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Thursday 20 August 2026
Nigerian National Pleads Guilty to Role in Cross-Country Unemployment Insurance Fraud SchemeRead the Press Release
Greenbelt, Maryland – A Nigerian national pled guilty in federal court to charges stemming from his involvement with a cross-country unemployment insurance (UI) fraud scheme.
Akinpelumi Olawale Oyewusi, 60, of Hyattsville, Maryland, is charged with wire fraud conspiracy and aggravated identity theft in connection with the white-collar crime. This prosecution is part of the Trump Administration’s Task Force to Eliminate Fraud.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the guilty plea with Inspector General Joseph V. Cuffari Ph.D., Department of Homeland Security – Office of Inspector General (DHS-OIG), and Inspector General Anthony P. D’Esposito, U.S. Department of Labor - Office of Inspector General, (DOL-OIG).
According to his guilty plea, beginning in September 2020, and continuing through at least March 2021, Oyewusi and others conspired to defraud state workforce authorities, including the Maryland Department of Labor (MD-DOL), to obtain fraudulent UI funds. Through the conspiracy, Oyewusi and his co-conspirators used the identities of real people to obtain fraudulent UI from the state of Maryland and other states. After obtaining access to these UI funds, Oyewusi subsequently transferred and withdrew the stolen funds through electronic transfers and ATM withdrawals.
Oyewusi and his co-conspirators victimized individuals through identity theft, the state workforce authorities through stealing UI funds, and a financial institution by misdirecting UI fund transfers and fraudulent transactions. He was directly connected to at least $415,874.63 of actual losses and personally obtained at least $25,000 through his participation in the scheme.
The co-conspirators used victims’ personally identifiable information (PII) to submit false UI claims to various state workforce authorities— including the MD-DOL and the California Employment Development Department. The claims contained victims’ real social security numbers and names but falsified their unemployment status and prior work history to obtain UI funds.
Co-conspirators elected to receive the UI funds through bank-issued debit cards linked to a bank account. Oyewusi and his co-conspirators ensured that the bank mailed the debit cards to one of several addresses in Maryland and elsewhere. He then accessed the UI funds from the fraudulently opened UI claims and transferred the funds downstream to other members of the conspiracy after obtaining his portion of the fraudulent proceeds.
Additionally, throughout the scheme, Oyewusi received incoming mail alerts from the U.S. Postal Service, allowing him to track the fraudulent UI debit cards. Oyewusi also personally withdrew thousands of dollars from the UI debit cards in the names of the victims. Typically, Oyewusi withdrew the maximum amount allowed from each card. Oyewusi would then use the same cards to make additional withdrawals at later dates. Between December 2020, and March 2021, at least 18 ATM photos captured Oyewusi withdrawing $18,000 from UI debit cards issued to six different fraudulent claims. Bank records indicate that Oyewusi withdrew approximately $69,000 from the same UI debit cards throughout the scheme.
Sentencing is set for Thursday, December 3, at 2 p.m. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
U.S. Attorney Hayes commended DHS-OIG and DOL-OIG for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Joseph Wenner who is prosecuting this federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit justice.gov/usao-md and justice.gov/usao-md/report-fraud.
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Multi-State Drug Trafficking Operation Dismantled as a Part of the Homeland Security Task Force InitiativeRead the Press Release
CLARKSBURG, WEST VIRGINIA – A drug trafficking and money laundering network operating from Detroit, Michigan, to Morgantown, West Virginia, has been dismantled following a coordinated multi-state investigation, U.S. Attorney Matthew L. Harvey announced today.
“When agencies come together to take poison off the streets, communities are safer,” said U.S. Attorney Harvey. “This case demonstrates that no operation is too large or too far-reaching for our law enforcement partners. It sends a clear message: West Virginia is not a haven for drug dealers. We will prosecute those charged and hold them accountable.”
According to the indictment, over a period of more than two years, 28 defendants from Detroit, Philadelphia, Mississippi, and West Virginia conspired to possess and distribute methamphetamine, fentanyl, cocaine base (“crack”), and cocaine in Monongalia County and surrounding areas. The operation, allegedly led by Brendan Bragg, 32, of Detroit, involved transporting drugs from the Detroit area to Morgantown and Parkersburg, West Virginia.
The investigation resulted in the seizure of more than 8 pounds of methamphetamine, nearly 2 pounds of fentanyl and fentanyl mixtures, more than half a pound of cocaine and cocaine base, $21,906 in cash, 10 firearms, and ammunition.
“The DEA is proud to work side-by-side with our federal, state, and local counterparts to pursue those who traffic dangerous drugs and fuel violence that ravages our communities,” said Special Agent in Charge Jim Scott, head of DEA’s Louisville Field Division. “By bringing the full resources of the federal government to bear against these criminals, we are sending a clear message: your days are numbered.”
Those charged along with Bragg in the 114-count indictment containing multiple drug and money laundering counts are:
- Torianno Alexander, 40, of Philadelphia, Pennsylvania
- Treasure Wooten, 34, of Detroit, Michigan
- Ezavin Blue, 31, of Detroit, Michigan
- Vincent Hill, 38, of Detroit, Michigan
- Austin Hudson, 29, of Morgantown, West Virginia
- Frank McKinney, 27, of Highland Park, Michigan
- Stewart Jenkins, 54, of Detroit, Michigan
- Zaire Adams, 25, of Detroit, Michigan
- Adam Mccullough,26, of Cleveland, Mississippi
- Khorie Morris, 27, of Morgantown, West Virginia
- Lance Harris, 33, of Detroit, Michigan
- Kayla Ashley, 31, of Morgantown, West Virginia
- Cathy Jo Riffle, 32, of Westover, West Virginia
- Ashley Flowers, 49, of Westover, West Virginia
- Rebecca Fletcher, 34, of Morgantown, West Virginia
- Brian Willard, 49, of Fairview, West Virginia
- Isabella Rexroad, 29, of Parkersburg, West Virginia
- Keanna Phillips, 29, of Berkley, Michigan
- Alexis King, 44, of Morgantown, West Virginia
- Jeffrey Turner, 31, of Morgantown, West Virginia
- Darlene Dodson, 46, of Morgantown, West Virginia
- Valerie Smith, 37, of Morgantown, West Virginia
- Cody Lockhart, 38, of Wallace West Virginia
- Lori Murphy, 37, of Morgantown, West Virginia
- Latisha Kelly, 47, of Morgantown, West Virginia
- Brianna Turner, 28, of Reedsville, West Virginia
- Brian Turner, 63, of Reedsville, West Virginia
The case also involved several residences in Morgantown, including locations on Kingwood Street, Airport Boulevard, Chestnut Ridge Road, Rolling Hills Village, Dunkard Avenue, Cherry Street, and East Hillview Drive.
Assistant U.S. Attorney Zelda Wesley is prosecuting the case on behalf of the government.
This case is a 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.
Investigative agencies include the Federal Bureau of Investigation-Pittsburgh; the Drug Enforcement Administration-Louisville/Clarksburg; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Marshals Service; West Virginia State Police; the Morgantown Police Department; the Monongalia County Sheriff’s Department; the Preston County Sheriff’s Office; the WVU Police Department; the Granville Police Department; and the Monongalia County Prosecuting Attorney’s Office. Other agencies that assisted are the Parkersburg Drug Task Force; the Franklin County, Ohio Drug Task Force; Michigan State Police; the Detroit Police Department; FBI-Detroit; DEA-Detroit; and the Greene County, Pennsylvania Drug Task Force.
An indictment is merely an allegation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Montgomery County man admits to producing child sexual abuse materialRead the Press Release
HOUSTON – A 34-year-old Willis resident has pleaded guilty to production and distribution of child pornography.
Authorities identified Jesse Thomas Raines in 2023 when investigating activity on social media.
As part of an undercover operation in June 2023, Raines communicated through an internet chat application. During the conversation, Raines distributed child sexual abuse material, also known as CSAM, and displayed his screenshot folder in an attempt to show he was not saving the chat.
Investigators identified information in several screenshots that revealed Raines’s identity and where he lived. Based on the evidence, law enforcement obtained and executed a search warrant at his Willis residence.
Raines admitted he had sexually abused a minor victim for years and produced videos and photographs documenting the abuse. Law enforcement also seized multiple electronic devices from the residence.
A forensic examination of an external drive revealed a folder bearing the victim’s name that contained illicit files created between March 2019 and May 2023. Investigators also discovered additional CSAM on a laptop seized during the search.
“Raines is a deplorable, child-abusing monster, and now the justice system has rightly deemed him for what he is: guilty,” said U.S. Attorney Aaron Reitz. “The good news is that, now, there’s one less sicko on the streets. The bad news is that there are many more out there. My office will hunt them down and keep our kids safe.”
“This confessed child rapist callously sexually abused a 7-year-old and produced imagery of the abuse to share online, falsely believing that encrypted chats would shield him from getting caught,” said Homeland Security Investigations Houston Special Agent in Charge Lucia Cabral-DeArmas. “Thanks to the ingenuity of our special agents and the unbelievable assistance that we receive from our partners at the National Center for Missing and Exploited Children, we were able to unmask Mr. Raines and remove him from the local community before he could harm anymore children.”
U.S. District Judge Charles Eskridge will impose sentencing Dec. 17. At that time, Raines faces up to 50 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
Immigration and Customs Enforcement Homeland Security Investigations conducted the investigation, with the assistance of Montgomery County Constable’s Office, Precinct 1.
Assistant U.S. Attorneys Stephanie Bauman, Luis Batarse, and Colton Turner are prosecuting the case, which was brought as part of Project Safe Childhood, a nationwide initiative the Department of Justice launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.
Mississippi Man Pleads Guilty to Evading $2M in TaxesRead the Press Release
A Mississippi man pleaded guilty yesterday to evading the payment of more than $2 million in federal income taxes.
According to court documents, Eric Brian Rosenberg tried to hide money from the government after he learned that an Internal Revenue Service (IRS) revenue officer was trying to collect the income taxes that he owed.
Between 2016 and 2020, in a practice known as “check churning,” Rosenberg repeatedly removed most of the funds from his checking account by purchasing a cashier’s check, and holding that check until he wanted cash. When Rosenberg wanted money, he would deposit the cashier’s check into his bank account, withdraw the cash he wanted, and remove the unspent funds via another cashier’s check. Later, Rosenberg took additional steps to avoid paying the taxes he owed by forming a company, opening a bank account in the company’s name, depositing money into that nominee bank account, and continuing to churn checks. At the same time, from 2016 through 2021, Rosenberg spent over $1 million gambling at casinos.
Rosenberg pleaded guilty to one count of tax evasion. He is scheduled to be sentenced on Dec. 16 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Colin McDonald of the Justice Department’s National Fraud Enforcement Division and U.S. Attorney Baxter Kruger for the Southern District of Mississippi made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorney Matthew Hicks of the Criminal Division’s Tax Section and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi are prosecuting the case.
On April 7, the Department of Justice announced the creation of the Fraud Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Middlesex County Man Admits to Production and Possession of Child PornographyRead the Press Release
TRENTON, N.J. – An Old Bridge, New Jersey man admitted to producing and possessing images and recordings of child pornography, U.S. Attorney Robert Frazer announced today.
Daniel Berwick, 39, pleaded guilty on August 18, 2026 before U.S. District Judge Robert Kirsch in Trenton federal court to a three-count Information charging him with two counts of production of child pornography and one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In August and September 2025, Berwick persuaded and enticed Minor Victim-1 and Minor Victim-2 to create and send him photos and video recordings on the social media platform Snapchat that depicted the minors engaged in sexual activity. As part of his scheme, Berwick catfished his victims by presenting himself as a 17-year-old high school student and using the photos and video recordings of an adult content creator as if they were pictures of him. Eventually, Berwick even threatened to send compromising photos of Minor Victim-1 to her family and high school officials, if she did not meet his demands for money or sexual acts. After searching Berwick’s electronic devices, law enforcement uncovered, among other things, at least 1,000 images of child pornography, including prepubescent minors engaged in sexually explicit conduct, sexual abuse or exploitation of an infant or toddler, and images portraying sadistic or masochistic conduct.
The production of child pornography charges related to Minor Victim-1 and Minor Victim-2 each carries a mandatory minimum term of 15 years imprisonment and a maximum term of 30 years imprisonment, and a fine of up to $250,000. The possession of child pornography charge carries a maximum term of 20 years imprisonment, which is increased from a maximum of 10 years because at least one image associated with the offense includes a prepubescent minor, and a fine of up to $250,000. Sentencing is scheduled for December 21, 2026.
U.S. Attorney Frazer credited special agents with the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, with the investigation leading to the guilty pleas. He also thanked the Middlesex County Prosecutor’s Offense, under the direction of Prosecutor Linda Estremera, and the Old Bridge Police Department, under the direction of Chief of Police Thomas J. Montagna, for their assistance in the investigation.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit: https://www.justice.gov/psc.
The government is represented by Assistant U.S. Attorney Jonathan S. Garelick of the U.S. Attorney’s Office Criminal Division in Trenton.
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Defense counsel: Robert C. Scrivo, Esq., Mandelbaum Barrett PC.
berwick.information.pdfMarried Couple Indicted for Bribery and Smuggling Drugs into Kern Valley State PrisonRead the Press Release
FRESNO, Calif. — Rachel Bernal, aka Rachel Bernal Dunn, 48, of Victorville, and her husband, Rodney Dunn, 48, who is incarcerated at Kern Valley State Prison (KVSP) due to a 1996 first degree murder conviction, have been indicted for bribing an employee of KVSP to smuggle fentanyl, methamphetamine, cell phones, and other contraband into the prison, U.S. Attorney Eric Grant announced.
According to court records, from January through September 2025, Bernal and Dunn paid a janitor at KVSP over $7,500 to smuggle contraband into the prison. Bernal would meet the janitor at hotels in Delano, where she would give him the contraband and pay him through electronic payments and cash. The janitor would then smuggle the contraband into the prison in various ways, including by concealing the items in his lunch bag. Due to increasing levels of contraband found in KVSP, officials began conducting enhanced security inspections of employees. These enhanced security inspections resulted in the janitor being caught in September 2025.
Authorities executed a search warrant on Bernal’s Victorville home on August 20, 2026, after which Bernal was taken into custody. She is scheduled to make her initial appearance on August 20, 2026. Dunn is in the process of being transferred from state custody into federal custody and is scheduled to make his initial appearance on August 28, 2026.
This case is the product of an investigation by the FBI and the California Department of Corrections and Rehabilitation Office of Internal Affairs. Assistant U.S. Attorneys Arelis Clemente and Joseph Barton are prosecuting the case.
If convicted, Bernal faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison as well as a $10,000,000 fine. Dunn faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of life in prison as well as a $20,000,000 fine. Dunn faces higher penalties than Bernal due to his prior murder conviction. The janitor has pleaded guilty and is scheduled to be sentenced in December 2025. He faces a mandatory minimum penalty of 10 years in prison and a maximum penalty of life in prison as well as a $10,000,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Lake Worth Man Pleads Guilty to Attempting to Entice 15-Year-Old for Sexual ActivityRead the Press Release
MIAMI – A Lake Worth man has pleaded guilty to attempting to entice a 15-year-old girl to engage in sexual activity, sending sexually explicit images of himself to minors, and possessing child sexual abuse material (CSAM).
According to court records, Nicholas John Dinapoli, 30, who used the alias “demondon_666,” exchanged messages in September 2025 with someone he believed to be a 15-year-old girl. During the exchanges, Dinapoli sent sexually explicit images of himself and requested images in return. Dinapoli also discussed sexual activity he wanted to engage in with the purported 15-year-old and discussed meeting her in person for that purpose.
“Adults who use the internet to sexualize, manipulate, and pursue children will find federal law enforcement on the other side of the screen,” said U.S. Attorney Reding Quiñones for the Southern District of Florida. “Nicholas Dinapoli repeatedly targeted minors, sent them obscene material, and sought sexual contact with a child. Protecting children from online exploitation is a top priority, and we will relentlessly pursue those who prey on them.”
During the same period, Dinapoli exchanged messages with a 13-year-old girl and sent her a sexually explicit image of himself, knowing that she was under 16. In or around October 2024, Dinapoli also communicated through a social media application with another girl who was 16 to 17 years old and whom he believed to be 16. During those communications, the girl sent Dinapoli sexually explicit images of herself.
During the execution of a search warrant at Dinapoli’s residence, law enforcement searched his electronic devices and found CSAM involving the 16-to-17-year-old girl saved on his phone. A review of Dinapoli’s social media account also revealed that he had engaged in sexual communications with at least two other minors, as well as additional inappropriate online encounters with girls who appeared to be under 18.
Dinapoli pleaded guilty to one count of attempted coercion and enticement of a minor to engage in sexual activity, one count of attempted transfer of obscene material to a minor, one count of transfer of obscene material to a minor, and one count of possession of visual depictions involving the sexual exploitation of minors. He faces a maximum sentence of life in federal prison on the attempted enticement count, up to 10 years in prison on each obscene material count, and up to 10 years in prison on the possession count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Reding Quiñones and Special Agent in Charge Brett Skiles of the FBI, Miami Field Office, made the announcement.
FBI Miami, West Palm Beach Resident Agency, is investigating the case with assistance from FBI New York.
