit investigated the case, with assistance from DEA’s Office of Special Intelligence, Document and Media Exploitation Unit, and DEA’s offices in Memphis Resident Office (RO), Lexington RO, Chicago Field Division (FD), New York FD, Washington FD, Charleston RO, Atlanta FD, Charlotte District Office, Bogota Country Office (CO), and Dubai CO.
Trial Attorney Chelsea R. Rooney of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) and Assistant U.S. Attorney Edgardo J. Rodriguez for the Eastern District of Virginia are prosecuting the case. MNF Trial Attorney Caylee E. Campbell provided substantial assistance throughout the investigation.
MNF’s mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.
MNF’s Money Laundering and Forfeiture Unit investigates and prosecutes sophisticated money laundering schemes involving financial facilitators, gatekeepers, and other individuals and entities laundering criminal proceeds, and litigates complex civil forfeiture cases to recover assets on behalf of victims.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Georgian Citizen Sentenced to over Three Years in Prison for International Money Laundering ConspiracyRead the Press Release
A Georgian citizen was sentenced today to 37 months in prison for laundering more than $1.1 million in illicit health care fraud proceeds to his co-conspirators located abroad.
According to court documents, Irakli Nakashidze, 35, a Georgian citizen residing in Miami, Florida, owned ABRH Care Inc. (ABRH), an alleged medical supply company located in Miami. In reality, ABRH was a sham company used to defraud Medicare. In just the first six months of 2025, ABRH billed Medicare and private insurers roughly $179 million for medical supplies — including orthotic braces and wound dressings — that were never provided to patients. This fraudulent billing was conducted by a transnational criminal organization that orchestrated a large-scale fraud on Medicare and private insurers. Nakashidze laundered over $1.1 million in proceeds from this fraud to his co-conspirators, including by transferring large sums to accounts located in China and Hong Kong. Bank surveillance depicted Nakashidze laundering the money on multiple occasions.
In November 2025, Nakashidze pleaded guilty to conspiracy to commit money laundering. At sentencing, he was ordered to pay $1,108,504 in forfeiture.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Acting Deputy Inspector General for Investigations Scott Lampert for the Department of Health and Human Services Office of the Inspector General (HHS-OIG); Special Agent in Charge Brett Skiles for the FBI Miami Office; and Special Agent in Charge Derek Holt for the U.S. Office of Personnel Management Office of the Inspector General (OPM-OIG) made the announcement.
HHS-OIG, FBI, and OPM-OIG investigated the case. Homeland Security Investigations, U.S. Citizenship and Immigration Services Fraud Detection and National Security Directorate, and the U.S. Marshals Service provided valuable assistance.
Trial Attorney Claire Horrell of the Criminal Division’s Fraud Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
FBI Agent Honored with Inaugural Hometown Hero Award by the United States Attorney for the Districts of Guam and the Northern Mariana IslandsRead the Press Release
Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, is proud to announce that Special Agent Richard J. Bauer has been awarded the inaugural Hometown Hero Award sponsored by the Department of Justice in honor of America’s 250th Birthday.
“It is a privilege to call Special Agent Bauer a federal partner,” stated United States Attorney Anderson. “Rick works in both of our judicial districts as a criminal investigator, specializing in child exploitation offenses, among other serious federal offenses. He is an expert in the forensic examination of electronic evidence. Rick also volunteers as a coach in youth wrestling, soccer, and baseball in the CNMI, including for national teams that compete throughout the Pacific region. He is also the vice president of the Northern Marianas Wrestling Federation. I applaud his commitment to service and civic responsibility for the citizens of our districts.”
The Hometown Hero Award was created in honor of the 250th birthday of the United States of America. The Department of Justice is proud to honor law enforcement across the country with recognition of the extraordinary service to their fellow citizens.
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Clinic Owner Convicted for $52M Health Care Fraud, Illegal Narcotics Distribution, and Kickback SchemeRead the Press Release
A federal jury in the Eastern District of New York convicted a New York man for his role in conspiracies to commit health care fraud, illegally distribute Suboxone, and pay and receive illegal health care kickbacks.
According to court documents and evidence presented at trial, Tony Brown-Arkah, 78, of New York, New York, was the owner of American Medical Centers (AMC), a medical clinic in Brooklyn that purported to provide substance abuse treatment. AMC lured patients to the clinic by illegally prescribing them Suboxone, a Schedule III narcotic designed to treat opioid use disorder, which, as one witness testified, is commonly abused by prison inmates by boiling the medication and dripping it into users’ eyes. Brown-Arkah allowed a drug ring to proliferate inside and on the steps of his clinic where drug dealers offered to buy patients’ Suboxone prescriptions for cash. One witness testified that an AMC staff member directed him to a van outside where he could sell his Suboxone if he did not want it.
Photograph of the van oustide Brown-Arkah’s clinic that Brown-Arkah’s staff directed a patient to if he wanted to sell his Suboxone prescription.Many patients at Brown-Arkah’s clinic received prescriptions signed by a nurse practitioner who lived in Florida and did not see or speak with the patients. When they visited AMC, patients were met with a façade of substance abuse treatment and were required to undergo invasive, medically unnecessary testing in order to get Suboxone prescriptions. Brown-Arkah billed Medicare and Medicaid for services that were never provided, including office visits where Brown-Arkah, who was not a medical provider, was the only AMC staff person to meet with the patient. The evidence established that patients at AMC were frequently prescribed Suboxone when they were not taking the medication. Witnesses testified that these prescriptions were not medically necessary and can be dangerous, and that the lack of Suboxone in a patient’s laboratory results is a significant warning sign of illegal diversion.
To fuel his scheme, Brown-Arkah paid illegal cash kickbacks to patients. One of these illegal payments was caught on video, depicted below, by a confidential source. In this undercover recording, Brown-Arkah describes others who pay patients illegal kickbacks and bill for medically unnecessary services, saying “that’s why they go to jail . . . that’s when the government busts ‘em!”
Brown-Arkah in an undercover recording meeting with a confidential source posing as a patient at his medical clinic in Brooklyn, offering the patient an illegal cash kickback in exchange for referring another patient to AMC.Brown-Arkah funneled patients to receive medically unnecessary laboratory testing. He received thousands of dollars each month in illegal kickbacks from the laboratory in exchange for these referrals. To conceal the kickbacks, the defendant created a shell company and a sham contract and lied to law enforcement about the purpose of the payments. In total, Brown-Arkah and his co-conspirators caused over $52 million in false claims to Medicare and Medicaid.
Brown-Arkah in an undercover recording meeting with a confidential source posing as a patient holding a pen over the patient’s billing sheet.The jury convicted Brown-Arkah of conspiracy to commit health care fraud, 12 counts of health care fraud, conspiracy to illegally distribute narcotics, 3 counts of illegal distribution of narcotics, conspiracy to pay and receive kickbacks and to defraud the United States, and 2 counts of receipt of kickbacks. A sentencing date has not been set. He faces a maximum penalty of ten years in prison on each health care fraud, narcotics, and kickbacks conviction, and five years in prison on the conspiracy to pay and receive kickbacks and defraud the United States conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; U.S. Attorney Joseph Nocella, Jr. for the Eastern District of New York; Special Agent in Charge Frank A. Tarentino III for the Drug Enforcement Administration (DEA), New York Division; Assistant Special Agent in Charge Naomi Gruchacz for the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Acting Special Agent in Charge Michael Alfonso for Homeland Security Investigations, New York (HSI); and Special Agent in Charge Harry T. Chavis, Jr. for the Internal Revenue Service Criminal Investigation, New York (IRS-CI) made the announcement.
The DEA, HHS-OIG, HSI, and IRS-CI investigated the case. The New York City Police Department and the New York City Human Resources Administration assisted in the investigation.
Trial Attorneys Miriam Glaser Dauermann and Margaret Mortimer of the Criminal Division’s Fraud Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Third Defendant Pleads Guilty in Scheme that Embezzled Thousands of Dollars from Funds Intended to Provide Relief During the COVID PandemicRead the Press Release
An Amarillo woman pleaded guilty on May 11, 2026, to embezzling funds from a federal program, announced U.S. Attorney for the Northern District of Texas Ryan Raybould.
Selene Varela, 41, pleaded guilty Monday to a felony information charging Theft Concerning a Program Receiving Federal Funds.
“We rely on our public officials to ensure that our laws our faithfully and dutifully executed,” said U.S. Attorney for the Northern District of Texas Ryan Raybould “Instead, the defendants planned and executed a scheme to use their public positions to line their own pockets at the expense of folks in Amarillo who are homeless—the intended beneficiaries of the pandemic program. I’d encourage the public across North Texas to reach out to my office if they witness or have information regarding public officials engaging in any corruption.”
“Selene Varela abused her position of trust by embezzling federal funds intended to help individuals experiencing homelessness secure stable housing,” said Acting Special Agent in Charge Aaron McCullough with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG). “HUD OIG remains committed to working with our law enforcement partners to aggressively pursue and hold accountable those who misuse public funds and exploit positions of trust for personal gain.”
In plea papers, Varela admitted that she previously worked for the City of Amarillo in the Community Development Department. From 2020 through 2022, Varela managed the intake process for homeless, or soon-to-be homeless, members of the Amarillo community who needed financial assistance to maintain housing. During the COVID-19 pandemic, the federal government funded these initiatives through the CARES Act.
Varela used her role as a city employee to create fictitious applications for this funding. In one instance, she fraudulently applied to have her own rent paid for six months—a fraudulent payment of $6,600. Varela also created accounts for fictitious landlords and tenants. She would submit false applications for payment and then cash the checks, keeping the proceeds. In total, Varela admitted to receiving approximately $41,350 in fraudulent distributions processed by the City of Amarillo.
Varela now faces up to 10 years in federal prison. Her sentencing date has not been set.
This case is related to the prosecution of two other former City of Amarillo employees who carried out similar schemes. In June 2024, Amy Dixon pleaded guilty to embezzling $465,511.65 while working in the Community Development Department. On October 23, 2024, United States District Judge Matthew J. Kacsmaryk sentenced Dixon to 24 months in federal prison. In March 2025, Vanessa Robinson pleaded guilty to embezzling $121,325.21 while working in the same department. Robinson was sentenced by Judge Kacsmaryk to 18 months in federal prison on July 22, 2025.
The United States Department of Housing and Urban Development Office of Inspector General and the Federal Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Sean Long is prosecuting the case and former Assistant U.S. Attorney Josh Frausto prosecuted Dixon and Robinson.
Minnesota Health Care Fraud Takedown Results in Charges Against 15 Defendants for over $90M in FraudRead the Press Release
The Justice Department today announced the Minnesota Health Care Fraud Takedown, which resulted in criminal charges against 15 defendants, including owners of child care centers and various Medicaid providers, for their alleged participation in various fraud schemes involving over $90 million in intended loss, including the two largest Medicaid fraud cases ever charged in the District and first-of-their kind charges involving additional Medicaid programs. The Justice Department also announced a major investment in combatting Medicaid fraud through a significant expansion of the Division’s Health Care Fraud Section, allocating funding to permit the hiring of 15 new Trial Attorney positions to combat Medicaid fraud across the United States.
“Today, we are holding scammers accountable who ripped off the American taxpayer and harmed those deserving legitimate assistance from these programs,” said Acting Attorney General Todd Blanche. “These alleged con artists stole taxpayer dollars while providing substandard care for children and abandoning at least one Medicaid recipient as they passed away. The DOJ Fraud Division, along with the White House’s Task Force to Eliminate Fraud, will dismantle illegal schemes from coast-to-coast, just as they did today in Minnesota. This is just the tip of the iceberg.”
“Driven by data showing a significant increase in Medicaid fraud across the country, the 15 additional prosecutors will serve as a force multiplier for our existing Strike Forces to combat this critical new threat,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division. “The Fraud Division is committed to supercharging the Health Care Fraud Strike Force program with the resources it needs to tackle the pervasive fraud in the health care industry and protect the vulnerable beneficiaries of these programs, including children and those suffering from chronic ailments.”
