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23 June 2026
Newtonville Man Sentenced to Five Years in Prison for Cocaine DistributionRead the Press Release
BOSTON – A Newtonville man was sentenced today in federal court in Boston for a drug distribution offense involving cocaine.
Trevor Headley, 32, was sentenced by U.S. District Court Judge Allison D. Burroughs to five years in prison, to be followed by four years of supervised release. In April 2026, Headley pleaded guilty to one count of possession with intent to distribute 500 grams or more of cocaine and two counts of distribution of and possession with intent to distribute cocaine. Headley was arrested and charged in October 2025.
In August 2025, Headley distributed cocaine to an undercover law enforcement officer on multiple occasions. On Aug. 12, 2025, after arranging the first transaction through a series of communications, Headley met the undercover officer at a pre-arranged location and sold approximately 112 grams of cocaine. On Aug. 27, 2025, Headley conducted a second controlled transaction, this time distributing approximately 451 grams of cocaine.
Additionally, on recorded phone calls with the undercover officer in September 2025, Headley discussed obtaining an additional kilogram of cocaine for sale and expressed interest in obtaining firearms and machinegun conversion devices – stating that the firearms would be included as part of the negotiation, in exchange for the cocaine.
During a search of Headley’s residence following his arrest in October 2025, approximately three kilograms of cocaine packaged for distribution, along with more than $32,000 in cash and other items consistent with drug trafficking were recovered.
United States Attorney Leah B. Foley; Thomas Greco, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Jarod A. Forget, Special Agent in Charge of the Drug Enforcement Administration in New England; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhood.
Newport News man sentenced to 15 years in prison for sexually exploiting a minor and posting a video of the abuse onlineRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced today to 15 years in prison for production of child sexual abuse material (CSAM).
According to court documents, in February 2024, Kemp Jermaine Nelson, 33, engaged in sex with a 15-year-old runaway, recorded his abuse of the victim, and then posted the resultant CSAM on social media. On Sept. 17, 2025, FBI agents searched Nelson’s residence. Nelson claimed to investigators that he was a “content creator” and “porn star.”
The FBI’s Norfolk Field Office investigated this case.
Assistant U.S. Attorney Peter G. Osyf prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:25-CR-68.
New York Man Sentenced to Prison for Impersonating Crypto Influencers in Investment ScamRead the Press Release
Baltimore, Maryland – A New York man received a federal-prison term for mimicking popular crypto influencers as he carried out a wire-fraud scheme.
U.S. District Judge Deborah K. Chasanow sentenced Noman Saleem, 39, of Queens and Levittown, to 15 months in prison, followed by three years of supervised release, in connection with the scam. Saleem conspired to steal victims’ money — including a victim in Maryland — under the guise of a crypto staking or crypto investment opportunity with guaranteed returns.
Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the sentence with Special Agent in Charge Jimmy Paul, FBI Baltimore Field Office.
According to court documents, beginning in December 2020, and continuing through at least March 2021, Saleem engaged in the investment scheme by promoting himself as popular online crypto influencers, convincing several victims to send crypto to virtual wallets that he owned and controlled. The victims invested with Saleem under the guise of a crypto staking or crypto investment opportunity with guaranteed returns. After Saleem took control of the victims’ crypto, he ceased communicating with them and disappeared with their crypto.
Cryptocurrencies are not tied to any nation’s fiat currency. The owner of cryptocurrency is assigned a mathematical encryption key pair consisting of a public key and a private key. A public key, also known as an address, is visible to the public. The public key allows the public to verify the owner of virtual currency and to send and receive cryptocurrencies. A private key, also known as a secret key, utilizes a password to complete cryptocurrency transactions. Secret keys are typically only shared with the owner of the public key. A wallet can hold multiple public keys for a user and an account can hold multiple wallets for a user.
Crypto staking involves holding cryptocurrency holdings for a period of time to earn interest or rewards. Crypto staking is often accomplished through groups of people or pools, with participants earning passive income on their holdings, ranging from 5 to 20 percent.
In 2020, Saleem began using Telegram as a messaging application. Saleem created a handle on Telegram used by a popular crypto influencer. Thousands of people joined Saleem’s public channel, and he also created a VIP sub channel by subscription in exchange for approximately $500 to $600 of crypto. Saleem led members to believe that he was the influencer, as VIP channel members could direct message him. He also created a second handle using another popular crypto influencer’s handle and offered channel members the option to join his VIP channel by subscription.
Saleem advertised staking rewards through his Telegram channels, with terms of 30 to 90 days. He then enticed potential investors with promises that the more crypto that they invested, the greater the returns. Saleem never actually staked any crypto.
While conducting the crypto influencing and staking scheme, Saleem obtained at least $1,415,067.14 in the equivalent of U.S. currency and crypto. The Government seized much of these losses back in the form of crypto and U.S. currency, as identified in the plea agreement.
U.S. Attorney Hayes commended the FBI for its work in the investigation. Ms. Hayes also thanked Assistant U.S. Attorney Sean R. Delaney, who prosecuted this federal case, and recognized Paralegal Specialist Shelbe Mascaro for her valuable assistance.
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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New Jersey Woman Pleads Guilty to Depositing Counterfeit Treasury CheckRead the Press Release
PORTLAND, Maine: A New Jersey woman, formerly of Westbrook, pleaded guilty today in U.S. District Court in Portland to presenting a counterfeit government check to her credit union.
According to court records, Palwasha Shir, 35, was the sole owner of the Selfie Room LLC, a business Shir registered in Maine. Shir opened a checking account for the Selfie Room at a credit union in Maine. In July 2024, Shir deposited a counterfeit Treasury check made payable to the Selfie Room in the amount of $291,203. In August 2024, Shir deposited a counterfeit Treasury check made payable to the Selfie Room in the amount of $193,107. The serial numbers and amounts on the checks matched those of genuine tax refund checks issued by the IRS to entities other than the Selfie Room and unrelated to Shir. The counterfeit checks changed the payee and address to make the checks payable to the Selfie Room. When a representative of the credit union called Shir to discuss the checks, Shir falsely claimed that she received the checks from the IRS.
Shir faces up to 20 years in prison, a $250,000 fine, and up to three years of supervised release. She will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation investigated the case.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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Navajo Man Sentenced to 31 Years in Prison for Sexual AbuseRead the Press Release
PHOENIX, Ariz. – Last week, McRenoisen Morales Sagina, 57, of St. Michaels, Arizona, was sentenced by U.S. District Judge Diane J. Humetewa to 31 years in federal prison, followed by 10 years of supervised release. On March 18, 2026, a federal jury convicted Sagina of one count of Sexual Abuse by Threat, two counts of Abusive Sexual Contact by Threat, and three counts of Sexual Abuse Without Consent.
The evidence at trial showed that between Jan. 2025 and March 10, 2025, Sagina, an enrolled member of the Navajo Nation, sexually abused a 17-year-old on the Navajo Nation Reservation, in St. Michaels, Arizona. As part of the abuse, Sagina, who served as a medicine man on the Navajo Nation Reservation, threatened the victim with witchcraft and violence. Sagina’s threats included pointing a shotgun at the victim to make her take her clothes off.
The FBI Phoenix Division’s Gallup Office and the Navajo Nation Criminal Investigator’s Office conducted the investigation. Assistant U.S. Attorneys Genevieve A. Ozark and Tracy Van Buskirk, District of Arizona, Phoenix, prosecuted the case.
CASE NUMBER: CR-25-08052-PCT-DJH
RELEASE NUMBER: 2026-104_Sagina# # #
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 X @USAO_AZ for the latest news.National Health Care Fraud Takedown Results in 455 Defendants Charged in Fraud Scheme Totaling over $6.5 BillionRead the Press Release
Today, United States Attorney David I. Courcelle announced criminal charges against two defendants in connection with alleged schemes to defraud Medicare, Medicaid, and TRICARE, and other health care benefit programs. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The charges stem from schemes to submit claims for medically unnecessary respiratory pathogen panel (“RPP”) testing and fraudulent claims for care that a provider did not provide to patients. Additionally, arrests were announced by the State of Louisiana’s Attorney General’s Office pursuant to criminal charges against three defendants in connection with alleged schemes to defraud Medicaid.
“The charges announced today include some of the largest and most complex cases that the Department has prosecuted and reinforces the combined missions of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of Louisiana, and our law enforcement partners,” said U.S. Attorney David I. Courcelle. “Our office, along with our law enforcement partners, will continue to vigorously investigate and prosecute alleged perpetrators of fraud, and seek justice for those impacted by Health Care Fraud schemes.”
“The men and women of Louisiana get up and go to work every single day to provide for their families. Their tax dollars are intended for those in need. Nothing is more offensive than those who manipulate the system for their own benefit,” said Louisiana State Attorney General Liz Murrill.
The charges announced today by U.S. Attorney Courcelle are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individuals were charged in the Eastern District of Louisiana federal court:
Holly Broussard, 44, of Shreveport, Louisiana, was charged by indictment with conspiracy to commit health care fraud in connection with a scheme to submit fraudulent claims to Medicare, Medicaid, and other health care benefit programs for medically unnecessary respiratory pathogen panel (“RPP”) testing. As alleged in the indictment, Broussard, a sales representative for a diagnostic laboratory based in Louisiana, solicited orders for unnecessary RPP tests, to be bundled with COVID-19 tests, in order to maximize reimbursement from health care benefit programs. Broussard targeted providers in rural areas who had limited or no other options for treatment, including nursing homes and assisted living facilities that only needed COVID-19 testing. In total, Broussard caused the submission of over $51.7 million in claims for respiratory panel testing, of which the laboratory was reimbursed over $28.4 million. The case is being prosecuted by Trial Attorney James McHale of the National Rapid Response Strike Force and Trial Attorney Kelly Z. Walters of the Gulf Coast Strike Force.
Dr. Christopher Whipple, 41, of New Orleans, Louisiana, was charged by indictment with health care fraud in connection with a scheme to submit at least $5,900,000 in false and fraudulent claims to Medicare. As alleged in the indictment, Whipple, a licensed physician, submitted claims on behalf of patients for care he did not provide, including billing for in-person care despite being outside the state of Louisiana. Whipple also submitted claims using the identities of other providers without their permission and caused the submission of claims for care allegedly rendered after a patient had died. The case is being prosecuted by Trial Attorney Zakeria Haidary and Acting Assistant Chief Sara Porter of the Gulf Coast Strike Force and Assistant U.S. Attorney Tracey Knight of the Eastern District of Louisiana. Assistant U.S. Attorney Alexandra Giavotella of the Eastern District of Louisiana is handling asset forfeiture.
Criminal actions in Louisiana State Court include:
Jaquala Robertson, 36, of Hammond, Louisiana, was arrested pursuant to a warrant for Medicaid fraud. As alleged in the arrest warrant affidavit, Robertson was the employer of Kirstan Wells as part of the Medicaid Self Direction Program and approved false claims for personal care services allegedly provided to Robertson’s child who was a Medicaid recipient while the child was actually present in a day care facility. The amount of money paid by Medicaid for these fraudulent claims was $5,532.95. The case is being prosecuted by the Louisiana Attorney General’s Medicaid Fraud Control Unit with the permission of the District Attorney’s Office for the Nineteenth Judicial District.
Kirstan Wells, 33, of Hammond, Louisiana, was arrested pursuant to a warrant for Medicaid Fraud. As alleged in the arrest warrant affidavit, Wells submitted false claims for providing personal care services to a Medicaid recipient for times when the recipient was actually in a day care facility. The amount of money paid by Medicaid for these fraudulent claims was $5,532.95. The case is being prosecuted by the Louisiana Attorney General’s Medicaid Fraud Control Unit with the permission of the District Attorney’s Office for the Nineteenth Judicial District.
Asha Clark, 23, of Mount Hermon, Louisiana, was arrested pursuant to a warrant for Medicaid fraud. As alleged in the arrest warrant affidavit, Clark was employed as a direct service work through the Medicaid Self Direction Program to provide personal care services for a Medicaid recipient. During her employment, Clark submitted fraudulent claims to Medicaid for services that were not rendered during two separate time periods when the recipient was incarcerated. The total amount paid by Medicaid for these fraudulent claims was $6,610.79. The case is being prosecuted by the Louisiana Attorney General’s Medicaid Fraud Control Unit with the permission of the District Attorney’s Office for the Nineteenth Judicial District.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Eastern District of Louisiana, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); Federal Bureau of Investigation; IRS-Criminal Investigations; Louisiana Medicaid Fraud Control Unit; and U.S. Department of Veterans Affairs – Office of Inspector General.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Health Care Fraud Takedown Results in 455 Defendants Charged in Connection with over $6.5 Billion in Alleged Fraud, Including Oahu Man Charged with Fraudulent Billing Resulting in $1.5 Million LossRead the Press Release
HONOLULU – Today, United States Attorney Ken Sorenson announced criminal charges against Henry Quan in connection with an alleged scheme to defraud Medicare. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The charges stem from a scheme to bill for prescription drugs that were never dispensed.
“Health care fraud – driven by greed and a total disregard for the patients whom health care providers are meant to serve – is a blight on our community that the U.S. Attorney’s Office and its law enforcement partners are committed to eradicating,” said U.S. Attorney Ken Sorenson. “We will bring to justice those who seek to steal from our taxpayers, undermine our federal health care programs, and endanger the lives of patients in the process.”
“Protecting federal healthcare programs from fraud and abuse is a top priority for the FBI,” said FBI Honolulu Special Agent in Charge David Porter. “As alleged, the defendant compromised the integrity of our healthcare system and put profits over patient care by charging Medicare for prescription drugs that were never provided. The FBI, alongside our law enforcement partners, will continue to aggressively pursue and hold accountable anyone who attempts to enrich themselves at the expense of American taxpayers and vulnerable patients.”
“These charges reflect the serious threat that health care fraud poses to patients and to the integrity of federal healthcare programs,” said Special Agent in Charge Robb Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Pacific Regional Office. “I want to commend the investigators and prosecutors whose diligent work brought these allegations to light. HHS-OIG remains committed to pursuing those who exploit and defraud the Medicare program.”
The charges announced today by U.S. Attorney Ken Sorenson are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
In the District of Hawaii, Henry Quan, 54, of Honolulu, Hawaii, was charged by criminal complaint with healthcare fraud in connection with a scheme to bill Medicare for prescription drugs that were never dispensed, resulting in a loss of at least $1.5 million. As alleged in the criminal complaint, Quan, a registered pharmacist, controlled Wellness Pharmacy, which billed for drugs that were not dispensed. This included fraudulently billing for several high-cost medications, such as Restasis, for which the pharmacy did not have sufficient supplies on hand to cover the medications it claimed to have dispensed to patients.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The District of Hawaii, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the FBI and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
Assistant U.S. Attorney Michael Albanese is prosecuting the case against Quan.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
National Health Care Fraud Takedown Results in 455 Defendants Charged in Connection with over $6.5 Billion in Alleged FraudRead the Press Release
The Justice Department today announced the 2026 National Health Care Fraud Takedown, which resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
“This year’s National Health Care Fraud Takedown represents the greatest whole-of-government effort to combat health care fraud in our Nation’s history,” said Acting Attorney General Todd Blanche. “Under the decisive leadership of President Donald Trump, Vice President JD Vance, the White House Task Force to Eliminate Fraud, and our law enforcement partners, this administration has ushered in a new era of enforcement that will safeguard taxpayer dollars.”
“We are aggressively scaling our offensive against anyone using health care as a front to steal from the American people,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As today’s cases and arrests show, there is no case too big, no scheme too complex, and no hiding place too remote for our relentless fraud-fighting team. Our message is simple: if you put profit over patients, you should expect to be put in prison.”
“Health care fraud steals from taxpayers, exploits vulnerable patients, and puts lives at risk,” said U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. “Today’s historic enforcement action sends a clear message: if you use our health care system to enrich yourself at the expense of patients or the American people, we will find you, we will prosecute you, and we will hold you accountable. HHS will continue working with our law enforcement partners to protect patients, safeguard taxpayer dollars, and restore integrity to our health care system.”
“The coordination in the Health Care Fraud Takedown reinforces the Trump Administration’s efforts to end the crimes of bad actors who have ripped off U.S. taxpayers,” said Department of Homeland Security Secretary Markwayne Mullin. “This is a whole of government effort, to hold those who defraud our nation accountable. Our message is clear: if you steal from American taxpayers, you will face the consequences.”
“This results of this nationwide healthcare takedown are historic,” said FBI Director Kash Patel. “Under the leadership of President Trump, Vice President Vance, and the White House Task Force to Eliminate Fraud, this FBI worked alongside our DOJ partners to arrest and charge over 450 people, including almost 100 medical professionals, for over $6 billion in alleged healthcare fraud schemes - showing the enormous amount of work done by our interagency law enforcement team over the last month and beyond. While today’s announcement is one of the largest on record–every arrest is a continued message to criminal actors who rob American taxpayers that you will not get away with your crimes.”
Fraudulent Wound Care Schemes
Charges were filed against 11 defendants, including a company executive and eight medical professionals, across six districts in connection with billions of dollars in fraudulent claims for amniotic wound allografts. In the District of Arizona, the Vice President of Sales for a company that sold allografts was charged in a nationwide illegal kickback and health care fraud scheme. From approximately December 2021 through June 2024, providers billed Medicare over $4 billion for this company’s allografts, resulting in over $2 billion in payments. This significant spike in allograft billings was alleged to have been driven not by medical necessity, but by a kickback scheme that generated substantial profit margins and lavish lifestyles for marketers and providers who participated. The company did not manufacture allografts and instead acquired allografts from tissue banks and relabeled them for sale at a 2,000% mark-up, charging up to $1,450 per square centimeter. The defendant is alleged to have paid illegal kickbacks of approximately 40% of that amount, allowing marketers and medical providers to pocket approximately $500-600 per square centimeter. These lucrative kickbacks allegedly caused the defendant and others to target hospice patients and apply the allografts without coordination with the patients’ treating physicians, without proper treatment for infection, to superficial wounds that did not need this treatment, and to areas that far exceeded the size of the wound. The defendant received over $24 million from the company, which he used to purchase multi-million-dollar houses, million-dollar life insurance policies, luxury vehicles, including a $135,000 Maserati, and luxury watches. This follows 15.5- and 14-year sentences obtained last year in connection with the scheme.
Today’s charges reflect the Department’s intention to prosecute both the architects of fraud and those who betray their oath to carry out the scheme. In the Southern District of Texas, a nurse practitioner was charged for a $906 million scheme in which she applied medically unnecessary allografts and billed Medicare more than $1 million per patient on average. As alleged, the defendant used the fraud proceeds to purchase high-end vehicles, real estate, and luxury jewelry, and to fund the construction of a $4.6 million of a beach resort in the Philippines. The government seized over $30 million in bank accounts, a $594,000 Ferrari 296 GTS, seven other high-end vehicles, an $865,000 custom Bulgari necklace, and $1 million worth of other luxury jewelry.
$865,000 Bulgari necklace seized as proceeds of alleged Medicare fraud scheme involving wound allografts; rendering of beach resort in the Philippines constructed with $4.6 million allegedly stolen from Medicare in wound allograft fraud schemeSimilarly, in the Middle District of Florida, three defendants were charged for their roles in an $118 million allograft fraud scheme where a nurse practitioner allegedly used the proceeds to fund her lavish lifestyle, including a luxury box at an NFL stadium and over $400,000 in fine art.
The Health Care Fraud Unit’s Data Analytics Team detected a spike in payment for allografts, leading to prosecutions. CMS separately realigned payment, reducing Medicare’s payment to $127 per square centimeter starting on January 1, 2026. If CMS had not taken action to address unprecedented spending on allografts, the Part B premium increase caused by allograft payments alone would have cost every Medicare beneficiary in the country an extra $11 a month.
“Prosecuting criminals who steal from American patients is necessary—but stopping them before a single dollar leaves the building is smarter,” said CMS Administrator Dr. Mehmet Oz. “CMS is done playing catch-up. We’re deploying advanced data analytics to expose fraud networks, freeze suspicious payments, and shut down bad actors before they can do damage to the programs that millions of Americans depend on.”
Data Fusion Center, Financial Intelligence Review Team, and Data Analytics Enhancements
The Health Care Fraud Unit is a leader in employing advanced data analytics. Its Data Fusion Center —announced as part of last year’s Takedown and comprised of experts from the Unit’s Data Analytics Team, HHS-OIG, FBI, and other agencies—used advanced analytics in many of the cases charged today. The Department is announcing the first prosecution arising from the Fusion Center’s Financial Intelligence Review Team, which was formed last year to combine traditional data analytics with financial analysis, in connection with a $67 million scheme to bill Illinois Medicaid for behavioral health services that were not provided. The defendant allegedly submitted claims to Medicaid for 500 or more hours of counseling and therapy services per day, well in excess of what the providers on staff could render even if all providers were working 24 hours per day, and diverted over $27 million to brokerage accounts, $10 million to a luxury car dealership he set up, $4 million for real estate purchases and home improvements, one million for jewelry, watches, purchases, and other luxury items, and over $616,022 for vehicles. Data analysis established that patients were hospitalized at other institutions on days that the defendant billed for behavioral health services, and the Health Care Fraud Unit’s specialized prosecutors opened the investigation within five days of the financial intelligence review. The defendant was arrested less than seven months later at the airport Sunday night attempting to leave the country.