Assistant U.S. Attorney Katie Wilson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 26-cr-80087.
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Justice Department Awards Nearly $290 Million to Improve SafetyRead the Press Release
NEW ORLEANS ―The Bureau of Justice Assistance, a component under the Department of Justice’s Office of Justice Programs, awarded almost $290 million to support state, local, and tribal governments in criminal justice activities to keep American communities safe.
The awards, provided through the Edward Byrne Memorial Justice Assistance Grant (JAG) Program, represent the nation’s leading source of federal justice funding to state and local jurisdictions, the District of Columbia, and all U.S. territories. For more than 20 years, the JAG program has provided critical funding to support law enforcement’s ability to protect the communities they serve, supporting critical needs such as personnel, equipment and supplies, technology, training, information systems for criminal justice or civil proceedings, and other operational priorities. JAG funding also supports a wide range of programs that strengthen crime prevention efforts and enhance the effectiveness of prosecutors, courts, corrections agencies, and services for crime victims and witnesses.
“This funding strengthens our state, local, and tribal partners’ ability to address violent crime, support officers on the front lines, and keep our Nation’s communities safe,” said Associate Attorney General Stanley E. Woodward Jr. “The JAG Program continues to provide essential resources that help jurisdictions meet today’s public safety threats and uphold the rule of law.”
“In the Eastern District of Louisiana, communities continue to be affected by crime and its collateral damage,” said U.S. Attorney David I. Courcelle. “The allocation of these JAG awards reflects DOJ’s commitment to provide the essential tools necessary for our state and local law enforcement partners to enhance public safety and combat violent crime in Southeast Louisiana.”
In addition to foundational uses of JAG funds, specific areas of emphasis were included to the JAG funding opportunities highlighting and encouraging state and local jurisdictions to join federal law enforcement in addressing the most pressing public safety challenges. For Fiscal Year 2025, these areas of emphasis included combatting violent crime, immigration enforcement, safe communities, and safe houses of worship.
BJA awarded more than $199 million in state JAG funding across 56 awards and more than $90 million in local JAG funding across 895 awards.
From fiscal year 2021 - 2025, across the Eastern District of Louisiana, examples of initiatives supported by these grants include:
- DNA Capacity Enhancement for Backlog Reduction.
- Cold Case Investigations and Training and Technical Assistance.
- Preventing School Violence: BJA’s STOP School Violence.
- National Sexual Assault Kit Initiative.
- Body-worn Camera Policy and Implementation Program to Support Law Enforcement Agencies
Additionally, grants were awarded to strengthen crime prevention efforts and enhance the effectiveness of prosecutors, courts, corrections agencies, and services for crime victims and witnesses.
All recipients for both state and local JAG awards can be found here.
About the Office of Justice Programs
The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation's capacity to prevent and reduce crime; promote fair and impartial administration of justice; assist victims; and uphold the rule of law. More information about OJP and its program offices – the Bureau of Justice Assistance, Bureau of Justice Statistics, National Institute of Justice, Office of Juvenile Justice and Delinquency Prevention, Office for Victims of Crime, and Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking or SMART Office – can be found at ojp.gov.
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Jury Convicts Erosion Control Company, Executive, and Employee for Roles in $100M Price-Fixing ConspiracyRead the Press Release
A federal jury in Oklahoma City convicted Sioux Erosion Control Inc. (Sioux), its part-owner and vice president, and another employee for participating in a five-year price-fixing conspiracy targeting over $100 million in publicly funded transportation construction contracts across Oklahoma.
According to court documents and evidence presented at trial, Sioux, its part-owner and Vice President BG Dale Biscoe, and its employee Randall David Shelton conspired with their competitors in the erosion control industry to raise and maintain prices for products and services between September 2017 and April 2023. Erosion control products and services, including sod, are used to control runoff of soil or rock on highway construction and repair projects. In addition to conspiring to raise prices for sod, the defendants also agreed to allocate contracts across different areas of Oklahoma and rigged bids for projects by submitting intentionally high-priced bids or refusing to bid.
“Americans have a right to expect that taxpayer-funded contracts are awarded through fair and honest competition, not secret agreements among competitors,” said Associate Attorney General Stanley E. Woodward Jr. “The prosecution of these criminals demonstrates the Justice Department’s unwavering commitment to protecting public funds, safeguarding the integrity of government procurement, and holding accountable those who put personal profit above the law.”
“For years, the defendants stole from taxpayers by rigging bids and raising prices on highway projects across Oklahoma,” said Acting Deputy Assistant Attorney General Daniel W. Glad of the Justice Department’s Antitrust Division. “Yesterday, an Oklahoma jury held the defendants accountable, finding them guilty beyond a reasonable doubt. This verdict underscores that, if you collude with your competitors to corrupt public procurement, the Antitrust Division and its Procurement Collusion Strike Force partners will work tirelessly to bring you to justice.”
“This long-running scheme to fix prices and rig bids on highway construction projects drove up costs for American taxpayers while the defendants lined their pockets,” said Special Agent in Charge Doug Goodwater of the FBI Oklahoma City Field Office. “The FBI and our partners will aggressively pursue corporations that violate antitrust laws at the expense of the American public. This verdict highlights our commitment to combatting illegal collusion through the justice system.”
“Violations of the nation’s antitrust laws will be taken seriously, and those who attempt to circumvent federal bidding and contract regulations will be held accountable,” said Special Agent in Charge Joseph Harris of the Department of Transportation Office of Inspector General’s Southern Region. “Working alongside our partners at the FBI and the Justice Department’s Antitrust Division, we will continue to pursue those who cheat the system and ensure that public funds are used as intended — to support a safe, reliable, and cost‑effective transportation system that Americans depend on every day.”
During the investigation, a total of six individuals and one company — including Biscoe, Shelton, and Sioux — were charged for their participation in the scheme. Four other individuals — Stanley Mark Smith, Roy Henry Henrich, Ryan Ashley Sullivan, and James Travis Feazel — previously pleaded guilty for their roles in the charged conspiracy and are awaiting sentencing.
Biscoe, Shelton, and Sioux were convicted by the federal jury of participating in a price-fixing conspiracy. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.
The U.S. Department of Transportation Office of Inspector General and FBI Oklahoma City Field Office investigated the case.
Trial Attorneys Marc Hedrich and Matthew Grisier of the Antitrust Division’s Washington Criminal Section and Senior Litigation Counsel Gary Bell are prosecuting the case.
The Justice Department’s Procurement Collusion Strike Force (PCSF) is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government — federal, state and local. To learn more about the PCSF, or to report information on bid rigging, price fixing, market allocation and other anticompetitive conduct related to government spending, go to www.justice.gov/procurement-collusion-strike-force.
Whistleblowers who voluntarily report original information about antitrust and related offenses that result in criminal fines or other recoveries of at least $1 million may be eligible to receive a whistleblower reward. Whistleblower awards can range from 15 to 30 percent of the money collected. For more information on the Antitrust Whistleblower Rewards Program, including a link to submit reports, visit www.justice.gov/atr/whistleblower-rewards.
Joint Homeland Security Task Force operation brings down massive multistate drug smuggling ring as last defendant is sentenced to prisonRead the Press Release
MISSOULA – A multijurisdictional operation launched in 2023 successfully shut down a drug smuggling ring that operated from the Netherlands and Mexico, and brought drugs into Arizona, Texas, Washington, and Montana.
In all, the operation saw the arrests and successful prosecution of 13 people and involved efforts from Homeland Security Investigations, IRS Criminal Investigation, the United States Postal Inspection Service, and the Montana Division of Criminal Investigation, Acting U.S. Attorney Mark Steger Smith said.
Running the drug ring was Gerad Punch, 41, a U.S. citizen living in the Netherlands. Punch worked with Bernard Cowley Glass, Jr., 39, from Phoenix, who helped funnel fentanyl from Mexico into Montana, Washington, and Texas.
Punch was sentenced in February 2026 to 20 years in prison; Glass was sentenced last month to 15 years in prison.
The final of the 13 defendants, Adam Jospeh Sarvis, 47, of Butte, was sentenced today to two years in prison, followed by five years of supervised release, Smith said. Sarvis pleaded guilty in March 2026 to one count of conspiracy to distribute and possess with intent to distribute fentanyl.
U.S. District Judge Dana L. Christensen presided.
Also sentenced to prison this year as part of the operation were:
- Carrie Jean Bishop, nine years
- Brooke Rose Louise Cadonia, nine years
- Freddie Lee Carter, 11 years and four months
- Spring Marie Davis, two years and eight months
- D’Andre Dontae Glass, four years
- Diana Michelle Karnes, eight years
- Dwayne Nyron Punch, 11 years and four months
- Sadie Cheryl Sawyer, four years
- Zane Nicholas Schafer, two years and eight months
- Shawn Michael Scholler, three years and 10 months
The government alleged in court documents that Punch began his push into Montana after he was introduced by one of his dealers in Washington to Brooke Cardonia. Cardonia was from Rocker and had dealer connections in western Montana through defendant Sadie Sawyer.
Punch began building his drug trafficking operation after a stint in prison in 2018. He had met an inmate there who connected Punch with a Phoenix-based supplier. That supplier obtained his drugs from Mexico, then provided the fentanyl to Punch and his brother Dwayne Nyron Punch, who also lived in Phoenix.
Investigators first picked up on Punch’s operation in October 2023 when they learned from a source that someone named “Jeremy Holbrook” was bringing large amounts of fentanyl pills into Butte. Through the course of the investigation, agents learned that Holbrook was Punch’s alias in Montana and that he had been shipping illegal drugs into the state since at least earlier that year.
The source in Butte told investigators that Punch’s shipments were often mailed to Montana and that she was expecting to receive a package in Helena. Investigators contacted the United States Postal Inspection Service, which began to investigate packages shipped from Punch to Montana. At the same time in Arizona, postal inspectors were looking into packages being mailed to Texas by Bernard Glass. Investigators quickly learned that Glass and Punch were partners in the same drug trafficking organization.
As the operation grew in Montana, Punch and Glass travelled regularly to the state to meet with connections, potential buyers, and dealers. Law enforcement began to track Punch’s movements between Phoenix and Montana and to follow those with whom he met. Investigators also dug into postal and financial records, tracking the number of packages Punch and his lieutenants were sending, and identifying and following the payment systems they used to fund and run the operation.
“IRS Criminal Investigation plays a critical role in disrupting and stopping the flow of money that is the lifeblood of criminal activity, including narcotics trafficking,” said Todd Wacaser, Special Agent in Charge, IRS Criminal Investigation (IRS-CI) Denver Field Office. “Working alongside our law enforcement partners, we hold drug traffickers accountable, protect the integrity of the U.S. financial system, and help keep our communities safe from the violence, addiction, and harm fueled by the illegal drug trade.”
By fall of 2024, investigators had identified more than a dozen co-conspirators, mapped out the organization’s financial operation, and tracked the packages of illicit drugs Punch and others had mailed into Montana. Punch, who had returned to the Netherlands, was charged and arrested in March 2025 when he returned to the United States.
“Operation Windmill is a strong example of how the Homeland Security Task Force model is designed to work: bringing federal, state, and local partners together across jurisdictions to identify, investigate, and dismantle criminal networks that threaten our communities,” said Resident Agent in Charge Joseph E. Montbriand with Homeland Security Investigations. “This case reflects the value of coordinated enforcement and intelligence-driven investigations, and we are proud of the work of our Special Agents, and all of our law enforcement partners who helped bring these defendants to justice.”
This operation 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. “DOJ and its law enforcement partners are committed to the destruction of these networks and poisons they seek to bring to Montana,” said Acting U.S. Attorney Smith. “I want to commend the exemplary work of the HSTF, including agents and officers from Homeland Security Investigations, IRS Criminal Investigation, the United States Postal Inspection Service, and the Montana Division of Criminal Investigation. I also applaud the exceptional work of the prosecution team led by Assistant U.S. Attorneys Brian Lowney and Zeno Baucus for the District of Montana. Our streets and our children are safer because of the HSTF’s efforts.”
Individual Indicted and Arrested for CarjackingRead the Press Release
SAN JUAN, Puerto Rico – On August 18, 2026, the Federal Bureau of Investigation arrested Benjamín Obed Velázquez Hernández, from San Juan, PR, with two carjackings, announced Héctor Ramírez Carbó, Acting United States Attorney for the District of Puerto Rico. On July 30, 2026, a federal grand jury returned an indictment charging Velázquez Hernández with two carjackings and two counts of firearms violations.
According to the Government’s allegations, on July 23, 2025, in the District of Puerto Rico, Benjamín Obed Velázquez Hernández, while carrying and brandishing a firearm, did take a motor vehicle, to wit: a white, Hyundai Santa Fe, that had been transported, shipped or received in interstate or foreign commerce, from the presence of an adult male, by force, violence and intimidation, with the intent to cause death and serious bodily harm. On August 13, 2025, Velázquez Hernández is also charged with the armed carjacking of a grey Mitsubishi Eclipse from an adult male by force, violence and intimidation. Both victims were working as Uber drivers at the time of the carjackings.
“The United States Attorney’s Office and our law enforcement partners will continue to work tirelessly to ensure that those who threaten our communities with senseless acts of violence face the consequences of their actions. I commend the Puerto Rico Police Bureau and the FBI for their excellent work in the investigation and arrest of this individual,” said Acting U.S. Attorney Ramírez-
Carbó.“FBI San Juan is committed to crushing violent crime and will continue to work diligently to disrupt carjackings, Hobbs Act violations, and kidnappings in Puerto Rico and the Virgin Islands,” said Carlos Goris, Special Agent in Charge FBI San Juan. “Protecting citizens and bringing justice will always remain our highest priority.”
The Federal Bureau of Investigation is in charge of the investigation.
Assistant U.S. Attorney R. Vance Eaton of the Violent Crimes and National Security Section is in charge of the prosecution of the case. If convicted, the defendant faces a sentence of up to fifteen years in prison for the carjackings and up to life in prison for the firearms charges.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Illegal Alien from France Indicted After Alleged Discriminatory Threats to a Car Dealership Employee and Bulk Store EmployeeRead the Press Release
St. George, Utah – An illegal alien from French Guiana, France, is in federal custody after a federal grand jury in St. George returned an indictment charging him with federal crimes after he allegedly made multiple discriminatory and threatening phone calls to a bulk store employee and a car dealership employee.
Ramchand Rattan, 44, residing illegally in Las Vegas, Nevada, was indicted on August 11, 2026.
According to allegations in court documents, between May 6, 2025 and May 24, 2025, Rattan made multiple threatening phone calls to an employee of a car dealership in St. George. The victim said he assisted two people, one of whom was later identified as Rattan, on May 6, 2025. The victim said the two took a couple of test drives and during the interaction, Rattan noticed the victim spoke with an accent and asked him where he was from. The victim said he was originally from Britain. A few days later, Rattan called the dealership and asked for the victim. Because the victim was not on the lot at the time, the employee gave Rattan the victim’s personal phone number. The victim then received multiple phone calls from Rattan. If the victim answered, Rattan would make accusations and threats and at times leave voicemails doing the same. Messages included Ratan stating on May 11, 2025, that he would “bust your f****** head” and “shoot you in your f****** head.” In the second message on May 12, 2026, Rattan said, “I will murder you!” and that he would “follow you all over the United States and murder you!” Rattan also threatened to go to the dealership that afternoon and murder the victim.Most recently, according to allegations in court documents, between January 17, 2026, and January 21, 2026, Rattan made multiple threatening phone calls to a bulk store employee in St. George. Employees reported that the male suspect spoke with an accent and demanded that a homosexual black employee he recently interacted with at the store be fired. Rattan allegedly used derogatory names for homosexuals and black people during the calls and threatened if black or homosexual employees were not fired, Rattan would blow up or burn the store down. In a recorded call, Rattan said “I’m going to turn your place into a BBQ joint. I’m going to light it up like a BBQ joint.”
According to U.S. Immigration and Customs Enforcement, Rattan is currently in the United States illegally with a pending asylum claim.
Rattan is charged with two counts of interstate communications with a threat to injure. His detention hearing is scheduled for August 25, 2026, at 10:00 a.m. before a U.S. Magistrate Court Judge in courtroom 2B at the courthouse located at 206 West Tabernacle Street, St. George, Utah 84470.
United States Attorney Melissa Holyoak of the District of Utah made the announcement.
The case is being investigated by the St. George Police Department and the FBI Salt Lake City Field Office’s St. George Resident Agency.
Assistant United States Attorney Chris Burton for the District of Utah is prosecuting the case.
Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Attachments:
rattan_indictment.pdf rattan_pos_reg_detention.pdfHomeland Security Task Force: Ten Defendants Sentenced in South Florida Cocaine Trafficking ConspiracyRead the Press Release
MIAMI – Ten defendants have been sentenced to federal prison for their roles in a South Florida cocaine trafficking conspiracy that involved cocaine supplied by a Mexican drug cartel and others.
U.S. District Judge Darrin P. Gayles sentenced Reinaldo Fernandez, 63, to 188 months in federal prison; Javier Garcia-Mora, 40, to 60 months; Michel Garcia, 50, to 57 months; Renier Mendez, 46, to 57 months; Elvis Alfonso, 40, to 64 months; Alfredo Miranda, 63, to 70 months; Yaniel Cardenal Frias, 32, to 75 months; and Jorge Victor Herrero Gamez, 33, to 82 months. Each pleaded guilty to conspiring to distribute and possess with intent to distribute five kilograms or more of cocaine.