“Today’s arrests mark the largest autism fraud bust in American history,” said HHS Secretary Robert F. Kennedy, Jr. “Under the leadership of President Donald Trump and Vice President JD Vance, this Administration is carrying out the most aggressive anti-fraud effort in modern American history. These criminals exploited vulnerable children, stole taxpayer dollars, and diverted critical autism care and resources away from families who truly need support, and we will continue rooting out fraud to protect children and restore integrity to America’s public health programs.”
“As alleged, the defendants in this case not only attempted to steal public healthcare funds paid for by hardworking American taxpayers – but stole critical resources from families who truly needed them,” said FBI Director Kash Patel. “This FBI and our interagency partners have a mandate to investigate and systematically dismantle this exact kind of public fraud in America, which grossly abuses and mismanages money from working Americans, and that’s exactly what we’re doing. Today’s indictment is a massive moment in this effort and we’re not slowing down.”
Autism Fraud
In the largest Medicaid autism fraud case ever charged by the Department, two defendants were charged in connection with an approximately $46.6 million scheme to defraud the Early Intensive Developmental and Behavioral Intervention (EIDBI) program, a publicly funded Minnesota Health Care Program that offers medically necessary services to people under the age of 21 with autism spectrum disorder. In 2017, Minnesota became one of the first states to offer Medicaid coverage for EIDBI services. EIDBI claims skyrocketed from over $600,000 in 2018 to over $400 million by 2025.
As alleged, the defendants paid kickbacks to parents who brought their children to autism centers, diagnosed children with autism regardless of medical necessity, and billed for autism services that were not actually provided, depriving children who did need assistance of needed care.
"We continue to accelerate the pace at which we are identifying, investigating, and prosecuting those that stole billions of dollars from under the nose of Minnesota's government, said U.S. Attorney for the District of Minnesota Daniel Rosen.” We have more fraud prosecutors and law enforcement officers on the task than ever before. Stay tuned."
Integrated Community Supports Fraud
In the first criminal prosecution involving fraud in Minnesota’s Integrated Community Supports (ICS) program, one defendant was charged with a $1.4 million scheme to bill for services that were not provided as represented. ICS is a Minnesota Medicaid benefit designed to fill a gap in the service continuum between a person living in their own home and more restrictive settings such as group homes and assisted living. ICS was designed to help people live more independently in the community—as opposed to an institutionalized setting—with daily one-on-one help with health, safety, and household tasks so that qualifying individuals can live in the community. The defendant in the prosecution announced today submitted claims for vulnerable recipients who required 24-hour care, one of whom was found deceased a day after being billed for services he did not receive.
After paying out a total of approximately $4.2 million when the ICS program began in 2021, the cost has grown to more than $183 million in 2025. In all, claims data shows that the Medicaid system has paid out more than $460 million for ICS services since 2021. A failure to provide ICS services to vulnerable Medicaid recipients who are dependent on the care to live can have deadly consequences, like those described in the charging document.
“Medicaid dollars are meant to support vulnerable Americans—not bankroll luxury cars and real estate empires for fraudulent providers who exploit people with disabilities,” said CMS Administrator Dr. Mehmet Oz. “These prosecutions put Medicaid fraudsters on notice—the gravy train is over. We will cut you off, shut you down, and lock you up. They also send a clear message to the patients who depend on Medicaid and the taxpayers who fund it—this administration has your back.”
“The scope of the frauds alleged in the charges announced today is staggering, not only in the amount of loss, but in the reach of the impacted programs,” said FBI Co-Deputy Director Christopher Raia. “These programs, funded by the American taxpayer, were designed to help some of the most vulnerable members of our society. As alleged in these charges, instead of helping those in need of support, the defendants took millions of dollars for their own benefit. These frauds were uncovered thanks to dedicated work by the FBI and our law enforcement partners, and we look forward to continuing to partner with the United States Attorney's Office to reign in the rampant fraud in these programs.”
“Today’s takedown underscores a simple truth: Medicaid is a lifeline for vulnerable individuals, and we will not allow criminals to exploit it for personal gain. These schemes did more than steal taxpayer dollars — they robbed children with autism, adults with disabilities, and other at‑risk citizens of the essential care they rely on,” said Inspector General T. March Bell of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “HHS‑OIG, working shoulder‑to‑shoulder with our law enforcement partners, will continue to pursue those who prey on these critical programs. We will use every tool available to uncover fraud, hold offenders accountable, and safeguard the integrity of the benefits millions of families depend on.”
Individualized Home Supports Fraud
In the first criminal prosecution involving fraud in Minnesota’s Individualized Home Supports (IHS) program, two defendants were charged in connection with an over $22 million scheme in which they acquired over 20 separate residences and concealed their ownership interest from Medicaid. IHS was designed to help adults with disabilities such as brain injury to live independently in their own homes. Despite Medicaid prohibiting program providers from having direct or indirect financial interest in the beneficiaries’ housing, the defendants offered housing that they owned to vulnerable Medicaid beneficiaries in order to obtain Medicaid beneficiary information that they used to bill for services that were not provided as represented. Defendants used the proceeds of the scheme to acquire more real estate and further the fraud, as well as purchasing luxury automobiles and expensive jewelry. After paying out over $100 million in 2018, the IHS program grew to cost more than $700 million in 2025.
Housing Stabilization Services Fraud
Charges were brought against eight defendants for defrauding Housing Stabilization Services (HSS) of approximately $15.7 million. Some defendants were residents of Pennsylvania who engaged in fraud tourism, traveling to Minnesota for lucrative opportunities to commit fraud. In July 2020, Minnesota became the first state in the country to offer Medicaid coverage for HSS. The HSS Program was a Medical Assistance (that is, Medicaid) benefit designed to help people with disabilities, including seniors and people with mental illnesses and substance use disorders, find and maintain housing. By design, the HSS Program had low barriers to entry and minimal records requirements for reimbursement that combined to make the Program susceptible to fraud.
Before the HSS Program’s inaugural year, DHS predicted the HSS Program would cost about $2.6 million annually. In 2021 alone, the HSS Program paid out more than $26 million in claims. That figure ballooned in the following years to over $104 million in 2024. On October 31, 2025, Minnesota shuttered HSS due to fraud, illustrating how fraudulent schemes can result in the cessation of necessary programs and deprive beneficiaries of needed care.
"Today's law enforcement actions make it clear that IRS-CI is prioritizing investigations of fraud that permeate public service programs intended to serve the most vulnerable." said IRS-CI Acting Chief Gary Shapley.
Child Care Fraud
The Department announced charges against two defendants in connection with defrauding state and federal programs designed to subsidize child care. One defendant was charged with a $425,000 fraud on the state-funded Great Start Compensation Support Payment Program (GSCSPP), which reimburses for in-classroom hours provided by teachers in staff. Another defendant was charged with a $4.6 million fraud on the federally funded Child Care Assistance Program (CCAP), which reimburses child care centers for actual child care provided.
“The scale of fraud uncovered in Minnesota is alarming. HSI is fully committed to dismantling these criminal schemes and holding offenders accountable,” said Steven N. Schrank, Special Agent in Charge of Homeland Security Investigations in Minnesota. “These cases demonstrate our unwavering resolve to work with federal and state partners to root out fraud and protect those in need.”
Medicaid Fraud Enhancement and Expansion of the Health Care Fraud Strike Force
In connection with the Takedown, the Department announced the funding of 15 new prosecutors and associated support staff to combat Medicaid fraud across the country. Data show that Medicaid is a vital government benefit program increasingly targeted by criminals. The exposure of widespread fraud in Minnesota’s Medicaid program illustrates the insufficient nature of state enforcement alone, and the necessity of a whole-of-government approach. In the past year, the Health Care Fraud Section has surged prosecutors not only to Minnesota, but also to prosecute an over $650 million Medicaid fraud scheme in Arizona and over $270 million Medicaid fraud scheme in California.
These new prosecutors will be deployed by Acting Health Care Fraud Chief Jacob Foster and Acting Principal Assistant Chief Rebecca Yuan to districts where the threat of Medicaid fraud is the greatest, including existing Strike Forces in California, Florida, New York, and Texas, as well as deployed across the country through participation in the National Rapid Response Strike Force. In addition, the Department, along with its partners from HHS-OIG and FBI, announced today the expansion of the Midwest Strike Force to include the District of Minnesota. The Midwest Strike Force previously was based in Detroit and Chicago.
Health Care Fraud Assistant Chief Shankar Ramamurthy and Trial Attorney Sara Porter, along with Fraud Chief Rebecca Kline and Assistant United States Attorney Matthew Murphy for the District of Minnesota, led and coordinated the cases charged in today’s Takedown, together with the FBI, the Internal Revenue Service – Criminal Investigation, HHS-OIG, Homeland Security Investigations, and the United States Postal Inspection Service, as well as state and local law enforcement partners. Trial Attorneys Matthew Belz, Brant Cook, Jody King, Benjamin Smith, Charles Strauss, and Sara Woodward from multiple Strike Forces are prosecuting the cases charged in the Takedown. The Health Care Fraud Section’s Data Fusion Center used cutting-edge data analytics to identify and support the cases charged today.
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.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The following material related to today’s announcement are available on the Health Care Fraud Unit website through this link.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.The Justice Department today announced the Minnesota Health Care Fraud Takedown, which resulted in criminal charges against 15 defendants, including owners of child care centers and various Medicaid providers, for their alleged participation in various fraud schemes involving over $90 million in intended loss, including the two largest Medicaid fraud cases ever charged in the District and first-of-their kind charges involving additional Medicaid programs. The Justice Department also announced a major investment in combatting Medicaid fraud through a significant expansion of the Division’s Health Care Fraud Section, allocating funding to permit the hiring of 15 new Trial Attorney positions to combat Medicaid fraud across the United States.
Justice Department Requires Taiheiyo Cement Corporation and CalPortland Company to Divest Assets to Proceed with Acquisition of Ready-Mix Concrete Assets from Vulcan Materials CompanyRead the Press Release
The Justice Department’s Antitrust Division announced today that it will require Taiheiyo Cement Corporation and its subsidiary CalPortland Company to divest three ready-mix concrete plants along with related assets to address antitrust concerns arising from CalPortland’s proposed $712 million acquisition of ready-mix concrete assets from Vulcan Materials Company.
The civil antitrust lawsuit has been filed in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the proposed settlement filed alongside the complaint, if approved by the court, will address competitive concerns that the transaction would likely cause higher prices, lower quality, and less favorable terms for buyers of ready-mix concrete.
“Ready-mix concrete is a key input for construction and infrastructure projects across the country that are critical to strengthening the American economy,” said Acting Assistant Attorney General Omeed A. Assefi of the Antitrust Division. “The Division’s pursuit of structural remedies in this case provides a signal to the broader market about how to structure transactions that deliver efficiency to the market while protecting competition that benefits consumers.”
As alleged in the complaint, CalPortland and Vulcan are two of the leading suppliers of ready-mix concrete in San Diego County, already a highly concentrated market. Ready-mix concrete is essential to home construction, where it is used in foundations, driveways, patios, and swimming pools; commercial construction, where it is used in offices, hotels, warehouses, multi-family residences, and other commercial businesses; and infrastructure projects like bridges, tunnels, and highways.
The proposed settlement requires CalPortland and Vulcan to divest three ready-mix concrete plants in San Diego County to Holliday Rock Co., Inc., an American company with significant experience in ready-mix concrete and other building materials. Holliday Rock is expected to hire certain key CalPortland and Vulcan employees that today support the divested businesses.
Taiheiyo is a Japanese corporation with its headquarters in Tokyo. Taiheiyo operates in the United States through CalPortland, a corporation with its headquarters in Las Vegas, Nevada. Taiheiyo reported total revenues of more than $5.5 billion for fiscal year 2025.