Yacht and Bentley Continental GT purchased with proceeds of alleged fraudIn the Central District of California, charges were brought against a hospice owner and two marketers for a $27.7 million Medicare fraud scheme in which the hospice owner allegedly tried to avoid detection through a scheme to purchase information of the recently deceased from a funeral home employee. The defendant was allegedly carrying out a hospice fraud scheme in which he fraudulently enrolled patients who were not terminally ill. Concerned that Medicare and law enforcement used data analytics to monitor the percentage of patients discharged from hospice alive (an indicator of fraud), the hospice owner allegedly paid illegal kickbacks of $1,000 to $3,000 per person to a funeral home employee in exchange for deceased Medicare beneficiaries’ information. The defendant then allegedly billed Medicare for a few days of hospice services for these recently-deceased individuals who hadn’t received hospice care and created fake, back-dated medical records claiming that the beneficiaries had been seen by a physician, thereby allegedly seeking to deceive Medicare by reducing his outlier data metrics.
In today’s Takedown, the Department announced the seizure of over $27 million in fraudulent Medicare payments in the Southern District of Florida as part of a data-driven effort to target “bust-out schemes” involving 12 clinics that billed Medicare millions of dollars for allografts that were never provided to patients. This novel and proactive “follow and seize the money” approach maximized recovery of stolen taxpayer dollars.
To enhance the deployment of advanced analytics to target health care fraud, the Fraud Division and CMS announced today that they have entered an agreement whereby the Fraud Division will be provided cloud computing space in the CMS Integrated Data Repository environment in which to deploy advanced data analytics algorithms and artificial intelligence tools. In addition, the Fraud Division entered into agreements with the Department of Homeland Security and the Federal Trade Commission aimed at breaking down data silos and improving access to information critical to identifying and combatting health care fraud. CMS also is announcing today that it is developing a Claims Core processing with electronic attestation, identify verification, and IP address log-in, and working to get pledges that all Medicaid, Managed Care, and other plans report the same standardized data fields used for Medicare Part B claims data.
Patient Harm
Health care fraud is a top white-collar priority of the Department because it both steals from the taxpayers and risks harm to patients by corrupt medical providers. In the Southern District of Florida, the medical director of a cardiovascular testing and treatment practice was charged in connection with an $89 million scheme to bill for unnecessary cardiovascular tests, such as EKGs and echocardiograms, conducted on student athletes on school campuses. According to the charges, the defendant and his co-conspirators used marketing tactics designed to prey on fears that student athletes could die from sudden cardiac arrest. The defendant then allegedly falsified diagnoses to defraud health care benefit programs for the testing. Despite knowing, as the defendant wrote, that “these kids could be high risk . . . one of them drops dead on the field, they’re coming after both of us,” he allegedly rubber stamped the test results as normal without reviewing them—sometimes approving test results within mere seconds—such that student athletes with cardiac abnormalities were not informed that they needed to stop participating in sports, risking sudden cardiac arrest. Despite one patient’s test results showing an enlarged heart, the defendant allegedly signed off on the test results as normal within approximately 11 seconds of accessing the 63 cardiovascular test result images. Approximately 24 days later, the student athlete died from complications related to an enlarged heart during a basketball practice.
“Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year’s National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations,” said HHS Inspector General T. March Bell. “HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds.”
In Alaska, state prosecutors charged a defendant for medical assistance fraud based on allegations that, while working as a personal care attendant for a Medicaid recipient, the defendant submitted false claims for regularly attending to the recipient’s health and hygiene, at the same time that she was admitted to the hospital for suffering from severe neglect, including being soiled in urine.
Medicaid Fraud
Data shows that Medicaid is a vital government benefit program increasingly targeted by criminals. Building upon the success of the recent Minnesota Health Care Fraud Takedown and the Acting Attorney General’s authorization of an enhancement for the Health Care Fraud Unit to investigate Medicaid fraud nationwide, today’s Takedown includes the largest number of Medicaid fraud defendants and Medicaid fraud loss charged in Department history: 295 defendants and over $518 million in false claims submitted to Medicaid.
In the Eastern District of New York, charges were brought against eight defendants for their role in a $38 million fraud on New York Medicaid for social adult day care services that were medically unnecessary, procured by kickbacks to marketers and beneficiaries, and never provided. Although the permitted occupancy of the social adult day cares (shown below) was only 30 people, the defendants fraudulently submitted claims for services provided to hundreds of beneficiaries per day.
Interior of Brooklyn social adult day care centers where allegedly fraudulent bills to New York Medicaid claimed hundreds of beneficiaries received services per dayIn the Eastern District of Virginia, the co-owner of a mental health company was charged with a $49 million Virginia Medicaid fraud scheme that targeted the homeless by offering them illegal bribes in the form of hotel stays in exchange for using their Medicaid numbers to bill for crisis stabilization services that they did not need or receive. In the District of Arizona, a defendant was charged for submitting $44 million in fraudulent claims for behavioral services, primarily targeting Native Americans struggling with substance abuse. As alleged, the defendant billed for services that were never provided and falsified therapy notes to reflect that patients had attended therapy sessions.
Transnational Organizations, International Cooperation, and the Most Wanted Fraudsters List
Today’s Takedown demonstrates that no fraudster can hide from the law, whether in the United States or abroad, and involved unprecedented international cooperation. In the 2025 National Health Care Fraud Takedown, 29 defendants were charged for their roles in a transnational criminal organization alleged to have submitted over $10 billion in fraudulent claims. Since then, the organization continued the scheme, and, in the Southern District of Florida, Ibrahim Hilmi was charged in connection with an additional $3.7 billion in false claims for urinary catheters and other durable medical equipment that was never provided. Though the defendant fled, he was apprehended in Kyrenia and made his initial appearance yesterday in the Southern District of Florida. In addition, two other members of the organization who were charged in last year’s Takedown were apprehended in Estonia, extradited to the United States, and made their initial appearance in the Eastern District of New York on June 12. Five additional defendants were charged in connection with the scheme.
Ibrahim Hilmi landing in the United States after being apprehended in a $3.7 billion fraudOn June 4, the FBI announced the creation of the Most Wanted Fraudsters List. The list included Herb Kimble, a fugitive in a $1.2 billion telemedicine and durable medical equipment scheme, who, on June 8—just four days later—was apprehended in the Philippines. On June 16, Kimble was indicted in the District of South Carolina with three counts of failure to appear at court hearings. In connection with the Takedown, as a result of the apprehension of Kimble and one other recently-apprehended fraudster on the list, today the FBI announced two new additions to the Most Wanted Fraudsters List: Khalid Satary, wanted in a $547 million genetic testing Medicare fraud scheme, who, after being released on bond over the government’s objection, fled the country and is believed to be in the United Arab Emirates; and Emylee Thai, wanted in a $90 million genetic testing Medicare fraud scheme, who was released on bond, cut-off her ankle monitor, and fled to Vietnam via private charter using a fake passport.
The Department thanks the governments of Estonia, the Philippines, and Turkey for their cooperation in the apprehension of these health care fraud fugitives and defendants.
Illegal Opioid Distribution
36 defendants, including 28 licensed medical professionals, were charged in connection with the alleged illegal diversion of prescription opioids and other controlled substances that resulted in patient harm. In the Eastern District of Pennsylvania, three defendants were charged with conspiracy to unlawfully distribute controlled substances. The defendants allegedly operated a voicemail refill line that allowed patients to request and receive refills of Schedule II controlled substance prescriptions—though some patients who used the refill line to obtain Schedule II controlled substances from the defendants suffered drug overdoses and died, the defendants continued to operate the refill line to prescribe Schedule II controlled substances without interacting with patients. In the Southern District of Texas, a pharmacist and two clinic managers were charged by indictment with drug conspiracy in connection with the distribution of more than 3.4 million pills of opioids and other controlled substances, many of which were prescribed to patients brought to the clinics and pharmacy by street-level drug traffickers for further distribution.
“DEA occupies a unique place in this fight—we sit at the intersection of healthcare, regulation, and law enforcement. Our job is to protect the controlled substance supply chain and ensure medications reach patients who legitimately need them,” said DEA Administrator Terrance Cole. “Those who exploit that system for personal profit threaten both public safety, public health, and the integrity of our healthcare system. We will continue to identify these criminals, stop them, and hold them accountable.”
“Health care fraud is not a victimless crime — it robs American workers of their earned benefits, steals from taxpayers, and undermines the very programs meant to protect them. The Department of Labor, Office of Inspector General is committed to rooting out these despicable schemes with unrelenting determination,” said Anthony P. D’Esposito, Inspector General, U.S. Department of Labor. “Together, with our agency and law enforcement partners, we are dismantling fraudulent operations and holding perpetrators accountable for their crimes against the American people. Real care doesn’t come with kickbacks and fake claims. To every fraudster exploiting the system: your time is up. We will find you; we will investigate you, and we will bring you to justice.”
Today’s Takedown was led and coordinated by the Department’s Health Care Fraud Unit and its core partners from U.S. Attorneys’ Offices, HHS-OIG, FBI, DEA, and Medicaid Fraud Control Units (MFCUs) across the country. The cases are being prosecuted by Health Care Fraud Strike Force teams, 56 U.S. Attorneys’ Offices, and 45 State Attorneys General’s Offices nationwide.
Acting Health Care Fraud Chief Jacob Foster, Acting Principal Assistant Chief Rebecca Yuan, Assistant Chief Justin Woodard, and Data Analyst Elizabeth Nolte, all of the Health Care Fraud Unit, led and coordinated this year’s Takedown. Assistant Chief Emily Gurskis and Acting Assistant Chiefs Miriam Glaser Dauermann and Jil Simon provided valuable coordination assistance.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
In addition to FBI, HHS-OIG, DEA, and MFCUs, CMS, Homeland Security Investigations, the Department of Veterans Affairs, Office of Inspector General, IRS Criminal Investigation, Defense Criminal Investigative Service, Department of Labor, United States Postal Service Office of Inspector General, Office of Personnel Management Office of Inspector General, and other federal, state, and local law enforcement agencies participated in the operation.
“Healthcare fraud schemes deprive veterans of needed services and rob taxpayers,” said Inspector General of the Department of Veterans Affairs Cheryl Mason. “As VA Inspector General, I made it a priority for all VA OIG components to actively pursue those who attempt to defraud VA healthcare programs.”
“Today’s coordinated takedown reflects the Department of War Office of Inspector General’s unwavering commitment to protecting Service members, retirees, and their families from those who exploit federal health care programs,” said Inspector General Platte B. Moring III. “Working alongside our law enforcement partners, the Defense Criminal Investigative Service continues to pursue schemes that endanger patients, erode trust in the medical system, and divert resources critical to military readiness.”
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Prior to the charges announced as part of today’s nationwide Takedown and since its inception in March 2007, the National Fraud Division’s Health Care Strike Force program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, CMS, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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The following materials related to today’s announcement are available on the Health Care Fraud Unit’s website through these links:
- Graphics and Resources
- Case Descriptions
- Court Documents
National Health Care Fraud Takedown Results in 455 Defendants Charged in Connection with over $6.5 Billion in Alleged FraudRead the Press Release
Albuquerque, NM - Today, F.A. United States Attorney Ryan Ellison and Attorney General Raúl Torrez announced the filing of a federal civil forfeiture complaint seeking to forfeit more than $2 million that was seized due to allegations that the assets constitute proceeds of a scheme to defraud Medicaid and state criminal charges against an additional defendant. These actions in federal and state court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
The federal civil forfeiture action stems from an alleged scheme by Safeway Medical Transportation LLC, a New Mexico non-emergency medical transportation provider, to fraudulently bill the New Mexico Medicaid program for transportation services. According to the complaint, Safeway received Medicaid reimbursements for claims in which Safeway drivers were allegedly billing Medicaid for driving themselves to appointments and for trips that did not occur, engaging in other fraudulent billing practices, including duplicate trips, inflated mileage, and falsified transportation records. The complaint seeks forfeiture of more than $2 million in seized funds that are alleged to be proceeds of health care fraud and money laundering.
In a separate criminal case, the New Mexico Department of Justice charged a McKinley County man with multiple felony offenses after allegedly using forged prescriptions to obtain Schedule II controlled substances from a pharmacy. The charges include acquiring controlled substances by misrepresentation, forgery, and violations of the Controlled Substances Act.
"Fraud does not have to be sophisticated to be devastating,” said F.A. United States Attorney Ryan Ellison. “When healthcare providers build a business model around false claims and fabricated records, they are stealing directly from the public programs that vulnerable communities rely on. We will use every tool at our disposal to trace these funds, dismantle these operations, and claw back every dollar stolen from the public."
“These cases reflect my Office's ongoing commitment to protecting taxpayer-funded health care programs, safeguarding public resources, and holding accountable those who exploit medical systems for personal gain,” said Attorney General Raúl Torrez. “Through our Medicaid Fraud Control Unit and partnerships with federal law enforcement agencies, we continue to aggressively investigate and prosecute health care fraud, prescription drug fraud, and related financial crimes.”
The charges announced today by F.A. United States Attorney Ellison and Attorney General Torrez are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The District of New Mexico, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the Federal Bureau of Investigation (FBI), the Internal Revenue Service (IRS), the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the New Mexico Department of Justice Medicaid Fraud Control Unit (MFCU).
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the NMDOJ’s Medicaid Fraud and Elder Abuse Bureau (MFEAB). The New Mexico MFEAB receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $3,623,761.71 for federal fiscal year 2026. The remaining 25 percent, totaling $1,207,920.57 for fiscal year 2026, is funded by the State of New Mexico.
National Health Care Fraud Takedown Leads to Forty-One Count Indictment of Pensacola Beach ManRead the Press Release
Pensacola, Florida – Today, United States Attorney John P. Heekin announced criminal charges against Dr. Edward Scott Morrison, who is accused of illegally distributing and dispensing controlled substances. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
U.S. Attorney Heekin said: “I am proud to contribute to the success of the National Health Care Fraud Takedown again this year. Dispensing controlled substances without a legitimate medical purpose not only violates federal law, it endangers the lives of the recipients of those powerful drugs. As our country and our state continue to deal with the devastating impacts of the opioid epidemic, it remains vitally important for my office to crack down on fraudulent prescribing practices by medical professionals.”
The charges announced today by U.S. Attorney Heekin are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individual was charged in the Northern District of Florida: Edward Scott Morrison, 58, of Pensacola Beach, Florida.
According to court documents, Dr. Edward Scott Morrison was charged by indictment with forty-one counts of distributing and dispensing a controlled substance in connection with the illegal prescribing of at least 25,500 controlled substance pills, including over 22,000 opioid pills and over 3,000 stimulant pills. As alleged in the indictment, Morrison was a licensed physician who wrote, signed, and distributed controlled substance prescriptions—including for oxycodone, hydrocodone, amphetamine, lisdexamfetamine, methylphenidate, testosterone, alprazolam, diazepam—to individuals without determining whether there was a legitimate medical purpose for the medication, without conducting physical examinations, without reviewing and assessing all available historical medical and prescribing records, and without creating and maintaining any records of encounters with those individuals. The indictment further alleged Morrison issued controlled substance prescriptions to individuals simply upon their request or the request of a third party in whatever type, dosage, and quantity desired without evaluating the recipient to determine a legitimate medical purpose or need.
If convicted, Morrison faces up to 20 years’ imprisonment on each count. The case is being prosecuted by Assistant U.S. Attorney Alicia Forbes.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Northern District of Florida, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the Drug Enforcement Administration to investigate and prosecute the case filed during the Takedown.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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.
National Health Care Fraud Enforcement Action Results in 455 Defendants Charged and over $6.5 Billion in Intended Fraud Loss ChargedRead the Press Release
DETROIT – Today, United States Attorney Jerome F. Gorgon, Jr. announced criminal charges and civil resolutions in connection with six cases involving alleged schemes to defraud health care programs, including Medicare and Medicaid. The charges were filed in federal court and are part of the Department of Justice’s 2026 National Health Care Fraud Enforcement Action. The criminal charges stem from the fraudulent billing of Medicare and Medicaid. The civil cases resolve alleged violations of the False Claims Act by several health care providers.
The charges announced today by United States Attorney Jerome F. Gorgon, Jr., are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
• Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
• 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
• Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
• 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
“These schemes represent a direct attack on the integrity of federally funded health care programs. Fraudulent billing, false claims, and the failure to return federal funds are unacceptable and a blatant abuse of programs meant to support the American public,” said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. “We will continue to hold accountable anyone who seeks to exploit Medicare, Medicaid, or any other taxpayer supported system."
“Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year’s National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations,” said Department of Health and Human Services Inspector General T. March Bell. “HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds.”
The following individuals were charged in the Eastern District of Michigan:
Hasan “Lucas” Seyhun, 45, of Miami, Florida, was charged by indictment with conspiracy to commit healthcare fraud and conspiracy to launder monetary instruments in connection with an alleged $566 million billing fraud related to Fast Lab Technologies. As alleged in the First Superseding Indictment, Seyhun, as Fast Lab’s Chief Operating Officer, conspired with its CEO (previously charged defendant Cemhan “Jimmy” Biricik) and Medical Director (previously charged defendant Dr. Martin Perlin) to submit health insurance claims for laboratory testing services related to Covid-19 tests that were either not rendered at all or not provided as represented. The First Superseding Indictment also charges Seyhun and Biricik with an additional conspiracy, to both conceal and subsequently launder the proceeds of the health care fraud scheme. The First Superseding Indictment includes significant forfeiture allegations, with specific allegations of property subject to forfeiture that include: a personal aircraft, six high-end vehicles, numerous bank accounts, miscellaneous jewelry and designer handbags, and a residence in Boca Raton, Florida. The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Ryan A. Particka of the U.S. Attorney’s Office for the Eastern District of Michigan.
Emad Hamdan, 55, of Dearborn Heights, Michigan, and Raeyfah Baiz, 41, of Canton, Michigan were charged by way of an information with conspiracy to commit health care fraud for a pharmacy shortage scheme that caused at least $1.9 million in loss to Medicare, Medicaid, and Blue Cross Blue Shield of Michigan. Rabih Hamdan, owner of Medex Pharmacy (Medex), created a scheme to submit false and fraudulent claims for prescriptions that were not medically necessary or not actually dispensed. In many instances, his pharmacy lacked the inventory to dispense these drugs but billed the health care insurers as though they were dispensed. As alleged in the charging documents, Emad Hamdan was one of the supervisors at Medex. He directed Baiz and others to submit false and fraudulent claims to Medicare, Medicaid, and Blue Cross Blue Shield on behalf of Medex. As alleged in the charging documents, Raeyfah Baiz was the pharmacist-in-charge, who maintained a national provider identifier for the purposes of submitting claims to Medicare, Medicare drug plan sponsors, Medicaid, Medicaid health plans, and BlueCross BlueShield. Baiz partnered with Rabih Hamdan and Emad Hamdan to submit false and fraudulent claims to Medicare, Medicaid, and Blue Cross Blue Shield on behalf of Medex. The case is being prosecuted by Assistant United States Attorney Jason Dorval Norwood of the U.S. Attorney’s Office for the Eastern District of Michigan.
Christopher Dzialo, 35, of Reno, Nevada (previously of Grosse Pointe Farms, Michigan) was charged by Indictment with mail fraud and healthcare fraud in connection with a scheme to submit false pharmacy and medical insurance claims for high-reimbursement drugs that were never prescribed and services that were never rendered. As alleged in the indictment, between June 2023 and July 2025, Dzialo submitted at least eight fraudulent Direct Member Reimbursements (DMR) to his own insurance provider, seeking repayment for alleged out of pocket expenses. These claims either were for prescriptions he never obtained or medical procedures he never received, with an alleged value of $158,514.39. The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka and Aleksandrs K. Bomis of the U.S. Attorney’s Office for the Eastern District of Michigan.