Alberto Gonzalez, 39, was sentenced to 60 months in federal prison after pleading guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of cocaine. Daniel Gerardo Torres, 55, was sentenced to 21 months in federal prison after pleading guilty to conspiring to distribute and possess with intent to distribute cocaine.
“Mexican drug cartels do not get to establish a foothold in South Florida,” said U.S. Attorney Reding Quiñones for the Southern District of Florida. “This organization brought cartel-supplied cocaine into our communities, moved drugs and bulk cash across the country, and even had a cartel representative sent to Miami to oversee its interests. Ten defendants are now headed to federal prison. Through the Homeland Security Task Force, we will continue dismantling these networks from the cartel to the street and holding everyone involved accountable.”
According to court records, from at least September 2024 through September 2025, the defendants participated in a cocaine trafficking conspiracy operating throughout South Florida. Fernandez and other co-conspirators obtained cocaine from a Mexican drug cartel and other sources. Garcia-Mora, a Mexican national who was illegally present in the U.S., was sent to Miami by members of the cartel to oversee its interests in South Florida.
Garcia, Mendez, and Alfonso served as drivers for the organization, transporting cocaine and bulk U.S. currency throughout the U.S. Miranda, Cardenal Frias, Herrero Gamez, Gonzalez, and Torres bought and sold cocaine to and from Fernandez and others in South Florida.
As part of the investigation, law enforcement seized over $450,000 in narcotics proceeds.
Juan Miguel Torna Rojas, William Padron Perez, and Ricardo Oramas Valdes remain fugitives.
U.S. Attorney Reding Quiñones and Special Agent in Charge Miles Aley of the Drug Enforcement Administration (DEA), Miami Field Division, made the announcement.
DEA Miami Field Division investigated the case, with assistance from the City of Miami Police Department, Miami Springs Police Department, and Miami-Dade Sheriff’s Office.
Assistant U.S. Attorney Daya Nathan prosecuted the case. Assistant U.S. Attorney Sandra Demirci is handling asset forfeiture.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Miami comprises agents and officers from the FBI and the City of Miami Police Department with the prosecution being led by the United States Attorney’s Office for the Southern District of Florida.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 25-cr-20438.
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Hampton meth trafficker sentenced to over 10 years in prisonRead the Press Release
NORFOLK, Va. – A Hampton man was sentenced today to 10 years and six months in prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, on Sept. 26, 2025, law enforcement took Michael A. Wade, 52, into custody and conducted a search of the residence he shares with his family, including two minor children. Investigators recovered 430 grams of methamphetamine with an average purity of more than 98 percent, as well as drug packaging devices and materials. They also recovered 29 firearms and one silencer. Three of the recovered firearms had been reported stolen.
Theophani K. Stamos, First Assistant U.S. Attorney for the Eastern District of Virginia, and Anthony A. Spotswood, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorneys Luke Bresnahan and Amanda L. Cheney prosecuted the case.
Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:26-cr-35.
Guatemalan National Sentenced to a Year and a Day in Prison for Illegally Reentering the United States After Two DeportationsRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Alvaro Morales-Ortiz, 33, a Guatemalan national, was sentenced by United States District Judge Mia Roberts Perez to 12 months and one day in prison for illegally reentering the United States after prior deportations. Upon completing his prison sentence, he will be removed from the U.S. for a third time.
Morales-Ortiz had previously been removed in August 2018, following his arrest by Immigration and Customs Enforcement (“ICE”) for having ignored an immigration judge’s orders to depart the country the year prior, and in November 2023, after ICE located and arrested him in Philadelphia.
In September 2025, ICE learned that the defendant was back in the country and had been arrested in Delaware County — at least his third arrest while illegally in the U.S. Morales-Ortiz had been arrested by Philadelphia police in November 2016 and May 2019; both times, he failed to appear in court to answer to the charges against him.
This February, Morales-Ortiz was convicted of simple assault and harassment in the Delaware County Court of Common Pleas. At that time, ICE took Morales-Ortiz into federal custody on a criminal complaint and warrant. He was charged by indictment with illegal reentry the same month and pleaded guilty in April.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime.
The case was investigated by ICE Enforcement and Removal Operations and prosecuted by Assistant United States Attorney Michelle Rotella.
Grand Jury for the District of Nebraska - August 2026Read the Press Release
United States Attorney Lesley A. Woods announced the federal Grand Jury for the District of Nebraska has returned 15 unsealed Indictments charging 16 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
David Barrera Jr., age 48, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Barrera Jr. with distribution of 50 grams or more of methamphetamine on or about September 16, 2025. The maximum possible penalty if convicted is not less than 10 years and up to life imprisonment, a $10,000,000 fine, a term of supervised release of not less than 5 years and up to life, and a $100 special assessment. Count II charges Barrera Jr. with distribution of 50 grams or more of methamphetamine on or about October 1, 2025. The maximum possible penalty if convicted is not less than 10 years and up to life imprisonment, a $10,000,000 fine, a term of supervised release of not less than 5 years and up to life, and a $100 special assessment. Count III charges Barrera Jr. with distribution of 50 grams or more of methamphetamine on or about December 10, 2025. The maximum possible penalty if convicted is not less than 10 years and up to life imprisonment, a $10,000,000 fine, a term of supervised release of not less than 5 years and up to life, and a $100 special assessment. Count IV charges Barrera Jr. with possession with intent to distribute 50 grams or more of methamphetamine on or about December 10, 2025. The maximum possible penalty if convicted is not less than 10 years and up to life imprisonment, a $10,000,000 fine, a term of supervised release of not less than 5 years and up to life, and a $100 special assessment.
Gurarppan Singh Gill, age 23, of Seward, Nebraska, is charged with possession with intent to distribute 5 kilograms or more of cocaine on or about May 27, 2026. The maximum possible penalty if convicted is not less than 10 years and up to life of imprisonment, a $10,000,000 fine, a term of supervised release of not less than 5 years and up to life, and a $100 special assessment.
John M. Dubray, III, age 40, and Jill C. Dubray, age 40, of Columbus, Nebraska, are charged in a six-count Indictment. Count I charges John Dubray and Jill Dubray with conspiracy to commit bank fraud beginning on October 1, 2015, through on or about August 31, 2022. The maximum possible penalty if convicted is up to 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count II charges John Dubray and Jill Dubray with bank fraud on or about October 1, 2015, through on or about December 31, 2017. The maximum possible penalty if convicted is up to 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count III charges John Dubray and Jill Dubray with bank fraud on or about January 1, 2019, through on or about December 31, 2020. The maximum possible penalty if convicted is up to 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count IV charges John Dubray and Jill Dubray with credit union fraud on or about February 1, 2020, through on or about September 30, 2020. The maximum possible penalty if convicted is up to 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count V charges John Dubray with theft, embezzlement and misapplication by a bank officer on October 1, 2015, through on or about May 30, 2022. The maximum possible penalty if convicted is up to 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment. Count VI charges John Dubray with bank bribery on or about October 1, 2015, through on or about May 30, 2022. The maximum possible penalty if convicted is up to 30 years of imprisonment, a $1,000,000 fine, a 5-year term of supervised release, and a $100 special assessment.
Jennifer Marie Harlow, age 48, of Council Bluffs, Iowa, is charged with possession with intent to distribute 5 grams or more of methamphetamine on or about July 8, 2026. The maximum possible penalty if convicted is not less than 5 years and up to 40 years’ imprisonment, a $5,000,000 fine, a term of supervised release of not less than 4 years and up to life, and a $100 special assessment.
Jose Gerardo Ruiz Alonso, age 37, of Omaha, Nebraska, is charged in a two-count Indictment. Count I charges Ruiz Alonso with being an alien in possession of a firearm on or about July 10, 2026. The maximum possible penalty if convicted is up to 15 years of imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges Ruiz Alonso with being an alien in possession of a firearm on or about July 21, 2026. The maximum possible penalty if convicted is up to 15 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
The following individuals were charged with being an alien, who previously had been excluded, deported and removed from the United States and were found in the United States, without the Attorney General of the United States or his designated successor having expressly consented to the defendant’s reapplication for admission into the United States:
Josue Isaac Ayala Melgar, age 40
Oscar Aguilar-Pablo, age 41
Luis Antonio Chavez Portillo, age 40
Abraham Gonzalez-Garcia, age 48
Migel Silvas-Ledesma, age 40
Jairo Garcia Murillo, age 44
Andres Ambrocio Perez, age 30
The maximum possible penalty if convicted is 2 years of imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
The following individuals were charged with being an alien, who previously had been excluded, deported and removed from the United States following a felony conviction and were found in the United States, without the Attorney General of the United States or his designated successor having expressly consented to the defendant’s reapplication for admission into the United States:
Salvador Mora Cisneros, age 45
Antonio Manuel Lucero Reyes, age 63
The maximum possible penalty if convicted is 10 years of imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment
The following individuals were charged with being an alien, who previously had been excluded, deported and removed from the United States following an aggravated felony conviction and were found in the United States, without the Attorney General of the United States or his designated successor having expressly consented to the defendant’s reapplication for admission into the United States:
Francisco Javier Ledesma Santa Cruz, age 36
The maximum possible penalty if convicted is 20 years of imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
Gainesville Man Sentenced to Federal Prison for Unlawful Possession of FirearmsRead the Press Release
Gainesville, Florida – Kenneth Ellis Wetherington, 60, of Gainesville, Florida, was sentenced to 14 months in federal prison for one count of possession of a firearm and ammunition by a convicted felon. The sentence was announced by John P. Heekin, United States Attorney for the Northern District of Florida.
U.S. Attorney Heekin said: “Keeping firearms out of the hands of dangerous criminals, like this serial felon, is necessary to ensure the safety of our communities, and my office will continue to aggressively prosecute cases like these to ensure our citizens can enjoy the safe streets they deserve.”
Court documents reflect that on the evening of November 21, 2025, law enforcement was dispatched to an apartment complex in reference to multiple reports of shots fired. Upon further investigation, law enforcement learned that the defendant had discharged several “warning shots” from a firearm during a confrontation with other individuals on the property. Law enforcement detained the defendant and obtained a search warrant for his apartment, where they located a handgun, a shotgun, and multiple types of ammunition. The defendant is not permitted to have any firearms or ammunition because he has eleven felony convictions, including a prior conviction for possession of a firearm by a convicted felon.
“This sentence is a reminder that there are consequences for violating the law,” said Gainesville Police Chief Nelson Moya. “We will continue to work with our federal partners to hold those who illegally possess firearms accountable and help keep our community safe.”
The case involved an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Gainesville Police Department. Assistant United States Attorney Adam Hapner prosecuted the case.
Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit https://www.justice.gov/usao-ndfl.
Four Members of the “War Room” Charged in Connection with $12M Medicaid Fraud SchemeRead the Press Release
The Justice Department announced today the unsealing of a nine-count Indictment charging Louis Trejo, also known as “Machete;” Kenneth Garner, also known as “KG;” Harold Stevenson, also known as “Bazz;” and Erihk Belis, also known as “Eddie” with racketeering, violence in aid of racketeering, firearms, fraud, narcotics, and money laundering offenses for their roles in a wide ranging racketeering conspiracy involving the fabrication of transportation data used to support over at least $12 million of fraudulent Medicaid claims.
The defendants, members of a Bronx-based racketeering organization known as the “War Room,” logged fake rides for Medicaid patients to and from methadone clinics in the Bronx, paid recurring kickbacks to Medicaid patients in cash and drugs, and laundered millions of dollars in fraud proceeds obtained from the scheme. To protect and expand their racketeering conspiracy, Trejo, Garner, and other members of the War Room also engaged in violence against their rivals, including a Jan. 12, 2024, armed home invasion robbery of the leader of a rival fraud ring in Teaneck, New Jersey. Trejo, Garner, and Belis were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. Stevenson remains at large. The case is assigned to District Judge John G. Koeltl.
“Today’s allegations underscore the troubling connection between benefits fraud and violent criminal networks,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As charged, the defendants are accused of targeting vulnerable patients, defrauding a critical healthcare program, and turning to violence to protect their fraudulent scheme. I commend the prosecutors and agents of the Southern District of New York for their dedicated work in bringing these serious allegations forward.”
“As alleged, members of the War Room perpetrated a massive fraud scheme that preyed upon the addiction of vulnerable Medicaid patients, defrauded a vital federal healthcare program, and caused over $12 million in losses to American taxpayers,” said U.S. Attorney Jamie McDonald for the Southern District of New York. “To protect and grow their scheme, War Room members allegedly peddled deadly drugs, committed an armed robbery against a rival fraud ring, and laundered their profits. Today’s arrests dismantled the War Room’s racketeering operation and demonstrate that we will relentlessly pursue those who defraud federal benefit programs and endanger our communities through drugs and violence.”
“These defendants are accused of masterminding a brazen scheme built on greed and exploitation, turning Medicaid-funded addiction treatment transportation into a multimillion-dollar criminal pipeline through fake ride data, GPS spoofing, kickbacks, narcotics, and money laundering,” said Acting Special Agent in Charge Pete Gizas of Homeland Security Investigations (HSI), New York Field Office. “Far from a victimless fraud, this alleged racketeering operation exploited vulnerable patients seeking treatment, stole from a taxpayer-funded healthcare program, and injected narcotics and violence into the criminal enterprise. When their profits were threatened, members of the ‘War Room’ allegedly escalated to armed violence, including with a home invasion during which victims were restrained, assaulted, cut, and held at gunpoint. As a co-leader of the Homeland Security Task Force, HSI New York will continue working relentlessly with our partners to expose violent fraud enterprises, disrupt their financial networks, and hold alleged perpetrators accountable.”
“The alleged scheme exploited individuals seeking addiction treatment and diverted millions in federal health care funds,” said Special Agent in Charge Naomi D. Gruchacz of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This investigation highlights our commitment to working with Homeland Security Investigations and other law enforcement partners to pursue fraudsters who undermine the Medicaid program and the needs of its enrollees.”
“Today’s arrests send a clear message: exploiting Medicaid for personal gain will not be tolerated,” said Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS), New York Division. “These individuals allegedly stole millions from a program designed to protect some of our most vulnerable citizens, and in doing so, betrayed the trust of the public. Postal Inspectors will defend against all types of fraudsters, and I commend the hard work and partnership of our federal and state partners to ensure all are held fully accountable under the law.”
“These defendants allegedly engaged in a systematic fabrication of data and kickbacks to steal over $12 million at the expense of New Yorkers in need,” said New York State Comptroller Thomas P. DiNapoli. “Medicaid is a vital program, and my office will continue to work with law enforcement to hold people who try to defraud it accountable. I thank the United States Attorney and federal law enforcement for their work with my office to bring these defendants to justice.”
As alleged in the Indictment, from at least in or about 2023 through at least in or about 2025, the defendants, led by Trejo and Garner, operated the War Room, a criminal enterprise responsible for generating fake ride data used to support millions of dollars in fraudulent reimbursement claims to Medicaid for methadone clinic transportation services. The defendants operated out of an office in Trejo’s residence they referred to as the “War Room,” and engaged in, among other things, criminal acts involving wire fraud, healthcare fraud, violations of the Anti-Kickback Statute, narcotics distribution, robbery, firearms use, and money laundering.
To obfuscate their criminal activity, the defendants operated the War Room under the guise of a legitimate charity they called the “Forward Foundation.” In reality, the Forward Foundation was a front for the criminal activities of the War Room. An organizational chart drawn on a white board located inside Trejo’s residence, depicted below, identified each defendant’s nominal role. Trejo, identified as “Lou,” is the “CEO.” Garner, identified as “KG,” is the “COO.” Stevenson, identified as “Bazz,” is an “outreach member m[ana]g[e]r.” Belis, identified as “Erihk,” is “Vice President.”
Organizational chart drawn on a white board located inside Trejo’s residenceTo generate fake ride data to support fraudulent Medicaid claims, the defendants recruited Medicaid-eligible patients from methadone clinics located in the Bronx and Manhattan to sign up for medical transportation rides that are reimbursable by Medicaid, but which were not actually provided to the patients. The defendants entered the patients’ names and information into cellphones equipped with a ride-tracking application meant to be used by drivers to log actual rides. Members of the War Room then used the cellphones to log rides for the patients without providing any actual transportation services. To cover up the fact that the ride data was fabricated, the defendants used a GPS “spoofing” application to falsify the GPS coordinates associated with the pickup and drop-off locations, to make the location data appear as if the rides had been provided. In exchange for the use of the Medicaid patients’ enrollment information, the defendants paid the patients, who were meant to be receiving taxpayer-funded addiction treatment, weekly kickbacks in cash and drugs, including fentanyl and heroin.
Using these methods, the War Room’s fraud scheme generated data for hundreds of fake rides per week, which were provided to various collusive New York-area transportation companies, which in turn submitted the fake data to Medicaid to justify the fraudulent claims. The defendants were compensated by the transportation companies for whom they generated fake ride data and then laundered the proceeds to conceal their source and nature. The War Room’s fake rides scheme generated millions of dollars in fraudulent Medicaid claims for the transportation companies. For example, from in or about 2023 through in or about 2025, three transportation companies that made direct payments to the War Room collectively submitted over $12 million in “unmatched” Medicaid claims — that is, claims for medical transportation services for which no medical provider submitted corresponding claims reflecting actual medical services provided.