Vulcan is a corporation with headquarters in Birmingham, Alabama. In 2025, Vulcan reported total revenues of approximately $7.9 billion.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days following the publication to Soyoung Choe, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700, Washington, DC 20530. At the conclusion of the public comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
EOIR Announces 77 Immigration Judges and 5 Temporary Immigration JudgesRead the Press Release
The Executive Office for Immigration Review (EOIR) announced the swearing in of 77 immigration judges and 5 temporary immigration judges – the largest class of new adjudicators in EOIR’s history, growing the total immigration judge corps to nearly 700. EOIR has hired 153 permanent immigration judges this fiscal year, the most in any single year in the agency’s history.
Acting Attorney General Todd Blanche and EOIR Director Daren K. Margolin delivered remarks, and Chief Immigration Judge Teresa L. Riley administered the oath of office during an investiture, which was held May 20, 2026, at the Department of Justice’s Great Hall in Washington, D.C.
“The Trump administration is committed to reestablishing an immigration judge corps that is dedicated to restoring the rule to the law in our nation’s immigration system,” said Acting Attorney General Todd Blanche. “Today, we are onboarding the largest immigration judge class in agency history. This could only happen thanks to President Trump’s decisive leadership and commitment to securing our borders. I also applaud EOIR’s leadership team for helping facilitate these hiring efforts and recruiting highly qualified and talented personnel in record time.”
After a competitive application process, the Acting Attorney General appointed Lucas I. Abbott, Shawn J. Abraham, Matthew N. Andrasko, Lauren M. Black, Christopher W. Bragg, Bradley R. Burke, André Carman, Brent Carr, Steven S. Chase, Kamra Sellers Craig, Jerome M. Day, Deborah D. Dictson, Richard J. Douglas, Meredith Duff, Bradly P. Duvall, Robert G. Eastman, Megan H. Eyes, Peter C. Faerber, Omar J. Famada, Terexa Fan, Thomas B. Fighter, Kenneth Flesch, Christopher R. Ford, Mary Foster, Kathryn E. Frames, Johanna Gaymer, Taylor A. Gillespie, James K. Glober, David J. Green, Jared L. Grimmer, Michael J. Gross, Benedict “Ben” S. Gullo, Damona Taef Hakiman, Shannon R. Holderfield, Richard S. Holloway, Kimberly B. Jeter, Graciela M. Jiron, Frank A. Jury II, Denise Kallas, Nadeem R. Kasam, Jean M. Kilker, Clayton M. Lawrence, Kerri N. Lechtrecker, Adrien Lee-Lo, Kieth E. Lipiec, Joseph Martinez, Robert A. McBride, Zachary McFarland, John E. Moriarty, Craig A. Newell Jr., Michael Matthew Osterberg, Robert G. Palmer, Jonathan Daniel Pelletier, Bayleigh J. Pettigrew, Anthony A. Picione, Jaime Poarch, Keira A. Poellet, Bill Radin, James M. Rice, Phoebe D. Riner, Jeremy A. Rovinsky, Sarah Sawwan, Thomas J. Shusted Jr., Paul Edmond Stephan, Rhonda M. Tucker, Amy Sigmon Walker, Natalie Walker, Matthew C. Wallace, Patricia Walter, Eric Wang, Wayne J. Warf, Thomas C. Weisert, Jennifer S. Wells, Nicole I. Wells, Devin A. Winklosky, Daniel J. Wright, and Maureen H. Zumwalt to their new positions as immigration judges, and Casey S. Caton, Paul J. Hornick, Kiley R. Hyatt, Jared J. Monaco, and Lisa M. Strader to their new positions as temporary immigration judges.
Reducing the immigration court backlog remains one of the highest priorities for the agency. Since January 20, 2025, EOIR has completed more than 1.08 million cases and has reduced its pending caseload in immigration courts by more than 447,000 cases, bringing the pending caseload down from approximately 4 million to under 3.53 million, the sharpest decrease in caseload in EOIR’s history.
All EOIR immigration judges, including temporary immigration judges, undergo the same robust training program. Biographical information with their qualifications and court assignments for each new judge can be found on EOIR’s webpage.
Civil Rights Division Oversees a Record $18.25 Million Back-Pay Distribution to U.S. Workers Harmed by Apple’s Past Hiring and Recruitment PracticesRead the Press Release
The United States Department of Justice’s Civil Rights Division announced that $18.25 million in back pay has been processed for U.S. workers as part of a previously announced settlement with Apple, Inc. (“Apple”).
The Department opened an investigation into Apple in 2019 under the first Trump administration, as part of the Protecting U.S. Workers Initiative (“Initiative”). After finding that Apple’s hiring and recruitment practices deterred U.S. workers from applying to positions, the Department settled the matter in 2023 for $18.25 million in back pay to compensate qualifying U.S. workers and $6.75 million in civil penalties.
“The Civil Rights Division will keep fighting for U.S. workers and will hold companies accountable for favoring temporary visa holders for American jobs,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We appreciate Apple’s cooperation to ensure that this settlement was fully implemented.”
The claims administration process for this resolution involved a thorough and individualized assessment of thousands of potential claimants, including a review of each U.S. worker’s lost income to determine exact back-pay amounts for each qualifying U.S. worker. The Department’s oversight over this complex process ensured exhaustion of the entire back-pay fund and that Apple compensated qualifying U.S. workers harmed by its past practices.
In addition to monetary relief, the settlement also required Apple to give U.S. workers greater opportunities to apply for positions advertised as part of Permanent Labor Certification (“PERM”) recruitment. These changes included requiring Apple to post PERM positions on its external job website, accept electronic applications, and train its employees on the anti-discrimination requirements of the Immigration and Nationality Act (“INA”).
Since the January 2025 relaunch of the Initiative, the Department has obtained eleven settlements to enforce the INA’s prohibition on citizenship status discrimination against companies that illegally discriminate against U.S. workers in favor of those with temporary employment visas. For information about additional settlements under the Protecting U.S. Workers Initiative, visit IER’s website.
The public can call IER’s free hotline at 1-800-255-7688 for workers or at 1-800-255-8155 for employers (1-800-237-2515, TTY for hearing impaired) for informal assistance between 9am and 5pm Eastern Time, Monday - Friday; sign up for a live webinar or watch an on-demand presentation; email [email protected]; or visit www.justice.gov/ier.
United States Unseals Superseding Indictment Charging Raul Castro and Five Castro Regime Co-Defendants for 1996 Shoot-Down of Brothers to the Rescue AircraftRead the Press Release
Raul Modesto Castro RuzThe U.S. Department of Justice today announced the unsealing of a superseding indictment charging Raul Modesto Castro Ruz, 94, of Holguin, Cuba; along with Lorenzo Alberto Perez‑Perez of Las Tunas, Cuba; Emilio José Palacio Blanco; José Fidel Gual Barzaga; Raul Simanca Cardenas; and Luis Raul Gonzalez‑Pardo Rodriguez, for their alleged roles in the Feb. 24, 1996 shoot‑down of two unarmed U.S. civilian aircraft operated by Brothers to the Rescue (BTTR), also known as Hermanos al Rescate, over international waters.
“Over three decades later, we are committed to holding those accountable for the murders of four brave Americans: Carlos Costa, Armando Alejandre Jr., Mario de la Peña, and Pablo Morales,” said Acting Attorney General Todd Blanche. “For the first time in nearly 70 years, senior leadership of the Cuban regime has been charged in the United States for alleged acts of violence resulting in the deaths of American citizens. President Trump and this Justice Department are committed to restoring a simple principle: if you kill Americans, we will pursue you. No matter who you are. No matter what title you hold.”
“Today’s superseding indictment of Raul Castro and five Castro regime co-defendants is a major step toward accountability in the 1996 murders of four Brothers to the Rescue members - including three U.S citizens - Carlos Costa, Armando Alejandre Jr, Mario de la Pena, and Pablo Morales,” said FBI Director Kash Patel. “For 30 years these families have waited for answers - and this FBI never forgot. We will continue working with our Justice Department partners to bring to justice those who attacked our civilians.”
“For 30 years, the families of these men have waited. The Miami community has waited. Our country has waited. Today is a step toward accountability,” said U.S. Attorney Jason A. Reding Quiñones for the Southern District of Florida. “This passage of time does not erase murder. It does not diminish the value of these lives. And it does not weaken our commitment to the rule of law.”
BTTR was an organization based in Miami that conducted humanitarian flight operations across the Florida Straits to search for Cuban migrants in distress. As alleged, beginning in the early 1990s, Cuban intelligence agents infiltrated the organization and relayed detailed information about its flight operations back to the Cuban government. These reports were allegedly used by military leadership in planning the Feb. 24, 1996 operation.
The superseding indictment charges conspiracy to kill U.S. nationals, two counts of destruction of aircraft, and four counts of murder.
According to the allegations, on Feb. 24, 1996, three BTTR aircraft flew from South Florida toward Cuba. Cuban military fighter jets under the chain of command overseen by Raul Castro fired air‑to‑air missiles at two unarmed civilian Cessna aircraft — destroying them without warning while they were flying outside Cuban territory, killing four U.S. nationals, including three U.S. citizens: Carlos Costa, Armando Alejandre Jr., Mario de la Peña and Pablo Morales.
Rodriguez in a MiG fighter jetThe indictment further alleges that, in the weeks prior to the attack, Cuban military pilots conducted training exercises designed to locate and intercept slow‑moving civilian aircraft. On the day of the incident, three BTTR planes departed from Opa‑locka Airport for a planned humanitarian flight south of the 24th parallel. Two of the aircraft — tail numbers N2456S and N5485S — were allegedly targeted and shot down in international airspace, resulting in the deaths of all four victims.
If convicted, the defendants face a maximum penalty of death or life imprisonment on the murder and conspiracy to kill U.S. nationals counts. Castro Ruz and Perez-Perez face up to five years in prison for each of the destruction of aircraft counts. The statutory maximum penalties are prescribed by Congress and provided here for informational purposes only, as the sentencing of any defendant will be determined by a judge.
Luis Raul Gonzalez‑Pardo Rodriguez, 65, of Havana, Cuba, is in U.S. custody pending sentencing later this month in the Middle District of Florida for making false statements in an immigration document.
Luis Raul Gonzalez-Pardo Rodriguez and Lorenzo Alberto Perez-PerezThe U.S. Attorney’s Office also acknowledged the assistance of the Florida Attorney General’s Office. “We are grateful for the support provided by Attorney General James Uthmeier and his team during this investigation,” said U.S. Attorney Reding Quiñones.
Today’s announcement is in conjunction with a ceremony at the Freedom Tower in Miami to honor the victims. Participants at today’s press conference included Acting Attorney General Blanche, U.S. Attorney Reding Quiñones, U.S. Senator Ashley Moody, Deputy Director Christopher G. Raia of the FBI, and Florida Attorney General James Uthmeier.
Assistant U.S. Attorneys Abbie D. Waxman and Michael E. Gilfarb for the Southern District of Florida are prosecuting the case, with the investigation led by the FBI Miami Field Office.
An indictment is merely an allegation. All defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Guam Man Sentenced for Theft of Government Property After Stealing Deceased Wife’s Social Security BenefitsRead 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 Benavente Wusstig, age 59, from Yigo, Guam was sentenced to six months imprisonment for Theft of Government Property, in violation of 18 U.S.C. § 641. The Court also ordered three years of supervised release, $58,248 restitution to the Social Security Administration, forfeiture money judgment of $58,248, and a $100 special assessment fee.
From September 2018 to December 31, 2023, Wusstig unlawfully received $58,248 in disability benefits for his wife from the Social Security Administration (“SSA”). Wusstig had served as a representative payee for his wife. After she died in August 2018, Wusstig never informed the SSA and continued to receive and spend the benefits intended for his wife. SSA paid the disability benefits through direct deposit to a joint account held in their names. Wusstig accessed the funds primarily through ATM withdrawals and Point of Sale purchases made at convenience stores, restaurants, supermarkets and gas stations.