Reno Dandy, a/k/a/ “RJ”, 28, of Eastpointe, Michigan; and Francina Kirk, a/k/a/ “Keisha”, 45, of Pontiac, Michigan were charged in a superseding indictment with conspiracy to possess with intent to distribute and to distribute controlled substances in connection with their roles in an unlawful scheme to distribute Schedule II and V controlled substances Oxycodone, Oxycodone-Acetaminophen (Percocet), Hydrocodone-Acetaminophen (Norco), Oxymorphone, and Promethazine with Codeine. As alleged in the indictment, medical clinics were organized and purported to operate at different locations in Southeast Michigan, including Grace Medical Clinic, PLLC (Grace). Grace was operated by Dandy and Kirk, and Dr. Chinoy was a prescriber at Grace. Dandy, Kirk, and other co-conspirators coordinated opioid controlled substance prescribing to Grace “patients” by, among other things, receiving “patient” information, loading “patient” information into Grace’s electronic prescribing platform, collecting payments from “patients” or patient recruiters/marketers, and sending electronic and other payments to Dr. Chinoy. From in or around November 2023 to on or about March 5, 2024, Dr. Chinoy electronically issued opioid controlled substance prescriptions to Grace “patients” without seeing, examining, or communicating with the “patients,” and instead Dr. Chinoy did so as directed by and based on patient information provided by Dandy, Kirk, and co-conspirators. During the conspiracy more than 400,000 dosage units of Schedule II and Schedule V controlled substances were unlawfully prescribed, which carried an estimated wholesale street value of more than $7 million. The case is being prosecuted by Assistant United States Attorneys Sarah Youngblood and Regina R. McCullough of the U.S. Attorney’s Office for the Eastern District of Michigan. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative to combat the opioid epidemic.
The civil matters included in the Takedown included settlements with the following entities and individuals:
McLaren Health Care Corporation and related entities (McLaren) of Michigan, agreed to pay a total of $1.9 million to resolve a qui tam False Claims Act lawsuit. The settlement resolves allegations that McLaren failed to timely repay overpayments from federally funded healthcare programs during the period from January 1, 2016, through June 18, 2021. The matter was handled by Assistant United States Attorney John Postulka of the U.S. Attorney’s Office for the Eastern District of Michigan.
Jason Herzog, the former CEO of Avertest, LLC, d/b/a Averhealth, a nationwide drug testing company located in Glen Allen, Virginia, reached a civil settlement to pay $150,000 to resolve allegations that in his capacity as CEO of Averhealth, he violated the False Claims Act when he knowingly submitted, or caused the submission of, false claims for payment on behalf of Averhealth to the Michigan Department of Health and Human Services, and knowingly made false statements material to those claims, concerning improper positive oral fluid drug test results. The case was settled by Assistant U.S. Attorney Anthony Gentner of the U.S. Attorney’s Office for the Eastern District of Michigan.
The cases are being prosecuted by the Health Care Fraud Section’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the District of Arizona, Central District of California, Eastern District of California, Northern District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Idaho, Northern District of Illinois, District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Western District of Michigan, Southern District of Mississippi, District of Montana, District of Nevada, District of New Hampshire, District of New Jersey, District of Nex Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Western District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Southern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Western District of Pennsylvania, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, Eastern District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices in Alaska, Arizona, Colorado, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Inidiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Montana, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virginia, Washington, and Wisconsin.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Eastern District of Michigan, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and the FBI.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mother-Daughter Duo Charged in $9.5 Million Medicare Fraud Scheme; Part of National Healthcare Fraud TakedownRead the Press Release
SAN DIEGO – A federal grand jury indictment charges a mother and daughter with conspiring to defraud Medicare by billing millions of dollars for wound care services while the mother—the licensed nurse practitioner listed as the provider—was serving time in federal prison.
The charges are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
According to the indictment, Blanca Estela Cardenas, a San Diego nurse practitioner and owner of Mobile Care Medical Providers, LLC and B&R Wound Care, Inc., and her daughter, Raquel Pasillas, allegedly carried out a scheme to bill Medicare for mobile medical services between April and October 2024.
Prosecutors allege that during that time, Cardenas was incarcerated, serving a federal sentence for an unrelated bulk cash smuggling conviction and was therefore unable to personally provide care or supervise medical services as required under Medicare regulations.
Despite her incarceration, the indictment alleges, the businesses continued submitting claims to Medicare under Cardenas’ National Provider Identifier (NPI), falsely representing that she was the rendering provider for the services.
According to prosecutors, Pasillas—who held operational leadership roles at the businesses but had no medical license or certification—personally provided medical services to Medicare beneficiaries, including wound care and the application of costly skin substitute allografts.
Over the six-month period, the defendants allegedly submitted approximately $9.5 million in claims to Medicare and received approximately $5.5 million in reimbursements.
The indictment further alleges the pair diverted fraud proceeds for personal use, including more than $4.7 million in cash withdrawals, deposits into their personal bank accounts, and rent payments for Cardenas’ residence while she remained in custody.
“Every dollar stolen through health care fraud is a dollar taken from patient care,” said U.S. Attorney Adam Gordon.
“Those who commit health care fraud cause real harm because they drain critical resources from programs meant to support some of our most vulnerable community members,” said Special Agent in Charge Mark Remily of the FBI’s San Diego Field Office. “Schemes like this undermine trust in our health care system and drive up costs for everyone. Working closely with HHS OIG and the Justice Department, the FBI will continue to pursue those who exploit federally funded programs and ensure they face the consequences of their actions.”
The charges announced today by U.S. Attorney Adam Gordon are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history.
In addition, unprecedented international cooperation over the two-week takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The case in the Southern District of California is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANTS Case Number 26cr2236
Blanca Estela Cardenas Age: 55 Chula Vista, CA
Raquel Pasillas Age: 33 Chula Vista, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C., Sec. 1349
Maximum penalty: Ten years in prison, $250,000 fine or twice the pecuniary gain or loss, whichever is greater
Health Care Fraud – Title 18, U.S.C., Sec. 1347
Maximum penalty: Ten years in prison, $250,000 fine or twice the pecuniary gain or loss, whichever is greater
INVESTIGATING AGENCIES
FBI
U.S. Department of Health and Human Services Office of Inspector General
*Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division ('Fraud Division'). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Morris County Man Who Misappropriated Confidential Documents from Girlfriend’s Employer Indicted for $2.7 Million Insider Trading SchemeRead the Press Release
NEWARK, N.J. – A Morris County man was indicted for conducting a scheme to trade on material nonpublic information (MNPI) he stole from a public relations firm where his girlfriend worked, U.S. Attorney Robert Frazer announced.
Justin Jennings, 27, of Rockaway Township was charged by indictment with one count of engaging in a securities fraud scheme, eight counts of securities fraud for insider trading, and two counts of transacting in criminal proceeds.
According to documents filed in this case and statements made in court:
Between February 2022 and October 2024, Jennings made well-timed trades in the securities of eight publicly traded companies in the days before major corporate announcements, typically announcements of mergers and acquisitions, based on MNPI. At the time of these trades, Jennings was romantically involved with an account executive at a public relations firm that was entrusted with MNPI regarding these announcements. Jennings’ profitable bets came after he gained access to confidential information, including draft press releases, from his girlfriend’s employer-issued laptop without her knowledge or permission. In total, Jennings made over $2.7 million in illegal trading profits from the scheme.
If convicted, he faces a maximum penalty of 25 years in prison on the securities fraud charge, 20 years in prison on each of the insider trading charges, and 10 years in prison on each of the transacting in criminal proceeds charges.
The U.S. Securities and Exchange Commission also filed a civil complaint against Jennings based on the same conduct.
U.S. Attorney Frazer credited special agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stefanie Roddy in Newark, New Jersey, with the investigation.
The government is represented by Assistant U.S. Attorneys Aaron Webman and Farhana C. Melo of the Economic Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
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Defense counsel: Robert G. Stahl, Esq. and Laura K. Gasiorowski, Esq., Mountainside, New Jersey.
jennings.indictment.pdfMobile Woman Sentenced to More Than One Year in Prison for Tax FraudRead the Press Release
Mobile, AL – Aylesha Maria Allen of Mobile, Alabama, was sentenced on June 22, 2026, to one year and one day in federal prison for filing fraudulent tax returns.
According to court documents, Allen, 42, prepared and assisted in preparing at least 21 false tax returns that included fraudulent Sick and Family Leave Credits related to the COVID-19 pandemic, false Schedule C business losses, and false Fuel Tax Credits. Internal Revenue Service records show that Allen’s conduct resulted in a tax loss of $371,412.
U.S. District Judge Jeffrey U. Beaverstock sentenced Allen to one year and one day in prison, followed by one year of supervised release. Allen was also ordered to pay $371,412 in restitution.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division investigates and prosecutes individuals who commit fraud against the American people. The Department’s efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government initiative chaired by Vice President J.D. Vance that seeks to eliminate fraud, waste, and abuse in federal benefit programs.
“Tax preparers who falsify returns and exploit government programs and benefits established during the COVID-19 pandemic to enrich themselves at the expense of American taxpayers can expect to be investigated and prosecuted to the fullest extent of the law,” said Sean P. Costello, United States Attorney for the Southern District of Alabama.
“As a tax preparer, Aylesha Allen had a duty to file truthful and accurate returns on behalf of her clients,” said Demetrius Hardeman, Special Agent in Charge of IRS Criminal Investigation’s Atlanta Field Office. “Individuals who abuse that responsibility by making false claims or fabricating losses undermine the integrity of our tax system. IRS Criminal Investigation and our law enforcement partners will continue to pursue these fraudsters and hold them accountable.”
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
IRS Criminal Investigations investigated the case.
Assistant U.S. Attorney S. Gaillard Ladd prosecuted the case on behalf of the United States.
Mobile County Man Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
MOBILE, Ala. – On June 22, 2026, United States Chief District Judge Jeffrey U. Beaverstock sentenced Devin Lajuan Hudson to 75 months in federal prison for cocaine trafficking and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, on August 6, 2025, a Mobile County Sheriff's Deputy conducted a traffic stop after observing Hudson commit a traffic violation. During the stop, deputies discovered that Hudson did not possess a valid driver's license. A subsequent search of the vehicle uncovered a distribution quantity of cocaine, Hydrocodone pills, Oxycodone pills, Alprazolam bars, a baby bottle containing liquid Promethazine, marijuana, two loaded handguns, and $993 in U.S. currency.
Hudson had a juvenile child in the vehicle at the time of the stop.
Following the arrest, deputies obtained and executed a search warrant at Hudson’s residence. During the search, law enforcement recovered an additional four ounces of cocaine packaged in one-ounce quantities, along with high-grade marijuana, approximately $2,000 in U.S. currency, a loaded Radical Firearms rifle, a loaded Glock 23 handgun, and a loaded MasterPiece Arms MAC-10-style 9mm handgun equipped with a suppressor and extended magazine.
The investigation revealed that Hudson possessed multiple firearms in connection with his drug trafficking activities, leading to the federal charges and subsequent conviction.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Mobile County Sheriff’s Office.
Assistant U.S. Attorney George F. May prosecuted the case on behalf of the United States.
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. Operation Take Back America streamlines efforts and resources from the Department’s Homeland Security Task Forces (HSTF) and Project Safe Neighborhood (PSN).
Mississippi Man Convicted of Drug Trafficking Conspiracy Involving Counterfeit Fentanyl PillsRead the Press Release
TUSCALOOSA, Ala. – A Mississippi man has been convicted for his involvement in a drug conspiracy, announced U.S. Attorney Phillip W. Williams Jr.
The jury returned a guilty verdict against Jabreon Deshon Mosley, 35, after 2 days of testimony before U.S. District Judge Edmund G. LaCour, Jr. Mosley was convicted of conspiracy to possess with intent to distribute methamphetamine and fentanyl and use of a communication facility (i.e., telephone) to commit a drug-trafficking crime.
Photograph admitted at trial of some pressed pills recovered from Mosley
According to evidence presented at trial, Mosley, who lived in Meridian, Mississippi, worked with co-conspirators from the Birmingham and Tuscaloosa areas, including Hanston Clark, who provided him powder fentanyl and methamphetamine. Mosely would press the powders into pill form for distribution in the Birmingham and Tuscaloosa areas. During a search warrant, Mosley was found in possession of over 65,000 pressed pills, many of which resembled prescription drugs or candy but, in fact, contained fentanyl or methamphetamine. Mosley also possessed two pill presses which he used to convert the powder into pills, along with several dies used to create counterfeit pills and disguise their true nature. Evidence at trial also showed that agents intercepted Mosley and Clark discussing their drug operation over a court-authorized wiretap on multiple occasions.
Hanston Alexander Clark, aka “Hank”, 34, of Tuscaloosa, Alabama, pleaded guilty in December 2025 to conspiracy to possess with the intent to distribute methamphetamine and fentanyl. The court sentenced Clark to 121 months in prison.
“This conviction sends a clear message that those who manufacture and distribute counterfeit pills laced with dangerous drugs will be held accountable. The drugs fuel addiction, devastate families, and too often result in tragic loss of life,” said U.S. Attorney Phillip W. Williams Jr. “I commend the dedicated collaboration of our law enforcement partners in Alabama and Mississippi in bringing these defendants to justice.”
“Counterfeit fentanyl pills are poison in disguise. Thanks to the dedicated work and coordination of our federal, state, and local law enforcement partners, the perpetrators were brought to justice, and more than 65,000 of these pills were seized before they could wreak havoc on our Birmingham and Tuscaloosa communities,” said Assistant United States Attorney Allison Garnett.
“The manufacture of counterfeit pills disguised as legitimate prescription medication or candy is a direct threat to our communities,” said DEA Special Agent in Charge John P. Scott, New Orleans Field Division. “This individual’s operation was built on deception and greed. He was willing to flood our streets with lethal doses of fentanyl and methamphetamine. By dismantling this organization and seizing over 65,000 pressed pills, the DEA and our Homeland Security Task Force partners have undoubtedly saved lives in Alabama and Mississippi. We remain relentless in our mission to pursue and prosecute those who traffic in this poison.”
Photograph admitted at trial of Automatic Pill Press and Fentanyl Powder found at Mosley’s Residence
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. 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. The Alabama HSTF comprises agents and officers from the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation, the United States Marshals Service (USMS), and the Internal Revenue Service. In the Northern District of Alabama, prosecutions are led by the United States Attorney’s Office for the Northern District of Alabama.
The DEA investigated the case, with assistance from the West Alabama Narcotics Task Force; the Mississippi Bureau of Narcotics; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Tuscaloosa Police Department; the United States Secret Service; and the Mississippi Attorney General’s Office. Assistant U.S. Attorneys Allison J. Garnett, Ryan S. Rummage, and Brittany T. Byrd are prosecuting the case.
Minneapolis Man Sentenced for Aiding and Abetting Violent CarjackingRead the Press Release
MINNEAPOLIS – On June 16, 2026, a Minneapolis man was sentenced to 90 months’ imprisonment after pleading guilty to aiding and abetting a violent carjacking that resulted in serious bodily injury to one of the victims, announced U.S. Attorney Daniel N. Rosen.
According to court documents, on August 24, 2024, Havion Eddie Amaru Holmes, 24, and another male approached a parked vehicle occupied by a woman and a man in Minneapolis. The two men approached the vehicle, one on the driver’s side and the other on the passenger’s side, each armed with a handgun. Both victims were pulled from the vehicle, and the other male pointed his firearm at them. Both victims were struck with a firearm, the man in the neck and in the back, and the woman twice in the head and then in the nose. Holmes and the other man then entered the vehicle and drove away.
Minutes later, law enforcement spotted the vehicle and attempted to pull it over, but Holmes and the other man fled, leading officers on a high-speed pursuit through a residential area before crashing into another car. Both men fled the scene on foot. Officers apprehended Holmes shortly afterward, discovering a tool and screwdriver on his person. The two handguns used in the carjacking were located nearby, in Holmes’ flight path the crash site which were described as the handguns used during the carjacking.
This case is the result of an investigation by the Minneapolis Police Department and the FBI.
Special Assistant U.S. Attorney Jeanne Semivan is prosecuting the case.
Minneapolis Father and Son Indicted in Fraud ConspiracyRead the Press Release
MINNEAPOLIS – U.S. Attorney Daniel N. Rosen announced today the unsealing of an indictment on June 11, 2026, charging a father and son with conspiracy to defraud the United States and making false claims for tax refunds. The father was also charged with felon in possession of a firearm.
According to court documents and proceedings, between approximately June 2022 and October 2024, LaMar Javis Burgess, 44, and his son, LaMar Dazjar Burgess, 23, of the Minneapolis area, prepared and filed false federal income tax returns for themselves and others claiming refund amounts they and the other taxpayers were not entitled to receive. Tax returns containing millions of dollars in false claims were allegedly filed by the conspirators.
During the course of the conspiracy, LaMar Javis Burgess allegedly sought and obtained videos and instruction manuals educating himself on how to file false federal tax returns, including a guide titled “TurboTax Sauce the ‘Self-Employed’ Way.” He worked with his son and other conspirators to promote the tax fraud scheme. In exchange for filing false tax returns, he allegedly charged taxpayers a portion of their tax refunds as his fee.
The defendants allegedly solicited others to provide them with their names, addresses, social security numbers, photographic identification, and bank account information to prepare and file the false tax returns. The returns allegedly included employment and tax credit information they knew to be false.
The defendants allegedly prepared and filed false 2021 tax returns claiming refundable sick and family leave tax credits available to certain self-employed individuals unable to work due to COVID-19. They also allegedly prepared and filed false 2022 tax returns claiming certain refundable tax credits.
LaMar Javis Burgess allegedly was also found in possession of a Glock model 19, 9 mm semi-automatic handgun.
LaMar Javis Burgess has prior convictions in Hennepin County for illegally possessing a firearm as a person who is prohibited from having one and fourth degree assault of a peace officer. He also has a prior felony conviction in the District of Minnesota for felon in possession of a firearm. According to the indictment, because of these prior convictions, LaMar Javis Burgess is prohibited under federal law from possessing firearms or ammunition at any time.
LaMar Javis Burgess and LaMar Dazjar Burgess were both charged with one count each of conspiracy to defraud the United States and six counts each of making false claims. LaMar Javis Burgess was also charged with one count of being a felon in possession of a firearm. If convicted, they face maximum penalties of ten years in prison for conspiracy and five years in prison for each count of making false claims. LaMar Javis Burgess also faces a maximum penalty of 15 years in prison for felon in possession of a firearm.
The Court ordered LaMar Javis Burgess detained in federal custody pending trial, following his initial appearance and detention hearing.
“Fraud against the United States is a serious offense and those who fabricate returns or misuse information to enrich themselves will be held accountable. Our office remains committed to safeguarding the integrity of federal tax programs and protecting the public from those who seek to exploit them,” said U.S. Attorney Daniel N. Rosen.
“This father and son duo turned filing fraudulent tax returns into a family business,” said Adam Jobes, Special Agent in Charge, IRS Criminal Investigation, Chicago Field Office. “False refund claims steal from every honest taxpayer who follows the law and pays their fair share. IRS-CI special agents will continue using their expertise in forensic accounting to expose tax fraud schemes and bring fraudulent tax preparers to justice.”
IRS Criminal Investigation is investigating the case, with assistance from FBI, HSI, ATF, Minneapolis Police Department, Fridley Police Department, Ramsey County Sheriff’s Office, and Hennepin County Sheriff’s Office.
Trial Attorney J. Parker Gochenour of the Criminal Division’s Tax Section and Assistant U.S. Attorney Rebecca Kline of the District of Minnesota are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. 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.
Middletown Man Pleads Guilty to Operating Unlawful Money Transmitting BusinessRead the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, and P.J. O’Brien, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that HABROON HABIB, 30, a citizen of Pakistan and lawful permanent resident of the U.S. residing in Middletown, waived his right to be indicted and pleaded guilty yesterday in Bridgeport federal court to operating an unlawful money transmitting business.
According to court documents and statements made in court, in January 2025, Habib registered “Around The World Solutions LLC” with the State of Connecticut and rented shared commercial office space at 386 Main Street in Middletown. In February 2025, Habib opened a bank account for Around The World. Shortly thereafter, Around The World Solutions began to submit fraudulent claims to Medicare Advantage (also known as “Medicare Part C”) plans in Connecticut for durable medical equipment, including orthotics and braces, that Medicare beneficiaries did not ask for, consent to, or receive. The claims were submitted by an individual in Pakistan.
Between March 12, 2025, and May 14, 2025, a total of approximately $680,571.28 in payments from Medicare Advantage plans operated by private insurers were deposited into Around The World Solutions’ bank account, based on fraudulent claims for orthotics purportedly provided to approximately 413 Medicare beneficiaries residing in 36 states. None of the Medicare beneficiaries resided in Connecticut. Payments for some of the claims were stopped by the Medicare Advantage programs when they discovered the fraud. The total amount of fraudulent claims Around The World Solutions submitted to Medicare Advantage plans was approximately $1,901,200.
Habib sent a total of 14 wire transfers totaling $425,000 from the Around the World Solutions bank account to bank accounts located in Pakistan. At no time were Habib or Around The World Solutions licensed by the Connecticut Department of Banking to engage in the business of money transmission in Connecticut. Under Connecticut state law, knowingly engaging in the business of money transmission in the State of Connecticut without obtaining a license is a class D felony, and engaging in unlicensed money transmitting without a state license is a violation of federal law.