Multiple fraud rings competed for the same patients at the same methadone clinics. To protect the War Room’s profits and expand their reach, Trejo and Garner directed other members of the War Room to commit a home invasion robbery against the leader of a rival Medicaid fraud ring (Victim-1) at Victim-1’s home in Teaneck, New Jersey, believing that Victim‑1 kept millions of dollars in cash fraud proceeds and drugs inside his home. On or about Jan. 12, 2024, at the direction of Trejo and Garner, members of the War Room committed the violent home robbery. Masked and armed with a gun, members and associates of the War Room entered Victim-1’s residence while others waited outside as lookouts. Inside, the robbers used zip ties to tie up the occupants of the residence, including Victim‑1, pistol-whipped one of the occupants, intentionally cut Victim-1’s hands, and held the victims at gunpoint for multiple hours. The robbery crew did not find the large stash of cash or drugs that Garner and Trejo expected but fled with approximately $25,000 in cash and other assorted items.
A chart identifying the names, ages, charges, and maximum penalties for the defendants, each of whom resides in the Bronx, is set forth below.
The statutory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy, and Patrick J. Gallagher for the Southern District of New York are in charge of the prosecution.
CountDefendantsMinium & Maximum Penalties1. Racketeering ConspiracyLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of life in prison2. Assault with a Deadly Weapon in Aid of RacketeeringLouis Trejo (43)
Kenneth Garner (48)
Maximum sentence of 20 years in prison3. Firearms UseLouis Trejo (43)
Kenneth Garner (48)
Mandatory minimum of seven years in prison
Maximum sentence of life in prison
4. Conspiracy to Commit Wire Fraud & Health Care FraudLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of 20 years in prison5. Wire FraudLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of 20 years in prison6. Health Care FraudLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of 10 years in prison7. Conspiracy to Violate the Anti-Kickback StatuteLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Erihk Belis (50)
Maximum sentence of five years in prison8. Narcotics ConspiracyLouis Trejo (43)
Kenneth Garner (48)
Maximum sentence of 20 years in prison9. Money Laundering ConspiracyLouis Trejo (43)
Kenneth Garner (48)
Harold Stevenson (59)
Maximum sentence of 20 years in prisonAn indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Members of the “War Room” Charged in Connection with $12 Million Medicaid Fraud SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, Assistant Attorney General of the Justice Department’s National Fraud Enforcement Division, Colin M. McDonald, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), Pete Gizas, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (“HHS-OIG”), Naomi D. Gruchacz, Inspector in Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), Ketty Larco-Ward, and Comptroller for the Office of the New York State Comptroller, Thomas P. DiNapoli, announced today the unsealing of a nine-count Indictment charging LOUIS TREJO, a/k/a “Machete,” KENNETH GARNER, a/k/a “KG,” HAROLD STEVENSON, a/k/a “Bazz,” and ERIHK BELIS, a/k/a “Eddie,” with racketeering, violence in aid of racketeering, firearms, fraud, narcotics, and money laundering offenses for their roles in a wide ranging racketeering conspiracy involving the fabrication of transportation data used to support over at least $12 million of fraudulent Medicaid claims. The defendants, members of a Bronx-based racketeering organization known as the “War Room,” logged fake rides for Medicaid patients to and from methadone clinics in the Bronx, paid recurring kickbacks to Medicaid patients in cash and drugs, and laundered millions of dollars in fraud proceeds obtained from the scheme. To protect and expand their racketeering conspiracy, TREJO, GARNER, and other members of the War Room also engaged in violence against their rivals, including a January 12, 2024, armed home invasion robbery of the leader of a rival fraud ring in Teaneck, New Jersey. TREJO, GARNER, AND BELIS were arrested this morning and are expected to be arraigned today before U.S. Magistrate Judge Robert W. Lehrburger in Manhattan federal court. STEVENSON remains at large. The case is assigned to District Judge John G. Koeltl.
“As alleged, members of the War Room perpetrated a massive fraud scheme that preyed upon the addiction of vulnerable Medicaid patients, defrauded a vital federal healthcare program, and caused over $12 million in losses to American taxpayers,” said U.S. Attorney Jamie McDonald. “To protect and grow their scheme, War Room members allegedly peddled deadly drugs, committed an armed robbery against a rival fraud ring, and laundered their profits. Today’s arrests dismantled the War Room’s racketeering operation and demonstrate that we will relentlessly pursue those who defraud federal benefit programs and endanger our communities through drugs and violence.”
“Today’s allegations underscore the troubling connection between benefits fraud and violent criminal networks,” said Assistant Attorney General Colin M. McDonald. “As charged, the defendants are accused of targeting vulnerable patients, defrauding a critical healthcare program, and turning to violence to protect their fraudulent scheme. I commend the prosecutors and agents of the Southern District of New York for their dedicated work in bringing these serious allegations forward.”
“These defendants are accused of masterminding a brazen scheme built on greed and exploitation, turning Medicaid-funded addiction treatment transportation into a multimillion-dollar criminal pipeline through fake ride data, GPS spoofing, kickbacks, narcotics, and money laundering,” said HSI Acting Special Agent in Charge Pete Gizas. “Far from a victimless fraud, this alleged racketeering operation exploited vulnerable patients seeking treatment, stole from a taxpayer-funded healthcare program, and injected narcotics and violence into the criminal enterprise. When their profits were threatened, members of the ‘War Room’ allegedly escalated to armed violence, including with a home invasion during which victims were restrained, assaulted, cut, and held at gunpoint. As a co-leader of the Homeland Security Task Force, HSI New York will continue working relentlessly with our partners to expose violent fraud enterprises, disrupt their financial networks, and hold alleged perpetrators accountable.”
“The alleged scheme exploited individuals seeking addiction treatment and diverted millions in federal health care funds,” said HHS-OIG Special Agent in Charge Naomi D. Gruchacz. “This investigation highlights our commitment to working with Homeland Security Investigations and other law enforcement partners to pursue fraudsters who undermine the Medicaid program and the needs of its enrollees.”
“Today’s arrests send a clear message: exploiting Medicaid for personal gain will not be tolerated,” said USPIS Inspector in Charge Ketty Larco-Ward. “These individuals allegedly stole millions from a program designed to protect some of our most vulnerable citizens, and in doing so, betrayed the trust of the public. Postal Inspectors will defend against all types of fraudsters, and I commend the hard work and partnership of our federal and state partners to ensure all are held fully accountable under the law.”
“These defendants allegedly engaged in a systematic fabrication of data and kickbacks to steal over $12 million at the expense of New Yorkers in need,” said New York State Comptroller Thomas P. DiNapoli. “Medicaid is a vital program, and my office will continue to work with law enforcement to hold people who try to defraud it accountable. I thank the United States Attorney and federal law enforcement for their work with my office to bring these defendants to justice.”
As alleged in the Indictment:(1)
From at least in or about 2023 through at least in or about 2025, the defendants, led by TREJO and GARNER, operated the War Room, a criminal enterprise responsible for generating fake ride data used to support millions of dollars in fraudulent reimbursement claims to Medicaid for methadone clinic transportation services. The defendants operated out of an office in TREJO’s residence they referred to as the “War Room,” and engaged in, among other things, criminal acts involving wire fraud, healthcare fraud, violations of the Anti-Kickback Statute, narcotics distribution, robbery, firearms use, and money laundering.
To obfuscate their criminal activity, the defendants operated the War Room under the guise of a legitimate charity they called the “Forward Foundation.” In reality, the Forward Foundation was a front for the criminal activities of the War Room. An organizational chart drawn on a white board located inside TREJO’s residence, depicted below, identified each defendant’s nominal role. TREJO, identified as “Lou,” is the “CEO.” GARNER, identified as “KG,” is the “COO.” STEVENSON, identified as “Bazz,” is an “outreach member m[ana]g[e]r.” BELIS, identified as “Erihk,” is “Vice President.”
To generate fake ride data to support fraudulent Medicaid claims, the defendants recruited Medicaid-eligible patients from methadone clinics located in the Bronx and Manhattan to sign up for medical transportation rides that are reimbursable by Medicaid, but which were not actually provided to the patients. The defendants entered the patients’ names and information into cellphones equipped with a ride-tracking application meant to be used by drivers to log actual rides. Members of the War Room then used the cellphones to log rides for the patients without providing any actual transportation services. To cover up the fact that the ride data was fabricated, the defendants used a GPS “spoofing” application to falsify the GPS coordinates associated with the pickup and drop-off locations, to make the location data appear as if the rides had been provided. In exchange for the use of the Medicaid patients’ enrollment information, the defendants paid the patients, who were meant to be receiving taxpayer-funded addiction treatment, weekly kickbacks in cash and drugs, including fentanyl and heroin.
Using these methods, the War Room’s fraud scheme generated data for hundreds of fake rides per week, which were provided to various collusive New York-area transportation companies, which in turn submitted the fake data to Medicaid to justify the fraudulent claims. The defendants were compensated by the transportation companies for whom they generated fake ride data and then laundered the proceeds to conceal their source and nature. The War Room’s fake rides scheme generated millions of dollars in fraudulent Medicaid claims for the transportation companies. For example, from in or about 2023 through in or about 2025, three transportation companies that made direct payments to the War Room collectively submitted over $12 million in “unmatched” Medicaid claims—that is, claims for medical transportation services for which no medical provider submitted corresponding claims reflecting actual medical services provided.
Multiple fraud rings competed for the same patients at the same methadone clinics. To protect the War Room’s profits and expand their reach, TREJO and GARNER directed other members of the War Room to commit a home invasion robbery against the leader of a rival Medicaid fraud ring (“Victim-1”) at Victim-1’s home in Teaneck, New Jersey, believing that Victim‑1 kept millions of dollars in cash fraud proceeds and drugs inside his home. On or about January 12, 2024, at the direction of TREJO and GARNER, members of the War Room committed the violent home robbery. Masked and armed with a gun, members and associates of the War Room entered Victim-1’s residence while others waited outside as lookouts. Inside, the robbers used zip ties to tie up the occupants of the residence, including Victim‑1, pistol-whipped one of the occupants, intentionally cut Victim-1’s hands, and held the victims at gunpoint for multiple hours. The robbery crew did not find the large stash of cash or drugs that GARNER and TREJO expected but fled with approximately $25,000 in cash and other assorted items.
* * *
A chart identifying the names, ages, charges, and maximum penalties for the defendants, each of whom resides in the Bronx, is set forth below.
The statutory minimum and maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. McDonald praised the outstanding investigative work of Homeland Security Investigations, the Office of the Inspector General of the Department of Health and Human Services, the U.S. Postal Inspection Service, the New York City Police Department, the Office of the New York State Comptroller, and the Bergen County, New Jersey Prosecutor’s Office (“BCPO”), the BCPO Special Investigations Squad, the Teaneck, New Jersey Police Department, as well as the Special Agents and Task Force Officers assigned to the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys William C. Kinder, Mostafa Khairy, and Patrick J. Gallagher are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CountDefendantsMinium & Maximum PenaltiesLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of life in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
Mandatory minimum of seven years in prison
Maximum sentence of life in prison
LOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of 10 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
ERIHK BELIS (50)
Maximum sentence of five years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
Maximum sentence of 20 years in prisonLOUIS TREJO (43)
KENNETH GARNER (48)
HAROLD STEVENSON (59)
Maximum sentence of 20 years in prison^
As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Founder of Fashion Tech Company CaaStle Sentenced to Five Years in Prison for $300 Million Fraud SchemeRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, announced today that CHRISTINE HUNSICKER was sentenced to five years in prison for securities fraud. HUNSICKER previously pled guilty to one count of securities fraud in connection with a scheme to defraud hundreds of investors in CaaStle, a retail-technology business before U.S. District Judge J. Paul Oetken, who imposed today’s sentence.
“Christine Hunsicker perpetrated a large-scale fraud at CaaStle, falsely promoting her fashion-tech startup as a billion-dollar success when it was a counterfeit,” said U.S. Attorney Jamie McDonald. “Using forged documents and fabricated audits, Hunsicker stole $300 million from unwitting investors who believed her falsehoods. Besides harming investors in private markets, fraud in the startup space stunts growth and dims innovation. The women and men of this Office will work tirelessly to protect those investors and ensure integrity in those markets, so that innovation can thrive, and those who seek to undermine the integrity of those markets will face justice.”
According to the Indictment and other information in the public record:
Between 2019 and 2025, HUNSICKER, a well-known entrepreneur and businessperson in the fashion-tech industry, orchestrated a massive fraud scheme in which she duped investors into giving her nearly $300 million for CaaStle, a retail technology company she founded and led as CEO. While promoting CaaStle as a rapidly growing business valued at more than $1.4 billion, HUNSICKER knew that CaaStle was in financial distress with dwindling cash and significant expenses. To raise capital for CaaStle’s operations, HUNSICKER provided investors with falsified income statements, fake audited financial statements, fictitious bank records, and sham corporate documents that grossly overstated CaaStle’s operating profit, revenue, and available cash. She also misrepresented to investors that their funds would be used to purchase discounted shares from existing shareholders who needed liquidity, when in fact she fabricated the existence of those shareholders and used the money as new capital for CaaStle while concealing the company’s cash needs.
When confronted by an audit firm in October 2023 about transmitting a fake audit to an investor, HUNSICKER lied, falsely claiming that she had created the fake audit in connection with a lecture she gave at Princeton University, and that sending the audit to the investor had been a one-time error. She later repaid that investor to prevent the public disclosure of her fraud and continued furnishing fake financials to investors. In 2024, HUNSICKER also falsified the signatures of two prominent Board directors to make it appear that the Board had authorized the grant of stock options to another investor, raising more than $20 million for CaaStle.
In October 2024, HUNSICKER provided yet another investor with a fake draft audit. HUNSICKER tried to pay off that investor, but he refused. In December 2024, the CaaStle Board removed HUNSICKER as Chair and prohibited her from soliciting investments. Undeterred, HUNSICKER continued her fraudulent activities. She raised, and attempted to raise, new capital for CaaStle and P180, a related business venture. In February 2025, HUNSICKER attempted to sell an additional $19 million of her CaaStle shares to another investor. HUNSICKER persisted in her deceptive practices even after law enforcement agents seized her electronic devices in March 2025, continuing to meet with the investor about a fake audit without revealing its fraudulent nature, her removal from the Board, or the prohibition against her selling shares. CaaStle filed for Chapter 7 bankruptcy on June 20, 2025.
* * *
In addition to the prison term, HUNSCIKER, 49, of Lafayette, New Jersey, was sentenced to three years of supervised release. HUNSICKER was ordered to pay forfeiture and restitution to her victims, each in the amount of $283,291,940.
Mr. McDonald praised the outstanding work of the Federal Bureau of Investigation. Mr. McDonald also thanked the U.S. Securities and Exchange Commission for its assistance in the investigation.
The case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Marguerite B. Colson and Alexandra N. Rothman are in charge of the prosecution
Former Owner of Telemedicine Companies Sentenced to Two Years in Prison for $110 Million Medicare Fraud SchemeRead the Press Release
BOSTON – The former owner of Expansion Media (Expansion) and Hybrid Management Group (Hybrid) was sentenced today in federal court in Boston for a $110 million telemedicine fraud scheme involving medically unnecessary durable medical equipment (DME), including orthotics such as back and knee braces.
Steven Richardson, 42, of Port St. Lucie, Fla., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison, to be followed by two years of supervised release. In April 2024, Richardson pleaded guilty to one count of conspiracy to commit health care fraud. Richardson was charged in February 2024.
Between March 2016 and January 2023, Richardson, through his companies Expansion and Hybrid, entered into business relationships with telemarketing companies that generated leads by targeting Medicare beneficiaries. The telemarketers then paid Expansion and Hybrid on a per-order basis to generate orders for DME for these beneficiaries. To arrange for these orders to be signed, Richardson worked with medical staffing companies—including one in Massachusetts—to find doctors and nurses who were willing to review and sign prepopulated orders, typically without any contact with the beneficiaries. The records falsely portrayed the medical providers as having performed a legitimate examination of the beneficiary. Richardson then provided the signed orders to the telemarketing companies, which sold the orders to DME suppliers. Richardson knew that these DME suppliers would use the signed orders to submit claims to Medicare for DME that was medically unnecessary, based on false documentation and tainted by kickbacks.
United States Attorney Leah B. Foley; Roberto Coviello, Special Agent in Charge at the U.S. Department of Health and Human Services Office of Inspector General; Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; Justin Page, Acting Inspector in Charge, United States Postal Inspection Service, Boston Division; Kelly M. Lawson, Acting Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; and Jessica Herrington, Special Agent in Charge, Defense Criminal Investigation Service, Northeast Field Office made the announcement today. Assistant U.S. Attorneys Alexandra Brazier and Lindsey Ross of the Affirmative Civil Enforcement Unit prosecuted the case.