“The Social Security Administration provides disability insurance benefits to people who have a disability that stops or limits their ability to work and who have a sufficient work history,” stated United States Attorney Anderson. “The loss of a family member, however, should not become an opportunity for unjust enrichment at taxpayer expense. Maintaining the viability of this important program is worthy of criminal enforcement action. We will continue to do so in an effort to eliminate waste, fraud, and abuse.”
“Social Security disability benefits are intended to provide critical support to eligible beneficiaries, not to be exploited for personal gain,” said Michelle L. Anderson, Assistant Inspector General for Audit as First Assistant for the SSA Office of the Inspector General. “We will continue to aggressively pursue those who misuse federal benefit programs and safeguard the public’s trust in the Social Security Administration.”
This investigation was led by the SSA – Office of the Inspector General and prosecuted by First Assistant United States Attorney Marivic P. David for the District of Guam.
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.
Guam Bingo Operators Receive Federal Prison Sentences for $34 Million Fraud SchemeRead the Press Release
Hagåtña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announces the following sentencings:
Jose Arthur D. Chan, (Art Chan) Jr., his spouse, Christine C. Chan, and Michael L. Marasigan received custodial sentences set forth below. On May 13, 2025, they were convicted by a jury in the District Court of Guam for Conspiracy to Operate Illegal Gambling Business in violation of 18 U.S.C. §§ 371 and 1955(a), Money Laundering Conspiracy in violation of 18 U.S.C. §§1956(h), 1956(a)(1)(B)(i) and 1957, and Conspiracy to Commit Wire Fraud in violation of 18 U.S.C. §§ 1349 and 1343. Christine Chan and Marasigan were also found guilty of multiple counts of Money Laundering in violation of 18 U.S.C. § 1957.
Jose Arthur D. Chan, Jr., age 77, from Dededo, sentenced on May 12, 2026, to 60 months in federal prison, joint and several restitution of $10,750,804 to the Aloha Shriners, $339,013 money judgment forfeiture, and $300 mandatory assessment fee.
Christine C. Chan, age 64, from Dededo, sentenced on May 12, 2026, to 70 months in federal prison, $10,750,804 joint and several restitution to the Aloha Shriners, $871,500 money judgment forfeiture, and $2,700 mandatory assessment fee.
Fugitive Michael L. Marasigan, age 54, from Dededo, was sentenced in absentia on May 18, 2026, to 262 months in federal prison, $10,750,804 joint and several restitution to the Aloha Shriners, $5,871,493 money judgment forfeiture, and $6,500 mandatory assessment fee.
Evidence at trial showed that between March 2015 and December 31, 2021, the Chan couple, Marasigan and other defendants participated in a conspiracy, fraud scheme, and illegal gambling operation involving the Guam Shrine Club (“GSC”) and its Hafa Adai Bingo parlor in Tamuning. Art Chan served as Vice-President and President of the GSC, a non-profit organization that purported to fund the travel expenses of children and one parent or guardian to the Shriner’s Hospital for Children in Hawaii for medical care. The defendants defrauded the public and bingo patrons based on false representations that bingo fundraising proceeds would be used for GSC’s charitable purpose. During the conspiracy, Hafa Adai Bingo generated approximately $34 million gross bingo proceeds. The defendants diverted and laundered $10,750,804 net bingo proceeds for their personal gain that should have gone to the Aloha Shriners, which has Shrine jurisdiction over Guam.
According to GSC bank records, during 2015-2020 approximately $140,378 of bingo proceeds were used to pay the Aloha Shriners and for air transportation, and in 2021, no bingo proceeds were used for GSC’s charitable purpose.
The following defendants entered guilty pleas and testified for the government at trial:
Juanita Capulong, age 73, from Tamuning, pled guilty to conspiracy to operate illegal gambling business; money laundering conspiracy, and money laundering, and on May 13, 2026, received a concurrent sentence of four years of probation. She was ordered to pay a $500 fee, restitution of $479,075.97 to the Aloha Shriners, and money judgment forfeiture of $138,854.
Minda C. San Nicolas, age 71, from Dededo, pled guilty to conspiracy to operate illegal gambling business, and money laundering, and on May 13, 2026, received a concurrent sentence of three years of probation. She was ordered to pay a $300 fee, restitution of $433,921.58 to the Aloha Shriners, and money judgment forfeiture of $147,599.
Alfredo Leon Guerrero, age 90, from Tamuning, pled guilty to money laundering conspiracy and on May 13, 2026, received a sentence of time served (one day), one-year supervised release, and ordered to pay a $100 fee, and restitution of $1,095,907.95 to the Aloha Shriners.
Won Sun P. Min, age 62, from Sinajana pled guilty to money laundering conspiracy on February 8, 2023. On May 19, 2026, she was sentenced to time served (one day), three years supervised release, and ordered to pay a $100 fee, restitution of $2,326,180.23 to the Aloha Shriners, and money judgment forfeiture of $906,400.
“These defendants traded on the reputation of the Shriners Children’s healthcare system to perpetrate their multi-million-dollar fraud,” stated United States Attorney Anderson. “It was an unconscionable means to personal gain. We will make every effort to enforce restitution and ensure that Marasigan and the Chans spend every day of their sentences in federal prison.”
“Being charitable demonstrates the best in people – it is selflessness in action. This is in stark contrast to the selfishness and greed displayed in this case, which deliberately preyed on the charity of our friends and neighbors and stole millions of dollars from those who needed it most,” said Special Agent in Charge Carrie Nordyke, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Financial crime is not victimless; real people suffer its devastating effects. Protecting our communities from financial crime is core to our agency, and we are fully committed to carrying out this mission each and every day.”
“These defendants defrauded their own community, taking charity money meant for sick children and using it for their own financial gain,” said FBI Honolulu Special Agent in Charge David Porter. “These crimes are particularly offensive because they undermine the public’s faith in charitable giving. The FBI will continue to aggressively pursue these cases and hold criminals accountable.”
This case was investigated by the Federal Bureau of Investigation and IRS-CI. First Assistant U.S. Attorney Marivic David prosecuted the case in the District of Guam.
Antitrust Division Secures Seed Tying and Loyalty Program Commitments from BayerRead the Press Release
Today, the Department of Justice announced that during the course of the Antitrust Division’s ongoing investigation into exclusionary conduct in corn and soybean seed markets, Bayer CropScience LLC has removed potentially anticompetitive provisions from its loyalty program. These changes benefit American consumers, farmers, and independent seed companies, which license seed technology from Bayer to produce seeds to meet the needs of farmers. In response to the Division’s concerns, Bayer has committed to not reinstate these provisions for seven years.
“American farmers deserve competitive markets, not contractual restrictions that limit choice and innovation," said Associate Attorney General Stanley Woodward. "This Department of Justice will use every appropriate tool to protect farmers and preserve competition.”
“Enforcement in agriculture is a top priority for the Antitrust Division,” said Acting Assistant Attorney General Omeed A. Assefi of the Justice Department’s Antitrust Division. “We are focused on conduct that poses competitive harm to both farmers and consumers.”
“I commend Acting Attorney General Blanche and the Antitrust Division of the Department of Justice (DOJ) for securing commitments from input giant Bayer CropScience LLC to remove unfair provisions from its loyalty program for certain seeds,” said U.S. Secretary of Agriculture Brooke Rollins. “These actions build upon our 2025 USDA-DOJ Memorandum of Understanding strengthening competition in agricultural supply chains for our farmers, who are among the best in the world. We must celebrate this great progress, while acknowledging there’s much more work to be done!”
“Loyalty programs that discourage customers from switching to alternative sellers pose a danger to competition,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “We are pleased that Bayer has taken these actions addressing competitive concerns of the Division about Bayer’s loyalty program.”
Bayer has made two important changes to its “Premier Performance Program,” a key subject of the Division’s scrutiny. First, Bayer’s Premier Performance Program previously required independent seed companies to meet sales targets for both corn and soybean to achieve discounts under its loyalty program. This contractual restraint raised concerns that Bayer was anticompetitively tying corn seed and soybean seed. Bayer dropped the tie between corn seed and soybean seed for the 2025 planting year. In response to the Division’s concerns, Bayer has now committed to not reinstate the tie for seven years.
Second, the Premier Performance Program formerly included incentives that could limit independent seed companies’ willingness to license technology from Bayer’s competitors. Bayer eliminated these potentially anticompetitive provisions from its loyalty program. In response to the Division’s concerns, Bayer has committed to not reinstate these incentives, or any substantially similar incentive program, for seven years.
Anyone with information about anticompetitive conduct in agricultural industries or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected].
Bayer CropScience LLC — headquartered in Creve Coeur, Missouri — is one of the largest seed companies in the world. It is the primary source for traited corn seed sold by independent seed companies.
Three Members of International Criminal Organization Sentenced to Lengthy Sentences in $2 Billion Telemedicine Healthcare Fraud SchemeRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Anthony Santamaria was sentenced by U.S. District Judge William F. Kuntz II to 10 years in prison for his participation in an approximately $2 billion international health care fraud conspiracy. Santamaria is the third member of a Moscow-based criminal organization sentenced this month in connection with the scheme. Co-defendants Hershel Tsikman and Hafizullah Ebady were sentenced earlier this month to 120 months’ and 97 months’ imprisonment, respectively. In addition to the terms of imprisonment, Judge Kuntz ordered Santamaria to forfeit $3.2 million and Ebady to forfeit more than $1.8 million. Additionally, all three defendants were ordered to pay restitution to their victims in an amount to be determined at a later date. A fourth defendant, Dela Saidazim, was sentenced to time served in December 2022. Three additional co-defendants, David Bishoff, Brycen Millett and Joshua Alegria, are awaiting sentencing. An eighth co-defendant and the leader of the criminal organization, Brian Sutton, a U.S. citizen who is believed to be residing abroad, remains at large.
“This Moscow-based criminal organization provided anything but health care,” said Assistant Attorney General for the National Fraud Enforcement Division Colin M. McDonald. “Through aliases, encrypted communications, shell companies, and straw owners, these defendants siphoned nearly $2 billion from private insurers that provide services to American patients. They executed a brazen international fraud scheme involving sham call centers, ghost telemedicine visits, and remotely controlled pharmacies—with many patients never receiving the medication. The Justice Department will continue to aggressively identify, target, and prosecute those who defraud America’s health care system.”
“For over five years, the defendants built a sophisticated, international criminal organization that employed scores of call center employees and remote-billers to steal hundreds of millions of dollars from American businesses and launder the stolen monies overseas,” said U.S. Attorney Joseph Nocella Jr. for the Eastern District of New York. “Despite the defendants’ aliases, encrypted messaging platforms, shell companies and straw owners, even operating from overseas, they are now being held accountable. Our Office and our law enforcement partners will continue to dismantle complex health care fraud networks and hold every responsible actor accountable.”
“The takedown of this international criminal organization sends a clear message that those who exploit our American healthcare system for profit – no matter where they operate – will be identified, investigated, and prosecuted,” said FBI Assistant Director in Charge James Barnacle Jr.
According to court filings and proceedings, between 2017 and 2022, the defendants engaged in an international scheme to fraudulently bill private health care benefit programs (the Private Insurers). They executed their scheme by having call centers they controlled, initially in Utah and later in Russia, contact beneficiaries enrolled with the Private Insurers and offer medications at no cost to the beneficiaries and without any medical exams to determine if the medications were necessary. Regardless of whether the beneficiaries agreed to receive these medications, the defendants generated fraudulent prescriptions for the medications for these beneficiaries. The defendants also recruited doctors purportedly to review prescriptions by nurse practitioners and physician’s assistants after telemedicine visits. Contrary to what the recruited doctors were told, in most cases there were no telemedicine visits between the beneficiaries and any medical professionals. The defendants generated fraudulent prescriptions under the physicians’ names and National Provider Identifier numbers. Despite the prescriptions, many beneficiaries never received the medications.