Habib was arrested on a federal criminal complaint on August 24, 2025, shortly after federal investigators learned that he was scheduled to fly, using a one-way ticket, from JFK Airport to Pakistan the following day.
Habib is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on September 8, at which time Habib faces a maximum term of imprisonment of five years. He is released on a $50,000 bond pending sentencing.
This investigation was conducted by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
This announcement is part of the Department of Justice’s 2026 National Health Care Fraud Takedown, a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death.
Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Justice Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme.
The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Mexican Identity Thief Pleads Guilty to Passport Fraud, Theft of Government FundsRead the Press Release
HARRISONBURG, Va. – An immigrant from Mexico, who lied about her identity for more than 30 years to obtain immigration documents and other benefits, pled guilty to a pair of federal charges.
Candy Lazo, a.k.a. “Candida Jimenez Lazo” a.k.a. “Natalia Perez de Cruz” a.k.a. “Natalia Perez,” 53, pled guilty to one count of passport fraud and one count of theft of government funds.
According to court documents, the defendant was born Candia Jimenez Lazo in 1973 in Oaxaca, Mexico. However, beginning at least as early 1993, Lazo began impersonating a Mexican woman named Natalia Perez de Cruz, whom she knew as the former spouse of her ex-husband.
Lazo used the victim’s name and date of birth to obtain a U.S. visa in April 1993, according to the statement of facts filed in the case. She went on to use the victim’s identity on applications to procure various U.S. government benefits between 2011 and 2024, including: naturalization and U.S. citizenship, U.S. passports and passport cards, driver’s licenses, and REAL ID Act-compliant documents.
Further, Lazo used the Social Security number she obtained by impersonating the victim to apply for Social Security Administration disability benefits. By stealing the victim’s date of birth, Lazo effectively raised her age by approximately eight years, allowing her to fraudulently receive over $89,340 in disability benefits to which she was not entitled.
First Assistant United States Attorney Robert N. Tracci, Special Agent in Charge David Richeson of the Department of State- Bureau of Diplomatic Security, Special Agent in Charge Michael McGill of the Social Security Administration- Office of the Inspector General, and Special Agent in Charge Eric Weindorf of Homeland Security Investigations Washington, D.C. made the announcement.
Special Assistant U.S. Attorney Christopher Browne is prosecuting the case.
Massachusetts Man Charged in $5 Million Medicare Fraud Scheme as Part of National Health Care Fraud TakedownRead the Press Release
BOSTON – A Stoughton, Mass., man has been charged in connection with an alleged scheme to defraud Medicare of over $5 million by submitting claims for durable medical equipment (DME) that was medically unnecessary and tainted by kickbacks. The charges filed today in federal court in Boston are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
The charges announced today by U.S. Attorney Leah B. Foley are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services to suspend 1,079 providers and revoke billing privileges for 1,403 providers;
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers;
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million; and
- 928 administrative cases by the Drug Enforcement Administration seeking the revocation of authority to handle and/or prescribe controlled substances since Oct. 1, 2025.
Bhamin Chhatrapati, 40, of Stoughton, Mass., was charged with conspiracy to commit health care fraud in connection with over $5.1 million fraudulently billed to Medicare, of which over $2.6 million was paid. It is alleged that from approximately February 2023 through in or around September 2024, Chhatrapati and co-conspirators conspired to commit health care fraud by: working with telemarketers or call centers to obtain medical information from or about Medicare beneficiaries; using that information to prepare medical documentation for Medicare beneficiaries that made it appear that medical practitioners had legitimately prescribed medically necessary DME; submitting fraudulent claims to Medicare for orders for DME; receiving reimbursement from Medicare for these DME orders; and paying the telemarketers per brace order approved by Medicare.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
This case is being prosecuted by Assistant U.S. Attorneys Sarah Hoefle and Lauren Graber of the U.S. Attorney’s Office for the District of Massachusetts’ Criminal Division.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The District of Massachusetts worked with the Department’s Health Care Fraud Unit of the Fraud Division as well as the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation.
On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. The Team is led by two senior federal prosecutors serving as Fraud Coordinators, whose mission it is to aggressively investigate and prosecute misuse of taxpayer-funded benefits in Massachusetts.
Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
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.
Leader of Antifa Cell Members in North Texas Sentenced to 100 Years in Prison for Terrorist Attack on ICE FacilityRead the Press Release
Leader of Antifa Cell Members in North Texas Sentenced to 100 Years in Prison for Terrorist Attack on ICE Facility
Seven Additional Defendants Also Sentenced Before One-Year Anniversary of Attack to a Combined 450 Years in Prison
Today, before the one-year anniversary of their attack, eight North Texas Antifa Cell operatives were sentenced for their roles in rioting, using weapons and explosives, providing material support to terrorists, obstruction, and the attempted murder of an Alvarado police officer at the Prairieland Detention Center on July 4, 2025, announced United States Attorney for the Northern District of Texas Ryan Raybould.
This is the first sentencing of defendants affiliated with Antifa following President Donald J. Trump’s executive order designating the group as a Domestic Terrorist Organization in September 2025.
Benjamin Hanil Song, who was convicted of the attempted murder of a law enforcement officer, was sentenced to 100 years in prison. Together, the Prairieland terrorists received a combined sentence of 450 years in prison:
- Maricela Rueda was sentenced to 70 years in prison;
- Cameron Arnold was sentenced to 50 years in prison;
- Savanna Batten was sentenced to 50 years in prison;
- Zachary Evetts was sentenced to 50 years in prison;
- Bradford Morris was sentenced to 50 years in prison;
- Elizabeth Soto was sentenced to 50 years in prison; and
- Daniel Rolando Sanchez-Estrada was sentenced to 30 years in prison.
“The sentences handed down today make clear that Antifa terrorists who attack law enforcement and federal facilities will face swift and uncompromising justice,” said Acting Attorney General Todd Blanche. “Their violent extremism has no place in our country, and the Department of Justice will continue to aggressively investigate, disrupt, and prosecute those who threaten law enforcement officers or undermine the rule of law.”
“These sentences justly punish the vicious, armed attack that these Antifa cell members planned and executed against law enforcement and detention center officers on the night of July 4th last year,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “Their terrorist acts, attempted murder, vandalism, and explosives launched at a detention facility were a far cry from a peaceful protest or First Amendment expression. Because of the prompt action of first responders that night and tenacious work of our law enforcement partners, in tandem with the prosecutors in my office, eight people have been rightly punished for these violent acts and their attempts to conceal them. We will continue in this mission to hold others accountable who perpetrate such violence and fund these ANTIFA groups in the Northern District of Texas.”
“Today’s sentencings show the FBI remains committed to identifying, locating, and dismantling Antifa and its funding networks across the country,” said FBI Director Kash Patel. “Acts of violence against our law enforcement partners will not be tolerated, and we continue our work to protect communities across the country from domestic terrorism.”
“The sentences handed down today send an unmistakable message: Attacks on federal officers and facilities will not be tolerated. The men and women of ICE serve with integrity and courage, often in challenging and dangerous environments. The calculated violence carried out by these Antifa cell members at Prairieland was an assault on law enforcement and an attack on the rule of law itself,” said Acting ICE Director David J. Venturella. “Nearly one year after this cowardly act, justice has prevailed. ICE will continue to stand firm against those who threaten our officers, our facilities and our mission.”
The sentences follow a 12-day trial that began on Feb. 23, where jurors heard testimony from 46 witnesses and considered over 210 exhibits supporting the charges against nine indicted defendants: Cameron Arnold, also known as Autumn Hill; Zachary Evetts; Benjamin Song; Savanna Batten; Bradford Morris, also known as Meagan Morris; Maricela Rueda; Elizabeth Soto; Ines Soto; and Daniel Rolando Sanchez-Estrada. All were convicted. Ines Soto was granted a continuance and will be sentenced on July 1.
Seven others, Seth Sikes, Nathan Baumann, Joy Gibson, Susan Kent, Rebecca Morgan, Lynette Sharp, and John Thomas, pleaded guilty prior to trial to one count of providing material support to terrorists and they will be sentenced on July 1.
Testimony and other evidence at trial established that the defendants were members of a North Texas Antifa Cell, part of a larger militant enterprise made up of networks of individuals and small groups primarily ascribing to an ideology that explicitly calls for the overthrow of the United States Government, law enforcement authorities, and the system of law. An expert testifying in the government’s case told the jury that ANTIFA’s coordinated efforts involve obstructing Federal law through organized riots, violent assaults, and armed confrontations with law enforcement officers, increasingly targeting agents and facilities related to the U.S. Department of Homeland Security’s Immigration and Customs Enforcement in opposition to the agency’s deportation actions.
Evidence at trial revealed that most of the ANTIFA Cell involved in the Prairieland attack looked to Benjamin Song as a leader. Song acquired firearms that he distributed to co-defendants and recruited members at gun ranges and combat sessions he conducted, as well as from various ideologically aligned groups. For example, defendants Ines Soto, Elizabeth Soto, and Savanna Batten were part of a group that created and distributed insurrectionary materials called “zines,” according to trial evidence.
Trial testimony reflected that, late at night on July 4, 2025, at least eleven of the defendants rioted and attacked the Prairieland Detention Center in Alvarado, Texas, which the U.S. Department of Homeland Security was using to house illegal aliens awaiting deportation. The defendants dressed in “black bloc”—dark clothing with head and face coverings that concealed their identities—designed to hide each individual’s identity but also to aid and abet those members engaged in illegal acts by making members indistinguishable from one another to law enforcement. Evidence introduced at trial revealed that the defendants brought eleven firearms, body armor, and eleven military-grade first aid kits with tourniquets and other items to treat gunshot wounds to the scene of the attack. Many of these items were introduced by the government as exhibits. Additionally, DNA and fingerprint evidence linked many of the defendants to the items at the scene, and evidence obtained on phone locations supported that those who participated in the attack all turned off their phones or placed them in Faraday bags to prevent tracking on the night of the attack.
After ANTIFA Cell members arrived at the detention facility, they began shooting off and throwing fireworks (explosives) at the facility and vandalizing vehicles and a guard shack on Prairieland property:
Witnesses testified that an Alvarado police officer responded to the scene after correctional officers called 911. When the officer began issuing commands to defendant Nathan Baumann, Benjamin Song can be heard on police bodycam video yelling, “get to the rifles!” and then he opened fire on the officers, striking the Alvarado police officer in the neck as the unarmed correctional officers ducked and ran for cover. Police arrested most of the Antifa Cell shortly after the attack, many near the scene. Benjamin Song escaped and remained at large with the help of others until his capture on July 15, 2025.
Trial evidence demonstrated that collectively, this ANTIFA Cell acquired over 50 firearms in the Fort Worth/Dallas area prior to July 4. During trial, the government introduced numerous chats of the members, who used an encrypted messaging app to coordinate with each other that had auto-delete functions, permanently deleting some Antifa Cell members’ communications. They also used monikers in group chats to hide their identities, and some of the planning chats included only trusted participants. The chats introduced at trial revealed that members in this limited group conducted reconnaissance and discussed what to bring to the riot, including firearms, medical kits, and fireworks:
Witnesses who testified during the government’s case included the Alvarado police officer who was shot in the neck by Song, detention officers present that night who also took cover from rapid fire, multiple additional responding officers, numerous investigative agents, and cooperating codefendants, including Baumann, Sharp, Thomas, and Kent. Among other things, Kent testified that the night before the attack at a “gear check,” Song proposed to free the detainees at the Prairieland detention facility and told the group that they should wear “black bloc” and bring rifles, because he (Song) wasn’t going to be arrested. Evidence at trial also revealed that some of the defendants attended a peaceful daytime protest at Prairieland on July 4—without the gear they brought that night—and that they reported back to other defendants details regarding security at the facility:
The sentences of the eight defendants were for the following offenses:
- Riot, with the intent to commit an act of violence, involving conduct such as shooting and throwing fireworks and explosives, slashing tires on a government vehicle, spraying graffiti on property and vehicles, destroying a closed-circuit camera, shooting at officers, and dressing in black bloc.
- Defendants convicted: Cameron Arnold, Zachary Evetts, Benjamin Song, Savanna Batten, Bradford Morris, Maricela Rueda, Elizabeth Soto, and Ines Soto
- Providing Material Support to Terrorists, including property, services, training, communications equipment, weapons, explosives, personnel (including themselves), and transportation.
- Defendants convicted: Arnold, Evetts, Song, Batten, Morris, Rueda, E. Soto, and I. Soto
- Conspiracy to Use and Carry an Explosive, and Using and Carrying an Explosive, during a riot.
- Defendants convicted: Arnold, Evetts, Song, Batten, Morris, Rueda, E. Soto, and I. Soto
- Attempted Murder of Officers and Employees of the United States, involving the unlawful attempt to kill with malice aforethought an Alvarado Police Officer who was assisting federal officers/agents.
- Defendant convicted: Song
- Discharging a Firearm During, and in Relation to, and in Furtherance of a Crime of Violence, i.e., the attempted murder of two correctional officers and an Alvarado Police Officer.
- Defendant convicted: Song
- Corruptly Concealing a Document or Record, by transporting a box containing numerous Antifa materials, such as insurrection planning, anti-law enforcement, anti-government, and anti-immigration enforcement documents and propaganda from Sanchez Estrada’s residence to a location in Denton, Texas, intending to conceal the box’s contents and impair its availability for use in a federal grand jury and federal criminal proceeding.
- Defendant convicted: Daniel Rolando Sanchez Estrada
- Conspiracy to Conceal Documents and other objects that would implicate Maricela Rueda in the riot and shooting at the Prairieland facility.
- Defendants convicted: Sanchez Estrada and Maricela Rueda
Defendants Song, Morris, Rueda, and E. Soto were sentenced by U.S. District Court Judge Mark T. Pittman for the Northern District of Texas. When imposing the sentences, Judge Pittman said, “It’s by the grace of God that Song is not dead. He managed to get 11 shots in seconds; then the officer shooting blindly happened to hit the magazine well of Song’s rifle. Mr. Song’s lucky he isn’t dead. We had a guardian angel that ensured that Mr. Song isn’t dead, and we don’t have several deceased people at Prairieland.”
Defendants Arnold, Evetts, Batten, and Sanchez-Estrada were sentenced by Chief U.S. District Court Judge Reed O’ Connor for the Northern District of Texas. When imposing the sentences, Chief Judge O’ Connor said, “The defendants’ violence and terrorism is an assault on Democracy. The defendants’ planning, staging, and execution of the attack led to the attempted murder of an officer who ironically is not even involved in enforcing immigration law.”
The sole count of providing material support to terrorists brought in the information against Baumann, Gibson, Kent, Morgan, Sharp, Thomas, and separately, Sikes’s information, mirrors the material support offense in the charges presented to the jury at trial. Each of these defendants face a sentence of up to fifteen years in federal prison and will be sentenced on July 1, 2026.
The investigation was conducted by the FBI Dallas Field Office, Homeland Security Investigations Dallas, ATF, the Texas Department of Public Safety, the Alvarado Police Department, and the Johnson County Sheriff’s Office, with assistance from Immigration and Customs Enforcement’s Enforcement and Removal Office (ICE ERO).
Assistant U.S. Attorneys Frank Gatto, Shawn Smith, and Matt Capoccia for the Northern District of Texas are prosecuting the case.
Leader of Antifa Cell Members in North Texas Sentenced to 100 Years in Prison for Terrorist Attack on ICE FacilityRead the Press Release
Today, the Justice Department announced that eight North Texas Antifa Cell operatives were sentenced for their roles in rioting, using weapons and explosives, providing material support to terrorists, obstruction, and the attempted murder of an Alvarado police officer at the Prairieland Detention Center on July 4, 2025. This is the first sentencing of defendants affiliated with Antifa following President Donald J. Trump’s executive order designating the group as a Domestic Terrorist Organization in September 2025.
Benjamin Hanil Song, who was convicted of the attempted murder of a law enforcement officer, was sentenced to 100 years in prison. Together, the Prairieland terrorists received a combined sentence of 450 years in prison:
- Maricela Rueda was sentenced to 70 years in prison;
- Cameron Arnold was sentenced to 50 years in prison;
- Savanna Batten was sentenced to 50 years in prison;
- Zachary Evetts was sentenced to 50 years in prison;
- Bradford Morris was sentenced to 50 years in prison;
- Elizabeth Soto was sentenced to 50 years in prison; and
- Daniel Rolando Sanchez-Estrada was sentenced to 30 years in prison.
“The sentences handed down today make clear that Antifa terrorists who attack law enforcement and federal facilities will face swift and uncompromising justice,” said Acting Attorney General Todd Blanche. “Their violent extremism has no place in our country, and the Department of Justice will continue to aggressively investigate, disrupt, and prosecute those who threaten law enforcement officers or undermine the rule of law.”
“Today’s sentencings show the FBI remains committed to identifying, locating, and dismantling Antifa and its funding networks across the country,” said FBI Director Kash Patel. “Acts of violence against our law enforcement partners will not be tolerated, and we continue our work to protect communities across the country from domestic terrorism.”
“These sentences justly punish the vicious, armed attack that these Antifa cell members planned and executed against law enforcement and detention center officers on the night of July 4th last year,” said U.S. Attorney Ryan Raybould for the Northern District of Texas. “Their terrorist acts, attempted murder, vandalism, and explosives launched at a detention facility were a far cry from a peaceful protest or First Amendment expression. Because of the prompt action of first responders that night and tenacious work of our law enforcement partners, in tandem with the prosecutors in my office, eight people have been rightly punished for these violent acts and their attempts to conceal them. We will continue in this mission to hold others accountable who perpetrate such violence and fund these ANTIFA groups in the Northern District of Texas.”
“The sentences handed down today send an unmistakable message: Attacks on federal officers and facilities will not be tolerated. The men and women of ICE serve with integrity and courage, often in challenging and dangerous environments. The calculated violence carried out by these Antifa cell members at Prairieland was an assault on law enforcement and an attack on the rule of law itself,” said Acting ICE Director David J. Venturella. “Nearly one year after this cowardly act, justice has prevailed. ICE will continue to stand firm against those who threaten our officers, our facilities and our mission.”
The sentences follow a 12-day trial that began on Feb. 23, where jurors heard testimony from 46 witnesses and considered over 210 exhibits supporting the charges against nine indicted defendants: Cameron Arnold, also known as Autumn Hill; Zachary Evetts; Benjamin Song; Savanna Batten; Bradford Morris, also known as Meagan Morris; Maricela Rueda; Elizabeth Soto; Ines Soto; and Daniel Rolando Sanchez-Estrada. All were convicted. Ines Soto was granted a continuance and will be sentenced on July 1.
Seven others, Seth Sikes, Nathan Baumann, Joy Gibson, Susan Kent, Rebecca Morgan, Lynette Sharp, and John Thomas, pleaded guilty prior to trial to one count of providing material support to terrorists and they will be sentenced on July 1.
Testimony and other evidence at trial established that the defendants were members of a North Texas Antifa Cell, part of a larger militant enterprise made up of networks of individuals and small groups primarily ascribing to an ideology that explicitly calls for the overthrow of the United States Government, law enforcement authorities, and the system of law. An expert testifying in the government’s case told the jury that ANTIFA’s coordinated efforts involve obstructing Federal law through organized riots, violent assaults, and armed confrontations with law enforcement officers, increasingly targeting agents and facilities related to the U.S. Department of Homeland Security’s Immigration and Customs Enforcement in opposition to the agency’s deportation actions.
Evidence at trial revealed that most of the ANTIFA Cell involved in the Prairieland attack looked to Benjamin Song as a leader. Song acquired firearms that he distributed to co-defendants and recruited members at gun ranges and combat sessions he conducted, as well as from various ideologically aligned groups. For example, defendants Ines Soto, Elizabeth Soto, and Savanna Batten were part of a group that created and distributed insurrectionary materials called “zines,” according to trial evidence.
Trial testimony reflected that, late at night on July 4, 2025, at least eleven of the defendants rioted and attacked the Prairieland Detention Center in Alvarado, Texas, which the U.S. Department of Homeland Security was using to house illegal aliens awaiting deportation. The defendants dressed in “black bloc”—dark clothing with head and face coverings that concealed their identities—designed to hide each individual’s identity but also to aid and abet those members engaged in illegal acts by making members indistinguishable from one another to law enforcement. Evidence introduced at trial revealed that the defendants brought eleven firearms, body armor, and eleven military-grade first aid kits with tourniquets and other items to treat gunshot wounds to the scene of the attack. Many of these items were introduced by the government as exhibits. Additionally, DNA and fingerprint evidence linked many of the defendants to the items at the scene, and evidence obtained on phone locations supported that those who participated in the attack all turned off their phones or placed them in Faraday bags to prevent tracking on the night of the attack.