Former Massachusetts National Guardsman Sentenced to over Six Years in Prison for Possession and Distribution of Child Sexual Abuse MaterialRead the Press Release
BOSTON – A former Master Sergeant of the 102 Security Forces of the Massachusetts National Guard stationed in Sandwich, Mass., was sentenced yesterday in federal court in Boston for possession and distribution of child sexual abuse material (CSAM).
Nicholas Wells, 45, was sentenced by U.S. District Court Judge Indira Talwani to 78 months in prison, to be followed by five years of supervised release. In September 2025, Wells pleaded guilty to possession and distribution of child pornography. He was indicted by a federal grand jury in September 2024.
Wells engaged in chats on a messaging application, in which he discussed his interest in minors and distributed videos depicting child pornography. Over 300 images and 100 videos depicting child pornography were located on his phone. It was also determined that Wells distributed over 70 videos depicting child pornography, some of which involved infants.
United States Attorney Leah B. Foley and Ted E. Docks, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Massachusetts State Police and the Barnstable and Sandwich Police Departments. Assistant U.S. Attorney Brian J. Sullivan of the Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Immigration Services Officer Charged with Defrauding UnionRead the Press Release
BOSTON – A former Immigration Services Officer was charged and has agreed to plead guilty to stealing more than $60,000 from a labor union over the course of five years.
Carol A. Aguja, 55, of Reading, Mass., was charged with wire fraud. A plea hearing has not yet been scheduled by the Court.
According to court documents, Aguja was an Immigration Services Officer employed by the United States Citizenship and Immigration Services (USCIS). Between approximately 2015 and August 2024, Aguja also served as Treasurer of the American Federation of Government Employees Local 38 (AFGE Local 38), a labor organization that represented USCIS employees who lived in Massachusetts, Rhode Island and New Hampshire.
The charging document alleges that, between 2019 and 2024, Aguja defrauded AFGE Local 38 by siphoning funds from the union bank account to pay for her own personal and non-union related expenses. As part of her fraud scheme, Aguja is also alleged to have paid union expenses out of her personal accounts and commingled union and personal funds to conceal her embezzlement. Specifically, Aguja is alleged to have used the AFGE Local 38 credit card to pay approximately $12,508 for personal expenses such as restaurant meals, bills, clothing and dance lessons. She is further alleged to have made 128 cash withdrawals totaling over $23,700 from the AFGE Local 38 account, and to have transferred over $25,000 from the AFGE Local 38 account to her personal accounts. Aguja is alleged to have falsified annual forms regarding the union finances that AFGE Local 38 was required to submit to the United States Department of Labor-Management Standards, in order to conceal her fraud.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Leah B. Foley; Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards; and Inspector General Joseph V. Cuffari, Ph.D., U.S. Department of Homeland Security, Office of Inspector General made the announcement today. Assistant U.S. Attorney Kristina E. Barclay of the Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Former Georgia Correctional Officer Cadet Sentenced for Meth SmugglingRead the Press Release
MACON, Ga. – A former Georgia correctional officer cadet who attempted to bring more than a half kilogram of unadulterated methamphetamine into Dooly State Prison for an inmate was sentenced to serve 10 years in prison for his crime.
"The penalties are steep when trusted members of the prison system smuggle contraband behind bars, as this exponentially increases the danger for everyone both inside and outside the prison walls," said U.S. Attorney William R. "Will" Keyes. "We are grateful to the dedicated correctional officers who protect the safety and security of our prisons each day, often under challenging circumstances. Their commitment and professionalism are essential to maintaining order and upholding justice.”
“The GDC does not tolerate actions of individuals who choose to bring discredit to the values of our agency and jeopardize our non-negotiable mission of public safety,” said GDC Commissioner Tyrone Oliver. “We appreciate the support of our federal partners in ensuring that justice will be served on this former cadet, and we are proud of those officers involved who were diligent in stopping the introduction of dangerous contraband into one of our facilities.”
“This case is a clear example of why accountability matters. A person entrusted with becoming a correctional officer chose instead to participate in the smuggling of methamphetamine into a prison,” said Jae W. Chung, Special Agent in Charge of the DEA Atlanta Field Division. “That conduct threatens the safety and security of the entire correctional system. Working together with our law enforcement partners, we will continue to identify those who attempt to bring dangerous drugs behind prison walls and ensure they face the consequences of their actions.”
Julius Deshawn Williams Jr., 29, of Bonaire, Georgia, was sentenced to serve 120 months in prison to be followed by five years of supervised release by U.S. District Judge C. Ashley Royal on Aug. 19, after he pleaded guilty to one count of possession with intent to distribute methamphetamine on Dec.1, 2025. There is no parole in the federal system.
According to statements referenced in court, Williams was a cadet undergoing training to become a correctional officer at Dooly State Prison. On June 24, 2024, when Georgia Department of Corrections (GDC) officers conducted the security check and shake-down required of every person attempting to enter the facility, they found four packages containing methamphetamine wrapped in black tape and hidden in the defendant’s pants. Next, his vehicle was searched, and GDC officers found four more packages of methamphetamine wrapped in black electrical tape and a pistol. Williams admitted he was attempting to bring the drugs into the prison to give to an inmate. The packages contained 640 grams of methamphetamine with 100% purity.
The Drug Enforcement Administration (DEA) and the Georgia Department of Corrections (GDC) investigated the case.
Assistant U.S. Attorney Travis Lynes prosecuted the case for the Government.
Former Chicago School Principal and Two Others Sentenced to Federal Prison in Connection with Million-Dollar Procurement Fraud SchemesRead the Press Release
CHICAGO — A former Chicago school principal and two others have been sentenced to federal prison for their roles in procurement fraud schemes that defrauded a pair of school systems and a non-profit organization out of more than $1 million.
BRIAN METCALF, KIMBERLY MADDOX, and JAMES DARNELL CAMPBELL schemed to illegally profit from various roles Metcalf held in school systems in Chicago and Indianapolis, as well as a non-profit corporation. Over the course of nearly ten years, Metcalf and Maddox falsely claimed that Maddox or her spouse were providing services to the schools and the non-profit corporation, when in reality, no such services were provided. As a result of Metcalf’s and Maddox’s fraud, the school systems and the non-profit organization paid Maddox nearly $700,000, which she split with Metcalf.
While Metcalf and Maddox were engaging in their fraud, Campbell, who worked as a consultant, approached Metcalf and said he wanted to join the scheme. At that time Metcalf was serving as the superintendent of a school system in Indianapolis. Metcalf caused the Indianapolis school system to pay Campbell nearly $400,000 based on bogus invoices for consulting work that was never performed. Campbell split those fraud proceeds with Metcalf.
Metcalf, 52, of Baltimore, Md., Maddox, 55, of Matteson, Ill., and Campbell, 59, of Frankfort, Ill., pleaded guilty to federal wire fraud charges. On Wednesday, U.S. District Judge Lindsay C. Jenkins sentenced Metcalf to a year and a day in federal prison. Last month, Judge Jenkins sentenced Maddox to two years in prison and Campbell to a year and a day. All three defendants were ordered to pay restitution totaling $1,099,200.
The sentences were announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois; Michael Pritchard, the Official Performing the Duty of Inspector General for AmeriCorps; Scott Wingle, Acting Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Central Regional Office; and Philip Wagenknecht, Inspector General for Chicago Public Schools. The U.S. Small Business Administration participated in the investigation. The government was represented by Assistant U.S. Attorney Jennifer Chang.
“When officials defraud school systems, they are eroding trust and stealing from the very futures they are meant to protect,” said U.S. Attorney Boutros. “Holding individuals accountable when they exploit their positions for personal gain sends a strong message that such betrayal will not be tolerated and even more, that the Chicago U.S. Attorney’s Office and federal law enforcement will work hard to protect the integrity of our education system and to ensure that taxpayer funds are properly safeguarded.”
“The outcome of this case serves as a strong deterrent to anyone considering similar criminal acts,” said AmeriCorps OIG Official Pritchard. “Those who steal from organizations funded by federal support will face serious consequences. AmeriCorps OIG is committed to working closely with our law enforcement partners to uncover and address such misconduct. We extend our sincere gratitude to the U.S. Department of Education OIG, the Small Business Administration OIG, and the United States Attorney’s Office for the Northern District of Illinois for their unwavering cooperation and dedication to the pursuit of justice.”
“I am proud of the work of OIG Special Agents and our law enforcement partners in holding these individuals accountable for their criminal actions,” said DOE-OIG Acting SAC Wingle. “And rest assured that we will continue to aggressively pursue those who misappropriate education funds or try to game the system for their own selfish purposes. Our nation’s students and taxpayers deserve nothing less.”
“Administrators who use their position to enrich themselves and deprive CPS families of critical resources will not be tolerated, and neither will vendors who steal from CPS,” said Inspector General Wagenknecht. “CPS OIG investigators are committed to rooting out fraud and corruption in the school district, and we greatly appreciate the work of our law enforcement partners in holding these individuals accountable.”
Finance Director Charged with Insider TradingRead the Press Release
United States Attorney for the Southern District of New York, Jamie McDonald, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James C. Barnacle, Jr., announced today the unsealing of an Indictment charging JESSE MITCHELL with securities fraud. The charges arise from an alleged insider trading scheme in which MITCHELL traded on misappropriated material nonpublic information ahead of public earnings announcements by his then-employer, The Trade Desk (“TTD”) and, as a result, generated more than $338,000 in profits. MITCHELL was arrested today and will be presented in the U.S. District Court for the Central District of California. The case has been assigned to U.S. District Judge Jennifer H. Rearden.
“Jesse Mitchell allegedly stole confidential information from his employer and made more than $300,000 in illegal trades,” said U.S. Attorney Jamie McDonald. “Confidential information is not a personal profit opportunity, and today’s unsealing of the indictment makes that clear. Importantly, insider trading not only harms investors and the companies from which the information was misappropriated, it undermines the public’s trust in our markets. This Office will continue to combat insider trading in order to vindicate victims’ rights and ensure the integrity of our markets.”
“Jesse Mitchell’s alleged insider trading is fundamentally wrong,” said FBI Assistant Director in Charge James C. Barnacle, Jr. “FBI New York's Financial Crimes Task Force is working every day to identify and investigate financial crimes, including insider trading. In alignment with the Vice President’s Fraud Task Force, FBI New York will continue working diligently to protect the public from fraud in all its forms.”
According to the allegations in the Indictment:(1)
Around June 2024, MITCHELL began working at TTD, a publicly-traded multinational technology company, as a Senior Director in TTD’s financial planning and analysis team. In that role, MITCHELL had access to TTD’s confidential financial information and results, including revenue and earnings results and other financial metrics, before they were publicly disclosed. By virtue of his employment, MITCHELL owed a duty of trust and confidence to TTD and was prohibited from misusing or disclosing TTD’s confidential information for personal gain. MITCHELL was also prohibited by company policy from trading in any security while in possession of material nonpublic information relating to that security; trading in TTD securities during quarterly “blackout” periods preceding earnings announcements; and trading TTD options, including put or call options.
In August 2024, TTD published financial results for the second quarter of 2024 that exceeded its previously disclosed revenue estimate. Following the announcement, TTD’s stock price increased approximately 12%. During a trading blackout period in advance of TTD’s earnings announcement, MITCHELL purchased TTD stock. At the time, MITCHELL was aware of TTD’s nonpublic quarterly financial results. After TTD’s public earnings announcement, MITCHELL sold the shares, netting approximately $19,696.11 in profits from his illegal trading.
In February 2025, TTD published financial results for the fourth quarter of 2024 that fell below its previously disclosed revenue estimate. This marked the first time TTD had missed revenue expectations since going public in 2016. Following the announcement, TTD’s stock price dropped approximately 30%. During a trading blackout period in advance of TTD’s earnings announcement, MITCHELL purchased TTD put options. At the time, MITCHELL was aware of TTD’s nonpublic quarterly financial results. After TTD’s public earnings announcement MITCHELL sold all his TTD put options, realizing approximately $318,362.45 in profits from his illegal trading.
* * *
MITCHELL, 48, of Ventura, CA, is charged with one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison; and one count of securities fraud under Title 18, which carries a maximum sentence of 25 years in prison.
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. McDonald thanked the FBI. Mr. McDonald further thanked the U.S. Securities and Exchange Commission and the Financial Industry Regulatory Authority.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Justin V. Rodriguez and Christy Slavik are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
^
As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.
Farmington Resident Sentenced to 70 Months in Prison for Distributing and Possessing Child Sexual Abuse MaterialRead the Press Release
PITTSBURGH, Pa. - A resident of Farmington, Pennsylvania, was sentenced in federal court to 70 months of imprisonment, to be followed by 10 years of supervised release on his convictions of distribution of a visual depiction of a minor engaged in sexually explicit conduct and possession of material depicting the sexual exploitation of minors, United States Attorney Troy Rivetti announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Nathan Fike, 41, on August 20, 2026.
According to the information presented to the Court, on or about October 4, 2023, Fike distributed a video depicting a prepubescent minor engaged in sexually explicit conduct to an undercover agent of the Federal Bureau of Investigation’s Child Exploitation and Human Trafficking Task Force in Jacksonville, Florida. Then, on February 9, 2024, the FBI executed a federal search warrant on the defendant’s residence and discovered he was in possession of approximately 156 images and 63 videos depicting the sexual exploitation of minors, some of whom were prepubescent or minors who had not attained 12 years of age.
Assistant United States Attorney V. Joseph Sonson prosecuted this case on behalf of the United States.
The Federal Bureau of Investigation conducted the investigation that led to the successful prosecution of Fike.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dallas man indicted for multi-million-dollar bank and wire fraud schemeRead the Press Release
DALLAS — United States Attorney for the Northern District of Texas, Ryan Raybould, announced that a Dallas man was charged Aug. 19 in a sweeping, multi‑count indictment alleging he defrauded banks and individual lenders out of more than $20 million.
A federal grand jury returned a six‑count indictment against Garrett Douglas Johnson, 41, charging him with five counts of bank fraud and one count of wire fraud.
“As alleged, Mr. Johnson repeatedly falsified his financial records to obtain millions in loans, inflicting significant losses on banks and private lenders,” said U.S. Attorney Ryan Raybould. “This conduct strikes at the integrity of our banking system and financial markets, institutions that are foundational to North Texas’s rapid economic expansion and its emergence as a national center for the financial industry. As more companies and financial firms relocate to the region, maintaining trust in these markets is indispensable to sustaining that growth. We will continue to aggressively pursue major financial fraud cases and hold accountable those who threaten the strength and stability of our financial system.”
According to the indictment, Johnson, who maintained residences in Dallas, Texas, and Kingston and Edmond, Oklahoma, held himself out as the manager, owner, or partner of several business entities, including Federal Employee Services, LLC; American Select Partners, LLC; Marina Del Rey, LLC; Hard Knox Holdings, LLC; Hilyard Capital, LLC; Sloan Ventures, LLC; 30Days Holdings, LLC; Jet Texas Oil, LLC; Jett Holdings, LLC; and Blue Duck Energy, LTD.
The indictment alleges that from 2018 through 2024, Johnson engaged in a long‑running scheme in which he secured loans by submitting falsified financial documents, overstated revenue claims and fabricated trust‑account balances. In many cases, prosecutors say Johnson failed to disclose substantial existing loan obligations while claiming to hold millions of dollars in escrowed funds in law‑firm‑managed trust accounts that did not exist.
Johnson allegedly obtained more than $40 million in loans, largely from FDIC‑insured financial institutions including Texas Capital Bank, Happy State Bank, American National Bank & Trust, Gateway First Bank and others. He is accused of using new loan proceeds to pay off previous fraudulent loans, diverting funds for unrelated business ventures and moving more than $100,000 into a personal account to pay the IRS.
Among the specific acts outlined in the indictment:
- In August 2020, Johnson secured a $1.5 million loan from Texas Capital Bank after falsely claiming he held more than $6.6 million in a trust account.
- In December 2021, he obtained a $9.23 million loan from Happy State Bank intended for marina improvements but instead diverted millions to purchase oil and gas interests.
- In April 2022, Johnson secured a $6.5 million revolving line of credit by falsely representing that American Select Partners held over $9 million in accounts receivable.
- In December 2022, he obtained another $1 million extension on that line of credit based on further misrepresentations.
- In July 2022, he secured a $5 million loan to 30Days Holdings using similar fraudulent claims about trust‑account balances and accounts receivable.
- In one instance, Johnson allegedly induced an individual lender (“Individual A”) to wire $2.5 million based on false assurances about purchasing a partner’s stake in Blue Duck Energy, an interest Johnson knew was not actually for sale.
If convicted, Johnson faces up to 30 years in federal prison on each bank fraud count and up to 20 years on the wire fraud count. The indictment also seeks forfeiture of any property traceable to the offenses.
The FBI – Dallas Field Office conducted the investigation. Assistant U.S. Attorney Chad E. Meacham from the Fraud section is prosecuting the case.
An indictment is merely an allegation of criminal conduct, not evidence. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Country Club Agrees to Pay over $1 Million to Resolve False Claims Act Allegations of Improper Receipt of Paycheck Protection Program LoanRead the Press Release
WASHINGTON – United States Attorney for the District of Columbia, Jeanine Ferris Pirro, announced today that Secession Golf Club, Inc. (“Secession”) agreed to pay $1,047,991 to resolve allegations that the club violated the False Claims Act when it applied for and received a loan under the Paycheck Protection Program (“PPP”) for which it was not eligible.