The defendants also acquired pharmacies across the United States with pre-existing relationships with the Private Insurers and trained and managed teams of Moscow-based “billers” to input data and remotely submit electronic reimbursement requests for the fraudulent prescriptions through those pharmacies. The defendants submitted over $1.97 billion in fraudulent prescriptions according to third-party billing records. Private Insurers paid over $758 million as a result of those fraudulent submissions.
To conceal their involvement in the scheme, the defendants operated under multiple aliases, funneled hundreds of millions of dollars through pass-through shell companies and straw owners, used end-to-end encrypted communications and moved operations overseas. Specifically, the defendants purchased and operated dozens of existing brick-and-mortar pharmacies through straw owners, including in Brooklyn, Staten Island, Manhattan, Long Island, New Jersey, Pennsylvania, Texas, Michigan and Alabama. The defendants also laundered millions of dollars in fraudulent proceeds from overseas through pass-through shell companies that they used to purchase the scheme pharmacies and conceal the defendants’ involvement.
Under Sutton’s direction, the defendants played various roles in the scheme, including as follows:
- Alegria oversaw development of custom software and forwarded fraudulent prescriptions to licensed physicians for approval;
- Bishoff coordinated logistics for the operations of multiple scheme pharmacies;
- Ebady coordinated the purchase of and was the “boots-on-the-ground manager” for at least 30 scheme pharmacies;
- Millett oversaw call centers in Utah, Russia and elsewhere overseas;
- Saidazim recruited licensed physicians and acted as Sutton’s personal assistant;
- Santamaria trained and managed teams of billers to input data and remotely submit fraudulent requests for reimbursement to insurers; and
- Tsikman coordinated the laundering of fraud proceeds through straw owners and shell entities for at least 30 scheme pharmacies, and personally wired millions of dollars internationally.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant U.S. Attorneys John Vagelatos, Jessica K. Weigel, Jonathan P. Lax and Tara B. McGrath for the Eastern District of New York are in charge of the prosecution, with the assistance of Paralegal Specialist Melina Piatti-Chayan. Assistant U.S. Attorney Claire S. Kedeshian for the Eastern District of New York is handling forfeiture matters.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Justice Department Announces Formation of Advisory Committee on Anti-SemitismRead the Press Release
WASHINGTON — The Department of Justice today announced continued efforts to combat antisemitism nationwide through the forthcoming launch of the Anti-Semitism Advisory Committee (ASAC), a new advisory body that will provide recommendations to the Attorney General and the Department of Justice on strategies to address the rising tide of antisemitism across the United States. The initiative builds on President Donald Trump’s historic and unwavering efforts to combat antisemitism, including his directive that the federal government use every available legal tool to protect Jewish Americans and confront antisemitic discrimination and violence.
The Committee will support the United States’ policy to combat antisemitism vigorously, consistent with Executive Orders 13899 (Combating Anti-Semitism) and 14188 (Additional Measures to Combat Anti-Semitism), while furthering the Department of Justice’s mission to protect civil rights.
“President Trump has made combating antisemitism a top priority for this Administration, and we thank Leo Terrell for his leadership at the Department of Justice in helping to carry out this mission,” said Acting Attorney General Todd Blanche. “Protecting civil rights of every American remains a core responsibility of the Department of Justice.”
Associate Attorney General Stanley Woodward, who has supervisory responsibility for overseeing the Department’s respect for religious liberty in litigation, emphasized the Department of Justice’s commitment to protecting Americans from unlawful discrimination and antisemitic threats.
“President Trump has made combating antisemitism a national priority because no American should live in fear because of their faith,” said Associate Attorney General Stanley Woodward. “This Administration is using every tool available to confront antisemitic threats, support local communities, and ensure that radical activists and violent extremists do not intimidate law-abiding Americans. The Department of Justice will act aggressively to protect civil rights and uphold public safety.”
Leo Terrell, Chair of the DOJ Task Force to Combat Anti-Semitism, will lead the ASAC. The Committee will provide advice and recommendations to the Attorney General and Department of Justice leadership on coordinated, timely, and effective responses to antisemitism.
The ASAC will consist of citizen leaders dedicated to combatting antisemitism, subject to approval by the President. Members will come from a wide range of backgrounds but share a common goal of developing innovative solutions to address antisemitism across the country.
Follow @TheJusticeDept, @DAGToddBlanche, @ASGWoodward, and @LeoTerrellDOJ for updates.
If you have been discriminated against, you can file a complaint with the Civil Rights Division at civilrights.justice.gov. President Trump’s Executive Order can be found at www.whitehouse.gov/presidential-actions/2025/01/additional-measures-to-combat-anti-semitism/.
Federal Task Force to Combat Anti-Semitism Announces 15-City National Awareness & Action TourRead the Press Release
WASHINGTON — The Department of Justice Task Force to Combat Anti-Semitism today announced the launch of a 15-city National Awareness & Action Tour to combat antisemitism. The nationwide initiative reflects President Donald Trump’s unprecedented campaign to confront antisemitism across America. President Trump declared war on antisemitism in a way no other president has done. His actions include Executive Orders 13899 (Combating Anti-Semitism) and 14188 (Additional Measures to Combat Anti-Semitism). As the agency that enforces the nation’s civil rights laws, the Department of Justice is committed to carrying out that mission.
The goals of the tour include:
- Increasing reporting of antisemitic incidents by local officials;
- Strengthening collaboration between local law enforcement, federal agencies, and Jewish communities;
- Strengthening broad interfaith opposition to antisemitism among Jewish, Baptist Christian, Catholic, and Muslim communities; and
- Addressing antisemitism in K-12 schools and teacher unions to ensure students are protected from discrimination and harassment.
“President Trump has made clear that this Administration will not tolerate antisemitism, and the Department of Justice is committed to implementing that directive,” said Acting Attorney General Todd Blanche. “This national tour is an important step in ensuring communities across the country know the federal government stands ready to work with them to confront antisemitic threats, protect public safety, and uphold civil rights.”
Associate Attorney General Stanley Woodward, who oversees key civil enforcement components and respect for religious liberty in litigation, emphasized the Department of Justice’s commitment to protecting Americans from unlawful discrimination and antisemitic threats.
“Jewish Americans deserve to live, work, worship, and send their children to school without fear of harassment, intimidation, or violence,” said Associate Attorney General Stanley Woodward. “Under President Trump’s leadership, the Department of Justice is taking a far more serious and coordinated approach to combating antisemitism than Americans have seen in years. This Committee will help ensure the federal government remains focused, proactive, and relentless in protecting civil rights and confronting antisemitic discrimination wherever it appears.”
Leo Terrell, Chair of the DOJ Task Force to Combat Anti-Semitism, will lead the Tour. He will meet with individuals and local communities impacted by antisemitism and work to identify practical solutions to combat antisemitism at the local level.
Follow @TheJusticeDept, @DAGToddBlanche, @ASGWoodward, and @LeoTerrellDOJ for updates. If you have been discriminated against, you can file a complaint with the Civil Rights Division at civilrights.justice.gov. President Trump’s Executive Order can be found at www.whitehouse.gov/presidential-actions/2025/01/additional-measures-to-combat-anti-semitism/.
Owner of California Medical Companies Pleads Guilty to Stealing More than $1 Million in Pandemic Relief FundsRead the Press Release
The owner of two Southern California non-emergency ambulatory companies pleaded guilty today to wire fraud and money laundering.
According to court documents and statements made in court, Mehrdad Tabrizi was the sole owner of Life Fleet Inc. and Resonante Group, two medical businesses based in Orange County. During the COVID-19 pandemic, Tabrizi used these two companies to defraud the U.S. Small Business Administration (SBA) out of more than $1 million of COVID-19 relief funds from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, two government programs intended to provide financial assistance to Americans suffering economic harm during the COVID-19 pandemic. In May 2020 and March 2021, Tabrizi submitted two fraudulent PPP loan applications falsely claiming Life Fleet Inc. was in operation and had employees that received wages in 2019 and 2020. In fact, Tabrizi had shuttered the company in 2018, and it had been non-operational since then. As a result of these fraudulent applications, the SBA’s lending partner disbursed approximately $696,565 in PPP funds to bank accounts Tabrizi controlled.
In addition, in June and July 2020, Tabrizi submitted two fraudulent EIDL applications to the SBA falsely claiming that both Life Fleet Inc. and Resonate Group had gross revenues and paid for goods in the 12 months prior to January 2020. Because of these two fraudulent applications, the SBA transmitted an additional $319,800 to bank accounts Tabrizi controlled. Neither Life Fleet Inc. nor Resonate Group was entitled to receive any of these funds under either PPP or EIDL.
In May 2020, Tabrizi withdrew $60,000 of the fraudulently obtained money to help purchase a 2019 Porsche Turbo Cabriolet.
Tabrizi pleaded guilty to four counts of wire fraud and one count of money laundering. He is scheduled to be sentenced on September 28, 2026, and faces a maximum penalty of 20 years in prison for each count of wire fraud and 10 years in prison for money laundering. 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 First Assistant U.S. Attorney Bilal A. Essayli for the Central District of California made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Boris Bourget and John Gerardi 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.
Ohio Investment Manager Sentenced to Nine Years for $10M Cryptocurrency Ponzi SchemeRead the Press Release
An Ohio man was sentenced today to nine years in prison and three years of supervised release for orchestrating a cryptocurrency investment fraud scheme that raised over $10 million from investors, many of whom resided in or around Columbus, Ohio.
According to court documents, Rathnakishore Giri, 31, of New Albany, Ohio, misled investors by fraudulently promoting himself as an expert cryptocurrency trader, with a specialty in trading Bitcoin derivatives. Giri falsely promised investors that he would generate lucrative returns with no risk to their principal investment amount, which he guaranteed to return. In reality, Giri often used money provided by new investors to repay old investors – a hallmark of a Ponzi scheme. In addition, Giri had a record of investment failures, including a long history of losing investors’ principal investments, and misled investors about reasons for delays when they sought to cash out their investments or otherwise obtain the return of their “guaranteed” principal.
In October 2024, Giri pleaded guilty to one count of wire fraud. Following his guilty plea, while on pretrial release pending sentencing, Giri continued to solicit funds from cryptocurrency investors, causing additional harm to new victims. In advance of today’s sentencing, Giri admitted to this additional conduct pursuant to an amended plea agreement with the Department.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division and Special Agent in Charge Jason Cromartie of the FBI Cincinnati Field Office made the announcement.
The FBI investigated the case.
Acting Deputy Chief Lucy B. Jennings and Trial Attorney Tamara Livshiz of the Criminal Division’s Fraud Section prosecuted the case.
If you have been defrauded out of your money by a cryptocurrency investment fraud scheme, please contact the FBI’s Internet Crime Complaint Center at ic3.gov.
New York Business Owner Sentenced to Prison for Using Shell Companies to Launder Health Care Fraud Proceeds for Transnational Criminal OrganizationRead the Press Release
A New York man was sentenced today to 37 months in prison for conspiring to launder nearly $1.5 million in illicit health care fraud proceeds through multiple domestic and global banks on behalf of a Transnational Criminal Organization (Organization).
According to court documents, Elnar Zarbailov, 42, of Staten Island, New York, and dual citizen of the United States and Azerbaijan, was a fixer and money launderer for the foreign-based Organization that spearheaded the largest health care fraud case ever prosecuted by the Department of Justice, as uncovered by Operation Gold Rush. The Organization, based in Russia and elsewhere, orchestrated a multi-billion-dollar health care fraud and money laundering scheme to target, exploit, and steal from Medicare and private health insurance companies.