After ANTIFA Cell members arrived at the detention facility, they began shooting off and throwing fireworks (explosives) at the facility and vandalizing vehicles and a guard shack on Prairieland property:
Exploding fireworks (explosives) thrown at the Prairieland facility by Antifa Cell members, captured by surveillance cameras. Antifa Cell members’ vandalism at Prairieland, including graffiti on a guard building, punctured tires of a facility van, and broken facility surveillance camera.Witnesses testified that an Alvarado police officer responded to the scene after correctional officers called 911. When the officer began issuing commands to defendant Nathan Baumann, Benjamin Song can be heard on police bodycam video yelling, “get to the rifles!” and then he opened fire on the officers, striking the Alvarado police officer in the neck as the unarmed correctional officers ducked and ran for cover. Police arrested most of the Antifa Cell shortly after the attack, many near the scene. Benjamin Song escaped and remained at large with the help of others until his capture on July 15, 2025.
Trial evidence demonstrated that collectively, this ANTIFA Cell acquired over 50 firearms in the Fort Worth/Dallas area prior to July 4. During trial, the government introduced numerous chats of the members, who used an encrypted messaging app to coordinate with each other that had auto-delete functions, permanently deleting some Antifa Cell members’ communications. They also used monikers in group chats to hide their identities, and some of the planning chats included only trusted participants. The chats introduced at trial revealed that members in this limited group conducted reconnaissance and discussed what to bring to the riot, including firearms, medical kits, and fireworks:
Chats between Song (“Champagne”) and Evetts (“Jon ValJon”) the day before the attack. Chats between Song and Rueda (“Mal Criada”) just before the attack. Files stored on Evetts’s phone listing Antifa tactics strikingly similar to the defendants’ tactics.Witnesses who testified during the government’s case included the Alvarado police officer who was shot in the neck by Song, detention officers present that night who also took cover from rapid fire, multiple additional responding officers, numerous investigative agents, and cooperating codefendants, including Baumann, Sharp, Thomas, and Kent. Among other things, Kent testified that the night before the attack at a “gear check,” Song proposed to free the detainees at the Prairieland detention facility and told the group that they should wear “black bloc” and bring rifles, because he (Song) wasn’t going to be arrested. Evidence at trial also revealed that some of the defendants attended a peaceful daytime protest at Prairieland on July 4—without the gear they brought that night—and that they reported back to other defendants details regarding security at the facility:
Message from Evetts to other defendants about Prairieland security.The sentences of the eight defendants were for the following offenses:
- Riot, with the intent to commit an act of violence, involving conduct such as shooting and throwing fireworks and explosives, slashing tires on a government vehicle, spraying graffiti on property and vehicles, destroying a closed circuit camera, shooting at officers, and dressing in black bloc.
- Defendants convicted: Cameron Arnold, Zachary Evetts, Benjamin Song, Savanna Batten, Bradford Morris, Maricela Rueda, Elizabeth Soto, and Ines Soto
- Providing Material Support to Terrorists, including property, services, training, communications equipment, weapons, explosives, personnel (including themselves), and transportation.
- Defendants convicted: Arnold, Evetts, Song, Batten, Morris, Rueda, E. Soto, and I. Soto
- Conspiracy to Use and Carry an Explosive, and Using and Carrying an Explosive, during a riot.
- Defendants convicted: Arnold, Evetts, Song, Batten, Morris, Rueda, E. Soto, and I. Soto
- Attempted Murder of Officers and Employees of the United States, involving the unlawful attempt to kill with malice aforethought an Alvarado Police Officer who was assisting federal officers/agents.
- Defendant convicted: Song
- Discharging a Firearm During, and in Relation to, and in Furtherance of a Crime of Violence, i.e., the attempted murder of two correctional officers and an Alvarado Police Officer.
- Defendant convicted: Song
- Corruptly Concealing a Document or Record, by transporting a box containing numerous Antifa materials, such as insurrection planning, anti-law enforcement, anti-government, and anti-immigration enforcement documents and propaganda from Sanchez Estrada’s residence to a location in Denton, Texas, intending to conceal the box’s contents and impair its availability for use in a federal grand jury and federal criminal proceeding.
- Defendant convicted: Daniel Rolando Sanchez Estrada
- Conspiracy to Conceal Documents and other objects that would implicate Maricela Rueda in the riot and shooting at the Prairieland facility.
- Defendants convicted: Sanchez Estrada and Maricela Rueda
Defendants Song, Morris, Rueda, and E. Soto were sentenced by U.S. District Court Judge Mark T. Pittman for the Northern District of Texas. When imposing the sentences, Judge Pittman said, “It’s by the grace of God that Song is not dead. He managed to get 11 shots in seconds; then the officer shooting blindly happened to hit the magazine well of Song’s rifle. Mr. Song’s lucky he isn’t dead. We had a guardian angel that ensured that Mr. Song isn’t dead, and we don’t have several deceased people at Prairieland.”
Defendants Arnold, Evetts, Batten, and Sanchez-Estrada were sentenced by Chief U.S. District Court Judge Reed O’ Connor for the Northern District of Texas. When imposing the sentences, Chief Judge O’ Connor said, “The defendants’ violence and terrorism is an assault on Democracy. The defendants’ planning, staging, and execution of the attack led to the attempted murder of an officer who ironically is not even involved in enforcing immigration law.”
The sole count of providing material support to terrorists brought in the information against Baumann, Gibson, Kent, Morgan, Sharp, Thomas, and separately, Sikes’s information, mirrors the material support offense in the charges presented to the jury at trial. Each of these defendants face a sentence of up to fifteen years in federal prison and will be sentenced on July 1, 2026.
The investigation was conducted by the FBI Dallas Field Office, Homeland Security Investigations Dallas, ATF, the Texas Department of Public Safety, the Alvarado Police Department, and the Johnson County Sheriff’s Office, with assistance from Immigration and Customs Enforcement’s Enforcement and Removal Office (ICE ERO).
Assistant U.S. Attorneys Frank Gatto, Shawn Smith, and Matt Capoccia for the Northern District of Texas are prosecuting the case.
Latham Taxi Operators and Employees Charged in $660,000 Medicaid Fraud and Kickback SchemeRead the Press Release
ALBANY, NEW YORK – A federal grand jury has returned a superseding indictment charging Muhammad Zishan, a/k/a “Sean,” a/k/a “Shaun,” a/k/a “Shawn,” age 48, of Albany County, New York; Madiha Javed, a/k/a “Maddie,” age 34, of Rensselaer County, New York; and Ghazali Shaikh, age 20, of Warren County, New York, with conspiracy to commit health care fraud and wire fraud and conspiracy to pay health care kickbacks in connection with Medicaid transportation services. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
The announcement was made by First Assistant United States Attorney John A. Sarcone III, Federal Bureau of Investigation (FBI) Special Agent in Charge Craig L. Tremaroli, U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Naomi Gruchacz, and New York State Comptroller Thomas P. DiNapoli. This prosecution is part of the Trump Administration’s Task Force to Eliminate Fraud.
“The superseding indictment alleges a scheme grounded in false claims, illegal kickbacks, and inducements used to generate Medicaid reimbursements,” said First Assistant United States Attorney John A. Sarcone III. “If proven, the conduct reflects a deliberate effort to drain public funds through fraud and to distort a program designed to serve those in need across New York. My office will continue to target those who weaponize federally funded health care systems for private gain and to safeguard taxpayer dollars from abuse.”
“HHS-OIG works tirelessly with our law enforcement partners to ensure that individuals are held accountable if they attempt to exploit federal health care programs for their own greed,” stated Special Agent in Charge Naomi Gruchacz with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “It is alleged in this case that the defendants offered illegal kickbacks and billed Medicaid improperly for millions of dollars, which can affect the availability of funds and services for others and drive up the cost of taxpayer-funded health care.”
FBI Special Agent in Charge Craig L. Tremaroli said, “The allegations against these defendants are infuriating. Vital government programs like Medicaid are designed to help people access the care they need. They are not designed so criminals can extort taxpayer dollars and line their own pockets. The FBI will continue to work with our partners to investigate and bring to justice any criminal looking to defraud our invaluable government programs.”
According to the superseding indictment, between approximately January 2020 and February 2025, the defendants operated and were associated with Latham Taxi Inc., a Medicaid-enrolled transportation provider. Medicaid is a federal and state health care program that reimburses providers for medically necessary services, including non-emergency transportation to medical appointments.
The superseding indictment alleges that the defendants engaged in a scheme to defraud Medicaid by submitting and causing the submission of claims for transportation services that were not provided, not medically necessary, or improperly inflated. The alleged fraudulent billing included claims for “ghost rides,” claims for trips in which Medicaid recipients were not transported or not seen by medical providers and claims that improperly increased reimbursement by treating group transportation as multiple individual trips.
The superseding indictment further alleges that the defendants provided Medicaid recipients with cash, rent abatement, controlled substances, and other things of value to induce them to use Latham Taxi Inc. as their transportation provider. These payments were intended to generate additional Medicaid reimbursements and to sustain the fraudulent billing scheme.
As alleged, the defendants caused the submission of false and fraudulent claims through the New York State Department of Health, which processed Medicaid reimbursements through systems located in Rensselaer County and transmitted payments through interstate wire communications.
The alleged conduct resulted in the fraudulent receipt of at least $666,281.42 in Medicaid funds.
Zishan, Javed, and Shaikh are charged with conspiracy to commit wire fraud and health care fraud, which carries a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. The defendants are also charged with conspiracy to pay health care kickbacks, which carries a maximum sentence of five years in prison, a fine of up to $250,000, and a term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the U.S. Sentencing Guidelines and other statutory factors.
The defendants were arraigned yesterday in Albany, New York, before United States Magistrate Judge Paul J. Evangelista. Zishan was detained pending trial, Javed was detained pending a detention hearing scheduled for June 24, 2026, and Ghazali was released on conditions pending trial. The trial will be held before Senior United States District Judge Frederick J. Scullin
The charges in the superseding indictment are merely accusations. The defendants are presumed innocent unless and until proven guilty.
The Northern District of New York worked with the Department’s Health Care Fraud Unit of the Fraud Division, together with the FBI, HHS-OIG, and the New York State Comptroller’s Office, with additional assistance from the New York State Office of the Medicaid Inspector General.
Assistant United States Attorneys Benjamin S. Clark and Adam J. Katz are prosecuting the case.
Lakeside man sentenced to over 3 years in prison for stealing construction equipmentRead the Press Release
MISSOULA – A Lakeside man who stole over $180,000 worth of construction equipment from a Kalispell business and trucked it to Idaho was sentenced today to three years and five months in prison, followed by three years of supervised release, Acting U.S. Attorney Mark Steger Smith said.
Eric Brandon Wright, 43, pleaded guilty in January 2026 to one count of interstate transportation of stolen property.
U.S. District Judge Donald W. Molloy presided.
The government alleged in court documents that Wright stole $181,890 worth of construction equipment from RDO Rental Equipment in Kalispell.
Over the night of Aug. 23 and into the early morning of Aug. 24, 2023, Wright found his way into RDO and stole various pieces of digging and mulching equipment, along with a Towmaster trailer. Wright then used the trailer, hooking it up to an employee’s vehicle, to haul the equipment from the business. The employee’s vehicle was found a few days later, but a motorized wheelchair that had been kept in it was missing.
Law enforcement received a tip on Jan. 19, 2024, that Wright was selling construction equipment on Facebook, which they tracked to a storage facility in Lewiston, Idaho. Detectives spoke with the facility’s owner, who confirmed Wright had been renting storage space there. On Jan. 30, 2024, officers arrested Wright on an unrelated outstanding warrant and questioned him about the RDO theft. Wright denied stealing the equipment, saying he bought it from someone in Missoula.
Using cell phone data and surveillance video, investigators linked Wright’s truck to RDO the night of the theft. Responding to a report of a separate theft, officers were called to the residence of Wright’s uncle in Dalton Gardens, Idaho, where they discovered the missing Towmaster trailer. They also noticed the uncle using an electric wheelchair similar to the one stolen from the employee’s vehicle.
The U.S. Attorney’s Office prosecuted the case. The Kalispell Police Department and FBI conducted the investigation.
Kansas man arrested for abusive sexual contact on a Delta flight from Kona, Hawaii to SeattleRead the Press Release
Seattle – A 31-year-old Kansas man was arrested upon arrival at SEA airport this morning on a flight from Kona, Hawaii, after allegedly sexually assaulting the woman in the seat next to him, announced First Assistant U.S. Attorney Charles Neil Floyd. Dominic Cortez Nichols was detained until a release plan can be put in place with a chaperone to escort him home to Kansas.
According to the criminal complaint, as the Delta Airlines flight boarded in Kona, the 27-year-old victim found Nichols sitting in her assigned window seat. Rather than get up and allow the victim to move into the seat, Nichols moved into the middle seat and forced the victim to climb over him to claim her seat.
With less than two hours to go in the overnight flight, the victim was attempting to sleep with her hands placed between her thighs when Nichols reached his hand between her hands and reached down to touch her inner thigh and groin area. The victim immediately hit the flight attendant call button and was moved to a different seat.
Abusive sexual contact aboard an aircraft is punishable by up to two years in prison and a $250,000 fine.
The charge contained in the criminal complaint is only an allegation. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
In the last few years, the Western District of Washington U.S. Attorney’s Office has charged 13 defendants with abusive sexual contact on aircraft.
The case is being investigated by the FBI and the Port of Seattle Police Department.
The case is being prosecuted by Assistant United States Attorney Amanda McDowell.
Kanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Mark Lewis Cobb, 39, of St. Albans, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on January 1, 2026, Cobb possessed a Polymer80 Inc. 9mm pistol in St. Albans.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Cobb knew he was prohibited from possession a firearm because of his prior felony conviction for conspiracy to distribute methamphetamine in United States District Court for the Southern District of West Virginia on February 8. 2017. Cobb was on supervised release for that conviction at the time of his current offense.
Cobb is scheduled to be sentenced on October 7, 2026, and faces a maximum penalty of 15 years in prison, up to three years of supervised release, and a fine of up to $250,000.
United States Attorney Moore Capito made the announcement and commended the investigative work of the St. Albans Police Department.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney D. Keith Randolph is prosecuting the case.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:26-cr-70.
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Justice Department Seizes Backend Infrastructure Used by the Huione Group for Money Laundering ServicesRead the Press Release
Today, the Justice Department announced the seizure of a cloud computing account used by subsidiaries of the Huione Group, a Cambodia-based corporate conglomerate. These subsidiaries are alleged to have assisted individuals and organizations in transferring proceeds of cryptocurrency investment frauds, cyber scams, and other criminal activities on cryptocurrency blockchains and allowing for the conversion of the proceeds of these schemes to the legitimate banking sector undetected.The seized account hosted backend infrastructure for the subsidiaries.
“Today’s seizure strikes a blow against one of the world’s most prolific criminal marketplaces,” said Assistant Attorney General A. Tysen Duva of the Justice Department’s Criminal Division. “The Huione Group used this cloud computing account as part of a technological backbone that allowed billions in fraud proceeds to be transferred, moved, and concealed — much of it stolen through Southeast Asian scam centers. Seizures of these marketplaces is critical in the fight against fraud that affects so many Americans, and to stop avenues for criminal proceeds to be laundered.”
“Today’s seizure demonstrates that law enforcement will use all tools at its disposal to protect Americans from criminals seeking to exploit them,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “We will not allow individuals or companies to exploit our country’s technology to defraud hardworking Americans.”
“The FBI continually leverages its global reach to combat criminals targeting the American people,” said Assistant Director Heith Janke of the FBI’s Criminal Division. “This seizure demonstrates our commitment to disrupting every component of the illegal ecosystem and working with our partners to prevent further victimization from scams.”
“The FBI is committed to disrupting the infrastructure and services that cybercriminals rely on to profit from their illegal activity,” said Assistant Director Brett Leatherman of the FBI’s Cyber Division. “Today’s action targets a key enabler of cyber-enabled fraud and money laundering schemes, demonstrating that the FBI will pursue not only the perpetrators, but also the services that support their criminal operations.”
According to court documents, the seized account was used to help operate Huione Guarantee, also known as Haowang Guarantee. Huione Guarantee is alleged to have operated Telegram channels that contained discussions regarding illicit products and/or services, ranging from the sale of stolen credit card and identity information, the fruits of malware-enabled thefts, the procurement of individuals for human trafficking schemes, as well as assistance with laundering the proceeds of romance and investment scams. Huione Guarantee also provided escrow services for criminals transacting on its platforms to facilitate transactions, including money launderers laundering cryptocurrency. In doing so, Huione Guarantee facilitated the movement of considerable funds stolen by Southeast Asian scam centers.
Law enforcement has continuously traced cyber-enabled fraud proceeds to cryptocurrency addresses attributed to the Huione Group, including Huione Guarantee, where the funds were then further laundered. Reports of cyber-enabled fraud involving cryptocurrency continue to increase, with complainants reporting over $7.2 billion in losses to the FBI’s Internet Crime Complaint Center (IC3) in 2025 due to cryptocurrency investment fraud alone.
Last October, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a final rule severing Huione Group from the U.S. financial system. In this rule, FinCEN found the Huione Group to be a primary money laundering concern pursuant to section 311 of the USA Patriot Act, citing its significant role in laundering proceeds of cryptocurrency investment fraud, cyber heists conducted by the Democratic People’s Republic of Korea, and proceeds of other cyber scams. Today, FinCEN issued a notice of proposed rulemaking (NPRM) to amend this rule’s definition of the Huione Group to include H-Pay Service PLC, among other changes. In its NPRM, FinCEN has assessed H-Pay Service PLC is a component of the Huione Group and of primary money laundering concern.
The FBI’s San Francisco Field Office and IRS Criminal Investigation are investigating the case.
Trial Attorney Ethan Cantor of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Sailaja Paidipaty for the Northern District of California are prosecuting the case. Former CCIPS Trial Attorney Stefanie Schwartz and Assistant U.S. Attorney Daniel Pastor, formerly in the Northern District of California, provided valuable assistance.
The Department of Justice also thanks the intelligence teams at Chainalysis and Elliptic, and Google’s CyberCrime Investigation Team for voluntarily providing valuable information for this investigation.
CCIPS investigates and prosecutes cybercrime and intellectual property (IP) crime in coordination with domestic and international law enforcement agencies, often with assistance from the private sector. Since 2020, CCIPS has secured the conviction of over 180 cyber and IP criminals, and court orders for the return of over $350 million in victim funds.
If you have been victimized by a cyber-enabled fraud scheme, please report the crime to the IC3 at www.ic3.gov. Law enforcement uses these complaints to investigate crimes, trace stolen funds for investigations and law enforcement action, and build cases against those responsible for the offenses.
This action is part of Operation Riptide, an ongoing FBI campaign targeting the criminal actors, infrastructure, and financial networks behind cybercrime, cyber-enabled crime, and fraud against the American people. Last year, Americans reported over $20 billion in losses to cybercrime, a 26 percent single-year increase. Operation Riptide is the FBI’s sustained enforcement response to that threat.
Justice Department Files Complaint Challenging New York Mask Ban and Identification Requirements for Federal OfficersRead the Press Release
WASHINGTON—Yesterday, the Department of Justice filed a lawsuit against the State of New York, Governor of New York Kathy Hochul, New York Attorney General Letitia James, and Assistant Attorney General in Charge, Buffalo Regional Office, challenging their unconstitutional attempt to regulate federal law enforcement officers by criminally prohibiting federal officers from wearing masks, requiring individual identifiers, and banning cooperative 287(g) agreements with numerous local law enforcement agencies dedicated to helping enforce this nation’s laws.
Not only is the law an illegal attempt to regulate the federal government, but, as alleged in the complaint, the law threatens the safety of federal officers who have faced an unprecedented wave of harassment, doxing, and even violence. Threatening officers with prosecution for simply protecting their identities and their families also chills the enforcement of federal law and compromises sensitive law enforcement operations.
"Law enforcement officers risk their lives every day to keep Americans safe, and they do not deserve to be doxed or harassed simply for carrying out their duties," said Acting Attorney General Todd Blanche. "New York’s anti-law enforcement policies regulate the federal government and are designed to create risk for our agents. These laws cannot stand."
"Governor Hochul cannot tell Federal officers how to do their job,” said Associate Attorney General Stanley Woodward. "And she certainly cannot prohibit them from ensuring their own safety in conducting Federal law enforcement operations. Our suit today stops New York’s unconstitutional efforts."
"The Department of Justice will steadfastly protect the privacy and safety of law enforcement from unconstitutional state laws like New York’s," said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division.
Acting Attorney General Blanche has instructed the Department’s Civil Division to identify state and local laws, policies, and practices that facilitate violations of federal laws or impede lawful federal operations. Today’s lawsuit is the latest in a series of lawsuits brought by the Civil Division targeting illegal policies designed to thwart federal law enforcement across the country, including in Virginia, New Jersey, and California.