When Congress enacted the Coronavirus, Aid, Relief, and Economic Security (“CARES”) Act, it authorized forgivable PPP loans to eligible small businesses and nonprofit organizations for job retention and certain other expenses. The PPP loan program was administered by the Small Business Administration (“SBA”). At the time of the loan covered by this settlement, certain entities organized under section 501(c) of the Internal Revenue Code were not eligible for PPP loans, including section 501(c)(7) organizations.
In 2020, Secession, a country club located in Beaufort, South Carolina, applied for a PPP loan in the amount of $630,750 and certified that it was eligible to receive the loan even though it was ineligible as a section 501(c)(7) nonprofit organization. After receiving the PPP loan, Secession sought and received forgiveness of the entire loan amount. The United States contended that Secession knowingly falsely represented its eligibility to receive the PPP loan, which caused the SBA to pay lender fees to the bank that processed the loan, and to receive forgiveness of that loan.
The settlement resolves claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under these provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. The qui tam complaint was filed by Relator Aidan Forsyth and is captioned United States ex rel. Aidan Forsyth v. Club at Morningside Inc., et al., Civ. A. No. 24-1175 (D.D.C.). Mr. Forsyth will receive a total share of approximately $115,279.01 in connection with the settlement.
The civil settlement resulted from an investigation by Assistant United States Attorney Sean M. Tepe and Auditor Timothy J. Hurley with the support of attorney Caitlin J. Kelly of SBA’s Office of the General Counsel.
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.
Tips and complaints regarding potential fraud affecting COVID-19 government relief programs can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or by submitting a NCDF Web Complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The claims resolved by the civil settlement are allegations only, and there has been no determination of liability.
secession_settlement_agreement_-_fully_executed_8.11.26.pdfConvicted Sexual Predator Sentenced to Federal Prison for Illegal Reentry into the United States After Prior DeportationRead the Press Release
Jacksonville, Florida – Miguel Solis-Morales (43, Mexico) has been sentenced by U.S. District Judge Jordan E. Pratt to two years and six months in federal prison for illegally reentering the United States after he was deported by immigration authorities in 2015. After serving this federal prison sentence, Solis will be deported and removed back to Mexico. U.S. Attorney Gregory W. Kehoe made the announcement.
According to federal and state court documents, Solis was convicted of sexual battery on September 10, 2009, in Jacksonville. He was then designated as a sexual predator under Florida law and sentenced to five years in Florida state prison. After serving his state prison sentence, in May 2015, Solis-Morales was removed from the United States by immigration authorities and returned to Mexico. On February 16, 2026, Solis-Morales was found to be voluntarily back in the United States in Jacksonville and was arrested by the Florida Highway Patrol for a violation of state probation. Records checks confirmed that Solis-Morales had never applied to U.S. immigration authorities for permission to lawfully reenter the United States after his removal.
This case was investigated by the Florida Highway Patrol and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
Convicted Kidnapper Who Put Hit on Victim Sentenced to 45 years in PrisonRead the Press Release
WILMINGTON, Del. (August 20, 2026) – A Seaford, Delaware, man was sentenced August 17, 2026, to 45 years in prison for kidnapping, carjacking, and cyberstalking. U.S. District Judge Richard G. Andrews imposed the sentence.
According to court documents and evidence presented at sentencing, Ralph Harmon, 26, approached an elderly woman outside her residence in Seaford, Delaware, on January 13, 2023, when he brandished what appeared to be a firearm, placed his arm on the victim, and forced her into her vehicle. Once inside, the victim tried to escape out the passenger door, but Harmon pistol-whipped her to make her comply and remain inside the car. Harmon then left the victim’s residence and drove towards Laurel, Delaware, where he stopped along the way and forced the victim to give over ATM information for Harmon to use.
Harmon then crossed into Maryland, pulled over, and sexually assaulted the victim. Harmon forced the victim to lay face down in the front passenger seat, where Harmon tied the victim’s hands with a shoelace before continuing to drive. Harmon took the victim to a residential neighborhood where he forced her to a dock in the backyard. Harmon then shoved the victim, still bound, into the Wicomico River. When the victim surfaced, Harmon pistol-whipped the victim a second time with what Harmon later stated was an intent to kill the victim. After Harmon fled the area, the victim climbed out of the river and received assistance from bystanders.
Harmon met with friends and continued to make cash withdraws and utilize the victim’s ATM cards at local shops. Harmon and his friends then went to a tattoo parlor in Salisbury, Maryland, where law enforcement identified the victim’s vehicle. Harmon fled from police, and a black BB gun was recovered during his arrest.
While pending trial in the state of Maryland, Harmon utilized a recorded jail phone to attempt to have an associate kill the victim to prevent her from testifying at the state trial. Harmon also contacted the victim numerous times, including eight times around 1:00 am in one night. The victim left her residence out of fear ahead of testifying.
Harmon was convicted in the state of Maryland, c-22-cr-23-000054, before being transferred to the District of Delaware for federal proceedings in April 2024.
“This was a senseless, random, vicious attack on an elderly victim of our Delaware community,” said U.S. Attorney Benjamin L. Wallace. “The Court’s sentence delivers justice and closure for the victim by holding the defendant accountable for all aspects of this violent criminal act; ensuring that he is not a threat to the community for the foreseeable future; and sending a message to any others who might terrorize our community that they will be held responsible by my office and our dedicated law-enforcement partners. This coordinated effort by the FBI, Seaford Police, Salisbury Police, Maryland State Police, and Wicomico County State’s Attorney’s Office ensured that justice was served.”
“This 45-year sentence reflects the seriousness of Ralph Harmon’s crimes,” said FBI Baltimore Special Agent in Charge Jimmy Paul. “He violently attacked an innocent woman who showed remarkable strength in surviving the assault. Even after his arrest, Harmon kept trying to harm her to avoid accountability. Thanks to the swift and coordinated work of law enforcement, Harmon will spend the next four decades answering for his violent crimes.”
“The victim in this case was a long-term resident of the City of Seaford, who showed tremendous strength and courage throughout the ordeal and prosecution,” said Deputy Chief Tyler Justice, Seaford Police Department. “We are proud of the work done by our detectives and our local, state, and federal partners. The result is justice being served to someone who committed such a needless act of violence to a member of our community.”
“We are proud to work alongside our law enforcement partners to ensure those who commit heinous acts of violence are held accountable," said Colonel Michael A. Jackson, Superintendent of the Maryland State Police. “This case demonstrates the commitment we share in the pursuit of justice for the victim and her family.”
FBI Baltimore, Seaford Police, Salisbury Police and Maryland State Police investigated the case. Assistant U.S. Attorney Samuel S. Frey and former Assistant U.S. Attorney Jennifer Welsh prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information are located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:23-cr-00050.
Colorado Man Convicted of Sexually Abusing a Minor in Mexico with WifeRead the Press Release
Baltimore, Maryland – A federal jury convicted a Colorado man for his role in conspiring with his wife to sexually exploit a minor victim.
The jury found Alekzander Quinn Bywater, 32, formerly of Colorado Springs, guilty of conspiracy to produce visual depictions of minors engaging in sexually explicit conduct outside the United States, sexual exploitation of a minor, distribution of child sexual abuse material (CSAM), and advertising CSAM.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the verdict with Assistant Attorney General A. Tysen Duva, Department of Justice Criminal Division, and Assistant Director Heith Janke, FBI Criminal Division.
“This guilty verdict holds this defendant accountable for the horrific abuse of a child and for his role in distributing videos that documented that abuse. Mr. Bywater’s depraved actions cost him his freedom, so now he’ll be separated from society where he can’t harm other children,” Hayes said. “Our office will continue to work tirelessly with our community and law-enforcement partners to ensure that justice is served as we relentlessly pursue and prosecute predators who prey on the most vulnerable members of our community, whether that abuse occurs here or abroad.”
“Alekzander Bywater left the United States for Mexico and preyed upon the most vulnerable among us, a young child,” Duva said. “Child exploitative hands-on violations are among the most depraved. This defendant and his wife, Anika, perpetrated this heinous crime together, and even tried to profit off their conduct. This case is core to the Criminal Division’s mission of hunting down child predators and removing them from society.”
“The FBI and our partners are working every day to hold criminals accountable for their participation in child sexual exploitation and abuse,” Janke said. “Bywater will now face the consequences for his disturbing and illegal actions, and we are proud to have played our part in making that happen.”
According to court documents, and information provided during the trial, while in the state of Veracruz, Mexico, Bywater, and his wife Anika, 29, formerly of Gonzalez, Texas, created two separate videos of them sexually abusing a young child. In January 2024, on two separate occasions, the Bywaters agreed to create two videos, Video-1 and Video-2, that depicted them jointly engaging in sexually abusing the minor victim in Mexico. Law-enforcement officers learned about the conduct when they discovered videos of the abuse circulating on the internet.
Alekzander Bywater uploaded Video-1 and Video-2 to Website A, a publicly available website, where he advertised them for sale. Then, on Feb. 6, and 7, 2024, an undercover FBI agent in Maryland purchased and downloaded the videos.
Additionally, FBI agents recovered Video-1 and Video-2 from a desktop and laptop that were used to commit the offense. The devices also housed a different video of Alekzander Bywater sexually abusing the minor victim and thousands of CSAM images and videos depicting the sexual abuse and exploitation of children other than the minor victim.
Alekzander Bywater is facing up to 150 years in federal prison for conspiracy to produce visual depictions of minors engaging in sexually explicit conduct outside the United States and distribution of CSAM. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.
In March 2026, U.S. District Judge Brendan A. Hurson sentenced Anika Bywater to 25 years in prison, followed by 20 years of supervised release, for conspiracy to engage in illicit sexual conduct in foreign places. She pled guilty to the charges in December 2025.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc. For more information about Internet safety education, please visit justice.gov/psc and click on the “Resources” tab on the left of the page.
U.S. Attorney Hayes commended the FBI Child Exploitation Operational Unit for its work in the investigation, and the FBI’s law enforcement attaché office in Mexico City for its valuable assistance. Ms. Hayes also thanked Assistant U.S. Attorney Reema Sood and Acting Deputy Chief Kyle P. Reynolds, Justice Department’s Child Exploitation and Obscenity Section (CEOS), who prosecuted the federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md.
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Colorado Man Convicted at Trial of Sexually Abusing a Child on Camera and Advertising the Videos for Sale over the Dark WebRead the Press Release
A federal jury convicted a Colorado man yesterday for conspiring with his wife to film themselves sexually abusing a prepubescent child in Mexico and for advertising the videos for sale online.
“Alekzander Bywater left the United States for Mexico and preyed upon the most vulnerable among us, a young child,” said Assistant Attorney General A. Tysen Duva for the Justice Department’s Criminal Division. “Child exploitative hands-on violations are among the most depraved. This defendant and his wife, Anika, perpetrated this heinous crime together, and even tried to profit off their conduct. This case is core to the Criminal Division’s mission of hunting down child predators and removing them from society.”
“This guilty verdict holds this defendant accountable for the horrific abuse of a child and for his role in distributing videos that documented that abuse,” said U.S. Attorney Kelly O. Hayes for the District of Maryland. “Mr. Bywater’s depraved actions cost him his freedom, so now he’ll be separated from society where he can’t harm other children. Our office will continue to work tirelessly with our community and law enforcement partners to ensure that justice is served as we relentlessly pursue and prosecute predators who prey on the most vulnerable members of our community, whether that abuse occurs here or abroad.”
“The FBI and our partners are working every day to hold criminals accountable for their participation in child sexual exploitation and abuse,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “Bywater will now face the consequences for his disturbing and illegal actions, and we are proud to have played our part in making that happen.”
The jury found Alekzander Quinn Bywater, 32, formerly of Colorado Springs, CO, guilty of conspiracy to sexually exploit a minor outside the United States, two counts of sexual exploitation of a minor outside the United States, and two counts of advertisement of child sexual abuse material (CSAM).
According to court documents and information provided during the trial, while living in the state of Veracruz, Mexico, Bywater, and his wife Anika, 29, formerly of Gonzalez, Texas, created two separate videos of themselves sexually abusing a young child. In January 2024, on two separate occasions, the Bywaters agreed to create two videos, Video-1 and Video-2, that depicted them jointly engaging in sexually abusing the minor victim in Mexico. Law enforcement officers learned about the conduct when they discovered videos of the abuse circulating on the internet.
Alekzander Bywater uploaded Video-1 and Video-2 to Website A, a publicly available website, where he advertised them for sale. Then, on Feb. 6, and 7, 2024, an undercover FBI agent in the District of Maryland purchased and downloaded the videos.
Additionally, FBI agents recovered Video-1 and Video-2 from a desktop and laptop that were used to commit the offense. The devices also housed a different video of Alekzander Bywater sexually abusing the minor victim and thousands of CSAM images and videos depicting the sexual abuse and exploitation of children other than the minor victim.
Bywater will be sentenced on a date to be set in the future. Alekzander Bywater is facing a maximum penalty of 150 years in prison for the charges. A federal district judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Anika Bywater was sentenced to 25 years in prison followed by 20 years of supervised release in March for conspiracy to engage in illicit sexual conduct in foreign places. She pled guilty to the charges in December 2025.
The FBI’s Child Exploitation Operational Unit investigated the case, with the assistance of the FBI law enforcement attaché office in Mexico City and FBI Washington Field Office.
Acting Deputy Chief Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Reema Sood for the District of Maryland prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc. For more information about Internet safety education, please visit justice.gov/psc and click on the “Resources” tab on the left of the page.
Car wash commotion results in federal prison sentence for Beaumont convicted felonRead the Press Release
BEAUMONT, Texas –A Beaumont convicted felon has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.
Kendrick Deon Ewing, 37, pleaded guilty to being a felon in possession of a firearm and was sentenced to 46 months in federal prison by U.S. District Judge Marcia A. Crone on August 20, 2026.
According to information presented in court, on December 28, 2025, law enforcement responded to a Beaumont car wash where Ewing was involved in a disturbance. As the officer approached, Ewing fled in a vehicle. Later that evening, Ewing was located again and as the officer was speaking to him, Ewing put his vehicle in drive and fled the scene. Ewing evaded officers for over a mile, failing to stop at approximately 14 stop signs, and traveling more than 50 mph in a residential neighborhood, before being apprehended after reaching a dead-end street and fleeing on foot. A search of the vehicle resulted in the discovery of two firearms. Further investigation revealed Ewing is a convicted felon and prohibited from owning or possessing firearms or ammunition.
Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Candidate for New York City Public Advocate Pleads Guilty to Wire FraudRead the Press Release
Earlier today in federal court in Brooklyn, Angela Aquino, a 2025 candidate for New York City Public Advocate, pleaded guilty to wire fraud in connection with her scheme to defraud New York City’s campaign finance system to obtain public matching funds. The proceeding was held before United States Magistrate Judge Vera Scanlon. When sentenced, Aquino faces a sentence of up to 20 years in prison.
Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Nadia I. Shihata, Commissioner, New York City Department of Investigation (DOI); and James C. Barnacle, Jr., Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“The defendant, a former candidate for city office, admitted today that she attempted to defraud New York City of $1 million in public funds,” stated United States Attorney Nocella. “Her brazen efforts threaten the integrity of our local democratic processes.”
“New Yorkers deserve a baseline of integrity from candidates running for public office, an attribute this defendant – through her actions – demonstrated she clearly lacked,” stated DOI Commissioner Shihata. “As a candidate for NYC Public Advocate, this defendant attempted to fraudulently obtain $1 million in public matching funds by obscuring the true source of the funds flowing into her campaign committee’s bank account. The defendant also used some of her campaign funds to pay her personal expenses, including rent for her apartment. New York City’s Matching Funds Program is supported by taxpayer dollars, and those who seek these funds must follow the law. I thank the U.S. Attorney’s Office for the Eastern District of New York and the New York Office of the FBI for their partnership in protecting the integrity of our campaign finance system.”
“Angela Aquino's attempt to defraud the City of New York is disgraceful and unacceptable. Any theft of taxpayer money will be fully investigated and prosecuted. In support of the Vice President's Fraud Task Force, FBI New York will continue to work diligently to protect the public from fraud in all forms,” stated FBI Assistant Director in Charge Barnacle.
New York City’s Matching Funds Program
The New York City Campaign Finance Board (CFB) offers a voluntary public-financing program matching small-dollar contributions from New York City residents to candidates for city office. To be eligible for matching funds, candidates must meet a two-part fundraising threshold: first, they must collect a minimum number of contributions of $10 or more; and, second, they must raise a minimum amount of qualifying contributions from residents of New York City. To be eligible for the matching funds program, a candidate for Public Advocate must have raised at least $125,000 from at least 500 qualifying contributors. In addition, cash contributions are capped at $100 per contributor for purposes of qualifying for matching funds.
For a candidate to apply cash contributions toward the threshold necessary to become eligible for public matching funds, a candidate’s authorized committee was required to submit contribution cards to the CFB that listed, among other information, each contributor’s name, residential address, employer, and occupation, as well as the date and amount of contribution. The contribution cards also had to be signed by the contributors.