As alleged in charging documents, the Organization exploited the United States’ financial system by depositing insurance reimbursement checks from the fraud. The health care fraud proceeds were particularly susceptible to laundering because they originated from legitimate sources—Medicare and established private insurance carriers—giving the funds the initial appearance of legitimacy. To gain access to the United States’ financial system, the Organization deployed a range of tactics to circumvent internal controls at multiple banks and in some cases coordinated directly with associates employed at the banks.
As further alleged, to open financial accounts, the Organization armed its nominee owners, many of whom were not lawfully present in the United States, with false sale documentation and false corporate registration documents. This documentation falsely reflected that the nominee owners maintained beneficial ownership and control of various fraudulent durable medical equipment (DME) companies. This disguised the true beneficial ownership and control of the companies and the financial accounts. Upon opening the financial accounts, the Organization funneled fraud proceeds from Medicare and other legitimate health care insurers into the accounts as seemingly “clean” money. From there, the Organization siphoned off the funds to shell companies and various banks overseas.
Zarbailov facilitated a critical element of the transnational scheme. In furtherance of the conspiracy, Zarbailov deposited fraud proceeds from five DME companies linked to the scheme and transferred the fraud proceeds to other accounts, including accounts located overseas.
Zarbailov was arrested at John F. Kennedy International Airport in September 2024 as he attempted to leave the United States to Azerbaijan. He pleaded guilty to conspiracy to commit money laundering in October 2025. In addition to the prison term, Zarbailov was ordered to pay $1,457,898 in forfeiture.
Assistant Attorney General Colin M. McDonald of the Justice Department’s Fraud Division, Acting Deputy Inspector General for Investigations Scott J. Lampert for the Department of Health and Human Services Office of the Inspector General (HHS-OIG), and Chief Division Counsel Tony Costanza for the FBI New Haven for the FBI made the announcement.
HHS-OIG and FBI investigated the case. Homeland Security Investigations and the El Dorado Task Force assisted in the defendant’s arrest.
Assistant Chiefs Shankar Ramamurthy and Kevin Lowell, and Trial Attorneys Leonid Sandlar and Sara E. Porter, of the Criminal Division’s Fraud Section prosecuted the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Announces Anti-Weaponization FundRead the Press Release
The U.S. Department of Justice today announced that as a part of the settlement agreement in President Donald J. Trump v. Internal Revenue Service, the Attorney General established “The Anti-Weaponization Fund” to provide a systematic process to hear and redress claims of others who suffered weaponization and lawfare.
The plaintiffs in the case, President Donald J. Trump, Donald J. Trump, Jr., Eric Trump, and the Trump Organization, LLC, filed suit against the Treasury and IRS in Southern District of Florida federal court following the leak of their tax returns. Per the settlement, plaintiffs will receive a formal apology but no monetary payment or damages of any kind. They have agreed, in exchange for the creation of this fund, to drop their pending lawsuit with prejudice, and also withdraw two administrative claims including for damages resulting from the unlawful raid of Mar-a-Lago and the Russia-collusion hoax.
“The machinery of government should never be weaponized against any American, and it is this Department’s intention to make right the wrongs that were previously done while ensuring this never happens again,” said Acting Attorney General Todd Blanche. “As part of this settlement, we are setting up a lawful process for victims of lawfare and weaponization to be heard and seek redress.”
“The use of government power to target individuals or entities for improper and unlawful political, personal, or ideological reasons should not be tolerated by any Administration,” said Principal Associate Deputy Attorney General Trent McCotter.
The Fund will have the power to issue formal apologies and monetary relief owed to claimants. Submission of a claim is voluntary. There are no partisan requirements to file a claim. Any money left when the Fund ceases operations will revert to the Federal Government.
The Fund will receive $1.776 billion and will come from the judgment fund, which is a perpetual appropriation allowing DOJ to settle and pay cases. On a quarterly basis, the Fund shall send a report to the Attorney General outlining who has received relief and what form of relief was awarded.
At the Attorney General’s direction, the Fund can be audited. The Fund must take steps to protect private information and avoid fraud. The Fund shall cease processing claims no later than December 1, 2028.
There is legal precedent for such a Fund, most notably the “Keepseagle” case where the Obama Administration created a $760 million fund to redress various claims alleging racism against the federal government over a period of decades.
In Keepseagle, hundreds of millions of dollars remaining in the fund were distributed to non-profits and NGOs that never made claims, whereas any money remaining in The Anti-Weaponization Fund will revert to the federal government. The Obama DOJ settled by putting $680 million from the judgment fund into a bank account for a single claims administrator to dole out. In Keepseagle the remaining money—which ended up being over $300 million—was distributed to the entities that had not even submitted claims.
The Fund will consist of five members appointed by the Attorney General. One Member will be chosen in consultation with congressional leadership. The President can remove any member, but a replacement must be chosen the same way as the replaced member was selected.
Michigan Home Health Care Agency Owner Convicted of $1.6M Medicare Fraud Scheme and Kickback ConspiracyRead the Press Release
A federal jury in the Eastern District of Michigan convicted a Michigan nurse and home health care agency owner yesterday for operating a $1.6 million scheme to defraud Medicare.
According to court documents and evidence presented at trial, Ruby Scott, 55, of Farmington Hills, Michigan, owned and operated Delta Home Health Care LLC (Delta). From 2018 through 2021, Scott bribed a discharge nurse at a Detroit hospital to identify Medicare patients and fax their confidential records to Delta, unbeknownst to the patients. Scott had developed the kickback relationship with the hospital discharge nurse at a home health company she had previously co-owned, but she offered the nurse an additional $100 patient to induce her to refer patients to her new company. Scott paid the discharge nurse over $130,000 by CashApp, PayPal, check, and cash. Scott used these stolen profiles to bill Medicare for home health services, exploiting the diagnostic and personal information of patients who were unaware their data had been compromised.
The evidence at trial showed that Scott paid the discharge nurse approximately $300 for each patient Scott successfully billed to Medicare. In billing claims for patients who were obtained through kickbacks, as well as other claims between 2018 and 2024, Scott falsely represented to Medicare that a doctor had certified patients as meeting the Medicare requirements to receive home health services, including being homebound, when evidence proved no doctor had ever evaluated these patients for home health services. In many instances, Scott used the identities of real doctors to fabricate the existence of these evaluations when, in reality, these doctors had never even met the patients and did not know that Scott was using their information to fraudulently bill Medicare. A witness testified one patient for whom Delta received thousands of dollars in payments had never received services from Scott’s company. Delta failed to maintain patient files for over one-third of the patients for which it submitted claims to Medicare, for whom Medicare paid Delta over $1.2 million. Scott caused approximately $1.6 million in losses to Medicare, which a witness testified drains the Medicare trust fund and could make it difficult for Medicare to pay on claims that are true and accurate.
The jury convicted Scott of five counts of health care fraud, conspiracy to defraud the United States and pay illegal health care kickbacks, and four counts of paying illegal health care kickbacks. She is scheduled to be sentenced on Sept. 24 and faces a maximum penalty of 10 years in prison as to each health care fraud count, a maximum penalty of 10 years in prison as to each kickback count, and a maximum penalty of five years in prison as to the conspiracy count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division; Special Agent in Charge Reuben Coleman of the FBI Detroit Field Office; and Special Agent in Charge Thomas Ethridge of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI Detroit Field Office and HHS-OIG investigated the case.
Trial Attorneys Kelly M. Warner and Ahmad Huda of the Criminal Division’s Fraud 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.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.Maryland Tax Return Preparer Sentenced to Prison for Preparing False ReturnsRead the Press Release
A Maryland woman was sentenced today to 12 months and one day in prison for preparing false tax returns for clients.
According to court documents and statements made in court, Zewdi Tsegay, of Burtonsville, Maryland, operated a tax preparation business initially called Taxes R Us LLC. From 2017 through 2023, Tsegay prepared and filed with the IRS false tax returns on behalf of clients. These tax returns included false business losses that resulted in either the clients receiving tax refunds that they were not entitled to receive or the clients’ tax liabilities being decreased. After Tsegay learned she was under investigation, she changed the name of the business to Taxes 4 You, LLC.
In March 2020, the IRS conducted an undercover operation at Tsegay’s return preparation business. Tsegay initially prepared the undercover agent’s tax return correctly, which reflected that the undercover agent owed taxes. Tsegay then added a fictitious business loss to the undercover agent’s tax return, which resulted in the return improperly claiming a refund. Following a search warrant at her tax preparation business, Tsegay continued to prepare and file false returns on behalf of clients under the name of another individual. Further, from 2021 to 2023, Tsegay was required to file tax returns for herself, but she willfully failed to do so by the statutory deadline.
In total, Tsegay caused a tax loss to the United States between $250,000 and $550,000.
Tsegay pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return. In addition to the term of imprisonment, U.S. District Judge Theodore D. Chuang ordered Tsegay to serve one year of supervised release and to pay $178,480 in restitution to the United States.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Catriona Coppler and Richard Kelley 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 Secures Landmark Resolution to End Pediatric “Gender-Affirming Care” and Create Detransition ClinicRead the Press Release
Today, the Department of Justice announced the first resolution secured under the Department’s ongoing national investigation into violations of federal law in connection with the provision of sex-rejecting procedures on minors (often euphemistically called “gender-affirming care”). Texas Children’s Hospital (TCH) has entered into agreements with the Department and the Texas Attorney General that include commitments to not perform such procedures on children, which include the administration of puberty blockers and cross-sex hormones. TCH has also agreed to collectively pay over $10 million in damages and civil penalties and to dedicate millions to the provision of medical care to children harmed by the provision of such procedures (i.e., “detransitioners”).
“The Justice Department will use every weapon at its disposal to end the destructive and discredited practice of so-called ‘gender-affirming care’ for children,” said Acting Attorney General Todd Blanche. “Today’s resolution protects vulnerable children, holds providers accountable, and ensures those harmed receive the care they need.”
Under the terms of the agreements, which the Department of Justice reached in coordination with Texas Attorney General Ken Paxton, TCH will pay $10 million to resolve allegations that it submitted false billings to public and private payors to secure insurance coverage for pediatric sex-rejecting procedures. The Department alleges this conduct violated the Federal Food, Drug, and Cosmetic Act, the False Claims Act, and federal fraud and conspiracy laws. Critically, in addition to terminating these services, TCH has committed to establishing the first-of-its-kind clinic dedicated to restorative care for detransitioners.
In connection with the settlements, the United States acknowledged that TCH took significant steps entitling it to credit for cooperation with the Department in its investigation. At all times during the investigation, TCH remained cooperative, proactive, and solution-driven, as highlighted by its multi-million-dollar commitment to providing care to the victims who most need it.
“The Department of Justice is committed to protecting America’s children,” said Associate Attorney General Stanley Woodward. “Today’s resolution furthers that commitment and puts providers of so-called 'gender affirming care' on notice that this Department will vigorously enforce federal law where children are put at risk.”
“I am grateful that Texas Children’s wants to be part of the solution and no longer the problem,” said Brett A. Shumate, Assistant Attorney General for the Civil Division. “Its commitment to providing detransitioner care is emblematic of just that. While the Department is satisfied with the resolution announced today, our division will continue to work tirelessly to protect America’s children and hold accountable pharmaceutical companies and medical providers who have taken advantage of vulnerable children under the guise of ‘care.’”
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. Both entities have denied all allegations.
The two agreements are available here and here.
Justice Department Files Complaint to Protect Law Enforcement, Challenging Connecticut Mask Ban, Identification Requirements, and Use-of-Force Policies for Federal OfficersRead the Press Release
Today, the Department of Justice filed a lawsuit against Connecticut, Governor Ned Lamont, Attorney General William Tong, Chief State’s Attorney Patrick Griffin, and Deputy Chief State’s Attorney Eliot Prescott, challenging their unconstitutional attempt to regulate federal law enforcement officers through the so-called “Act Concerning Democracy and Government Accountability,” also known as Senate Bill 397.