Jury finds Arizona man guilty of leading bulk cocaine, money laundering conspiracies tied to CincinnatiRead the Press Release
CINCINNATI – A federal jury found an Arizona man guilty on all counts for his role in leading narcotics and money laundering conspiracies. The government has seized more than 162 kilograms of cocaine, three kilograms of fentanyl and $1.4 million of bulk cash in total.
Cesar Cervantes, 52, of Tucson, Arizona, was convicted of participating in drug trafficking and money laundering conspiracies and of distributing five kilograms or more of cocaine. He faces at least 10 years and up to life in prison.
The verdict was announced following a trial that began on June 9 before U.S. District Judge Matthew W. McFarland.
According to court documents and trial testimony, for several years, Cervantes supplied between 25 and 50 kilograms of cocaine bi-weekly to coconspirators. Cervantes used a network of couriers to deliver the drugs that originated from Mexico to multiple locations, including to designated couriers in Cincinnati. The drug trafficking conspiracy operated from at least July 2018 until August 2023.
Cervantes used Colombian and Chinese money launderers to funnel the drug proceeds back to Mexico. For example, in July and August 2023, Cesar had other coconspirators deliver approximately $300,000 in drug proceeds to two separate money launderers, one who worked for a sophisticated China-based money laundering organization, and the other who worked for a separate sophisticated Colombia-based money laundering organization.
Dominick S. Gerace II, United States Attorney for the Southern District of Ohio, and Joseph O. Dixon, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit, announced the verdict. Assistant United States Attorneys David P. Dornette and Frederic C. Shadley are representing the United States in this case.
These cases are part of the Homeland Security Task Force (HSTF) initiative established by Executive Order 14159, Protecting the American People Against Invasion. The HSTF is a whole-of-government partnership dedicated to eliminating criminal cartels, foreign gangs, transnational criminal organizations, and human smuggling and trafficking rings operating in the United States and abroad. Through historic interagency collaboration, the HSTF directs the full might of 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 Cincinnati comprises agents and officers from federal, state, and local law enforcement agencies.
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Israeli Citizen Sentenced for Conspiring to Steal Trade SecretRead the Press Release
PHOENIX, Ariz. – Guy Galanti, 48, an Israeli citizen who resided in Scottsdale, Arizona, was sentenced yesterday to time served with three years of supervised release by United States District Judge G. Murray Snow. Galanti was previously charged for Conspiring to Steal a Trade Secret on September 10, 2025, and was arrested the following day. Galanti has been in custody since his arrest. He pleaded guilty to Conspiring to Steal a Trade Secret on May 26, 2026.
Galanti worked as a senior level manager for Green Technology Investments (GTI) in Scottsdale, Arizona. GTI is based in Arizona and is in the business of servicing semiconductor testing machines and selling remanufactured semiconductor testing machines with new functionalities designed by GTI.
Beginning sometime in early January 2025, and continuing to August 2025, Galanti conspired with another individual to steal GTI’s newly created Glass Detect Design, which would allow a semiconductor testing machine to locate microscopic defects on a semiconductor wafer made of glass instead of silicon material. Galanti’s co-conspirator sought to recreate GTI’s new design as he operated a Taiwanese company that directly competed with GTI.
Over the course of several months, Galanti secretly sent photos of GTI’s Glass Detect Design, information, and software, to his co-conspirator in an effort to recreate GTI’s proprietary system. To conceal their interactions, Galanti and his co-conspirator communicated over an encrypted messaging system, deleted emails and transaction data sent from Galanti’s work email, and created fictitious invoices to document the transfer and potential payment of funds to Galanti.
The FBI’s Phoenix Division conducted the investigation in this case. Assistant U.S. Attorneys Raymond K. Woo and Matthew Williams, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-25-1391-PHX-GMA
RELEASE NUMBER: 2026-103_Galanti# # #
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.Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Matthew Robert Hudson, 41, of Huntington, was sentenced today to five years in prison, to be followed by four years of supervised release, for distribution of 50 grams or more of a mixture of methamphetamine.
According to court documents and statements made in court, on September 23, 2025, a law enforcement officer conducted a traffic stop of a vehicle driven by Hudson in Huntington. Officers searched the vehicle and seized approximately 120 grams of methamphetamine found in the handbag of Hudson’s passenger. As part of his guilty plea, Hudson admitted that he possessed the seized methamphetamine, asked his passenger to hold the methamphetamine for him, and intended to sell the methamphetamine in exchange for money.
United States Attorney Moore Capito made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie Taylor prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:25-cr-195.
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Homeland Security Task Force Case: Illegal Alien from Canada Sentenced to 160 Months in Prison for Conspiracy to Smuggle 65 Handguns from U.S. into CanadaRead the Press Release
Defendant Illegally Entered U.S. in 2023 After Allegedly Helping to Steal Millions in Gold Bars from Toronto Airport
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Durante King-Mclean, 27, of Cambridge, Ontario, Canada, was sentenced to 160 months in prison by U.S. District Judge Jennifer P. Wilson for conspiring with others to illegally traffic in firearms.
King-Mclean pleaded guilty to conspiring with others to illegally traffic firearms on May 14, 2025. The charges stem from a Sept. 2, 2023, traffic stop by the Pennsylvania State Police in Franklin County of a rental vehicle operated by King-Mclean who was the only occupant of the vehicle. During the stop King-Mclean fled on foot and was apprehended after a brief foot chase. A subsequent search of the rental vehicle led to the recovery of 65 handguns in the vehicle’s trunk that were all individually concealed in socks. Of the 65 handguns that were recovered, two were fully automatic, 11 were stolen, and one had an obliterated serial number.
King-Mclean had been in communication with his co-conspirators from April of 2023 until his arrest on September 2, 2023, and had been staying at an Airbnb in Ft. Lauderdale, Florida, until he rented the vehicle at the end of August 2023 and headed north towards Canada with the illegally purchased handguns. Sometime after his arrest and incarceration on Sept. 2, 2023, King-Mclean was charged by Canadian authorities for his alleged participation in the April 17, 2023, heist of millions of dollars in gold bars and foreign currency from the Air Canada cargo terminal at Toronto’s Pearson International Airport. It was shortly after this heist that King-Mclean illegally entered the United States where he remained until his arrest on Sept. 2, 2023, as he was headed back to Canada with the 65 handguns.
“Firearms trafficking is a serious crime that puts guns in the hands of the criminals that terrorize our communities in the United States and Canada,” said Special Agent in Charge (SAC) Eric J. DeGree for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Philadelphia Field Division. “King-Mclean’s lengthy sentence reflects the seriousness of his crime and shows the heavy penalties perpetrators can expect. This case also demonstrates the strength of our cooperation with our local and international law enforcement partners to protect our communities from violent gun crime.”
“Trafficking dozens of illegal firearms across our border is a serious offense with far-reaching consequences. The conviction of Durante King-Mclean underscores the serious threat posed by firearms traffickers, whose actions fuel violence in communities both here and in Canada,” said Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HIS) Philadelphia Nathan Abel. “HSI is steadfast in its commitment to work with our federal, state, and international partners to dismantle cross-border criminal networks and ensure that individuals like King-Mclean are held fully accountable for their crimes.”
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 U.S. law enforcement towards identifying, investigating, and prosecuting the full spectrum of crimes committed by these organizations, which have long fueled violence and instability within our borders. In performing this work, the HSTF places special emphasis on investigating and prosecuting those engaged in child trafficking or other crimes involving children. The HSTF further utilizes all available tools to prosecute and remove the most violent criminal aliens from the United States.
The ATF Harrisburg Office, the Pennsylvania State Police, and HSI investigated the case. Assistant U.S. Attorney Carlo D. Marchioli and Special Assistant U.S. Attorney William A. Behe for the Middle District of Pennsylvania prosecuted the case.
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Health Care Fraud Takedown Results in 10 SoCal Defendants Federally Charged with Defrauding Public Health Plans, Other CrimesRead the Press Release
LOS ANGELES – As part of the national health care fraud takedown, federal law enforcement in the greater Los Angeles metropolitan area have arrested five defendants, including a Whittier woman who participated in a scheme that submitted nearly $270 million in fraudulent claims to Medi-Cal for expensive prescription drugs, and a San Fernando Valley man who is charged with running hospice care companies that fraudulently billed Medicare $27 million, the Justice Department announced today.
In total, federal prosecutors in the Central District of California have brought criminal charges against 10 defendants who’ve allegedly engaged in fraud against government-funded health programs or abused their positions as doctors to illegally prescribe controlled substances.
The charges announced today are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving more than $6.5 billion in false claims and significant patient harm, including death.
Today’s takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history.
In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme.
The takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of more than $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
“This year’s National Health Care Fraud Takedown represents the greatest whole-of-government effort to combat health care fraud in our Nation’s history,” said Acting Attorney General Todd Blanche. “Under the decisive leadership of President Donald Trump, Vice President JD Vance, the White House Task Force to Eliminate Fraud, and our law enforcement partners, this administration has ushered in a new era of enforcement that will safeguard taxpayer dollars.”
“Public health programs are intended to support the elderly, the ill, the needy, and other vulnerable members of our communities,” said First Assistant United States Attorney Bill Essayli. “It is not there to enrich fraudsters. Today’s announcement highlights our determination to hold anyone who defrauds our nation’s health system criminally accountable. We will find you. We will arrest you. And we will seek long prison sentences.”
“We are aggressively scaling our offensive against anyone using health care as a front to steal from the American people,” said Assistant Attorney General Colin M. McDonald of the Justice Department’s National Fraud Enforcement Division. “As today’s cases and arrests show, there is no case too big, no scheme too complex, and no hiding place too remote for our relentless fraud-fighting team. Our message is simple: if you put profit over patients, you should expect to be put in prison.”
“Health care fraud steals from taxpayers, exploits vulnerable patients, and puts lives at risk,” said U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. “Today’s historic enforcement action sends a clear message: if you use our health care system to enrich yourself at the expense of patients or the American people, we will find you, we will prosecute you, and we will hold you accountable. HHS will continue working with our law enforcement partners to protect patients, safeguard taxpayer dollars, and restore integrity to our health care system.”
“The coordination in the Health Care Fraud Takedown reinforces the Trump Administration’s efforts to end the crimes of bad actors who have ripped off U.S. taxpayers,” said Department of Homeland Security Secretary Markwayne Mullin. “This is a whole of government effort, to hold those who defraud our nation accountable. Our message is clear: If you steal from American taxpayers, you will face the consequences.”
“This results of this nationwide healthcare takedown are historic,” said FBI Director Kash Patel. “Under the leadership of President Trump, Vice President Vance, and the White House Task Force to Eliminate Fraud, this FBI worked alongside our DOJ partners to arrest and charge over 450 people, including almost 100 medical professionals, for over $6 billion in alleged healthcare fraud schemes - showing the enormous amount of work done by our interagency law enforcement team over the last month and beyond. While today’s announcement is one of the largest on record–every arrest is a continued message to criminal actors who rob American taxpayers that you will not get away with your crimes.”
“Taking advantage of grieving families at the moment they are mourning a loss and siphoning hundreds of millions of dollars from programs meant to provide real medical care, are harms that go far beyond fraud,” said Patrick Grandy, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “These actions inflict deep emotional pain and drain resources that taxpayers and vulnerable patients rely on. The FBI, along with our partners, remain committed to protecting families during their hardest moments and defending the integrity of our health care system from those who seek to exploit it.”
The following individuals have been charged in the Central District of California:
United States v. Mareik
Christina Mareik, 61, a.k.a. “Christina Marie Sanchez Hernandez,” of Whittier, was arrested on June 17 on a federal criminal complaint charging her with health care fraud. She made her initial appearance on June 17 in U.S. District Court in Los Angeles. She is free on $100,000 bond and her arraignment is scheduled for July 23.
Mareik allegedly participated in a scheme in which nearly $270 million in fraudulent claims were submitted over an 11-month span to Medi-Cal for expensive prescription drugs containing generic ingredients that were not medically necessary and, in many instances, not provided to the purported recipients.
She worked for Paul Richard Randall, 67, of Orange, a patient marketer for Monte VP LLC, a Montclair-based company that did business as Monte Vista Pharmacy.
Randall, along with Monte Vista Pharmacy’s owner, Kyrollos Mekail, 38, of Moreno Valley, and Patricia Anderson, 59, of West Hills, took advantage of Medi-Cal’s suspension of its requirement that health care providers obtain prior authorization before providing certain health care services or medications as a condition of reimbursement. The suspension of the prior authorization requirements was part of an ongoing transition of Medi-Cal’s prescription drug program to a new payment system.
According to an affidavit filed with the complaint, Mareik “played a key role in this sprawling fraud scheme by creating fraudulent prescriptions for Medi-Cal beneficiaries,” directing Anderson to sign the fraudulent prescriptions understanding that Anderson had not seen the patients or otherwise determined that the medications were medically necessary, and arranging for the fraudulent prescriptions to be submitted to Monte Vista to submit claims to Medi-Cal.
From May 2022 to April 2023, Mareik facilitated the signing of the bogus prescriptions that were billed to Medi-Cal for nearly $270 million and in turn for which Medi-Cal paid more than $178 million for 19 expensive, non-contracted drugs containing low-cost, generic ingredients that were not medically necessary or were not provided.
Mareik sent thousands of fraudulent prescriptions to Anderson and caused the submission of fraudulent prescriptions under her own name.
Numerous patients complained about receiving medications from Monte Vista for which they had no use and no knowledge as to why they were receiving the medications. Mareik handled the patient complaints so patients would not involve law enforcement and so that the fraud scheme could continue.
After an audit of Monte Vista by the California Department of Health Care Services, Mareik sent Mekail hundreds of fraudulent progress notes for Medi-Cal beneficiaries to help cover up the scheme. Mareik received hundreds of thousands of dollars in fraudulent Medi-Cal proceeds for facilitating the scheme.
If convicted, Mareik would face a statutory maximum sentence of 10 years in federal prison.
Randall pleaded guilty on April 7 to one count of wire fraud committed while on release and faces a statutory maximum sentence of 30 years in federal prison at his August 3 sentencing hearing.
Federal law enforcement has seized multiple luxury cards and rare baseball cards in connection with the scheme and are in forfeiture proceedings concerning homes Randall purchased with illicitly gained funds.
The FBI, HHS-OIG, and the California Department of Justice are investigating this matter.
Assistant United States Attorney Roger Hsieh of the Major Frauds Section and Trial Attorney Siobhan M. Namazi of the U.S. Department of Justice, Criminal Division, Fraud Section are prosecuting this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this case.
United States v. Shachar, et al.
Oren David Shachar, 59, of Van Nuys, and Abraham Shin, 66, of Corona, were arrested on June 18, made their initial appearances that day, and were arraigned in U.S. District Court in Los Angeles.
Both defendants, along with Jeannie Choi, 57, of Torrance, are charged in a 16-count indictment alleging that they conspired to defraud Medicare out of approximately $27 million. Choi was arrested Monday and is expected to make her initial appearance today in U.S. District Court in Los Angeles.
The charges in the indictment are conspiracy to commit health care fraud, health care fraud, aggravated identity theft, monetary transaction in criminally derived property over $10,000, and violations of the Anti-Kickback Statute.
Shachar and Shin are scheduled to go to trial on August 11. A federal magistrate judge ordered both defendants released on bond.
According to the indictment, from February 2021 to March 2026, Shachar, who conspired with marketers Choi and Shin in 2025, submitted false claims for hospice services that were medically unnecessary because the beneficiaries were not terminally ill or were not provided because the beneficiaries were already deceased. Shachar’s Medicare claims were also non-payable because Shachar paid illegal kickbacks to marketers to procure hospice beneficiaries and paid beneficiaries to remain enrolled in his hospices.
As part of this scheme, Shachar owned and operated at least four hospice care companies that he used to submit the fraudulent claims, including the Valley Glen-based Gentle Touch Hospice Care Inc., the Montclair-based Oxford Hospice Care Inc., the Encino-based Art of Hospice Inc., and the Glendale-based Holly Trinity Hospice.
In 2025, Shin and Choi sold living and deceased patients’ personal identifying information to Shachar to assist him in perpetuating this fraud.
If convicted of all charges, the defendants would face decades in federal prison.
The FBI and HHS-OIG are investigating this matter.
Trial Attorney Michael Bacharach of the U.S. Department of Justice, Criminal Division, Fraud Section is prosecuting this case.
United States v. Lopez
Brenda Lee Lopez, 63, of Norwalk, was arrested this morning. She is charged in a federal grand jury indictment with seven counts of health care fraud and six counts of aggravated identity theft in connection with a $9 million laboratory testing scheme to defraud Medicare.
Lopez is expected to make her initial appearance and be arraigned today in U.S. District Court in Los Angeles.
According to the indictment, Lopez, a medical office manager, prepared false orders for urinary tract infection tests, respiratory pathogen panels, and oral toxicology screens for Medicare beneficiaries using the names and forged signatures of four medical providers.
The beneficiaries did not provide specimens for the tests, and some were deceased at the time of testing. Lopez provided the orders to a laboratory, which billed Medicare for the fraudulent tests. At one point, Lopez attempted to pay one of the providers when the provider learned that his name was used without authorization to refer hundreds of tests to the laboratory.
In total, the laboratory billed Medicare approximately $9,087,013 and was paid approximately $2,117,994 for testing referred by Lopez based on the fraudulent orders.
In exchange for the referrals, the laboratory paid Lopez and her family members approximately $335,000, much of which Lopez spent at a casino and to pay others who assisted her in the scheme.
If convicted, Lopez would face a statutory maximum sentence of 10 years in federal prison for each health care fraud count and a mandatory two-year consecutive federal prison sentence for each count of aggravated identity theft.
The FBI and HHS-OIG are investigating this matter.
Trial Attorney Matthew R. Belz of the U.S. Department of Justice, Criminal Division, Fraud Section is prosecuting this case.
United States v. Galbraith
Lynn Galbraith, 59, of Anaheim, the owner of the Garden Grove-based Azure Hospice Care Inc., is charged in a single-count information with health care fraud.
From April 2021 to February 2024, Galbraith allegedly submitted approximately $2,266,694 in fraudulent claims to Medicare for hospice services. Medicare paid out approximately $2,140,606 on the fraudulent claims.
Galbraith is expected to make her initial appearance in the coming weeks in United States District Court in Santa Ana.
If convicted, she would face a statutory maximum sentence of 10 years in federal prison.
HHS-OIG is investigating this matter.
Assistant United States Attorney Rosalind Wang of the Orange County Office is prosecuting this case.
United States v. Khader, et al.
Three physicians – Wisam Khader, 36, of Irvine, Patrick Murphy, 40, of Irvine, and Justin Evans, 37, of Lakewood, Colorado – are charged in connection with a scheme in which they used their prescribing authority to prescribe controlled substances to one another outside the course of professional practice and without a legitimate medical purpose.
As alleged in the single-count indictment, the three defendants wrote almost 90 prescriptions to one another for drugs containing federally controlled substances, including amphetamine, oxycodone, buprenorphine, diazepam, morphine, and pregabalin.
They are charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances.
If convicted, the defendants would face a statutory maximum sentence of 40 years in federal prison.
The Drug Enforcement Administration is investigating this matter.
Assistant United States Attorney Rahul Hari of the Major Crimes Section is prosecuting this case.
United States v. Dorsey
Dr. Eugene Richard Dorsey, 83, of Orange, a psychiatrist at Western Orthopaedic Surgical Associates, a.k.a. “South County Orthopaedic Associates,” is charged via information with health care fraud in connection with a scheme to defraud the United States Department of Labor, Office of Workers’ Compensation programs
According to court documents, from December 2020 to December 2025, Dorsey falsified psychiatric reports so that claimants would fraudulently qualify for federal worker’s compensation, and submitted false claims for reimbursement of medical services, resulting in overpayments of approximately $1,831,462.
Dorsey is expected to make his initial appearance in U.S. District Court in Santa Ana in the coming weeks.
If convicted, Dorsey would face a statutory maximum sentence of 10 years in federal prison.
United States Postal Service Office of the Inspector General and the Fraud Division of the California Department of Insurance, Enforcement Branch are investigating this matter.
Assistant United States Attorney Rosalind Wang of the Orange County Office is prosecuting this case.
Criminal complaints, indictments, and informations contain allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (Fraud Division). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President JD Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Prior to the charges announced as part of today’s nationwide Takedown and since its inception in March 2007, the National Fraud Division’s Health Care Strike Force program, currently comprised of nine strike forces operating in federal districts across the country, has charged more than 6,200 defendants who collectively billed federal health care programs and private insurers more than $45 billion. In addition, CMS, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Headstone Salesman Who Defrauded Hundreds of Customers in Pennsylvania and New Jersey Pleads Guilty to Wire Fraud and Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney David Metcalf announced that Gregory J. Stefan Jr., 56, of Upper Merion, Pennsylvania, entered a plea of guilty today before United States District Judge Juan R. Sánchez to seven counts of wire fraud and four counts of filing a false tax return.