Candidates were prohibited from giving false information to the CFB. Candidates were also prohibited from using public matching funds for purposes that were illegal, improper, or not in furtherance of the candidate’s nomination or election. Violation of these prohibitions would render the candidate ineligible to receive public matching funds.
Once a candidate met the eligibility requirements to join the program, the CFB would provide the campaign with public funds at a matching rate of $8 to $1. In other words, if a candidate raised $125,000 toward the fundraising threshold, the CFB would provide that candidate with $1 million in public matching funds.
The Fraudulent Scheme
Aquino engaged in a scheme to obtain $1 million in public matching funds, knowing that her campaign committee was not entitled to such funds. In particular, she took numerous steps artificially to inflate the deposits into her campaign committee’s bank account to make it appear that the committee had met the $125,000 threshold for public funds. In fact, very little of the deposits were eligible contributions from New Yorkers.
In the first months of 2025, Aquino’s personal bank account received more than $130,000 that originated from the Philippines. Of this amount, at least $34,000 was a loan to Aquino from a contact there. Aquino, with others, repeatedly withdrew funds from her personal bank account in cash and deposited cash into her campaign committee’s bank account. These contributions were then identified to the CFB as contributions from residents of New York City that were eligible for public matching funds. Contribution cards submitted in support of these supposed contributions, which purported to identify the contributors and included their personal identifying information and their signatures, were falsified.
Aquino cycled funds out of, and back into, the campaign committee’s bank account, sometimes using bank accounts of friends and associates as intermediary accounts to obscure the true source of the funds. The purpose of cycling the funds in this way was to make the total amount of deposits into the campaign committee’s account appear higher, such that the total contributions would appear to meet the CFB’s threshold.
Aquino used funds from the campaign committee account to pay for her personal expenses, including the rent for her apartment, while falsely reporting to the CFB that the payments were for legitimate campaign expenses. Aquino also lied to federal agents concerning her relationship with the recipients of some of these expenditures. For example, Aquino told federal agents that her landlords helped with petitions and with campaigning, justifying the campaign’s payments to them. In fact, Aquino’s landlords had nothing to do with her campaign.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Laura Zuckerwise and Sean Sherman are in charge of the prosecution with assistance from Paralegal Specialist Melissa Bennett.
The Defendant:
ANGELA AQUINO
Age: 47
New York, New YorkE.D.N.Y. Docket No. 26-CR-231 (MKB)
Buffalo woman sentenced for her role in conspiracy to steal mailRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Michael DiGiacomo announced today that Alexandria Duncan, 23, of Buffalo, NY, who was convicted of conspiracy to commit mail theft, was sentenced to serve two years’ probation by U.S. District Judge Richard J. Arcara.
Between October 9 and October 14, 2024, Duncan conspired with co-defendant Timothee S. Tidwell to steal mail from receptacles in Hamburg, NY, and take articles from inside the letters and envelopes that were stolen. For instance, in the early morning hours of October 14, 2024, Duncan drove a vehicle to Camp Road with Tidwell, who exited the vehicle and approached a row of mailboxes outside the post office on Camp Road with a postal arrow key he was not legally entitled to possess. After Tidwell exited the vehicle, Duncan drove the vehicle across the street to a gas station where she was approached by a Village of Hamburg Police officer. While the police officer interacted with Duncan, Tidwell fled the scene.
Duncan and Tidwell used a postal arrow key to open various mailboxes in the Hamburg area to steal multiple mail items. On October 14, 2024, law enforcement recovered opened and unopened mail addressed to other people from Duncan’s vehicle. The opened mail included checks from various individuals and businesses and totaled approximately $369,104.92.
Charges remain pending against Timothee Tidwell.
The case was prosecuted by Assistant U.S. Attorney Franz M. Wright. The sentencing is the result of an investigation by the Village of Hamburg Police, under the direction of Chief Richard Schara, and the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Justin Page, Boston Division.
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Beech Grove Sex Offender Sentenced to 17 Years in Federal PrisonRead the Press Release
INDIANAPOLIS- Shane Austin Leaneagh, 37, of Beech Grove, has been sentenced to 17 years and one month in federal prison, followed by a lifetime of supervised release after pleading guilty to possession and distribution of child sexual abuse material. Leaneagh was also ordered to pay $34,000 in restitution.
According to court documents, beginning on August 6, 2023, Leaneagh began distributing images and videos depicting children engaged in sexually explicit conduct using seven different accounts via the social media application, Kik.
On January 10, 2024, officers with the Indianapolis Metropolitan Police Department and the Beach Grove Police Department executed search warrants for Leaneagh and his Beech Grove home. Investigators located electronic devices, revealing more than 600 images and videos depicting the sexual abuse of numerous children, including infants and children under the age of twelve.
In 2022, Leaneagh was convicted of possession of child sexual abuse material in Monroe County, Indiana. In that case, he used his cellphone to take sexually explicit images of a seven-year-old child while she slept, which the child’s mother later discovered. Additionally, Leaneagh sustained a conviction for intimidation in April 2022 in Jackson County, Indiana. That conviction stemmed from messages he sent to a former coworker in which he threatened to commit sexual acts with her and insinuated that he had been stalking her.
The FBI Indianapolis and U.S. Secret Service investigated this case, with assistance from IMPD. The sentence was imposed by Chief District Judge James R. Sweeney II.
“Leaneagh’s behavior was despicable, targeting our children for his own sick purposes,” said U.S. Attorney Tom Wheeler for the Southern District of Indiana. “These files show children so young they could not have understood what was happening, yet their abuse will be circulated among predators over and over, leading to repeated victimization because of offenders like Leaneagh. We are extremely grateful to our law enforcement partners who work day and night to stop people like him from exploiting our children.”
“The harm child sexual abuse material causes innocent victims is heartbreaking, especially when the victims are as young as infants,” said Special Agent in Charge Ike Barnes of the U.S. Secret Service Indianapolis Field Office. “Holding offenders accountable for distributing these vile images and videos, particularly repeat offenders, helps protect victims from further harm and makes our communities safer. The Secret Service remains committed to working with our law enforcement partners to protect victims and pursue those who seek to exploit them. We thank the FBI and the U.S. Attorney’s Office for the Southern District of Indiana for their collaboration in this important case.”
U.S. Attorney Wheeler thanked Assistant U.S. Attorney Carolyn A. Haney, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/project-safe-childhood
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Beaumont man sentenced to federal prison following neighborhood shootoutRead the Press Release
BEAUMONT, Texas –A Beaumont felon has been sentenced to federal prison following a neighborhood shootout in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.
Martinez Lamond Baltrip, 29, pleaded guilty to being a felon in possession of ammunition and was sentenced to 33 months in federal prison by U.S. District Judge Marcia A. Crone on August 20, 2026.
According to information presented in court, on August 5, 2025, law enforcement responded to a shooting near Avenues G and H in Beaumont. Officers found Baltrip at the scene suffering from a gunshot wound. An investigation revealed Baltrip and the person who shot him had been involved in an ongoing dispute when Baltrip came upon him working on his vehicle. Baltrip approached the individual and pulled out a 9mm pistol and began firing. The other person retrieved a shotgun and returned fire on Baltrip, striking him. Baltrip retreated to his vehicle and called police. Police responded and recovered 9mm shell casings from the scene, which Baltrip admitted to firing. Further investigation revealed Baltrip is a convicted felon and prohibited from owning or possessing firearms or ammunition.
Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Beaumont felon sentenced to federal prison after leading police on a high-speed chase in a stolen vehicle with a stolen gunRead the Press Release
BEAUMONT, Texas –A Beaumont convicted felon has been sentenced to federal prison for firearms possession in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.
Christopher Eugene Stelly, 23, pleaded guilty to being a felon in possession of a firearm and was sentenced to 63 months in federal prison by U.S. District Judge Marcia A. Crone on August 20, 2026.
Stelly was arrested on September 30, 2025, after leading police on a high-speed chase in a stolen vehicle in Beaumont. According to reports, law enforcement officers at the intersection of North Major Drive and Dishman Road noticed a stolen vehicle stopped at a traffic light near them. The car suddenly accelerated through the red light and officers pursued in a high-speed chase. Stelly eventually stopped the vehicle and fled on foot into an apartment complex on French Road where he was apprehended. Stelly had a firearm in his pocket that had been reported stolen in 2018. Further investigation revealed Stelly is a convicted felon and prohibited from owning or possessing firearms.
Project Safe Neighborhoods (PSN) is the Department of Justice’s nationwide initiative that brings federal, state, local, and tribal law enforcement, prosecutors, and other public safety partners together to coordinate efforts to combat violent crime and make communities safe. Coordinated by U.S. Attorneys’ offices in each of the 94 federal districts, PSN is tailored to particular communities to strategically address specific violent crime and public safety challenges. As a key component of Operation Take Back America, PSN serves a central role in the Department’s commitment to make our country safe. PSN emphasizes three core principles: rapid federal response to violent crime and criminal offenders; strong, strategic partnerships among law enforcement at all levels; and accountability and deterrence through the prosecution of the most serious, readily provable offenses and other strategies. These efforts complement and strengthen President Trump’s Homeland Security Task Forces, ensuring a comprehensive federal response to the most pressing public safety issues facing communities.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Baltimore Man Sentenced for Role in Fentanyl Trafficking Conspiracy HSTF CaseRead the Press Release
Baltimore, Maryland – A federal judge sentenced a Baltimore man to prison, today, in connection with a drug trafficking conspiracy.
U.S. District Judge Stephanie Gallagher sentenced Jeremy Bethea, 47, to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possession with the intent to distribute controlled substances. Through an investigation, law enforcement caught Bethea and his co-conspirators with more than 400 grams of fentanyl, more than 28 grams of cocaine base, commonly referred to as “crack cocaine,” and a quantity of cocaine intended for distribution. Bethea pled guilty to the charges in April 2026.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Christopher C. Goumenis, Drug Enforcement Administration (DEA) – Washington Division, and Commissioner Richard Worley, Baltimore Police Department (BPD).
According to court documents, from August 2022, through October 2023, Bethea conspired with others to distribute and possess with the intent to distribute fentanyl, cocaine, and crack cocaine. Bethea and his co-conspirators regularly obtained quantities of fentanyl, cocaine, and crack cocaine to sell to customers in the Baltimore area.
Beginning in November 2022, and continuing through May 2023, undercover investigators conducted 15 controlled purchases of fentanyl, crack cocaine, and powder cocaine from Bethea. In January 2023, Bethea sold more than 40 grams of fentanyl to an undercover investigator.
Additionally, from June 2023 through August 2023, investigators received authorization to utilize a federal wiretap to intercept communications from three cellphones. The cellphone users included Bethea and other members of the conspiracy.During the wiretap investigation, law enforcement intercepted numerous conversations between Bethea and his co-conspirators discussing and coordinating fentanyl, crack cocaine, and powder cocaine sales.
Then on April 17, 2023, as a result of the intercepted calls, BPD officers stopped a vehicle en route to a planned drug transaction. During the traffic stop, law enforcement encountered Bethea and recovered several hundred gelcaps from the source of supply. A DEA laboratory performed an analysis of the substance found inside the recovered gel caps and confirmed it as fentanyl with a total weight of more than 400 grams.
During the investigation, law enforcement also discovered that Bethea used a Sharp-Leadenhall residence to store fentanyl, cocaine, and crack cocaine for distribution. On August 22, law enforcement executed a search warrant on the residence. Investigators uncovered 105 grams of crack cocaine packaged for retail sale and more than 300 grams of marijuana at the location.
This prosecution 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 United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Baltimore is comprised of agents and officers from the Federal Bureau of Investigation (FBI); Homeland Security Investigations (HSI); the United States Attorney’s Office (USAO) for the District of Maryland; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Drug Enforcement Administration (DEA); the Internal Revenue Service-Criminal Investigation (IRS-CI); the United States Marshals Service (USMS); the Washington/Baltimore HIDTA (W/B HIDTA); the Maryland State Police (MSP); the Baltimore Police Department (BPD); and the Baltimore County Police Department (BCPD) with the prosecution being led by the United States Attorney’s Office for the District of Maryland.
U.S. Attorney Hayes commended the DEA and BPD for their work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Jonathan Tsuei who is prosecuting this federal case.
For more information about the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, visit justice.gov/usao-md.
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Baldwin County Man Sentenced for Armed RobberyRead the Press Release
MOBILE, AL – Ira Cornell Bodiford, Jr., 39, was sentenced today by United States District Judge Terry F. Moorer to 324 months in prison for an armed robbery of a convenience store.
According to court documents, on December 19, 2023, Baldwin County deputies responded to an armed robbery at a convenience store in Magnolia Springs. Witnesses reported that a man wearing a disguise approached the clerk and pointed a semi-automatic handgun equipped with an extended magazine at him, demanding money.
Law enforcement reviewed surveillance footage of the robbery and identified the vehicle used by the robber. The vehicle was traced to a location in Foley, where deputies recovered Bodiford, the vehicle, stolen cash, and the firearm used in the robbery. Deputies also retraced the vehicle’s route and discovered blue latex gloves along the roadside. Bodiford was seen wearing blue latex gloves in the store’s surveillance footage. Forensic testing matched DNA recovered from the gloves to Bodiford.
Bodiford has several prior felony convictions, including Second-Degree Robbery, Third-Degree Burglary, and Domestic Violence Strangulation.
Following his release from prison, Bodiford will serve five years of supervised release under the supervision of the United States Probation Office.
U.S. Attorney Sean Costello of the Southern District of Alabama made the announcement.
The Bureau of Alcohol, Tobacco and Firearms and the Baldwin County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys George May and Tandice H. Blackwood prosecuted the case on behalf of the United States.
Albany, New York Woman Charged with ISIS-Inspired Terror Plot Targeting New York State CapitolRead the Press Release
Note: See the complaint here.
Jessica Bowie, 35, of Albany, New York, made her initial appearance today in federal court on charges of attempting to provide material support to a designated foreign terrorist organization, ISIS.
“As alleged, Bowie plotted to deploy an explosive device at the New York State Capitol, intending to kill public officials and to destroy ‘as much of the building as possible’ before fleeing to ISIS‑controlled territory in Syria,” said Assistant Attorney General for National Security John A. Eisenberg. “The National Security Division and our law-enforcement partners are committed to the painstaking work of preventing plots like this from succeeding and securing convictions against those who attempt such plots.”
“The American people represent an undying spirit of life, liberty, and the pursuit of happiness — values fundamentally opposed by foreign terrorist organizations such as the one this defendant allegedly pledged her support to,” said First Assistant U.S. Attorney John A. Sarcone III for the Northern District of New York. “I am incredibly proud to work side by side with the men and women of the FBI and our law enforcement partners who identified, investigated, and ultimately stopped this defendant before she was able to act on her plot to bring terror to the Capital Region and the United States. My office looks forward to aggressively prosecuting this case and delivering justice for the American people.”
“The FBI detected and stopped an alleged plot to attack the New York State Capitol and kill elected officials,” said Operations Director Matt Fodor of the FBI National Security Branch. “According to the criminal complaint, the defendant in this case swore allegiance to ISIS and wanted to follow up with additional horrific acts of terrorism. This case is yet another example of how this FBI is built to not only identify threats of terrorism quickly, but to stop their alleged plots before they are able to harm the American people. I want to commend the FBI Albany Field Office, the Justice Department, and our law enforcement partners for their outstanding work in this case. Cooperation and partnership are essential to protecting the U.S. homeland.”
On Aug.19, Bowie was apprehended by law enforcement as she gained possession of what she believed to be an explosive device, with the intent of targeting the New York State Capitol and New York State Senators.
Bowie buying items necessary to build an explosive deviceThrough the course of the investigation and as alleged in the government’s complaint, investigators learned that Bowie had intended to conduct the attack before fleeing to Syria to join others in ISIS-controlled territories. She was observed making several visits to the New York State Capitol grounds and taking several photographs of the building. In describing the New York State Capitol building as her target, Bowie stated: “I want to destroy as much of the building as possible and kill the senators while they are meeting. I want them to lose a lot of important documents as well” and “I want it to have a affect on the American system. And destroy some of the taghut.”
Bowie doing reconnaissance on New York CapitolAccording to the complaint, Jessica Bowie has expressed anti-American messages online. On one account identified as belonging to Bowie, she said, “Praise be to Allah for September 11th” and “When I can migrate, I will poison these infidels.” Further, Bowie recorded and disseminated to others online her “Bayah,” or formal oath of allegiance to ISIS.
The case is being investigated by the FBI with assistance from the U. S. Secret Service, New York State Police, and Albany Police Department.
Trial Attorney Ryan D. White of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Richard Belliss and Joseph Hartunian for the Northern District of New York are prosecuting the case.
Albany New York Woman Charged with Attempting to Provide Material Support or Resources to a Designated Foreign Terrorist OrganizationRead the Press Release
ALBANY, NEW YORK – Jessica Bowie, 35, of Albany, NY, made her initial appearance today in federal court on charges of attempting to provide material support to a designated foreign terrorist organization, ISIS.