“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. “Connecticut’s anti-law enforcement policies regulate the federal government and are designed to create risk for our agents. These laws cannot stand.”
“This week — Police Week — we honor those who have paid the ultimate sacrifice to ensure the safety of our Nation’s communities,” said Associate Attorney General Stanley Woodward. “This Department of Justice will not stand by idly in the face of lawless efforts that endanger our brothers and sisters in blue.”
“Connecticut’s attempt to regulate federal officers is dangerous and unconstitutional,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “State interference with federal operations is precisely what the Supremacy Clause was intended to prevent, as the Supreme Court has recognized for centuries.”
Among other things, the law prohibits federal officers from wearing facial coverings in the performance of their official duties, requires federal officers to clearly display their badge and name tag when performing official duties, and to adhere to Connecticut’s preferred use-of-force policies when performing official duties. 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 exhibited extreme bravery in enforcing our Nation’s laws despite 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. The danger is acute.
Last year, the Attorney General instructed the Justice Department’s Civil Division to identify state and local laws, policies, and practices that facilitate violations of federal laws or impede lawful federal operations. Today’s lawsuit is the latest in a series of lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in New York, New Jersey, and California.
Fraud Division Announces Massive Crackdown for Second Straight Week — Over $1 BILLION in Nationwide Fraud Enforcement ActionsRead the Press Release
The Justice Department’s National Fraud Enforcement Division announced numerous enforcement actions in the past week, as prosecutors across the country pursued the criminals stealing American taxpayer dollars. Notably, a jury in the Southern District of Florida found the founder and owner of HealthSplash guilty for his role in operating a platform that generated false doctors’ orders and prescriptions to defraud Medicare and other federal health care benefit programs, billing more than $1 billion for unnecessary equipment.
"In the past week, prosecutors throughout the Department secured trial convictions of multiple defendants who ran fraud schemes totaling over a billion dollars,” said Assistant Attorney General Colin M. McDonald of the National Fraud Enforcement Division. “I am proud of the fearless men and women of the Fraud Division who are fighting to protect the American people and hold fraudsters accountable.”
Other top highlights from the fight against fraud this week include the following enforcement actions.
Benefits Program Fraud
A federal jury found a tax preparer guilty for operating an unemployment insurance fraud scheme to defraud the Pandemic Unemployment Assistance Program out of over $11 million in fraudulent unemployment benefits.
A former employee of the U.S. Department of Labor pleaded guilty in Boston to fraudulently obtaining over $40,000 in pandemic unemployment assistance benefits.
In Massachusetts, a woman pleaded guilty to fraudulently receiving Social Security disability benefits after failing to notify Social Security that her husband, whose income exceeded the program’s limits, became part of the household.
A judge in the Middle District of Florida sentenced a defendant to 63 months in federal prison for submitting a fraudulent Paycheck Protection Program (PPP) loan application. The court ordered forfeiture in the amount of $739,582.
A grand jury returned an indictment charging a defendant with wire fraud and theft of government money for concealing the death of her aunt in order to obtain Social Security benefits and City of New York pension benefits that did not belong to her. The indictment seeks forfeiture of more than $75,000.
Health Care Fraud
A federal grand jury returned an indictment charging a podiatrist and two nurses for allegedly submitting fraudulent claims to Mediare for skin substitute services, resulting in Medicare paying $29 million in claims.
Government Fraud
A Danish researcher—and HHS-OIG top ten most wanted fugitive—was arraigned on wire fraud and money laundering charges. The defendant allegedly stole more than $1 million of CDC grant money by submitting fraudulent documents to the Danish government and a Danish hospital where scientists performed research under the CDC grant.
Tax Fraud
A founder and CEO of a Hong Kong financial services firm pleaded guilty to conspiring to defraud the United States by helping high-value U.S. taxpayer-clients conceal more than $60 million in income and assets held in offshore bank accounts and evade U.S. taxes.
In the Middle District of Tennessee, a licensed attorney pleaded guilty to filing false tax returns that failed to report millions of dollars in income from cryptocurrency sales and from his consulting business. In total, the defendant caused a tax loss of more than $550,000.
* * * *
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.
Challenge to Sable Pipeline in California DismissedRead the Press Release
The U.S. District Court for the Central District of California yesterday dismissed the complaint in Center for Biological Diversity v. Burgum – one of several cases challenging Sable Offshore Corp.’s oil and gas operations at the Santa Ynez Unit in the Santa Barbara Channel.
In April 2025, the Bureau of Ocean Energy Management (BOEM) issued a decision concluding that Sable was not required to revise its development and production plan for the Unit under the Outer Continental Shelf Lands Act. The plaintiffs then sued and sought a court order compelling the Bureau to require a revised plan. Instead, the court dismissed the lawsuit because the plaintiffs’ asserted procedural injury had no basis in the statute, was not traceable to any action by BOEM, and could not be redressed by an order of the court. Among other problems the court identified with the plaintiffs’ case, they invoked a provision of the statute that governs “approval of a development and production plan,” not revision of an already-existing plan.
“This decision is a clear-eyed interpretation of federal law in keeping with the Supreme Court’s instruction in Loper Bright to follow the best interpretation of statutes,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Our defense of BOEM’s decision supports domestic energy production in furtherance of President Donald J. Trump’s directive to unleash American energy.”
Sable Offshore was required to immediately resume petroleum transportation through the Santa Ynez Pipeline System pursuant to a Defense Production Act order issued by Energy Secretary Chris Wright on March 13. Since then, the Unit has been transporting about 30,000 barrels of oil per day to California and is expected to reach 60,000 barrels per day.
Attorneys with ENRD’s Natural Resources Section handled this matter.
Challenge Dropped to Air Force’s Fighter Jet Training Operations in Eastern OregonRead the Press Release
Earlier this month, the Oregon Natural Desert Association voluntarily dismissed its suit that alleged that the Air Force was illegally discharging countermeasures — chaff and flares — into waterways as part of its fighter jet training operations over the Paradise North area of eastern Oregon. The suit alleged that these releases from aircraft entered waterways and violated the Clean Water Act because the Air Force did not have a permit to do so. The Air Force denied that its operations required a permit in light of an April 20 determination by President Donald J. Trump to exempt for one year the Air Force’s fighter jet training operations in Idaho, Oregon, and Nevada from federal, state, and local requirements respecting the control land abatement of water pollution. The dismissal will minimize any disruption of the Air Force’s training program and save significant time and resources that the litigation would have required.
“Given how critical the Air Force’s training operations are to the nation’s military readiness and national defense, we are gratified to see this case dismissed,” said Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “Congress granted the President the authority to exempt certain military operations from Clean Water Act requirements, and doing so here ensures that our pilots continue to receive the best training in the world.”
Military aircraft have been training in eastern Oregon since Mountain Home Army Air Field opened in August 1942. The Air Force currently conducts aerial fighter training for aircraft — primarily F-15E Strike Eagle aircraft — and pilots stationed at the base. This aerial flight training takes place within six Military Operation Areas, including the Paradise North desert lands in southeastern Oregon, as part of the Air Force’s ongoing mission to train and equip America’s elite cadre of fighter pilots. The training occurs over an expansive area and may include fighter jets releasing chaff and flares into the atmosphere as practice for defending against RADAR-guided weapons and heat-seeking missiles. For several decades, the Air Force has, at times, used chaff and flares during aerial training at Mountain Home Air Force Base.
Attorneys with ENRD’s Natural Resources Section handled this matter.
Owner of Health Care Software Company Convicted of 1 Billion Dollar Medicare Fraud ConspiracyRead the Press Release
A federal jury in the Southern District of Florida convicted the founder and owner of HealthSplash yesterday for his role in operating a platform that generated false doctors’ orders and prescriptions to defraud Medicare and other federal health care benefit programs out of more than $1 billion.
Photo of defendant Brett Blackman“The Department of Justice crushed one of the most egregious fraud schemes in Florida history,” said Acting Attorney General Todd Blanche. “This illegitimate operation stole more than $1 billion from American taxpayers — including hundreds of thousands of Medicare beneficiaries. This was cold, calculated, industrial-scale theft targeting the sick and elderly, coercing vulnerable people into buying unnecessary medical equipment. We will not rest until every fraudster ripping off the American people is held accountable.”
“The defendant orchestrated a massive telemarketing scheme that used foreign call centers and spam mailers to target our country’s senior citizens and defraud government health care benefit programs,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “The Fraud Division will continue to aggressively prosecute health care fraud schemes, hold criminals accountable, and protect the integrity of America’s health care system.”
“This was not health care. It was a billion-dollar fraud machine,” said U.S. Attorney for the Southern District of Florida Jason A. Reding Quiñones. “The defendant built and operated a platform that generated false doctors’ orders, used foreign call centers to target seniors, and helped push medically unnecessary equipment through Medicare and other federal health care programs. Seniors were exploited. Taxpayers were robbed. Programs meant to care for the elderly, veterans, service members, and families were treated like a cash register. This conviction is a major victory for patients, taxpayers, and the rule of law, and it sends a clear message: if you steal from federal health care programs in South Florida, we will find you, prosecute you, and make sure fraud does not pay.”
"The scale of greed in this case is staggering. Brett Blackman and his co-conspirators systematically preyed upon hundreds of thousands of elderly and vulnerable Medicare beneficiaries, converting a platform meant for modern healthcare into a $1 billion vehicle for outright fraud,” said Brett Skiles, Special Agent in Charge, FBI Miami. “Today's verdict sends a definitive message to unscrupulous healthcare executives and fraudulent networks alike: no matter how complex you make your web of sham contracts and shell companies, law enforcement will unravel it, and you will be held fully accountable."
According to court documents and evidence presented at trial, Brett Blackman, 42, of Johnson County, Kansas, and his co-conspirators aggressively targeted hundreds of thousands of Medicare beneficiaries to get them to accept medically unnecessary orthotic braces and other items. They then arranged for purported telemedicine doctors to sign bogus prescription orders for these items, so that their co-conspirators could bill Medicare for them. All told, Blackman and his co-conspirators billed Medicare and other federal health care benefit programs over $1 billion for this unnecessary equipment.
Blackman owned, controlled, and was the CEO of HealthSplash, which acquired Power Mobility Doctor Rx, LLC (DMERx) in September 2017. DMERx was an internet-based platform that generated false and fraudulent doctors’ orders for durable medical equipment (DME) and prescriptions for other items. As part of the scheme, Blackman and his co-conspirators connected pharmacies, DME suppliers, and marketers with telemedicine companies that would accept illegal kickbacks and bribes in exchange for signed doctors’ orders created using the DMERx platform. Blackman and his co-conspirators took a cut for themselves in exchange for the referrals.
Photo of mansion used in defendant's music video“This conviction further underscores our dedication to protecting the integrity of military healthcare from large-scale exploitation,” said Special Agent in Charge Jason J. Sargenski of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS), Southeast Field Office. “Fraud of this magnitude drains vital resources and jeopardizes the care promised to our service members, retirees, and their families. DCIS, alongside our partners, remains steadfast in rooting out and dismantling these schemes, ensuring every conspirator faces justice.”
“This verdict shows exactly what happens when people exploit Medicare for personal gain,” said Acting Deputy Inspector General for Investigations Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS‑OIG). “The actions of this defendant severely undermined the integrity of the Medicare program. Working alongside our law enforcement partners, HHS‑OIG will continue to relentlessly pursue those who try to profit by defrauding federal health care programs.”
“This conviction sends a clear message that those who exploit VA programs and services for personal profit will be found and held accountable,” said Acting Special Agent in Charge Greg Wentz with the VA Office of Inspector General Southeast Field Office. “The VA OIG remains committed to working alongside our law enforcement partners to uncover complex fraud schemes, protect veterans and taxpayers, and ensure accountability.”