The defendant was charged by superseding indictment in December 2024, arising from fraudulent business practices he employed in the operation and management of headstone sales companies, and his failure to report on his individual income tax returns any income he received from those companies.
As detailed in court filings and statements, between January 2018 and September 2023, Stefan — through his businesses 1843 LLC and Colonial Memorials — defrauded hundreds of grieving customers by entering into contracts to provide custom headstone and engraving services for their deceased loved ones that he knew he would not deliver on the promised timeline, if at all.
Stefan demanded large up-front payments from his customers (often 100% of the purchase price) but routinely failed to fulfill their orders by the projected delivery date. When customers reached out to request updates on the status of their overdue orders, he either ignored them or employed lulling tactics and assured them that their orders would be delivered shortly without taking any steps to follow through on those assurances.
In all, Stefan failed to deliver, or provide refunds for, orders placed by almost 500 customers who had paid him in excess of $1.5 million. Stefan also falsely reported on his federal income tax returns that he earned no income whatsoever each year from 2018 through 2021.
As part of his federal plea agreement, Stefan accepted responsibility for similar crimes charged in 10 local cases across Pennsylvania, New Jersey, and Delaware, which resulted in an additional $210,000 loss to victims.
The defendant will be sentenced on a date to be determined and faces a maximum possible term of 152 years’ imprisonment.
This case was investigated by the FBI and IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Jessica Rice.
The U.S. Attorney’s Office thanks the Delaware County District Attorney’s Office, Northampton County District Attorney’s Office, Bergen County (N.J.) Prosecutor’s Office, Burlington County (N.J.) Prosecutor’s Office, Gloucester County (N.J.) Prosecutor’s Office, Middlesex County (N.J.) Prosecutor’s Office, Passaic County (N.J.) Prosecutor’s Office, and the Delaware Department of Justice for their assistance in investigating and reaching a global resolution of this case.
Houston Man Charged with Fraudulently Obtaining Controlled Substances as Part of National Health Care Fraud TakedownRead the Press Release
Today, United States Attorney Kurt L. Wall announced criminal charges against Kendrick Derrell Adams of Houston, Texas, for conspiracy to acquire and obtain possession of controlled substances by fraud and acquiring and obtaining possession of controlled substance by fraud in connection with a scheme to purchase controlled substances using a fraudulent prescription. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
“Healthcare Fraud is not only theft of taxpayer dollars, but it also directly contributes to the rising costs of health care for everyone,” stated U.S. Attorney Wall. “We will not sit by passively while these fraudsters line their pockets with stolen monies. They need to know that their day of reckoning is coming.”
The charges announced today by U.S. Attorney Wall are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Administration (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individual was charged in the Middle District of Louisiana: Kendrick Derrell Adams, age 39, of Houston, Texas.
As alleged in the indictment, Adams worked with others to obtain promethazine-codeine, a Schedule V controlled substance, using a fraudulent prescription. That prescription was submitted using a doctor’s stolen identity and in the name of a fake patient. The case is being prosecuted by Trial Attorney Zakeria Haidary and Acting Assistant Chief Sara Porter of the Gulf Coast Strike Force, and Assistant U.S. Attorney Jessica Thornhill of the Middle District of Louisiana.
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Middle District of Louisiana, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division, the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General, to investigate and prosecute the case filed during the Takedown.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gun Store Owner Pleads Guilty to Aiding and Abetting Straw Purchasing and Failing to Report Cash Payments over $10,000Read the Press Release
PHOENIX, Ariz. – Alejandro Montemayor, 33, of Chandler, Arizona pleaded guilty earlier this month to Aiding and Abetting a False Statement During the Purchase of a Firearm and Failure to File a Report Related to Currency. Sentencing is scheduled for Aug. 17, 2026, before United States District Judge Susan M. Brnovich.
Montemayor admitted that between Jan. 6, 2022 and May 29, 2024, he operated and ran AV AZ Firearms, a Federal Firearms Licensee in Phoenix. During that time, he facilitated the straw purchase of firearms and later transferred at least 72 of those firearms to other individuals.
One example of Montemayor’s criminal acts took place on May 22, 2024, when he allowed and encouraged an individual to commit the crime of False Statement During the Purchase of a Firearm by showing them how to fill out the forms required for purchasing a firearm. Montemayor directed the individual to attest he was the true purchaser of the firearm, even though Montemayor knew that was false. Montemayor then gave the firearm to a third individual.
Montemayor also failed to file reports with the Financial Crimes Enforcement Network for sales greater than $10,000. In total, Montemayor admitted that he failed to file 15 such reports between Feb. 23, 2024 and May 14, 2024, accounting for over $258,000 in proceeds.
A conviction for False Statement During the Purchase of a Firearm carries a maximum penalty of 5 years in prison, a fine of up to $250,000, or both. A conviction for Failure to File Forms 8300 Relating to Cash Received in Trade or Business carries a maximum penalty of 10 years in prison, a fine of up to $500,000, or both.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Ben Goldberg and Sheila Phillips, District of Arizona, are handling the prosecution.
CASE NUMBER: 26-CR-00501-PHX-SMB
RELEASE NUMBER: 2026-102_Montemayor# # #
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.Guatemalan National Charged with Illegally Reentering U.S.Read the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, today announced that EDVIN BARNICA ESQUIVEL, 34, a citizen of Guatemala, was arrested yesterday on a federal criminal complaint charging him with illegally reentering the United States after being deported.
As alleged in court documents and statements made in court, on February 25, 2012, U.S. Border Patrol (USBP) arrested Barnica in Falfurrias, Texas. On March 22, 2012, Barnica was removed to Guatemala. On November 19, 2017, Barnica, who was using the alias “Edvin Morales,” was arrested by the Hammonton, New Jersey, Police Department and charged with aggravated assault. He subsequently pleaded guilty to third degree aggravated assault and was sentenced to three years of incarceration. On April 4, 2019, Barnica was removed to Guatemala.
It is further alleged that, on February 23, 2025, Barnica was arrested by Danbury Police and charged with assault in the third degree and disorderly conduct. These charges were subsequently dismissed. On October 18, 2025, Barnica was arrested by Danbury Police and charged with attempted arson, breach of peace, and criminal mischief offenses. These charges are pending, and Barnica was released on a $20,000 bond and resided in Danbury at the time of his federal arrest.
Barnica appeared yesterday in Bridgeport federal court and was ordered detained.
If convicted of the charge of unlawful reentry, Barnica faces a maximum term of imprisonment of two years.
U.S. Attorney Sullivan stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
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.
Guatemalan National Charged with Illegally Reentering U.S.Read the Press Release
David X. Sullivan, United States Attorney for the District of Connecticut, today announced that SERGIO HIPOLITO REYES CORDERO, 52, a citizen of Guatemala, was arrested yesterday on a federal criminal complaint charging him with illegally reentering the United States after being deported.
As alleged in court documents and statements made in court, on October 22, 2011, U.S. Border Patrol (USBP) arrested Reyes in Freer, Texas. Reyes, who was using the alias “Jose Armando Mendoza Jimenez” and claimed to be a citizen of Mexico, was returned to Mexico that same day. On October 27, 2011, USBP arrested Reyes in Calexico, California. USBP transferred Reyes to the custody of U.S. Immigration and Customs Enforcement (ICE), which determined that Reyes was a citizen of Guatemala. Reyes was removed to Guatemala on November 16, 2011. On December 6, 2011, USBP arrested Reyes in Laredo, Texas. He was removed to Guatemala on December 28, 2011. On January 23, 2012, USBP again arrested Reyes in Laredo, Texas. Reyes was charged in the Southern District of Texas with illegally reentering the U.S., convicted of the offense, sentenced to 15 days of imprisonment, and removed to Guatemala on February 22, 2012.
It is further alleged that Reyes again illegally reentered the U.S. On August 18, 2025, Reyes was convicted in Connecticut Superior Court in Danbury of two counts of tampering with physical evidence and one count of moving a dead body without a permit. Reyes was sentenced to five years of incarceration, execution suspended after two years, and five years of probation, for the offenses. He was released from state prison yesterday.
Reyes appeared yesterday in Hartford federal court and was ordered detained.
If convicted of the charge of unlawful reentry, Reyes faces a maximum term of imprisonment of two years.
U.S. Attorney Sullivan stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by U.S. Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations. The case is being prosecuted by Assistant U.S. Attorney Alexis L. Beyerlein.
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.
Greece man sentenced for threatening FBI agent and familyRead the Press Release
ROCHESTER, N.Y.–U.S. Attorney Michael DiGiacomo announced today that Steven L. Ploof, 48, of Greece, NY, who was convicted of threatening to assault a member of the immediate family of a Federal law enforcement officer with intent to impede with such law enforcement officer while engaged in the performance of official duties, or with intent to retaliate against such law enforcement officer on account of the performance of official duties, was sentenced to serve 14 months in prison by U.S. District Judge Meredith A. Vacca.
On September 15, 2025, Ploof went to the Ogden, NY, residence of an FBI Special Agent and his family. When he arrived at the house, Ploof placed two posterboard signs on the front porch, one sign read “Corrupt FBI AGENT!” and the other sign read “I Want To (expletive) Your Kids!” Video of Ploof placing the two signs on the front porch was obtained from a residential security system.
The case was prosecuted by Assistant U.S. Attorney Everardo A. Rodriguez. The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Allen D. Davis II, the Greece Police Department, under the direction of Acting Chief Ryan Parina, the Ogden Police Department, under the direction of Chief Travis Gray, and the Orleans County Sherriff’s Office, under the direction of Sheriff Christopher Bourke.
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Grayson County man sentenced to life in federal prison for supplying fentanyl and then watching and recording the victim’s overdose deathRead the Press Release
SHERMAN, Texas – A Denison man who supplied fentanyl that resulted in an individual’s death, has been sentenced to life in federal prison, announced Eastern District of Texas U.S. Attorney Jay R. Combs.
Andrew Michael Smith, 36, was found guilty at trial of possession with intent to distribute and dispense fentanyl resulting in death and was sentenced to life in federal prison by U.S. District Judge Amos L. Mazzant on June 22, 2026.
According to information presented in court, on September 5, 2024, Smith provided a woman with fentanyl and methamphetamine. Smith watched and recorded the victim for several hours as she began to show severe signs of an overdose, including difficulty breathing, severe mental confusion, vomiting, and tremors. After the victim had taken her last breath, Smith finally, but untimely, called emergency responders. After law enforcement arrived, they began to perform lifesaving measures, but those efforts proved futile. The evidence during trial showed that Smith talked to numerous individuals over the course of hours while the victim was dying and even continued to arrange additional deals to acquire drugs.
“Smith targeted this victim because he knew her addiction made her vulnerable,” said U.S. Attorney Jay R. Combs. “Smith deserves every day of this life sentence. Our office, and our law enforcement partners, will continue to aggressively seek justice for drug trafficking victims.”
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This case was investigated by the FBI and the Denison Police Department and prosecuted by Assistant U.S. Attorneys Eric Erlandson and Abe McGlothin, Jr.
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Gordonsville Physician Indicted on Health Care Fraud and Controlled Substance ChargesRead the Press Release
NASHVILLE – Angela Moss, 55, of Gordonsville, Tennessee, has been charged in a federal indictment with seven counts of health care fraud and twelve counts of unauthorized distribution of controlled substances in connection with a multi-year scheme involving the prescribing of controlled substances without a legitimate medical purpose in the usual course of professional practice, announced Braden H. Boucek, United States Attorney for the Middle District of Tennessee. The indictment was unsealed following Moss's arrest.
According to the indictment, Moss owned and operated Gordonsville Clinic and prescribed medically unnecessary controlled substances to patients for more than eight years. During that period, Moss issued prescriptions totaling more than 5.6 million pills and doses of controlled substances. The indictment alleges that many of those prescriptions were not issued for a legitimate medical purpose in the usual course of professional practice.
The indictment further alleges that Moss prescribed excessive and inappropriate quantities and combinations of controlled substances, resulting in medically unnecessary prescriptions being issued to patients and contributing to patient abuse, misuse, and addiction. Moss allegedly failed to adequately monitor her patients' use and abuse of prescribed controlled substances and continued to prescribe excessive and inappropriate amounts of those drugs even after receiving warnings regarding her prescribing practices, including warnings from the Tennessee Department of Health.
“Medical professionals occupy positions of extraordinary trust and responsibility,” said U.S. Attorney Braden H. Boucek. “When that trust is abused through the unlawful prescribing of controlled substances, patients can suffer serious harm, addiction can flourish, and taxpayer-funded health care programs can be defrauded. Our office will continue working with our law enforcement partners to investigate and prosecute those who contribute to prescription drug abuse and health care fraud.”
This case is part of the Department of Justice's National Health Care Fraud Takedown, a coordinated nationwide law enforcement effort targeting health care fraud schemes that exploit patients, contribute to prescription drug abuse, and defraud federal health care programs.
This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Tennessee Bureau of Investigation.
Assistant United States Attorney Chris Suedekum is prosecuting the case.
An indictment is merely an allegation. The defendant is presumed innocent unless and until proven guilty, beyond a reasonable doubt in a court of law.
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Gold Store Owner Charged with Selling Stolen Property Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – The owner of a gold store in Hickory, N.C., appeared in federal court today to face charges for allegedly selling stolen property, announced Russ Ferguson, U.S. Attorney for the Western District of North Carolina. A grand jury in Charlotte returned a criminal indictment last week, charging Marty Christopher McDaniel, 65, of Hickory, and Kenny Price, 44, of Conover, N.C., with conspiracy to transport stolen property.
According to allegations in the indictment, from 2020 to 2024, McDaniel and Price conspired with each other and others to sell and transport stolen retail products through The Gold King, a business owned by McDaniel. The indictment alleges that the defendants purchased retail products from boosters, knowing that the products were stolen. A “booster” is a person who steals goods and merchandise from retail stores and sells them to a “fence.” McDaniel and Price operated as fences, paying the boosters a fraction of the retail value for the stolen goods.
The indictment further alleges that the defendants resold the stolen items through McDaniel’s various e-commerce stores on eBay, Mercari, and Whatnot. Many of the retail products sold on the e-commerce storefronts included products stolen by the boosters from national retail stores, such as The Home Depot, Lowe’s, Target, Best Buy, and others. The defendants sold the stolen items at a discounted price to customers throughout the United States and several foreign countries, earning more than $580,000 from the sales.
McDaniel’s had his initial appearance today in federal court. McDaniel and Price are charged with one count of conspiracy to commit interstate transportation of stolen property which, if convicted, carries a maximum sentence 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.
The charges against the defendants are allegations, and they are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney Russ Ferguson credited the FBI and the Catawba County Sheriff’s Office for the investigation of the case.
Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Gang Member Sentenced to 15 Years in Federal Prison for Fentanyl DistributionRead the Press Release
NEW BERN, N.C. – A federal judge sentenced Maurice McKeithan (street name “Puff”), 25, to 15 years in federal prison. On December 16, 2025, McKeithan pleaded guilty to two counts of distribution of fentanyl.
The Wilmington Police Department and ATF made several controlled purchases of fentanyl and carfentanyl at various locations from McKeithan in Wilmington, North Carolina. A video from one of the controlled purchases shows that McKeithan had a firearm in his pocket.
“Let this prosecution serve as a clear warning: if you choose to traffic drugs, fuel violence, or profit from poisoning our communities, law enforcement and prosecutors will pursue you relentlessly. We will use every lawful tool available to identify, arrest, and hold accountable those who believe they can operate above the law. Drugs Kill: Prison Awaits, Do Right.” said U.S. Attorney Ellis Boyle.
McKeithan repeatedly broke society’s laws and trust with prior convictions for selling heroin (2012), conspiracy to commit robbery with a dangerous weapon (2015) and assault with a deadly weapon with the intent to kill as a habitual felon (2019). At the time he committed these most recent federal offenses, McKeithan was on probation for felony fleeing to elude law enforcement.
Per law enforcement McKeithan was a validated member of the United Blood Nation street gang.
“The outcome of this case demonstrates that those who threaten the safety of our communities with drugs and violence will be held accountable,” said Special Agent in Charge Alicia Jones. “The collaborative efforts among law enforcement partners, and the focus and objective of the Homeland Security Task Force, have been invaluable in helping to identify, apprehend and prosecute the violent groups and individuals that jeopardize our public safety.”
“This offender’s involvement in violent crime and drug trafficking posed a serious threat to our community. Thanks to the outstanding work of Wilmington Police Department officers, ATF agents, and federal prosecutors, he will now serve a significant prison sentence. This case highlights the strength of our local and federal partnerships and our shared commitment to holding violent offenders accountable. We will continue working aggressively with our law enforcement partners to protect our residents, enhance public safety, and ensure those who endanger our community are brought to justice,” said Chief Ryan Zuidema.
This prosecution is part of Operation Counterpunch which 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.
W. Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement after the sentencing before U.S. District Judge Louise W. Flanagan. The Wilmington Police Department and ATF investigated the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:25-cr-00070.
Fresno Man Sentenced to over 15 Years in Prison for Distributing Methamphetamine and Fentanyl Through the U.S. Mail and at Trolley Creek Park in FresnoRead the Press Release
FRESNO, Calif. — Isaac James Ocejo, 22, of Fresno, was sentenced Monday by U.S. District Judge Jennifer L. Thurston to 15 years and 10 months in prison for conspiracy to distribute methamphetamine and fentanyl, U.S. Attorney Eric Grant announced.
According to court documents, between July 2023 and October 2024, Ocejo mailed several packages containing methamphetamine and fentanyl, through the U.S. Mail from post offices in Fresno to addresses in other states. In total, Ocejo and others shipped more than 10 kilograms of methamphetamine and more than a kilogram of fentanyl through the mail.
Ocejo and others also distributed significant quantities of methamphetamine in Fresno. In August 2024, Ocejo sold 10 pounds of methamphetamine to an individual in Fresno. The following month, Ocejo and co‑defendant Isaac Estrada sold an additional 10 pounds to an individual at Trolley Creek Park in Fresno in broad daylight.
On Jan. 26, 2026, Ocejo pleaded guilty. Estrada pleaded guilty to conspiracy to distribute and distributing methamphetamine in August 2025 and was sentenced to 46 months in prison on Nov. 7, 2025.
The Sacramento County Sheriff’s Office and the U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorney Cody S. Chapple prosecuted the case.
Four Charged in New Hampshire as Part of National Health Care Fraud TakedownRead the Press Release
Four Charged in New Hampshire as Part of National Health Care Fraud Takedown
Today, United States Attorney Erin Creegan announced criminal charges against 4 defendants as part of the Department of Justice’s 2026 National Health Care Fraud Takedown. The charges stem from fraudulent claims submitted to Medicare for durable medical equipment, theft of a United States citizen’s identity to obtain Medicare and Medicaid benefits, and a pharmacist who diverted controlled substances while on the job.
“Protecting the integrity of our federal health care programs is an important priority,” said U.S. Attorney Creegan. “The defendants charged today are alleged to have exploited systems meant to care for some of our most vulnerable community members. This conduct not only threatens the financial health of Medicare and Medicaid, it puts real people at risk. Working alongside our partners across the country, we will continue to pursue those who profit through fraud, theft, and the illegal diversion of controlled substances. Today’s cases demonstrate that we will hold accountable those who seek to abuse our health care system.”
The charges announced today by U.S. Attorney Creegan are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a $1.2 billion telemedicine scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; seize over $182 million in cash, houses, luxury vehicles, jewelry, and other assets; and provide full spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by HHS-OIG under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Trust Fund from payments that CMS caught and suspended due to fraud before the funds were actually paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Agency (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individuals were charged in the District of New Hampshire:
- Fructoso de Jesus Gomez Agudelo, a/k/a Jesus Gomez, 76, of Nashua, New Hampshire, was charged by indictment with wire fraud, false statements, false statements in health care matters, and aggravated identity theft in connection with his stealing a U.S. citizen’s identity for over 20 years to apply for and obtain over $500,000 of Medicare, Medicaid, Social Security, housing, and SNAP benefits. The case is being prosecuted by Special Assistant U.S. Attorney Heather M. Anderson and Assistant U.S. Attorney Alexander S. Chen of the District of New Hampshire.