First Assistant U.S. Attorney John A. Sarcone III; Assistant Attorney General for the National Security Division John A. Eisenberg; FBI Special Agent in Charge of the Albany Field Office Craig L. Tremaroli; U.S. Secret Service Special Agent in Charge of the Buffalo Field Office Charles T. Perras; Anthony Patrone Acting Special Agent in Charge of the Buffalo Field Office, Homeland Security Investigation, New York State Police Superintendent Steven G. James; Albany County Sheriff’s Office Sheriff Craig Apple and Albany Police Department Chief Brendan Cox made the announcement.
August 19, 2026, Bowie was apprehended by law enforcement as she gained possession of what she believed to be an explosive device, with the intent of targeting the New York State Capitol and New York State Senators.
“The American people embody an enduring spirit of life, liberty, and the pursuit of happiness — values fundamentally opposed by foreign terrorist organizations like the one this defendant allegedly pledged her support to,” said First Assistant U.S. Attorney John A. Sarcone III for the Northern District of New York. “This arrest will send a strong message to anyone across the country who has been radicalized by our enemies. This administration has deployed the necessary resources for law enforcement to identify, investigate, and disrupt plots of terror well before harm can occur. I am incredibly proud to work alongside our law enforcement partners, who ultimately stopped this defendant before she could act on her plan to bring terror to the Capital Region and the United States. My office looks forward to aggressively prosecuting this case and delivering justice for the American people.”“As alleged in the criminal complaint, Ms. Bowie swore her allegiance to ISIS and developed a detailed plan to attack the New York State Capitol to kill lawmakers and disrupt our government,” said Craig Tremaroli, Special Agent in Charge of the FBI’s Albany Field Office. “Make no mistake about it, Ms. Bowie’s alleged plot was serious, it was dangerous, and thanks to FBI Albany’s Joint Terrorism Task Force (JTTF), it was foiled. Let this investigation send a clear message that FBI Albany, together with our Joint Terrorism Task Force partners, will relentlessly investigate and arrest anyone supporting and conspiring with terrorists.”
Through the course of the investigation and as alleged in the government’s complaint, investigators learned that Bowie had intended to conduct an attack on the New York State Capitol building then flee to join others in ISIS-controlled territories. She was observed making several visits to the New York State Capitol grounds and taking several photographs of the building. In describing the New York State capitol building as her target, Bowie stated: “I want to destroy as much of the building as possible and kill the senators while they are meeting. I want them to lose a lot of important documents as well” and “I want it to have a affect on the American system. And destroy some of the taghut.”
According to the complaint, Jessica Bowie has expressed anti-American messages online. On one account identified as belonging to Bowie, she said, “Praise be to Allah for September 11th” and “When I can migrate, I will poison these infidels.” Further, Bowie recorded and disseminated to others online her “Bayah,” or formal oath of allegiance to ISIS.
Bowie appeared before U.S. Magistrate Judge Daniel J. Stewart on August 20, 2026, and was detained pending further proceedings. The charge carries a statutory maximum prison term of 20 years, a fine of up to $250,000 and a lifetime of supervised release. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The case is being investigated by the FBI with assistance from the U. S. Secret Service, Homeland Security Investigations, New York State Police, Albany County Sheriff’s Office and Albany Police Department.
Trial Attorney Ryan White of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorneys Richard Belliss and Joseph Hartunian for the Northern District of New York are prosecuting the case.
Agency Village Man Sentenced to Federal Prison for AssaultRead the Press Release
ABERDEEN - United States Attorney Ron Parsons announced today that U.S. District Judge Charles B. Kornmann has sentenced an Agency Village, South Dakota, man convicted of Assault by Striking, Beating, and Wounding. The sentencing took place on August 17, 2026.
Donald Philip Red Owl, age 45, was sentenced to 12 months in federal prison, 1 year of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Red Owl was indicted by a federal grand jury in October 2025. He pleaded guilty on June 1, 2026.
The conviction stemmed from an incident on October 28, 2024, when Red Owl struck his 15-year-old daughter in the face when she refused to give her cell phone to him.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Elizabeth Ebert-Webb.
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
Red Owl was immediately remanded to the custody of the U.S. Marshals Service.
6 Indicted for Madisonville-Area Drug Distribution Ring Following a Homeland Security Task Force Investigation Led by DEA and MPDRead the Press Release
Madisonville, KY – Following a joint state and federal investigation led by the DEA and the Madisonville Police Department, a federal grand jury in Bowling Green, Kentucky, returned an indictment on August 12, 2026, charging six Madisonville-area individuals with drug distribution-related charges.
U.S. Attorney Kyle G. Bumgarner of the Western District of Kentucky, Special Agent in Charge Jim Scott of the DEA Louisville Field Division, and Chief Steve Bryan of the Madisonville Police Department made the announcement.
According to the 13-count indictment, Traviel Civils, 34, of Madisonville, Kentucky; Teron Cox, 41, of Earlington, Kentucky; James Gunn, 69, of Greenville, Kentucky; Adam Pettus, 41, of Earlington, Kentucky; Brooke Poe, 44, of Madisonville, Kentucky; and Robert Rice, 46, of Madisonville, Kentucky, were charged with conspiracy to possess with the intent to distribute controlled substances involving 50 grams or more of methamphetamine and 500 grams or more of cocaine.
Civils was charged with seven additional counts of distribution of controlled substances involving cocaine and methamphetamine. Pettus was charged with 10 additional counts of distribution of controlled substances and possession with intent to distribute controlled substances involving cocaine and methamphetamine. Rice was charged with two additional counts of distribution of controlled substances and possession with intent to distribute controlled substances involving methamphetamine. Cox was charged with two additional counts of possession with intent to distribute controlled substances involving cocaine and methamphetamine. Gunn was charged with one additional count of possession with intent to distribute controlled substances involving methamphetamine.
All defendants other than Cox recently made an initial court appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. These defendants remained detained in federal custody pending trial. Cox remains in state custody and will make an initial appearance at a later date.
If convicted, the defendants each face a minimum sentence of 10 years in prison and a maximum of life. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
This case is being investigated by the DEA and the Madisonville Police Department with assistance from the ATF, Kentucky State Police, Hopkins County Sheriff’s Office and Madisonville Vice Narcotics Unit.
Assistant U.S. Attorney R. Nicholas Rabold of the U.S. Attorney’s Bowling Green Branch Office is prosecuting the case.
The case is also being worked in conjunction with Hopkins County Commonwealth’s Attorney Hannah Kington-Jarvis.
This prosecution is part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of United States law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States. HSTF Louisville comprises agents and officers from FBI, HSI, DEA, ATF, and IRS, with the prosecution being led by the United States Attorney’s Office for the Western District of Kentucky.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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58-Year-Old Hatillo Man Arrested for Child ExploitationRead the Press Release
SAN JUAN, Puerto Rico – On August 18, 2026, special agents with U.S. Immigration and Customs Enforcement arrested Carlos Cabrera González, a 58-year-old male from Hatillo, Puerto Rico, on criminal charges for child exploitation, announced Héctor Ramírez-Carbó, Acting United States Attorney for the District of Puerto Rico.
On August 12, 2026, a federal grand jury indicted Cabrera González on charges of receipt, transportation, and possession of child exploitation material.
According to court documents, from in or about February 2024, to May 2026, defendant Cabrera González knowingly received and transported child exploitation material via electronic devices. Moreover, the defendant, using electronic devices, such as a Samsung A12 mobile device, a Samsung Tab A tablet, and a Lenovo IdeaPad Laptop, possessed images of child pornography, including child pornography of a prepubescent minor or a minor who had not attained 12 years of age.
“We will continue to investigate, prosecute, and bring to justice any individual who victimizes children in our communities,” said Acting U.S. Attorney Héctor Ramírez-Carbó of the District of Puerto Rico. “There’s no greater priority than safeguarding our children from predators who seek to exploit or harm them. Viewing and possessing child sexual abuse material constitutes some of the most offending criminal conduct.”
“The exploitation of children is a heinous crime that leaves lasting trauma, and ICE HSI is committed to relentlessly pursuing those who seek to victimize the most vulnerable among us,” said HSI San Juan Special Agent in Charge Yariel Ramos. “These offenses carry severe penalties under federal law, and we will utilize every resource at our disposal to hold perpetrators accountable. As students return to the classroom, I urge all parents, guardians, and educators to remain vigilant regarding online safety. Please familiarize yourselves with the ‘Know2Protect’ campaign and its resources to help us create a safer digital environment for our children.”
Assistant U.S. Attorney Emelina Agrait Barreto of the Crimes Against Children, Human Trafficking and Immigration Unit, is prosecuting the case. The Puerto Rico Crimes Against Children Task Force led by HSI is in charge of the investigation.
If convicted for the charges the defendant faces the following penalties: (1) receipt of child exploitation material – five to 20 years in prison; (2) transportation of child exploitation material – five to 20 years in prison; and (3) possession of child pornography – a maximum of 20 years of imprisonment. All charges of conviction are to be followed by a term of supervised release after the term of imprisonment. A federal district court judge will determine the sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
For more information about HSI’s efforts to protect children from sexual predators, visit Know2Protect.gov. To report suspicious activities, call 787-729-6969 or send an email to [email protected].
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Wednesday 19 August 2026
‘764’ Extremist Group Member Sentenced for Production of Child Pornography and Distribution of Animal Crushing VideosRead the Press Release
KNOXVILLE, Tenn. – On August 19, 2026, Kyle William Spitze, 27, of Friendsville, TN was sentenced today to 77 years in prison for production of child sexual exploitation material (CSAM), abetting the distribution of animal crushing videos, and possessing and accessing with the intent to view CSAM. Should he be released from prison, he will be subject to supervised release for life and required to register with state sex offender registries and comply with special sex offender conditions.
“The Department has pledged to take out online predator networks and today’s sentence is one step toward justice for the families and children harmed by 764,” said Attorney General Todd Blanche. “These types of crimes are the worst of the worst: preying on vulnerable children in the name of a violent and twisted ideology. Federal law enforcement will not stop until nihilistic violent extremist groups and their depraved members are identified and prosecuted to the fullest extent of the law.”
“Today’s sentencing sends a strong message that this FBI and our Department of Justice partners will relentlessly hold accountable any individual who preys on children,” said FBI Director Kash Patel. “As we’ve made clear from the beginning: this FBI is laser focused on identifying, locating, and arresting any participants in Nihilistic Violent Extremist networks – and we have dedicated personnel across all 50 states working on these high priority investigations. We arrested 500% more NVE offenders with our partners last year for a reason – because we have a renewed mission to bring these predators to justice, and that’s exactly what we’ll do. I want to thank our FBI Nashville Field Office and the Knoxville Resident Agency who pursued this case and succeeded in bringing justice to the victims and their families.”
“Spitze is one of the original members of the nihilistic violent extremist groups ‘Harm Nation’ and ‘764,’ and was committed to bringing about the downfall of society through terrorism, specifically by targeting children and other vulnerable people and extorting them to engage in criminal sexual conduct, self-harm, and mass casualty events,” said Assistant Attorney General for National Security John A. Eisenberg. “Today’s sentence of 77 years, the longest federal sentence ever imposed on a nihilistic violent extremist, sends a strong message that civil society will not tolerate such depravity. The National Security Division will work tirelessly with our law-enforcement partners to identify and prosecute these predators and keep our children safe from this new form of terrorism.”
“This sentence reflects the abhorrent nature of the defendant’s crimes, which targeted impressionable children and caused unimaginable harm,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “NVE members and leaders are a threat to our communities, and our office is committed to prosecuting those individuals to the fullest extent.”
“Employing and pressuring children, among the most vulnerable members of our society, to produce sexually explicit and harmful material is unconscionable,” said Special Agent in Charge Terence G. Reilly of the FBI Nashville Field Office. “The FBI, alongside our local, state, and federal partners, will relentlessly pursue those associated with Nihilistic Violent Extremism networks who target and exploit children. We will use every lawful tool available to disrupt and dismantle these networks, prevent the spread of their depraved ideology, and protect children from further harm.”
According to court-filed documents, Spitze, also known as “Crimhn,” “Criminal,” and “Criminaloli,” was a member of the Nihilistic Violent Extremist (NVE) group “764,” and an administrator of the 764 network “HarmNation.” NVE groups such as 764 and HarmNation use online social media platforms to produce and distribute extreme gore media and child sexual abuse material depicting vulnerable, juvenile populations; often conducting group, coordinated extortion of under-aged victims to comply with the groups’ depraved and perverse demands.
In December of 2023, the FBI started looking into tips that HarmNation members were distributing child sexual abuse material. Spitze was identified as one of those members and found to have hosted a social media channel where he uploaded images and videos of nude minor girls who had self-mutilated with cuts and gashes, with variations of Spitze’s “Crim” or “Criminal” monikers written in blood on themselves or carved into their bodies. The channel also hosted images of animal mutilation, with a variation of “Crim” written in the images.
In February of 2024, investigators obtained a search warrant for Spitze’s cellphone, which contained similar images and videos, particularly of two minor victims, one of which had written “crim” on her chest scrawled in her own blood. The minor victim later admitted to FBI that she was threatened by Spitze to produce the images for him to upload on a separate social media channel. Spitze admitted to investigators that he had a terrorist motive in committing his crimes.
Spitze pleaded guilty to two counts of production of child sexual exploitation material, one count of abetting the distribution of animal crushing videos, and one count of possessing and accessing with the intent to view child sexual exploitation material.
The FBI Knoxville Resident Agency investigated the case.
Assistant U.S. Attorney Jennifer Kolman for the Eastern District of Tennessee prosecuted the case. Trial Attorneys Justin Sher and James Donnelly for the National Security Division’s Counterterrorism Section provided assistance.
The Justice Department remains vigilant against the threat of Nihilistic Violent Extremist (NVE) networks like 764 that operate within the United States and around the globe. NVEs often target vulnerable individuals, including minors, using social media platforms to share CSAM and gore material, and groom victims toward committing acts of violence. Victims are often extorted, coerced, compelled, and blackmailed into complying with NVE demands, including self-mutilation, online and in-person sexual acts, harm to animals, sexual exploitation of siblings and others, acts of violence, threats of violence, suicide, and murder. For more information on how to protect children and others, read about the online risks here: https://www.fbi.gov/how-we-can-help-you/parents-and-caregivers-protecting-your-kids and the FBI’s March 2025 public service announcement.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
For more information about PSC, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click the tab "resources.”
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U.S. Attorney’s Office Welcomes Three Newly Sworn Assistant United States AttorneysRead the Press Release
United States Attorney Ellis Boyle administered the oath of office to three Assistant United States Attorneys who will serve in the Eastern District of North Carolina. Covering 44 counties from the Triangle to the coast, the Eastern District handles a broad range of federal criminal and civil matters, partnering closely with local communities and law enforcement agencies. The newly appointed prosecutors will help uphold the rule of law, protect constitutional rights, and strengthen public trust across this diverse and expansive district.
Tucson Man Sentenced to 87 Months in Prison for Voluntary ManslaughterRead the Press Release
TUCSON, Ariz. – Santiago Luis Valencia, Jr., 36, of Tucson, was sentenced earlier this month by Chief United States District Judge Jennifer G. Zipps to 87 months in prison. Valencia previously pleaded guilty to Voluntary Manslaughter.
On June 15, 2024, Valencia assaulted the victim at a private residence on the Pascua Yaqui Tribe after initiating a physical altercation. During the fight, the victim suffered a head injury that resulted in his death the following day. Both Valencia and the victim were enrolled members of the Pascua Yaqui Tribe.
The FBI Phoenix Division’s Tucson office and the Pascua Yaqui Police Department conducted the investigation. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-24-04265-TUC-JGZ
RELEASE NUMBER: 2026-140_Valencia# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Texas Man Sentenced to 70 Months for Conspiracy to Commit Bank FraudRead the Press Release
United States Attorney Lesley A. Woods announced that Khalil Robinson, 20, of Pearland, Texas, was sentenced on August 13, 2026, in federal court in Omaha, Nebraska, for conspiracy to commit bank fraud. United States District Judge Robert F. Rossiter, Jr. sentenced Robinson to 70 months’ imprisonment. There is no parole in the federal system. After Robinson’s release from prison, he will begin a 10-year term of supervised release. Judge Rossiter ordered Robinson to pay $147,520.20 in restitution to identified victims of the bank fraud conspiracy.
Between February 2024 and April 2025, Robinson and others, conspired to steal mail from United States Postal Service (USPS) blue collection boxes around the United States. Checks taken from the stolen mail were resold on Telegram or altered and deposited into bank accounts created by individuals recruited into the conspiracy. In September 2024, USPS Inspectors began receiving reports of mail being placed in blue collection boxes at the Elmwood Post Office and Saddle Creek Post Office in Omaha and not arriving at its intended destination. The Lincoln, Nebraska postmaster also reported multiple blue boxes being pried into and multiple arrow lock keys stolen throughout Lincoln. On January 13, 2025, Omaha police officers found Robinson in possession of stolen mail and recovered a counterfeit key from the blue collection box Robinson broke into. On Robinson’s phone and social media accounts, postal inspectors found evidence of Robinson manufacturing arrow lock keys, recruiting individuals to open bank accounts, and images of checks from Nebraska, Virginia, and Kentucky totaling $167,000. The total value of checks postal inspectors can attribute to the bank fraud conspiracy is approximately $1,968,868. The actual loss attributable to the conspiracy is $813,458.
This case was investigated by the United States Postal Inspection Service.