The fraudulent doctors’ orders and prescriptions generated by DMERx falsely represented that a doctor had actually examined and treated the Medicare beneficiaries when, in fact, the doctors were simply paid to sign orders and prescriptions without any meaningful interaction with the beneficiary, and in some cases, no interaction at all. Doctors signed these orders and prescriptions without regard to whether the equipment was medically necessary. Testimony and evidence presented at trial from an undercover agent who posed as a Medicare beneficiary showed the scheme in action—starting with a foreign call center that pushed the undercover agent to agree to multiple braces to a doctor signing bogus orders for the braces using Blackman’s DMERx platform. The doctor’s order for one of these undercover agent beneficiaries claimed that the doctor conducted various tests that can only be performed in person even though the doctor never even spoke with the undercover agent “patient.”
The DME suppliers and pharmacies that were paying illegal kickbacks for these orders billed Medicare and other insurers for more than $1 billion. Medicare and the other insurers paid more than $450 million based on these claims. According to evidence presented at trial, Blackman and his co-conspirators concealed the scheme through sham contracts and by manipulating the doctors’ orders to avoid Medicare audits.
The jury convicted Blackman of conspiracy to commit health care fraud and wire fraud, conspiracy to pay and receive health care kickbacks, and conspiracy to defraud the United States and to make false statements in connection with health care matters. Blackman’s co-defendant, Gary Cox, was convicted in a prior trial and sentenced to 15 years in prison. Blackman faces a maximum penalty of 20 years in prison for the conspiracy to commit health care fraud and wire fraud conviction, five years for the conspiracy to pay and receive health care kickbacks conviction, and five years for the conspiracy to defraud the United States and to make false statements in connection with health care matters conviction. A sentencing hearing has been scheduled for August 26, 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HHS-OIG, FBI, VA-OIG, and DCIS investigated the case.
Trial Attorneys Darren C. Halverson and Reginald Cuyler Jr. of the Criminal Division’s Fraud Section prosecuted the case. Trial Attorneys Shane Butland and Jennifer E. Burns assisted in the prosecution. Trial Attorney Evan N. Schlom with the Fraud Section’s Special Matters Unit provided valuable assistance.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
The Department of Justice’s Health Care Fraud Strike Force Program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion since 2007. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Justice Department Investigation Determines Yale’s Medical School Discriminated Based on Race in AdmissionsRead the Press Release
The Justice Department’s Civil Rights Division has completed a year-long investigation into the admissions policies and practices at the Yale School of Medicine.
Yale’s documents show that its leadership intentionally selected applicants based on their race. Yale’s documents reveal that they studied how to use racial proxies to circumvent the Supreme Court’s prohibition on using race to select students. Yale’s admissions data demonstrate that Black and Hispanic students have a much higher chance of admission to Yale than White or Asian students with the same test scores.
“Yale has continued its race-based admissions program despite the Supreme Court and the public’s clear mandate for reform.” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This Department will continue to shed light on these illegal practices, and demand that institutions of higher education comply with federal law.”
The investigation showed that, in general, Black and Hispanic applicants were admitted with consistently lower academic qualifications than their White and Asian counterparts. These facts support the Department’s finding that Yale violated the law by intentionally discriminating based on race in its admissions, in clear violation of federal law.
Medical schools use substantial federal financial assistance to train the next generation of doctors. The Department is continuing its focus on eradicating illegal race politics from admissions at medical schools, where quality and excellence are vitally important to public safety.
High-Ranking CJNG Leader Charged with Federal Drug Trafficking Conspiracy, Firearm Offenses, and Money Laundering ConspiracyRead the Press Release
A federal grand jury in the District of Columbia returned a superseding indictment yesterday against Audias Flores Silva, also known as “Jardinero,” 45, of Mexico, a high-ranking leader of the Mexico-based drug trafficking organization the Cartel de Jalisco Nueva Generacion (CJNG). The superseding indictment expands on charges first filed in August 2020, when Flores Silva was accused of trafficking cocaine and heroin into the United States, now alleging he also trafficked methamphetamine and conspired to launder drug proceeds from the United States back to Mexico.
Before his capture on April 27 by Mexican authorities, Flores Silva was reportedly a potential successor to Nemesio Oseguera Cervantes, also known as “El Mencho,” the former top CJNG leader who died after a military operation to capture him in February 2026. The State Department designated the CJNG as a foreign terrorist organization in February 2025.
“Audias Flores Silva is charged with trafficking massive amounts of cocaine, heroin, and methamphetamine into our country and funneling the profits back to Mexico,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The drugs and violence that cartels inject into communities have no place in the United States. Our mission in the Criminal Division is to dismantle cartels and foreign terrorist organizations at every level, targeting their leadership, financing and operations and ensuring those who have harmed our country face justice.”
“Jardinero believed he would assume control of the violent foreign terrorist organization CJNG following the death of El Mencho. He was wrong.” said Administrator Terrance Cole of the Drug Enforcement Administration. “Yesterday’s superseding indictment demonstrates the combined strength of DEA and the Homeland Security Task Force in dismantling the command and control structures of the cartels and holding their leaders accountable. I thank the Secretariat of the Navy (SEMAR) for taking Jardinero into custody in Mexico. DEA and our partners will continue to relentlessly pursue the leaders of these terrorist organizations, disrupt their global operations, and protect the American people from the violence, poison, and chaos they spread.”
“The superseding indictment of Audias Flores Silva underscores how the Homeland Security Task Force and our partners are systematically targeting the command structure of violent cartels that traffic drugs, violence, and fear into our communities,” said Acting Executive Associate Director John A. Condon of Homeland Security Investigations (HSI). “The HSTF will continue to marshal the full strength of our interagency and international partnerships to identify, disrupt, and dismantle these transnational criminal organizations wherever they operate.”
Flores Silva is charged with conspiracy to manufacture and distribute cocaine, heroin, and methamphetamine for importation into the United States, use of a firearm, one of which was a destructive device, in furtherance of a drug trafficking crime, and money laundering conspiracy. If convicted he faces a minimum penalty of at least 10 years in prison and a maximum penalty of life in prison.
HSI and the DEA’s Special Operations Division Bilateral Investigations Unit are investigating the case.
Trial Attorneys Douglas Meisel and Kirk Handrich of the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF) are prosecuting the case. The Justice Department's Office of International Affairs provided significant assistance.
MNF’s mission is to take the profit out of crime, eliminate drug cartels, and protect the U.S. financial system. MNF pursues criminal prosecutions and criminal and civil asset recovery actions involving: financial facilitators who launder profits for criminals; financial institutions and their officers and employees whose actions threaten the U.S. financial system and financial institutions; international money launderers who support transnational organized crime; and the top command and control of international drug trafficking organizations.
MNF’s Narcotic and Dangerous Drug Unit investigates and prosecutes the top command and control elements of international drug cartels, drug trafficking organizations and related transnational criminal organizations.
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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colorado Business Owner Pleads Guilty to Filing a False Tax ReturnRead the Press Release
A Colorado business owner pleaded guilty to filing a false personal tax return with the IRS.
According to court documents and statements made in court, Manuel Rocha, of Aurora, Colorado, owned and operated Rocha’s Drain, a drain installation business, and Rocha’s Liquor, a liquor store, both located in Denver, Colorado. While operating these businesses, Rocha diverted income to additional bank accounts to conceal the true amount of money he earned.
Each year from 2015 through 2022, Rocha provided records and information to his tax preparers that omitted his diverted income. As a result, he underreported the income he and his businesses earned during each of these years. In 2021, for example, Rocha reported that his two businesses earned $57,907 in gross receipts. In reality, the businesses earned approximately $691,650—a difference of more than $600,000.
In total, Rocha caused a tax loss to the United States of approximately $2.2 million.
Rocha is scheduled to be sentenced on August 25 and faces a maximum of three years in prison for filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys David F. Scollan and Megan E. Wessel of the Criminal Division’s Tax Section are prosecuting the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Property Management Company to Pay $60,000 to Servicemember for False AffidavitRead the Press Release
The Justice Department today announced that Rental Marketing Solutions, LLC (RMS), a property management company based in St. Petersburg, Florida, will pay $60,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by obtaining an unlawful eviction judgment against an active duty Navy sailor. This is the largest amount the Department has ever obtained for a single servicemember in a case involving the filing of a false military service affidavit.
“It is unacceptable and illegal for a landlord or property management company to file a false affidavit stating that an active duty servicemember is not in military service,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This SCRA violation had significant consequences, as potential landlords refused to rent to a sailor once they learned of the eviction on his record. He became homeless and his wife was forced to move back in with her parents in another state. The Justice Department will continue to fight to protect the rights of military families.”
“Protecting the civil rights of our servicemembers is a top priority for the U.S. Attorney’s Office,” said U.S. Attorney Gregory W. Kehoe for the Middle District of Florida. “We will continue to aggressively enforce the SCRA to protect the servicemembers who fight to protect us here at home. These servicemembers, along with their families, sacrifice to serve our country and deserve to be treated with dignity. No servicemember should ever be denied housing or have their record tarnished based on a false affidavit.”
The Department alleges that RMS named the sailor as a defendant in an eviction action for a property he had not lived in for several years, filed a false affidavit stating he was not on active duty, and obtained an eviction judgment against him in a Florida county court while he was assigned to the USS Nimitz at the Puget Sound Naval Shipyard in Bremerton, Washington. Because the eviction judgment showed up on his background reports, a dozen or more landlords refused to rent to him and his wife. For four months, he had to live separately from his wife and rotate among temporary accommodations, including sleeping on the berthed Naval ship, which had no heat.
The SCRA requires a plaintiff in a case where a defendant does not make an appearance to file an affidavit stating whether the defendant is in military service, with necessary supporting facts. This allows the court to appoint an attorney to represent the servicemember and to postpone the proceedings if a defense cannot be presented without the servicemember’s presence. Because RMS filed a false affidavit stating that the sailor was not in military service, he did not receive the benefit of those protections.
Under the settlement, RMS will pay $60,000 in compensation to the sailor and for ten years of credit monitoring for him. RMS will also be required to pay a $6,000 civil penalty and maintain SCRA policies and procedures to avoid committing future violations.
The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. Since 2011, the Department has obtained $489 million in monetary relief for 152,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.
Justice Department Settles Lawsuit Challenging Biden Administration’s Alleged Social Media Coercion and CensorshipRead the Press Release
WASHINGTON – The Justice Department this week announced the settlement of litigation alleging that the Biden administration induced Twitter to suppress disfavored speech by an American citizen. The lawsuit alleged that coercing the social media company to suppress disfavored speech violated the First Amendment of the United States Constitution.
The settlement implements President Trump’s Executive Order, entitled “Restoring Freedom of Speech and Ending Federal Censorship,” acknowledging that “the previous administration trampled free speech rights by censoring Americans’ speech on online platforms, often by exerting substantial coercive pressure on third parties, such as social media companies, to moderate, deplatform, or otherwise suppress speech that the Federal Government did not approve.” 90 Fed. Reg. 8243 (Jan. 28, 2025).
“The Biden Administration engaged in blatant viewpoint discrimination, wielding power over social media to kick conservatives off Twitter completely,” said Associate Attorney General Stanley Woodward. “Today’s settlement proves such injustices are over under President Trump’s leadership.”
“This Department will continue working to undo past abuses of the First Amendment,” said Assistant Attorney General Brett Shumate, of the Civil Division. “Unlawful government coercion of social media companies has no place in our country or under our Constitution.”
“This settlement is an important milestone in the battle for free speech in our country, concerning a time when social media censorship encouraged by state and federal government actors suppressed wide swaths of protected speech," said Assistant Attorney General Harmeet K. Dhillon, of the Civil Rights Division. "The proper antidote to speech one doesn’t like, is more speech.”
The Department’s agreement with plaintiff avoids the need for continued litigation in this case. Berenson v. Biden, No. 25-2709 (2d. Cir.).
Securing the right of the American people to engage in constitutionally protected speech is a priority of the Department of Justice. Additional information about the Civil Division is available at www.justice.gov/civil.