- Kakha Bendeliani, 48, of the country of Georgia, was charged by indictment with conspiracy to commit money laundering in connection with a nationwide health care fraud scheme in which nearly $3 billion in claims were submitted to Medicare for durable medical equipment (“DME”)—primarily urinary catheters—that was medically unnecessary and not provided as represented. As a result of those claims, Medicare and Medicare Supplemental Insurers paid at least approximately $12,589,770 to Bendeliani’s company Centennial Med Supply LLC (“Centennial”). As alleged in the indictment, Bendeliani, the nominee owner of Centennial, allowed his personal information to be used by co-conspirators to purchase Centennial, took control of or established bank accounts for Centennial with at least six different financial institutions, and laundered the proceeds of health care fraud by withdrawing cashier’s checks that hid the source of the funds from certain Centennial bank accounts, deposited them in other Centennial bank accounts, and soon after initiated wire transfers to transfer at least approximately $12,589,770 in health care fraud proceeds overseas. The case is being prosecuted by Trial Attorneys Thomas D. Campbell and John W. Howard of the New England Strike Force, and Assistant U.S. Attorney Matthew P. Vicinanzo of the District of New Hampshire.
Goga Danelia, 37, of the country of Georgia, was charged by complaint with conspiracy to commit money laundering in connection with a nationwide health care fraud scheme in which nearly $3 billion in claims were submitted to Medicare for durable medical equipment (“DME”)—primarily urinary catheters—that was medically unnecessary and not provided as represented. As a result of those claims, Medicare and Medicare Supplemental Insurers paid the fraudulent DME company Centennial Med Supply LLC (“Centennial”). As alleged in the complaint, Danelia assisted the nominee owner of Centennial in laundering proceeds of health care fraud by providing driving and English translation services for Centennial’s nominee owner while the nominee owner (1) opened accounts for Centennial at several different financial institutions; (2) withdrew health care fraud proceeds from the banks in the form of cashier’s checks; (3) deposited those checks at other Centennial bank accounts; and (4) wired those funds to overseas entities. At least approximately $13 million was wired abroad from the Centennial accounts. The case is being prosecuted by Trial Attorneys Thomas D. Campbell and John W. Howard of the New England Strike Force, and Assistant U.S. Attorney Matthew P. Vicinanzo of the District of New Hampshire.
- Rima Gerges-Maalouf, 60, of Massachusetts, was charged by information with diverting controlled prescription drugs while working as a pharmacist in New Hampshire. As set forth in the plea agreement, in August 2024, Gerges-Maalouf served as a per diem pharmacist at a pharmacy in northern New Hampshire. While on duty, Gerges-Maalouf removed capsuled medication powder and prescription pills that were meant for patients and kept them for her own use. Gerges-Maalouf ingested some of the controlled substances while at work at the pharmacy. In all, Ms. Gerges-Maalouf diverted approximately 147 pills or capsules containing prescription medications during August 2024. The case is being prosecuted by Assistant U.S. Attorney Matthew Vicinanzo of the District of New Hampshire.
“Today’s coordinated enforcement effort reflects our commitment to safeguarding the nation’s health care system,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “The conduct alleged in these cases undermines the integrity of programs that millions of Americans rely on, and HHS‑OIG—working closely with our law enforcement partners—will continue to protect taxpayer‑funded resources and ensure accountability for those who seek to exploit them.”
“Looting money from Medicare and other federally funded health care programs strains the system and cheats the taxpayers who fund it. It isn’t ‘creative accounting,’ it’s a federal crime,” said Ted E. Docks, Special Agent in Charge of the FBI’s Boston Division. “This is not the way to increase your take-home pay. The FBI is committed to fighting health care fraud, one case at a time, and working with our partners allows us to pool our resources, intelligence, and expertise against doctors and other medical professionals who have chosen to put their own financial health ahead of their patients’ well-being.”
The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The District of New Hampshire, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); the Federal Bureau of Investigation (FBI); the Drug Enforcement Administration (DEA), the U.S. Food and Drug Administration Office of Inspector General (FDA-OIG); the Social Security Administration Office of Inspector General (SSA-OIG); the Housing and Urban Development Office of Inspector General (HUD-OIG); the U.S. Department of Agriculture Office of Inspector General (USAD-OIG); and the U.S. Department of Veterans Affairs Office of Inspector General (VA-OIG).
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
Fort Dodge Man Sentenced to More Than 15 Years in Federal Prison for Meth ConspiracyRead the Press Release
Bryce Garrels, 32, from Fort Dodge, Iowa, was sentenced in federal court in Sioux City on June 22, 2026, to 183 months’ imprisonment for conspiracy to distribute methamphetamine and distribution of methamphetamine.
At the plea hearing on February 6, 2026, Garrels admitted that from July 2024 through August 2025, he and others were involved in a conspiracy that distributed more than 1 ½ pounds of meth in the Fort Dodge, Iowa area. Evidence further showed that on at least four occasions in July and August 2025, Garrels distributed or helped others distribute methamphetamine, ranging from one to four ounces.
Garrels was previously convicted of seven felony offenses in the State of Iowa, including Burglary 3rd Degree in 2011, 2015, and 2022, and Forgery in 2020, 2021 and 2022, as well as Possession of a Counterfeit Substance with Intent to Deliver in 2021.
United States District Court Judge Leonard T. Strand sentenced Garrels to 183 months’ imprisonment along with a five-year term of supervised release. There is no parole in the federal system. Garrels remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Iowa DCI Laboratory, Fort Dodge Police Department, Iowa State Patrol, Webster County Sheriff’s Office, Hamilton County Sheriff’s Office, and Wright County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 25-3043. Follow us on X @USAO_NDIA.
Former New Hampshire State Representative and Massachusetts Daycare Worker Sentenced to Decades in Prison for Child ExploitationRead the Press Release
BOSTON – A New Hampshire woman, formerly employed at a daycare in Tyngsborough, Mass., and her former intimate partner have been sentenced in federal court in Boston for child exploitation and child pornography charges.
Lindsay Groves, 41, of Hudson, N.H., was sentenced on June 2, 2026 by U.S. Senior District Court Judge F. Dennis Saylor IV to 262 months in prison, to be followed by five years of supervised release. Stacie Marie Laughton, 42, of Nashua, N.H., a former New Hampshire State Representative, was sentenced on June 18, 2026 by U.S. Senior District Court Judge F. Dennis Saylor IV to 400 months in prison, to be followed by five years of supervised release. In October and November of 2025, the defendants pleaded guilty to three counts of sexual exploitation of children. Groves also pleaded guilty to one count of distribution of child pornography.
Groves and Laughton were arrested and charged by criminal complaint in June 2023 and July 2023, respectively. They were both subsequently indicted by a federal grand jury in July 2023.
“Parents rely on daycare centers to provide safe, nurturing and heathy environments for their children. These defendants exploited parents’ trust in the most egregious way imaginable. All to satisfy their disgusting prurient interests. The victims in this case were toddlers – children who were not yet old enough to care for themselves and, in some cases, not even fully verbal. Everyone who learns about the conduct in this case should be outraged. The defendants stripped these children of their innocence – something that can never be undone,” said United States Attorney Leah B. Foley. “The sentences imposed reflect the depravity of the conduct and the seriousness of the crimes. My office will seek the most serious charges and the stiffest sentences for anyone who preys on children.”
“This is one of the most abhorrent and disturbing crimes ever investigated by this office. It represents a profound violation of trust and the safety of vulnerable children. Groves and Laughton exploited their positions and betrayed the trust of parents and the community,” said Jeff Grimming, Acting Special Agent in Charge of Homeland Security Investigations in New England. “There are few crimes more disturbing than the sexual assault of a child, and no person more disturbing than one who stands accused of preying upon the most innocent members of our communities. HSI New England will continue to prioritize public safety by working tenaciously to remove child sex predators from our New England neighborhoods.”
Groves worked at Creative Minds located in Tyngsborough, Mass. Between May 2022 and June 2023, Groves took nude images of children at the daycare and sent the photos to Laughton, with whom she was previously in an intimate relationship. Specifically, Groves used natural bathroom breaks for the children (routine diaper/pull-up changes prior to “naptime”) to take multiple photos of the prepubescent children in a private bathroom and then sent the photos to Laughton via text message at Laughton’s request.
Forensic review of Grove’s and Laughton’s cellphones revealed over 10,000 text messages between them during an approximate one-month period in 2023. These messages included discussion about, and transfer of, explicit photographs that Groves had taken of children while employed at Creative Minds – including at least four sexually explicit images of children who appear to be approximately three to five years old.
All minor victims involved in this matter have been identified and their families have been contacted by law enforcement.
U.S. Attorney Foley, HSI Acting SAC Grimming and Nashua (N.H.) Police Chief Kevin Rourke made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Hampshire; Middlesex County District Attorney’s Office; and the Hudson, N.H. Police Department. Assistant U.S. Attorneys Jessica L. Soto and Anne Paruti 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.
Foreign National Indicted in Multimillion Dollar Healthcare Fraud ConspiracyRead the Press Release
RALEIGH, N.C. – Today, United States Attorney Ellis Boyle announced criminal charges against James Thomas Foley, 45, an Irish citizen residing in Youngsville, North Carolina, in connection with a multimillion-dollar health care fraud conspiracy on Medicare and other health insurance programs involving unnecessary durable medical equipment (DME). The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
“We will focus on exposing and stopping any scheme to bill Medicare for fake services or products that beneficiaries don’t actually need especially when provided in exchange for illegal kickbacks,” said U.S. Attorney Ellis Boyle. “When fraudsters treat Medicare like a personal ATM, the American taxpayers foot the bill. Our partners will not tolerate this criminal activity. Cheaters. Never. Win.”
The charges against Foley emanate from a scheme to bill Medicare, the Civilian Health and Medical Program of the Department of Veterans Affairs (CHAMPVA), TRICARE, and other insurance programs for medically unnecessary DME. As alleged in the indictment, Foley and others partnered with purported marketing entities which solicited Medicare beneficiaries to accept DME, such as braces and pneumatic compression devices, by illegally waiving copays and deductibles, and pressuring beneficiaries to accept the equipment without verifying that the equipment was medically necessary. The marketing entities sold the beneficiary information and the prefilled orders to Foley and other DME supply companies, who developed and implemented a “doctor chase” model to pressure physicians into signing or altering orders so that they could be billed in full. The DME supply companies owned by or affiliated with Foley allegedly received over $14 million in reimbursements from Medicare alone. Another defendant, Randal Fenton Wood, pleaded guilty in connection with the same conspiracy last year in EDNC. Court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on Pacer by searching for Case No. 5:25-CR-128-FL.
“Safeguarding the integrity of federal health care programs is central to our mission, and the results of this year’s National Health Care Fraud Takedown reflect the strength of our collective commitment. The cases announced today demonstrate not only the scale, but the seriousness of the misconduct uncovered, ranging from patient harming schemes to multibillion dollar fraud operations,” said Department of Health and Human Services Inspector General T. March Bell. “HHS-OIG will continue to pursue those who engage in such conduct and hold them accountable. I am grateful for the tireless work of our special agents and for the partnership we share with our federal, state, and local law enforcement colleagues as we work together to protect patients and preserve public funds.”
“Safeguarding TRICARE is essential to ensuring that resources remain available for our service members, retirees, and their families,” said Acting Special Agent in Charge Allison Russo of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office. “This indictment demonstrates DCIS’s commitment, together with our law‑enforcement partners, to identifying and addressing conduct that threatens the integrity of the Department of War’s health care programs.”
“Healthcare schemes steal taxpayer dollars and divert critical resources away from the veterans who depend on them,” said Inspector General Cheryl L. Mason, Department of Veterans Affairs Office of Inspector General (VA OIG). “The VA OIG will vigorously investigate anyone who seeks to defraud VA programs. We thank the U.S. Attorney’s Office and our law enforcement partners for their efforts in this investigation.”
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
Ellis Boyle, U.S. Attorney for the Eastern District of North Carolina, made the announcement. Department Health & Human Services Office of the Inspector General investigated the case with assistance from Department of Veterans Affairs Office of the Inspector General and Defense Criminal Investigative Services.
More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:26-CR-104-UA.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty.
First Assistant United States Attorney Sarcone Announces Ten Capital Region Actions: Five Arrests and Civil Settlements Involving Five PartiesRead the Press Release
ALBANY, NEW YORK – Today, First Assistant United States Attorney John A. Sarcone III announced criminal charges against five defendants and civil health care fraud and controlled substances settlements with five defendants. The charges filed in federal court are part of the Department of Justice’s 2026 National Health Care Fraud Takedown.
“Today’s announcement should put all fraudsters on notice,” said First Assistant U.S. Attorney John A. Sarcone III. “Those who enrich themselves through stealing from the hardworking American taxpayers will be relentlessly investigated, prosecuted, and held accountable to the highest standard under the law. Together our partner agencies with the full support of the federal government, will use every available tool to identify fraud, dismantle criminal schemes, and recover taxpayer dollars. Health care fraud is not a victimless crime, every fraudulent claim submitted, every false bill paid, and every scheme designed to exploit our system steals from the taxpayers and exploits the integrity of programs that millions depend upon.”
The charges announced today by First Assistant United States Attorney Sarcone are part of a strategically coordinated, nationwide law enforcement action that resulted in charges against 455 defendants, including 90 doctors and other licensed medical professionals, for their alleged participation in health care fraud and opioid abuse schemes involving over $6.5 billion in false claims and significant patient harm, including death. Today’s Takedown represents a new era in federal, state, and international cooperation to combat health care fraud: cases in 56 federal districts and 45 U.S. states and territories, with 50 state Medicaid Fraud Control Units participating, the most in Department history. In addition, unprecedented international cooperation over the two-week Takedown resulted in the apprehension and return to the United States of the following health care fraudsters: one defendant in Kyrenia in connection with an over $3.7 billion scheme; two defendants in Estonia in connection with a previously charged $10.6 billion scheme; and, in the Philippines, one of FBI’s Most Wanted Fraudsters in connection with a previously-charged $1.2 billion telemedicine fraud scheme. The Takedown involves the cutting-edge use of data analytics to target the worst actors; the seizure of over $182 million in cash, luxury vehicles, jewelry, and other assets; and full-spectrum accountability for all criminal actors from doctor’s offices to corporate boardrooms.
Today’s coordinated enforcement action involves a whole-of-government approach, including:
- Actions by the Centers for Medicare and Medicaid Services (CMS) to suspend 1,079 providers and revoke billing privileges for 1,403 providers.
- 48 Civil Monetary Payment settlements amounting to over $73 million, over 1,400 provider exclusions, and 25 actions by the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”) under the Civil Monetary Penalties Law seeking more than $10 billion in payments to the Medicare Trust Fund from payments that CMS caught and suspended before the funds were paid to the fraudulent providers.
- Civil charges against 13 defendants for $14.8 million in health care fraud schemes, as well as civil settlements with 31 defendants totaling $23 million.
- 928 administrative cases by the Drug Enforcement Agency (DEA) seeking the revocation of authority to handle and/or prescribe controlled substances since October 1, 2025.
The following individuals were charged in the Northern District of New York:
- Joseph Carl, 55, of Clifton Park, New York, and Randolph Ekstrom, a/k/a “Randy,” 48, of Canajoharie, New York, were charged by superseding indictment with one count of conspiracy to commit wire fraud and health care fraud and one count of conspiracy to pay healthcare kickbacks. As alleged in the superseding indictment, Carl and Ekstrom managed Carl’s Cab, a DBA entity owned by Carl, that was enrolled as a Medicaid transportation provider in New York State from at least January 1, 2020 through March 31, 2025. The defendants are charged with paying Medicaid recipients cash and other things of value in exchange for using Carl’s Cab to transport them to medical appointments, including methadone treatment facilities. The superseding indictment alleges the defendants fraudulently obtained $4,296,374.02 in Medicaid reimbursements paid to Carl’s Cab over the time-period of January 1, 2020 through March 31, 2025.
- Muhammad Zishan, a/k/a “Sean,” a/k/a “Shaun,” a/k/a “Shawn,” 47, of Glens Falls, New York, Madiha Javed, a/k/a “Maddie,” 34, of Glens Falls, New York, and Ghazali Shaikh, 21, of Latham, New York, were charged by superseding indictment with one count of conspiracy to commit wire fraud and health care fraud and Zishan and Javed were charged with one count of conspiracy to pay health care kickbacks. As alleged in the superseding indictment, Zishan, Javed, and Shaikh managed Latham Taxi Inc., which was enrolled as a Medicaid transportation provider in New York State from at least January 1, 2020 through February 28, 2025. The superseding indictment alleges Zishan and Javed conspired to pay Medicaid recipients cash, controlled substances, and other things of value in exchange for using Latham Taxi Inc. to transport them to medical appointments, including methadone treatment facilities. In addition, all three defendants are charged with conspiring to falsify trip data to fraudulently obtain Medicaid reimbursement by overbilling for services provided and billing for services that were not provided at all. The superseding indictment alleges the defendants fraudulently obtained $666,281.42 in Medicaid reimbursements paid to Latham Taxi Inc. over the time-period of January 1, 2020 through February 28, 2025. According to statements made by prosecutors at Shaikh’s arraignment on June 22, 2026, federal agents seized over $30,000 in cash and precious metals they contend are proceeds of the offenses during the execution of a search warrant at Shaikh’s residence.
The following parties entered civil settlement agreements in the Northern District of New York:
- Douglas C. Cline, M.D. P.C., doing business as Chronic Pain Management, formerly located in Queensbury, New York, its owner Douglas C. Cline, M.D., 67, of Saratoga Springs, New York, and nurse practitioner Laurie McKenna, 64, of Bolton Landing, New York, reached a civil settlement to pay $500,000 to resolve allegations that they prescribed high-dose opioids and other controlled substances to patients without adequate medical oversight, tied continued access to prescriptions to recurring cash payments, and that Dr. Cline fraudulently transferred assets to avoid payment of a potential judgment.
- Aptihealth Inc. and Aptihealth Medical, PLLC (collectively, “Aptihealth”), a telehealth behavioral health provider located in Clifton Park, New York, reached a civil settlement to pay $300,000 to the United States and the State of New York to resolve allegations that the company billed Medicare and Medicaid for services that were not rendered or not supported by adequate documentation, improperly billed administrative tasks as reimbursable medical services, provided gift cards to induce recipients to receive services, and failed to maintain an effective compliance program as required by New York law.
“I want to thank our partners for their continued efforts. We look forward to bringing more cases like this as we work together to protect the integrity of our healthcare system” said First Assistant U.S. Attorney Sarcone. “Although the New York State Attorney General’s Medicaid Fraud Control Unit (MFCU) was not involved in the cases announced today, they have a substantial responsibility ahead of them. New York’s Medicaid program now exceeds $100 billion, with more than half funded by federal taxpayers. Safeguarding those dollars requires an all of government approach and strong coordination across federal and state enforcement partners. I stand ready to work alongside them, bringing together both state and federal resources to protect the integrity of the program.”The cases are being prosecuted by the Health Care Fraud Unit’s National Rapid Response, Florida, Gulf Coast, Los Angeles, Midwest, New England, Northeast, Texas, and West Coast Strike Forces; U.S. Attorneys’ Offices for the Middle District of Alabama, District of Arizona, Central District of California, Southern District of California, District of Colorado, District of Connecticut, District of Delaware, Middle District of Florida, Northern District of Florida, Southern District of Florida, Northern District of Georgia, District of Hawaii, District of Idaho, Northern District of Illinois, Northern District of Iowa, Southern District of Iowa, Western District of Kentucky, Eastern District of Louisiana, Middle District of Louisiana, District of Massachusetts, Eastern District of Michigan, Southern District of Mississippi, District of Montana, District of Nebraska, District of New Hampshire, District of New Jersey, District of New Mexico, Eastern District of New York, Northern District of New York, Southern District of New York, Eastern District of North Carolina, Middle District of North Carolina, Western District of North Carolina, Northern District of Ohio, Northern District of Oklahoma, Western District of Oklahoma, District of Oregon, Eastern District of Pennsylvania, Middle District of Pennsylvania, Western District of Pennsylvania, District of Puerto Rico, District of Rhode Island, District of South Carolina, District of South Dakota, Middle District of Tennessee, Western District of Tennessee, Northern District of Texas, Southern District of Texas, Western District of Texas, District of Vermont, Eastern District of Virginia, Western District of Virginia, Northern District of West Virginia, Southern District of West Virginia, Eastern District of Wisconsin, and Western District of Wisconsin; and State Attorneys General’s Offices, through their MFCUs, in Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, Tennessee, Utah, Vermont, Virgin Islands, Washington, Wisconsin, and West Virginia. In addition, the MFCUs for Alabama, North Carolina, South Dakota, Texas, and Virigina participated in the investigation of federal cases announced today.
Descriptions of each case involved in today’s enforcement action are available on the Department’s website here.
The Northern District of New York, in particular, worked with the Department’s Health Care Fraud Unit of the Fraud Division and the following law enforcement agencies to investigate and prosecute the cases filed during the Takedown: the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG); FBI; the Defense Criminal Investigative Service; the Drug Enforcement Administration; the Office of the New York State Comptroller; and the New York State Office of the Medicaid Inspector General.
On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is laser-focused on investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.
An indictment, information, or complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.